Q1 2022 Grupo Televisa SAB Earnings Call
Ladies and gentlemen, todays conference will begin shortly please continue to standby once again today's conference will begin shortly please continue to standby. Thank you for your patience.
[music].
Ladies and gentlemen, todays conference will begin shortly please continue to standby once again today's conference will begin shortly please continue to standby. Thank you for your patience.
[music].
Okay.
Good morning, everyone and welcome to Grupo Televisa <unk> first quarter 2021 conference call.
Before we begin I would like to draw your attention to the press release, which explains the use of forward forward looking statements and applies to everything we discuss in today's call and in the earnings release I will now turn the call over to Mr. Alfonso de <unk> co Chief Executive Officer of Grupo Televisa. Please go ahead Sir.
Yeah.
Thank you well good morning, everyone and thank you for joining us.
With me today, but on your own salary CEO of stable reasonable vivo CEO of Sky and Carlos is clearly.
Therefore, our clinical studies.
While the macroeconomic environment remains volatile.
Confident that we will deliver solid operating performance at both Grupo Televisa and Televisa and Univision throughout the year.
Mexico GDP growth is expected to slow to around 2% in 2022 from four 8% last year. In addition high inflation has proved more persistent than initially expected as scottoline inflation remains above 7%.
This coupled with our expected monetary policy tightening at the fed we will keep pushing Banco de Mexico towards further apology rate increases throughout the year.
On a more positive note consumption has been recovering since last year due to record high remittances of around $52 billion, an increase of approximately 27% year on year.
Yeah.
That have remained strong in January and February growing by about 22%.
Also after more than two years, social distancing measures related to COVID-19 continued to decline, allowing us to operate under normal circumstances.
Despite the expected economic slowdown we are confident that we will deliver strong revenue growth at Televisa and Univision and improving operating performance at Grupo Televisa throughout the year still.
Horton to highlight that we expect growth in 2022 to be back end loaded both pattern.
And Google Televisa driven by several factors such as the midterm elections in the United States increased advertising spending in Mexico due to the Qatar World Cup during the fourth quarter, the ammonia consumption of the World Cup rights.
Solid net adds in the remainder of the year at cable and price increases at Skype.
Before reviewing glucagon VITAS operating and financial performance, Let me walk you through Televisa and Univision strong first quarter results released yesterday morning, after having successfully closed our transformative merger by the end of January .
Building on our 2021 success and the incredible momentum going into 2020 to Televisa and Univision delivered an outstanding inaugural quarter.
Assuming the merger was effective for the full year.
Quarter Im sorry in the VSAT Univision performance revenue reached $1 billion.
Representing year on year growth of 12%.
While EBITDA reached almost $400 million.
We run into a year on year increase of 7%.
Revenue escalator, Univision was mostly driven by strong increases in consolidated advertising and subscription and licensing revenue of 12% and 14% respectively.
Advertising revenue in Mexico increased at a solid pace during the first quarter and we expect growth to accelerate by the end of the year due to the World Cup transmission.
EBITDA growth was softer than that of <unk>.
Revenue, mostly due to our investments in our streaming business that were fully funded by the strong growth in sales.
Moving on to the performance of our content in the U S. Univision Primetime audience has increased by 9% year on year. During the first quarter of 2022 outperforming all other U S networks, regardless of language.
This contributed to take our share of primetime audiences in the United States up to six 5% during the first quarter from 500% to 5% during the same period of last year.
Moreover, our share of Spanish language trying to time viewing rose 430 basis points to 63, 6%.
In Mexico, our free to air TV Primetime audiences increased by 13% year on year, beating our closest competitor in Mexico by 115%.
In the first quarter Bryan volumes at our flagship channel Master spin.
Greece by 25% year on year and the top employment programs on Mexico's broadcast television were produced and transmitted by us.
So we broadcast the top 10, most watched soccer matches for the quarters in Mexico.
While our linear business continues to deliver a great success and outperforming the market, we could not be more excited about our streaming business and the enormous progress we have made over the last 12 months.
First mark another milestone for our streaming business with the launch of our completely redesigned and enhanced anti Bot service.
<unk> featuring the worlds most extensive Spanish language vizio offerings with over 100 channels beyond demand and over 40000 hours of content in its first year, including our classic Novellas Mega fleets news content software and new and exclusive.
As you know prominence.
We've always been.
Our streaming product is a natural complement to our media business and then opportunity to broaden our reach across the Spanish language Entertainment space.
Screaming allows us to optimize across our entire volume spectrum and provide multiple entry points for viewing.
Beyond that our traditional linear business.
Our underlying economic model is materially different than the English language segment, particularly as it pertains to customer acquisition and content investments.
Across the U S and Mexico, we have.
Unrivaled reach more than 100 million Spanish speakers everyday news provides an enormous marketing platform for our streaming business that is efficient cost effective and can be replicated.
Content model is equally differentiated beyond having the largest Spanish library in the world. We have the content production engine in house to drive our streaming business, which we can scale across the globe 600 million Spanish speakers.
We are consistently recalibrating, our content model to strike the optimal balance between appointment viewing such as our industry, leading software offering and our demand driven content combined each economic linchpins provide a clear and accelerated path to value creation.
While there is.
No for us screaming is not.
Division launched its legacy streaming services, but Andy and blaming a lot last year and this was essentially a great debt.
We learned a lot we learned how to sell add some streaming and how to program all of which has been incorporated into <unk> launch. We also learned a lot about the underlying technology infrastructure.
Our new platform build with our strategic partner.
Cloud lounge successfully Moreover, we were able to migrate our legacy users into VIX, making the debt worthwhile in many ways.
On the <unk> side, we're seeing substantial success with our streaming AD sales efforts.
Onboarding, new strategies, only advertising, while selling <unk> into our linear AD buyers total advertisers on the platform increased by 38% to 130, 150% of linear advertisers, placing buys along with strong participation from upfront.
As last year.
Pricing trends remained equally impressive with VIX generating significant premiums to the linear market and sell out rates above 90%.
The month of March delivered our best AD sales performance, yet up almost 30% again.
Against the next highest month as we continue to gain traction in the marketplace and look to further accelerate with the launch of <unk>.
We look forward to continuing to capture this momentum throughout the rest of 2022 and Thats our upfront approaches in may.
Our learnings from <unk> and VIX that served us well.
And we gear up to launch our as a service big slugs in the second half of this year.
<unk> been investing in the breadth of new content that is incredibly compelling.
Compelling and we are really excited about the prospects of big plus we have longstanding relationships with distributors across the United States and Mexico that will allow us to bundle <unk> plus across cable and wireless providers.
Our streaming portfolio will be fully complete and very well positioned to capture this massive global streaming opportunity.
Overall.
<unk> seen a terrific quarter to kick off the year and we are just getting started.
We couldnt be more excited from the coming quarters with the combined team has been at least a univision who have been working together and tirelessly from day, one of our merger to deliver this level of outstanding performance and positioning us for further success going forward.
As we said before we are uniquely prepared to maximize the opportunity. We have ahead of us and we have already started to deliver on it.
It's the opportunity that comes from tapping into a big growing audience that is hitting its strides in driving progress our initiatives. Our initial results look like nothing no big media will become the fastest growing large.
Media company and there is no better evidence of the power of our combined teams and assets that are newly launched global streaming platform VIX.
First quarter results at Televisa and Univision.
Put us on track to achieve similar pro forma revenue growth to that of 2021.
15% year over year growth and delivered flat EBITDA of around $1 65 billion given the investments required to allowance can promote our global streaming platform again.
Moving onto Grupo Televisa.
Pro forma consolidated financial results for the quarter consolidated revenue reached <unk>.
$18 6 billion vessels, representing year on year growth of three 3%. While operating segment income reached seven 2 billion pesos equivalent to a year on year increase of three 4%.
Revenue growth at our NSO multiple <unk> multiple service operators operations in cable.
Our other businesses segment was particularly better was partially offset by declining revenue on our enterprise operations in cable and Sky.
But another 90 or confident that consolidated revenue growth will accelerate throughout the year.
Our cable net.
Net adds accelerated from the second quarter in a row.
And we expect that to remain solid over the coming quarters.
This should continue to gradually improve revenue growth at our missile operations further.
More over the coming quarters, we expect to sign new contracts on our enterprise operations, allowing us to keep this revenue flat to slightly up for the full year.
At Sky price increases implemented in the month of March.
The phase out of relatively strong recharge rates on our prepaid packages over the first eight months of 2021 should allow us to gradually reduce the base of revenue decline potentially stabilizing this revenue by the end of the year.
Now, let me turn the call over to Daniel.
At cable.
Thank you very much Alfonso during the first quarter of 2022, our cable segment, we saw a continuation of the important turnaround in operating metrics experienced in the fourth quarter of 2021.
We are maintaining a strong performance political for two quarters in a rolling now.
In terms of net at the first quarter at 319006 revenue generating units and 17000 mobile RG use heat with its strongest quarter since the peak of the pandemic in the second and third quarters of 2020, and the highest since 2018, excluding two quarters are dependent.
Sure.
The quarter closed with $14 9 million total R&D use 14, seven zinc and 170 <unk>.
The result was largely driven by the realignment of some of our flagship products the revamping of our customer retention program.
Well at the homes passed expansion plan, we implemented last year.
International segment to keep growing due to a higher mix of sales stable churn and improved product mix.
In video we confirm this turnaround experienced in the fourth quarter of 2021.
We added 89000 video <unk> during the quarter because of our improved product mix from the product realignment today, 77% of sales our triple play.
In broadband we added 83000 <unk> for a total of $5 7 million or to use broadband continues to be the highest margin service global continues to enhance its product offering.
Now for the financial metrics during the first quarter. Our residential segment grew three 4%, while our enterprise segment, which accounts for 13% of total cable revenues declined by 10, 1%, mainly due to tough comps and because in 2021, we concur.
The development of a tightened both project QUADRA.
As a reminder, with Ensco was the perfect developed by the government of its beta participants.
To build a fiber network owned by the state excluding Red scope, our enterprise segment revenue grew by seven 4%.
Nevertheless, we are looking for new projects to replace.
Overall, our cable segment delivered year on year revenue growth of one one.
Operating segment income increased 3% again and I want to emphasize this part before to exclude <unk> private school revenue increased three 5% and operating segment would have increased 6%.
Moreover, we expect a strong operating metrics result to translate into stronger financial results later in the year.
Before turning the call back to Mike <unk>.
We say that we are confident that the expenses in selective locations last year should allow us to keep delivering solid using that app over the coming quarters.
Thank you for telling me greatly.
Great results now, let me turn the call over to a reasonable level.
Skin at the job as CEO of Skype for 180 days.
Okay. Thank you very much Alfonso.
As opposed to said I didn't mean it job board.
Few tens of days now.
And this is my first quarter as CEO of Sky and also my throat.
So in 525 years in Latin America and in Europe .
I landed in Mexico, and if those days of January and I was pleasantly surprised to discover a company with many strengths.
With strong brands will know around the globe. The largest is probably based scattered throughout the vast territory of Mexico Central America, a great portfolio of products, including the most affordable and leading prepay entertainment platform and an extensive library of exclusive content.
Also a massive and very professional sales force and a highly motivated and committed team.
Happy when they finding during this first quarter, we started to build on our strength.
We refresh the lean team to be ready to say the new challenges ahead.
We are in the process of restructuring our sales channels compensation to better align their incentives.
Our incentives.
We are also launching a new entry level postpaid packaged with which we expect to improve the quality of our sales.
In addition, during the first quarter, we secured the exclusive rights of several relevant soccer properties, including exclusive rights for the Spanish La Liga and cobalt array.
Exclusive rights for all with National teams tournaments and exclusive rights for the Bundesliga Scott.
<unk> also have the most comprehensive coverage of the FIFA World Cup 2022 at the end of this year, including a large number of exclusive games and features.
Drive will further enhance skype precision as the ultimate sports provider in Mexico.
During the third quarter, we also launched several promotions and commercial initiatives for both prepaid and postpaid products that allow us to reverse the negative trends in video growth.
On the prepaid side the initiative with the biggest impact was the elimination of this.
Skip some fee in January on postpaid also in January we launched and attractive promotions and we are developing a new entry level single and double play AP product.
Sky is still there that will be launched later this quarter.
In addition on March 1st we launched a 14 day reach are packaged and shifted all our advertising strategy towards increasing recharging and enhancing customers' retention.
On the other hand, we.
We increased prices in prepaid to keep up with inflation. So far our customers adoption of these price increase has been positive as a result, we reverted the negative trend in prepaid top line and we expect prepaid revenues to increase in the following quarters.
In broadband we have seen a deceleration in additions due to several factors first.
Coverage expansion of Alcan second signal, so network saturation in certain areas both factors due to alcon financial struggles.
A price increase in broadband that we implemented in February pass through of the wholesale price increase and posed by antenna.
As a result, we lost 8000 broadband <unk> used during the quarter, reaching a total base of 719000.
Regarding our mobile service, we are working on improving our product and plan to relaunch the service.
Service later in the year with valuable exclusive benefits for our video customers will increase taken at all.
So lower acquisition costs.
On the cancellation side, we experienced an increase in the first quarter as a result of pandemic activation.
And low quality acquisition during the last year's second half.
Altogether, we lost $175000 you used during the quarter.
<unk>.
In terms of our financial performance compared to same quarter last year revenues declined six 2%.
Primarily by lower prepaid recharged due to the steep decline in home confinement related to the pandemic.
As a direct result operating segment income fell by 13, 6% year on year due.
Due to the lower revenues.
Looking ahead, we expect second quarter revenues to increase on a sequential basis, driven primarily primarily by.
As mentioned earlier by higher revenues.
In our prepaid product.
Before turning back to Alfonso I would like to add that we are developing a long term plan to improve our product portfolio customer experience and internal capabilities there.
Allow us to better protect customer.
Customer base and compete in the new highly competitive telecom and media landscape.
Look forward to sharing these plans with you over the coming quarters.
Thank you Luis.
To wrap up there are none of them are very optimistic about our growth prospects for 2022.
As Televisa and Univision, the very strong upfront already announced both in Mexico and in the United States.
New licensing contracts with virtual Mvpds in the United States.
Also the Qatar World Cup and the successful launch of our global screening platform should allow us to deliver double digit revenue growth for the second consecutive year.
And Grupo Televisa the ongoing strong <unk> net add momentum should contribute to gradually accelerate revenue growth over the coming quarters.
Now we are ready to take your questions.
Raul could you please provide instructions.
Yes, Sir as a reminder, if you wish to ask a question simply press Star then the number one on your telephone keypad. Once again, if you wish to ask a question simply press Star then the number one on your telephone keypad.
First question is from the line of David join David Joyce from Barclays. Your line is now open.
Thank you very much two questions. Please first for Louise I appreciate.
All of the actions that you've made so far and adjusting packages and pricing and that you've got more plans.
So that you will unveil in the future, but for now could you help us understand.
Where the loss of subscribers is coming from is it more from.
Something seasonal or are they going to other satellite or are they going to cable in particular to other televisa entities, just what I was wondering what the trends are on the subscribers there.
And then secondly on cable for pet where are you.
You've been building out.
The new areas and upgrading what is the <unk> experience been like.
Versus your legacy subscribers.
Subscribers.
Subscriber set thank.
Thank you very much.
Thank you David for your question, So I'll ask Mr. <unk> to answer the first one on you can take the second.
Yes. Thank you for the question our gross adds are coming.
Both from upfront prepaid employs state of course.
Prepaid represent.
Over 85% of our assets.
And this is typically.
The biggest the biggest figure.
Growth.
We are declining in.
In acquisition in broadband acquisition because of the original you already explained of course.
Having new areas where to sell our Saturdays and broadband has been a challenge for US and this is assessing actually explain coming from the lack of investment in downtown and we are positive on alcon to solve their financial struggles.
Studies, asking again in the second half of the year.
<unk>.
We need to prove to be true.
I said most of our gross adds are coming from prepaid and we are working heavily in improving the quality of those sales in order to stop the revolving door that is.
Inclined for us.
Big acquisition cost our implied around 22% of our revenues every year and this is a huge opportunity for us to save money in.
In acquisition and put that money into.
Shareholders value for.
Different kind of transformation in the company.
Thank you, Lisa and I would add that yes.
After the traditional subscribers that sky's gas of course, those are challenged by triple play offerings.
Our made in essence by cable and telco providers and as to the lower to your package, which.
Is measured basically in terms of recharges.
Every month, a half a month that depends highly on.
That economy so.
That is the lower tier package to the best of the offering.
Offering is.
Most cost efficient entertainment.
Offering that exists in Mexico for the Mexican families. So.
That is being challenged basically in terms of the recharging.
The economy itself.
And your second question per ton you can take it.
Thank you very much for your question, David the RFP with about the same to slightly higher than the rest of the country and you can try to.
Explain why.
New areas, where we have expanded we're expanding with fiber to the home. So the surveys the service, we're providing and supplier financing. So we are able to slightly increase at the same time. These are very competitive markets. We're entering so our pricing on our products have to remain very competitive.
We can increase our preference.
So the answer to your question is it's very similar to the rest of the country with the with a slight margin uplifts.
Thank you very much.
Great. Thank you very much for the color.
Your next question is from the lineup Marcelo Santos from JP Morgan. Your line is now open.
Hi, Good morning, Thanks for taking my questions. The first question is if you could please comment on the competitive environment in Mexican broadband and if that is putting pressure on your articles and the second question.
Good.
Does the weak results on the Netflix.
So the impact management thinking on best view D opportunity. Thank you.
<unk>.
Thank you Marcelo for your question of course, there is a competitive environment.
Cable in Mexico, and I'll ask Tom to expand on this but what.
What we can say is that the capital.
Investments that we made in the previous years.
Hum.
In a very competitive position in terms of having a great network our reliable network.
Very good service and.
Good products good packages.
Don you and the team have been working on.
On the back of this and the pricing so we believe that.
Of course, it is competitive but.
But we are seeing with different products and different pricing depending on the region depending.
Competitiveness.
Each of those places we believe that we are gaining traction.
The net adds that we experienced in this quarter were great we feel comfortable in saying that.
This space will continue.
So even though there is I mean of course, a lot of competition, we feel comfortable in saying that and I'll ask Brian to expand on that.
Thank you.
As I also said I mean, we feel very comfortable with that.
ETE has invested.
Heavily in the last few years. So today, we have a reliable very reliable network.
Our customer experience is very well Reagan.
The realignment of our products in the last few months, how painless very competitive.
The market is president Ted <unk>.
Relatively gaining competitiveness, but.
We don't we're not seeing any effect on our articles where Wednesday and.
We have we have two good results sooner at this quarters results in a row and we expect this level to be sustainable or somewhere in between the last quarter and this one closer to this one.
So I think things are looking good and we feel comfortable with the position we are in.
Thank you very much for your program Marcelo as to your second question about Netflix and what has happened in depth.
Sector.
Guess, what has happened to <unk>.
<unk> in the quarter only validates what we're doing at <unk>.
<unk> at Televisa and Univision.
What we can say and as we have announced we're going to have a hybrid product, which is basically going to include.
Avon product mix and a subscription product <unk> plus.
This hybrid product is going to include linear channels and it's going to include sports basically soccer and more specifically.
Mexican soccer targeting the U S. Hispanic market in Mexico. So.
What we can see entree into.
To fix that we only launched.
And Biggs, plus which is the subscription service, which we will launch in the second half of the year.
We think Netflix with 220.
2 million subscribers worldwide, you'll see in a more mature phase.
So the markets that we're targeting still have low penetration of OTT services.
And.
We're talking about are niche or the Spanish speaking world the addressable market as we have been mentioning the 600 million people around the world with.
The combined GDP of $700 million.
But more importantly half of about GBP 305 trillion.
The U S. Hispanic market in Mexico, So we're going to focus exclusively on the Spanish speaking world, which as I mentioned is low.
Not penetrated with these type of services.
And we have many advantages in doing that.
Talking about <unk>.
Selling basically advertising on that platform.
I can tell you that we have the largest advertising sales force targeting the Spanish language speaking onto the market, both in Mexico, and the United States.
Which account for over 50% of our total addressable market. So.
That is to say that we have been selling advertising for 60 years, So and we have the best teams both in Mexico and in the U S. Moreover, we have the largest Spanish language content factory in the world.
Which is based in Mexico City, and where we can produce premium content in a cost effective way so.
I mean I have mentioned, we have the largest library of Spanish speaking content in the world with 300000 hours.
We have.
Symbol greatest IP in Spanish in the World.
We have made.
Major sporting events.
Sure.
It's very exciting to target our quarter markets. So we have put together all of that and.
And we believe that.
Sure.
Our target is going to be that niche the Spanish speaking world.
Metrics, despite net flix describing pricing.
All of the markets and 180 countries.
All languages et cetera.
Metrics.
Lounges enabled product and trying to.
Distract them.
Take some time.
To put together the sales forces et cetera. So I think we have an advantage here and we're going to focus 100% of our attention laser focus on the Spanish language market.
Thank you.
Validates what we're doing as I mentioned, having a hybrid.
<unk> platform with <unk>, and what type of distribution system, and we feel confident in selling advertising for for the AOS platform and selling subscriptions in all our markets.
The big plus.
Perfect. Thank you very much for the comprehensive answers.
Your next question is from the line of Leonardo Olmos from UBS. Your line is now open.
Hi, Good morning, everyone My question.
Portals.
<unk> margins.
You should refer to talk only about the Mexican cycle.
How do you expect margin target volume.
Reformed already huge.
Huge in June since you bought no longer.
These loans and housing.
Two performing the remaining 2017.
Moreover.
What would be normalized levels of margins for both Mexico.
Approach.
Sure.
Yes, Thank you and another for your question.
We're not talking anymore about.
Margins of each.
Market, what I can tell you that.
Margins have Televisa and Univision as a whole.
Should be in line with.
2021, so the margins should be around 40%.
Of course, we have.
EBITDA.
Losses, because of our investments in the screening business, but the beauty of this combination of Televisa and Univision is that traditional business continues to grow double digit and continues to continues to.
You basically generate this EBIT done these margins and that allows us to finance.
Our investments in streaming basically with.
EBIT that are regenerating somewhat.
We expect double digit revenue growth because of.
The upfront sales in Mexico and in the United States.
Just.
Keep in mind that I can.
Pension again is that we kind of like historic upfront in both the United States and Mexico in Mexico, We grew up our upfront by 14% versus 2021, which is a historical number.
Also in terms of the number of clients that joined.
Trump plan.
So we can expect double digit revenue growth.
However for Televisa and Univision is a home and because of our investments in the streaming platforms, we expect EBIT to be flat too.
Slightly higher than 2021 in the medium term our screening platform should achieve.
Low to mid thirties.
Market.
Yes, sorry.
You mentioned, 40% margin.
Flattish, which is 21.
Andy.
Alrighty.
Davidson.
Yes.
That is for traditional media and in the.
The other one is for screaming, but basically we are expecting to restart Univision as a whole to have.
Our consolidated.
Margin of around 40%.
Okay, Okay very good.
Thank you very much have a good day.
Thank you.
Your next question is from the line up some eat at that time from New Street Research. Your line is still open.
Yeah, Hi, guys, two or three quick questions I'm sorry.
To go back to the to the contract profitability.
Just a little bit lost in some of those numbers can you confirm just the pro forma.
48 at 21, EBITDA was for Televisa and Univision. Please.
And then again I was a little bit confused I'm not sure where the EBITDA is projected to be flat full year 'twenty two.
Or whether indeed, the margin is expected to be flat.
And obviously given the growth you talked about double digit.
They don't quite consistent so sorry joined just.
If I can clarify that please.
Thank you Sumit, yes.
Consolidated pro forma EBITDA for Televisa and Univision in 2021 was $1 $65 billion.
And we believe that this.
EBITDA.
Let me say Univision will be flat in 2022, even after all the investments that we're making in our streaming platform both on developing the technology and the product itself and.
The investments in content for those platforms.
Okay. That's great. Thank you.
Secondly, just on the on the VIX launch.
Which which I realize is helpful thing for very long, but it has been in the market almost a month.
Can you give any sense as to.
The number of users.
Facebook was was born with.
What sort of trends you've seen in the in the brief period of time, it's been in the market again, any any sort of interesting developments in the U S versus Mexico. This is the rest of Latin America.
What you've seen so far would be would be super interesting I think some players will get any steer on what the.
Kind of usage number could go but anything you could give in terms of outlook would be super helpful. As well. Thank you.
Yes, well, let me give you some color we're not disclosing.
Disclosing yet the specific numbers. However, I can tell you that we're very happy with.
The progress we are seeing of course these are early stages, but in terms of.
Unique users of the platform both daily and monthly we're very happy with the progress in the U S and Mexico, and Latin and the Latin America.
Our rollout.
So.
It is working.
<unk> is working the platform.
Is working we're very happy with.
What we're seeing.
Basically that's that's what I can tell you sumit.
Also in terms of because im confident that we have the channels that we have included.
And all the video and content offering that we're having engagement continues to grow day after day so.
Basically a little color, we had the draw of the Qatar World Cup.
A special event.
On VIX.
It was extremely successful and that helped us grow the user base.
Okay. Thank you.
Your last question is from the line of Matthew Harrigan from Benchmark. Your line is now open.
Well. Thank you for taking my question.
Sure he knows a few hours ago, Comcast and charter formed a streaming initiatives.
The U S really.
Violating the chatter about going outside your service territory.
It's more of a roku <unk> alternative.
Thing else, but are you likely to provide programming for that notwithstanding Comcast.
Comcast ownership Telemundo.
And then secondly, with all the dislocations in the equity markets right now you're one of the top five.
VC companies in Mexico.
Does that really present opportunities for you or.
Do you think that you.
Everything youre likely to be pretty constrained in some of the and what we're trying to replicate some of the past successful investments you've made on the on the venture side in Mexico. Thank you.
Thank you Matthew.
As to your first question of course, I mean, we will expand our distribution of the <unk>.
<unk> service.
Anyone that is interested in.
Distributing.
These students do have seen of course, the cable companies in the United States have become Aggregators.
The streaming services enough content so.
Antibodies that is interested in reaching a distribution deal with with US in terms of distributing books is welcome.
And can you repeat your second question. Please I didn't hear that clearly.
Sure.
Clearly the capital markets are very.
Out of whack right now and you've been very active in the BC.
Market in Mexico.
In the U S I guess to a certain extent.
How do you feel about the possibility now.
Everyone is so confused.
Maybe Katherine I was wrong.
Italy available.
Partners.
As you've worked with in the past whether it be when bladder.
Someone else. Thank you.
Thank you Matthew.
Yes.
You are referring to the venture capital arm that we started in late 2019.
Yeah.
Yeah that is.
Been really successful for us and basically that model in place exchanging available advertising time slots for equity Stakes.
And basically this is with high growth startups or.
To see companies that have not had the opportunity to advertise on.
Free to air television and our other distribution platforms and.
Advertising platforms.
In essence, what we're doing with select companies based on their potential.
These have been the early stages of development.
And usually companies that need campaigns to position their brands and to position their products. So.
There, we're taking advantage of.
Inventory unsold inventory in terms of free to air television and other advertising platforms.
So that has allowed these companies to position their brands.
As top of mind.
And.
Basically.
We got great success stories.
Using this mechanism.
So we made investments in Carmax.
And clips and whatnot among others.
We did the scan.
With Softbank and general Atlantic.
As partners so.
In essence, we have closed eight investment in seven companies.
And four of those have become a unicorn so.
We're very happy with what we're seeing.
I have talked to each and every one of the founders of the company and they are extremely happy and excited about.
Advertising on over the air television to tell you the truth. When this started and most of them did not.
Foreseeing the fact that advertising on older their television was going to cost in terms of their brands brand position and failed.
Sales of it there.
Province, but makeup coming back.
Companies have come back to expand.
They are advertising with us so we have developed new clients and in the meantime, we have also invested in the.
The equity of these companies that have become great company. So we're planning to continue to do this as part of our venture capital arm.
And this will continue to grow and I think it's a great opportunity for us both in Mexico and in the United States now through Univision.
Thank you it looks like an exciting year ahead congratulations.
Thank you.
Okay.
That concludes our Q&A for today presenters. Please go ahead.
Well. Thank you very much for participating in our call and we'll be ready to take any additional questions by.
By phone please.
Any of US a call.
Do you want.
To have more information about anything that you're interested in so thank you very much.
This concludes today's conference call. Thank you for attending you may now disconnect.
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On the call.
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