• Profitability Improvement: Cable segment profitability improved by almost 400 basis points to 39.4%.

• Cable CapEx: Year-to-date cable investments of $290 million, a decline of 38% year on year.

• Operating Cash Flow (Cable): Over 8.8 billion pesos, growing by almost 40% year on year, accounting for 25% of sales.

• Sky Operating Cash Flow: Over 2.5 billion pesos, flat year on year, accounting for 22% of sales.

• Consolidated Operating Cash Flow: Around 11.3 billion pesos, growing by 27% year on year, accounting for 24% of sales.

• Free Cash Flow: Over 6.3 billion pesos, representing a nine-month free cash flow yield of around 25%.

• Televisa Univision Revenue: $1.3 billion, increasing by 2% year on year.

• Televisa Univision EBITA: $427 million, growing by 4% year on year.

• Advertising Revenue (US): Increased by 5% year on year.

• Advertising Revenue (Mexico): Declined by 1% year on year; FX neutral increase of 10%.

• Subscription and Licensing Revenue (US): Grew by 6% year on year.

• Subscription and Licensing Revenue (Mexico): Fell by 12% year on year; FX neutral decline of 4%.

• Warning! GuruFocus has detected 6 Warning Signs with TV.

Release Date: October 25, 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 to 39.4% compared to the third quarter of 2023.

• The company achieved a significant milestone by making its direct-to-consumer (DTC) business profitable within two years, faster than its peers.

• Consolidated operating cash flow grew by about 27% year on year, reaching around 11.3 billion pesos, accounting for approximately 24% of sales.

• The integration of Sky with the cable segment has led to operational efficiencies, including a reduction in OpEx by around 8.5% year on year.

• Grupo Televisa SAB (NYSE:TV) generated over 6.3 billion pesos in free cash flow, representing a nine-month free cash flow yield of around 25% for its consolidated operations.

Negative Points

• Net revenue from cable operations decreased by 1.6% year on year due to the cancellation of a video package and the impact of a hurricane in Acapulco.

• Sky's third-quarter revenue fell by 13.2% year on year, driven by a decline in prepaid subscribers.

• The enterprise segment's net revenue declined by 22.6% year on year due to not renewing an important government contract.

• The operating segment income margin contracted by 60 basis points sequentially due to faster revenue decline at Sky compared to synergy realization.

• Grupo Televisa SAB (NYSE:TV) faces challenges in further integrating and optimizing operations at Televisa Univision, requiring significant effort to unlock efficiencies.