Grupo Televisa SA (TLEVICPO) 's satellite unit expects to add 100,000 customers in Central America after entering the region with service to Costa Rica last week.
The company's Sky satellite service began July 15 in Costa Rica and will be offered this year in Nicaragua, Televisa Executive Vice President Alfonso de Angoitia said in a conference call with analysts. The service, which has 1.49 million subscribers in Mexico, also will be available in Panama and the Dominican Republic by yearend, De Angoitia said.
Televisa is seeking revenue from outside Mexico as growth of its biggest source of revenue, broadcast television advertising, slows. The company is expanding its cable television and satellite business to make up for the decline in broadcast revenue.
``This is a very profitable business, although the Central American and Dominican markets are relatively small individually,'' said Marcos Duran, an analyst at Interacciones Casa de Bolsa in Mexico City.
Sky's Central American service will be run from Mexico to reduce costs, De Angoitia said.
Satellite sales account for 20 percent of consolidated sales and 22 percent of earnings before interest, taxes, depreciation and amortization, a measure of cashflow, Televisa said. ``Sky is a great business, and it's growing,'' De Angoitia said.
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