Grupo Televisa, S.A.B. ((TV)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Grupo Televisa’s recent earnings call painted a mixed picture, highlighting both significant achievements and notable challenges. The company showcased its operational efficiency and subscriber growth in certain segments, alongside strong free cash flow generation. However, it also faced substantial hurdles, particularly with declining revenues in Sky and TelevisaUnivision, as well as difficulties in maintaining video subscribers.
Internet Subscriber Growth
Grupo Televisa’s strategic focus on value customers in the cable segment has borne fruit, with the Internet subscriber base growing in the first nine months of 2025 compared to the end of 2024. This growth underscores the effectiveness of the company’s targeted approach in attracting and retaining subscribers.
Operational Efficiency
The integration between Izzi and Sky, along with implemented operational expenditure efficiencies, resulted in a 100 basis point expansion in the operating segment income margin to 38.2%. This was driven by a notable 7% year-on-year reduction in operating expenses, showcasing the company’s commitment to improving its financial performance.
Free Cash Flow and Debt Repayment
Grupo Televisa generated approximately MXN 4.2 billion in free cash flow, which facilitated the prepayment of a bank loan due in 2026. This financial maneuver reduced the company’s leverage ratio from 2.5x to 2.1x EBITDA, reflecting a strengthened balance sheet.
TelevisaUnivision’s Efficiency Plan
TelevisaUnivision achieved significant cost savings by reducing operating expenses by over $400 million in 2025, marking a 12% year-on-year decline. This resulted in $300 million in savings, highlighting the effectiveness of their efficiency plan.
Positive Mobile Subscriber Growth
The company added 94,000 net mobile subscribers in the third quarter, marking an improvement from previous quarters. This growth was driven by enhancements in MVNO service offerings, indicating a positive trend in the mobile segment.
Improved Cable Enterprise Revenue
Enterprise operations revenue reached MXN 1.1 billion, a 7.7% year-on-year increase, marking the best quarter in three years for revenue growth. This improvement highlights the company’s success in bolstering its enterprise segment.
Sky Subscriber Decline
Despite successes in other areas, Grupo Televisa faced a significant challenge with Sky, losing 329,000 revenue-generating units, primarily from prepaid subscribers. This resulted in an 18.2% year-on-year revenue decline, underscoring the difficulties in this segment.
Decline in TelevisaUnivision Revenue
TelevisaUnivision’s third-quarter revenue declined by 3% year-on-year to $1.3 billion, with advertising revenue in the U.S. down 11%. This decline reflects ongoing challenges in the media landscape.
Challenges in Video Subscribers
The company lost 43,000 video subscribers in the third quarter, although this was an improvement compared to previous quarters. This indicates a persistent challenge in maintaining video subscriber numbers.
Forward-Looking Guidance
Looking ahead, Grupo Televisa remains focused on operational efficiencies and strategic partnerships, such as its multiyear deal with Formula 1. The company aims to continue growing its Internet subscriber base and improving its financial metrics, with a particular emphasis on reducing leverage and enhancing its operational framework.
In summary, Grupo Televisa’s earnings call highlighted a balanced narrative of achievements and challenges. While the company made strides in operational efficiency and subscriber growth, it continues to face significant hurdles in certain segments. The forward-looking guidance suggests a strategic focus on partnerships and efficiency improvements to navigate these challenges.