Bloomberg News

Sports World Rises After Stake Sale Approval: Mexico City Mover

June 28, 2012

Grupo Sports World SAB (SPORTS), Mexico’s only publicly-traded gym operator, surged the most in four months after its board authorized an investment group to purchase a minority stake.

The shares climbed 3.2 percent to 13.93 pesos at the close of trading in Mexico City, the biggest advance since Feb. 20. The benchmark IPC index of 35 Mexican companies rose 0.4 percent while the IRT Small Capitalization index, of which Sports World is a part, rose 0.2 percent to 236.02.

The gym operator’s board approved the acquisition of as much as 9.99 percent of Sports World shares by an undisclosed investor group, according to a filing yesterday to Mexico’s stock exchange.

“The company is luring new investment,” Gerardo Copca, an analyst with Metanalisis SA, said in a telephone interview from Mexico City. “Their expansion plan is going to continue.”

The Mexico City-based company also cut its 2012 revenue and profit margin forecasts yesterday. Revenue will grow 43.5 percent this year, down from a previous projection of 50 percent, according to a statement yesterday. Its profit margin based on earnings before interest, taxes, depreciation and amortization will be 16 percent, down from a previous forecast of 19 percent.

To contact the reporters on this story: Patricia Laya in New York at playa2@bloomberg.net; Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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