Televisa could be seeking to buy Megacable in Mexico

 

Telecommunications company Televisa from Mexico would be interested in buying Megacable Holdings, one of its main competitors in the Pay-TV market in that country, according to financial news website Bloomberg.com.

 

According to reports from Itau and Credit Suisse banks, the consolidation may occur at any time thanks to the good performance that Megacable has proven in recent years and the green light given to Televisa by the Federal Telecommunications Institute (IFT) by declaring it non-dominant in Pay-TV despite owning a 60.6% market share.

 

Companies do not share geographical coverage areas, so the merger would not have drawbacks to complement. If the acquisition was fulfilled, Televisa would gather a local market share of 75.7%, spread among its different brands.

 

Televisa showed in the fourth quarter of 2015 telecommunication revenues (Izzi Telecom, Cablemas, Cablecom, TVI-Cablevision, Telecable) for USD 415 million, 21.6% higher (in local currency) than in 2014. Its Cable TV accesses totaled 4,061,655. Sky’s DTH (a joint-venture with US telco AT&T) reached a total of 7,284,162 active subscribers and net sales of USD 275 million, 11.7% more year-over-year.

 

By the first quarter of 2016, Megacable reported video revenues for USD 111,134, a 16% growth (in local currency) compared to the same period of 2014, and a record increase in Pay-TV subscribers of 19% annually by reaching a net total of 2,697,443 accesses.