UPDATE 2-Televisa, TV Azteca shares jump after Mexico home-schooling deal
(Adds comment from Televisa spokeswoman)
MEXICO CITY, Aug 4 (Reuters) – Shares in Grupo Televisa and TV Azteca surged on Tuesday after the Mexican companies inked a deal to broadcast home-schooling classes during the next academic year while schools remain closed because of the coronavirus epidemic.
“The government is paying a certain amount to pay for the start of this channel and its transmission nationwide for the next four months,” a Televisa spokeswoman told Reuters.
“Our additional channels and advertising remain unchanged,” the spokeswoman added.
Mexico’s education ministry has set aside 450 million pesos ($19.8 million) for the distance learning program that 30 million students are expected to use, local press reported on Tuesday.
“We consider that this news is positive for the (Televisa) station, since it generates greater confidence between agreements related to private industry and the government,” Monex analyst Brian Rodriguez said.
The agreement could generate synergies in the advertising business, Rodriguez added.
Televisa shares rose 11.3% and TV Azteca shares were up 11.2%.
The decision to keep the nation’s schools closed after the Aug. 24 start of the academic year reflects stubbornly high infection rates and deaths in Latin America’s second-largest economy. (Reporting by Anthony Esposito and Noe Torres Editing by Paul Simao and Richard Pullin)
Source: Read Full Article