Grupo Televisa, S.A.B.

Grupo Televisa’s cable operations reported segment revenue of MXN 14.3 billion, down 3% year over year, while operating segment income rose 5% to MXN 6 billion and margin expanded to 41.8%, up 310 basis points. Residential net revenue was MXN 10.7 billion, up 1.8%, and enterprise net revenue was MXN 1 billion, up 0.8%. Sky revenue fell 20.3% year over year to MXN 2.5 billion, and consolidated operating cash flow for Cable and Sky was MXN 2.4 billion. TelevisaUnivision revenue increased 10% year over year to $1.3 billion, Mexico revenue jumped 53% to $605 million, U.S. revenue fell 11% to $722 million, and adjusted EBITDA was $388 million, down 3%. On the balance sheet, TelevisaUnivision ended with $766 million in cash and about $770 million of available credit capacity, while net debt-to-EBITDA improved to 5.5x from 5.7x. The company said full-year 2026 CapEx should be consistent with full-year 2025 levels. For Grupo Televisa overall, management highlighted cumulative free cash flow of MXN 16.4 billion over three years and leverage down to 1.6x EBITDA from 2.4x at the end of 2Q23.

Alfonso de Angoitia framed the quarter as validation of the multi-year telecom turnaround, pointing to five straight quarters of sequential internet growth, sub-2% churn, improved revenue trends, and large cost reductions. He repeatedly stressed disciplined capital allocation, saying the company prioritizes free cash flow and will only pursue M&A if the opportunity fits the asset, cash flow profile, and leverage comfort level. On strategic direction, he said they continue to look for cable industry consolidation opportunities and remain focused on building ViX and strengthening market share in telecom.

Carlos Phillips backed up the turnaround narrative with balance-sheet and cost data, saying annual OpEx is MXN 34.5 billion, down 18.4% from MXN 42.2 billion three years ago despite inflation of 14.7%. He also noted headcount is down to about 25,000 from around 34,000 in mid-2023, annual corporate expenses have fallen about 65% to around MXN 400 million, and free cash flow has totaled MXN 16.4 billion over three years, or MXN 20.6 billion excluding network upgrades. He said leverage is below 2x and the balance sheet is strong enough to support potential acquisitions if they arise.

Analysts focused on consolidation, asking whether Televisa would pursue M&A alone or with a partner, whether it would want 100% or just control, and what leverage would be acceptable. Management answered that it depends on the specific opportunity, including the asset, cash flow, need for a partner, and deleveraging path, but said the balance sheet is strong and the company has already delevered significantly. Another key topic was broadband competition and synergies: Valim said there is still room for efficiency gains, but the main near-term competition is at the low end of the market, where the company is being selective rather than chasing lower-ARPU customers. Questions also covered lease expense increases, which CFO said were mainly driven by shifting from owned autos to leasing, and Starlink, which management views as a potential partner rather than a short-term mass-market threat.