You will be redirected back to your article in seconds

TELEVISA STOCK UP; CEO ANKLES

MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline.

Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health reasons and handing control to his son Emilio Azcarraga Jean, 29, and his CFO, Guillermo Canedo White.

Though Azcarraga Milmo, 66, has ruled Televisa in autocratic fashion since 1972, the departing prez said his son and Canedo White have effectively run the company on a day-to-day basis “for some time.”

In the newly created position of founding chairman, Azcarraga Milmo will continue to be closely involved in Televisa’s satcasting ventures, such as Sky Latin America, Televisa’s direct-to-home (DTH) partnership with News Corp., TCI Intl. and Brazil’s Globo.

“It doesn’t change anything,” said Sky CEO David Evans of the leadership change. “Besides, Guillermo Canedo is a very bright guy. Financially, he’s brilliant and he has a good feel for television and the satellite business.”

Analysts have expressed concern about management depth at Televisa, but the promotion of Canedo White to chairman is widely seen as a reassurance to shareholders that the young Azcarraga Jean will not yet be saddled with the full burden of Televisa leadership.

The new team, which also includes seasoned politician Miguel Aleman Velasco as vice chairman and former Univision chairman Jaime Davila as chief operating officer, now faces the twin tasks of turning Televisa’s $180 million investment in Latino DTH into a viable business and halting a 16-month slide in domestic broadcast audience share.

While concerns over DTH, ratings slippage and Azcarraga Milmo’s recent ill health fueled the two-month slide in Televisa’s stock price, the company’s fourth-quarter results and predictions for 1997 revenues have given investors cause for cheer.

“TV sales were strong and operating cash flow was very positive,” said Shayne McGuire of Deutsche Morgan Grenfell. He added that 1997 looks very good for Televisa, with TV revenues forecast to climb strongly.

Though substantial debt financing costs contributed to a net loss for the year of $78 million (on revenues of $1.46 billion), McGuire said interest expenses were lower than expected, indicating the benefit of debt restructuring during 1996.

Televisa ADRs closed Tuesday on Wall Street up 4.2% in the face of a down market.

More Scene

  • 'SORRY TO BOTHER YOU'

    Why 'Sorry to Bother You' Director Boots Riley Thinks His Satirical Comedy Is 'Realistic'

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

  • Tesse Restaurant Opens on L.A.'s Sunset

    Tesse Restaurant Takes on the Challenge of Making the Sunset Strip Hip Again

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

  • Tiffany Haddish

    MTV Movie and TV Awards: The 10 Standout Moments

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

  • Michael B. Jordan

    'Black Panther,' 'Stranger Things' Reign at 2018 MTV Movie and TV Awards (Full List)

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

  • Brandon Flynn, Timothy Granaderos, Alisha Boe,

    Alisha Boe Says Brock Turner Case Was Her 'Bible' for '13 Reasons Why' Season 2

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

  • Yara ShahidiMTV Movie & TV Awards,

    Yara Shahidi, Noah Schnapp, More Talk the Dangers of Social Media at MTV Awards

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

  • A Night in the Writers' Room

    'Vida,' 'One Day at a Time' Showrunners Recount Being Called Racial Slur in Writers' Room

    MEXICO CITY — A combination of strong fourth-quarter results and the confirming of a new management team proved exactly the right tonic for media giant Televisa, whose stock began to recover Tuesday after a two-month, 30% decline. Emilio Azcarraga Milmo, Televisa’s majority-owner and CEO of 25 years, said Monday he was stepping down for health […]

More From Our Brands

Access exclusive content