MEXICO CITY (Reuters) - Mexican media company Grupo Televisa (TLVACPO.MX) on Monday posted a dip in second-quarter revenue, missing some analysts’ expectations as advertisers spent less on television commercials.
The broadcaster, known for its “telenovela” soap operas, reported a 1.5 percent fall in revenues to 23.162 billion pesos ($1.28 billion, below average analyst expectations of 23.63 billion pesos, according to Thomson Reuters data.
Advertising revenue dropped 9.8 percent as some clients reduced the amount of their budgets allocated to television, Televisa said in its report.
Like its U.S. peers, Televisa is under pressure as younger viewers shun cable bundles in favor of cheaper streaming options including Netflix Inc (NFLX.O), and as advertisers redirect spending to online ads.
Televisa said it added subscribers to its voice, data and video cable services during the June quarter, compared with the prior three months. However, compared with the second quarter of 2016, its total number of video subscribers was down 3 percent.
Televisa’s stock gained 3.62 percent during Monday’s trading session ahead of the quarterly report.
The world’s largest maker of Spanish-language content reported a net profit of 1.453 billion pesos ($80.1 million), up 2.6 percent from a year earlier and helped by lower financial costs.
Televisa has been subject to tougher regulations since 2014 as part of a sweeping sector reform aimed at making the Mexican market more competitive.
It recently won a court order blocking the sale of Roku streaming devices in Mexico on grounds that the gadgets are used by criminals to illegally sell pirated television content.
($1 = 18.143 Mexican pesos on June 30)
Reporting by Noel Randewich; Additional reporting by Saqib Ahmed in New York; Editing by Leslie Adler and Andrew Hay