Grupo Televisa SAB : Mexico's Televisa 2Q Net Profit Pressured by Iusacell Expense
07/10/2012| 08:40am US/Eastern
MEXICO CITY--Spanish-language media company Grupo Televisa SAB (TV, TLEVISA.MX) said Tuesday its controlling net profit fell 16% on the year during the second quarter, to 1.40 billion pesos ($105 million), due to higher financing costs related to its stake in Mexican mobile operator Grupo Iusacell.
Mexico's biggest television broadcaster and the world's top producer of Spanish-language programming, said a MXN481.6 million increase in other financial expenses related to a change in the noncash value of its Iusacell stake contributed to the lower net profit. The adjustment in Iusacell's valuation was due to a change in foreign-exchange rate expectations.
Televisa, which seeks to add mobile-phone service to its triple-play offerings, last year reached an agreement to invest $1.6 billion for a 50% stake in Iusacell.
Net sales during the quarter rose 12.3% to MXN16.98 billion, beating analyst expectations of 7.5% growth. Content revenue was up 8.2% despite flat advertising sales. Satellite television revenue rose 13.6% and cable TV and telecommunications revenue was up 16.2% from a year earlier.
The Sky Mexico satellite television service added 267,090 subscribers in the quarter to just under 4.6 million, while Televisa's cable units added around 66,000 subscriptions to cable, phone or Internet services. At the end of the quarter, the cable units had just over 4.1 million subscriptions to those services.
Televisa shares closed 1.5% lower in New York Monday at $21.08.
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