Grupo Televisa Earnings: Modest Broadband Improvement Still Trails Rivals

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.