Televisa Profit Measure Climbs on Pay-TV Subscriber Growth

Grupo Televisa SAB, the largest Spanish-language TV producer, reported a gain in third-quarter operating 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 yesterday 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.

Televisa fell 1.1 percent to 77.90 pesos at the close in Mexico City. The shares have climbed 14 percent this year.

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