TV Q4 2025 Earnings Call Summary

Consolidated Revenue: MXN 58.9 billion for 2025, down 5.5% year-on-year; Q4 revenue at MXN 14.5 billion, down 4.5%.
Operating Segment Income: MXN 23 billion for 2025, a slight decrease of 0.6%; Q4 income at MXN 5.9 billion, up 6.1% year-on-year.
Free Cash Flow: MXN 5.9 billion generated in 2025, enabling a prepayment of MXN 2.7 billion in bank loans.
Leverage Ratio: Improved to 2x EBITDA from 2.5x year-on-year.
CapEx: MXN 12.2 billion for 2025 (20.7% of sales), with Q4 CapEx at MXN 4.6 billion (31.8% of sales).

Subscriber Growth: Internet subscriber base increased by 47,000 in 2025, reversing previous losses.
Operational Efficiencies: Operating expenses reduced by 8.3%, contributing to a consolidated operating margin of 39.1%, up 200 basis points.
Direct-to-Consumer (DTC) Success: ViX achieved record revenue and profitability, representing nearly 25% of total company revenue.
Advertising Revenue: In Mexico, advertising revenue increased by 15% year-on-year, driven by ViX growth.

CapEx Plans: Expected to maintain a CapEx to sales ratio of 25% in 2026, aiming to upgrade 6 million homes to fiber-to-the-home (FTTH) technology.
DTC Growth: Anticipated continued expansion in the DTC business, particularly with the upcoming 2026 World Cup, where ViX will be the exclusive streaming platform.
Focus on Value Customers: Continued strategy to prioritize high-value customers to enhance retention and reduce churn.

Revenue Decline: Overall revenue decline of 5.5% in 2025, primarily due to lower revenue at Sky, which saw a 16.8% drop in Q4.
Subscriber Losses: Sky lost 304,000 revenue-generating units in Q4, with challenges in retaining prepaid subscribers.
Competitive Pressures: The competitive landscape remains stable, but there are concerns about pricing power and the impact of streaming services on traditional DTH platforms.

Fiber Deployment: Plans to increase FTTH coverage from 9 million to 15-16 million homes by the end of 2026.
AI Integration: Both telecom and media operations are exploring AI to enhance customer service and content production efficiency.
Market Conditions: The competitive environment is stable, with a focus on increasing average revenue per user (ARPU) through enhanced service offerings rather than just price hikes.
Sky's Future: While DTH revenues are declining, the business is expected to remain cash-generative due to streamlined operations.

This summary encapsulates Grupo Televisa's performance and strategic direction as of Q4 2025, highlighting both achievements and ongoing challenges.

TV — Grupo Televisa, S.A.B.