Grupo Televisa, S.A.B. (NYSE:TV) Q1 2023 Earnings Conference Call April 26, 2023 12:00 PM ET

Company Participants

Alfonso de Angoitia - Co-CEO

Pepe Antonio Gonzalez - CEO, Cable

Luis Malvido - CEO, Sky

Carlos Phillips - CFO

Conference Call Participants

Lucas Chaves - UBS

Carlos de Legarreta - ITAU

Phani Kanumuri - HSBC

Luca Brendon - Bank of America

Operator

Good morning everyone and welcome to the Grupo Televisa's First Quarter 2023 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 discussed in today's call and in the earnings release.

I would now like to turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Please go ahead, sir.

Alfonso de Angoitia

Thank you, Tim. Good morning everyone and thank you for joining us. With me today are Pepe Antonio Gonzalez, CEO of Cable; Luis Malvido, CEO of Sky; and Carlos Phillips, CFO of Grupo Televisa.

During the first quarter, Grupo Televisa's consolidated revenue reached Ps.18.5 million, representing a slight year-on-year decline of 0.5%, while operating segment income reached Ps.7 billion equivalent to a year-on-year decrease of 3.4%.

Revenue growth at our residential operations in Cable and our other businesses segment was partially offset by the climbing revenue at Sky and our enterprise operations in Cable.

We ended March with a network of 19 million homes after passing around 290,000 new homes during the quarter. We also delivered more than 290,000 fixed RGU net adds in cable, ending the first quarter with 16 million fixed RGUs.

We are confident that our wide geographic footprint and solid competitive position will allow us to keep delivering solid RGU net adds and gaining share of RGUs throughout 2023.

Our Cable ARPU has been relatively stable over the last few quarters, but we expect it to increase slightly from the second quarter -- in the second quarter due to the price increases we implemented earlier this month.

This and our ongoing cable RGU net adds momentum should allow us to accelerate revenue growth at our residential operations. While we continue to face a challenging environment at our enterprise operations in Cable, we are determined to stabilize this business throughout this year.

At Sky, we believe the transformational measures implemented during the second half of 2022 will allow us to gradually achieve sequential operating and financial improvement over the coming quarters.