TV

Business Context and Reporting Period

Company: GRUPO TELEVISA, S.A.B.
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Second Quarter ended June 30, 2025
Filing Date: July 22, 2025
Business Overview: Televisa is a major Mexican telecommunications corporation operating cable, broadband, voice, and direct-to-home satellite pay television (Sky) services. It is also the largest shareholder of TelevisaUnivision, Inc.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Decline: Consolidated revenue fell 6.3% year-over-year, primarily driven by a 16.3% drop in the Sky segment due to a 21.7% decrease in Revenue Generating Units (RGUs). The Cable segment revenue declined 2.5%.
• Profitability Improvement: Despite revenue declines, the company reported a net income of Ps.474.5 million attributable to stockholders, compared to a net loss of Ps.25.6 million in 2Q 2024. This turnaround was driven by a Ps.873.2 million increase in the share of income from associates (TelevisaUnivision) and a Ps.255.4 million reduction in other expenses.
• Margin Expansion: Operating Segment Income (OSI) margin expanded by 70 basis points to 38.4% due to operational efficiencies and synergies.
• Debt Reduction: Total debt and lease liabilities decreased by Ps.14,838.2 million (13.7%) compared to year-end 2024, aided by the prepayment of Ps.2,650 million in Sky debt.
• Subscriber Dynamics:
  • Cable: Added 64.4k net RGUs, driven by 83.5k mobile and 27.5k voice adds, offsetting 53.0k video losses.
  • Sky: Lost 346.6k net RGUs, primarily due to 311.0k video disconnections.
• Finance Costs: Net finance expense increased by Ps.1,082.4 million to Ps.1,672.4 million, largely due to foreign exchange losses and higher interest expenses linked to the USD exchange rate.

Guidance, Outlook, and Risks

• Management Commentary: Management highlighted solid operating cash flow margins and successful retention strategies in the Cable segment. The Sky segment continues to face headwinds with significant RGU disconnections.
• Capital Allocation: The company paid a dividend of Ps.1,019.0 million in June 2025. Capital expenditures increased to Ps.2,125.4 million, focusing on fiber-to-the-home (FTTH) expansion, which now passes 20 million homes.
• Risks and Contingencies:
  • Currency Volatility: Significant foreign exchange losses (Ps.422.5 million) impacted finance expenses due to the appreciation of the Mexican peso against the U.S. dollar.
  • Derivative Losses: The company recorded a net loss in the fair value of derivative contracts.
  • Forward-Looking Statements: The filing includes standard disclaimers that actual results may differ materially due to economic conditions, regulatory changes, and competitive pressures.

Key Facts for Investor Verification

• Sky Segment Trajectory: Verify the sustainability of the 16.3% revenue decline and 346.6k RGU loss in the Sky segment and management's plan to arrest this churn.
• TelevisaUnivision Contribution: Confirm the reliance on the Ps.873.2 million increase in share of income from TelevisaUnivision to offset operating declines in core Mexican operations.
• FX Exposure: Assess the impact of the Mexican peso's appreciation on future finance expenses and debt servicing costs, given the significant USD-denominated debt.
• Debt Maturity Profile: Review the remaining debt maturity schedule following the recent prepayment of Ps.2,650 million to ensure liquidity coverage.
• Mobile Growth: Validate the 83.5k net mobile subscriber adds in the Cable segment as a key growth driver offsetting video losses.