Earning Date, Transcript Summary & Report

Cable Segment Profitability Improvement: Implemented a corporate restructuring process at the Cable segment to improve profitability, resulting in a 300 basis point increase in profitability to 39% in 2024 compared to Q3 2023.

Cable CapEx Optimization: Optimized Cable CapEx by 37% to almost $400 million in 2024, with a CapEx to sales ratio of 15.6%, which is 740 basis points lower than 2023.

Cable Segment Cash Flow Growth: Achieved over MXN11 billion in operating cash flow for the Cable segment, growing by almost 38% year-on-year and accounting for more than 23% of sales.

Cost Reduction and Cash Flow: Integrated Sky with the Cable segment, leading to a 10% year-on-year reduction in OpEx and a 44% decline in CapEx deployment, while Sky's operating cash flow increased by 3% year-on-year.

Operating Cash Flow Growth: Grupo Televisa’s consolidated operating cash flow grew by over 28% year-on-year to MXN14.3 billion, with a consolidated operating cash flow margin increase of 600 basis points year-on-year.

Ollamani Spin-Off Success: Successfully spun off Ollamani, creating a new publicly listed company with a market cap of around $270 million, unlocking value for shareholders.

ViX Profitability Milestone: ViX, the streaming platform, turned profitable in Q3 2024, achieving a $1 billion direct-to-consumer business with over 20% growth in users and subscribers during the year.

Workforce Reduction Impact: Reduced headcount by around 1,000 employees or about 8% of the global workforce, which will lead to a reduction of over $400 million in operating expenses for 2025.

Consistent Revenue Growth: TelevisaUnivision's full-year revenue increased by 3% year-on-year to $5.1 billion, marking the fourth consecutive year of top-line growth.

Debt Refinancing and Reduction: Refinanced $2.1 billion of debt maturing in 2026 and reduced net debt by around $400 million, improving financial stability.

Revenue Decline Analysis: Consolidated revenue decreased by 6% year-on-year, indicating a decline in overall financial performance.

Segment Income Decline: Operating segment income fell by 7.5% year-on-year, primarily due to lower revenue at Sky, highlighting challenges in that segment.

Revenue Decline Analysis: In the fourth quarter, consolidated revenue dropped by 6.9%, reflecting ongoing struggles in revenue generation.

Revenue Decline Concerns: Sky's revenue decreased by 12.4% year-on-year, driven by a lower subscriber base, which raises concerns about customer retention.

Subscriber Losses at Sky: Grupo Televisa lost 270,000 revenue-generating units at Sky, indicating significant subscriber losses in a competitive market.

Subscriber Decline Impact: The company experienced a decline in broadband and video subscribers, losing 85,900 and 95,000 respectively in the fourth quarter, which could impact future revenue.

Cable Revenue Decline: Despite efforts to streamline operations, the overall revenue from Cable operations decreased by 2.3% year-on-year, suggesting ongoing challenges in that segment.

EBITDA Decline and Cost Pressures: TelevisaUnivision's adjusted EBITDA fell by 3% year-on-year, reflecting pressures from increased costs and investments, which may affect profitability going forward.