MEXICO CITY — Mexican media conglom Grupo Televisa reported second-quarter net profit up 165% due to increased satellite TV subscribers and heavy political advertising.
Net income rose to 1.28 billion pesos ($118.5 million) from April to June compared with $44.7 million a year ago, when it took a one-time hit from losses at satellite TV unit Sky.
Earnings fell below analysts’ expectations of around $139 million.
Revenue increased 6.5% to $729 million compared with the second quarter of 2004.
Sales at the broadcasting unit rose 7.5% to $415 million boosted by political advertising from spring gubernatorial races and candidates getting a jump on next year’s presidential race.
Net noted that advertising revenue was partially influenced by Easter weekend falling in the first quarter of 2005 compared with 2004 when it occurred in April. Most Mexicans take a weeklong holiday during Holy Week and ad spending falls.
Sales at Sky rose 17.7% to $134 million, driven by a 26.1% increase in subscribers, now at 1.18 million, and non-recurring pay-per-view income from exclusive sporting events.
Revenue was also up from feevee TuTV, as well as publishing, publishing distribution, cable TV and radio units.
Overseas programming sales fell 9.7% to $58.8 million due to unfavorable currency exchange, lower Latin American sales and a 3.7%, or $1.1 million, drop in royalties from Univision compared with the year before.
Sales in Televisa’s other businesses — feature film division, Internet portal and sports businesses — fell 19.1% due to lower film sales. Group lost $5.2 million.