Televisa Earnings up 4.3%, Publishing up 6.4%

Grupo Televisa’s net sales in Q3 increased by 8.9% to $10.4 billion pesos ($947 million).  Publishing operation buoyed by acquisition of Argentina’s Editorial Atlantida.

According to Morgan Stanley’s analyst Vera Rossi, EBITDA  (Earnings Before Interest Depreciation and Amortization) margins of 44.5% came in “well above our forecast of 40.7% but slightly down from 45.1% a year ago. Television broadcasting EBITDA of P$2.78 billion came in 3.6% above our estimates and up 5.9% year-over-year. However, TV is also lowering guidance of EBITDA margins to “close to 50%” from “to exceed 50%.” The higher than expected consolidated EBITDA was also helped by the strong performance of pay TV networks and publishing.”

Publishing Sales increased to 811.8 million Mexican pesos (approximately $74 million).

Publishing operating revenues during Q3 increased to 155.5 million Mexican pesos (approximately $14 million dollars) compared to $146.2 million during the same quarter last year.

Third quarter sales of the Publishing Unit increased 15.3% to Ps 811.8 million, compared with Ps.703.8 million in third quarter 2006. This increase reflects a greater number of advertising pages sold as well as higher revenues from magazine circulation in Mexico and abroad.

Additionally, as of September 1, 2007, Televisa began consolidating in its financial statements the operations of Editorial Atlántida, which represented incremental sales of Ps.43.3 million. These results were driven by higher sales that were partially offset by higher cost of sales and operating expenses, which reflected the consolidation of Editorial Atlántida.

Related Article: Grupo Televisa acquires Argentina’s Editorial Atlantida