Grupo Televisa, S.A.B. (TV) AI Stock Analysis

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Grupo Televisa, S.A.B.

(NYSE:TV)

Rating:45Neutral

Price Target:―

Grupo Televisa faces considerable financial obstacles, with declining revenues, persistent losses, and liquidity issues being key risks. While technical indicators suggest some bearish sentiment, the earnings call highlights operational improvements and cost efficiencies. The high dividend yield provides some appeal, but overall, the stock presents significant risks due to its financial instability and market challenges.

Positive Factors

Currency and Revenue

Peso revenue exposure from a U.S. investor perspective is alleviated by having a significant portion of TelevisaUnivision revenues, and advertising, attributable to the U.S. market rather than Mexico.

Debt Management

Despite a challenging advertising market, year-end 2025 TelevisaUnivision net debt should decline with accelerating progress thereafter and no maturities until June 2027.

Financial Performance

Televisa’s equity market cap blatantly dismisses its global leadership in Spanish language television via the TelevisaUnivision JV for both linear and ViX streaming, as well as normalized capacity to generate significant free cash flow from the izzi and Sky operations within Mexico.

Negative Factors

Economic Slowdown

Any economic slowdown dampening consumer product, financial services, automotive, and entertainment categories with high Hispanic market appeal would be most significant to TelevisaUnivision.

Trade Barriers

The new 25% tariff implementations are admittedly a major impediment to remedying Televisa’s chronic stock undervaluation.

Grupo Televisa, S.A.B. (TV) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$980.12M

Dividend Yield4.45%

Average Volume (3M)2.19M

Price to Earnings (P/E)―

Beta (1Y)0.89

Revenue Growth-17.83%

EPS Growth28.62%

CountryUS

Employees27,077

SectorCommunication Services

Sector Strength93

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.03

Shares Outstanding477,500,000

10 Day Avg. Volume2,410,948

30 Day Avg. Volume2,190,142

Financial Highlights & Ratios

PEG Ratio-0.31

Price to Book (P/B)0.04

Price to Sales (P/S)0.00

P/FCF Ratio0.28

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.80

Price Target Upside89.05% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Grupo Televisa, S.A.B. Business Overview & Revenue Model

Company DescriptionGrupo Televisa, S.A.B. operates as a media company in the Spanish-speaking world. It operates in four segments: Cable, Sky, Content, and Other Businesses. The Cable segment operates cable multiple system and telecommunication facilities; provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising sales; and offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Content segment produces television programming and broadcasts Channels 2, 4, 5, and 9; sells advertising time on programs; provides Internet services; and produces television programming and broadcasting for local television stations in Mexico. This segment also offers programming services for cable and pay-per-view television companies in Mexico, other countries in Latin America, the United States, and Europe; and licenses and syndicates television programming. The Other Businesses segment is involved in sports and show business promotion, soccer, feature film production and distribution, gaming, publishing, and publishing distribution businesses. The company was founded in 1969 and is headquartered in Mexico City, Mexico.

How the Company Makes MoneyGrupo Televisa makes money primarily through advertising, subscriptions, and content licensing. Advertising revenue is generated from selling commercial airtime on its television channels and digital platforms. Subscription fees are collected through its cable and satellite television services, offering customers a range of channels and on-demand content. Additionally, Televisa earns from licensing its content to third-party broadcasters and streaming platforms worldwide. Partnerships with other media companies and joint ventures also contribute to its revenue, as does its publishing business, which includes the sale of magazines and other print media.

Grupo Televisa, S.A.B. Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 0.50%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance with strong operational efficiencies and profitability improvements in some segments, but faced significant revenue declines and subscriber losses in others.

Q1-2025 Updates

Positive Updates

Improved Operating Margins

Consolidated operating segment income margin expanded by 100 basis points year-on-year, driven by an 8% reduction in OpEx.

DTC Profitability and Growth

TelevisaUnivision's DTC business, ViX, achieved profitability and showed double-digit growth in both AVOD and SVOD tiers.

Resilient EBITDA Growth

TelevisaUnivision's adjusted EBITDA increased by 5% year-on-year, with a 10% increase excluding FX impacts, despite an 11% revenue decline.

Debt Reduction and Leverage Improvement

Grupo Televisa reduced leverage ratio from 2.5x to 2.4x EBITDA, paying off $219 million in senior notes.

Negative Updates

Revenue Decline

TelevisaUnivision's first quarter revenue decreased by 11% year-on-year due to the absence of the Super Bowl broadcast and FX impacts.

Subscriber Losses in Sky and Cable

Sky lost 331,000 revenue-generating units, and Cable saw a 3% decrease in net revenue from residential operations.

Decline in Advertising Revenue

Consolidated advertising revenue decreased by 13% year-on-year, with a 6% decline in the U.S. excluding the Super Bowl.

Enterprise Revenue Decline

Net revenue from enterprise operations declined by 4.5% year-on-year, due to the conclusion of a significant government contract.

Company Guidance

In the first quarter of 2025, Grupo Televisa and TelevisaUnivision demonstrated notable progress across various financial metrics. Grupo Televisa focused on operational efficiencies, with an OpEx reduction of around 8% year-on-year, contributing to an expansion of the consolidated operating segment income margin by approximately 100 basis points. The company also reported a 5.7% year-on-year decline in segment revenue to MXN15.1 billion, while operating segment income fell by 3.1% to MXN5.7 billion. Meanwhile, TelevisaUnivision achieved a 5% increase in adjusted EBITDA despite an 11% drop in revenue, due to proactive cost optimization measures. The company's leverage ratio improved slightly from 5.9x to 5.8x EBITDA, while Grupo Televisa's leverage ratio decreased from 2.5x to 2.4x EBITDA, supported by a free cash flow generation of around MXN2.2 billion. Both entities continue to focus on strategic integrations and cost efficiencies to drive future profitability and shareholder value.

Grupo Televisa, S.A.B. Financial Statement Overview

Summary

Grupo Televisa is experiencing significant financial challenges. Declining revenues, persistent net losses, and a high debt-to-equity ratio highlight financial instability. The lack of operating and free cash flow further underscores liquidity concerns.

Income Statement

Negative

Grupo Televisa's income statement shows declining revenue and net income over the years, with a significant drop in revenue from 2023 to 2024 and persistent net losses. The gross profit margin remains stable but low, and the EBIT is negative in the most recent year, indicating operational challenges. Revenue growth is negative, reflecting declining sales performance.

Balance Sheet

Neutral

The balance sheet indicates a high debt-to-equity ratio, suggesting substantial leverage, which could pose risks if revenue continues to decline. Stockholders' equity has decreased, impacting the equity ratio negatively. Despite these challenges, the company maintains significant cash reserves, which provide some cushion against financial instability.

Cash Flow

Negative

The cash flow statement shows a concerning trend with zero reported operating and free cash flows in the latest year, which raises liquidity concerns. Historically, free cash flow has been volatile and mostly negative, which aligns with the ongoing financial challenges and operational losses.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
62.26B	73.77B	75.53B	103.52B	97.36B
	Gross Profit
21.14B	24.87B	26.72B	43.96B	40.37B
	EBIT
-2.84B	2.66B	4.42B	22.18B	17.53B
	EBITDA
16.35B	22.99B	18.53B	32.97B	27.69B
	Net Income Common Stockholders
-8.25B	-8.42B	44.71B	6.06B	-1.25B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.49B	32.84B	51.14B	25.79B	29.06B
	Total Assets
251.48B	262.67B	299.11B	292.90B	271.25B
	Total Debt
108.34B	95.83B	113.61B	135.47B	131.85B
	Net Debt
62.14B	63.24B	62.48B	109.88B	102.79B
	Total Liabilities
139.82B	128.00B	154.98B	197.11B	183.31B
	Stockholders Equity
102.42B	119.28B	128.31B	80.49B	73.44B
Cash Flow		Free Cash Flow
0.00	-1.38B	-6.65B	4.23B	11.79B
	Operating Cash Flow
0.00	15.20B	12.47B	29.40B	33.16B
	Investing Cash Flow
0.00	-15.76B	42.70B	-19.04B	-15.35B
	Financing Cash Flow
0.00	-17.75B	-29.77B	-13.84B	-16.20B

Grupo Televisa, S.A.B. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.01

Price Trends

50DMA

1.82

Positive

100DMA

1.87

Positive

200DMA

2.00

Positive

Market Momentum

MACD

0.06

Negative

RSI

58.85

Neutral

STOCH

70.69

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TV, the sentiment is Positive. The current price of 2.01 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.82, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 70.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TV.

Grupo Televisa, S.A.B. Risk Analysis

Grupo Televisa, S.A.B. disclosed 39 risk factors in its most recent earnings report. Grupo Televisa, S.A.B. reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

We are subject to a variety of global laws, regulations, and rules related to privacy and personal data protection, which are evolving, and increased public scrutiny of privacy and security issues could result in increased government regulation, industry standards, and other legal obligations that could adversely affect our business. Q4, 2022

Grupo Televisa, S.A.B. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	81 Outperform	$16.18B	15.92	7.95%	3.88%	-5.69%	-0.05%
TKC	80 Outperform	$5.49B	13.15	6.74%	2.41%	14.09%	-11.43%
AMX	71 Outperform	$53.53B	32.14	8.54%	2.88%	0.19%	-49.68%
TEF	64 Neutral	$29.63B	―	-0.55%	4.56%	1.18%	―
TEO	61 Neutral	$4.53B	22.06	3.99%	―	-12.77%	40.80%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
TV	45 Neutral	$980.12M	―	-7.49%	4.45%	-17.83%	28.62%

* Communication Services Sector Average

Performance Comparison

Grupo Televisa, S.A.B.

2.01

-1.05

-34.31%

AMX

America Movil

17.57

-1.04

-5.59%

TEO

Telecom Argentina

10.37

2.27

28.02%

VIV

Telefonica Brasil

9.91

1.65

19.98%

TEF

Telefonica

5.25

0.98

22.95%

TKC

Turkcell Iletisim

6.38

-0.34

-5.06%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.