Grupo Televisa: A Good Time To Look South For Opportunity
Wed, Mar. 30, 6:35 PM
- JPMorgan has downgraded Grupo Televisa (NYSE:TV) amid rising costs, but notes it still faces a better regulatory environment than rival America Movil (NYSE:AMX).
- The firm lowered its rating on TV to Neutral from Overweight, and trimmed its price target from $31 to $30, just 6.8% above today's close of $28.09.
- Despite improvements in ad revenues, the company's content EBITDA is expected to drop 6%, JPMorgan says, with incremental costs from streaming service Blim. Analyst Andre Baggio expects a drag of five percentage points to segment margins from content spending.
- But ad revenues should stabilize after dropping 10% last year, and: "We expect cable to continue to gain share from AMX in broadband, due to superior offers at competitive prices. Also, DTH and cable should benefit from the analog switch-off, which is boosting demand."
Fri, Feb. 26, 1:38 PM
- After posting a quarter where profits slipped 37%, Grupo Televisa (NYSE:TV) held an earnings call this morning where its executive VP said capital spending should be maintained in the coming year.
- ADRs are down 0.5% today in the wake of yesterday's earnings.
- The company spent $1.6B in 2015 with the bulk of that going to telecoms -- its fastest-growing division, with operating income up more than 20%.
- "For 2016 we estimate that capex will be similar to that of 2015, both in terms of magnitude and of composition," said executive VP Alfonso Angoitia.
- The company doesn't have plans, however, to re-enter the mobile market after selling out Iusacell in 2014 (an interest that eventually went to AT&T).
- While telecom is growing quickly at Televisa, ad sales weakness pressed results for Q4.
Thu, Feb. 25, 7:15 PM
- Grupo Televisa (TV +1%) saw profits fall 37% in its fourth quarter as higher costs and ad weakness weighed on earnings a quarter after the company had returned to profitability.
- Net profit came to 1.571B pesos (about $91M) as ad sales fell 11%.
- The company's still losing viewers to alternatives to its free-to-air content, and says it's restructuring its pricing policies in adjustment. It took a hit in being forced by regulators to allow pay-TV rivals to air its free-to-air content (Televisa has more than a 70% share of satellite TV customers and a majority of cable customers) and narrowly escaped even tougher regulations in the fall.
- Meanwhile, its telecoms side (including pay TV) is the fastest-growing unit, with operating income up more than 20%.
- Previously: Acquisitions push Grupo Televisa back into profits (Oct. 22 2015)
Nov. 17, 2015, 6:14 PM
- Grupo Televisa (NYSE:TV) says it's planning to issue as much as $1.2B in bonds over the coming 90 days -- if market conditions permit.
- In its most recent report, Televisa noted total debt of $5.66B, with a debt/equity ratio of about 100 and debt/assets around 37.
- The company says it would use proceeds to fund capex for cable TV and telecom.
- Televisa ADRs are down 17% YTD, but are up 11.2% from a 52-week low of $25.44 touched on Oct. 2.
Oct. 22, 2015, 7:34 PM
- Grupo Televisa (TV +1.8%) returned to profit in the third quarter as new pay-TV acquisitions made up for a decline in ad revenues.
- The company posted earnings of 6.55B pesos (about $387M), vs. a loss last year in a quarter affected by the writedown of its (sold) interest in Iusacell.
- Revenues overall were up 12.2% to 22.26B pesos. The addition of revenue from the past year's acquisitions of Cablecom and Telecable mitigated a 9% drop in ad revenues.
- Its pay TV business just avoided being hit with more restrictions in the now more heavily regulated Mexican market. Last year Grupo Televisa's dominance in the free-to-air market means it had to allow pay-TV rivals to show its free content.
Jul. 7, 2015, 9:38 AM
- Grupo Televisa (NYSE:TV) is down 6.5% out of the open as JPMorgan Chase downgrades the stock to Neutral.
- The firm had upgraded Televisa from Neutral to Overweight on May 7, with a $42 target. Shares are trading currently at $35.84.
- Recently, Citigroup had upgrades shares to Buy as well. A consensus price target of $40.50 implies more than 10% upside at the moment.
- Previously: As Univision pursues IPO, Televisa firms its partnership (Jul. 02 2015)
Jul. 2, 2015, 1:17 PM
- Along with Univision's announcement of an IPO filing today, Grupo Televisa (TV +0.9%) -- which has a longstanding working relationship with Univision -- says the two companies have extended their program licensing agreement until at least 2030.
- The move is subject to Univision completing its IPO with no change of control. It also changes the royalty rate on Univision's Spanish-language revenue to 11.84%, from 11.91%, and increasing to 16.13% on Jan. 1, 2018, with further increases baked in.
- Univision has exclusive U.S. broadcast and digital rights to Televisa content. Televisa has about a 36% economic interest in Univision, and Univision says that Televisa will hold about 22% of voting rights to Univision common stock.
- Televisa got $313.7M in royalties from Univision in 2014.
May 1, 2015, 9:54 PM
- With plans (but not detailed plans, yet) to go public, Spanish-language broadcaster Univision swung to a $139.7M net loss in Q1, from a year-ago profit of $6.2M.
- The company hired Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) to lead an IPO that it hopes will raise $1B, which would value the broadcaster around $20B.
- Revenues were up 0.6% to $624.7M. Univision blamed its loss on termination fees that it owed to the private-equity owners of its parent, Univision Communications, as well as to Grupo Televisa (NYSE:TV).
- Televisa used convertible debt to build a 38% stake in Univision and has the right to take that to 40%, so it is set to draw a payoff from Univision's eventual offering. It also drew a record $314M rebroadcasting royalty from Univision in 2014.
Mar. 12, 2015, 10:16 PM
- Following on news that Univision is pursuing an IPO that could raise $1B, Grupo Televisa (NYSE:TV) is set to gain nicely from that transaction, Zacks notes.
- Televisa bought into an effective 35% stake mainly through convertible debt, and it's now at 38%, the firm says. Per the 2012 purchase, Televisa has the right to take the stake to 40%.
- Televisa earns royalties for rebroadcast of its content, and in 2014 its royalty from Univision was up almost 15% to a record $314M.
- A $1B raise for Univision would value the firm at $20B including debt.
Jan. 9, 2015, 5:00 AM
- Mexican broadcaster Grupo Televisa (NYSE:TV) has completed the sale of its 50% stake in mobile operator Iusacell to JV partner Grupo Salinas, clearing the way for AT&T (NYSE:T) to acquire the cellphone company.
- Televisa used some of the proceeds from the $717M sale to buy Mexican cable company Cablevision Red, a regional operator with around 650K subscriptions, for about 3B pesos ($204M).
- Previously: AT&T receives approval for Iusacell deal (Dec. 22 2014)
Sep. 11, 2014, 6:43 AM
Aug. 15, 2014, 6:53 AM
Aug. 1, 2014, 11:22 AM
- Morgan Stanley removes Petrobras (PBR -1.4%) from its newest focus list of 10 high-conviction stocks in Latin America, believing the market has priced in too much optimism for political change.
- The firm says its recent survey suggests both the stock and the Bovespa index are pricing in a 52% chance of macro policy change, so the risk/reward of the stock is similar to the market benchmark - i.e., no relative performance leverage to the upside.
- Stocks on the list include Gerdau (NYSE:GGB),Grupo Televisa (NYSE:TV), Ambev (NYSE:ABEV), Embraer (NYSE:ERJ), Cemex (NYSE:CX) and Copa Holdings (NYSE:CPA).
Jun. 23, 2014, 3:05 PM
- ESPN (DIS) says viewership for the USA-Portugal World Cup soccer match yesterday peaked at 22.96M to make the game the most-watched soccer event ever in the U.S.
- Overall, the Nielsen ratings are up over 30% for ABC/ESPN from the 2010 World Cup - despite those viewers utilizing tablets, computers, and phones not being counted as part of the tally.
- What to watch: The ratings bonanza for the World Cup is expected to give a lift to ESPN's future soccer coverage including MLS. The timing is also good for Univision (TV) which has reported stellar World Cup coverage ratings. Univision is the topic of buyout speculation with both CBS (CBS) and Time Warner (TWX) viewed to be in the mix.
Jun. 16, 2014, 9:00 AM
Apr. 29, 2014, 1:47 PM
- Grupo Televisa (TV +1.9%) is in negotiations with Netflix (NFLX +1.9%) to create original content for the streaming service, according to company execs.
- The two companies already work together under a content licensing deal.
- Previous on Netflix's Spanish content plans: Netflix to launch Nosotrso los Nobles, CEO Reed Hastings 'confident' on Latin America growth
Grupo Televisa SAB engages in the providing media products and services. The company operates through the following segments: Content, Publishing, Sky, Cable & Telecom and Other Businesses. The content segment includes Advertising, Network subscription Revenue and Licensing and Syndication. The... More
Industry: Broadcasting - TV
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