TV

Business Context and Reporting Period

Company: GRUPO TELEVISA, S.A.B.
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: First Quarter ended March 31, 2025 (Results announced April 29, 2025)
Context: Televisa is a major Mexican telecommunications corporation operating cable, broadband, and satellite pay-TV (Sky) services. Financial statements are adjusted to reflect the January 31, 2024 spin-off of Ollamani, S.A.B.

Key Financial Metrics

*OCF calculated as OSI minus Capital Expenditures based on filing definition.

Material Changes vs. Prior Period

• Revenue Decline: Consolidated revenue fell 6.1% year-over-year, primarily driven by a 13.2% drop in the Sky segment due to a 19.3% decrease in Revenue Generating Units (RGUs). The Cable segment revenue declined 3.1% due to lower Enterprise Operations and a slightly reduced customer base.
• Profitability Compression: Net income attributable to stockholders dropped significantly to Ps.319.8 million from Ps.951.8 million. This was largely due to a Ps.2,491.9 million unfavorable swing in "Other income or expense, net," caused by the absence of a non-cash gain on property sales recognized in Q1 2024 during the Ollamani spin-off.
• Margin Expansion: Despite revenue declines, OSI margin expanded by 100 basis points to 37.8% due to operational efficiencies and synergies. OCF margin improved by 200 basis points to 26.0%.
• Debt Reduction: Total debt and lease liabilities decreased by Ps.6,368.5 million. Notably, the company repaid Ps.4,036.0 million (U.S.$226.7 million) of Senior Notes due in 2025.
• Subscriber Metrics:
  • Cable: Net added 29.1 thousand RGUs. Mobile subscribers grew by 46.1 thousand (MVNO relaunch), while Video and Broadband saw net disconnections of 73.0k and 5.8k respectively.
  • Sky: Net lost 330.8 thousand RGUs, primarily driven by a loss of 291.5 thousand video subscribers.

Outlook, Risks, and Commentary

• Management Commentary: Management highlighted a focus on value customers and retention strategies, noting material sequential improvement in disconnection rates for Cable video and broadband. Efficiencies and synergies continue to drive margin expansion despite top-line pressure.
• Strategic Initiatives:
  • Infrastructure: Passed 12.5 thousand additional homes with fiber-to-the-home (FTTH), reaching 19.9 million homes passed.
  • Sustainability: Completed installation of photovoltaic panels at corporate headquarters; established a working group for Artificial Intelligence initiatives.
• Risks and Contingencies:
  • Forward-Looking Statements: Actual results may differ materially due to factors described in the Form 20-F, including market conditions and regulatory changes.
  • Discontinued Operations: Results are adjusted for the Ollamani spin-off; future comparability may be affected by the separation of former "Other Businesses."
  • FX Exposure: Finance income was impacted by the appreciation of the Mexican peso against the U.S. dollar (2.1% in Q1 2025).

Investor Verification Checklist

• Non-Recurring Items: Verify the impact of the Ps.2,491.9 million swing in "Other income/expense" to understand core operating performance versus one-time spin-off effects.
• Sky Segment Trajectory: Assess the sustainability of the 13.2% revenue decline and 19.3% RGU drop in the Sky segment and management's retention strategy efficacy.
• Debt Maturity Profile: Confirm the remaining debt schedule following the repayment of the 6.625% Senior Notes due 2025.
• Capital Allocation: Review the reduction in CapEx (down 13.5% YoY) and its impact on future network expansion and maintenance.
• TelevisaUnivision Contribution: Monitor the share of income from TelevisaUnivision, which turned from a loss in Q1 2024 to income in Q1 2025, as a key driver of net income.