Televisa earnings drop by 17%
Iñaki Ferreras ©RapidTVNews | 21-02-2012
Mexican broadcaster Televisa has reported a disappointing Q4 2011, with profits falling by 17% year on year amid a depreciation of the peso, plus interest and greater participation of non-controlling interests.
The company, a leading producer of Spanish-language television content in the world, is also the largest player in the markets for pay-TV and the country. Yet the country’s largest TV network posted net income of 2.17 billion pesos ($155 million), well below that expected by analysts.
In addition net sales increased 11% in the quarter to 18.29 billion pesos, supported by strong gains in revenue from not only pay-TV business but also its telecoms division. The business of cable TV alone saw revenues soar by 16% while the Sky satellite TV company showed a rise of 11.2%. The company's core business, broadcast television, saw revenue growth of 5%.
Explaining the less than expected income, Televisa said that period earnings were affected by a higher tax burden, with the company paying $403 million dollars, against $566 million during the same period of 2010. The company also reported that in October 2011 it had made a final payment of $450 million as part of its acquisition of 50% of cell phone firm Iusacell.
That acquisition was blocked recently by Mexican authorities, out of concern that could encourage collusion between Televisa and Iusacell's sister company, TV Azteca, the second largest television operator in Mexico.
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