Grupo Televisa, S.A.B.

Grupo Televisa’s telecom segment reported segment revenue of MXN 14.3 billion, down 3% year over year, while operating segment income was MXN 6 billion, up 5%, and operating segment income margin was 41.8%, up 310 basis points year over year. Residential revenue was MXN 10.7 billion, up 1.8% year over year, and enterprise revenue was MXN 1 billion, up 0.8% year over year; Sky revenue was MXN 2.5 billion, down 20.3% year over year. On the volume side, broadband net adds were 9,400, mobile net adds were 72,000, and the company passed about 12,000 new homes in the quarter and upgraded over 1.5 million homes to FTTH. TelevisaUnivision revenue was $1.3 billion, up 10% year over year, Mexico revenue was $605 million, up 53%, U.S. revenue was $722 million, down 11%, and adjusted EBITDA was $388 million, down 3%; cash ended at $766 million, net debt-to-EBITDA was 5.5x, and quarterly CapEx was $36 million. For guidance, TelevisaUnivision said third-quarter U.S. advertising trends should be broadly consistent with the second quarter, full-year 2026 CapEx should be consistent with full-year 2025 levels, and the company expects continued World Cup momentum in Mexico and Latin America plus fourth-quarter U.S. political advertising to help offset near-term U.S. ad pressure.

Alfonso de Angoitia framed the quarter as evidence that the telecom turnaround is working, highlighting five straight quarters of Internet subscriber growth, sub-2% churn, expanding margins, and strong free cash flow generation. He emphasized disciplined capital allocation, saying the company will only pursue M&A opportunities that fit the opportunity, cash flow, and leverage profile, and he reiterated that management wants to create shareholder value without overreaching. On TelevisaUnivision, he said the World Cup validated the strategy around ViX and that the streaming platform is central to the company’s future.

Carlos Phillips focused on balance sheet strength and efficiency gains. He said Grupo Televisa has generated cumulative free cash flow of MXN 16.4 billion over the period discussed, or about $300 million per year, and that leverage has declined to 1.6x EBITDA from 2.4x at the end of Q2 2023; excluding network upgrades, cumulative free cash flow would have been MXN 20.6 billion. He also explained that higher lease expense was mainly due to shifting from owning most autos to leasing them, which freed up savings elsewhere, and he said the company’s balance sheet is strong enough to handle potential M&A if opportunities arise.

Analysts pressed management on M&A strategy, including whether the company would act alone or with partners, whether it would want control or be willing to take a 51% stake, and what leverage level would be comfortable after a deal. Management repeatedly said the answer depends on the specific opportunity, cash flow generation, and deleveraging potential, while Carlos Phillips added that the balance sheet is currently strong and leverage is below 2x. Questions also focused on synergies, broadband competition, lease payments, FTTH benefits, Starlink, and AI; management said there is still room for operational efficiency, that competition is strongest in lower-ARPU segments, that lease costs rose because of fleet outsourcing, that fiber improves product quality and pricing, and that Starlink is a complement in B2B and early B2C use cases rather than an immediate mass-market threat. On AI, management said it is being used across production and telecom operations, with internal infrastructure to avoid token-cost exposure and data leakage.