Grupo Televisa SAB (TLEVICPO), the world’s largest Spanish-language broadcaster, gained the most in five months after growth in its cable and satellite television units helped first-quarter profit almost double.
Televisa rose 4.1 percent to 56.39 pesos at the close in Mexico City, the biggest gain since Nov. 30. The shares have gained 3 percent this year.
Televisa is luring customers of billionaire Carlos Slim’s America Movil (AMXL) SAB with packages of cable TV, phone and Internet service. The three cable carriers controlled by Televisa added a total of 35,000 video subscribers, 74,000 Internet users and 34,000 phone customers in the quarter.
“Results beat our estimates across almost all business lines,” said David Joyce, an analyst at Miller Tabak & Co. in New York, today in a research note. “We would continue to be buyers.”
Net income climbed to 1.5 billion pesos ($116 million) from 780.4 million pesos a year earlier, the Mexico City-based company said yesterday. Sales increased 15 percent to 15.2 billion pesos, topping the 14.7 billion-peso average of three analysts’ estimates compiled by Bloomberg.
The satellite unit added 275,000 clients for a total of 4.3 million, compared with the 238,000 estimate of Vera Rossi, an analyst at Barclays Plc in New York.
Sales in the content business, which includes broadcast advertising, syndication and cable-TV networks, rose 14 percent to 6.47 billion pesos. The growth came in part as the Mexican government paid for more TV commercials before a ban on its advertising during the presidential election cycle. Second- quarter sales will be hurt by the ban, Executive Vice President Alfonso de Angoitia said today on a conference call, without providing an estimate.
Profit included a foreign-exchange gain of 342 million pesos, up from a gain of 39.1 million pesos a year ago.
To contact the reporter on this story: Crayton Harrison in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: Nick Turner at email@example.com