UPDATE 2-Mexico's Televisa net down, pay TV boost revs

* Sales rise 5.5 percent driven by pay TV

* Net hit by increase in income taxes (Adds details on cable, satellite operations)

MEXICO CITY Oct 22 (Reuters) - Mexican broadcaster Televisa posted a slight decline in third-quarter net profit on Thursday, hit by higher income taxes, but revenue rose 5.5 percent boosted by its pay television units.

Grupo Televisa (TV.N) (TLVACPO.MX), known around the world for its tear-jerking soap operas, earned 2.014 billion pesos ($149 million) in the July-September period, down 2.6 percent from the year-ago quarter and a tad below market expectations.

Quarterly revenue rose to 13.150 billion pesos from 12.459 billion pesos in the same period a year ago, helped by its cable units Cablevision (CABLECPO.MX) and Cablemas as well as its satellite TV subsidiary SKY. Analysts polled by Reuters were expecting revenue of 13.015 billion pesos.

SKY direct-to-home sales rose 9.2 percent in the third quarter, reflecting the success of a new, cheaper programming package aimed at countering the advance of rival Dish Mexico.

Dish, which hopes to end this year with a one million subscriber base, has dented Televisa's expansion rate in pay-television services, prompting the media giant to rethink its marketing strategies.

Cable quarterly sales rose 10.6 percent on the back of triple-play packages that bundle television, telephone and Internet services for a low price.

Core broadcast television sales fell nearly 2 percent due to an unfavorable comparison with the year-ago results, when Televisa reported extraordinary income from the Summer 2008 Olympics.

Televisa shares fell 1.32 percent to close at 52.45 pesos on Thursday before earnings results were disclosed. ($1 = 13.5035 as of end-September) (Reporting by Cyntia Barrera Diaz; editing by Carol Bishopric)