Mexico’s Televisa swings to net loss in third quarter 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/File photo</span><br />
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<p>By Cassandra Garrison and Brendan O’Boyle</p>
<p>MEXICO CITY (Reuters) -Mexico’s largest broadcaster Televisa on Thursday posted a 4.9% dip in third-quarter revenues that swung its earnings into a net loss driven down by SKY, its satellite television unit.</p>
<p>Televisa, whose share price suffered last week as traders predicted more troubles for its cable and satellite units, reported a net loss of 918.5 million pesos ($52.7 million), compared to a profit of 1.12 billion pesos a year earlier. </p>
<p>Its revenues slipped to 18.32 billion pesos, falling short of an average forecast of 18.36 billion pesos, according to four analysts polled by LSEG. Operating profits were dragged down 8.8%.</p>
<p>SKY saw about 232,000 disconnections with a 13.8% dip in revenue. Televisa’s cable segment saw 737,000 disconnections between broadband and video subscribers and a revenue drop of 2.0%. </p>
<p>“We implemented a staff reduction plan with savings of around 12% of our payroll starting in the fourth quarter of 2023,” the firm said in its filing with the Mexican stock exchange. </p>
<p>J.P. Morgan called the company’s results “very weak” for the quarter. </p>
<p>“Corporate expenses weighed on results, hurt by severance costs in cable,” the bank said in an analyst note. </p>
<p>Televisa began posting hefty losses late last year but made a narrow comeback into profitability in the second quarter, though the steep slide still caused it to slash this year’s spending forecasts to $620 million. </p>
<p>Televisa’s participation in net profits from joint ventures increased 2.3% to 588.8 million pesos, driven by higher net income in the quarter from TelevisaUnivision, which launched the streaming service ViX+ aimed to compete with established rivals Netflix (NASDAQ:) and Amazon (NASDAQ:)’s Prime Video.</p>
<p>The company said in July it hoped to turn ViX+ profitable by the second half of 2024.</p>
<p>($1 = 17.4279 pesos at end-September)</p>
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