Grupo Televisa, S.A.B. Q4 FY2025 earnings call

Grupo Televisa Achievements - Focused on attracting and retaining value customers in cable, grew internet subscriber base by ~47,000 in 2025. - Executed OPEX efficiencies and integration between EASY and Sky, expanded consolidated operating segment income margin to 39.1% with 200 basis points growth, OPEX reduced by 8.3% year - on - year. - Disciplined CapEx deployment, invested 12.2 billion pesos in 2025, equivalent to 20.7% of sales, upgraded 4.5 million homes to FTTH technology, ended 2025 with ~9 million homes or ~45% passed with FTTH. - Generated ~5.9 billion pesos in free cash flow in 2025, prepaid bank loan and repaid senior notes. - Televisa Univision: 2025 was breakthrough for DTC business, VIX delivered record revenue and profitability, DTC business nearly a quarter of total company revenue, adjusted EBITDA ~20%; efficiency plan reduced gross operating expenses by ~$400 million in 2025, operating expenses declined 8% year - on - year; refinanced $2.3 billion of debt, leverage improved to 5.6 times. ### Cable & Sky - Ended December with 20 million homes, passed ~59,000 new homes in the quarter. - Monthly churn rate below 2% for third consecutive quarter, broadband gross ads solid, delivered 25,000 net ads in fourth quarter. - Video lost ~31,000 subscribers in fourth quarter, better than previous quarters. - Mobile net ads 95,000 subscribers in the quarter, MDNO services making bundles more competitive. - CapEx in fourth quarter was 4.6 billion pesos, 31.8% of sales; full - year CapEx 12 billion pesos, 20.7% of sales. ### Televisa Univision - 2026 World Cup: VIX to be official home of World Cup in Mexico, exclusive streaming destination for all 104 matches. - Board of directors approved suspending payment of regular dividend in 2026, to be presented for approval at annual shareholders meeting.

In 2025, consolidated revenue reached 58.9 billion pesos, a year - on - year decline of 5.5%, while operating segment income was 23 billion pesos, a slight decrease of 0.6% year - on - year. For the fourth quarter, consolidated revenue was 14.5 billion pesos, down 4.5% year - on - year, and operating segment income was 5.9 billion pesos, up 6.1% year - on - year. For cable operations, residential operations' net revenue in the fourth quarter was 10.6 billion pesos, accounting for about 90% of total cable revenue, down 0.6% year - on - year; enterprise operations' net revenue was 1.2 billion pesos, accounting for about 10% of cable revenue, down 4.2% year - on - year. Sky's fourth quarter revenue was 2.8 billion pesos, down 16.8% year - on - year, losing 304,000 revenue generating units. Televisa Univision's full - year revenue was $4.8 billion, down 5% year - on - year, and adjusted EBITDA was $1.6 billion, up 2%; fourth quarter revenue was $1.3 billion, down 2% year - on - year, and adjusted EBITDA was $396 million, down 12% year - on - year.

2026 Guidance - Plan to have CapEx - to - sales ratio close to 25% in 2026, upgrade 6 million homes to fiber - to - the - home technology, expect to end 2026 with 75% of total footprint passed with FTTH technology. - Televisa Univision expects CAPEX deployment to remain at similar levels in 2026. - Board of directors approved suspending payment of regular dividend in 2026, to be approved at annual shareholders meeting. - Approach 2026 World Cup with fully integrated strategy across broadcast, streaming, digital, and social to deliver comprehensive coverage and maximize commercial impact.

Risks - Competition in the Mexican telecom sector, Sky business affected by network development and streaming competition, DTH revenue declining. - Challenges in organizational transformation during AI application推进.

Question and Answer - Q: Could you please walk us through the fiber plan? How many homes with fiber - to - the - home do you have today? I mean, is this goal, what is the goal exactly, if you could repeat, and is it for the end of 2026? How has been like the room to increase prices?

A: We are already at 9 million homes with fiber today and planning to get to 15 - 16 million by the end of 2026, 75% of existing network would be fiber - based. Regarding price increase, we have been increasing ARPU consistently over the last several quarters, focusing on high - value clients that will churn less and value our services and be able to acquire more services from us. - Q: You're kind of almost uniquely exposed to AI positively on the telecom side, given all the repetitive processes and consumer - facing, you know, kind of customer journey experiences, and then on the media side with your JV. I know you're obviously the largest volume producer of Spanish programming in the world, and you may even be number one overall. You had a lot of dislocation in the U.S. media names a few weeks ago on account of CDANCE 2.0. And I was just curious, what's your broad perspective on how AI affects you, both on the blocking and tackling side? on telecom, and then on the creative side on television, well, with respect to, you know, your in - house content creation being even faster and more short form, and then the more competition you might face on people and companies that aren't nearly as well - funded as you.

A: On the media side, we're experimenting with AI in script writing and production, launched micro novellas in short form last year, and will produce more than 300 micro - novelas this year, some 100% with AI. In Telecom, AI is useful in handling customers and operating network, moving to full AI in customer relationship in 2026. - Q: It's on the opportunities you're exploring in Mexico Telecom. Just wanted to see if you can comment a little bit on whether these opportunities are in the fixed market or on the mobile market, or any additional color you can give. And on the residential, your operations in Mexico, operating segment income was really strong in the fourth quarter. How sustainable is this market level?

A: We are actively exploring opportunities in the telecommunications sector but can't comment on specifics at this point. We keep on optimizing operations, making systems more AI - oriented to be more efficient, both for customer - facing and cost - base reduction, pursuing increasing operating margins. - Q: The third one is on your common value of the 25% CapEx to sales for 2026. Is that on the Telecom? or it's telecom enterprise, or it's the full, you know, telecom enterprise satellite? Should we think 25% of consolidated Televisa? And my second question is also relative to Sky. With the rate of these connections that we have had in the last couple of years, and it is continue, it becomes really, tough for Televisa at the consolidated level, at least on the Evita side, to show growth. I'm just wondering if you guys can give us more color of how you see Sky going forward, if there is a level where you see these connections or your total clients might normalize.

A: The CapEx discussion is up to 25% and comprises everything, EasySky, cell, B2B, DTH, and cable fiber business. With regards to Sky, DTH revenue is declining as expected, we streamline the DTH business to keep it as a cash flow generating business, focusing on lowest possible cost at Sky, with direct costs being program cost, satellite and conditional access, and other businesses like direct to consumer and B2B are growing.