MEXICO CITY -- Grupo Televisa, Mexico's largest broadcaster, announced a solid fourth-quarter profit, turning around the substantial loss of a year ago and spotlighting the good health of the conglom's diversified operations.
For the quarter, Televisa reported earnings of 1.343 billion pesos ($121 million) compared to a loss of $88 million in the fourth quarter of 2002. The results beat analysts' expectations and come despite lethargic growth in most Mexican industries.
For the year, Televisa turned in profits of $325 million, more than quadruple its 2002 total of $69 million. The earnings came on revenues of $2.13 billion, up $103 million from a year earlier.
The more than $200 million quarterly profit hike was thanks to increased revenue, particularly in advertising sales, but also from better-than-expected performances from nearly all of the media giant's varied divisions, from radio to publishing to satellite TV.
Results from the magazine publishing division, which turned in a 37% increase in ad sales, were particularly encouraging.
Indeed, the only real weak point during the quarter, and, for that matter, the year, was Televisa's Cablevision unit.
The cabler and Internet service provider has suffered huge falloffs in subscribers over the past two years, much of which the company blames on rampant piracy.
Chief financial officer Alfonso de Angoitia said Televisa planned to invest $35 million-$40 million in Cablevision this year, a large portion of which would be devoted to enlarging its digital cable services, which are more difficult to pirate and are competitive with satellite TV.
Overall, said Angoitia, the company expects $110 million in capital expenditures in 2004.
Also looking ahead, the company warned that advertising sales this year could decline, particularly in the second quarter, which was a huge revenue generator over the past two years, thanks to nationwide congressional elections last July and the soccer World Cup in 2002. This year there is no similar ad-drawing event.
In 2006, however, the presidential elections and the soccer World Cup in Germany will coincide in June and July, promising an extremely strong quarter.
On the New York Stock Exchange Thursday, Televisa shares closed up $1.02, or 2.38%, to $43.90 per share.
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