Grupo Televisa, S.A.B. (NYSE:TV) Q4 2022 Results Conference Call February 24, 2023 10:00 AM ET

Company Participants

Alfonso de Angoitia - Co-Chief Executive Officer

Pepe Antonio Gonzalez - Chief Executive Officer of Cable

Luis Malvido - Chief Executive Officer of Sky

Carlos Phillips - CFO of Grupo Televisa

Conference Call Participants

Fred Mendes - Bank of America

Leonardo Ramos - UBS

Marcelo Santos - JP Morgan

Carlos Legarreta - Itau

Soomit Datta - New Street Research

Operator

Good morning, everyone, and welcome to the Grupo Televisa's Fourth Quarter and Full Year 2022 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. Please note this event is being recorded.

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, Chuck. 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. Last year was marked by several milestones, both at Grupo Televisa and TelevisaUnivision, which we are confident will allow us to deliver sustainable top-line growth and free cash flow generation in 2023 despite challenging global macroeconomic environment.

At Grupo Televisa, we finished last year with almost 19 million homes passed after passing around 1 million new homes through the throughout the year, and delivered more than 1.2 million fixed RGU net adds in cable, or over three times the RGU net ads we had in 2021. We ended 2022, with almost 16 million fixed RGUs. Moreover, we are confident that our wide geographic footprint and solid competitive position will allow us to keep delivering strong RGU net adds in 2023.

We redefined our sales commission model and rebalanced our channel mix ups guide, which will allow us to materially improve sales quality going forward. This will help us stabilize our subscriber base, and overall revenue streams at sky, while materially reducing OpEx and CapEx intensity. We expect sky's free cash flow generation to improve significantly beginning in 2023. We also announced the plan to simplify further our equity story. By spinning off our other businesses including the Soccer Team America, the Estadio Azteca, the gaming operations and publishing and distribution of magazines, creating a new controlling entity that will be listed on the Mexican stock exchange.