Grupo Televisa, S.A.B. Q3 FY2025 earnings call

Grupo Televisa Milestones

• Grew cable Internet subscriber base in first 9 months of 2025.
• Achieved 100 basis points increase in consolidated operating segment income margin to 38.2% driven by ~7% year-on-year OpEx reduction from Izzi-Sky integration.
• Invested MXN 7.5 billion in CapEx YTD (16.8% of sales), with 2025 CapEx budget $600 million. Generated MXN 4.2 billion in free cash flow YTD, prepaying MXN 2.7 billion bank loan.

TelevisaUnivision Milestones

• ViX engagement solid with MAU growth driven by Gold Cup and other content.
• Reduced operating expenses by ~$300 million YTD, on track to save over $400 million in 2025.
• Refinanced $2.3 billion of debt, ending quarter with 5.5x EBITDA (improved from 5.9x Q4 2024).

Cable and Sky

• Residential operations: Net revenue MXN 10.6 billion (91% of cable revenue), down 0.7% year-on-year; sequential growth of 0.4%. Enterprise operations: Revenue MXN 1.1 billion (9% of cable revenue), up 7.7% year-on-year.
• Sky: Segment revenue MXN 14.7 billion, down 4.4% year-on-year; operating segment income MXN 5.7 billion, down 0.7% year-on-year; operating segment income margin 38.5%, up 140 basis points year-on-year. CapEx in third quarter MXN 3.6 billion (24.3% of sales).

TelevisaUnivision

• Third quarter revenue $1.3 billion, down 3% year-on-year; adjusted EBITDA $460 million, up 9% year-on-year. Excluding political advertising, revenue down 1% year-on-year, adjusted EBITDA up 13% year-on-year.

Guidance

• 2025 CapEx budget $600 million, aiming for CapEx to sales ratio <20%.
• TelevisaUnivision committed to deleveraging and strengthening capital structure through ongoing cost management and growth.

Risks

• Cable market competition dynamics, including potential price pressures and subscriber churn.
• Dependence on political advertising and market fluctuations affecting revenue.
• Decline in Sky's subscriber base due to fiber network penetration and OTT competition, though seen as a cash flow generator.

Q: Comment on CapEx outlook for 2026 and insurance claim related to Hurricane Otis.

A: CapEx guidance around $600 million, with 2026 outlook not detailed yet; insurance claim related to Hurricane Otis is the last portion of the claim.

Q: Discussion on moving local news content to ViX and BC advertising investments.

A: Exploring inclusion of local news in ViX; made media for equity deals with startups, leveraging strong platforms for brand positioning.

Q: Competition in cable market and Sky's EBITDA contribution.

A: Stable market with rational competition; Sky seen as a cash flow generator with declining subscriber base but ongoing positive cash flow due to efficient content and service delivery.

Q: Broadband growth expectations and margin sustainability.

A: Diminishing net adds in mature market, focus on high-end customers to increase ARPU; margins in cable and TelevisaUnivision sustainable through ongoing cost cutting and content library advantages.