Grupo Televisa(TV)2025-02-21 19:23Financial Data and Key Metrics Changes - Grupo Televisa's consolidated revenue for 2024 reached MXN 62.3 billion, representing a year-on-year decline of 6% [20] - Operating segment income for the year was MXN 23.2 billion, a decrease of 7.5% year-on-year, primarily due to lower revenue at Sky [20] - Consolidated operating cash flow was MXN 14.3 billion in 2024, growing by over 28% year-on-year, with a cash flow margin increase of 600 basis points [13] - Free cash flow generated was over MXN 10.1 billion, representing a free cash flow yield of around 43% [14] Business Line Data and Key Metrics Changes - The Cable segment's EBITDA margin improved by over 300 basis points to 39% in 2024 compared to Q3 2023 [8] - Cable CapEx was optimized by 37% to almost 5.1 billion, marking the fourth consecutive year of top-line growth [30] Market Data and Key Metrics Changes - In the U.S., TelevisaUnivision's revenue grew by 2%, while revenue in Mexico increased by 8% [30] - The Cable segment ended the year with a network of 19.9 million homes, having passed around 73,000 new homes in Q4 [22] - Sky lost 270,000 revenue-generating units in Q4, primarily from prepaid subscribers [25] Company Strategy and Development Direction - The company focused on four key goals in 2024: streamlining OpEx, acquiring AT&T's minority stake in Sky, spinning off non-core businesses, and scaling the DTC business [6] - The integration of Sky with the Cable segment aimed to strengthen competitive and financial positions through synergies and efficiencies [11] - The company plans to grow its network footprint by passing close to 1 million homes in 2025, with a CapEx budget of 1 billion in revenue in its second year of operations [65] Other Important Information - The spin-off of Ollamani was completed on February 20, 2024, unlocking value for shareholders with a market cap of around 2.1 billion of debt maturing in 2026 and paid down 150 million in debt using proceeds from the sale of non-core assets [31] Q&A Session Summary Question: Can you provide color on the lower than expected CapEx allocation? - Management indicated that the lower CapEx was due to more efficient deployment and inventory management, with a planned CapEx of 665 million for 2025 to support growth [38][41] Question: Can you share your thoughts on M&A within the Cable space? - Management noted the need for market consolidation in the industry but emphasized a focus on improving operations rather than pursuing M&A at this time [37] Question: Can you comment on the competitive landscape in the Cable segment? - Management acknowledged aggressive promotional activity from competitors but emphasized a focus on higher value customers to manage churn effectively [45][48] Question: How do you see growth perspective versus profitability for ViX going forward? - Management expressed optimism about ViX's growth and profitability, highlighting its successful monetization and engagement metrics [66] Question: What are your priorities for cash deployment given upcoming bond maturities? - Management plans to use excess cash generated in 2024 to address upcoming maturities while maintaining a strong liquidity position [71][73] Question: How do you see the outlook for potentially increasing broadband prices? - Management does not anticipate price increases in the near term, focusing instead on upselling additional services to existing customers [88]