Market Insight

Mexico's Televisa sees TV advertising revenues bounce back

July 14, 2013

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Televisa reported 6.4 per cent increase in net sales from 17.0bn pesos (€1.0bn) in Q2 2012 to 18.1bn pesos (€1.1bn) in Q2 2013. The increase was mainly attributable to the strong growth in Televisa's subscription segment, (+12.8 per cent growth year-on-year) and the Cable and Telecom segment (+8.2 per cent growth year-on-year). The overall growth rate was negatively affected by a 9.7 per cent decrease in publishing revenues, which continue to fall across all print ventures in Mexico as circulation declines.

Televisa's free-to-air TV advertising revenues increased 6.2 per cent year-on-year from 5.6bn pesos (€328.9m) in Q2 2012 to 5.9bn pesos (€349.2m) in Q2 2013. This was an uplift after a weak Q1, which saw a -7.2 per cent decrease from the previous year.

IHS estimates Televisa's multichannel advertising revenues at 610m pesos (€36.0m) in Q2 2013, up 11.2 per cent from 548m (€32.4m) in Q2 2012.

The Mexican advertising market faces tough comparatives in 2013. The general elections in 2012 triggered a surge in advertising investment, particularly on TV. A similar driver is missing in 2013 as advertising expenditure levels return to normal. Q1 2013 was exposed most strongly to this comparative effect. General elections took place in Q2 2012 and advertising activity was concentrated on the election run-up in Q1. In a post-election slump, Televisa revenues declined by 7.2 per cent in Q1 2013. The weak Q1 performance was exacerbated by Easter taking place in Q1 this year. In Mexico, Easter is a period of typically soft advertising sales due to strict religious practices. In contrast, European advertising markets thrive during Easter time.

Although political advertising spend continues to decline throughout 2013, Televisa's TV advertising revenue bounced back in Q2 2013 growing 6.2 per cent year-on-year. This reflects the confidence of advertisers in the TV medium in Mexico. At 60.5 per cent market share of all Mexican advertising revenue, TV remains the strongest platform to deliver brand messages and will maintain its media share in 2013. While cyclical factors shape Mexican TV advertising in 2012 and 2013, the market is facing deep structural changes as viewership and advertising revenue migrate to multichannel TV. Incumbent broadcasters like Televisa are pressed to develop a coherent set of channels in order to shore up their market position.

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