Q1 2026 Grupo Televisa SAB Earnings Call

April 29, 2026

Speaker #2: Please stay connected. The conference will begin shortly. Good morning, everyone, and welcome to the GRUPO TELEVISA's first quarter 2026 earnings conference call. Before we begin, I would like to draw your attention to the press release which explains the use of forward-looking statements and applies to everything we discuss in today's call.

Elsa: Good morning, everyone, and welcome to the Grupo Televisa's Q1 2026 earnings conference call. Before we begin, I would like to draw your attention to the press release, which explains the use of forward-looking statements and applies to everything we discuss in today's call and in the earning release. I will now turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Thank you, and over to you.

Operator: Good morning, everyone, and welcome to the Grupo Televisa's Q1 2026 earnings conference call. Before we begin, I would like to draw your attention to the press release, which explains the use of forward-looking statements and applies to everything we discuss in today's call and in the earning release. I will now turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Thank you, and over to you.

Speaker #2: And in the earning release. I will now turn the call over to Mr. Alfonso Diagnosia, Co-Chief Executive Officer of GRUPO TELEVISA. Thank you, and over to you.

Alfonso de Angoitia: Thank you, Elsa. Good morning, everyone, and thank you for joining us. With me today are Francisco Valim, CEO of Cable and Sky, and Carlos Phillips, CFO of Grupo Televisa. Before discussing our Q1 operating and financial performance, let me remind you of the strategic priorities approved by the board of directors of Grupo Televisa and TelevisaUnivision that we will pursue this year. At Grupo Televisa, we will continue to focus on attracting and retaining value customers to keep growing our internet subscriber base throughout this year, extract further synergies from the integration between izzi and Sky, execute on the implementation of OpEx and CapEx efficiencies, and upgrade 6 million homes to FTTH technology, ending 2026 with 75% of our total footprint passed with FTTH.

Alfonso de Angoitia: Thank you, Elsa. Good morning, everyone, and thank you for joining us. With me today are Francisco Valim, CEO of Cable and Sky, and Carlos Phillips, CFO of Grupo Televisa. Before discussing our Q1 operating and financial performance, let me remind you of the strategic priorities approved by the Board of Directors of Grupo Televisa and TelevisaUnivision that we will pursue this year. At Grupo Televisa, we will continue to focus on attracting and retaining value customers to keep growing our internet subscriber base throughout this year, extract further synergies from the integration between izzi and Sky, execute on the implementation of OpEx and CapEx efficiencies, and upgrade 6 million homes to FTTH technology, ending 2026 with 75% of our total footprint passed with FTTH.

With me today are Francisco Balim, CEO of Cable and Sky, and Carlos Phillips, CFO of Grupo Visa.

Before discussing our first quarter operating and financial performance, let me remind you of the strategic priorities approved by the Board of Directors of the Group, Visa, and TelevisaUnivision that we will pursue this year. We will continue to focus on attracting and retaining value customers to keep growing our internal subscriber base throughout this year and extract further synergies from the

Alfonso de Angoitia: Efficiency measures implemented over the last couple of years have already contributed to expanding our consolidated operating segment income margin by around 330 basis points in Q1, driven by a year-on-year OpEx reduction of around 8%. We would expect to sustain profitability above 40% over the coming quarters. At TelevisaUnivision, now that our direct-to-consumer business, ViX, represents over 20% of consolidated revenue and EBITDA, we are confident that additional value can be unlocked through further integration and operational optimization of our content business. Despite anticipated headwinds in the US from the cyclical timing of events such as the Winter Olympics and FIFA World Cup, we preserved our audience ratings and managed yields to drive pricing growth.

integration between e and Sky execute on the implementation of Opex and capex efficiencies and upgrade 6 million homes to ftth technology, ending 2026 with 75% of our total footprint, passed with ftth

Efficiency measures implemented over the last couple of years have already contributed to expanding our Consolidated. Operating segment income margin by around 330 basis points in the first quarter driven by a year-on-year Opex reduction of around 8%. And we would expect to sustain profitability above 40% over the coming quarters.

Alfonso de Angoitia: We also expanded our political sales infrastructure to ensure that we are well-positioned to capitalize on record political advertising spend ahead of the November midterm elections. In Mexico, the great results of our upfront position us well to continue monetizing the FIFA World Cup momentum with sales to date exceeding the prior 2022 World Cup cycle. Having said that, let me turn the call over to Valim, as he will discuss the operating and financial performance of our consolidated assets.

Alfonso de Angoitia: We also expanded our political sales infrastructure to ensure that we are well positioned to capitalize on record political advertising spend ahead of the November midterm elections. In Mexico, the great results of our upfront position us well to continue monetizing the FIFA World Cup momentum with sales to date exceeding the prior 2022 World Cup cycle.

Represents over 20% of Consolidated Revenue. We are confident that additional value can be unlocked through F further integration and operational optimization of our content business, despite anticipated headwinds in the US, from the cyclical timing of events, such as the Winter Olympics, and FIFA World Cup. We preserved our audience ratings and managed yields to drive pricing growth. We also expanded our political sales infrastructure to ensure that we are, well, positioned to capitalize on record political advertising. Spend ahead of the November midterm elections.

Alfonso de Angoitia: Having said that, let me turn the call over to Valim, as he will discuss the operating and financial performance of our consolidated assets.

In Mexico, the great results of our upfront position as well to continue monetizing the FIFA World Cup momentum with sales to date exceeding. The prior 2022 World Cup cycle

Having said that, let me turn the call over to Valim, as he will discuss the operating and financial performance of our consolidated assets.

Francisco Valim: Thank you, Alfonso. Good morning, everyone. First, let me walk you through the operating and financial performance of our cable operations. We ended March with a network of 20 million homes after passing around 12,000 new homes during the quarter. In addition, we upgraded over 1.5 million homes to fiber to the home technology, ending the Q1 with over 52% of our total footprint passed with FTTH. Moreover, we are on track to upgrade another 4.5 million homes to FTTH technology in the remainder of the year. In the Q1, our monthly churn rate remained below historical average of 2% for Q4 consecutive quarter as we keep executing our strategy to focus on value customers rather than volume, while working on customer retention and satisfaction.

Thank you, Alonso. Good morning, everyone. First, let me walk you through the operating and financial performance of our cable operations.

We ended at March with a network of 20 million homes after passing around 12,000 new homes during the quarter. In addition, we upgraded over 1.5 million homes to fiber-to-the-home technology.

Ending the first quarter with over 52% of our total footprint passed with ftth. Moreover, we are on track to upgrade another 4.5 million, homes to ftth technology in the remainder of the year.

In the first quarter, our monthly churn rate remained below a historical average of 2% for the fourth consecutive quarter as we keep executing our strategy to focus on value customers rather than volume.

Francisco Valim: Our broadband gross adds remained solid, allowing us to deliver 25,000 net adds during the Q1, in line with our Q4 of last year. In video, we experienced less cancellations than in the Q4 of last year. Therefore, we lost about 34,000 video subscribers in the Q1 compared to 31,000 disconnections in the Q4, and 43,000 cancellations in the Q3, 53,000 disconnections in the Q2, and the loss of 73,000 video subscribers in the Q1 of 2025. Furthermore, as we mentioned in our previous earnings conference call, we expect lower video cancellation numbers to continue going forward, influenced by our multi-year partnership with Formula One to provide live coverage of all Grand Prix by Sky Sports channels available through izzi and Sky, beginning the Q4 of last year and through the 2028 season.

While working on customer retention and satisfaction.

Our Broadband growth ads remain solid, allowing us to deliver 25,000 net ads during the first quarter in line with our fourth quarter of last year.

In video, we experienced less cancellations than in the fourth quarter of last year. Therefore we lost about 24,000 video subscribers in the first quarter compared to 31,000, disconnections in the fourth quarter and 43,000 consolations in the third quarter.

533,000 disconnections in the second quarter and the loss of 73,000 video subscribers in the first quarter of 2025.

Furthermore, as we mentioned in our previous earnings conference call, we expect lower video cancellation numbers to continue going forward influenced by our multi-year. Partnership with Formula 1 to provide live coverage of all Grand Prix by sky sports channels, available through easy and Sky beginning, the fourth quarter of last year and through the 2028 season.

Francisco Valim: Moving on, our mobile net adds of 95,000 subscribers during Q1 maintained the strong momentum of the last couple of quarters. Our MVNO service has been making our bundles more competitive, allowing us to increase share of wallet from our existing customers and helping us maintaining low churn. During the quarter, net revenue from our residential operations of MXN 10.6 billion, which account for around 89% of total cable revenue, increased by 0.9% year on year. This marks the best quarter of the last two years of our residential operations from a revenue growth performance standpoint and compares well to a full year revenue declines of 1.8% and 2.5% in 2025 and 2024 respectively.

Moving on our mobile, net adds of 95,000 subscribers during the first quarter, maintain the strong momentum of the last couple of quarters. Our mvno service has been making our bundles more competitive, allowing us to increase share of wallets from our existing customers and helping us maintaining low chart.

During the quarter, net revenue from our residential operations of 10.6 billion pesos, which account for around 89% of total cable Revenue increased by 0.9% year in year.

Francisco Valim: On a sequential basis, net revenue from our residential operations grew by 0.5%, signaling a gradual sequential recovery as well. Net revenue from our enterprise operations of MXN 1.3 billion, which accounted for around 11% of total cable revenue, increased by 30% year on year, partially due to the timing of revenue co-recognition of an important contract signed in Q4 2025 and because of easy comps. Adjusting this contract, net revenue from our enterprise operations grew by 15.6% as we have been signaling new deals with public and private customers. Moving on to Sky's operating and financial performance. During Q1, we lost 325,000 revenue generating units, mostly coming from prepaid subscribers that have not been recharging their services.

This marks the best quarter of the last 2 years of our residential operations from a revenue growth performance standpoint and Compares well to a full year Revenue declines of 1.8% and 2.5% in 2025 and 2024 respectively.

On a sequential basis. Net revenue from our residential operations, grew by 0.5% signaling a gradual sequential recovery as well.

Net revenue from our Enterprise operations of 1.3 billion pesos, which accounted for around 11% of total cable Revenue increased by 30% year, on year, partially due to the timing of Revenue. Recognition of an important contract side in the fourth quarter of 2025 and because of easy comps.

Adjusting this contract, net revenue from our Enterprise operations, grew by 15.6%. As we have been signaling, new deals with public and private customers.

Moving on to the Sky's operating and financial performance.

During the first quarter, we lost 325,000 revenue-generating units.

Francisco Valim: In addition, as we have discussed in the past, beginning the Q2 of last year, we started charging installation fee of MXN 1,250 to all new satellite pay TV subscribers to increase the return on investment for this service. This translate in a slow down in video gross ad additions for Sky that has been steady over the last 4 quarters. Sky's Q1 revenue of MXN 2.6 billion fell by 24.6% year on year, mainly driven by a lower subscriber base. To sum up, segment revenue of MXN 14.5 billion fell by 3.1% year on year, while operating segment income of MXN 6 billion increased by 5.2%, showing sustained momentum of the growth rebound experience of in the Q4 of last year.

Mostly coming from prepaid subscribers that have not been recharging their services.

In addition, as we have discussed in the past beginning, the second quarter of last year, we started charging installation. Few of 1,250 pesos to all new satellite PTV subscribers to increase the return on investment for this service.

Additions for sky that has been steady over the last 4 quarters.

Skye's first quarter revenue of 2.6 billion pesos fell by 24.6% year on year. Mainly driven by a lower subscriber base.

To sum up.

Segment revenue of 14.5 billion pesos fell by 3.1% year on year, while operating segment income of 6.0 billion pesos increased by 5.2%.

Francisco Valim: Our operating segment income margin of 41.4% expanded by 330 basis points year on year, making it the best quarter over the last 3 years in terms of profitability, driven by the efficiency measures that we have implemented and the synergies from the ongoing integrations between izzi and Sky. On a sequential basis, operating segment income increased by 0.9%, while profitability expanded by 50 basis points. Regarding CapEx deployment, our Q1 total investments of MXN 2.5 billion accounted for 17.2% of sales. The main reason behind having higher total investments relative to the Q1 of the last year was the FTTH upgrade of 1.5 million homes previously discussed.

Showing sustained momentum of the growth rate bound experience of in the fourth quarter of last year.

Our operating segment income margin of 41.4%, expanded by 330 basis points year on year.

Making it the best quarter of the last three years in terms of profitability, driven by the efficiency measures that we have implemented, and the synergies from the ongoing integrations between Asian and Sky.

On the sequential basis operating segment income increased by 0.9%. While your profitability expanded by 50 basis points,

Regarding capex deployment, our first quarter total Investments of 2.5 billion pesos accounted for 17.2% of sales.

Francisco Valim: Operating cash flow of Cable and Sky, which is equivalent to EBITDA minus CapEx, was MXN 3.5 billion in Q1, accounting for 24.2% of sales.

The main reason behind having higher total investments, relative to the first quarter of last year, was the FTTH upgrade of 1.5 million homes, previously discussed.

Alfonso de Angoitia: Thank you, Valim. Amazing job. Now let me walk you through TelevisaUnivision's Q1 results. The company's Q1 revenue of $1.1 billion increased by 5% year on year. Excluding the impact from the appreciation of the Mexican peso, TelevisaUnivision's Q1 revenue was flat, underscoring the resilience of our portfolio in a dynamic macro environment. During the quarter, results were driven by growth in ViX, which remains a key engine of expansion across both of our advertising and subscription businesses.

Finally, operating cash flow of cable and Sky, which is equivalent to Aid aminos in the first quarter accounting for 24.2% of sales. Thank you. Amazing job.

Now, let me walk you through television's first quarter results.

The company's first quarter revenue of 1.1 billion, increased by 5% year on year.

Excluding the impact from the appreciation of the Mexican peso, the Televisa Univision first quarter revenue was flat, underscoring the resilience of our portfolio in a dynamic macro environment.

Alfonso de Angoitia: We also delivered strong linear distribution and content licensing revenue in both regions, and total advertising results remained nearly flat even as we faced anticipated softness in the US from a sports calendar weighted to events outside our portfolio. While operational performance remained solid during the quarter, total operating expenses increased 11% or 5% excluding the appreciation of the Mexican peso, largely due to an increase in strategic marketing investments and a higher concentration of sports-related costs, primarily related to the Winter Olympics and the FIFA World Cup. As a result, adjusted EBITDA of $323 million declined by 6%. Moving on to the details of our revenue performance. During the quarter, consolidated advertising revenue decreased by 3% year on year. In the US, advertising revenue was 12% lower as growth in direct-to-consumer advertising revenue was offset by softness in linear networks.

During the quarter, results were driven by growth in Vicks, which remains a key engine of expansion across both of our advertising and subscription businesses.

We also delivered strong linear distribution and content. Licensing revenue in both regions and total advertising results remained nearly flat, even as we faced anticipated softness in the US from a sports calendar weighted to events outside our portfolio.

While operational performance remained solid during the quarter total, operating expenses increased 11% or 5%. Excluding the appreciation of the Mexican peso largely due to an increase in strategic marketing Investments and a higher concentration of sports related costs primarily related to

To the Winter Olympics, and the FIFA World Cup.

As a result, adjusted Eva of 323 million declined by 6%.

Alfonso de Angoitia: Moving on to the details of our revenue performance. During the quarter, consolidated advertising revenue decreased by 3% year on year. In the US, advertising revenue was 12% lower as growth in direct-to-consumer advertising revenue was offset by softness in linear networks. In Mexico, advertising revenue increased 13% year on year, driven by DTC growth, which partially offset a timing shift of private sector advertising revenue to latter quarters related to FIFA World Cup campaigns.

Alfonso de Angoitia: In Mexico, advertising revenue increased 13% year on year, driven by DTC growth, which partially offset a timing shift of private sector advertising revenue to latter quarters related to FIFA World Cup campaigns. During the quarter, consolidated subscription and licensing revenue increased by 15% year on year. In the US, subscription and licensing revenue grew by 12, driven by continued DTC momentum, higher average rates, and incremental revenue from Hulu + Live TV. In Mexico, subscription and licensing revenue increased by 28%, supported by the subscriber growth in ViX's premium tier, higher average rates, and growth in content licensing driven by demand for our sports rights. Now, we have fully lapped the renewal cycle impacts that we experienced last year, positioning us for more normalized growth comparison going forward.

Moving on to the details of our Revenue performance. During the quarter Consolidated, advertising Revenue, decreased by 3% year on year in the US advertising. Revenue was 12%. Lower as growth in the direct to Consumer. Advertising Revenue was offset by softness in linear Networks.

Alfonso de Angoitia: During the quarter, consolidated subscription and licensing revenue increased by 15% year on year. In the US, subscription and licensing revenue grew by 12, driven by continued DTC momentum, higher average rates, and incremental revenue from Hulu + Live TV. In Mexico, subscription and licensing revenue increased by 28%, supported by the subscriber growth in ViX's premium tier, higher average rates, and growth in content licensing driven by demand for our sports rights. Now, we have fully lapped the renewal cycle impacts that we experienced last year, positioning us for more normalized growth comparison going forward.

In Mexico advertising Revenue increased 13% year on year, driven by DTC growth, which partially offset a timing shift of private sector advertising Revenue to latter, quarters related to FIFA World Cup campaigns.

During the quarter Consolidated, subscription and Licensing Revenue increased by 15% year on year.

In the US, Subscription and Licensing revenue grew by 12%, driven by continued DTC momentum, higher average rates, and incremental revenue from Hulu Live TV.

In Mexico, subscription and licensing revenue increased by 28%, supported by the subscriber growth. In ViX's premium tier, higher average rates and growth in content licensing were driven by the demand for our sports rights.

Alfonso de Angoitia: Turning on to ViX, we delivered another quarter of solid growth and profitability and reinforced the strength of our DTC strategy. Its subscription video on-demand tier also achieved double-digit subscriber growth and achieved an all-time low global churn. In addition, we achieved an engagement record on ViX with 1 billion streaming hours across AVOD and SVOD tiers while advancing our ecosystem readiness ahead of the FIFA World Cup. We have made strong progress in executing our World Cup strategy, which is clearly focused on driving acquisition, expanding accessibility, and sustaining engagement beyond the tournament. Moving on to the balance sheet, TelevisaUnivision ended the quarter with $411 million in cash and approximately $725 million of available capacity on its credit facilities.

Now, we have fully led the renewal cycle impacts that we experienced last year, positioning us for more normalized growth comparison going forward.

Turning on to Vicks, we delivered another quarter of solid growth and profitability and reinforced the strength of our DTC strategy. Its subscription video on demand tier. Also achieved, double digit, subscriber growth and achieved an all-time low Global turn in addition, we achieved an engagement record on Vicks with 1 billion streaming hours across aot. And as what years while advancing, our ecosystem Readiness ahead of the FIFA World Cup.

Including our world cup strategy, which is clearly focused on driving acquisition expanding accessibility and sustaining engagement beyond the tournament.

Alfonso de Angoitia: Capital expenditures were $34 million for the quarter, essentially flat year on year. We expect 2026 full-year CapEx to be consistent with that of 2025. At the end of Q1, TelevisaUnivision's leverage ratio was 5.7 times EBITDA, a modest increase from 5.6 times at the end of 2025, partially due to the seasonality of the business. Finally, earlier this month, TelevisaUnivision issued $1.5 billion in new senior notes due 2033 and offered to purchase all its outstanding notes due 2028. With this, our next debt maturity will come in 2029.

Moving on to the balance sheet, TelevisaUnivision ended the quarter with $411 million in cash and approximately $725 million of available capacity under its credit facilities.

Capital expenditures were 34 million for the quarter. Essentially flat year on year and we expect 2026 full year capex to be consistent with that of 2025.

At the end of the first quarter, Televisa University's leverage ratio was 5.7 times, a modest increase from 5.6 times at the end of 2025, partially due to the seasonality of the business.

Alfonso de Angoitia: Moving on, let me remind you that on 30 January, we used part of our free cash flow generated last year at Grupo Televisa to pay the remaining $207 million principal amount of our senior notes maturing this year. Moreover, at the end of Q1, Grupo Televisa's leverage ratio of 2x EBITDA compared to 2.4x by the end of Q1 2024 due to our free cash flow generation of around MXN 4.3 billion over the last twelve months and our accumulated year-on-year EBITDA growth of 1.5%.

Finally earlier this month, the levisa Univision issued 1 and a half billion dollars in new senior notes, due 2033 and offered to purchase all its outstanding notes due 2028 with this, our next debt maturity will come in 2029.

Moving on. Let me remind you that, on January 30th, part of our free cash flow generated last year at Grupo Televisa was used to pay the remaining $207 million principal amount of our senior notes maturing this year.

Alfonso de Angoitia: To wrap up, Bernardo and I are confident that our focus on value customers, efficiencies, and ongoing integration between izzi and Sky at Grupo Televisa and further integration and operational optimization at TelevisaUnivision, now that our DTC business represents over 20% of consolidated revenue and adjusted EBITDA, will allow us to create greater value for our shareholders in 2026. Now we're ready to take your questions. Elsa, could you please provide instructions for the Q&A?

moreover, at the end of the first quarter, leverage ratio of 2 times Eva compared to 2.4 Times by the end of the first quarter of 2024, due to our free cash flow generation of around 4.3 billion pesos over the last 12 months and our accumulated year-on-year, Eva growth of 1 and a half percent,

To wrap up, Bernardo and I are confident that our focus on value, customer efficiencies, and ongoing integration between izzi and Sky at Grupo Televisa, and further integration and operational optimization at TelevisaUnivision, now that our DTC business represents over 20% of consolidated revenue and adjusted EBITDA, will allow us to create greater value for our shareholders in 2026.

Now we're ready to take your questions. Elsa, could you please provide instructions for the Q&A?

Operator 2: Thank you. We will now begin the question and answer session. To ask a question, you may press star and one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble a roster. We have the first question from the line of Matthew Harrigan from Benchmark. Questioner, please go ahead.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star and one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble a roster. We have the first question from the line of Matthew Harrigan from Benchmark. Questioner, please go ahead.

Thank you. We will now begin the question of the session.

To ask a question. We press star and 1 on your touchtone phone.

If you're using a speaker-phone, please pick up your handset before pressing the keys.

If at any time your question has been addressed and you would like to withdraw your question. Please press star and then 2

At this time, we will pause momentarily to assemble a roster.

We have the first question from the line of Matthew Harrington.

From Benchmark stones.

Question, should you please go ahead?

Matthew Harrigan: Reaching a crossover now on the English market on streaming versus linear. I know Spanish is a little more resilient on the linear side, but what are you seeing on AVOD, you know, pricing premiums, you know, CPMs? What, I know you've done some interesting things with the technology stack. Could you talk about that? I guess that's my primary question, then I had a follow-up.

Reaching Across over. Now on the English Market on, on streaming versus versus linear I know Spanish is a little more resilient on the linear side but what are you seeing on avod? You know, pricing premiums, you know, C cpms. And, uh, what I I know you've done some interesting things with the the technology stack. Could you talk about that?

and uh,

I guess that's my primary question that I had. I had a follow-up.

Alfonso de Angoitia: Hi, Matthew. Well, we feel great about our service, our technology, and if you saw the growth of ViX, it was spectacular. We feel really comfortable with what we're offering, both technologically. We need some things that have to do with further personalization and recommendations. We're moving in the right direction, but that needs a little improvement. But in general, I think the service technologically is great. And as a result of that and our content, if you saw our numbers, I think in terms we have grown engagement, we have grown the total stream hours. We're happy with that. Of course, as a result of that, we're selling more advertising on the platform.

Hi Matthew. Well, we feel uh, great about our, our our service, our technology. And uh, if you saw the

uh, the growth of vix it was

Spectacular. So uh so we feel really uh comfortable with what uh what we're offering both uh technologically. We need some

Some, uh, some things that have to do with, uh, further personalization, uh, and recommendations. Uh, so we're moving in the right direction, but that needs a little Improvement. But in general, I think the the service technologically is, uh, is great.

Alfonso de Angoitia: We're happy with the development of ViX.

Uh, and as a result of that and our content, if you saw uh, our numbers, I think, uh, in terms we have grown engagement. We have grown the, the total stream uh hours. Um, so we're we're happy with uh, with that. Uh, of course. It's a result of that, we're selling more advertising on the platform, um, so we're happy with, uh, with the development of uh, of picks.

Matthew Harrigan: Then you're one of the leading global Spanish news providers, obviously you're doing a lot in the mini novellas and all that in the short form, you know, content. What do you think the prospects are for ancillary, you know, monetization on TikTok and other, you know, digital forms? Cause there's a plethora of content that's mostly on AVOD and your linear channels right now. Thank you.

Any novellas and all that in the short form, you know, content. What do you think the prospects are for, uh, ancillary monetization on on Tik Tok and other uh, you know, digital forms because there's there's a plethora of content that that's mostly, uh, on on Ava, on your linear channels right now. Thank you.

Alfonso de Angoitia: Yeah. As to the micro novellas, we have been successful. Last year we produced around 30. This year we will produce more than 100. I mean, we're developing that market. We're selling advertising on those, monetization is working. We have the micros on ViX primarily, they're also on other platforms. Monetization on TikTok is difficult, we're talking to them because it's difficult. We are talking to them. We're generating a lot of engagement and of course on YouTube, on TikTok, et cetera. Our content works. Our content has huge engagement, huge interest in general. We're working with those platforms in terms of monetization.

Yeah, as to the micro novellas.

We have been successful.

This year we will produce, uh, more than 100. So, um, we're I mean, we're, we're developing that market we're selling advertising on on those. So, um, monetization is working, we have, uh, the micros on on bigs primarily, but, uh, they're also on another platforms. Um, monetization on on Tik Tok talk is is uh difficult, we're talking to them because it's

Alfonso de Angoitia: Today we're monetizing that primarily on ViX.

It's difficult. Um, but uh, but we are talking to them. We're generating a lot of, um, engagement on a and and of course, um um, on on YouTube on Tik Tok Etc. So our content Works, our content has uh, huge engagement, uh, huge interest in general. So um, we're working with those platforms in terms of monetization. Uh, today we're monetizing that uh, primarily on on vix

Matthew Harrigan: Great. Thank you.

Great. Thank you.

Operator 2: Thank you. We have the next question from the line of Ernesto Gonzalez from Morgan Stanley. Please go ahead.

Operator: Thank you. We have the next question from the line of Ernesto Gonzalez from Morgan Stanley. Please go ahead.

Thank you.

We have the next question from the line of nsto Gonzalez from Morgan Stanley. Please go ahead.

Ernesto Gonzalez: Thank you for taking our question. It's two. First one is, can you talk a little bit about the strong margins you delivered and how sustainable these are going forward, especially considering some of the top-line pressures you have from Sky? The second one is, can you talk a little bit about the competition in the ViX market? That's it. Thank you.

Ernesto González: Thank you for taking our question. It's two. First one is, can you talk a little bit about the strong margins you delivered and how sustainable these are going forward, especially considering some of the top-line pressures you have from Sky? The second one is, can you talk a little bit about the competition in the ViX market? That's it. Thank you.

Thank you for taking your question. It's uh, 2 1st 20. Can you talk a little bit about the the strong margins you delivered?

And how sustainable these are going forward, especially considering some of the topline pressures you have from Sky? And the second one is, can you talk a little bit about the competition in the fixed market?

Um, that's it. Thank you.

Alfonso de Angoitia: Thank you for your question, Ernesto. Valim, can you answer, please?

Francisco Valim: Sure. The margins will fluctuate around the 40% range. In terms of the top line competition, you know, this is a very competitive market where we all play a role. We tend to play a role more in the more sophisticated, more long-term clients that stay with us. Our churn is, like we said, between this 1.92% range and has been like that. We don't think that going after huge volumes of new acquisitions will drive us any value moving forward. I think this is more or less how we see the market.

Thank you for your question, Ernesto, valim. Can you answer please?

Sure. So the the margins will will will fluctuate around the, the 40% uh, uh, range in terms of, uh, the the Top Line competition. This is this is, you know, should this is a very competitive market where we all play play a role. We we tend to play a role more in the

Uh, more sophisticated more, uh uh long-term uh clients that stay with us. So our turn is like we said between this 1.92% range and has been like that, we don't, we don't go, we don't think that going after a huge volumes of, uh, new, uh, Acquisitions will drive us any value moving forward. So I think this is more or less how we see.

The market.

Ernesto Gonzalez: Really clear. Thank you.

Ernesto González: Really clear. Thank you.

Really clear. Thank you.

Operator 2: We have the next question from the line of Livia Mizobata from JP Morgan. Please go ahead.

Operator: We have the next question from the line of Livia Mizobata from JP Morgan. Please go ahead.

We have the next question from the line of Olivia. Mizobata from JP Morgan. Please go ahead.

Livia Mizobata: Hi, everyone. Good morning. My first question goes on the line of M&A. How is your appetite evolving, and do you have any updates in your capital allocation strategy? The second one, it would be interesting to have an updated outlook for your CapEx this year and for the mid to long term, considering the homes test that you already did in this quarter and your prospect for the next ones. Thank you.

Livea Mizobata: Hi, everyone. Good morning. My first question goes on the line of M&A. How is your appetite evolving, and do you have any updates in your capital allocation strategy? The second one, it would be interesting to have an updated outlook for your CapEx this year and for the mid to long term, considering the homes test that you already did in this quarter and your prospect for the next ones. Thank you.

Hi everyone. Good morning. My first question goes on the line of

And do you have any updates in your capital allocation strategy? And the second one—it would be interesting to have an updated outlook for your capex this year, and for the medium to long term, considering the home test that you already did in this quarter and your prospects for the next ones. Thank you.

Alfonso de Angoitia: Thank you for your question. As to the capital allocation priorities, as you know, we're always exploring M&A opportunities in our sector. Of course, we will continue to use our free cash flow, the free cash flow that we have generated to keep strengthening our balance sheet. As I mentioned, we're prepared for potential M&A opportunities in the Mexican telecommunication sector. As you might remember, on 30 January this year, we used part of our free cash flow generated last year at Grupo Televisa to pay the remaining $207 million of our senior notes maturing this year.

Uh, thank you for your question. Um, as to the capital allocation priorities.

As you know, we're always exploring, uh, MMA opportunities uh, in our sector. And um, of course, uh, we will continue to use our free cash flow. Um, the the free cash flow that we have generated to keep uh strengthening our balance sheet.

Um and uh as I mentioned, we're prepared for potential m&a opportunities in the Mexican telecommunication sector. Uh, as you might remember on uh, January 30th this year, uh, we used part of our free cash flow generated last year at uh, group Televisa to pay the remaining, uh, 207 million dollars of uh,

Alfonso de Angoitia: At the end of Q1, Grupo Televisa's leverage ratio of 2 times EBITDA compared to 2.4 times by the end of Q1 2024. This is a result of our free cash flow generation of MXN 4.3 billion over the last 12 months and our accumulated year-on-year EBITDA growth of 1.5%.

Our senior notes maturing this year.

So, um, at the end of the first quarter group of the Lisa's leverage ratio, um, of 2 times Eve, at that compared to, uh, 2.4 Times by the end of the first quarter of 2024, um, and this is a result of our free cash flow generation of uh 4.3 billion pesos over the last uh 12 months. And uh our accumulated year on year, even growth of uh 1 and a half percent.

Francisco Valim: Regarding our CapEx, it will be while we are upgrading the network in the low 20s range percentage of revenue. As we finish that, next year, obviously it should go down to the 15% range, but that would be only H2 of next year.

Uh, it will be, uh, why we are upgrading the network in the low 20s range percentage of revenue. As we finish that next year, obviously it should go down to the 15% range, but that would be only the second half of next year.

Livia Mizobata: Perfect. Very clear. Thank you.

Livea Mizobata: Perfect. Very clear. Thank you.

Perfect, very clear. Thank you.

Operator 2: Thank you. We have the next question from the line of Rafael from UBS. Please go ahead.

Operator: Thank you. We have the next question from the line of Rafael from UBS. Please go ahead.

Thank you. We have the next question from the line of Raphael from UBS. Please go ahead.

Rafael: Hi, everyone. Thanks for taking my questions. Well, I'm gonna start here by asking about the share of income from associates and joint ventures line for Grupo Televisa. It had a pretty relevant increase this quarter. You mentioned in the report that the main drivers were higher earnings at TelevisaUnivision and your increased stake in the company, right? If you could please comment more about that and comment how should we think about this line going forward.

[Analyst] (UBS): Hi, everyone. Thanks for taking my questions. Well, I'm gonna start here by asking about the share of income from associates and joint ventures line for Grupo Televisa. It had a pretty relevant increase this quarter. You mentioned in the report that the main drivers were higher earnings at TelevisaUnivision and your increased stake in the company, right? If you could please comment more about that and comment how should we think about this line going forward.

Hi everyone. Thanks for taking my questions. Uh, well, when it starts here by asking about the share of income from Associates and Other Ventures line for Grupo Televisa, it had a pretty relevant increase this quarter. Um, you mentioned in the report that the main drivers were higher earnings at Univision and your increased stake in the company, right? So if you could please comment more about that and comment on how should we think about this line going forward?

Francisco Valim: Yep. Thank you for your question, Rafael. Carlos, can you please answer?

Alfonso de Angoitia: Yep. Thank you for your question, Rafael. Carlos, can you please answer?

Carlos Phillips: Yeah. Rafael, as you mentioned, we had an increase of around MXN 1.2 billion during the Q in this line. As you may recall, we account for our investment in TelevisaUnivision using the equity method. On this line we include things, for example, as our share of net income in TelevisaUnivision. We also include the income from our preferred shares in TelevisaUnivision. As you mentioned, during the Q, we had an increase due to the fact that our share in Televisa, our ownership stake increased from 43.2 to 44.3. Every Q, this is normal in TU, there are increases and decreases depending on things like, for example, vesting of stock options and other items like that.

Yep, thank you for your question, Rafael. Uh, Carlos, can you please? Uh, answer? Yeah, as you mentioned, we have an increase of around 1.2 billion pesos during the quarter in this line. As you may recall, we account for our investment in television, using the equity method. So, on this line, we include things for example, as our our share of net income in Envision. We also include

Carlos Phillips: As you mentioned, during the Q, we had an increase due to the fact that our share in Televisa, our ownership stake increased from 43.2 to 44.3. Every Q, this is normal in TU, there are increases and decreases depending on things like, for example, vesting of stock options and other items like that. The main driver of the increase during this quarter was that TU did a repurchase of certain preferred stock, which increased our share. That's basically the driver on that, which is the lion's share of the increase we saw in that line.

Carlos Phillips: The main driver of the increase during this quarter was that TU did a repurchase of certain preferred stock, which increased our share. That's basically the driver on that, which is the lion's share of the increase we saw in that line.

Will the income from our preferred shares in division? And as you mentioned during the quarter, we had an increase due to the the fact that our share in the Visa, our ownership, stake increased from 43.2 to 44.3 every quarter. This is normal in in to there are increases and decreases depending on things like for example, visiting of stock options and other items like that, the main driver of the increase. During this quarter was that you did a Rees of certain preferred stock, which increased our share. So that that's basically the driver on, on that, which is, uh, the, The Lion Share of the increase. We saw, and that line

Rafael: Okay. Super clear. Just a quick follow-up on CapEx. If we look at 2025 levels, it was concentrated, more in H2 of the year. Looking at this year, should we expect, also CapEx to be back-end loaded?

[Analyst] (UBS): Okay. Super clear. Just a quick follow-up on CapEx. If we look at 2025 levels, it was concentrated, more in H2 of the year. Looking at this year, should we expect, also CapEx to be back-end loaded?

Okay. Super clear. Just a quick follow up on on capex. Uh, if we look at 2025 levels, it was concentrated uh, more in the second half of the year.

So looking at this year, should we expect also capex to be back-end loaded?

Francisco Valim: No. This year it should be more level because we are already ramped up the build-out of the network last year. We are on track and at the current speed, stable speed. We wouldn't see a spike towards the end. It should be more flattish, you know, throughout the year.

No it this year, it should be more level because, uh, we are, we, we are already ramped up the the built out of the network last year. So we are on track and and at the at the current speed of stable speed. So I I we wouldn't see a spike towards the end should be more flattish, you know, throughout the year.

Rafael: Okay. Super clear. Thanks.

[Analyst] (UBS): Okay. Super clear. Thanks.

Okay, super clear. Thanks.

Operator 2: Thank you. We have the next question from the line of David Lopez from New Street Research. Please go ahead.

Operator: Thank you. We have the next question from the line of David Lopez from New Street Research. Please go ahead.

Thank you.

We have the next question from the line of David Lopez from New Street research. Please go ahead.

David Lopez: Hi. Thank you for the opportunity. I had a couple of quick question, please. The first one is if you could talk about if you have plans for price increases on broadband this year. The second question, I was wondering, the 25% of the network that will not be fiber to the home, do you have plans in the longer term to upgrade these homes as well, or will they stay non-fiber? Thank you.

David Lopes: Hi. Thank you for the opportunity. I had a couple of quick question, please. The first one is if you could talk about if you have plans for price increases on broadband this year. The second question, I was wondering, the 25% of the network that will not be fiber to the home, do you have plans in the longer term to upgrade these homes as well, or will they stay non-fiber? Thank you.

Hi, thank you for the opportunity. Um, I had a couple of quick questions, please. The first one is, if you could talk about your—if you have plans for price increases on broadband this year. And the second question, I was wondering: the 25% of the network that will not be fiber to the home, do you have plans in the longer term to upgrade these homes as well, or will they stay non-fibered?

Thank you.

Francisco Valim: David, yes. It will be, by the end of this year, we'll be at 75%. By mid-2027, we'll be 100% fiber. It's just a function of timing. Regarding price increases, we actually did a price increase of MXN 30 now in March on broadband.

David, yes. Uh, it's not that it will be, it will be by the end of this year. We'll be set 75 by mid 2027 will be 100%, uh, fiber. So it it's just a, a function of time in regarding price increases, we actually did a price increase of 30 pesos now in March on on on broadband,

David Lopez: Okay. Very clear. Thank you.

David Lopes: Okay. Very clear. Thank you.

Okay, very clear. Thank you.

Operator 2: We have the next question on the line of Luca Brendon from Bank of America. Please go ahead.

Operator: We have the next question on the line of Luca Brendon from Bank of America. Please go ahead.

We had the next question from the line of Luka Breton from Bank of America. Please go ahead.

Luca Brendon: Hi. Good morning, everyone. Thank you for taking my question. I have one here from my side. You had a very strong performance on enterprise this quarter, and I wanted to understand how much of that is recurring and will continue to the next quarters. You mentioned that part of it was due to the timing, the recognition timing for an important project. Does that only impact this quarter or will it also impact other quarters? Thank you.

Lucca Brendim: Hi. Good morning, everyone. Thank you for taking my question. I have one here from my side. You had a very strong performance on enterprise this quarter, and I wanted to understand how much of that is recurring and will continue to the next quarters. You mentioned that part of it was due to the timing, the recognition timing for an important project. Does that only impact this quarter or will it also impact other quarters? Thank you.

Hi, good morning everyone. Thank you for taking my question, have 1 here from my side. Uh, you had a very strong performance on Enterprise this quarter and I wanted to understand how much of that is recurring and we continue to the next quarters. Uh you mentioned that part of it was due to the timing the recognition timing for an important project. So does that only impact this quarter or will it also impact other quarters? Thank you.

Francisco Valim: In terms of revenue, it is a recurring contract. It will be impacting other quarters as well. As far as growth is concerned, obviously, the contract has a spike in growth. It should not be repeated as much as we did. We are anticipating still high growth from our enterprise business.

Well, as far as growth is concerned, obviously, the contract has spiked in growth, so it should not be repeated as much as we did, but we are anticipating, uh, still high growth from our Enterprise business.

Luca Brendon: Very clear. Thank you.

Lucca Brendim: Very clear. Thank you.

Very clear. Thank you.

Operator 2: Thank you. Ladies and gentlemen, that concludes our question and answer session. I would like to turn the conference over back to Mr. Alfonso de Angoitia for any closing remarks.

Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. I would like to turn the conference over back to Mr. Alfonso de Angoitia for any closing remarks.

Thank you.

Ladies and gentlemen, that concludes our question-and-answer session. I would like to turn the conference back over to Mr. Alfonso Noriega for any closing remarks.

Alfonso de Angoitia: Thank you very much. Well, call us if you have any additional question. We're very happy with the results of this quarter. Thank you and see you later.

Thank you very much. Well uh, call us if you have any additional questions, uh, we're very happy with the results of this quarter.

Um, thank you, and see you later.

Operator 2: Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you.

Your conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Q1 2026 Grupo Televisa SAB Earnings Call

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