TV Azteca considers leaving soccer business

TVAzteca

TV Azteca CEO Benjamín Salinas said in the Q218 report that soccer costs are becoming “less sustainable” from a financial perspective so the company is evaluating whether to continue or not in this business.
“We are obligated to review the soccer business in a comprehensive manner and to evaluate the viability of staying there,” the executive said. Salinas highlighted that TV Azteca’s content together with the “attractive” design of the programming, allowed the station “to be audience leader in Mexico during the Soccer World Cup in Russia”.
However, the executive said that “the associated costs of this event —and soccer in general— makes this a business line that is gradually less sustainable from a financial perspective, as it affects the consolidated profitability of the company.”
In Q218, net sales of the company grew 11% to MX$ 3,876 million (USD 205.2 million). TV Azteca reported EBITDA of MX$ 299 million (USD 15.8 million). The Mexican media group registered a net loss MX$ 1,150 million (USD 60.9 million).
Domestic advertising sales grew 11% to MX$ 3,654 million (USD 193.4 million) “as a result of successful content, which effectively reached the target market of numerous advertisers, as well as sales related to the coverage of the World Cup in Russia”.
However, production, programming and transmission costs in Mexico were MX$ 2,998 million (USD 158.7 million), 70% higher than a year ago, “mainly as a result of exhibition rights and production costs related to the transmission of World Cup games”.