MEXICO CITY -- The contrasting fortunes of Mexico's top media players were clearly reflecting in their second-quarter results, as Televisa reported a record cash flow margin of 23.8% while TV Azteca saw most indicators plummet.

Televisa has been making the best of a weak national ad market, its revenues dipping just 6.6% on the quarter vs. a 19% drop for TV Azteca.

Most impressive, analysts said, were the continued results of the former's 2-year-old cost-cutting plan, Televisa 2000, which has borne fruit over the last three quarters.

Televisa's cost of sales decreased 12% year-on-year, while administrative expenses were down a whopping 41.3%.

Tables turn

"In terrestrial TV, Televisa now has a higher margin than Azteca, so the shoe's truly on the other foot," said Chris Recouso of Bear Stearns in New York, referring to Azteca's traditional boast of operating more efficiently than its bigger rival.

As for cash flow, Televisa registered a 46.4% quarterly increase vs. a 54% sag for Azteca.

But Pablo Riveroll of Merrill Lynch in Mexico City said Azteca appears to have touched bottom, with a slight ratings rebound and expectations of improved sales going forward.

Subsids suffering

Further, Televisa's subsidiaries -- notably, publishing -- are going through lean times; as a result of the company's efficiency drive, such divisions may no longer piggyback ad sales packages made by the core broadcast division.

Rumors have lately surfaced that editorial division chief Laura Laviada, a cousin of Televisa CEO Emilio Azcarraga Jean, may be on the way out, though it remains unclear whether or not she would occupy another post in the company.

Year-to-date, Televisa boasts operating income of around $135 million, a 110% annual increase, on revenue of $825 million, while Azteca has generated operating income of $24 million on sales of $205 million.