COMPANY TO WATCH: GRUPO TELEVISA/MEXICO
Mexico City-based Grupo Televisa has won a television license in Spain, gaining access to a major new advertising market. Televisa, Mexico’s number-one TV broadcaster, with more than 150 affiliated stations, is also the main provider of content to Univision Communications, the top Spanish-language broadcaster in the United States. Televisa is also a leading producer of Spanish-language magazines.
The new Spanish TV network will be based in Catalonia and will be operated by a group called Gestora de Inversiones Audiovisuales La Sexta, which also includes five Spanish producers. Televisa says it will produce TV shows in Mexico at a lower cost than domestically for a Spanish audience.
Analysts say Televisa also will get a revenue boost from the combination of Mexico’s presidential election and the World Cup of soccer this year. The company estimates that these two events will increase its advertising revenue by $150 million in 2006.
Televisa is also expanding into air travel as Mexico opens the market to competition with its planned privatization of AeroMexico and Mexicana. Televisa purchased a 25% stake in a new, low-cost airline, Vuela Compania de Aviacion, which is expected to begin operations in the first half of this year.