Televisa lowers its advertising sales 28.4%
Televisa reported that its advertising sales in its Content segment decreased 28.4% to 2,635.1 million pesos, at the annual rate.
The decrease in sales is substantially explained by the one-time change in the schedule for advance sales negotiations, which resulted in many customers delaying the start of their advertising campaigns for the year with Televisa.
It is also explained by a significant deterioration in growth expectations for Mexico triggered by the expansion of COVID-19.
Televisa advertising expenses
As a result of the new level of uncertainty, many customers decided to suspend advertising spending in the last two weeks of the quarter.
Televisa’s content business has seen a reduction in advertising demand during the quarter ended March 31, 2020, which may continue to be affected by the reduction in the level of economic activity in the jurisdictions in which the clients of the company.
Televisa is partially dependent on consumer demand for advertising focused on consumer products, and the COVID-19 pandemic has already caused and could continue to cause advertisers to reduce, postpone or, in a few cases, eliminate their advertising spending on company platforms.
Televisa and COVID-19
Additionally, much of the production of new content has been shortened or suspended in response to social distancing measures and closure requirements and health guidelines.
In its Other Business segment, sporting events and other entertainment events for which it has broadcast rights; or that the company organizes, promotes and / or that are carried out in its headquarters, have been canceled or postponed.
Company financial results
(millions of pesos)
In addition, local authorities have issued various rules decreeing the temporary closure of non-essential businesses, including casinos, and as a result, Televisa’s gaming operations have been suspended until the government measures imposed in the regions where its casinos are canceled are canceled. located.
The magnitude of the impact on the company’s businesses will depend on the duration and intensity of the COVID-19 pandemic, as well as the impact of the actions of the federal government, state and local governments, and foreign governments, which it includes the continuation of distancing policies or their reactivation in the future; in addition to consumer behavior in response to the COVID-19 pandemic and the aforementioned government actions.
