Financial Data and Key Metrics Changes - Grupo Televisa's consolidated operating segment income margin expanded by 100 basis points year-on-year to 38.2%, driven by a year-on-year OPEX reduction of around 7% [3] - The company generated approximately MXN 4.2 billion in free cash flow, leading to a reduction in leverage ratio from 2.5 times EBITDA at the end of last year to 2.1 times [4] - TelevisaUnivision's third quarter revenue was $1.3 billion, a decline of 3% year-on-year, while adjusted EBITDA increased by 9% to $460 million [13] Business Line Data and Key Metrics Changes - The broadband gross ads improved, resulting in 22,000 net ads during the third quarter, compared to 6,000 in the second quarter [8] - Revenue from residential operations decreased by only 0.7% year-on-year to MXN 10.6 billion, marking the best quarter in two years for revenue growth [10] - TelevisaUnivision's consolidated subscription and licensing revenue increased by 3% year-on-year, driven by ViX's premium tier [14] Market Data and Key Metrics Changes - In the U.S., advertising revenue decreased by 11%, while in Mexico, it increased by 3% year-on-year, primarily due to private and public sector ad sales [14] - The company ended the quarter with TelevisaUnivision's leverage at 5.5 times EBITDA, an improvement from 5.9 times in the previous quarter [6] Company Strategy and Development Direction - The company is focusing on attracting and retaining value customers in cable, which has led to growth in the internet subscriber base [2] - A disciplined CAPEX deployment approach is being maintained, with a budget of $600 million for 2025, implying a CAPEX to sales ratio of less than 20% [3] - Deleveraging remains a core strategic priority for TelevisaUnivision, with management committed to strengthening the capital structure [6] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing integration between Easy and Sky, which is expected to create greater value for shareholders [15] - The company views the current market dynamics as rational, with price increases being implemented by competitors, except for Telmex [32] - Management believes that the margins achieved in TelevisaUnivision are sustainable due to efficient content production and ownership of a large content library [50] Other Important Information - The company has successfully refinanced $2.3 billion of debt, enhancing liquidity and extending maturity profiles [6] - The partnership with Formula One is expected to provide a competitive advantage and drive subscriber growth [9] Q&A Session Summary Question: CAPEX outlook for 2026 and insurance claim related to Hurricane Otis - Management indicated that the CAPEX guidance for 2025 is around $600 million and confirmed that the insurance claim related to Hurricane Otis is the last portion expected [17][18] Question: Transition of local news content to ViX and advertising investments - Management acknowledged the importance of local news and is exploring its inclusion in the streaming platform while also discussing media for equity deals with startups [21][23] Question: Short-term and medium-term competition dynamics in cable - Management noted that the market is close to full penetration, focusing on high-end clients to increase ARPU, while Sky is viewed as a cash flow generator despite declining subscriber numbers [27][30] Question: Expectations for cable growth rates and sustainability of margins - Management expects diminishing net ads as market penetration increases but believes in ongoing margin improvements through technology and operational efficiencies [41][43]

Financial Data and Key Metrics Changes - Grupo Televisa's consolidated operating segment income margin expanded by around 80 basis points to 38.1% in the first half of the year, driven by a year-on-year OpEx reduction of around 7% [3] - The leverage ratio improved to 2.2x EBITDA from 2.4x at the end of the first quarter, primarily due to free cash flow generation [4] - Televisa Univision's second quarter revenue declined by 4% year on year, while adjusted EBITDA increased by 10% [14][15] Business Line Data and Key Metrics Changes - Cable operations experienced a churn rate below the historical average of 2%, with broadband growth improving sequentially, resulting in over 6,000 net adds in the second quarter [9] - Net revenue from cable operations decreased by 3.1% year on year, while enterprise operations revenue increased by 3% year on year [10] - Sky's revenue declined by 16.3% year on year, primarily due to a lower subscriber base, with a loss of 347,000 revenue-generating units [12] Market Data and Key Metrics Changes - Televisa Univision's advertising revenue in the U.S. decreased by 2%, while in Mexico, it declined by 13% year on year, driven by the depreciation of the Mexican peso [16] - Subscription and licensing revenue in the U.S. increased by 9%, while in Mexico, it fell by 23% year on year [17] Company Strategy and Development Direction - The company is focusing on attracting and retaining value customers in cable, aiming for a disciplined CapEx deployment to enhance free cash flow generation [3][4] - Deleveraging remains a core strategic priority for Televisa Univision, with management committed to strengthening the capital structure [6] Management Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing transformation in the industry, emphasizing the importance of maintaining a bundled distribution and content strategy for now [20][21] - The company is confident in its ability to generate cash from Sky, despite the expected decline in subscribers, due to the already embedded cost structure [27][29] Other Important Information - The company has successfully negotiated with suppliers, leading to a reduction in the CapEx budget from $665 million to $600 million [4][32] - Televisa Univision's VIX platform has surpassed 10 million subscribers, indicating strong engagement and growth [5] Q&A Session Summary Question: How does Televisa Univision view the separation between content streaming and cable TV in the U.S.? - Management believes it makes sense to keep distribution and content bundled for now, as the distribution business remains a significant revenue source [20][21] Question: Concerns regarding Sky's disconnections and potential cost burdens? - Management clarified that the integration of Sky has minimized cost burdens, and disconnections do not generate additional CapEx or OpEx [24][27] Question: Expectations for CapEx and broadband growth in the second half of the year? - Management updated CapEx guidance for 2025 to $600 million, emphasizing a focus on high-end subscribers to maintain low churn rates [32][34] Question: Details on the commercial strategy focusing on high-end customers? - The competition in Mexico is rational, with stable pricing, allowing the company to focus on retaining high-value customers [40] Question: Efforts to enhance digital revenue realization? - The company is enhancing digital sales, particularly in the U.S., and has appointed a new head of sales with expertise in the digital market [46][48] Question: Concerns regarding U.S. tariff policy affecting programming produced in Mexico? - Digital content is exempt from tariffs under the USMCA, providing a solid ground for the company despite potential policy changes [52]

Financial Data and Key Metrics Changes - Grupo Televisa's consolidated operating segment income margin expanded by around 80 basis points to 38.1% in the first half of the year, driven by a year-on-year OpEx reduction of around 7% [3] - The leverage ratio improved to 2.2x EBITDA at the end of the second quarter from 2.4x at the end of the first quarter, primarily due to free cash flow generation [4] - Televisa Univision's second quarter revenue declined by 4% year on year, while adjusted EBITDA increased by 10% [12][13] Business Line Data and Key Metrics Changes - Cable operations ended June with a network of almost 20 million homes, with a monthly churn rate falling below the historical average of 2% [7] - Broadband growth improved with over 6,000 net adds during the second quarter, compared to disconnections of around 6,000 in the first quarter [8] - Sky's second quarter revenue declined by 16.3% year on year, primarily due to a lower subscriber base, resulting in a loss of 347,000 revenue-generating units [11] Market Data and Key Metrics Changes - Televisa Univision's advertising revenue in the U.S. decreased by 2%, while in Mexico, it declined by 13% year on year, driven by the depreciation of the Mexican peso [14] - Subscription and licensing revenue in the U.S. increased by 9%, while in Mexico, it fell by 23% [15] Company Strategy and Development Direction - The company is focusing on attracting and retaining value customers in cable, which has stabilized the Internet subscriber base [3] - A disciplined CapEx deployment approach is being maintained to focus on free cash flow generation, with a reduction in the CapEx budget from $665 million to $600 million [4][26] - Deleveraging remains a core strategic priority for Televisa Univision, with management committed to strengthening the capital structure [6] Management Comments on Operating Environment and Future Outlook - Management believes that the distribution business remains strong, with ongoing analysis of alternatives to generate value [18] - The integration of Sky is nearing completion, with no expected burden from disconnections due to a variable cost structure [20][22] - The company is enhancing digital sales and monetization strategies, particularly in the U.S. market [38][40] Other Important Information - The company generated around ARS 3.6 billion in free cash flow, allowing for the prepayment of a bank loan due in 2026 [4] - The efficiency plan at Televisa Univision is proving successful, with total operating expenses declining by around 13% year on year [5] Q&A Session Summary Question: How does Televisa Univision view the separation between content streaming and cable TV in the U.S.? - Management sees value in keeping distribution and content bundled for now, as it remains a significant revenue business [18] Question: What are the expectations for CapEx and broadband adds in the second half of the year? - CapEx guidance has been updated to $600 million, and churn is expected to remain low due to a focus on high-end subscribers [26][27] Question: How is the competition evolving in the market? - The competition in Mexico is rational, with no significant price swings, which supports the company's strategy [32]