Grupo Televisa (TELEVISACPO) Q3 2024 earnings summary

Executive summary

• Achieved major milestones including cable segment restructuring, Sky integration, and ViX DTC business profitability within two years, outpacing industry peers.

• Q3 2024 revenue declined 6.4% year-over-year, mainly due to a 13.2% drop at Sky; operating segment income fell 4.7% with a 37.1% margin.

• Net income attributable to stockholders was Ps.666.5 million, reversing a net loss of Ps.918.5 million in Q3 2023.

• Focused on operational efficiencies, integration, and free cash flow generation across all business units.

• The Board approved an administrative leave for Executive Chairman Emilio Azcárraga Jean amid a DOJ investigation.

Financial highlights

• Cable EBITDA margin improved by nearly 400 bps to 39.4% year-over-year; cable CapEx down 38% year-on-year.

• Consolidated Q3 2024 revenue: Ps 15,362.8 million, down 6.4% year-over-year.

• Operating cash flow (OCF) for Q3 2024 increased by 6.8% with a 21.5% margin; OCF for the first nine months grew 26.8% with a 24.1% margin.

• Cable operating cash flow (EBITDA minus CapEx) exceeded MXN 8.8 billion, up almost 40% year-on-year, representing 25% of sales.

• Sky OpEx cut by 8.5% and CapEx by 45% year-on-year; operating cash flow margin up 240 bps year-to-date.

Outlook and guidance

• Expect continued margin expansion and strong free cash flow for the full year, with CapEx below revised budget.

• Integration of Sky and cable to be completed by year-end, with full synergy benefits expected in 2025.

• Focus remains on value customers, churn reduction, and efficiency in Cable.

• Sky aims to re-activate commercial strategy post-integration with Cable, targeting churn reduction and new service launches.

• 2024 CapEx budget set at US$650 million, with US$550 million for Cable (including US$30 million for Acapulco network reconstruction, expected to be reimbursed by insurance).