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Hemisphere Media (HMTV) Reports Q3 Revenues Miss

November 5, 2019 8:49 AM EST
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Price: $7.15 --0%

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Hemisphere Media (NASDAQ: HMTV) reported Q3 EPS of $. Revenue for the quarter came in at $35.8 million versus the consensus estimate of $40.65 million.

President and Chief Executive Officer of Hemisphere, Alan Sokol, said "During the quarter, our networks in the U.S. and Puerto Rico maintained and expanded on their leadership positions, as we continue to provide unique and fresh content for our fast-growing target audiences. We also continue to diversify our businesses by monetizing our valuable content with new licensing revenue streams and building a powerful streaming service for the Spanish-speaking world.

While Puerto Rico's economy is stable, advertising spending was negatively impacted by the political unrest on the island during the summer that ultimately resulted in the resignation of the Governor. With a new Governor installed, calmness and confidence are returning to the market. We are beginning to see advertising return to normal spending levels, which will benefit WAPA, as the clear ratings leader in the market. We continue to believe that the future inflow of federal funds will further drive restoration and growth in Puerto Rico.

Our U.S. channels continue to perform very well. Pasiones continued its strong momentum, marking its eleventh consecutive quarter of year-over-year growth. WAPA America achieved its highest rated quarter ever. Centroamerica TV also posted another quarter of strong ratings growth, increasing total day ratings by an impressive 49% year-over-year.

Our strategic investments, Pantaya and Canal 1, continue to show strong growth. Pantaya ended the third quarter with approximately 500,000 subscribers, and has recently released two acclaimed hit series, which should drive robust growth in the fourth quarter and beyond. In Colombia, Canal 1 entered into an important strategic alliance with Discovery, creating a content and commercial partnership under which some of Discovery\'s most popular programs will air on Canal 1.

As of October 25, 2019, we reached an impasse in negotiations with DISH Network regarding the distribution of WAPA and WAPA America. As a result, both channels are currently not being broadcast to DISH customers. The Company has engaged in extended negotiations with DISH, but does not believe that DISH is properly valuing WAPA and WAPA America\'s extraordinary lineup of news, sports and entertainment programming.

Given the impact of the political unrest on the Puerto Rico advertising market in the third quarter and the uncertain length of the DISH blackout, we are revising our full-year 2019 guidance to low double-digit percentage increase in Adjusted EBITDA. However, our business fundamentals are strong, and we remain excited about the potential growth across our networks and strategic investments."

For earnings history and earnings-related data on Hemisphere Media (HMTV) click here.



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