Analyst Note| Neil Macker, CFA |
Televisa posted a slightly-weaker-than-expected second quarter as both revenue and EBITDA fell just short of FactSet consensus estimates. As expected, ad revenue collapsed due to the impact of COVID-19, which hit the other business segments (soccer, film distribution, and gaming) as well. The cable division remains the growth engine for the firm with a record number of net adds in the quarter and the Sky division had its highest top-line growth in 13 quarters. We are maintaining our narrow moat for Televisa and our fair value estimate of $13, which includes the impact of COVID-19 on the firm. With shares trading in 5-star territory, we believe current levels provide an attractive entry point for investors.