Grupo Televisa (TELEVISACPO) Q1 2025 earnings summary

Executive summary

• Revenue declined 6.1% year-over-year to Ps.14,974 million, mainly due to a sharp drop in Sky segment revenue and a 3.1% decrease at Cable.

• Operating segment income fell 3.1% to Ps.5,702 million, but margin improved to 37.8% from 36.8% due to efficiencies and synergies.

• Operating cash flow grew 2.2% year-over-year, with margin expanding 200 basis points to 26.0% from OpEx and CapEx optimizations.

• Strategic focus on attracting and retaining value customers, OpEx and CapEx efficiencies, and integration of Izzi and Sky to drive synergies and margin expansion.

• Net income attributable to stockholders dropped to Ps.319.8 million from Ps.951.8 million, reflecting a significant unfavorable swing in other income/expense and lower discontinued operations income.

Financial highlights

• Consolidated revenue: Ps.14,974 million, down 6.1% year-over-year; operating segment income: Ps.5,702 million, down 3.1% year-over-year; margin at 37.8%.

• Operating cash flow: Ps.3,939 million, up 2.2% year-over-year; margin at 26.0%.

• Net income margin fell to 2.2% from 6.0% year-over-year.

• Finance expense, net, decreased by Ps.704.7 million (62.2%) to Ps.428.7 million, driven by lower debt and gains on derivatives.

• Capital expenditures for the quarter were US$87.0 million (Ps.1,777.0 million).

Outlook and guidance

• CapEx target for 2025 set at US$665 million, with heavier deployment in later quarters and focus on higher investment returns.

• Expectation to reach 1 million homes passed for fiber in 2025, with seasonality leading to a slower first quarter.

• Ongoing focus on margin improvement, operational efficiencies, and value customer retention, especially in Cable.

• Ongoing sustainability initiatives include emission-free energy and digital inclusion for SMEs.

• Sky integration with Cable expected to reduce churn and enable cross-selling.