Televisa Climbs on Bets Regulations to Delay Slim’s TV AmbitionsSonali Basak
Grupo Televisa SAB, Mexico’s biggest broadcaster, rose to the highest since at least 1994 on speculation proposed regulations will hinder America Movil SAB’s television expansion plans for at least two years.
Televisa shares rose 2.8 percent to 85.33 pesos at 11:16 a.m. in Mexico City, making it the best performer on Mexico’s benchmark IPC index. Analysts expect Televisa, which draws almost 70 percent of broadcast viewers, to benefit from rules that would require America Movil’s Telmex subsidiary to wait at least two years before applying for pay television licenses.
“If America Movil enters that sector it will be very competitive,” Valeria Romo, an analyst with Banco Monex SA, said in a phone interview from Mexico City. “In the short term, Televisa can propel growth in television.”
America Movil, controlled by billionaire Carlos Slim, has fallen 5.2 percent since President Enrique Pena Nieto announced the proposal March 24, the biggest two-day decline since August. Mexico City-based Televisa rose 3.8 percent in that time.
The proposed restrictions on America Movil stem from the government’s efforts to clamp down on its dominance in the telecommunications industry, where it services 70 percent of Mexico’s mobile-phone users and 80 percent of fixed lines.
The restriction on America Movil “opens Televisa up to participate in other sectors of telecommunications” as it maintains its TV strategy, Romo said. “The regulation in media is less aggressive than in telecommunications.”