Azteca Q2 suffers steep net income drop
EmptyMEXICO CITY -- TV Azteca, Mexico's No. 2 network, reported a second-quarter net income plunge of 68% on Monday as the company took a hit from the absence of extraordinary ad revenue earned during the year-earlier period.
The Mexico City-based broadcaster posted a net profit of 218 million pesos ($20.3 million), down from 680 million pesos a year ago.
Mexican broadcasters raked in a considerable sum of revenue during the same period last year thanks to extraordinary ad sales generated from transmissions of World Cup soccer matches and political spots ahead of a presidential election.
Azteca's quarterly net sales came in at 2.23 billion pesos ($207 million), compared with 2.75 billion pesos last year.
"Comparables are particularly difficult this period because the second quarter a year ago registered the peak of the advertising revenue cycle related to the extraordinary events of 2006," TV Azteca CEO Mario San Roman said.
Azteca America, the company's wholly owned U.S. Spanish-language network, said sales increased 22% to 141 million pesos. Azteca America ranks a distant third behind market leaders Univision and NBC Universal's Telemundo.