MEXICO CITY (Reuters) -Shares in Televisa, Mexico’s largest broadcaster, seesawed on Friday after the firm posted another quarter in the red and shed more customers than expected, losing as much as 5% in early trading before rising about 4%.
Televisa shares were already down last week as traders anticipated more troubled earnings, which came Thursday with a net loss in the third quarter.
“The night is darkest before the dawn,” analysts at Itau BBA said in a note, adding that despite weak results they considered the stock to be trading at an excessive discount.
To improve profits in its cable segment, the firm on Thursday announced a 12% staff cut effective from the fourth quarter this year.
Management said in an earnings call the company planned to “revamp” the cable business with a focus on better video streaming offerings and growing user engagement and satisfaction, as it seeks to grow revenues and profits.
Going forward, they said Televisa would focus on better value-generating strategy, rather than rapid expansion.
A previous focus on volume over quality with aggressive promotions driven by a competitive market had acted as a “double-edged sword,” boosting churn but hampering sales quality, company executives said.
Between 2024-26, the company forecasts revenue growth in the low-to-mid single digits, which it said it would meet by promotions and encouraging customers to spend on extra features, adding subscribers and hiking prices.
This could bring operating cash flow up 10% per annum over the next three years, it said.
Televisa’s third quarter marked a return to loss-making after the firm made a narrow second-quarter comeback into profitability. The firm slashed spending targets this year as competition intensified and customers disconnected.
(Reporting by Sarah Morland; editing by Cassandra Garrison)