Televista 4Q net loss MXN7.68B vs. loss MXN9.86B y/y
TL;DR
Televisa reported a narrowed net loss of 8.66 billion pesos in Q4 2023, down from 12.19 billion pesos a year earlier, despite a 3.8% revenue decline. The company faces challenges with subscriber losses in its SKY unit and ongoing restructuring efforts, including a spinoff that boosted investor interest.
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Televista 4Q net loss MXN7.68B vs. loss MXN9.86B y/y
Televisa Narrows Fourth-Quarter Net Loss Amid Revenue Declines
Mexico’s largest broadcaster, Televisa (TLEVISACPO.MX), reported a net loss of 8.66 billion pesos ($510.5 million) for the fourth quarter of 2023, an improvement from a 12.19 billion peso loss in the same period a year earlier. The results reflect ongoing challenges in its satellite TV unit, SKY, which saw 160,400 disconnections and a 15.3% revenue decline. Overall, the company’s revenues fell 3.8% year-over-year to 18.41 billion pesos, slightly above analysts’ expectations of 18.13 billion pesos.
Operating profits decreased by 6.0%, driven by weaker performance across key segments. While Televisa’s cable division added 9,600 connections in the quarter, revenue from this segment declined 1.8%. The broadcaster also reported a full-year 2023 net loss of 10.24 billion pesos, marking its second consecutive year of annual losses.
Televisa’s recent spinoff of its sports and gaming subsidiary, Ollamani (AGUILASCPO.MX), has drawn investor attention. The company’s shares rose following Ollamani’s strong debut on the Mexican stock market, with some analysts suggesting the move could enhance Televisa’s prospects for a potential merger with Megacable (MEGACPO.MX).
The company’s joint venture with Univision, TelevisaUnivision, also reported narrowed losses in Q4 2023 compared to the prior-year period. Despite these improvements, Televisa continues to grapple with subscriber attrition and revenue pressures, particularly in its SKY division.
For investors, the results underscore the broadcaster’s strategic focus on restructuring and cost optimization amid a competitive media landscape. Further updates on subscriber trends and merger discussions may influence market sentiment in the coming quarters.
Reuters, Feb. 22, 2024.
Yahoo Finance, Feb. 22, 2024.
