EM LATAM CREDIT: Mexico's Televisa (TELVIS; Baa3neg/BBB/BBB-neg) 4Q Earnings
Fourth Quarter Earnings Results
Negative for spreads
• Mexico telecom/media company Televisa reported disappointing earnings and a special charge for its Sky satellite business. TELVIS 2049 bonds widened 34 bps over the past three months, last quoted T+ 290bps and ranging from T+255-298bps.
• Revenues declined 6% due to a loss of video and cable tv subscribers, especially in their Sky satellite division. The company produced a net loss of MXN9.8bn for the year while total debt increased 13%, primarily due to the negative impact of the depreciation in the Peso on US dollar denominated debt. Cash generation was positive and the cash + investments position increased 38% y/y to MXN48.7bn (USD2.4bn) which should be adequate to meet near term maturities.