Mexico's Televisa Reports Higher Profit on World Cup Ad Sales, Univision Royalties
The TV giant is cashing in big time on futbol fever.
MEXICO CITY – Mexican media giant Televisa on Monday reported strong second-quarter growth fueled by World Cup ad sales and programming royalties from Univision.
Mexico's top network posted a quarterly net profit of 2.2 billion pesos ($170 million), up 21 percent from a year ago.
As expected, broadcasters in soccer-mad Mexico have reaped the rewards of World Cup coverage. Televisa satcaster Sky Mexico, which benefited from the transmission of 24 matches on an exclusive basis, signed up more than 200,000 new subscribers, bringing its total client base to 6.4 million.
The World Cup has brought a windfall in ad revenue for Televisa's broadcast TV unit as well, and ratings have been exceptional: according to Nielsen IBOPE, between Televisa and rival network TV Azteca, some 10.2 million viewers tuned in to the Mexico-Netherlands match.
Televisa, the world's leading producer of Spanish-language content, also took in significant revenue ($84 million) from Univision royalties. Televisa provides Univision with the bulk of its primetime content.
All told, net sales rose 7 percent to 19.3 billion pesos.
Analysts say Televisa is likely to increase its stake in stateside partner Univision to as much as 40 percent as Univision's current owners seek to sell the company for more than $20 billion.