MEXICO CITY (Reuters) – Mexican broadcaster Televisa plans to merge its satellite TV unit Sky with its cable TV and internet service Izzi as soon as possible, the head of the new unit, Francisco Valim, said on Friday.
Televisa is aiming to trim its financial expenses, and Izzi has had trouble staying competitive in recent quarters.
The Mexican firm earlier this month reached an agreement with AT&T for its stake in Sky, giving Televisa full control of the firm.
The benefits of the merger will become more evident by the third quarter, when savings on operating expenses will be around 400 million pesos, Valim said.
Sky’s ratio of capital expenditures to sales should come in below 14% in 2024 as the restructuring is carried out.
On Thursday, Televisa reported net profits of 951.9 million pesos for the first quarter, reversing two consecutive quarters of losses, largely due to a reduction in financial expenses.
(Reporting by Aida Pelaez-Fernandez; Editing by Kylie Madry and Alistair Bell)