:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/bloomberglinea/PJZAVYIQN5DODNTHCZQSLXGMJY.jpg "Mexican media and telecommunications giant Grupo Televisa will spin off its soccer, Azteca Stadium, gaming and sweepstakes businesses, as well as its magazine publication and distribution business, into a separate business segment")
Mexico City — Mexican media and telecommunications giant Grupo Televisa will spin off its soccer, Azteca Stadium, gaming and sweepstakes businesses, as well as its magazine publication and distribution business, into a separate business segment, for which it will create a company that will list on Mexico’s stock exchange (BMV).
The plans were approved by the company’s board of directors, Televisa (TLEVICPO) said in its quarterly earnings report on Thursday.
“This plan will allow both the company and the new company resulting from the spin-off to focus on their respective business models and growth opportunities, and to generate better access to capital, financing sources and investors that are aligned with each business,” Grupo Televisa said.
The board of directors of the company approved a reorganization proposal to separate from Televisa some businesses that are part of its ‘Other Businesses’ segment, including its “futbol” [soccer] operations, the Estadio Azteca, the gaming operations, and publishing and distribution of magazines, as well as certain related assets and real estate,” the company’s earnings report states.
“The businesses of izzi and Sky, the company’s investment in TelevisaUnivision, broadcasting concessions and infrastructure, as well as other assets and real estate related to these businesses, will remain in the company,” it added.
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“It is expected that this proposed reorganization is carried out through a spin-off of the company, creating a new controlling entity listed on the Mexican Stock Exchange that would hold the spun-off businesses, and that would have the same shareholding structure of Televisa.”
Televisa anticipates that the reorganization could take effect in the first half of 2023. The move is subject to corporate and regulatory approval, and the approval of the spin-off by the company’s shareholders meeting.
The new company will count among its assets the iconic Azteca Stadium in Mexico City, which will be refurbished to host some of the matches of the FIFA 2026 World Cup, which will be held in Mexico, the US and Canada.
Televisa’s ‘Other Businesses’ segment increased sales by 64% in third quarter, compared to the same period in 2021.
On a consolidated level, Grupo Televisa reported a 3.6% increase in quarterly revenues, while EBITDA contracted 5.1%. The results were described as neutral by analysts at Monex.
“Towards year-end and 2023, we expect the broadcaster could continue a gradual recovery, mainly in the advertising segment as we have previously mentioned, as a result of the upcoming World Cup,” wrote Brian Rodriguez and Roberto Solano of Monex in a note.
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