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Grupo Televisa(TV) - 2023 Q4 - Earnings Call Transcript
2024-02-23 19:54
Financial Performance - In 2023, consolidated revenue reached Ps.73.8 billion, representing a year-on-year decline of 2.3% [19] - For Q4 2023, consolidated revenue was Ps.18.4 billion, a year-on-year decrease of 3.8%, while operating segment income was Ps.6.3 billion, reflecting a contraction of 6% [20] - TelevisaUnivision's full-year revenue increased by 5% year-on-year to $4.9 billion, with adjusted EBITDA of $1.6 billion declining by 4% year-on-year [23][24] - In Q4 2023, TelevisaUnivision's revenue was $1.4 billion, growing by 6% year-on-year, while adjusted EBITDA increased by 16% [25] Business Segment Performance - The cable segment's revenue was MXN 12.2 billion, down 1.8% year-on-year, with operating income declining by 7.1% [39] - Sky's Q4 revenues decreased by 15.3% to MXN 4.2 billion, with EBITDA down by less than 1% [54] - The direct-to-consumer business closed 2023 with over $700 million in revenue, aiming for profitability in the second half of 2024 [14][30] Market Performance - In the U.S., TelevisaUnivision outperformed the broader advertising market growth by around 850 basis points in 2023 [11] - In Mexico, advertising revenue increased by 10% year-on-year, driven by growth in both linear and direct-to-consumer sectors [27] - The direct-to-consumer service saw MAUs exceed 40 million on the free tier and over 7 million on the premium tier [99] Company Strategy and Industry Competition - Grupo Televisa is focusing on free cash flow generation and optimizing CapEx deployment, prioritizing profitability over aggressive expansion [6][7] - The company is implementing a digital transformation strategy to stabilize revenue at Sky and enhance competitiveness [8] - The competitive landscape in Mexican broadband is described as rational, with fewer price promotions and an emphasis on service quality [63] Management Commentary on Operating Environment and Future Outlook - Management noted a challenging global macro backdrop in 2023 but expressed confidence in improving free cash flow generation in 2024 [4] - The company anticipates a record political year for ad sales and a profitable streaming business in the second half of 2024 [30][58] - Management highlighted the importance of innovation in partnerships, particularly with Charter, to enhance value propositions in the pay TV ecosystem [120] Other Important Information - The company achieved savings in corporate expenses of almost Ps.280 million for the full year, contributing to an 18% decline in corporate expenses year-on-year [10] - Total leverage was decreased by around $340 million, resulting in savings related to net interest expenses [10][21] Q&A Session Summary Question: Expectations on competitive landscape in Mexican Broadband and ARPU evolution - Management noted a rational competitive landscape with fewer price promotions and an increase in prices by competitors, indicating a stable market [63][64] Question: Integration of Televisa and Univision cultures - Management reported significant progress in integrating the two cultures, with coordinated efforts across production, audiences, and revenue teams [71][72] Question: Expected pace of margin improvement for MSO - Management anticipates sequential margin improvement due to cost optimization and renegotiation of contracts [81] Question: Trends in first quarter for Enterprise Cable and Sky - Management highlighted the launch of Sky Más and Sky Internet, expecting positive revenue trends from these new offerings [106] Question: Breakdown of ViX's $700 million revenue - Management did not provide a breakdown of subscription and advertising revenue but emphasized the growth in MAUs and engagement [98][99]
Grupo Televisa(TV) - 2023 Q3 - Quarterly Report
2023-11-01 22:55
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of October, 2023 Commission File Number: 001-12610 GRUPO TELEVISA, S.A.B. (Translation of registrant's name into English) Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico City, Mexico (Address of principal executive offices) (Indicate by check mark whether the registrant files or will file annual repor ...
Grupo Televisa(TV) - 2023 Q3 - Earnings Call Transcript
2023-10-27 20:07
Company Participants Conference Call Participants Operator I will now turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Please go ahead, sir. Thank you, Sheila. Good morning, everyone, and thank you for joining us. With me today are Wade Davis, CEO of Televisa Univision; Francisco Valim, CEO of Cable; Luis Malvido, CEO of Sky; and Carlos Phillips, CFO of Grupo Televisa. Wade, Valim, and Luis will discuss the operating and financial performance of each business they ...
Grupo Televisa(TV) - 2023 Q2 - Earnings Call Transcript
2023-07-26 20:19
Financial Data and Key Metrics Changes - Televisa-Univision reported strong revenue of $1.2 billion, growing by 11% year-on-year, primarily driven by the global streaming business, ViX, and core operations in Mexico [29] - Consolidated advertising revenue increased by 10% year-on-year, with U.S. advertising revenue rising by 1% or 4% excluding political and advocacy [30] - EBITDA remained stable year-on-year at $374 million, despite financing streaming investments [36] - Consolidated revenue reached Ps18.5 billion, remaining virtually flat year-on-year, while operating segment income declined by 3.3% to Ps6.8 billion [69] Business Line Data and Key Metrics Changes - Cable operations revenue increased by 4.6% year-on-year to Ps12.3 billion, while operating segment income fell by 2.2% to Ps4.8 billion [72] - Fixed RGU gross adds were around 1.3 million, consistent with the average of the last three quarters, indicating robust demand [70] - Broadband lost 38,000 subscribers, while video had 46,000 net disconnections, partially offset by 57,000 voice net adds and 21,000 new mobile subscribers [71] Market Data and Key Metrics Changes - In Mexico, advertising revenue growth of 29% was driven by both linear and streaming, with local currency terms showing a 14% increase [37] - Subscription and licensing revenue in Mexico grew by 27%, with local currency terms reflecting a 16% increase [38] Company Strategy and Development Direction - The company is committed to implementing structural reforms to increase profitability, optimize CapEx, and enhance free cash flow generation [52] - A detailed long-range plan is being developed to achieve growth goals, expected to be shared in the coming months [34] - The focus is on retaining high-quality clients and improving churn rates through targeted market approaches [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term operating and financial growth prospects despite macro challenges [78] - The company anticipates that the streaming business will be profitable in the second half of 2024, a significant achievement compared to peers [85] - Management acknowledged the impact of inflationary pressures on operating segment income and margins [72] Other Important Information - The company has seen a strong performance from ViX, with all key performance indicators trending positively [39] - The launch of new partnerships and programming strategies has significantly increased engagement and revenue [41][42] Q&A Session Summary Question: What was the driver behind the high margin in the Other business segment? - The increase in revenue in gaming of 22% and soccer revenue growth of 13% were key drivers [81] Question: Are you revising your CapEx guidance for the year? - The estimated CapEx for the year remains around $620 million, considering FX volatility [87] Question: Were there any geographical areas that saw particularly high churn this quarter? - Management is analyzing churn reasons and addressing various factors contributing to it [83]
Grupo Televisa(TV) - 2023 Q2 - Quarterly Report
2023-05-02 23:12
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F ☒ Form 40-F Quarterly Financial Information For the month of May, 2023 | [105000] | Management commentary | 2 | | --- | --- | --- | | [110000] | General information about financial statements | 12 | | ...
Grupo Televisa(TV) - 2022 Q4 - Annual Report
2023-04-28 20:25
Financial Instruments and Risk Management - The company has entered into financial instruments to hedge against Peso depreciation and reduce exposure to inflation and high interest rates[539]. Financial Reporting Standards - The consolidated financial information for the years ended December 31, 2022, 2021, and 2020 was prepared in accordance with IFRS[540]. - Management does not expect the new IFRS standards effective from January 1, 2023, to have a material impact on consolidated financial statements[541]. - IFRS 17, effective January 1, 2023, establishes principles for the recognition, measurement, presentation, and disclosures of insurance contracts[545]. - Amendments to IAS 1 regarding the classification of liabilities as current or non-current are effective from January 1, 2023[546]. - The amendments to IFRS 16 regarding lease liability in a sale and leaseback transaction will be effective from January 1, 2024[552]. - Amendments to IAS 1 regarding non-current liabilities with covenants will be effective from January 1, 2024[553]. Impairment and Asset Valuation - The company recorded impairment adjustments for indefinite-lived intangible assets related to its Publishing business during 2022 and 2021[562]. - Long-lived assets are tested for impairment whenever events indicate that the carrying value may no longer be recoverable[563]. - The company has not recorded any significant impairment charges during the years presented[563]. - The impairment test for goodwill involves comparing the estimated fair value of reporting units to their carrying amounts, utilizing significant unobservable inputs (Level 3) within the fair value hierarchy[579]. Cash Flow and Financial Position - Net cash provided by operating activities for the year ended December 31, 2022, was Ps. 12,467.6 million, compared to Ps. 29,324.2 million in 2021[584][588]. - The company reported a net increase in cash and cash equivalents of Ps. 25,302.8 million for the year ended December 31, 2022, reversing a net decrease of Ps. 3,229.9 million in 2021[583][587]. - Net cash used in investing activities for the year ended December 31, 2022, was Ps. 42,704.9 million, primarily from proceeds of Ps. 66,095.5 million from the disposition of discontinued operations[585]. - Net cash used in financing activities for the year ended December 31, 2022, amounted to Ps. 29,769.3 million, mainly for interest payments of Ps. 8,893.0 million and prepayment of long-term loans of Ps. 6,000.0 million[586]. - The company anticipates generating sufficient cash to satisfy its long-term liquidity needs, relying on cash on hand, operating revenues, and borrowings[582]. Debt and Financing - The company entered into long-term debt agreements with two Mexican banks totaling Ps.5,500 million, with maturities between 2021 and 2023, and an interest rate range of 7.0% to 7.13%[593]. - As of December 31, 2022, the consolidated long-term debt amounted to Ps.104,240.6 million, down from Ps.121,685.7 million in 2021[604]. - The company has a total debt of Ps.106,235.4 million as of December 31, 2022, with a current portion of long-term debt of Ps.1,000 million[609]. - The company executed a revolving credit facility for up to Ps.1,000 million, maturing in 2028, to be used for general corporate purposes[606]. - The company completed a tender offer for U.S.$292.0 million of Senior Notes, with total consideration paid amounting to U.S.$294.8 million[603]. - The Company has lease liabilities recognized under IFRS 16 amounting to Ps.4,953.6 million as of December 31, 2022[620]. Board of Directors and Governance - The Board of Directors consists of 20 members, with at least 25% required to be independent directors under Mexican law[639]. - Directors are elected annually, with the latest elections held on April 26, 2023, where eleven directors were elected by Series "A" shareholders and five by Series "B" shareholders[640]. - A quorum for Board meetings requires at least 50% of directors present, increasing to 75% for meetings regarding significant acquisitions[641]. - The Board must meet at least quarterly, and meetings can be called by the Chairman or a minimum of 25% of Board members[642]. - The Board is responsible for approving the company's general strategy and key executive appointments[643]. - Directors have a duty of care and loyalty, requiring them to act in the best interests of the company and maintain confidentiality[645][646]. Compensation and Employee Matters - For the year ended December 31, 2022, the aggregate compensation paid to directors, alternate directors, and officers was approximately Ps.963.3 million (U.S.$49.5 million) using the Interbank Rate[662]. - Stockholders approved a compensation plan on April 26, 2023, allowing directors to receive U.S.$15,000 per meeting attended or an annual award equivalent to U.S.$150,000 in CPOs[663]. - As of December 31, 2022, contributions to pension and seniority premium plans for directors and officers amounted to Ps.64.0 million, with projected benefit obligations of approximately Ps.178.3 million[664]. - The company has a deferred compensation plan for certain officers of the Cable Division, with an annual cost of approximately U.S.$20 million if targets are fully met[671]. - Performance bonuses for officers are based on a mix of financial and operational objectives, with potential payouts reaching up to 120% of the target bonus if exceeded[668]. - As of December 31, 2022, the total number of employees decreased to 37,374 from 46,786 in 2021, representing a reduction of approximately 20%[690]. Transactions and Strategic Initiatives - The company disposed of its former Content business on January 31, 2022, as part of the TelevisaUnivision Transaction[623]. - The TelevisaUnivision Transaction resulted in a contribution of the former Content business for a total consideration of $4.5 billion, including $3.0 billion in cash and $1.5 billion in common and preferred shares[702]. - Following the TelevisaUnivision Transaction, the company holds a 44% equity interest in TelevisaUnivision on an as-converted basis[702]. - The company has engaged Allen & Company for advisory services related to strategic transactions, with two directors also serving as directors of Allen & Company[713].
Grupo Televisa(TV) - 2023 Q1 - Earnings Call Transcript
2023-04-26 21:53
Grupo Televisa, S.A.B. (NYSE:TV) Q1 2023 Earnings Conference Call April 26, 2023 12:00 PM ET Company Participants Alfonso de Angoitia - Co-CEO Pepe Antonio Gonzalez - CEO, Cable Luis Malvido - CEO, Sky Carlos Phillips - CFO Conference Call Participants Lucas Chaves - UBS Carlos de Legarreta - ITAU Phani Kanumuri - HSBC Luca Brendon - Bank of America Operator Good morning everyone and welcome to the Grupo Televisa's First Quarter 2023 Conference Call. Before we begin, I would like to draw your attention to t ...
Grupo Televisa(TV) - 2023 Q1 - Quarterly Report
2023-03-01 23:02
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K (Translation of registrant's name into English) Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico City, Mexico (Address of principal executive offices) (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F ☒ Form 40-F ☐ (Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)( ...
Grupo Televisa(TV) - 2022 Q4 - Earnings Call Transcript
2023-02-24 23:48
Grupo Televisa, S.A.B. (NYSE:TV) Q4 2022 Results Conference Call February 24, 2023 10:00 AM ET Company Participants Alfonso de Angoitia - Co-Chief Executive Officer Pepe Antonio Gonzalez - Chief Executive Officer of Cable Luis Malvido - Chief Executive Officer of Sky Carlos Phillips - CFO of Grupo Televisa Conference Call Participants Fred Mendes - Bank of America Leonardo Ramos - UBS Marcelo Santos - JP Morgan Carlos Legarreta - Itau Soomit Datta - New Street Research Operator Good morning, everyone, and w ...
Grupo Televisa(TV) - 2022 Q3 - Quarterly Report
2022-11-02 00:54
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of October, 2022 GRUPO TELEVISA, S.A.B. (Translation of registrant's name into English) Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico City, Mexico (Address of principal executive offices) (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 4 ...