Breaking News

U.S. May Home Prices Rise 0.4% From Previous Month: FHFA
Tweet TWEET

Televisa Tops Profit Estimates on Pay-Television User Growth

Grupo Televisa SAB (TLEVICPO), the largest Spanish-language TV producer, reported a gain in third-quarter profit as new cable and satellite customers led revenue growth.

Operating-segment profit, which leaves out items such as depreciation and amortization, rose 6.1 percent to 7.96 billion pesos ($614 million), Mexico City-based Televisa said today in a statement. Sales rose 8.1 percent to 18.8 billion pesos, compared with the 18.6 billion-peso average of seven analysts’ estimates compiled by Bloomberg.

Chief Executive Officer Emilio Azcarraga is turning to pay-TV services for growth as advertising sales level off for Televisa’s broadcast-television networks. Cable-TV subscriptions rose by more than 58,000 to 2.46 million. Sky satellite-service users rose by almost 233,000, in line with the 233,500 average estimate of four analysts polled by Bloomberg.

Mexican President Enrique Pena Nieto reduced government spending on advertising this year, while lawmakers set new “must-offer” rules, which require Televisa to offer its over-the-air programming to pay-TV rivals for free. Televisa reported 8.79 billion pesos in revenue from television advertising and licensing in the third quarter, compared with an average estimate of 8.7 billion pesos.

Third-quarter net income was 2.39 billion pesos, or 84 centavos a share, compared with 2.86 billion pesos, or 1.01 pesos, a year earlier, on higher costs for items such as taxes and depreciation.

To contact the reporter on this story: Patricia Laya in Mexico City at playa2@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.