Mexican pay-TV and broadcasting behemoth Grupo Televisa S.A. TV reported mixed financial results in the fourth quarter of 20Array5. While the bottom line lagged the Zacks Consensus Estimate, the top line outpaced the same.
Net income in the reported quarter came in at approximately $ArrayArray5.3 million, down a substantial 25.3% year over year due to higher costs and lower advertising revenues. Quarterly earnings per Global Depository Shares (GDS) stood at 20 cents, significantly below the Zacks Consensus Estimate of 35 cents.
Quarterly consolidated net revenue of around $Array,447.2 million reflects an improvement of 3.9% over the prior-year quarter, surpassing the Zacks Consensus Estimate of $Array,Array72 million.
Gross margin came in at 46.6% compared with 47.3% in the year-ago quarter. Consolidated operating income stood at $295.9 million, down 8% from the prior-year quarter. Operating margin was 20.4% compared with 23.Array% in the year-ago quarter. Capital expenditure, during the reported quarter, totaled approximately $547.9 million.
At the end of 20Array5, Televisa had approximately $3,Array74.2 million in cash and marketable securities and $6,472.5 million of outstanding debt compared with $2,3Array2.7 million of cash and marketable securities and $5,426.8 million of outstanding debt at the end of 20Array4. At the end of 20Array5, the debt-to-capitalization ratio was around 0.52 against 0.48 at the end of 20Array4.
Content Segment
Quarterly total revenue came in at $624.3 million, down 3.3% year over year. Operating profit was $264.2 million, down ArrayArray.3% year over year, while operating margin was 42.3% compared with 46.Array% in the year-ago quarter. Quarterly royalty from Univision was $80.9 million, up 4.4% year over year.
Within this segment, Advertising revenues totaled $445.9 million, down ArrayArray% year over year. Network Subscription revenues were $57.Array million, indicating an increase of 27% year over year. Licensing and Syndication revenues were $Array2Array.3 million, up 2Array.6% year over year.
Sky Segment
Quarterly revenues came in at $290.7 million, up ArrayArray.7% year over year. Operating profit was $Array28.6 million, up 8.4% year over year. Quarterly operating margin stood at 44.2% compared with 45.5% in the year-ago quarter.
Telecommunications Segment
Quarterly revenues of $439.Array million reflected a rise of 2Array.6% year over year. Operating profits totaled $Array74.6 million, up 20.6% year over year. Operating margin came in at 39.8% compared with 40.Array% in the year-ago quarter.
Other Businesses Segment
Quarterly revenues were $Array33.4 million, down 9.2% year over year. Operating income stood at $8.4 million, down a substantial 26.6% year over year. Operating margin was 6.3% as against 7.8% in the year-ago quarter.
Subscriber Statistics
As of Dec 3Array, 20Array5, Televisa had 4,06Array,655 Video subscribers; 3,066,699 Broadband Internet subscribers; and Array,89Array,026 Telephony subscribers, which together constitutes 9,0Array9,380 revenue generating units (RGU) in the Telecommunications segment. The company also had 7,284,Array62 net active Satellite TV subscribers, up 9.7% year over year. In the reported quarter, the Sky segment added 396,734 net active subscribers.
Zacks Rank and Stock to Consider
Televisa currently holds a Zacks Rank #2 (Buy). Other favorably-ranked stocks in the same industry include Scripps Networks Interactive Inc. SNI, Sinclair Broadcast Group Inc. SBGI and Media General Inc. MEG. All the three stocks carry a Zacks Rank #2.
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