Televisa reported that its net sales decreased 7.8% at the annual rate in the second quarter of 2020, to 22,407.2 million pesos.
This decrease is mainly attributable to the decrease in sales of Advertising and Other Businesses.
The profit of the operating segments of Televisa fell 12.4%, reaching 8,636.3 million pesos, with a margin of 35.8%, due to the decrease in the profit of the operating segment of the Content and Other Business segments.
Net profit attributable to Televisa shareholders amounted to 1,739.5 million pesos in the second quarter.
The Covid-19 pandemic has affected its business, financial position, and results of operations for the quarter ended June 30, 2020, and it is currently difficult to predict the magnitude of the impact it will have in the third quarter and the rest of the year 2020. .
Televisa and the pandemic
The company stated that it cannot assure that the conditions of the bank, capital financing or other financial markets will not continue to deteriorate as a result of the pandemic; or that access to capital and other sources of financing for the company will not be restricted, which could negatively affect the availability and terms of future loans, renewals or refinancing.
Also, the deterioration in global economic conditions as a result of the pandemic could ultimately reduce the demand for the company’s products across its segments as its customers and users reduce or postpone their spending.
In its Other Businesses segment, the sports and entertainment events for which it has broadcast rights, or that organizes, promotes and / or are located in places it owns, were suspended for most of the quarter that ended on 30 June 2020, although some have recently started operating again.
Additionally, during the quarter ended June 30, 2020, most of its nonessential businesses, including casinos, were closed. “When local authorities begin to approve the reopening of these locations in the cities where we operate, regulations will be enacted that may include capacity restrictions and hours of operation. This may affect the results of our Other Business segment in the coming months. As of this date, only one of our casinos has restarted operations,” said Televisa.