Televisa bails out La Sexta
December 15, 2008
From David Del Valle in Madrid
Mexican TV group Televisa is injecting an extra E52 million into the Spanish commercial network La Sexta, in which it has a 40 per cent share, taking its total investment of more than E265 million by the end of 2009.
The injection forms part of a capital enlargement of E130 million with E78 million being provided by its other shareholders, GAMP (Imagina, Chascarrillo, BBK, Bainet, Torreal), with 51.0 per cent and Gala Capital, with 9.0 per cent.
The channel has failed to meet its initial financial expectations that included an investment of E500 million until the end of 2009 when it was supposed to reach breakeven, and an average audience share of 7 per cent (in October it achieved a 6.2 per cent).
Its battle with rival network Sogecable over FTA football TV rights and the sharp advertising drop, estimated at 17 per cent this year, have hit the channel hard.