Grupo Televisa (TELEVISACPO) Q2 2024 earnings summary

Executive summary

• Revenue declined 5.8% year-over-year to Ps.15,720.3 million, mainly due to a 13.3% drop at Sky; operating segment income fell 7.7% to Ps.5,950.1 million, with a margin of 37.7%.

• Corporate restructuring in the cable segment improved profitability by nearly 400 basis points since Q3 2023, with ongoing efficiency measures expected to further expand EBITDA margin.

• Operating cash flow (OCF) increased 37.8% year-over-year, reaching a 26.6% margin, driven by focused capex deployment.

• Acquisition of AT&T's 41.3% stake in Sky completed, making Televisa the sole owner and enabling integration and synergy realization.

• The spinoff of Ollamani was completed, unlocking shareholder value and streamlining the asset structure.

Financial highlights

• Consolidated revenue for Q2 2024 was Ps. 15,763 million, down 5.8% year-over-year; operating segment income was Ps. 5,950 million, down 7.7%, with a 37.7% margin.

• Operating cash flow (EBITDA minus CAPEX) exceeded MXN 6.4 billion in H1 2024, up nearly 50% year-on-year, representing 27% of sales.

• OCF for Q2 2024 was Ps. 4.2 billion, up from Ps. 3.0 billion in Q2 2023; OCF margin improved to 26.6%.

• Corporate expenses decreased 45% year-over-year, mainly due to lower share-based compensation.

• Finance expense, net, decreased by Ps.240.3 million (28.9%) to Ps.590.0 million, driven by lower debt and higher interest income.

Outlook and guidance

• 2024 CAPEX budget for cable cut to $590 million, including $30 million for Acapulco network reconstruction, with insurance reimbursement expected.

• Full-year organic operating cash flow for cable segment projected to rise 16% year-on-year.

• Ongoing integration of Sky and cable expected to yield 15% annual OPEX and CAPEX savings for Sky.

• DTC business ViX is on track to achieve profitability in the second half of 2024, with user growth, engagement, and reduced churn ahead of plan.

• Free cash flow generation and leverage reduction are key objectives for year-end 2024.