Televisa sees fall in Q2 profit
Net income down 1% to $139 milMEXICO CITY -- Mexican media conglomerate Televisa on Thursday reported flat second-quarter earnings, hurt by financing costs, affiliate losses and increased competition.
The world's top producer of Spanish-language programming posted a quarterly net income of 1.8 billion pesos ($139 million), down about 1% from the year-earlier period. Net sales came in at nearly 13 billion pesos, representing a 10% increase, but Televisa saw sluggish growth at its core broadcast TV unit and its No. 2 revenue generator, Sky Mexico.
Sky Mexico is facing stiff competition from Dish Mexico, a joint venture between EchoStar and Mexican media company MVS.
Just six months after launching in Mexico, Dish has signed on more than 500,000 clients. Prior to Dish's entry into the Mexican market, Televisa-owned Sky Mexico had a monopolistic grip on the satellite TV business here.
Televisa said in a company statement that Sky "faced increased and aggressive competition in Mexico and a slowdown in economic activity."
Mexico's leading broadcaster also took a hit from losses at its Spanish network affiliate La Sexta, as well as financing costs associated with high interest payments and unfavorable currency exchange rates.