This article first appeared on GuruFocus .
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Consolidated Segment Revenue:MXN14.1 billion, down 3.8% year on year.
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Operating Segment Income:MXN6 billion, up 5.6% year on year.
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Operating Segment Income Margin:42.6%, expanded 380 basis points year on year (best quarter in three years); up 80 basis points sequentially.
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OpEx:Declined 9.7% year on year.
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Residential Net Revenue:MXN10.6 billion, essentially flat year on year.
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Enterprise Net Revenue:MXN1.1 billion, up 6.8% year on year.
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Sky Revenue:MXN2.4 billion, down 25.5% year on year.
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CapEx (Cable & Sky):MXN3 billion, 21.3% of sales.
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Operating Cash Flow (Cable & Sky):MXN3 billion, 29.3% of sales.
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Broadband Net Adds:~9,000 in the quarter.
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Video Subscriber Losses:~48,000 lost in the quarter.
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Mobile Net Adds:68,000 in the quarter.
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Sky Revenue-Generating Unit Losses:250,000 lost in the quarter.
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Monthly Churn Rate:Below 2% historical average for six consecutive quarters.
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Network Footprint:Over 20 million homes passed; ~8,000 new homes passed in the quarter; ~67% of footprint passed with fiber-to-the-home.
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TelevisaUnivision Revenue:$1.4 billion, up 9% year on year (up 6% excluding Mexican peso appreciation).
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Mexico Revenue (TelevisaUnivision):$665 million, up 51% year on year.
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US Revenue (TelevisaUnivision):$715 million, down 14% year on year.
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Consolidated Advertising Revenue:Down 5% year on year; US down 24%, Mexico up 19%.
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Consolidated Subscription & Licensing Revenue:Up 30% year on year; US down 4%, Mexico up 156%.
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TelevisaUnivision Operating Expenses:Up 14% (up 11% excluding Mexican peso appreciation).
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TelevisaUnivision Adjusted EBITDA:$461 million, essentially flat year on year.
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TelevisaUnivision Cash:$753 million; ~$690 million available credit capacity.
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TelevisaUnivision CapEx:$28 million vs. $25 million last year.
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TelevisaUnivision Net Debt-to-EBITDA:5.5 times, in line with prior quarter.
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Grupo Televisa Net Debt-to-EBITDA:1.6 times at quarter-end (expected to rise to 1.9 times post-AT&T Mexico acquisition).
Release Date: October 30, 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 ) agreed to acquire AT&T's wireless business in Mexico for $2 billion, significantly strengthening its competitive position and creating a unique platform for fixed-mobile convergence, bundled offerings, and cross-selling.
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The acquisition will result in a combined subscriber base of over 24 million wireless, 5.7 million broadband, and 6.3 million video subscribers, with annual revenue of around $8 billion, equivalent to 23% of the Mexican telecommunications market.
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Grupo Televisa SAB ( NYSE:TV ) maintains a strong balance sheet, with net debt to EBITDA increasing only to 1.9 times from 1.6 times after the acquisition, and no additional equity contributions expected beyond the initial $400 million.
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The company achieved its best quarterly profitability in three years, with operating segment income margin expanding 380 basis points year on year to 42.6%, driven by efficiency measures and synergies from the Izzi-Sky integration.
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TelevisaUnivision's Mexico revenue surged 51% year on year to $665 million, driven by a record-breaking FIFA World Cup, and ViX significantly exceeded acquisition and engagement targets for the event.
Negative Points
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Grupo Televisa SAB ( NYSE:TV ) lost 48,000 video subscribers in the third quarter, an acceleration from the average of 34,000 disconnections over the last four quarters, partially due to the end of the FIFA World Cup.
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Sky's third-quarter revenue declined 25.5% year on year to MXN2.4 billion, mainly driven by a lower subscriber base, with a loss of 250,000 revenue-generating units.
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TelevisaUnivision's US advertising revenue fell 24% year on year, reflecting broader linear market softness and lower ViX advertising revenue due to competitive sports programming on peer networks.
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Broadband net adds were only around 9,000 in the third quarter, similar to the second quarter, amid a highly competitive Mexican broadband market with low industry growth.
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Mobile net adds slowed to 68,000 in the third quarter from an average of 83,000 over the last four quarters, partly due to a new law requiring mobile users to register phone lines with photo IDs, causing a temporary market slowdown.
Q & A Highlights
Q: Given that AT&T Mexico will be accounted for under the equity method, how should we think about the recognition of potential synergies, and how do you plan to disclose AT&T's stand-alone financials, including EBITDA, CapEx and free cash flow? Could we expect pro forma metrics or synergy targets? A: Co-CEO Alfonso de Angoitia said synergies will be implemented from the get-go upon closing, expected most likely in January 2027, through services agreements. He noted AT&T Mexico currently reports under U.S. GAAP and significant work is needed to convert to IFRS, so the company does not plan to make AT&T Mexico's financial information public in an initial phase. Telco CEO Francisco Valim added that synergies will flow both ways: on revenue through more bundled packages (AT&T's ~24 million subs combined with Izzi's ~10 million), and on cost through back-office shared-services scale, with the robust agreement with the 50% partner allowing implementation of all cost synergies.
Q: This quarter you posted a very strong 42.6% margin. What are the drivers of these cost controls, and where do you expect the margin to trend over the next few quarters? Also, apart from the $400 million equity infusion, do you expect further contributions into the AT&T deal, and what do you plan to do with the remaining cash? A: Co-CEO Alfonso de Angoitia attributed the 42.6% margin to efficiency measures at Izzi and Sky and the execution of synergies from merging the two companies. Telco CEO Francisco Valim said the figure already embeds Sky, a pure video player with lower margins due to content costs, so he does not expect profitability to increase further, though the B2C-only margin would be even higher. On the AT&T deal, de Angoitia said no additional equity contributions are expected for the time being, and AT&T will have a stand-alone capital structure able to finance itself. On remaining cash, he said the company is ready to take advantage of opportunities in its sector and will continue reducing leverage.
Q: Can you provide an update on broadband competitive dynamics, given several players decelerated adds at the same time? And why did residential revenues decelerate versus the first quarter, when trends were improving? A: Co-CEO Alfonso de Angoitia described the Mexican market as very competitive and dynamic in both speeds and prices. Telco CEO Francisco Valim said that as broadband penetration rises in Mexico, growth naturally slows toward low single digits, as seen in mature markets like Brazil, with Telmex, Totalplay, Megacable and Izzi all converging to similar growth rates. On residential revenue, he explained the first half was loaded with World Cup packages sold in addition to existing packages starting January 2026, making the second half comparison less favorable.
Q: Can you give color on the higher other expenses this quarter? You mentioned an impairment one-off plus legal and financial advisory costs are those also one-offs? And can you give color on CapEx, which was lower than previous quarters despite heavy fiber upgrades? A: CFO Carlos Phillips said most of the other expenses increase was a noncash, nonrecurring impairment on the carrying value of technical equipment an accounting adjustment and the higher legal and other costs are also nonrecurring, tied to recent convertible and M&A transactions. Telco CEO Francisco Valim said the lower CapEx was due to quarterly fluctuation in import timing for fiber deployment materials, not a trend or reduction, and he expects a fourth-quarter catch-up with full-year CapEx ending in the low 20s as a percentage of sales.
Q: On the U.S. political advertising opportunity, with Hispanics seen as a swing vote and heavy spending expected, can you add value to candidates through targeting and sophistication with ViX and social, or is it mostly traditional on-air tonnage? A: Co-CEO Alfonso de Angoitia said TelevisaUnivision has a very good political offering as the #1 Hispanic company, reaching most competitive regions through both the network and the station group, in linear television and digital down to cities and counties. He said that with competitive elections, the company expects very good results, noting CEO Daniel Alegre is directly in charge of the elections process.
Q: What are the key terms and strategic rationale of the AT&T Mexico wireless acquisition? A: Co-CEO Alfonso de Angoitia said the $2 billion acquisition, pursued through a 50-50 partnership with Fintech Holdings, will materially strengthen Televisa's competitive position, creating a unique platform for fixed-mobile convergence, bundling and cross-selling. At closing, each partner contributes $400 million in equity, with the remaining $1.2 billion funded through a five-year nonrecourse loan. Combined assets would include over 24 million wireless, 5.7 million broadband and 6.3 million video subscribers, with around $8 billion in annual revenue, equivalent to roughly 23% of Mexico's telecom market. Net debt to EBITDA would rise only to 1.9 times from 1.6 times, with closing expected in the first quarter of 2027 and accounting under the equity method.
Q: How did the cable operations perform in the third quarter, particularly in broadband, video and mobile? A: Telco CEO Francisco Valim said the network passed over 20 million homes, with 4.3 million homes upgraded to fiber-to-the-home year to date, reaching around 67% of the footprint. Monthly churn stayed below the historical 2% average for six consecutive quarters, and broadband net adds were around 9,000. Video lost about 48,000 subscribers, partly due to the end of the FIFA World Cup in July. Mobile net adds of 68,000 slowed versus the ~83,000 average, which Valim attributed to a new law requiring photo ID registration of phone lines, though Televisa is well positioned since its mobile users are postpaid.
Q: How did Sky and the overall cable segment perform financially in the third quarter? A: Telco CEO Francisco Valim said Sky lost 250,000 revenue-generating units, mostly prepaid subscribers not recharging, an improvement versus the ~290,000 average of the last four quarters. Sky revenue of MXN2.4 billion fell 25.5% year on year, though the decline slowed versus 22.6% in the first half. Segment revenue of MXN14.1 billion fell 3.8%, while operating segment income of M
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
