Televisa's Executive Chairman Takes Leave Amid Investigation

By Cassandra Garrison and Kylie Madry
MEXICO CITY (Reuters) – Televisa's executive chairman, Emilio Azcárraga, is taking "administrative leave" pending the results of a U.S. Department of Justice investigation into the company's dealings with FIFA soccer officials, the Mexican broadcaster announced on Thursday.

Azcárraga's leave becomes effective immediately, as stated in Grupo Televisa's third-quarter results.

In 2023, Televisa reached a $95 million settlement to resolve a U.S. investor lawsuit accusing the company of bribing FIFA officials for rights to four World Cup tournaments. The company continues to cooperate with the ongoing investigation.

A spokesman for Televisa has not provided further details. In August, Televisa indicated that the DOJ investigation might have a material impact on the company’s financial condition or its operational results.

In its third-quarter results, Televisa, the world's largest producer of Spanish-language content, reported a net profit, largely attributed to improved results from its partnership with U.S. Spanish-language broadcaster Univision.

Televisa reported a net profit of 666.5 million pesos ($33.85 million) in the third quarter, nearly double analysts' estimates, reversing a loss of 918.5 million pesos in the same period last year.

However, revenues fell 6% to 15.36 billion pesos ($780 million), primarily due to struggles in Televisa's satellite television unit, SKY. Analysts had predicted revenues would reach $833.4 million.

SKY experienced about 270,000 net disconnections alongside a 13% revenue dip. The cable segment also saw 19,618 disconnections and a 4% revenue decline.

TelevisaUnivision, the joint venture between Televisa and Univision, contributed a billion pesos to Televisa in the third quarter. The company also benefited from cost-cutting measures and reduced taxes.

TelevisaUnivision replaced its CEO Wade Davis in September, following reports that company results had failed to meet internal expectations.

> ($1 = 19.6921 Mexican pesos at end-September)