Cost-Cutting Has Helped Stabilize Televisa, but Mexican Broadband Market Still Needs Consolidation

Not much is going well for Televisa, and the road ahead looks difficult. The firm is focused primarily on Mexican telecom, a highly competitive market that would benefit greatly from consolidation. The firm also holds a minority interest in TelevisaUnivision, the largest Spanish-language media company globally but a small player versus streaming giants like Netflix. We expect Televisa to eke out growth in the coming years while keeping a tight grasp of operating costs and capital investment. Still, it doesn’t entirely control the path forward, which will likely cause continued volatility in financial performance and the stock price.