CONFERENCE CALL SCRIPT COMMUNICATIONS INC.

4Q16 Script February 16, 2017 11:00 a.m. ET

PRE-RECORD OPENING SCRIPT

Operator: Good morning and welcome to Univision’s fourth quarter 2016 earnings call.

I would now like to turn the call over to Rainey Mancini, Senior Vice President of Finance and Head of Investor Relations. Go ahead, Ms. Mancini.

Rainey Mancini: Thanks and good morning, everyone.

This morning we issued a press release detailing our fourth quarter and full year 2016 results. Before we begin, there are several items I need to cover. First, some of the information discussed today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements, including those relating to Univision’s potential future performance, success, and growth involve risks and uncertainties. Actual results may differ materially from these statements due to these risks and uncertainties. We have highlighted the material risks and uncertainties that could impact Univision’s future success and growth in the forward-looking statements portion of our Earnings Release.

Univision is under no obligation to update forward-looking information discussed on this call. Second, we will refer to adjusted OIBDA in our prepared remarks as EBITDA. Adjusted OIBDA includes several expense items that are eliminated from the bank credit adjusted OIBDA calculation. Bank Credit Adjusted OIBDA is determined in accordance with the definition of EBITDA in the Company’s senior secured credit facilities and the indentures governing the Company’s senior notes except as further detailed in the Earnings Release.

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

The Earnings Release also details the reconciliation of adjusted OIBDA and bank credit adjusted OIBDA to GAAP net income or loss attributable to Univision Communications Inc. which we refer to as net income or loss.

Third, for the fourth quarter results we will refer to revenue excluding political/advocacy and content licensing revenue as core revenue and advertising revenue excluding political/advocacy as core advertising revenue.

For the full year results, we will refer to revenue excluding political/advocacy, content licensing, estimated incremental Major Soccer advertising revenue which includes the June Copa America Centenario Tournament and the Gold Cup in 2015, non-recurring revenue related to support services provided to Fusion prior to the acquisition in 2016 and non-recurring revenue associated with the concurrent use of adjacent spectrum in one of our markets in 2015, as core revenue, and advertising revenue excluding estimated incremental Major Soccer advertising revenue and political/advocacy as core advertising revenue.

Fourth, when we address revenue or EBITDA as adjusted for comparability for the fourth quarter and full year results, we will refer to revenue or EBITDA as adjusted to exclude the impacts of the items excluded from revenue for such periods set forth.

Fifth, we will refer to all variable program licensing fees as PLA.

Sixth, unless we say otherwise, we are providing year over year comparisons and for T.V. ratings, it is among adults 18 to 49 in primetime.

Finally, with me on today’s call are Randy Falco, President and Chief Executive Officer; Frank Lopez-Balboa, Chief Financial Officer; and Peter Lori, Deputy Chief Financial Officer and Chief Accounting Officer.

I will now turn the call over to Randy.

Randy Falco: Thank you, Rainey and welcome, everyone, to our fourth quarter 2016 earnings call. I am pleased to announce that we had strong financial results

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

for the fourth quarter and full year 2016. In the fourth quarter, total revenue grew by 15 percent. Advertising revenue including political/advocacy grew by 8 percent and EBITDA grew by over 16 percent.

For the full year, we achieved the highest revenue and EBITDA in the history of our company with revenue crossing the $3 billion threshold for the first time ever. And we generated EBITDA of over $1.3 billion, our fifth consecutive year of EBITDA growth. We accomplished that while continuing a focus on our multiyear transformation of diversifying and strengthening our portfolio and strengthening our balance sheet through several efforts.

First, we continued to diversify our revenue streams. In 2016, non- advertising revenue represented approximately 34 percent of our total revenue, up from 24 percent in 2012. We expect this trend to continue as we work towards maximizing the license fee for the distribution of our content, stations, and networks. Recent notable wins included the distribution renewals of AT&T and Comcast in the fourth quarter.

And our must-see content has been included on new virtual MVPDs and over the top offerings including DirecTV Now. We have also established our own over the top offering with Univision Now, where we launched exclusive VOD content for the first time in the fourth quarter.

Second, we have continued to acquire and develop relevant content so that we can continue to position our networks as the Spanish language ratings leader.

The Univision Network finished the 2015/16 broadcast season as the number one network for U.S. Hispanics for the 24th consecutive year, outperforming our nearest Spanish language competitor by over 33 percent. We also had strong performance at UniMas, Galavision, and Univision Deportes. All three networks experienced season over season growth.

We are the number one Spanish language network in primetime, number one in early morning, and number one in total day. We have the number one nightly newscast, the number one cable entertainment network, and the

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

number one cable sports network in Spanish language. At the end of 2016, Univision Deportes was the only cable sports network to achieve ratings growth in each of the last four years and was the fastest growing sports network regardless of language –up 33 percent.

Across our linear assets – combined -- we achieved nearly 60 percent of all Spanish language television viewing in the ’15/’16 broadcast season.

Our strategic investments in popular sports rights and related content has not only driven ratings on the Univision Deportes Network, but has also had a positive impact on the ratings for our other networks. In 2016, ratings for our Copa Centenario broadcast exceeded our World Cup 2014 ratings and outperformed the equivalent English language broadcast across all 33 tournament matches.

In addition, we continued to acquire more rights for Liga MX, the most watched soccer league in the United States regardless of language, and Univision now has a majority of these rights in the U.S. With these expanded rights, in 2016 we launched Sabado Futbolero, our Saturday nights soccer franchise which features the best Liga MX matches across approximately 40 Saturday nights per calendar year. And just this week we announced a deal that will bring the live stream of select Liga MX matches directly to fans in English via Facebook Live.

Kicking off this Saturday and continuing throughout 2017, fans can stream Liga MX matches in the United States in real time on the Univision Deportes Facebook page and via Facebook’s video tab.

Facebook represents the next wave of T.V. distribution and given its scale, Facebook is an ideal partner to distribute our Liga MX matches.

Third, in 2016, we significantly expanded our digital footprint. We have grown our digital portfolio through a strategic investment in the Onion, the acquisition of the former Gawker Media digital assets which are now part of our Gizmodo Media Group and the acquisition of Disney’s interest in Fusion, including Fusion digital.

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

These investments have expanded our reach across new, young and diverse audiences, regardless of their ethnicity and language as well as with U.S. Hispanics who we weren’t previously reaching.

As a result, we estimate our average monthly unduplicated media reach, grew approximately 33 percent to over 93 million across the full year and grew nearly 40 percent to over 106 million in the fourth quarter across our portfolio including T.V., Digital, and Radio assets. As a result of our acquisitions and growth in our legacy digital business, Media Networks core digital advertising grew 66 percent in 2016.

With all these digital assets now operating under the Fusion Media Group, our company has access to popular content verticals including satire, tech, food and female to name a few, which we can leverage across our entire portfolio. Since we have acquired these assets, the company has been busy integrating, identifying synergies and developing a cross platform content strategy for 2017 and beyond.

Fourth, we continue to build on the strength of our powerful brand within the U.S. Hispanic community. In 2016, we remained the number one news destination for U.S. Hispanics and were a frequent resource for U.S. Hispanics during the 2016 election cycle.

We believe that when important events happen in our communities, such as election cycles, a Pope visit, Fidel Castro’s death or updates on immigration reform, U.S. Hispanics come to Univision more than any other media platform.

This is why it’s no surprise that once again in 2016 we were recognized for our efforts. In 2016 we won 115 Emmys across our local and national assets, a 16 percent increase from 2015. As a mission driven company, we continued to deliver on our promise to our viewers, to not only entertain and inform them but also to empower the community. During 2016, we organized hundreds of events in our local T.V. and radio markets, focused

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around health, education, civic participation, and upward mobility. And over 4 million people attended these events.

We also raised nearly $16 million for children in need, with the broadcast of Teleton USA fundraiser in December, as well as over $4 million for St Jude’s. We made investments in media programs for inner city schools across the country, as well as investments in creator incubators and writing programs. That’s because one of Univision’s core missions is to close the diversity gap in mainstream media, which starts with early education and accessibility.

We will continue to ensure that minority voices are heard and equally represented in media.

And finally, we continue to improve the financial profile of the company, all while investing in our content, digital assets, and brand. In 2016 we delivered over $1.3 billion in EBITDA, generated over $570 million in cash from operations and had over $200 million in net income. Our team remains focused on improving our capital structure and during 2016, we took significant steps towards the goal through nearly $400 million of net debt reduction.

In 2017 we expect to receive approximately $376 million in anticipated proceeds after final completion of the FCC’s spectrum auction. And we plan to use the proceeds to further reduce debt.

Before I turn it over to Frank to give you more details about our financial results I want to spend a minute on our programming strategy since you have probably seen some recent news about changes we made.

In January, along with , we announced that Isaac Lee, who had previously run our content divisions at Univision, will now oversee content across Univision and Televisa. We believe this demonstrates the strength of our relationship with Televisa.

Additionally, Televisa has invested in the development of content with the evolving dynamics of a U.S. Hispanic audience as a focus. An example of this is our current 9:00 o'clock telenovela, Vino El Amor, which was filmed in the

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U.S. and includes some English dialogue with Spanish subtitles and a relevant storyline for both U.S. and Mexican audiences. The show is one of our strongest performing novelas in the last 12 months. So, in short, our strategic partnership with Televisa continues to be strong, and we are seeing some good results from recent programming changes, and are very optimistic about the future with Isaac's new role helping to align our interests further.

We are also continuing to invest in non-Televisa entertainment content to complement Televisa's extensive portfolio. Starting in 2017, we will begin airing content on the Univision Network in prime time from our W Studios partnership with Patricio Wills, a very successful creator of Spanish T.V. content, and will launch our El Chapo mini series which was produced by our Story House production arm in conjunction with Netflix, and already has a lot of buzz, thanks in part to the timely nature of this story.

We believe that enhancing our production capabilities in combination with Televisa's portfolio, will make for a dynamic entertainment combination going forward.

In summary, we had a lot of successes in 2016, and look forward to a productive 2017. In 2017, Univision continues to be the number one network for U.S. Hispanics in 2016/'17 broadcast season to date.

And in the third quarter, to complement Sabado Futbolero, we have the Gold Cup soccer tournament. We continue to create new and exciting opportunities for our advertisers and brand partners by investing in entertainment and news content across our multi platform media portfolio.

Based on our fourth quarter audience levels, we estimate we will reach on average over 100 million unduplicated media consumers every month in 2017. We believe this combination of content and reach will lead to a strong Upfront in May.

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

Finally, we are well positioned for continued growth in 2017 and we will continue to inform, entertain, and empower our audience with the same enthusiasm and vigor as we have during the past 55 years.

With that, I'll hand the call over to Frank.

Frank Lopez-Balboa: Thank you, Randy, and good morning, everyone. In summary, I'm very pleased with our accomplishments in 2016 and the resulting impact on the company's financial profile.

First, as Randy mentioned, we achieved our highest revenue and EBITDA in the history of the company. Total advertising crossed the $2-billion-dollar threshold for the first time and non-advertising revenue crossed the $1- billion-dollar threshold for the first time.

Second, we achieved nearly $219 million in net income, which included a pre-tax non-cash impairment charge of $204 million.

Third, we generated over $570 million in cash from operating activities. We used cash to reduce our net debt during the year by $400 million.

Fourth, we eliminated our highest cost debt, calling $815 million of our 8.5 percent notes resulting in our weighted average cost of debt dropping nearly 40 basis points to 5 percent by year end. By eliminating the 8.5 percent notes and paying down debt throughout the year, we reduced our annual interest expense by over $45 million in 2016.

In 2017, you will see a full year impact of these actions. There will also be additional interest expense savings as we pay down debt with the use of Spectrum proceeds after completion of the FCC spectrum auction.

Fifth, despite a unique election cycle, we generated nearly $60 million of political/advocacy revenue for the year, in line with 2012 levels, even with less political spending than in 2012.

Finally, in 2016, we achieved several milestones that improved the financial strength of our business. This included renewing two agreements with large

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MVPDs at rates that reaffirm the value of our services, achieving core advertising growth, and making a series of digital acquisitions.

The digital acquisitions not only expand our reach with the young, diverse audiences, they also diversify our advertising revenue profile between traditional linear platforms and the expanding digital advertising market.

Now let me give you some details in the fourth quarter and full year results. In the fourth quarter, total revenue increased 15 percent to $846.5 million. Core revenue increased 8.5 percent to approximately $769 million. Net income was $108 million compared to approximately $9 million for the same period in 2015.

EBITDA increased over 16 percent to $390 million. Adjusting for comparability, EBITDA increased over 3 percent to $323 million.

Total revenue for the year increased nearly 6.5 percent to over $3 billion. Core revenue increased nearly 5 percent to over $2.8 billion. And acquisitions contributed approximately $63 million in revenue. Net income was nearly $219 million compared to a net loss of $45 million in 2015, which included a pretax non-cash impairment charge of $204 million in 2016 and $224 million in 2015. EBITDA for the full year increased by approximately 2 percent to over $1.3 billion. Adjusted for comparability, EBITDA increased by approximately 4 percent to over $1.2 billion.

Now, let me give you additional details on our fourth quarter results.

Advertising revenue increased by nearly 8 percent to over $541 million in the quarter. Core advertising increased 4 percent to nearly $512 million driven by acquisitions and growth at our linear networks.

Non advertising revenue, which is primarily comprised of subscriber fee revenue, content licensing revenue and other contractual revenue, increased 31 percent to over $305 million. Subscriber fee revenue increased $38 million to approximately $221 million due to distribution agreement renewals and contractual rate increases.

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

Content licensing increased by nearly $31 million to over $48 million. This increase was due to the timing of revenue recognition of content licensing agreements. Adjusting for content licensing for comparability non- advertising revenue increased approximately 19 percent to $257 million.

Moving on to costs, direct operating expenses related to programming increased approximately $51 million or 38 percent to $184.5 million. The increase was primarily driven by programming costs from our acquisitions of $25 million and increased entertainment, sports and news programming.

The PLA increased over 13 percent to $84 million due to increased revenue.

SG&A cost decreased 13 percent to $170 million. The decrease was primarily driven by management fees that were incurred in 2015 which are no longer being incurred in 2016, and a decrease from a one-time legal settlement in 2015 partially offset by nearly $13 million of expenses associated with acquired businesses.

Moving on to our segments. Media Networks total revenue for the fourth quarter increased nearly 17 percent to approximately $774 million. Adjusting for the comparability items for the fourth quarter our Media Networks segment core revenue increased nearly 10 percent to over $702 million. Acquisitions contributed approximately $38 million of revenue to Media Networks results.

Ad revenue increased more than 9 percent to over $474 million and core ad revenue increased nearly 6 percent to approximately $451 million primarily driven by digital acquisitions and a strong ‘16/ ‘17 Upfront.

Non-advertising revenue increased by over 30 percent to nearly $300 million. Subscriber fee revenue increased by $38 million to nearly $221 million due to distribution agreement renewals and contractual rate increases. Content licensing revenue increased nearly $31 million primarily due to the timing of revenue recognition of certain content licensing agreements.

CONFERENCE CALL SCRIPT UNIVISION COMMUNICATIONS INC.

Let me quickly cover Radio, where total revenue increased 1 percent in the quarter to nearly $73 million. Core Radio revenue decreased nearly 4 percent to $67 million. Ad revenue decreased by 2 percent to $67 million and core ad revenue decreased by 7 percent to $61 million primarily driven by national advertising.

Let me finish with our cash flows and balance sheet before I make a few comments about 2017. For the year, cash flows from operating activities were up $365 million to $577 million. Capital expenditure totaled approximately $100 million, down from $122 million in 2015 and we expect CapEx to decline further in 2017, to be approximately $90 million.

At the end of 2016, total indebtedness net of cash and cash equivalents was $8.9 billion, a $400 million decrease from year end 2015. Finally, we have approximately $1.6 billion of NOLs [at Univision Holdings, Inc.] as of year- end.

Before I turn it over for Q&A, let me make a few comments on 2017.

We’re well positioned for continued growth in 2017 and to continue to pay down debt and further improve our capital structure. We anticipate receiving $376 million in net proceeds after the final completion of the FCC spectrum auction. We expect to use the proceeds to pay down debt and do not anticipate paying any taxes on proceeds because of existing tax attributes.

Finally, there was a major announcement in January with regards to our strategic partnership with Televisa. The FCC authorized aggregate foreign ownership of Univision’s issued and outstanding shares of common stock to increase from 25 percent to 49 percent. In the same ruling, the FCC authorized Televisa to hold up to 40 percent of the voting interest and 49 percent of the equity interest of Univision. This ruling and the content initiatives we discussed earlier allows for even greater alignment of the two companies in driving our growth of our businesses and demonstrates that our strategic relationship with Televisa continues to be strong.

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With that, I’ll hand the call back over to Rainey for Q&A.

Rainey Mancini: Thanks, Frank. Operator, we are ready to begin the Q&A portion of the conference call. I want to remind you that we are in SEC mandated quiet period so we will only be able to take a limited amount of questions this morning. First question, please.

LIVE Q&A SCRIPT

Operator: At this time, I would like to remind everyone that if you would like to ask a question please press star then the number one on your telephone keypad. Our first question comes from Aaron Watts of Deutsche Bank.

Aaron Watts: Everyone, thanks for taking the question. Maybe, I could start with one for Randy and then I have a couple for Frank. Randy, I appreciate your comments on the programming front and the leadership adjustment with Isaac. Recognizing it’s still early days, can you talk to what you saw in terms of rating trends in the fourth quarter for some of the challenges earlier in the year and how 2017 has started, and, I guess if you’re seeing any improvement, how sustainable do you think those gains are, given the initiatives you’ve put in place?

Randy Falco: Yes, we actually, thanks, Aaron, we actually saw an increase in the fourth quarter mostly as I mentioned at the nine o’clock time period with Vino El Amor which was part of the strategy that we put in place last year to produce in Televisa, content that was more relevant to the American audience. The big change in strategy here for us and it’s important to understand, is that now with Isaac Lee in place and the understanding that we have with Televisa going forward, is that the United States, now, will become a primary place for distribution of content, not a secondary place.

So for instance, when we’re making decisions, now, at Televisa about content, we’re looking at places outside of and primarily in the United States, where the content will resonate. We’re already starting to see it in the fourth quarter, the turnaround, and in the first quarter, we’re up, I think almost 10 percent in our ratings in prime time. So the eight o’clock

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time period that we now have as a family friendly time period, and will be live programming going forward, is actually leading that turnaround, as well. I see the sustainability of that strategy going forward and I’m very optimistic about it.

Aaron Watts: All right. Great. That’s helpful. And maybe with that backdrop, Frank, if I could ask you about some general thoughts on the ad environment to start out 2017, especially post-election and what you’re seeing in terms of pacings for your T.V. unit, the Digital platform and Radio, as well.

Frank Lopez-Balboa: Good morning, Aaron, I’m happy to go through that. Coming off of a strong quarter, the fourth quarter, we expected that the first quarter, for us, would be a tough comp versus last year’s first quarter. I’ll remind everyone that last year’s first quarter core ad revenue increased over 7 percent, so that’s the comparison. And as you all know, the first quarter is seasonally our lowest revenue quarter for the year.

So having said all that, on the pacing perspective, our core revenue – excluding acquisitions – had Media Networks and Radio as pacing down high single digits. But let me give you some color on what I think is driving this pacing. And so I’ll go into a little bit more detail. Within the Media Networks, you look at the network alone, there are a couple things that are impacting our pacings.

First, based on the Upfront calendarization, a smaller percentage of our total dollars this year are being booked compared to last year. So while in some quarters, the calendar is a tailwind for network advertising in other quarters like the third quarter of last year and the first quarter of this year, it’s a headwind. And with regard to scatter pricing, even though scatter pricing is healthy, in fact, up materially versus the Upfront, volume is currently pacing down to a greater degree, so, the net impact in the scatter market is a little bit challenging for us this quarter.

Notwithstanding all that, we’re encouraged by the fact that network cancellations have remained in line with historic levels. So we see that as a positive signal for the advertising environment overall. Moving to Local T.V.,

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pacing is weak there, mostly impacted by the auto market. And we saw that in the network as well. However, based on intelligence, we believe dealer inventories are high in the fourth quarter so it may suggest that dealers will come back and try to spend more money on ad dollars to drive the traffic. And also, similar to the fourth quarter, at Local T.V. orders were booking much, much closer to air. So as a result, pacing has improved as we’ve moved through the quarter and as the trend continues and I’d expect that to improve somewhat, as well.

And on Digital, that’s a bright spot for us. Our Digital assets, our legacy Digital assets, are pacing extremely strong for the quarter. Then on Radio, Radio is pacing down primarily by trends at the network and national, and similar to Local T.V., orders are booking much closer to the air, so hopefully we’ll see some improvement in the quarter. And then lastly, our share continues to be fairly strong in Radio, and so we expect that this will be a good, positive trend for the balance of the year.

Aaron Watts: OK, great. That’s helpful color. Maybe just one last one from me. You currently, I think, are in dispute with Charter over distribution fees. Can you give us an update on where that process stands and any sense for when we might see a resolution to that?

Frank Lopez-Balboa: Yes, so really can’t say much about it. Our next date is – we’re going to be in court on the 28th to determine next steps and we’ll see what happens out of that.

Aaron Watts: OK. All right. Thanks for the time.

Frank Lopez-Balboa: Thank you.

Rainey Mancini: Operator, next question, please.

Operator: Our next question comes from David Hebbert of Wells Fargo.

David Hebbert: Good morning, everyone. Thanks for taking the questions. I wanted to ask about some of the M&A activity in the quarter. Frank, could you lay out for us what’s included in that incremental M&A revenue? Is that all Gawker and

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other things? I just noticed the subscriber revenue piece, too, but I was just wondering if you could explain that a little bit more.

Frank Lopez-Balboa: Right. So throughout the year we had three acquisitions. In the first quarter, we made the investment in The Onion, and so we saw some of that revenue impact throughout the entire year. And then at the end of the summer, we took on Fusion, so we had a little bit of an impact in the third quarter on Fusion and the full impact in the fourth quarter in Fusion. And on the assets from Gawker, or what we now call Gizmodo Media Group, now, that came in September, so we had roughly three or four weeks of revenue in September on Gawker assets, and the full fourth quarter.

David Hebbert: OK. That’s helpful. And I just wanted to try and translate, again, kind of going back to the pacings for the first quarter and then Randy’s commentary on the improvement in ratings. Do you anticipate that the improvement in ratings we’ll see, sort of a lagging effect on top line improvement later in the year? Just trying to figure out the time frame for that.

Frank Lopez-Balboa: Yes, so the first quarter, I went through in a lot of detail what’s impacting the revenues. Frankly, it was not impacted by ratings whatsoever. And obviously from the health of the business stronger ratings performance is important for us, and that’s something that we’ll see. Also keep in mind that last year, the first half of the year was pretty strong including, we had Centenario in the second quarter.

And the calendar from the Upfront, which was healthy, will build towards our Gold Cup event in the third quarter as well. And so that’s the impact on the revenue side, and then the last thing I would mention is that the strength in ratings is something which we’re going to market heavily in the Upfront, and it should be helpful to us when we go to the Upfront in mid-May

David Hebbert: OK. That’s helpful color. And then on the subscriber fee business, I know historically you’ve talked about having double digit growth through the end of, I guess, through 2020. I just wonder if you could update us on how you see that business going forward, especially now that you’re moving more towards the over the top side and any sort of changes there.

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Frank Lopez-Balboa: Really no changes. We are happy with the deals that we concluded this year. And it just reaffirms the value of our assets and we’re very optimistic on the growth of our sub revenues. And so, no change from what we’ve said in the past.

David Hebbert: OK. And then on the balance sheet, I appreciate the color on debt pay down with the spectrum proceeds. Just kind of curious where are you versus your comfort level? I mean, I think you’d like to be lower but maybe if you could help us with the time frame of that, and where your target leverage might be over time.

Frank Lopez-Balboa: So I think I’ve mentioned this in previous calls, we’ve had discussions with the Board on target leverage which we’re not able to, given we’re in the quiet period, we’re not able to talk about now. But, when you think about it, since 2015 with the reduction of book debt from the Converts – with the Televisa conversion into warrants--$400 million of debt reduction in 2016, another $376 here before ongoing cash from operations, that’s almost $2 billion worth of debt reduction on our balance sheet alone; and our focus here, and my focus, Randy’s focus, is to continue to reduce debt to build the value of the Company. And so you’d expect us to see more debt reduction this year and having said that our operating activities are very strong, we have lots of flexibility, but I’d like to see lower debt levels and lower leverage levels.

David Hebbert: OK. Good to know and I’ve got just two more and I’ll just kind of wrap it into one. So you mentioned the FCC decision on Televisa, can you remind us what exactly the Televisa ownership is today and then if the FCC does move on raising T.V. household-reach caps, does Univision have an interest in buying more broadcast assets, just any thoughts there would be appreciated. Thank you.

Frank Lopez-Balboa: Yes, so for Televisa, their total economic ownership right now is around 36 percent, give or take a little bit. And with the new FCC announcement, their direct equity voting interest is now 30 percent. And if you look at our S- 1, there are provisions when we petitioned the FCC to increase the

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ownership structure, they were able to get up to 30 percent voting interest and right now it’s 10 percent. So they went from 10 percent to 30 percent with the FCC announcement.

David Hebbert: OK. And then so the 36 percent could go to 49? Do I understand correctly?

Frank Lopez-Balboa: No, no, 36 is what they currently, economically have. The FCC has said they can go up to 49 percent, with the FCC announcement their direct equity ownership has gone from 10 percent -- will go to -- 30 percent.

David Hebbert: All right.

Frank Lopez-Balboa: Ability to go to 30 percent. They haven’t exercised it yet. But they have the ability to go to 30 percent.

David Hebbert: Got it. OK. Thank you for that. And then on the ownership caps?

Frank Lopez-Balboa: We’re comfortable with our portfolio as it is, so it’s all…

Randy Falco: But we remain opportunistic. We think the television station business is a good one. It’s very, very important to us for retransmission, obviously. And so to the extent that the cap goes up and we see something that we think is valuable for us going forward that we’ll certainly be in the market for that.

David Hebbert: OK. And then actually if I could sneak one last one in. The auction proceeds, I’m just assuming that has little to no impact on your broadcast cash flow, can you confirm that?

Randy Falco: Oh, it has absolutely no impact.

David Hebbert: OK. Got it. Thank you.

Rainey Mancini: That’s the last question we can take today. The IR team is available for any additional follow up questions. Thanks to everyone for joining us and have a good day.

Operator: This concludes Univision’s fourth quarter 2016 earnings call. You may now disconnect.