Grupo Televisa SAB (TV) Q2 2024 Earnings Call Highlights: Strong Cable Growth Amidst Revenue ...

GuruFocus News
4 min read

In This Article:

  • EBITDA Margin Improvement: Improved by almost 400 basis points relative to Q3 2023.

  • Cable Segment Operating Cash Flow: Over MXN6.4 billion, growing by almost 50% year-on-year, accounting for around 27% of sales.

  • CapEx Budget for Cable Segment: Reduced to $590 million for 2024.

  • OpEx Savings: Expected savings of approximately MXN400 million in Q3 2024.

  • Spin-off Market Cap: Ollamani listed with a market cap of around $330 million.

  • Network Expansion: Network of 20 million homes, with 71,000 new homes passed in Q2 2024.

  • Residential Revenue Decline: Decreased by 3.8% year-on-year.

  • Enterprise Revenue Growth: Increased by 4.4% year-on-year.

  • Sky Revenue: MXN3.9 billion, fell by 13.3% year-on-year.

  • Segment Revenue: MXN15.8 billion, fell by 5.8% year-on-year.

  • Operating Segment Income: MXN6.0 billion, declined by 7.7%.

  • Operating Segment Income Margin: 37.7%, contracted by 80 basis points year-on-year.

  • CapEx Deployment: Total investments of MXN1.8 billion in Q2, fell by 51.1% year-on-year.

  • Operating Cash Flow for Cable and Sky: MXN4.2 billion, increased by 37.8% year-on-year.

  • TelevisaUnivision Revenue: $1.3 billion, increased by 3% year-on-year.

  • TelevisaUnivision EBITDA: $362 million, declined by 3% year-on-year.

  • Consolidated Advertising Revenue Growth: Increased by 6% year-on-year.

  • Consolidated Subscription and Licensing Revenue: Decreased by 2% year-on-year.

  • ViX Subscribers: Closed Q2 with 8.4 million subscribers.

Release Date: July 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Grupo Televisa SAB (NYSE:TV) improved profitability in its Cable segment by almost 400 basis points compared to the third quarter of 2023.

  • Operating cash flow for the Cable segment grew by nearly 50% year-on-year, reaching over MXN6.4 billion.

  • The acquisition of AT&T's minority stake in Sky was completed at attractive terms, strengthening the competitive and financial position of the combined company.

  • The spin-off of Ollamani and its listing on the Mexican Stock Exchange unlocked significant value for shareholders.

  • The direct-to-consumer business ViX is on track to become profitable in the second half of the year, only two years after its launch.

Negative Points

  • Net revenue from residential operations decreased by 3.8% year-on-year due to a 5.7% lower subscriber base.

  • Sky's second quarter revenue fell by 13.3% year-on-year, driven by softer commercial activity.

  • The operating segment income margin contracted by 80 basis points year-on-year due to inflationary pressures in labor and content-related costs.

  • The discontinuation of the Afizzionados video package and the impact of Hurricane Otis in Acapulco negatively affected revenues.

  • Consolidated subscription and licensing revenue decreased by 2%, with declines in linear subscription revenue in both Mexico and the US.

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