MEXICO CITY, April 26 (Reuters) - Mexican broadcaster

Televisa plans to merge its satellite TV unit

Sky with its cable TV and internet service Izzi as soon as

possible, the head of the new unit said on Friday.

Televisa is aiming to trim its financial expenses, and Izzi

has had trouble staying competitive in recent quarters.

Francisco Valim, who will run the unit, said the combination

will help Televisa to optimize the two business by allowing it

to "homogenize regions, sales channels, (and) commission

frameworks and better manage the customer base."

He said the bulk of the integration would take place

between April and the end of June.

Benefits from the merger should become clearer in the third

quarter of 2024, he said, when the firm expects to save some 400

million Mexican pesos ($23.37 million) in operating expenses.

Shares were up 6.5% at 10.8 pesos each in morning

trading.

But both Sky and Izzi suffered setbacks over the

quarter, with analysts at J.P. Morgan noting that Sky had

"significant video subscriber losses", as it reported 250,600

organic disconnections in the quarter.

The Mexican firm earlier this month reached an agreement to

buy out AT&T's stake in Sky, giving Televisa full control

of the firm.

Sky's ratio of capital expenditures to sales should come in

below 14% in 2024 as the restructuring is carried out.

On Thursday, Televisa reported net profits of 951.9 million

pesos for the first quarter, reversing two consecutive quarters

of losses, largely due to a reduction in financial expenses.