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MEXICO CITY Feb 23 Mexico's Grupo Televisa said
on Thursday that it would slash its capital expenditures by more
than a third to around $1 billion in 2017 as it prepares for
tougher times with a weaker Mexican peso.
The broadcaster and world's largest Spanish-language content
provider said most of the cuts would come in its
cable division, which had almost finished a large network
Executives said on a conference call with analysts that the
company would not sacrifice growth, but the peso's depreciation
meant it was more focused on returns on investment.
In 2016, capex was forecast at around $1.6 billion.
A drop in global oil prices and the election of U.S.
President Donald Trump, who has threatened to enact several
policies that would hurt Mexico's economy, has battered the
Televisa shares rose 6.5 percent to 98.6 pesos on Thursday,
the day after the company reported fourth-quarter results.
In January, the U.S. Federal Communications Commission
cleared Televisa to own up to 40 percent of U.S. broadcaster
Univision's voting stock and up to 49 percent of its common
On Thursday's call, executives said they were analyzing the
conversion of Televisa's existing Univision warrants,
instruments similar to an option, into shares and would make a
They also said they had not discussed additional equity
purchases with Univision shareholders.
(Reporting by Christine Murray; Editing by Bernadette Baum and
Lisa Von Ahn)