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Grupo Televisa SAB, the world’s largest Spanish-language broadcaster, said second-quarter profit fell 16 percent on a reduction in the value of its wireless investment. Sales beat analysts’ forecasts.
Net income slid to 1.4 billion pesos ($105 million), from 1.66 billion pesos a year earlier, Televisa said today in a filing to Mexico’s stock exchange. Sales rose 12 percent to 17 billion pesos, topping the average estimate of 16.6 billion pesos by seven analysts tracked by Bloomberg.
Televisa recorded financial costs of 945 million pesos in the quarter, double last year’s total, mostly for a reduction in the value of its $1.6 billion investment in Grupo Iusacell SA, Mexico’s third-largest wireless carrier. The writedown for accounting purposes didn’t involve a cash expense. The broadcaster, based in Mexico City, acquired a 50 percent stake in the mobile-phone company last month.
Advertising for Televisa’s over-the-air channels was little changed from a year earlier at 5.57 billion pesos, even after a Mexican law banned government advertising before the nation’s presidential elections on July 1.
“Despite the impact that the electoral campaign had in Mexico during the quarter, and consequently the temporary absence of certain advertisers, sales growth beat our expectations,” Julio Zetina, an analyst at Vector Casa de Bolsa SA in Mexico City, said today in a research note. “This was a good report.”
Televisa boosted its forecast for 2012 sales in the content unit, which includes broadcast advertising, syndication revenue and sales from Televisa’s cable channels. Content revenue will rise 7 percent to 8 percent in 2012, compared with an earlier forecast for growth of 6 percent to 7 percent, said Alfonso de Angoitia, executive vice president, today in a conference call.
The company added 267,090 satellite TV subscribers for a total of 4.55 million. Its three cable units, all controlled by Televisa, added more than 14,500 video subscribers, 36,100 Internet customers and 15,400 phone lines.
Televisa rose 0.9 percent to 57.06 pesos at the close in Mexico City. The shares have dropped 2.8 percent this year.
(Televisa held a conference call today to discuss second- quarter results. To listen, click here.)
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