Grupo Televisa(TV) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, consolidated revenue reached MXN 58.9 billion, representing a year-on-year decline of 5.5%, primarily due to lower revenue at Sky [7] - Operating segment income reached MXN 23 billion, showing a slight decrease of 0.6% year-on-year [7] - Free cash flow generated in 2025 was around MXN 5.9 billion, allowing for debt repayment and improving the leverage ratio to 2 times EBITDA from 2.5 times the previous year [4] Business Line Data and Key Metrics Changes - The internet subscriber base grew by approximately 47,000 in 2025, marking a turnaround after losses in 2023 and 2024 [2] - The DTC business represented nearly a quarter of total company revenue, with adjusted EBITDA accounting for approximately 20% [5] - Operating expenses at TelevisaUnivision declined by around 8% year-on-year, totaling approximately $3.2 billion [5] Market Data and Key Metrics Changes - In the U.S., advertising revenue decreased by 11%, while in Mexico, it increased by 15% year-on-year [18] - Consolidated subscription and licensing revenue decreased by 4% year-on-year, with growth in ViX offsetting losses from other areas [19] Company Strategy and Development Direction - The company is focusing on high-value customers and operational efficiencies, with plans to upgrade 6 million homes to fiber-to-the-home technology by the end of 2026 [15][20] - Deleveraging remains a core strategic priority, with a disciplined approach to CapEx aimed at generating free cash flow [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to create shareholder value through ongoing integration and operational optimization [21] - The competitive environment in Mexico has been stable, with a focus on increasing ARPU through enhanced services rather than price increases [26] Other Important Information - The company plans to suspend the payment of regular dividends in 2026 to explore opportunities in the telecom sector [20] - CapEx for 2025 was MXN 12.2 billion, equivalent to 20.7% of sales, with expectations for a similar ratio in 2026 [3][19] Q&A Session Summary Question: Could you walk us through the fiber plan and competitive environment? - The company currently has 9 million homes with fiber and plans to reach 15-16 million by the end of 2026, focusing on high-value clients to increase ARPU [25][26] Question: How does AI affect the telecom and media sides? - AI is being integrated into customer interactions and network operations, with plans to transition to full AI-based customer service by 2026 [40] Question: What opportunities are being explored in the telecom sector? - The company is actively exploring opportunities but cannot disclose specifics at this time, while continuing to optimize operations for better efficiency [49] Question: What is the outlook for Sky given the disconnections? - Sky is expected to continue generating cash flow despite declining revenues, with a focus on maintaining low costs [55]