This article first appeared on GuruFocus .
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Residential and Enterprise Revenue:MXN23.7 billion, increased by 2.6% year-on-year in the first half of 2026.
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Annual OpEx:MXN34.5 billion, 18.4% lower than three years ago.
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Operating Segment Income Margin:Expanded by 260 basis points to 40.7% from 38.1% three years ago.
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Free Cash Flow Generation:Cumulative MXN16.4 billion over three years, equivalent to $300 million per year.
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Leverage Ratio:Declined to 1.6 times EBITDA from 2.4 times at the end of Q2 2023.
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Net Revenue from Residential Operations:MXN10.7 billion, increased by 1.8% year-on-year.
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Sky Revenue:MXN2.5 billion, declined by 20.3% year-on-year.
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Segment Revenue:MXN14.3 billion, fell by 3% year-on-year.
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Operating Segment Income:MXN6 billion, increased by 5%.
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Operating Segment Income Margin:41.8%, expanded by 310 basis points year-on-year.
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CapEx Deployment:MXN3.6 billion, accounting for 25.3% of sales.
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Operating Cash Flow for Cable and Sky:MXN2.4 billion, accounting for 16.6% of sales.
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TelevisaUnivision Revenue:$1.3 billion, increased by 10% year-on-year.
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Mexico Revenue:$605 million, surged by 53% year-on-year.
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US Revenue:$722 million, fell by 11% year-on-year.
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Adjusted EBITDA:$388 million, declined by 3%.
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Consolidated Advertising Revenue:Decreased by 9% year-on-year.
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Consolidated Subscription and Licensing Revenue:Increased by 40% year-on-year.
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Cash Balance:$766 million at the end of the quarter.
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Net Debt-to-EBITDA:5.5 times, improved from 5.7 times in the prior quarter.
Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Grupo Televisa SAB ( NYSE:TV ) has successfully grown its Internet subscriber base for five consecutive quarters, maintaining a churn rate below 2%.
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The company experienced a turning point in Cable revenue, with a 2.6% year-on-year increase in residential and enterprise revenue during the first half of 2026.
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Operational efficiencies and integration between Izzi and Sky have led to a significant reduction in OpEx, with annual OpEx decreasing by 18.4% over three years.
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The fiber-to-the-home (FTTH) network upgrade is progressing well, with 12 million homes already passed, aiming for full coverage by the second quarter of 2027.
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Grupo Televisa SAB ( NYSE:TV ) has prioritized free cash flow generation, achieving a cumulative MXN16.4 billion in free cash flow over the last three years, contributing to a reduced leverage ratio of 1.6 times EBITDA.
Negative Points
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Broadband net adds were softer in the second quarter due to a price increase, aggressive competitor promotions, and an early rainy season.
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Sky's revenue declined by 20.3% year-on-year, primarily due to a lower subscriber base, despite a slight improvement in disconnections.
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Consolidated advertising revenue decreased by 9% year-on-year, with a 29% decline in the US due to cyclical softness and lower ViX advertising revenue.
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TelevisaUnivision's adjusted EBITDA declined by 3% despite strong revenue growth, due to increased operating expenses related to the World Cup.
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Grupo Televisa SAB ( NYSE:TV ) faces increased competition in the broadband market, particularly at the lower end, impacting churn rates and subscriber acquisition costs.
Q & A Highlights
Q: Alfonso, what is Grupo Televisa's strategy for potentially consolidating the telecom market? Are you considering going it alone or bringing in a strategic partner? Also, what level of stake are you looking to acquire in potential assets, and what leverage are you comfortable with? A: Alfonso de Angoitia Noriega, Co-Chief Executive Officer, explained that Grupo Televisa has been trying to consolidate the cable industry for a long time, as a four-player market is complicated. The decision to bring in strategic partners or the level of stake to acquire depends on the specific opportunity. The comfort level with leverage also depends on the opportunity and its cash flow generation potential.
Q: How much more room is there to extract synergies between Cable and Sky, and can you expand on the increased competition in broadband? A: Francisco Valim, CEO of Izzi and Sky Mexico, stated that while synergies between Sky and Izzi are nearing completion, there is still room for operational improvements, especially with new technologies. Regarding broadband competition, Valim noted that competition is intense at the lower end of the market, but Televisa focuses on value customers who require more services and are less price-sensitive.
Q: Can you provide insights into the increase in lease payments and the benefits of upgrading to fiber in certain regions? A: Carlos Phillips Margain, CFO, explained that the increase in lease payments is due to switching from owning to leasing the auto fleet, which has generated savings. Francisco Valim added that upgrading to fiber allows for better products and higher prices, with ongoing migration to fiber as customers demand more robust services.
Q: Are you seeing any potential disruptions from Starlink, and what is your strategy for TelevisaUnivision? A: Alfonso de Angoitia Noriega noted that while Starlink is not a short-term threat in the mass market, Televisa is using it as a complementary service in B2B and B2C. Regarding TelevisaUnivision, the focus is on growing ViX as a streaming service, leveraging events like the World Cup to drive growth.
Q: What are the long-term AI benefits for Grupo Televisa, and are there concerns about token costs? A: Alfonso de Angoitia Noriega highlighted that AI is being used across production, set design, and dubbing, bringing efficiencies and revenue opportunities. Francisco Valim mentioned that Izzi uses internal infrastructure for AI processes, managing costs and preventing data leakage, with ongoing improvements expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
