Grupo Televisa Q2 Earnings Call Highlights

Televisa’s telecom turnaround continued to gain traction in Q2 2026, with internet subscribers rising for a fifth straight quarter and churn holding below 2% for the same period. Operating segment income for Cable and Sky increased 5% as margins expanded to 41.8%, helped by lower expenses and fiber upgrades. The company is accelerating its fiber-to-the-home rollout, having upgraded more than 1.5 million homes in the quarter and reaching about 60% fiber coverage of its footprint. Management said it plans to upgrade another 8 million homes over the next year and aims for a fully fiber-based network by mid-2027. TelevisaUnivision got a major boost from World Cup-related activity in Mexico, with revenue up 10% overall and Mexico revenue surging 53%. World Cup advertising, subscriptions and sublicensing drove strong results, while the U.S. business saw weaker advertising and an 11% revenue decline. Grupo Televisa NYSE: TV said its telecom operations continued to improve in the second quarter of 2026, with lower churn, expanding profitability and ongoing fiber-network upgrades, while TelevisaUnivision benefited from World Cup-related momentum in Mexico. Co-Chief Executive Officer Alfonso de Angoitia said the company was marking three years since Francisco Valim joined to lead the telecom turnaround. During that period, Televisa has focused on attracting and retaining higher-value cable customers, reduced operating costs and accelerated its transition to fiber-to-the-home technology. De Angoitia said the company’s internet subscriber base has grown sequentially for five consecutive quarters, while churn remained below 2% for the same period. Second-quarter churn was the lowest in 10 quarters, he said. Telecom revenue and margins improve For the first half of 2026, residential and enterprise revenue totaled MXN 23.7 billion, up 2.6% from a year earlier, according to de Angoitia. He said the company believes that growth pace is sustainable. Valim said Cable and Sky segment revenue in the second quarter was MXN 14.3 billion, down 3% year over year, while operating segment income rose 5% to MXN 6 billion. The operating segment income margin expanded 310 basis points from a year earlier to 41.8%, which Valim described as the segment’s best profitability level in three years. The improvement was driven by an 8% decline in operating expenses, including ongoing efficiencies and synergies from the integration of Izzi and Sky. De Angoitia said annual telecom operating expenses have declined 18.4% over the past three years to MXN 34.5 billion, despite cumulative inflation of 14.7%. Headcount has fallen to approximately 25,000 employees from about 34,000 in mid-2023, helping reduce labor costs by nearly 8% despite minimum-wage increases exceeding 50% over the period, he said. Programming costs and expenses were also reduced by around 20%. Residential net revenue rose 1.8% year over year to MXN 1.7 billion, marking the strongest quarterly residential revenue-growth performance in two and a half years, Valim said. Enterprise net revenue increased 0.8% to MXN 1 billion, following stronger growth in the first quarter. Operating cash flow for Cable and Sky, calculated as revenue from operations minus capital expenditures, was MXN 2.4 billion, or 16.6% of sales. Fiber upgrade advances as broadband additions slow Televisa ended June with a network covering 20 million homes after passing roughly 12,000 additional homes in the quarter. The company upgraded more than 1.5 million homes to fiber-to-the-home technology during the quarter, bringing fiber coverage to about 60% of its footprint. The company plans to upgrade another 8 million homes over the next 12 months and expects to have a fully fiber-based network.