Q3 2024 Grupo Televisa SAB Earnings Call Transcript
Key Points
- Grupo Televisa SAB (TV) improved profitability in its cable segment by almost 400 basis points to 39.4% compared to the third quarter of 2023.
- The company achieved a significant milestone by making its direct-to-consumer (DTC) business profitable within two years, faster than its peers.
- Consolidated operating cash flow grew by about 27% year on year, reaching around 11.3 billion pesos, accounting for approximately 24% of sales.
- The integration of Sky with the cable segment has led to operational efficiencies, including a reduction in OpEx by around 8.5% year on year.
- Grupo Televisa SAB (TV) generated over 6.3 billion pesos in free cash flow, representing a nine-month free cash flow yield of around 25% for its consolidated operations.
- Net revenue from cable operations decreased by 1.6% year on year due to the cancellation of a video package and the impact of a hurricane in Acapulco.
- Sky's third-quarter revenue fell by 13.2% year on year, driven by a decline in prepaid subscribers.
- The enterprise segment's net revenue declined by 22.6% year on year due to not renewing an important government contract.
- The operating segment income margin contracted by 60 basis points sequentially due to faster revenue decline at Sky compared to synergy realization.
- Grupo Televisa SAB (TV) faces challenges in further integrating and optimizing operations at Televisa Univision, requiring significant effort to unlock efficiencies.
Good morning, everyone and welcome to Grupo Televisa's third quarter, 2024 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 earnings release.
I'll now turn the call over to Mr Alfonso D goa, co Chief Executive Officer of Grupo Televisa. Please go ahead, sir.
Thank you, Elsa. Good morning, everyone and thank you for joining us with me. Today are Francisco Bim, CEO of Cable and Sky and Carlos Phillips CFO of Grupo Televisa.
Before discussing our third quarter, operating and financial performance, let me share with you what we believe are the key milestones achieved so far this year, both at Grupo Televisa and Televisa Univision first. The corporate restructuring process at our cable segment intended to improve profitability, optimize CapEx, increase free cash flow generation and
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