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Televisa chairman taking leave amid FIFA bribery probe

Published 10/24/2024, 05:25 PM
Updated 10/24/2024, 07:13 PM
© Reuters. FILE PHOTO: The logo of broadcaster Televisa is seen outside its headquarters in Mexico City, Mexico, June 15, 2024. REUTERS/Raquel Cunha/File Photo
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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.

© Reuters. FILE PHOTO: The logo of broadcaster Televisa is seen outside its headquarters in Mexico City, Mexico, June 15, 2024. REUTERS/Raquel Cunha/File Photo

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)

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