Driven by strong growth in its pay-TV services,
Grupo Televisa S.A.B.
) handily beat the Zacks Consensus Estimates in the fourth
quarter of 2012. Net income was approximately $241 million, up
20.1% year over year. The annualized upsurge primarily resulted
from an increase in the top line and favorable movement of the
foreign exchange rate. Earnings per Global Depository Shares were
42 cents, well above the Zacks Consensus Estimate of 39
Quarterly consolidated net revenue of around $1,536 million
imroved 8.2% over the prior-year quarter easily beat the Zacks
Consensus Estimate of $1518 million. All 5 business segments of
Grupo Televisa witnessed considerable sales growth. Televisa
currently has a Zacks Rank #3 (Hold).
Gross margin was 55.4% compared with 55.8% in the year-ago
quarter. Consolidated operating income was $413.1 million, up
3.5% from the prior-year quarter. Operating margin was 26.9%
compared with 28.1% in the year-ago quarter.
Capital expenditure during 2012 was $881.1 million. At
year-end 2012, Televisa had approximately $1,892 million in cash
and marketable securities and $4,112.1 million in debt
outstanding compared with $1,549.9 million of cash and marketable
securities and $4,059.1 million outstanding debt at the end of
2011. At the end of 2012, debt-to-capitalization ratio was around
0.43 compared with 0.49 at the end of 2011.
Quarterly total revenue was $793 million, up 4.9% year over
year. Operating profit was $373.1 million, up 0.3% year over
year, and operating margin was 47% compared with 49.2% in the
year-ago quarter. Full-year 2012 royalty from Univision was
$247.6 million, up 10.1% year over year.
Within this segment, Advertising revenue was $598.8 million,
up 3.6% year over year. Network Subscription revenue was $63.6
million, up 17.3% year over year. Licensing and Syndication
revenue was $130.6 million, up 5.5% year over
Quarterly revenue was $77.6 million, up 2.6% year over year.
Operating profit was $10.5 million, down 15.3% year over year,
and operating margin was 13.6% compared with 16.4% in the
Quarterly revenue came in at $295.7 million, up 19.2% year
over year. Operating profit was $124.5 million, up 13.8% year
over year. Quarterly operating margin was 42.1% compared with
44.1% in the year-ago quarter.
Cable and Telecom Segment
Quarterly revenue was $313.3 million, up 9.8% year over year.
Operating profit was $122.5 million, up 12.7% year over year.
Operating margin came in at 39.1% compared with 38.1% in the
Other Businesses Segment
Quarterly revenue was $82.3 million, up 3.1% year over year.
Operating income was $1.2 million compared with an operating loss
of $68.2 million in the year-ago quarter. Operating margin was
1.4% compared with (8.5%) in the year-ago quarter.
As of Dec 31, 2012, Televisa had 2,308,794 Video subscribers;
1,306,104 Internet Broadband subscribers; and 754,302 Telephony
subscribers, which together constitutes 4,369,200 revenue
generating units (RGU) in the Cable and Telecom segment. The
company also had 5,153,445 net active Satellite TV subscribers
including 164,669 commercial subscribers. These figures were up
28.6% and 4.5% year over year, respectively. In the reported
quarter, Sky segment added 270,000 net active subscribers.
Televisa is on the verge of entering into the lucrative
Mexican wireless market through its partnership with Grupo
Iusacell. Earlier, in 2010, Televisa abandoned its wireless
venture with Nextel de Mexico, a subsidiary of
NII Holdings Inc.
(NIHD) due to prolonged legal battles.
The Mexican wireless market is highly monopolistic. Telcel, a
America Movil SAB
(AMX), controls over 70% of the market,
(TEF) controls more than 22%, and Iusacell controls hardly 5%.
Undoubtedly, a foothold in the lucrative wireless market will
make Televisa a highly integrated broadcasting and telecom
operator in Mexico.
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