MEXICO CITY, Oct 21 (Reuters) - Grupo Televisa
, Mexico's largest broadcaster, reported on
Thursday a 77.3% drop in net profit in the third quarter
compared with the same period a year earlier.
The company posted third-quarter net profit of 760.6 million
pesos ($36.8 million) compared with 3.350 billion pesos in the
same period last year, falling short of a Barclays estimate of
933 million pesos.
Televisa said its bottom line took a hit from the Mexican
peso's 3.7% depreciation versus the U.S. dollar during the
Revenue grew 9.1% to 26.128 billion pesos, from 23.943
billion pesos in the year-earlier period. That was above a
Barclays prediction of 24.5 billion pesos.
Televisa operates several television channels along with
other media including a cable broadband and direct-to-home
satellite pay television. In recent years it has been under
pressure to meet the challenge of streaming services which have
drawn away viewers.
However, advertising revenues jumped in the quarter, up 25%
over the previous three month period, and 16% over the same
period in 2020, led by a recovery in private sector advertising
To battle rivals such as Netflix, Televisa and
leading U.S. Spanish-language broadcaster Univision announced in
April they would merge content through the creation of a new
Spanish language media company, in which Televisa will be the
The new firm, called Televisa Univision, will launch a
global streaming platform with content from both.
Mexico's telecommunications regulator, IFT, last month
authorized the tie-up. The transaction is expected to close this
year, Televisa said.
In September, Televisa said the sale of its 40% stake in
Ocesa Entertainment to U.S. firm Live Nation would move
forward, a move that would support Televisa's deleveraging
efforts, according to S&P Global Ratings.
($1= 20.642 pesos at end-September)
(Reporting by Noe Torres and Anthony Esposito in Mexico City;
Editing by Daina Beth Solomon, Matthew Lewis and Chris Reese)