By Cassandra Garrison
MEXICO CITY (Reuters) -Mexican broadcaster Grupo Televisa’s satellite television unit SKY will offer a new mobile service with AT&T’s network in the second half of the year, a Televisa executive said Wednesday.
Detailing a business plan for SKY recently approved by Televisa’s board of directors, the unit’s chief executive Luis Malvido said the initial market for the mobile service will be the SKY postpaid customer base.
“We plan to offer competitive individual and family plans with attractive cross promotions leveraging our video services,” Malvido said in a call following the company’s second quarter results.
The new feature is expected to boost SKY’s revenue by 3% to 5% in the coming years, Malvido said.
Grupo Televisa reported on Tuesday a 44% jump in net profit in the second quarter to 3.14 billion pesos ($156 million) from the year-ago period boosted by profit from its joint venture with U.S. network Univision and lower expenses.
SKY reported 255,000 disconnections in the quarter and a 7.7% fall in revenue.
Shares of Televisa rallied 3.15% during the call before trimming their gains.
Malvido added the recent restructuring of Mexican telecommunications company Altan Redes, with which it has an alliance for fixed wireless, would help reverse the recent negative trend in its fixed wireless business.
SKY was also exploring partnerships to offer competitive high-speed broadband services to its pay TV customer base, Malvido added.
All 2022 World Cup matches, of which SKY will have complete coverage, will be available for free to the direct-to-home (DTH) and Blue-to-Go platform customer bases.
The Blue-to-Go mobile app will be improved to provide steaming services, Malvido said. Other planned upgrades include a comprehensive repair service for prepaid customers and an overhaul of commercial strategies in Central America and sales processes.
Growing competition in the cable sector has been pressuring prices lower, but inflation globally and in Mexico could counter that, executives said.
“We may have to adjust,” said Jose Antonio Gonzalez Anaya, chief executive of Televisa’s Izzi.
(Reporting by Cassandra Garrison and Valentine Hilaire; editing by David Evans and David Gregorio)