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Edited Transcript of UVN.N^C07 earnings conference call or presentation 14-Aug-19 3:00pm GMT

Q2 2019 Univision Communications Inc Earnings Call

NEW YORK Sep 4, 2019 (Thomson StreetEvents) -- Edited Transcript of Univision Communications Inc earnings conference call or presentation Wednesday, August 14, 2019 at 3:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Jon Stranske

Univision Communications Inc. - Head of IR

* Peter H. Lori

Univision Communications Inc. - CFO

* Vincent L. Sadusky

Univision Communications Inc. - CEO & Director

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Conference Call Participants

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* Aaron Lee Watts

Deutsche Bank AG, Research Division - Research Analyst

* Avi Steiner

JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst

* Jason K. Kim

Goldman Sachs Group Inc., Research Division - Senior Analyst

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Presentation

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Operator [1]

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Good morning, and welcome to Univision's Second Quarter 2019 Earnings Call. I would now like to turn the call over to Jon Stranske, Head of Investor Relations. Go ahead, Mr. Stranske.

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Jon Stranske, Univision Communications Inc. - Head of IR [2]

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Thank you, and welcome, everyone. This morning, we issued an earnings press release, which along with our reporting package and a transcript of today's call will be on our IR website at investors.univision.net. Some of the information discussed today will contain forward-looking statements. These statements involve risks and uncertainties, including those highlighted in our press release, that may cause actual results to differ materially from these statements.

Univision is not obligated to update forward-looking information discussed on this call, except as may be required by law. Financial results of the English-language digital business have been classified as discontinued operations in our earnings press release and reporting package for all periods presented. The sale of the English-language digital business -- digital assets was completed in April 2019. Unless stated otherwise, the information we're providing in our call this morning relates to the company's continuing operations.

We will refer to adjusted OIBDA in our remarks today as adjusted EBITDA. The non-GAAP measures used on our call today include core revenue and core advertising revenue, adjusted core OIBDA, each as adjusted for political and advocacy advertising. The press release contains definitions and reconciliations of our non-GAAP measures to the most directly comparable respective GAAP measures. Unless stated otherwise, we are providing year-over-year comparisons, and for TV ratings, we are presented as adults 18 to 49 in prime time unless otherwise stated.

Speaking today are Vince Sadusky, CEO; and Pete Lori, CFO. I will now turn the call over to Vince.

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Vincent L. Sadusky, Univision Communications Inc. - CEO & Director [3]

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Thanks, Jon. Good morning, and thank you all for joining us today on Univision's Q2 Earnings Call. In less than a year since we restructured the company's operations to focus serving our core media consumers, advertisers and distribution partners with excellence in the coveted U.S. Hispanic market, we continue to make good progress. In May, the Univision Network finished as the most-watched Spanish-language network on television for the 27th consecutive broadcast season and our portfolio garnered 53% of all Spanish language viewing.

In addition during the second quarter, Univision outperformed at least 1 of the Big 4 broadcast networks, 1/3 of the nights and 5 out of every 7 nights amongst millennials. Although ad revenue was down for the quarter, we achieved strong results in the recently concluded upfront marketplace, which I believe is a result of the investments we have made in our programming, processes and people.

Our teams have been providing solid research to brands, highlighting the fact that Hispanics will drive growth in virtually every consumer category and that Univision reaches more U.S. Hispanics than any other network with the ability to create an immediate sales impact.

Our upfront was up mid-single digits, driven primarily by CPM increases across all day products and the addition of new national advertisers committing to Univision. Although this was the best upfront result in 4 years, a large gap between Univision's ratings delivery and share of TV ad dollars remains, making Univision a great value relative to other TV advertising outlets. We believe this gap will close over time as more brands recognize the power of the Hispanic consumer and the unique ability of Univision as the #1 Hispanic media outlet to effectively reach them.

By focusing on our core Spanish-language digital operations, we increased our video views by more than 30% during Q2 and digital ad commitments were up significantly in the upfront as brands recognized the high quality and growing digital video Univision creates. We experienced lower sub fee during the quarter due largely to sub losses Dish sustained during the blackout and other normal MVPD sub declines.

As we mentioned at our last earnings call, we are back in business with Dish and believe we have positively impacted their sub losses. And since concluding our negotiations with Dish, we have renewed agreement in the normal course of business with several significant distribution partners at increased rates. We believe given Univision's high viewership levels relative to the English-language broadcast networks, coupled with our industry-leading sports properties and service to our local communities through the largest group of network affiliated local stations, Univision warrants greater sub fees. In fact, over the last decade, Hispanics are one of the only consumer groups that have increased their pay-TV subscriptions.

The company continues to invest more in programming. One of these investments is the Gold Cup soccer tournament that aired live in June with the championship game airing the first week of July. The final averaged over 3 million viewers in adults 18 to 49 and reached almost 8 million total viewers, helping Univision become the top-rated network in prime among the millennials, English or Spanish, during the first week of July.

We garnered 74% of the country's soccer viewership in prime and aired roughly half of the top 100 matches. The Gold Cup final on Univision was the #1 men's soccer match of 2019, regardless of language, and it outperformed the 2018 men's World Cup final on Telemundo by 36%. And the UEFA Champions League on TUDN concluded the most-watched season ever in the U.S., regardless of language, underscoring Univision's dominance in soccer.

In addition to sports, our big music and lifestyle shows attract large and young-skewing audiences. When our refreshed youth music awards show, Premios Juventud, aired in July, Univision was #1 for the night, beating all the Big 4 Networks and grew approximately 40% over last year. It generated 70 million social video views and was the #1 most social program for the entire day across Facebook, Twitter and Instagram combined.

In the second quarter, we aired roughly half of the top 100 entertainment programs amongst Hispanics and the most of any network regardless of language. We believe, in addition to the compelling growth characteristics of our target market where we are the #1 player, advertisers invested in the upfront based upon what they saw. We are all very excited about our new programming lineup starting this fall that includes a fresh, more modern entertainment programming slate coming to both Univision and UniMás, along with leading soccer and news programming.

In a competitive media world, we like our position as diversified broadcast group providing the best network and local news, sports and entertainment programming across multiple networks and digital platforms.

Our second broadcast network, UniMás, has already experienced growth as a result of investments in original reality, news and sports programming. We have seen weeknight prime ratings increase more than 30% since the relaunch.

Finally, we believe that as the last major independent broadcast media company in the U.S., a market where scale and strength matter, Univision has the fundamentals for continued growth on its own or with a partner. As has been reported, given our success in transforming the company, the Board and management team have concluded the time is right to explore strategic options.

Over the past year, Univision has gained momentum as it has divested noncore assets; strengthened programming; secured long-term distribution deals and valuable sports rights; increased investments in news, sports, local and digital offerings, and materially strengthened its balance sheet. During this process, management remains focused on running our strong core business.

With that, I will hand the call over to Pete to go through the detailed financial results.

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Peter H. Lori, Univision Communications Inc. - CFO [4]

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Thank you for that introduction, Vince, and good morning, everyone. In the second quarter of 2019, revenue and core revenue both decreased by approximately 4% to $702 million and $695 million, respectively. Income from continuing operations was $92 million compared to $121 million for the same prior period. Adjusted EBITDA decreased 14% to $266 million and adjusted core EBITDA declined 13% to $260 million. Advertising revenue in the quarter declined approximately 3% to $405 million, while core ad revenue declined approximately 2% to $398 million.

Media Networks total advertising revenue declined by approximately 2% to $347 million, while core declined 1% to $342 million. Within Media Networks, our network business was down low single digit, local television was relatively flat and digital had shown double-digit growth. As Vince mentioned, we recently concluded the '19/'20 Upfront with healthy mid-single digit growth, which will have a positive impact on our longer cycle network business starting in the fourth quarter. In addition, our digital Upfront was extremely robust with growth well into the double digits.

Media Networks non-advertising revenue decreased $19 million to $293 million. Subscriber fee decreased mid-single-digits reflecting the pronounced subscriber declines experienced by the Dish due to the 9-month blackout with Univision. No carriage of Univision services on the Sling platform in 2019 and other normal subscriber declines, partially offset by significant increases in sub rates in the renewed contract terms compared to the prior terms with Dish. The rate increases for the distributor renewals we negotiated in the third quarter, that Vince mentioned, will take effect in early 2020.

Since the Dish blackout, all our renewals have been concluded, are, or well ahead of expiration. In the second quarter, outside of Dish, there were no other major renewals and the remainder of the Univision distributor base experienced subscriber declines roughly in line with the industry.

Radio revenue decreased roughly 5% to $62 million due to a decrease in advertising revenue reflecting lower local sales and political and advocacy when compared to 2018, which benefited from the midterm elections.

Direct operating expenses, excluding the PLA, increased approximately $26 million to $176 million. The increase was driven by $46 million of additional investments primarily in sports content related to Gold Cup and the new UEFA rights, partially offset by other cost decreases.

PLA fees for the second quarter decreased approximately $3 million due to a lower revenue base.

SG&A decreased approximately $6 million due to lower employee-related costs as a result of past restructuring activity.

Cash flows from operating activities for the year were $97 million compared to $301 million last year. The decrease reflects the timing of sports rights payment and other payment obligations and a higher working capital including accounts receivable due to the reactivation of the distributor agreement.

Investment activity this year included capital expenditures of $42 million compared to $33 million in 2018.

I would like to reiterate that deleveraging remains a top priority. In the first 6 months, we have reduced our net debt by approximately $69 million.

With that, I will hand the call back over to Jon for questions.

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Jon Stranske, Univision Communications Inc. - Head of IR [5]

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Thanks, Pete. Operator, we're ready to begin the Q&A portion of the conference call. First question, please.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question comes from Aaron Watts with Deutsche Bank.

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Aaron Lee Watts, Deutsche Bank AG, Research Division - Research Analyst [2]

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I wanted to start with a question on the sub fees. It sounds like you had a couple of renewals, I know it's normal course of business for you, but anything in particular in call out with those renewals? Why you were able to get them done early? How large were the deals that you've got done? And how does that clear the runway as we think about the rest of the year?

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Vincent L. Sadusky, Univision Communications Inc. - CEO & Director [3]

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Yes, I'll jump in Aaron. So the renewals we did were with significant distributors, some of the largest distributors in the U.S. I think our ability to get deals done is a couple of folds. One is, I think, as evidenced with Dish, we prove that you really don't have a service for Hispanics if you don't have Univision since we garner the majority of the rating points in the United States with the Hispanic community and we proved that out through our Dish battle. And I think the other perspective is, in addition to the value of our networks, and again, mentioned on our prepared comments, I believe, were a terrific value vis-a-vis our ratings relative to the Big 4 broadcast networks. We've also done things that are, I think, very pay-TV friendly. We've done things like we'll be launching this fall our new sports products TUDN Extra, which will only be available through authentication with pay-TV -- with your pay-TV subscription, as well as zonal football, our version of Red Zone in soccer. So I think it's a willingness to work with our distribution partners and a recognition from my perspective that Univision can continue to provide a growth in a marketplace that has been declining in total subs and is willing to work with distribution partners to help to drive value within the existing ecosystem.

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Aaron Lee Watts, Deutsche Bank AG, Research Division - Research Analyst [4]

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Okay. That's helpful, Vince. And maybe for Pete, as we think about our modeling, could you just remind me, how do we think about the benefit of these new deals, is it something more 4Q and beyond type benefit, or something maybe early as 3Q, we should think about?

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Peter H. Lori, Univision Communications Inc. - CFO [5]

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No. No. So the way to think about it, and I mentioned this in my opening remarks, is that the rate increases for these deals will really take effect in 2020. One of the deals was done well ahead of schedule and so the rate increase will take effect upon the expiry of the old deal and the other deal, but rate increases are -- will kick into effect again in 2020, so the benefit really begins next year.

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Aaron Lee Watts, Deutsche Bank AG, Research Division - Research Analyst [6]

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Okay. Great. And then if I could, on the advertising side, I guess, 1 quick housekeeping question. Are you able to clarify how much revenue came in from the Gold Cup during the quarter?

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Peter H. Lori, Univision Communications Inc. - CFO [7]

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Yes, so the Gold Cup like from an incremental revenue perspective relative to what we would normally achieve in the time slots that, that tournament aired was positive 2 or 3 points on our overall revenue for the quarter.

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Aaron Lee Watts, Deutsche Bank AG, Research Division - Research Analyst [8]

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Okay. Got it. And as usual, I'd like to ask you about what you are seeing in the business looking ahead for advertising? Would you be able to help us out with some pacing info on kind of the TV, radio and digital side?

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Peter H. Lori, Univision Communications Inc. - CFO [9]

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Yes. So pacing going into the quarter was a little light, but we've seen sequential improvement each week since the beginning of July. So right now, our overall pacing is down low single digits across our television and radio business, where -- but digital is up strong double digits. Remember to those that in our Media Networks business, the network business is still feeling the effect of last year's Upfront, so the positive results of this year's Upfront will really start to benefit us beginning in the fourth quarter. Also I guess we do expect some additional improvement in pacing given some of the Dish related disruption in the third quarter of 2018. We will see how that plays out over the remainder of the quarter.

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Aaron Lee Watts, Deutsche Bank AG, Research Division - Research Analyst [10]

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Okay. Got it. And network, it sounds like, is still going to be a little bit of a drag 1 more quarter. And on the local side, any kind of thoughts on how auto is playing out for you?

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Peter H. Lori, Univision Communications Inc. - CFO [11]

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Yes. So the auto business, I have it overall for our Media Networks sub, close to double digits for the quarter. So auto is doing well within our Media Network business.

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Aaron Lee Watts, Deutsche Bank AG, Research Division - Research Analyst [12]

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Okay. Great. And one last one for me. It's a little bigger picture for Vince. Prior to you joining and understandably since you've joined and worked to overhaul the business and kind of point it in the right direction for the future, the company had struggled to grow. And given your commentary on the Upfront and what you're seeing in the business overall, any guidance you can kind of give us or kind of goalpost around how to think about when Univision might turn the corner and reach an inflection point on returning to sustainable growth?

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Vincent L. Sadusky, Univision Communications Inc. - CEO & Director [13]

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Yes. It's a great question, Aaron. So we've been out there for several quarters now and I do think that the Network Upfront was a good indication of things to come that -- through the effort that we've made in investing in our people, in our research tools, and another commitment to the core community we serve. The opportunity we see in the U.S. Hispanic marketplace was the creation of Univision Brand Labs, essentially an internal division that has the ability to do everything from provide, research and help brands to understand where the opportunity might be as well as helping with creating for those brands that are looking for that as well. I think those efforts, coupled with, I believe, a greater recognition that growth going forward for a long, long time in the United States is going to come from the Hispanic population. And therefore, if you identify that, logically, I believe you have to invest, you have to utilize the expertise and the scale and the scope of the largest media company directed towards Hispanics in the United States to successfully reach this community. So I think the start of that really was the Upfront this year. I think there was terrific excitement coming out of the Upfront, our kind of no-nonsense business approach, really focus on the data and a good solid programming going forward, including a real emphasis on news, sports and localism, I believe, resonated. But I believe the opportunity is greater than anything I have ever -- I have seen in my years of media and the general market side given that there is still a massive gap between Univision's audience delivery and the percentage of ad dollars it garners and that exists both on a network scale on a national basis as well as on the local side. And that's really the reason for the kind of simplistic strategy of focusing on the core operations and doing everything in the business of media with excellence, with a great team and focusing on those things because we think the opportunity is just so great without having to overthink other areas of the business, which my form of business that the general market has to, just given the trends. So we've had an investment in programming. Programming investments kind of precede, I think, revenue success. And I do think that going forward, obviously, we're making these investments because we believe they're smart and they'll help us to achieve I think a greater share of the ad dollars as well as continuing to prove out our value to the pay-TV world. So I think as you get into kind of the quarters where the increases in sub fees take effect, you will see that. And in addition to the Upfront, our teams are doing their job and I think that will get reflected in positive results going forward in this scattered market as well as on the local television station side. So I think we've made really, really good progress and I think you will start to see those results very soon.

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Operator [14]

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Our next question comes from Avi Steiner with JP Morgan.

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Avi Steiner, JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst [15]

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I've got a few here. One, healthy mid-single digit growth on Upfront. Just want to clarify that that's network ad dollars and that's the right way to think about it, kind of, keeping all else equal in the fourth quarter?

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Peter H. Lori, Univision Communications Inc. - CFO [16]

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Yes. So our network -- our linear network business was up mid-single digits and I'd also want to point out that, in addition to that we had a very strong Upfront for our digital business. So both are -- both good digital achievement of more strong double digits.

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Avi Steiner, JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst [17]

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And then just following up on one of the prior questions asked, I missed the answer if you gave it and I apologize, but any significant distributor renewals left to accomplish this year?

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Peter H. Lori, Univision Communications Inc. - CFO [18]

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We have distributor renewals just as our ongoing normal part of our business and we've been handling them in normal fashion and have been very successful at that with the early approach process that Vince outlined. So...

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Avi Steiner, JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst [19]

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Perfect. And when you say that you're looking at kind of normal sub declines away from Dish, I just want to confirm that we're thinking low single digits? Or is it slightly better or worse than that at this point?

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Peter H. Lori, Univision Communications Inc. - CFO [20]

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We're really behaving as the ecosystem behaves, so that low single digits is a good number, Avi.

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Avi Steiner, JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst [21]

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Perfect. And then with renewals done effective next year, is the second quarter run rate the right way to think about kind of sub fee revenue moves for the balance of the year, adding in the CRA impact from last year? Does that makes sense?

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Peter H. Lori, Univision Communications Inc. - CFO [22]

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No. Not really, because we have -- in the back half of last year, we didn't think from a run rate perspective. And then in the back half of last year, obviously, we didn't have Dish. But I guess it kind of (inaudible) project forward sub fees using the second quarter as a proxy, that's a good way to look at it.

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Avi Steiner, JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst [23]

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Okay. And then Pete, I missed your -- I'm almost done here. I missed your comments on free cash flow towards the end. I just want to clarify you implied or said it was just a timing issue on AR with the distributor coming back in the second quarter. Is that right? Is there a magnitude to think about?

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Peter H. Lori, Univision Communications Inc. - CFO [24]

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No. No. Yes, I will give you the answer. Yes, it's several items, and one, as we mentioned this last quarter to the timing of sports rights payment and other payment obligations and then a little buildup of working capital relative to last year just because, obviously, we are now reactivated with the distributor and the timing of collections and so forth build up working capital a little bit. We do expect cash flow in the back half to be a little more normalized than in the -- than it was in the first half. So that should bode well for our ability to service that assuming all else holds equal.

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Avi Steiner, JP Morgan Chase & Co, Research Division - Executive Director and Senior Analyst [25]

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Perfect. Then I'll end it on here on this one. You talked in the past about how the radio and TV businesses complement each other. And I'm just curious if the mindset has changed at all around the need for -- or the benefits of the network, TV station group and radio station group all being together?

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Vincent L. Sadusky, Univision Communications Inc. - CEO & Director [26]

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Yes. I think where we sit today, as I look at the portfolio, the group of assets that Univision has, it's impressive. The ability to really reach Hispanics in the United States through multiple television networks, local television stations, through our digital properties, through radio and through digital streaming, I think it's an impressive array of assets. And again, I think, one of the things that we've been communicating to brands and I think they're more and more recognizing is, our ability to drive results. And you can really do that, I believe, best when you got this entire package and you can really surround consumers at home, in the car, away from home, on mobile. So yes. Others going forward may have a different view, but I believe that it's complementary and it fits well with the overall strength of the asset package.

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Operator [27]

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Our next question comes from Jason Kim with Goldman Sachs.

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Jason K. Kim, Goldman Sachs Group Inc., Research Division - Senior Analyst [28]

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Just couple from me. So earlier this year you talked about some of the drivers of direct OpEx increases for '19 as we look into third quarter and fourth quarter. Can you help us think about the cadence of the spending after the investments you have made in the first half of the year?

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Peter H. Lori, Univision Communications Inc. - CFO [29]

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Yes. So the guidance we gave at the beginning of the year, I think, was that our operating expense, excluding the PLA and stock-based compensation, would be up circa $55 million to $65 million. We're still tracking along those lines and you see it's a little lighter in the first half relative to that increase. In the back half, it's higher than the first half right now because of the investments that Vince continues to make in entertainment programming and also in marketing. So we really see that -- kind of that estimate we gave at the beginning of the year that will be in that zip code by the end of the year.

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Jason K. Kim, Goldman Sachs Group Inc., Research Division - Senior Analyst [30]

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Got it. And then we're still far away from this. But as we look into 2020 and beyond, how are you thinking about the incremental investments you have made to continue to bolster your content lineup? Do you feel that you are at an appropriate run rate level of spending? And the key is to just to -- just (inaudible) execution to monetize investments you have already made? Or do you see other opportunities to selectively invest more to make your content even more resonate better with the viewers?

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Peter H. Lori, Univision Communications Inc. - CFO [31]

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I'll let Vince comment more on that. But I think we're really at the place now where we have the right quantum of sports rights and Vince has made very significant investments in our entertainment programming, our news programming and in our local markets. So I think we're at the right place right in terms of that spending. But I don't know, Vince, if you have some additional thoughts on that going out beyond 2019.

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Vincent L. Sadusky, Univision Communications Inc. - CEO & Director [32]

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Yes. No, I think that's right. We've reallocated a lot of our spend as well. When I initially came in, we were involved in coproductions that were very expensive and yielded very few programming hours. We were invested in things like our English language, both digital and linear services. So it's been reallocation and some incremental spend. Most of the entertainment programming spend that we're doing now has been a reallocation. It's been sports rights by and large that have been driving up the incremental spend on those -- on the decisions to add incremental soccer, in particular, and participate in several of the major tournaments to ensure we have those rights. But I do feel comfortable with the spend going forward. I think we now have a great mix of programming going forward. It's always a business at television. So you never know about performance. But as far as the ability to be able to deliver quality entertainment programming, both from a sports, national news, local news, dramatic series from not only Televisa through the PLA, but also other acquired series and our own produced music specials, entertainment specials and reality programming, I feel like we've got the budget and we've got the spend going forward that will enable us to have a good -- robust, sustainable, all original programming slate into the future.

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Jason K. Kim, Goldman Sachs Group Inc., Research Division - Senior Analyst [33]

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Okay. Appreciate that. My last question is on the strategic review front. I can appreciate you don't want to comment anything specifically about the process, but I am wondering if you can comment on whether or not this process was driven by the Board receiving an inquiry first recently from some outside interest? Or was the company feeling that right now is just the right time to pursue this, and therefore, starting to review? And then, secondly, at the moment, you are coming out of a pretty heavy investment phase in the business that has had some impact on EBITDA, a lot of the larger media companies are preoccupied with their own big intern initiatives, whether it's big mergers or new business development. So my question is, how do you look at the pros and cons of this review in terms of timing, now versus perhaps waiting more?

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Vincent L. Sadusky, Univision Communications Inc. - CEO & Director [34]

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Yes. So I'll just say on the strategic process, it really was triggered by the progress we've made in transforming and refocusing Univision. And I think the recognition of the importance and the really terrific growth opportunity in Hispanic media, given the recognition, I think, most recently of the terrific growth that Hispanics are providing in the economy, they're essentially providing all of the growth, they're projected to provide outsized growth in every vertical, every purchasing category, drive home starts, family formation, et cetera, in a country where non-Hispanic population is largely aging, growing older and not growing much at all. It's pretty evident that this community is one that really, really is opportunistic. And I think it was a matter of really changing our strategic focus and getting our company in a position where we are attractive. As far as how it will play out, there is always speculation about the economy, the market. Trying to handicap where potential acquirers might be and their processes is a very difficult thing. So I think it's more the opportunity -- the recognition of where the marketplace is and our current strategic operational and financial strength.

And so I do think that the only other comment I would make is, there are only 2 networks in The United States and we are the clear leader with the breadth and scope of our assets in multiple networks, et cetera. So I do think wherever -- whatever state various media companies are in, Big media, there is not a lot of opportunity to scale up in a big way. And I believe for anybody who is really thoughtful about this marketplace, this is the best growth opportunity at scale in America when it comes to media. And I do think even if the timing may not be perfect for certain folks, you've got to give this thing a good hard look because this is the last opportunity for this asset to trade. I was with Telemundo 20-something years ago when we sold our company to NBC. It stayed with NBC and will likely be with NBC forever. Univision is independent and it will trade one time and if you don't execute on that opportunity, I believe the opportunity is lost forever.

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Jon Stranske, Univision Communications Inc. - Head of IR [35]

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All right. Thanks, Jason. I believe that's our last question for the day. And I appreciate everyone's questions, and thank everyone for joining us on the call. Just a reminder, the IR team is available for any additional follow-up questions. Thanks for joining us, and have a great day.

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Operator [36]

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This concludes the Univision's Second Quarter 2019 Earnings Call. You may now disconnect.