Televisa Quarterly Profit Hurt by Weaker Peso
Mexico’s top network recently upped its voting stake in U.S. broadcaster Univision.
Televisa, the world's leading producer of Spanish-language content, on Monday reported a 40 percent decline in second-quarter net income.
Mexico's leading broadcaster earned 1.3 billion pesos ($85 million), compared to 2.2 billion pesos a year ago. The company attributed the loss to a weaker peso.
Net sales, however, rose 8.5 percent thanks to growth in Televisa's pay TV divisions, which includes Sky Mexico and several cable outfits. Advertising revenue fell 16 percent for the quarter; for the year-earlier quarter, Televisa had exceptionally strong ad sales due to World Cup transmissions.
Televisa recently announced that it will increase its voting stake in its stateside partner Univision from 10 percent to 22 percent, and it also will extend a long-running programming pact with Univision, to whom it provides a large chunk of primetime content.
The new agreement modifies Univision’s royalty payments to Televisa, a key revenue source for the Mexican company.
Univision filed for an initial public offering last week.