As Televisa’s Profits Decline, Broadcaster Sells Imagina Stake

What: Mexican broadcaster Televisa reported a net profit of MX $563 million pesos (US$28.6 million) in the fourth quarter of 2017, down 12.5 percent from the same period a year earlier.
Why it matters: Grupo Televisa, Mexico’s leading broadcaster, has struggled during the last year with increasing competition from OTT streaming, as well as advertising declines.

Mexican broadcaster Televisa has announced its quarterly results, with a net profit down 12.5 percent from a year ago. A fall in advertising appeared to be the main drag on the company’s results, said analyst Carlos de Legarreta of GBM. The company said it had shifted its advertising clients to a new pricing scheme based on TV show ratings, going into effect this year.

Televisa, which owns Mexico’s popular ‘Las Estrellas’ network and a sizeable stake in U.S. Spanish-language peer Univision, has faced increasing competition from OTT media services.

The company has made several modifications to its management team. Late last year, longtime Chief Executive Emilio Azcarraga announced he would step down, remaining as chairman of the board. Executive Vice President Alfonso de Angoitia and Executive Vice President Bernardo Gomez succeeded him as co-chief executives in January. The company also named a new Chief Content Officer.

Televisa has said that it will sell off assets as it focuses on content and distribution. Last week, the company announced that it had reached an agreement to sell its 19 percent stake in Spanish media group Imagina for EU $284 million  (US $350 million). This stake will be purchased by Chinese investors Orient Hontai Capital, who have also acquired 22.5% of Torreal and 12% of Mediavideo. Selling its participation of Imagina will reportedly help Televisa lower its net debt levels.