Company Reports

Televisa made gradual progress in improving revenue growth during the second quarter. Core telecom revenue grew 1.8% year over year, up from 0.9% last quarter, the best pace in three years. Sky remains a drag on the consolidated business, with sales down 20% as customers migrate to other services.

Televisa is primarily a Mexican broadband provider operating in 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.

Televisa's sales declined 3% during the first quarter, the best result in nearly three years. With four straight quarters of broadband customer additions, cable revenue returned to growth, up 1%. The decline at Sky continues to worsen. The EBITDA margin expanded sharply to 41% from 37% a year ago.

The pace of sales declines at Televisa continued to moderate during the fourth quarter, with revenue down 4.5%. Under the firm's new segment structure, residential fixed-line revenue was down less than 1%. The board has suspended the dividend as it explores options in the Mexican telecom market.

Not much is going well for Televisa, and the road ahead looks difficult. The firm is primarily a Mexican broadband provider operating in 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.

Televisa reported a 5% sales decline during the third quarter, slightly better than the 6%-7% drop over the prior 18 months. Improvement within the core cable business was more notable, with sales growing year over year for the first time in two years, albeit less than 0.1%.

Televisa's sales fell 6% year over year during the second quarter, but signs of stability are emerging. The firm added 6,000 net broadband customers after losing 91,000 over the prior two quarters. Cost-cutting outpaced the revenue decline, lifting EBITDA by 1%.

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.

Televisa's results improved versus a rough prior quarter, losing 6,000 net broadband customers compared with 85,000. Total revenue declined 6% year over year. Cost-cutting kicked into high gear, though, especially in the Sky business and corporate functions, limiting the EBITDA decline to 2%.

Televisa posted ugly fourth-quarter results. After a year of small gains, the firm lost 85,000 net broadband customers during the quarter. With continued heavy customer losses at Sky, total revenue declined 7% year over year. On the positive side, cost-cutting has helped preserve margins.

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.

Televisa continues to struggle, with revenue down 6% year over year in the third quarter. The core cable business has improved, but the Sky satellite business remains challenged. Margins and cash flow expanded compared with a year ago thanks to strong expense management.

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.

Televisa delivered weak results during the second quarter as it worked through the Sky integration and faced a very difficult competitive environment. We are cutting our fair value estimate to $5 per share from $6.50 as we push out expectations for meaningful broadband price increases beyond 2025 and incorporate a weaker peso. America Movil’s Telmex business appears determined to gain market share, using low pricing to do so. This dynamic reinforces our view that Televisa does not possess an economic moat, but we believe the current stock price assumes the market will show little improvement in the coming years. While that outcome is possible, we expect consolidation will eventually occur.

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 continue to refine its portfolio as it finds opportunities to improve its competitive position or realize value for shareholders. Still, it doesn’t entirely control the path forward, which will likely cause continued volatility in financial performance and the stock price.

Televisa continued to post weak results during the first quarter, lagging its key competitors in the brutally competitive Mexican broadband market. The plan to merge Sky with the cable business after acquiring AT&T's Sky minority interest is poised to deliver significant cost savings, which management expects to begin materializing in the third quarter, sooner than we would have expected. Our fair value estimate remains $6.50. We expect Televisa will exit 2024 on a better trajectory than it is on currently, but uncertainty remains very high.

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 continue to refine its portfolio as it finds opportunities to improve its competitive position or realize value for shareholders. Still, it doesn’t entirely control the path forward, which will likely cause continued volatility in financial performance and the stock price.

Grupo Televisa sharply improved profitability during the fourth quarter, but the more important task of reviving revenue growth remains a work in progress. Management indicated that customer metrics have steadily improved since the firm shifted its strategy last fall to reduce promotional discounting, and that the level of competition in the broadband market is easing somewhat. Commentary from rival Megacable on its earnings call lines up with this view. Still, the Mexico broadband market needs to consolidate to cement pricing discipline and reduce duplicative investment. We have trimmed our fair value estimate to $6.50 from $8, which primarily reflects the debt-free spinoff of Ollamani, which closed on Feb. 20. Ollamani holds the majority of Grupo Televisa’s former “other” segment, including Stadium Azteca, the Club America soccer team, and gambling operations. We expect Grupo Televisa will continue to look for ways to utilize its assets more efficiently and deliver value for shareholders.

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 continue to refine its portfolio as it finds opportunities to improve its competitive position or realize value for shareholders. Still, it doesn’t entirely control the path forward, which will likely cause continued volatility in financial performance and the stock price.

Televisa’s core cable business continues to struggle as management attempts to reset its market approach. New cable CEO Francisco Valim provided extensive thoughts on the business, noting that Televisa needs to prioritize efficiency and increasing revenue per customer to improve cash flow, while also stating the obvious: the Mexican broadband industry needs consolidation. Unfortunately, Televisa’s rivals don’t share this point of view, as Megacable clearly declared its intention to continue aggressively expanding its network on its earnings call. The TelevisaUnivision business generated strong revenue growth, but it continues to burn cash as it builds out ViX, its streaming service. We are maintaining our $8 fair value estimate, and we don’t believe much needs to go right for Televisa from here to justify the current stock price.