World Cup drives satellite subs boost for Televisa
Juan Fernandez Gonzalez | 08 July 2014
Brazil's World Cup is driving higher advertising spending and increased satellite subscriptions for Mexico's Televisa, with Q2 reports showing an operating profit up 2.1% from a year earlier to $585 million.
According to Bloomberg, Televisa, which had rights to all 64 World Cup matches through its Sky satellite unit, is relying on exclusive content to draw viewers and advertisers.
Satellite users grew by 203,262, compared with the 140,000 average estimates of three analyses compiled by Bloomberg. The company ended the quarter with 6.4 million satellite customers, up 13% from 12 months earlier.
Cable connections - Internet, video and phone - totalled 5.4 million, an increase of 190,000 from the prior quarter, compared with the 150,000 average estimate. Video customers were up 6.9% from a year earlier, up from 6.5% in Q1.
Advertising sales grew by 6% to nearly $500 million as companies spent more for World Cup ad spots. The tournament also increased Televisa's costs, with the content unit's profit margin falling 3.3 percentage points to 46%. The World Cup's effect normally stretches from the end of the second quarter to the beginning of the third.
Televisa shares have been climbing due to optimism that the new telecommunications laws will help it compete with billionaire Carlos Slim's America Movil SAB for Internet and phone users.