(Adds details on costs, comparative figures)
MEXICO CITY, Oct 25 (Reuters) - Mexican broadcaster Televisa on Thursday reported a 3.6 percent decline in net profit as costs rose, though the company touted an increase in advertising sales that it attributed to its new advertising model.
Grupo Televisa, Mexico’s largest broadcaster, posted net profit of 978 million pesos ($52.3 million) in the third quarter compared with 1 billion pesos in the same quarter last year.
The company said results also reflected the peso’s depreciation against the dollar, and derivatives contracts intended to help it manage foreign exchange fluctuations.
Net sales rose 10.5 percent to 25 billion pesos during the three-month period ended in September, compared with 22.7 billion pesos a year earlier, driven by content and cable sales, the company said.
Like broadcasters worldwide, Televisa is seeking to redefine its business as streaming services claim more viewers and cultural relevance. The company shook up its management this year, with Bernardo Gomez and Alfonso de Angoitia taking the reins as co-chief executives in January.
Advertising sales rose 2.2 percent to 5 billion pesos, from 4.9 billion pesos a year ago, marking a third consecutive quarter of growth. The company attributed that to a new advertising pricing scheme it rolled out this year, intended to capitalize on improved ratings.
The company also got a boost from licensing rights for the World Cup, which contributed more than 1 billion pesos in sales during the quarter.
$1 = 18.7175 pesos at end-September Reporting by Julia Love Additional reporting by Sheky Espejo Editing by Leslie Adler