Televisa Posts Strong Q4; Focus Now on Broadband Opportunity With Content Spinout Completed

Televisa’s cable segment--now its main business--ended 2021 with another strong quarter driven by broadband growth. The merger of the content business with Univision was completed in January. With the merger completed, Televisa is now a bet on broadband and pay-TV penetration within Mexico with a large equity stake in TelevisaUnivision. We expect the firm to remain laser focused on the broadband opportunity within Mexico and further explore potential M&A opportunities including the long-rumored acquisition of Megacable. We maintain our fair value estimate of $14.