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Televisa Beats on 2Q Earnings and Rev - Analyst Blog
7/10/2013 9:06:00 AM
Grupo Televisa S.A.B. ( TV ) reported better-than-expected financial results for the second quarter of 2013, beating the Zacks Consensus Estimate. Net income was approximately $169 million, up 23.9% year over year. Earnings per Global Depository Shares were 30 cents, well above the Zacks Consensus Estimate of 26 cents. Quarterly consolidated net revenue of around $1,380.2 million improved 6.4% over the prior-year quarter and also surpassed the Zacks Consensus Estimate of $1,376 million.
Gross margin was 47.8% compared with 49.3% in the year-ago quarter. Consolidated operating income was $378.5 million, up 6.1% from the prior-year quarter. Operating margin was 27.4% compared with 27.5% in the year-ago quarter. Capital expenditure, during the reported quarter, was $16 million.
At the end of the second-quarter 2013, Televisa had approximately $2,145.3 million in cash and marketable securities and $4,588.1 million of outstanding debt compared with $1,892 million of cash and marketable securities and $4,112.1 million of outstanding debt at the end of 2012. At the end of the reported quarter, the debt-to-capitalization ratio was around 0.45 compared with 0.43 at the end of 2012.
Quarterly total revenue was $629.7 million, up 5.1% year over year. Operating profit was $310.7 million, up 7.6% year over year, and operating margin was 49.3% compared with 48.2% in the year-ago quarter. Quarterly royalty from Univision was a record-high $70.5 million, up 9.9% year over year.
Within this segment, Advertising revenues were $451.6 million, up 6.2% year over year. Network Subscription revenues were $67.4 million, up 9.5% year over year. Licensing and Syndication revenues were $110.7 million, down 1.7% year over year.
Quarterly revenues were $64.1 million, down 9.7% year over year. Operating profit was $9 million, down 23.9% year over year, and operating margin was 14.1% compared with 16.7% in the year-ago quarter.
Quarterly revenues came in at $305.7 million, up 12.8% year over year. Operating profit was $143.7 million, up 12.8% year over year. Quarterly operating margin was 47% compared with 47.1% in the year-ago quarter.
Cable and Telecom Segment
Quarterly revenues were $320 million, up 8.2% year over year. Operating profit was $120.6 million, up 7.2% year over year. Operating margin came in at 37.7% compared with 38% in the year-ago quarter.
Other Businesses Segment
Quarterly revenues were $86.2 million, up 1.2% year over year. Operating income was $6.8 million, up 75.6% year over year. Operating margin was 7.9% compared with 4.6% in the year-ago quarter.
As of Jun 30, 2013, Televisa had 2,405,725 Video subscribers; 1,456,807 Internet Broadband subscribers; and 812,497 Telephony subscribers, which together constitutes 4,675,029 revenue generating units (RGU) in the Cable and Telecom segment. The company also had 5,646,254 net active Satellite TV subscribers, up 24.1% year over year. In the reported quarter, the Sky segment added 233,242 net active subscribers.
Other Stocks to Consider
Televisa currently has a Zacks Rank #3 (Hold). However, there are other stocks, which are doing well in this industry. Some of them include ValueVision Media Inc. ( VVTV ), Multiband Corp. ( MBND ) and LIN TV Corp. ( TVL ). All these stocks currently carry a Zacks Rank #1 (Strong Buy).
MULTIBAND CP (MBND): Free Stock Analysis Report
GRUPO TELEVISA (TV): Free Stock Analysis Report
LIN TV CORP -A (TVL): Free Stock Analysis Report
VALUEVISION CLA (VVTV): Free Stock Analysis Report
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