Grupo Televisa(US:TV)2026-02-27 16:02Financial 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 [8] - Operating segment income reached MXN 23 billion, showing a slight decrease of 0.6% year-on-year [8] - Free cash flow generated in 2025 was around MXN 5.9 billion, leading to a reduction in the leverage ratio to 2x EBITDA from 2.5x 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 broadband gross adds delivered 25,000 net adds during the fourth quarter, compared to 22,000 in the third quarter [9] - Sky's fourth quarter revenue declined by 16.8% year-on-year to MXN 2.8 billion, primarily due to a lower subscriber base [13] 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, driven by strong growth in ViX [17] - Consolidated subscription and licensing revenue decreased by 4% year-on-year, with growth in ViX offsetting losses from other areas [18] Company Strategy and Development Direction - The company is focusing on attracting and retaining high-value customers, with a disciplined approach to CapEx aimed at generating free cash flow [2][3] - Plans to upgrade 6 million homes to fiber-to-the-home technology by the end of 2026, aiming for 75% of the total footprint to be fiber-based [15][24] - The strategy includes a focus on operational efficiencies and integration between Izzi and Sky to enhance synergies [3][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create shareholder value through ongoing integration and operational optimization [20] - The competitive environment in Mexico has been stable, with a focus on increasing average revenue per user (ARPU) through enhanced services rather than price increases [25] - The company is exploring opportunities in the telecommunications sector, although specifics were not disclosed [45] Other Important Information - The company plans to suspend the payment of regular dividends in 2026 to focus on growth opportunities [19] - Total CapEx investments for TelevisaUnivision were $119 million for the full year, with expectations to maintain similar levels in 2026 [18] Q&A Session Summary Question: Could you walk us through the fiber plan and the competitive environment? - The fiber deployment currently reaches 9 million homes, with a target of 15-16 million by the end of 2026, representing 75% of the existing network [24] - The competitive environment has been stable, with ARPU increasing due to better services rather than price hikes [25] Question: How does AI impact both telecom and media sides? - AI is being utilized in media production, including script writing and production efficiency, with plans to produce over 300 micro novellas using AI [36] - In telecom, AI will enhance customer interactions and operational efficiency, transitioning to a fully AI-based customer service model by 2026 [38] Question: What are the opportunities being explored in the telecom sector? - The company is actively exploring opportunities in telecommunications but cannot disclose specifics at this time [45] - Management emphasized ongoing optimization of operations to sustain strong margins [46] Question: What is the outlook for Sky given the disconnections? - Sky's revenue is expected to decline due to market conditions, but it will continue to generate cash flow as a streamlined business [52]