Grupo Televisa S.A.B.
) reported disappointing financial results for the first quarter
of 2014. Net income was approximately $66 million, down 20.2%
year over year. Earnings per Global Depository Shares (GDS) were
11 cents, missing the Zacks Consensus Estimate of 13 cents.
Quarterly consolidated net revenue of around $1,303.4 million
improved 9% over the prior-year quarter. However, the figure
significantly fell short of the Zacks Consensus Estimate of
Gross margin came in at 42.5% compared with 42.1% in the
year-ago quarter. Consolidated operating income was $229.7
million, down 12% from the prior-year quarter. Operating margin
was 17.6% compared with 21.9% in the year-ago quarter. Capital
expenditure, during the reported quarter, was approximately $14.7
At the end of first-quarter 2014, Televisa had
approximately $1,707.7 million in cash and marketable securities
and $4,617.4 million of outstanding debt compared with $1,572
million of cash and marketable securities and $4,624.3 million of
outstanding debt at the end of 2013. At the end of the reported
quarter, the debt-to-capitalization ratio was around 0.43, in
line with the end 2013 level.
Quarterly total revenue came in at $511.4 million, up 4.6%
year over year. Operating profit was $184.8 million, up 0.9% year
over year, while operating margin was 36.1% compared with 37.5%
in the year-ago quarter. Quarterly royalty from Univision was a
record-high $64.8 million, up 13.1% year over year.
Within this segment, Advertising revenues totaled $350.6
million, up 8.2% year over year. Network Subscription revenues
were $53 million, reflecting a decrease of 21% from the year-ago
quarter. Licensing and Syndication revenues were $107.9 million,
up 10.4% year over year.
Quarterly revenues came in at $323.3 million, up 9.7% year
over year. Operating profit was $150 million, up 10.1% year over
year. Quarterly operating margin was 46.4% compared with 46.2% in
the year-ago quarter.
Quarterly revenues were $354.3 million, up 15.7% year over
year. Operating profit was $125.3 million, up 14.8% year over
year. Operating margin came in at 35.4% compared with 35.7% in
the year-ago quarter.
Other Businesses Segment
Quarterly revenues were $137.6 million, up 7.6% year over
year. Operating income stood at $8.1 million, down 5.6% year over
year. Operating margin was 5.9% as against 6.7% in the year-ago
As of Mar 31, 2014, Televisa had 2,518,730 Video subscribers;
1,750,398 Internet Broadband subscribers; and 942,879 Telephony
subscribers, which together constitutes 5,212,007 revenue
generating units (RGU) in the Telecommunications segment.
The company also had 6,154,290 net active Satellite TV
subscribers, up 13.7% year over year. In the reported quarter,
the Sky segment added 138,815 net active subscribers.
Other Stocks to Consider
Televisa currently has a Zacks Rank #3 (Hold). However, there
are other stocks which are performing well in this industry. Some
of them include
Entravision Communications Corp.
Phoenix New Media Ltd.
LIN Media LLC.
). All three stocks currently carry a Zacks Rank #2 (Buy).
ENTRAVISION COM (EVC): Free Stock Analysis
PHOENIX NEW MED (FENG): Free Stock Analysis
LIN MEDIA LLC (LIN): Free Stock Analysis
GRUPO TELEVISA (TV): Free Stock Analysis
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