Sunday, May 4, 2014

Televisa Beats on 2Q Earnings and Rev - Analyst Blog

5 Best Media Stocks To Own Right Now

Grupo Televisa S.A.B. (TV) reported better-than-expected financial results for the second quarter of 2013, beating the Zacks Consensus Estimate. Net income was approximately $169 million, up 23.9% year over year. Earnings per Global Depository Shares were 30 cents, well above the Zacks Consensus Estimate of 26 cents. Quarterly consolidated net revenue of around $1,380.2 million improved 6.4% over the prior-year quarter and also surpassed the Zacks Consensus Estimate of $1,376 million.

Gross margin was 47.8% compared with 49.3% in the year-ago quarter. Consolidated operating income was $378.5 million, up 6.1% from the prior-year quarter. Operating margin was 27.4% compared with 27.5% in the year-ago quarter. Capital expenditure, during the reported quarter, was $16 million.

At the end of the second-quarter 2013, Televisa had approximately $2,145.3 million in cash and marketable securities and $4,588.1 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 $629.7 million, up 5.1% year over year. Operating profit was $310.7 million, up 7.6% year over year, and operating margin was 49.3% compared with 48.2% in the year-ago quarter. Quarterly royalty from Univision was a record-high $70.5 million, up 9.9% year over year.

Within this segment, Advertising revenues were $451.6 million, up 6.2% year over year. Network Subscription revenues were $67.4 million, up 9.5% year over year. Licensing and Syndication revenues were $110.7 million, down 1.7% year over year.

Publishing Segment

Quarterly revenues were $64.1 million, down 9.7% year over year. Operating profit w! as $9 million, down 23.9% year over year, and operating margin was 14.1% compared with 16.7% in the year-ago quarter.

Sky Segment

Quarterly revenues came in at $305.7 million, up 12.8% year over year. Operating profit was $143.7 million, up 12.8% year over year. Quarterly operating margin was 47% compared with 47.1% in the year-ago quarter.

Cable and Telecom Segment

Quarterly revenues were $320 million, up 8.2% year over year. Operating profit was $120.6 million, up 7.2% year over year. Operating margin came in at 37.7% compared with 38% in the year-ago quarter.

Other Businesses Segment

Quarterly revenues were $86.2 million, up 1.2% year over year. Operating income was $6.8 million, up 75.6% year over year. Operating margin was 7.9% compared with 4.6% in the year-ago quarter.

Subscriber Statistics

As of Jun 30, 2013, Televisa had 2,405,725 Video subscribers; 1,456,807 Internet Broadband subscribers; and 812,497 Telephony subscribers, which together constitutes 4,675,029 revenue generating units (RGU) in the Cable and Telecom segment. The company also had 5,646,254 net active Satellite TV subscribers, up 24.1% year over year. In the reported quarter, the Sky segment added 233,242 net active subscribers.

Other Stocks to Consider

Televisa currently has a Zacks Rank #3 (Hold). However, there are other stocks, which are doing well in this industry. Some of them include ValueVision Media Inc. (VVTV), Multiband Corp. (MBND) and LIN TV Corp. (TVL). All these stocks currently carry a Zacks Rank #1 (Strong Buy).

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