By Cassandra Garrison and Kylie Madry
MEXICO CITY (Reuters) -Televisa’s executive chairman, Emilio Azcarraga, 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 said on Thursday.
Azcarraga’s leave will be effective immediately, Grupo Televisa said in its third-quarter results.
Televisa reached a $95 million settlement in 2023 to resolve a U.S. investor lawsuit accusing the company of bribing FIFA soccer officials to win rights to four World Cup tournaments.
Televisa said it was continuing to cooperate with the investigation.
A spokesman for Televisa declined to provide additional details.
In August, Televisa said it had learned that the DOJ investigation “may have a material impact on the company’s financial condition or results of operations.”
In its third-quarter results, Televisa, the world’s largest producer of Spanish-language content, swung to a net profit, largely boosted by improved results from its tie-up with U.S. Spanish-language broadcaster Univision.
Televisa posted a 666.5 million peso ($33.85 million) net profit in the third quarter, nearly double analysts’ estimates and reversing a 918.5 million peso loss in the same period a year earlier.
Revenues slipped 6% to 15.36 billion pesos ($780 million), largely dragged down by Televisa’s satellite television unit SKY, the company said. Analysts polled by LSEG had expected revenues to land at $833.4 million.
SKY saw about 270,000 net disconnections with a 13% dip in revenue. Televisa’s cable segment saw 19,618 disconnections between broadband and video subscribers and a revenue drop of 4%.
TelevisaUnivision, a joint venture between Televisa and Univision, brought a billion-peso boost to the Mexican company in the third quarter, it said.
Televisa said it also benefited from trimming expenses and lower taxes.
TelevisaUnivision replaced its chief executive, Wade Davis, in September. A source with knowledge of the decision told Reuters at the time that Davis was terminated due to company results that had lagged internal expectations.
($1 = 19.6921 Mexican pesos at end-September)
(Reporting by Kylie Madry; Editing by Brendan O’Boyle and Leslie Adler)
