Background on Televisa
Televisa, a prominent Mexican media and communications company, has seen its stock prices soar more than 9% on the Bolsa Mexicana de Valores (BMV). This surge is primarily driven by optimistic expectations for better performance in its content business and a reduction in operational costs.
Stock Performance
Televisa’s shares have risen by 9.71%, trading at MXN 10.06 per unit, marking its highest increase since July 30 when it surged by 12.35%.
Looking ahead, Televisa’s stocks are projected to yield a return of 45.44% by 2025.
Mixed Financial Results
Despite missing revenue targets and reporting higher-than-expected losses in its recent report, Televisa has received a positive response due to continuous improvements in margins.
- JPMorgan Upgrade: The investment bank improved Televisa’s rating, citing the strong performance of TelevisaUnivision.
- GBM Research Analysis: The research firm stated that Televisa reported neutral third-quarter results, slightly above expectations.
However, the company’s revenue dropped by 4.8%, and EBITDA declined by 0.7% year-over-year. Nonetheless, the profitability improved by approximately 160 basis points annually, driven by efficiency measures and cost control.
Moreover, Televisa has reported two consecutive quarters of growth in broadband subscribers, indicating stability in Izzi while Sky has experienced a consistent loss of subscribers.
Key Questions and Answers
- Q: Why are Televisa’s shares rising on the BMV? A: The surge is primarily due to optimistic expectations for better performance in Televisa’s content business and a reduction in operational costs.
- Q: What were Televisa’s financial results for the third quarter? A: The company missed revenue targets and reported higher-than-expected losses. However, there were improvements in margins driven by efficiency measures and cost control.
- Q: How have Televisa’s subscribers fared in recent quarters? A: Televisa has reported two consecutive quarters of growth in broadband subscribers, indicating stability in Izzi. Meanwhile, Sky has experienced a consistent loss of subscribers.
