Televisa profits tumble 6.8%
Iñaki Ferreras ©RapidTVNews | 21-10-2011 Televisa, Mexico's leading broadcaster and the world's biggest producer of Spanish-language television programming, has reported a sharp fall in profits for the July-September period.
The company reported a net profit of 2.05 billion pesos ($148 million), down 6.8% from a year earlier and attributes non-cash exchange losses from a weaker peso against the U.S. dollar, and the absence of non-recurring income from the sale last year of a stake in the Volaris airline to the lower net result.
However, during the period year on year sales rose 8.1% to MXN15.96 billion, with gains in all its business lines. Broadcast advertising revenue rose 2.4% from a year earlier, despite the absence of advertising this year by companies controlled by Mexican media tycoon Carlos Slim and of sales related to last year's soccer World Cup.
The net result beat the MXN1.73 billion median expectation of four equities analysts consulted by Dow Jones Newswires.
Operating profit rose 12% to MXN4.64 billion. Earnings before interest, taxes, depreciation, and amortization, were MXN6.48 billion, compared with MXN5.79 billion a year ago and expectations of MXN6.03 billion.
Sales in the company's cable and telecommunications businesses rose 13% as Televisa added over 542,000 subscriptions to its cable, Internet and phone services in the 12 months through September, bringing the total to 3.7 million. And satellite TV unit Sky Mexico added 238,000 subscribers in the quarter, and had 3.8 million at the end of September.
On exporting export programming sales rose 30% from the third quarter of 2010. Royalties from U.S. broadcaster Univision under an extended program licensing agreement reached last year rose to $58.2 million from $42.3 million.