Report predicts less advertising in the Mexican market, which would affect TV Azteca sales

TV Azteca’s sales in 2013 are projected to see a slight increase of 0.1%, in addition to pre-tax earnings, write-offs and depreciation (Ebitda) of 0% due to weak growth (0.2%) in advertising sales as a result of the industry’s complex environment, says Monex Grupo Financiero.

The TV network’s operating margins and EBITDA will stay unchanged at 32.4% and 36.8%, respectively, as a result of higher costs and sales expenses compared to the company’s total revenues.

Valeria Romo, securities analyst for telecommunications and airports at Monex, notes in a press release that TV Azteca is Mexico’s second-largest television company, with a 32% market share.

The company operates three television channels aimed at different segments of the population: Azteca 7 targets middle and upper-class young people, Azteca 13 is directed at the whole family, and Proyecto 40 targets viewers interested in news and culture.
"Azteca’s strategy in the Mexican market centers on a multi-functional format that uses content production to generate value relationships with viewers and a win-win relationship with companies that place ads on its channels," says Romo.

Romo believes that Azteca’s value proposition is directed toward generating virtuous relationships between viewers and content, in order to provide advertisers with attractive and therefore more profitable ad space.

According to the report, the company has about 400 national advertisers and over 6,000 local ones, with its 10 largest advertisers representing 24% of the company’s total sales.

Translation: Candice Carmel

Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

#Portada16: Are Multicultural Media Buying Agencies Necessary?

#Portada16: Are Multicultural Media Buying Agencies Necessary?

One of the key highlights of the many sessions of #Portada16, co-produced with MediaPost last week, was the panel "Do Multicultural Media Buying Agencies have a Reason to Exist? The panelists argued passionately on a topic that is at the very crux of Multicultural Marketing and Media.


Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate, the next generation global content leader, and Univision Communications Inc. are teaming to launch a premium subscription video on demand (SVOD) service for the booming Hispanic movie-going audience in the U.S.The new premium on demand movie service will tap base of more than 50 million hispanic consumers in the U.S.


IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid have launched a partnership and set of products that could make waves in the video advertising world.