Televisa Lags on Q1 Earnings and Revs - Analyst Blog

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Grupo Televisa S.A.B. ( TV ) 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 $1,449 million.

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 million.

 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.

Content Segment

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.  

Sky Segment

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.

Telecommunications Segment

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 quarter.

Subscriber Statistics

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. ( EVC ), Phoenix New Media Ltd. ( FENG ) and LIN Media LLC. ( LIN ). All three stocks currently carry a Zacks Rank #2 (Buy).



ENTRAVISION COM (EVC): Free Stock Analysis Report

PHOENIX NEW MED (FENG): Free Stock Analysis Report

LIN MEDIA LLC (LIN): Free Stock Analysis Report

GRUPO TELEVISA (TV): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: EVC , FENG , LIN , TV

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