Televisa’s Sky unit plans revamp to offer new mobile service with AT&T network

MEXICO CITY (Reuters) – SKY, the satellite television unit of Mexican broadcaster Grupo Televisa, will offer a new mobile service with AT&T’s network in the second half of the year, a Televisa executive said on Wednesday.

Detailing a business plan for SKY recently approved by Televisa’s board, the unit’s chief executive, Luis Malvido, said the initial market for the mobile service will be SKY’s postpaid customers.

“We plan to offer competitive single and family plans with compelling cross-promotions leveraging our video services,” Malvido said in a call after the company’s second quarter results.

The new feature is expected to increase SKY’s revenue by 3% to 5% in the coming years, Malvido said.

Grupo Televisa on Tuesday reported a 44% increase in second-quarter net profit to 3.14 billion pesos ($156 million) from the year-ago period, boosted by profits from its joint venture with the American network Univision and lower expenses.

SKY reported 255,000 disconnections in the quarter and a 7.7% decline in revenue.

Televisa shares rose 3.15% on the call before paring their gains.

Malvido added that the recent restructuring of Mexican telecommunications company Altan Redes, with which it entered into a fixed wireless alliance, would help reverse the recent negative trend in its fixed wireless business.

SKY was also exploring partnerships to offer competitive broadband services to its pay-TV customer base, Malvido added.

All matches of the 2022 World Cup, of which SKY will have full coverage, will be available free of charge to customers of the direct broadcast (DTH) and Blue-to-Go platforms.

The Blue-to-Go mobile app will be enhanced to provide steam navigation services, Malvido said. Other planned upgrades include comprehensive repair service for prepaid customers and an overhaul of Central America business strategies and sales processes.

Growing competition in the cable business has driven prices down, but inflation around the world and in Mexico could counter that, executives said.

“We may have to adapt,” said Jose Antonio Gonzalez Anaya, general manager of Televisa’s Izzi.

(Reporting by Cassandra Garrison and Valentine Hilaire; editing by David Evans and David Gregorio)

Copyright 2022 Thomson Reuters.

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