Grupo Televisa S.A.B. (NYSE:TV) Q2 2022 Earnings Conference Call July 27, 2022 9:00 AM ET

Company Participants

Alfonso de Angoitia - Co-Chief Executive Officer

Pepe Antonio Gonzalez - Chief Executive Officer, Cable

Luis Malvido - Chief Executive Officer, Sky

Carlos Phillips - Chief Financial Officer

Conference Call Participants

Alejandro Gallostra - BBVA

David Joyce - Barclays

Marcelo Santos - JPMorgan

Alejandro Chavelas - Credit Suisse

Carlos Legarreta - GBM

Operator

Good morning, everyone, and welcome to the Grupo Televisa's Second 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 we discuss in today's call and in the earnings release. As a reminder, this call is being recorded.

And 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, Paul. 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 second quarter, Grupo Televisa's consolidated revenue reached MXN 18.5 billion, representing year-on-year growth of 0.3%, while operating segment income reached MXN 7 billion equivalent to a year-on-year decline of almost 5%. Revenue growth at our residential operations in Cable and our other businesses segment was partially offset by declining revenue at our enterprise operations in Cable and Sky.

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 since the last time we spoke, the global economy has gone through significant changes. GDP growth in the U.S. and Mexico is expected to slow down. The global economic outlook should remain challenged in the near future, while the thoughts of a global economic recession have increased.

We will continue to monitor the evolution of macro variables and we'll not hesitate to act decisively, taking necessary measures to preserve free cash flow in the event a further deterioration of the economy as has been the case in previous macroeconomic downturns.

It is important to highlight that we have already identified and presented to our Board in yesterday's meeting, the levers we will pull in every single business where we offer it in the event of a recession. As you may recall, during the COVID recession in 2020, excluding the other businesses segment, as most of them were fully closed for a significant portion of the year, Grupo Televisa's segment revenue and operating segment income for our 3 core operations grew by 2% and 2.1% year-on-year, respectively. We achieved this resilient operating and financial performance by implementing an aggressive cost reduction plan, which translated into MXN 2.2 billion in savings or the equivalent of 3.6% of our OpEx structure.