Hemisphere Media Group Encouraged by Promesa
SAN JUAN – When announcing Hemisphere Media Group’s financial results for the second quarter ended June 30, CEO Alan Sokol said Friday that the company is “encouraged by the enactment into law of the Puerto Rico Oversight, Management and Economic Stability Act, or PROMESA. We are hopeful that this will serve as a positive catalyst towards long-term fiscal and economic stability in Puerto Rico.”
Hemisphere targets Spanish-language television and cable networks business in the U.S. and Latin America. Based in Miami, its networks include WAPA, Puerto Rico’s leading broadcast TV network; WAPA America, a cable network targeting Puerto Ricans and other Caribbean Hispanics living in the mainland U.S., featuring news and entertainment programming produced by WAPA.
Sokol explained in a release that the company “posted a healthy 7% increase in Net Revenues and 5% increase in Adjusted EBITDA, in line with our expectations. Our results clearly validate that our strategy to deliver compelling and differentiated content to the growing U.S. Hispanic and Latin American markets is working. We once again saw strong growth in retransmission and subscriber fees across all of our networks, as well as solid advertising revenue growth.
“Our networks all continue to see strong organic subscriber growth, which sharply differentiates us from the environment surrounding general market cable networks. We also continue to make strategic investments in key programming for our networks which we believe will build viewership and revenue. Based on our performance in the quarter and outlook for the second half of the year, we are reaffirming our full year Adjusted EBITDA guidance of low double digit growth, driven by strong growth in subscriber and retransmission fees and advertising revenue.
Net revenues were $35 million for the three months ended June 30, an increase of 7%, as compared to net revenues of $32.6 million for the comparable period in 2015. Net revenues were $66 million for the six months ended June 30, 2016, an increase of 6%, as compared to net revenues of $62.1 million for the comparable period in 2015.
Those increases, for both the three and six month periods, the company said, were due to higher retransmission and subscriber fees, “driven by growth in subscribers and rate increases, as well as growth in advertising revenues, primarily as a result of political advertising revenue. Excluding political advertising revenue, net revenues increased $1.7 million, or 5%, for the three months ended June 30, 2016, and increased $3.2 million, or 5%, for the six months ended June 30, 2016.”
A live broadcast of Hemisphere’s conference call is available online via the company’s investor relations website, http://ir.hemispheretv.com/. A replay of the conference call will be available beginning at approximately 1 p.m. ET Friday by dialing (855) 859-2056, or from outside the United States by dialing (404) 537-3406. The conference ID for the replay is 56385056.