Mexico’s Azteca Slashes Costs

TV Azteca, Mexico’s second-largest broadcaster, said it will cut costs and trim salaries to weather an expected slowdown in economic growth and consumer spending. Azteca, controlled by entrepreneur Ricardo Salinas Pliego, will slash the salaries of senior management by 10%, cut sales and administration costs by 20% and extend credit terms from suppliers to bolster cash flow. Azteca also put its international expansion plans on hold for the short term but said it will still seek investment opportunities in Latin America and the U.S. The broadcaster reduced its estimated capital expenditures for this year to $25 million, down $10 from earlier plans. The company stressed, however, that its debt is long-term and is covered by cash flow.