Grupo Televisa, S.A.B. (NYSE:TV) Q3 2022 Earnings Conference Call October 28, 2022 9:00 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

Conference Call Participants

David Joyce – Barclays

Carlos Legarreta – Itau

Alejandro Chavez – Credit Suisse

Soomit Datta – New Street Research

Marcelo Santos – JPMorgan

Alejandro Gallostra – BBVA

Operator

Good morning, everyone, and welcome to the Grupo Televisa’s Third Quarter 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.

I will now 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, Cole. 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 third quarter, Grupo Televisa’s consolidated revenue reached Ps.19.3 billion, representing year-on-year growth of 3.6%, while operating segment income reached Ps.7 billion equivalent to a year-on-year decline of 6.7% mainly driven by the amortization of costs related to the transmission rights of the World Cup at Sky. Adjusting for this Grupo Televisa’s consolidated operating segment income has fallen only by 3.1%. Revenue growth in cable and our other businesses segment was partially offset by declining revenue at Sky. Still, as we discussed in our previous earnings call, this is a transformational year for Sky and we’re confident that next year this business will experience a strong rebound, especially at the EBITDA level. Moreover, our expansion plan in cable is working very well this year, allowing us to gain market share of RGUs while keeping our ARPU flat.

We expect the solid RGU net adds momentum to continue going forward. The Pepe Antonio and Luis will elaborate on the operating and financial performance of each of our core consolidated segments in their remarks. But before, let me say that even though global financial conditions have tightened economic activity in the U.S. and Mexico remained relatively healthy during the quarter. However, the global economic environment is likely to deteriorate as the hiking cycle continues with interest rates potentially peaking at some point in 2023. As we mentioned three months ago, we will continue to monitor the evolution of macro variables and will not hesitate to act decisively taking necessary measures to preserve free cash flow as has been the case in previous macroeconomic downturns.