Televisa net profit drops in fourth quarter, revenue rises

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The logo of broadcaster Televisa is seen outside its headquarters in Mexico City, Mexico March 9, 2017. REUTERS/Edgard Garrido/File Photo

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MEXICO CITY, Feb 24 (Reuters) – Grupo Televisa, Mexico’s biggest broadcaster, on Thursday reported an 8.6% drop in net profit in the fourth quarter from a year earlier due to lower revenue from the operating segment and the reduced number of customers renewing prepaid plans.

The company posted a net profit of 3 billion pesos ($148 million) in the fourth quarter, compared to 3.3 billion pesos during the same period in 2020.

Fourth quarter sales fell 4.4%. The company said in a filing with the Mexican stock exchange that there have been fewer prepaid plan top-ups for Sky, its direct-to-home satellite TV unit, as students and workers return to classes and the offices in person.

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Meanwhile, revenue from the operating segment fell 13.9% to 1.8 billion pesos a year earlier.

Televisa’s revenue rose 3.7 percent to 28.8 billion pesos from the year-ago period.

The company’s advertising revenue jumped 7.2 percent to 7.1 billion pesos, the company said, boosted by private sector customers seeking to position their brands and products in front of customers.

But the COVID-19 pandemic continued to negatively impact business, Televisa said, in part because sporting and entertainment events for which it holds transmission rights are operating with restrictions.

“Deteriorating conditions in global economies as a result of the pandemic could ultimately reduce demand for the Company’s products across its segments as its customers and users reduce or postpone spending,” the company said.

Televisa and US broadcaster Univision (UVN.UL) last month reached an agreement to create new Spanish-language media company TelevisaUnivision. Read more

“As a result, in the first quarter of 2022, Televisa expects to increase its cash and cash equivalents by approximately $3.2 billion,” the company said.

TelevisaUnivision’s global streaming platform ViX, which will compete against established rivals including Netflix Inc and Disney Plus (DIS.N), will launch in March, executives said. Read more

($1 = 20.5075 pesos at the end of December)

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Reporting by Cassandra Garrison, Valentine Hilaire and Noe Torres in Mexico Editing by Lisa Shumaker and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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