Mexico's Televisa returns to profit in third quarter despite lower revenue

MEXICO CITY, Oct 29 (Reuters) - Mexican broadcaster Grupo Televisa TLEVISACPO.MX swung to a third-quarter profit from a hefty loss in the same period a year earlier, as lower financial and tax expenses offset softer revenue.

The world's largest producer of Spanish-language content posted a quarterly net profit of 882.7 million pesos ($48.82 million), from a loss of 1.93 billion pesos in the same quarter last year.

• Revenue fell 3.8% to 14.08 billion pesos as continued weakness in satellite television services outweighed growth in business services.

• The return to profit was primarily driven by a 2.89 billion peso drop in income tax provisions and lower financial expenses. These gains helped the bottom line despite a one-time non-cash charge on technical equipment that dragged down operating income.

• Broadband subscribers totaled 5.7 million with around 9,000 net additions; mobile subscribers reached 888,000 with 68,000 net additions.

• The firm recently agreed to buy AT&T's Mexican unit for $2 billion in cash, a move welcomed by investors that is expected to strengthen its telecom business and increase competition with telecoms giant America Movil AMXB.MX.

• In April, the company said it expected capital expenditures in the low twenty-percent range of revenues this year as it continues to upgrade its telecommunications network.

• Televisa has been shifting its focus toward broadband and mobile services as demand for traditional pay-TV declines.

($1 = 18.0808 pesos at end-September)