Revenue slips 3.7% to $907 million
Mexican media conglom Televisa reported a 15.4% decline in second-quarter profits to $2 billion pesos ($188 million) due to a sharp drop in ad revenue compared to last year when it posted record profits on ads ahead of presidential elections and the soccer World Cup.Revenue slipped 3.7% to $907 million. The company noted a surprising drop in consumer spending had also contributed to lower sales. The company said it expected annual sales to drop 2% compared to 2006. Sales at broadcasting unit fell 15.5% to $456.6 million. While Televisa’s broadcasting revenue was down, income from cable and satellite pay TV operations showed strong growth. Sales at satcaster Sky Mexico, the nation’s only satellite pay TV company, grew 7.5% to $188 million while revenue from Mexico City cabler Cablevision grew 17% to $54.1 million. Televisa has been beefing up its cable operations as it unrolls a platform of triple play services. On Sunday, Televisa announced it had pacted to supply its free-to-air stations and pay TV channels to telco Maxcom. Mexico’s anti-trust agency had authorized Televisa’s purchase of major stakes in Monterrey-based TVI and Cablemas, Mexico’s No. 2 cable company, on the condition that Televisa provided its content to competitors as well as carry other broadcasters on its pay TV platforms. Integration of both cable companies will add more than 890,000 subs to the 527,000 with Cablevison.