Even with the final leg of Copa America Centenario yet to be held, Groupo Televisa S.A.B’s (TV Quick QuoteTV - Free Report) Univision has managed to sell about $135 million in advertising, more than double the amount ($70 million) it paid for the tournament’s broadcasting rights. In fact, as per a Bloomberg report, the company has exceeded its revenue expectations by 20%. This should be good for Univision given that it is planning an initial public offering (IPO) in the second half of this year.

Did the Investment Pay Off?

Copa America Centenario, a one-off event in celebration of 100 years of South America’s national football championship, had previously made headlines on allegations of bribery, leading to speculations as to whether the event would take place at all. However, while CONMEBOL and CONCACAF – the governing bodies of football – were in talks related to the issue, Televisa intervened and made sure that the tournament actually took place. The company even deployed $5 million for its TV coverage. It has also teamed up with Twenty-First Century Fox, Inc.’s (FOX Quick QuoteFOX - Free Report) Fox Sports and Twitter, Inc. to stream highlights of matches with ads.

We believe, given the grand success of the event and soaring ad revenues, that Televisa’s investment is paying off considerably well.

Going Ahead

Such a successful investment should have a material impact on the upcoming IPO of Univision. The company expects to raise as much as $1 billion from the offering. Also, if it meets valuation expectations, we anticipate a substantial upside in Televisa’s stock, going ahead.

Grupo Televisa currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the same space is AMC Networks Inc. (AMCX Quick QuoteAMCX - Free Report) , carrying a Zacks Rank #2 (Buy).

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