Mexico’s Televisa posts big Q2 miss on Univision JV drop, satellite disconnections By Reuters

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<span>© Reuters. The logo of broadcaster Televisa is seen outside its headquarters in Mexico City, Mexico, December 14, 2022. REUTERS/Raquel Cunha</span><br />
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<p>By Kylie Madry</p>
<p>MEXICO CITY (Reuters) – Grupo Televisa reported a more than 95% slide in quarterly net profit on Tuesday as the broadcaster’s income from its joint venture with Univision slipped and satellite TV unit Sky saw increased disconnections.</p>
<p>Profit only reached 133.5 million pesos ($7.8 million) in the second quarter, a sharp drop from the 3.14 billion peso profit seen in the year-ago quarter.</p>
<p>Earnings per share came in at 5 peso cents a share, missing the Refinitiv estimate of 25 peso cents per share.</p>
<p>The company’s revenue remained relatively stable at 18.5 billion pesos, also missing the estimate of 18.8 billion pesos from analysts polled by Refinitiv.</p>
<p>TelevisaUnivision, a firm that combines content with U.S. broadcaster Univision, saw net income drop in the first half of the year, Televisa said in a statement. </p>
<p>TelevisaUnivision has rolled out a subscription-based streaming platform, ViX+, which has aimed to compete with established rivals such as Netflix (NASDAQ:) and Amazon (NASDAQ:)’s Prime Video.</p>
<p>The Mexican firm also saw a dilution gain in the year-ago quarter when a JV stockholder converted preferred shares into common shares, Televisa added, as well as a gain on the reversal of an impairment loss.</p>
<p>The three factors caused the share of income from the joint venture to show a fall by 4.19 billion pesos, Televisa said.</p>
<p>Televisa also said its satellite TV service Sky saw 191,000 net disconnections of revenue-generating units (RGUs) in the quarter, driven by the loss of 164,100 video RGUs.</p>
<p>The broadcaster “could continue to see constant challenges in Sky through the end of 2023,” analysts at brokerage Monex wrote, though an expected slowing in inflation could lighten the load.</p>
<p>Expenses, not including regular corporate expenses and depreciation and amortization, also more than quadrupled in the quarter, partially due to severance payments after lay-offs at Sky and in Televisa’s cable unit, it said.</p>
<p>The firm’s cable unit saw more than 5,000 net RGU disconnections in the quarter due to churn from expiring promotions and April price increases, Televisa said.</p>
<p>Televisa was the top loser on Mexico’s Banamex-30 stock index on Tuesday ahead of the release of the results, closing down nearly 3.5%.</p>
<p>($1 = 17.1156 pesos at end-June) </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/mexicos-televisa-posts-big-q2-miss-on-univision-jv-drop-satellite-disconnections-3133976">Source link </a></p><p>The post <a href="https://forextraderhub.com/mexicos-televisa-posts-big-q2-miss-on-univision-jv-drop-satellite-disconnections-by-reuters.html">Mexico’s Televisa posts big Q2 miss on Univision JV drop, satellite disconnections By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>