Grupo Televisa(TV) - 2023 Q2 - Earnings Call Transcript

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]