Business Context and Reporting Period
Company: GRUPO TELEVISA, S.A.B. (NYSE: TV; BMV: TLEVISA CPO)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Full Year and Fourth Quarter ended December 31, 2024
Filing Date: February 20, 2025
Accounting Standards: International Financial Reporting Standards (IFRS)
The Company is a major Mexican telecommunications corporation operating cable and direct-to-home (DTH) satellite pay television systems. Financial statements reflect the impact of the January 31, 2024, spin-off of the "Other Businesses" segment (now Ollamani, S.A.B.), which are presented as discontinued operations. The Company also acquired 100% ownership of its Sky segment in June 2024 by purchasing the non-controlling interest previously held by AT&T.
Key Financial Metrics (Full Year 2024 vs. 2023)
| Metric (MXN Millions) | 2024 | 2023 | Change % |
|---|---|---|---|
| Revenues | 62,260.9 | 66,222.8 | (6.0)% |
| Operating Segment Income | 23,157.9 | 25,030.5 | (7.5)% |
| Operating Segment Margin | 36.9% | 37.7% | -80 bps |
| Operating Income (Loss) | (2,843.1) | 1,857.8 | N/A |
| Net Loss | (8,309.3) | (8,807.3) | N/A |
| Net Loss Attributable to Stockholders | (8,246.2) | (8,422.7) | (2.1)% |
| Net Debt Position | 59,647.9 | N/A | N/A |
| Cash and Cash Equivalents | 46,193.2 | 32,586.4 | 41.8% |
| Total Debt | 102,949.1 | 88,535.9 | 16.3% |
| Capital Expenditures | 9,097.5 | 14,707.9 | (38.1)% |
Material Changes and Segment Performance
Revenue and Operating Income
- Revenue Decline: Consolidated revenues decreased 6.0% year-over-year, driven primarily by a 12.8% decline in the Sky segment and a 2.9% decline in the Cable segment.
- Operating Segment Income: Decreased 7.5% to Ps.23,157.9 million. The margin remained robust at 36.9%, supported by a 39.0% margin in the Cable segment.
- Net Loss Improvement: Net loss attributable to stockholders narrowed by 2.1% (Ps.176.5 million) despite lower operating income. This was due to a Ps.2,974.2 million favorable change in income taxes, a Ps.2,665.4 million decrease in the share of loss from associates (TelevisaUnivision), and lower finance expenses.
Segment Breakdown
- Cable Segment: Revenues fell 2.9% to Ps.47,393.1 million. The segment reported net disconnections of 203.9 thousand RGUs in Q4, with losses in video (94.7k) and broadband (85.0k) subscribers, partially offset by mobile additions (11.0k).
- Sky Segment: Revenues fell 12.8% to Ps.15,337.3 million. The segment reported net disconnections of 270.4 thousand RGUs in Q4, primarily driven by a loss of 231.9 thousand video subscribers.
Unusual Items and Expenses
- Other Expense, Net: Increased significantly by Ps.3,665.3 million to Ps.4,579.1 million. This was primarily due to non-cash impairment adjustments of goodwill and intangible assets in the Sky and Cable segments, a write-off of unrecoverable VAT, and tax surcharges from prior years.
- Discontinued Operations: Income from discontinued operations (Spun-off Businesses) was Ps.56.8 million for the month ended Jan 31, 2024, compared to Ps.628.1 million for the full year 2023.
Guidance, Outlook, and Risks
Management Commentary and Outlook
Management intends to strengthen its position in Cable and Sky businesses through continued investment while maintaining financial discipline. The Company is evaluating strategic alternatives for non-core assets and exploring ventures with TelevisaUnivision. No specific numerical guidance for 2025 was provided in this filing.
Risk Factors
- Currency Risk: Significant exposure to the Mexican peso depreciation against the U.S. dollar, which increased foreign exchange losses by Ps.714.2 million in 2024 due to a 23.2% average depreciation.
- Regulatory and Political: Risks related to concession renewals, regulatory fines, changes in Mexican tax laws, and political developments in Mexico.
- TelevisaUnivision Performance: The Company's financial performance is affected by the results of TelevisaUnivision, in which it holds a significant equity interest but does not control.
- Subscriber Churn: Continued net disconnections in both Cable and Sky segments pose a risk to future revenue growth.
Investor Verification Checklist
- Subscriber Trends: Verify the sustainability of the net disconnection rates in the Cable and Sky segments and the effectiveness of retention strategies.
- Impairment Charges: Review the details of the Ps.3,064.3 million impairment adjustments in "Other Expense" to understand the long-term impact on asset bases.
- Currency Hedging: Assess the adequacy of hedging strategies given the 23.2% average peso depreciation and the resulting Ps.863.4 million foreign exchange loss.
- Debt Maturity: Analyze the debt maturity profile, noting Ps.4,549.8 million in current debt and the impact of the 2024 peso depreciation on total debt levels.
- TelevisaUnivision Exposure: Monitor the performance of TelevisaUnivision, as its impairment charges significantly impact Televisa's share of loss from associates.
- Discontinued Operations: Confirm the final financial impact of the Ollamani spin-off and the separation of non-core assets.