Grupo Televisa SAB (TV) Q3 2024 Earnings Call Highlights: Profitability Gains Amid Revenue ...

In This Article:

  • Profitability Improvement: Cable segment profitability improved by almost 400 basis points to 39.4%.

  • Cable CapEx: Year-to-date cable investments of $290 million, a decline of 38% year on year.

  • Operating Cash Flow (Cable): Over 8.8 billion pesos, growing by almost 40% year on year, accounting for 25% of sales.

  • Sky Operating Cash Flow: Over 2.5 billion pesos, flat year on year, accounting for 22% of sales.

  • Consolidated Operating Cash Flow: Around 11.3 billion pesos, growing by 27% year on year, accounting for 24% of sales.

  • Free Cash Flow: Over 6.3 billion pesos, representing a nine-month free cash flow yield of around 25%.

  • Televisa Univision Revenue: $1.3 billion, increasing by 2% year on year.

  • Televisa Univision EBITA: $427 million, growing by 4% year on year.

  • Advertising Revenue (US): Increased by 5% year on year.

  • Advertising Revenue (Mexico): Declined by 1% year on year; FX neutral increase of 10%.

  • Subscription and Licensing Revenue (US): Grew by 6% year on year.

  • Subscription and Licensing Revenue (Mexico): Fell by 12% year on year; FX neutral decline of 4%.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Grupo Televisa SAB (NYSE:TV) improved profitability in its cable segment by almost 400 basis points to 39.4% compared to the third quarter of 2023.

  • The company achieved a significant milestone by making its direct-to-consumer (DTC) business profitable within two years, faster than its peers.

  • Consolidated operating cash flow grew by about 27% year on year, reaching around 11.3 billion pesos, accounting for approximately 24% of sales.

  • The integration of Sky with the cable segment has led to operational efficiencies, including a reduction in OpEx by around 8.5% year on year.

  • Grupo Televisa SAB (NYSE:TV) generated over 6.3 billion pesos in free cash flow, representing a nine-month free cash flow yield of around 25% for its consolidated operations.

Negative Points

  • Net revenue from cable operations decreased by 1.6% year on year due to the cancellation of a video package and the impact of a hurricane in Acapulco.

  • Sky's third-quarter revenue fell by 13.2% year on year, driven by a decline in prepaid subscribers.

  • The enterprise segment's net revenue declined by 22.6% year on year due to not renewing an important government contract.

  • The operating segment income margin contracted by 60 basis points sequentially due to faster revenue decline at Sky compared to synergy realization.

  • Grupo Televisa SAB (NYSE:TV) faces challenges in further integrating and optimizing operations at Televisa Univision, requiring significant effort to unlock efficiencies.

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