Leading Mexican media operator Grupo Televisa has posted a Q1 loss of 125 million pesos ($13.4m), blaming the economic slowdown.
The news led to confirmation of rumours that the group would axe around 750 jobs and cut 570m pesos in costs [WAMN: 19-Apr-01].
Televisa, Mexico’s largest media company, reported a 3.1% year-on-year fall in sales to 4.51 billion pesos, including a 4% drop in ad revenue compared to Q1 2000 (when adspend was boosted by heavy political advertising).
Meanwhile, operating income tumbled 253.8m pesos, from 929.3m pesos last year to 675.5m pesos, and financing costs jumped 60.7m pesos.
As expected, Televisa’s cost-cutting measures include the axing of international news station ECO and a 117m-peso reduction in investment on web portal EsMas.com, which will lose 95 of its staff.
News source: Wall Street Journal