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Televisa Tops Q3 Earnings, Rev - Analyst Blog

Posted
10/28/2013 10:35:00 AM
By: Zacks.com
Referenced Stocks:FENG;LIN;NXST;TV

Grupo Televisa S.A.B. ( TV ) reported better-than-expected financial results for the third quarter of 2013. Net income was approximately $204 million, down 18.4% year over year. However, earnings per Global Depository Shares (GDS) were 36 cents, well above the Zacks Consensus Estimate of 34 cents. Quarterly consolidated net revenue of around $1,454 million improved 8.1% over the prior-year quarter and easily outpaced the Zacks Consensus Estimate of $1,420 million.

Gross margin was 48.3% compared with 48.2% in the year-ago quarter. Consolidated operating income was $393.5 million, up 4.3% from the prior-year quarter. Operating margin was 27% compared with 28% in the year-ago quarter. Capital expenditure, during the reported quarter, was approximately $22.6 million.

 At the end of third-quarter 2013, Televisa had approximately $1,422.8 million in cash and marketable securities and $4,669.2 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.

Content Segment

Quarterly total revenue was $681.5 million, up 5.3% year over year. Operating profit was $342.2 million, up 4.4% year over year, and operating margin was 50.2% compared with 50.6% in the year-ago quarter. Quarterly royalty from Univision was a record-high $71.4 million, up 15.2% year over year.  

Within this segment, Advertising revenues were $498.1 million, up 5% year over year. Network Subscription revenues were $67.6 million, reflecting a rise of 6.2% from the year-ago quarter. Licensing and Syndication revenues were $115.9 million, up 6.1% year over year.  

Publishing Segment

Quarterly revenues were $60.9 million, down 5.2% year over year. Operating profit was $5 million, down 47.4% year over year and operating margin was 8.3% compared with 14.9% in the year-ago quarter.

Sky Segment

Quarterly revenues came in at $317 million, up 9.9% year over year. Operating profit was $147.5 million, up 11.1% year over year. Quarterly operating margin was 46.5% compared with 46% in the year-ago quarter.

Cable and Telecom Segment

Quarterly revenues were $339 million, up 12.4% year over year. Operating profit was $114.6 million, up 3.4% year over year. Operating margin came in at 33.8% compared with 36.8% in the year-ago quarter.

Other Businesses Segment

Quarterly revenues were $84.1 million, up 18% year over year. Operating income was $7.6 million, up a whopping 724.4% year over year. Operating margin was 9% as against 1.3% in the year-ago quarter.

Subscriber Statistics

As of Sep 30, 2013, Televisa had 2,464,116 Video subscribers; 1,566,660 Internet Broadband subscribers; and 871,665 Telephony subscribers, which together constitutes 4,902,441 revenue generating units (RGU) in the Cable and Telecom segment. The company also had 5,878,925 net active Satellite TV subscribers, up 20.4% year over year. In the reported quarter, the Sky segment added 232,671 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 Nexstar Broadcasting Group Inc. ( NXST ), Phoenix New Media Ltd. ( FENG ) and LIN Media LLC. ( LIN ). All three stocks currently carry a Zacks Rank #2 (Buy).



PHOENIX NEW MED (FENG): Free Stock Analysis Report

LIN MEDIA LLC (LIN): Free Stock Analysis Report

NEXSTAR BRDCSTG (NXST): Free Stock Analysis Report

GRUPO TELEVISA (TV): Free Stock Analysis Report

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