Revenue: 2.83 billion
Loss: 676 million
Latin America’s largest media conglomerate, Organizacoes Globo, is undergoing an extensive restructuring process while suffering from Brazil’s economic slowdown.
OG announced in June that the group’s Globopar will become a public company and will be renamed Globo S/A, which will consolidate the property of all the group’s companies.
This development comes on the heels of a constitutional amendment passed in May that deregulates local media groups’ ownership. The restructuring clears the way for OG to go public and is part of its effort to attract new shareholders, including local and foreign groups.
But local media companies will have to wait for complementary legislation to sell shares to foreign investors. Before the change in the law, the media groups’ ownership was limited to Brazilian individuals — the Marinho family, in OG’s case.
Globopar’s president, Philippe Reichstul, will be the prexy of Globo S/A, while Roberto Irineu Marinho of the controlling family, will be Globo S/A’s board president. The likely IPO or new partner would bring in a more than welcomed influx of capital. OG had a loss of $676 million in 2001, down from a profit of $467 million in 2000. The group’s revenue fell to $2.9 billion in 2001 from $3.2 billion the previous year.
OG attributed the poor performance to a 14.3% fall in Brazil’s total 2001 ad investment, affecting the group’s flagship company, broadcaster TV Globo the ratings leader, which sold its telenovela “Vale Todo” to U.S. net Telemundo. The Spanish- dubbed version of another TV Globo telenovela, “El Clon,” allowed Telemundo to edge ahead of rival Univision in June for the first time.