Shares of Mexican media giant Grupo Televisa (NYSE:TV) gained both because of appreciation in the peso, which helped Televisa’s stock price in dollar terms, and because of an increase in advertising prices that the company instituted about one year ago. At first, higher prices had a negative impact on volumes, but the company’s TV advertising business has since returned to revenue growth. In addition, Televisa is reaching the end of a period of heavy capital spending on its cable network, and we believe it is in a position to potentially start generating greater free cash flow.
From First Eagle Global Value Fund first quarter 2017 commentary.
