Expenses take Televisa income down a notch

Posts 9.6% drop in third-quarter income

MAZATLAN, Mexico -- Mexican media powerhouse Televisa on Thursday posted a 9.6% drop in third-quarter net income as high financing costs and expenses cut into profitability.

Televisa said that quarterly net income dipped to nearly 2.1 billion pesos ($189 million), down from about 2.3 billion pesos a year ago.

Thanks to a windfall in ad revenue earned from coverage of the Olympic Games and strong performance from Televisa's pay TV and telecom divisions, net sales rose 21% to 12.5 billion pesos, marking an all-time quarterly high.

Televisa-owned satcaster Sky and cabler Cablevision both saw sales climb as they increased their subscriber bases.

Televisa, which is Univision's main content supplier, has a pending lawsuit against its stateside partner set for January. The Spanish-language media titans have a long-running dispute over royalties and Internet rights. Televisa says it is seeking to terminate its longterm programming agreement with Univision.

In the meantime, Televisa has been boosting its international presence with recent production and distribution pacts signed in China, France, Brazil and Argentina.