Moody’s Upgrade May Lead to Univision IPO: ‘Everything Is Moving Their Way’

By Mark Joyella 

la-ny811-224643-jpg-20141230Moody’s has upgraded its rating outlook–to “positive” from “stable”–for Univision, which could lead to an IPO in 2015, reports the Los Angeles Times. “The media giant, which owns the fifth-largest TV network in the U.S., has long been considered a jewel on Wall Street because of the growing influence of Latinos in the U.S.:”

Univision generated $2.9 billion in revenue for the 12-month period that ended Sept. 30. Last summer, the company brought in $174 million in advertising revenue for its broadcasts of the World Cup of soccer. Revenue in 2015 is expected to be down slightly, but 2016 is expected to set a record for the company.

“They have now hit the inflection point in producing meaningful free cash flow,” said Salas of Moody’s.

Univision’s collection of carriage fees from pay-TV companies including industry leader Comcast Corp. have become a predictable source of revenue. Such fees now make up 30% of the company’s television revenue, Salas said.

“They are going to have some of their best margins in the industry — and they have an ideal demographic in their audience,” Salas said. “With the expected political revenue in 2016, everything is moving their way.”