Grupo Televisa S.a.b Stock Earnings Reports

Key points for investors: Grupo Televisa's telecom turnaround continues to show tangible progress. Cable/Izzi metrics: FTTH rollout is on track (12 million homes passed to date, ~60% footprint FTTH; target full FTTH by Q2 2027), internet subscriber base stabilized and grown for five consecutive quarters, churn under 2% for five quarters (lowest in 10 quarters in Q2), broadband net adds softer in Q2 (9.4k) due to a price increase, competitive promotions and weather, video losses improving, and mobile net adds remain solid (72k). Residential + enterprise revenue improved (H1 MXN 23.7bn, +2.6% YoY); segment revenue down 3% YoY to MXN 14.3bn but operating segment income rose 5% to MXN 6.0bn with operating segment margin expanding to 41.8% (310 bps YoY) driven by OpEx reductions and Sky–Izzi synergies. Cost and efficiency accomplishments over three years: annual OpEx down to MXN 34.5bn (-18.4% vs three years ago) despite inflation; headcount reduced from ~34k to ~25k; programming costs down ~20%; corporate expenses down ~65% to ~400m. CapEx discipline: average annual CapEx ~MXN 11.3bn (36.5% lower than prior period); focus on FCF generation—cumulative free cash flow MXN 16.4bn since strategy change (MXN 20.6bn excluding FTTH upgrade), leverage improved to ~1.6x EBITDA (from 2.4x). Q2 CapEx was higher due to FTTH upgrades (MXN 3.6bn, 25.3% of sales); operating cash flow (EBITDA minus CapEx) for Cable & Sky was MXN 2.4bn (16.6% of sales). TelevisaUnivision: consolidated revenue $1.3bn (+10% YoY, FX-aided), Mexico revenue +53% (World Cup driven), U.S. revenue -11% (no World Cup); consolidated advertising -9% YoY (U.S. weakness), but subscription & licensing +40% YoY (including ~$90m World Cup sublicensing in LatAm, strong ViX premium growth). Adjusted EBITDA $388m (-3%). ViX: record subscriber additions and highest quarterly subscription revenue, World Cup materially boosted DTC revenue. Balance sheet: TelevisaUnivision cash $766m, available credit ~$770m, net debt/EBITDA ~5.5x (slightly improved). Management remains disciplined on M&A, open to consolidation opportunities depending on economics and structure (may include partners and variable stake sizes); capital allocation priority remains free cash flow and deleveraging. Management sees Starlink as a potential complement (B2B/B2C partnerships) rather than an immediate mass-market threat in Mexico. AI is being deployed across production and operations; Izzi is building internal AI infrastructure to control token costs and data security.