TV

Business Context and Reporting Period

Company: GRUPO TELEVISA, S.A.B. (Televisa)
Reporting Period: Second Quarter ended June 30, 2026
Business Overview: Televisa is a major Mexican telecommunications company operating cable networks and a direct-to-home satellite pay television system. Beginning in Q4 2025, the company reorganized its reporting to present Cable and Sky businesses as a single "Telecom" segment with three revenue categories: Residential, Satellite, and Enterprise. The company is the largest shareholder of TelevisaUnivision, Inc.

Key Financial Metrics (Q2 2026)

Material Changes vs. Prior Period

• Revenue Decline: Total revenues decreased 3.0% year-over-year. This was driven by a 20.3% decline in Satellite Services revenue, partially offset by growth in Residential (1.8%) and Enterprise (0.8%) services.
• Operating Profitability Improvement: Despite lower revenue, Operating Segment Income increased 5.0% to Ps.5,978.1 million, with margins expanding to 41.8% due to efficiency measures and Opex reductions. Operating Income surged 64.9% to Ps.1,572.3 million, aided by a 63.8% reduction in "Other Expense, net."
• Net Loss: The company reported a net loss of Ps.497.4 million attributable to stockholders, compared to a net income of Ps.474.5 million in Q2 2025. Key drivers for the loss included:
  • A Ps.1,136.7 million decrease in the share of income from associates and joint ventures (primarily TelevisaUnivision).
  • A Ps.540.2 million unfavorable change in income taxes (shifting from a benefit to an expense).
  • A Ps.257.3 million increase in net income attributable to non-controlling interests.
• Debt Reduction: Total debt decreased by Ps.5,344.6 million to Ps.80,649.6 million, primarily due to the repayment of the 4.625% Senior Notes due 2026 in January 2026.

Guidance, Outlook, and Risks

• Strategic Focus: Management intends to strengthen its position in Residential, Satellite, and Enterprise businesses while maintaining financial discipline. The company is analyzing opportunities for expansion in the Mexican telecom sector, potentially requiring new financing.
• Capital Structure: In June 2026, the company issued Ps.6,917.8 million in zero-coupon convertible debentures (maturing June 2027) to be used for general corporate purposes, strategic transactions, or debt prepayment. These were accounted for as equity.
• Dividends: The Board did not propose a 2026 dividend, citing the analysis of investment opportunities and deleveraging transactions.
• Key Risks:
  • Regulatory: Risks related to the renewal or revocation of broadcasting and telecommunications concessions under new Mexican laws (LMTR) and potential fines.
  • Operational: Competition, loss of satellite transponders, and network security incidents.
  • Financial: Currency fluctuations (MXN vs. USD), inflation, and high interest rates in Mexico.
  • Investment: Performance of TelevisaUnivision, in which Televisa holds a significant but non-controlling interest.
• Contingencies: Several tax audits and legal proceedings are pending, with potential liabilities totaling approximately Ps.2.36 billion (Ps.956m, Ps.598m, Ps.526m, and Ps.282m), though no provision has been recognized as the outcomes are uncertain.

Investor Verification Checklist

• TelevisaUnivision Performance: Verify the specific financial results of TelevisaUnivision, as the Ps.1.1 billion drop in equity income was the primary driver of the net loss.
• Satellite Churn: Investigate the 20.3% revenue decline and 279,100 net disconnections in Satellite Services to understand the sustainability of this trend.
• Debt Maturity Profile: Review the maturity schedule of the remaining senior notes (due 2027 through 2049) and the impact of the new convertible debentures on future dilution.
• Tax Position: Assess the impact of the Ps.540 million swing in income taxes and the status of pending tax audits totaling over Ps.2 billion.
• Capital Allocation: Monitor the use of proceeds from the convertible debentures and the decision to withhold dividends in favor of deleveraging or M&A.