MIAMI--(BUSINESS WIRE)--Hemisphere Media Group, Inc. (NASDAQ:HMTV), the only publicly traded pure-play U.S. media company targeting the high growth Spanish-language television and cable networks business in the U.S. and Latin America, today announced financial results for the second quarter ended June 30, 2016.

Alan Sokol, CEO of Hemisphere, stated, “We are pleased with our performance in the second quarter, as we 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.

“Finally, we are 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.”

Net revenues were $35.0 million for the three months ended June 30, 2016, an increase of 7%, as compared to net revenues of $32.6 million for the comparable period in 2015. Net revenues were $66.0 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. These increases, for both the three and six month periods, 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.

Operating expenses were $24.4 million for the three months ended June 30, 2016, an increase of 2%, as compared to operating expenses of $23.8 million for the comparable period in 2015. Operating expenses were $48.2 million for the six months ended June 30, 2016, an increase of 4%, as compared to operating expenses of $46.3 million for the comparable period in 2015. These increases, for both the three and six month periods, were driven primarily by increased investment in programming and higher costs related to advertising sales and marketing, consistent with the Company’s efforts to upgrade the content on its networks and drive advertising sales across its networks, including the launch of advertising on Cinelatino.

Net income was $5.0 million for the three months ended June 30, 2016, an increase of $1.6 million, as compared to net income of $3.4 million for the comparable period in 2015. Net income for the six months ended June 30, 2016 was $7.7 million, an increase of $1.8 million, as compared to net income of $5.9 million for the comparable period in 2015.

Adjusted EBITDA was $15.5 million for the three months ended June 30, 2016, an increase of 5%, as compared to Adjusted EBITDA of $14.7 million for the comparable period in 2015. Adjusted EBITDA was $28.8 million for the six months ended June 30, 2016, an increase of 5%, as compared to Adjusted EBITDA of $27.5 million for the comparable period in 2015.

The Company affirms its forecast of a low double-digit percentage increase in Adjusted EBITDA for 2016 driven by strong growth in subscriber and retransmission fees and advertising revenue.

As of June 30, 2016, the Company had $211.8 million in debt and $147.2 million of cash. The Company’s leverage ratio was approximately 3.6 times, and net leverage ratio was approximately 1.1 times. Additionally, the Company repurchased 2.8 million shares of Hemisphere’s Class A common stock at $10.50 per share for $29.4 million in the quarter.

About Hemisphere Media Group, Inc.

Hemisphere Media Group, Inc. (NASDAQ:HMTV) is the only publicly traded pure-play U.S. media company targeting the high growth Spanish-language television and cable networks business in the U.S. and Latin America. Headquartered in Miami, Florida, Hemisphere owns and operates five leading U.S. Hispanic cable networks, two Latin American cable networks, and the leading broadcast television network in Puerto Rico. Hemisphere’s networks consist of:

• Cinelatino, the leading Spanish-language movie channel with over 17 million subscribers across the U.S., Latin America and Canada, including 4.5 million subscribers in the U.S. and 13.0 million subscribers in Latin America, featuring the largest selection of contemporary Spanish-language blockbusters and critically-acclaimed titles from Mexico, Latin America, Spain and the Caribbean.
• WAPA, Puerto Rico’s leading broadcast television network with the highest primetime and full day ratings in Puerto Rico. Founded in 1954, WAPA produces more than 75 hours per week of top-rated news and entertainment programming.
• WAPA America, the leading cable network targeting Puerto Ricans and other Caribbean Hispanics living in the U.S., featuring the highly-rated news and entertainment programming produced by WAPA. WAPA America is distributed in the U.S. to 5.2 million subscribers.
• Pasiones, dedicated to showcasing the most popular telenovelas and drama series, distributed in the U.S. and Latin America. Pasiones has 4.5 million subscribers in the U.S. and 10.8 million subscribers in Latin America.
• Centroamerica TV, the leading network targeting Central Americans living in the U.S., the third-largest U.S. Hispanic group, featuring the most popular news, entertainment and soccer programming from Central America. Centroamerica TV is distributed in the U.S. to 4.0 million subscribers.
• Television Dominicana, the leading network targeting Dominicans living in the U.S., featuring the most popular news, entertainment and baseball programming from the Dominican Republic. Television Dominicana is distributed in the U.S. to 3.1 million subscribers.