Grupo Televisa, S.A.B. (NYSE:TV) Q1 2022 Earnings Conference Call April 27, 2022 9:00 AM ET

Company Participants

Alfonso de Angoitia – Co-Chief Executive Officer

Antonio Gonzalez – Chief Executive Officer of Cable

Luis Malvido – Chief Executive Officer of Sky

Carlos Phillips – Chief Financial Officer

Conference Call Participants

David Joyce – Barclays

Marcelo Santos – J.P. Morgan

Leonardo Olmos – UBS

Soomit Datta – New Street Research

Matthew Harrigan – Benchmark Company

Operator

Good morning, everyone and welcome to Grupo Televisa's First 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. 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, Manuel. Good morning, everyone, and thank you for joining us. With me today are Jose Antonio Gonzalez, CEO of Cable, Luis Malvido, CEO of Sky, and Carlos Phillips, CFO at Grupo Televisa. While the macroeconomic environment remains volatile, we're confident that we will deliver solid operating performance at both Grupo Televisa and Televisa Univision throughout the year. Mexico's GDP growth is expected to slow to around 2% in 2022 from 4.8% last year.

In addition, high inflation has proved more persistent than initially expected as headline inflation remains above 7%. This coupled with the expected monetary policy tightening at the Fed will keep pushing Bank of Mexico towards further policy rate increases throughout the year. On a more positive note, consumption has been recovering since last year due to record high remittances of around $52 billion, an increase of approximately 27% year-on-year and that have remained strong in January and February growing by about 22%.

Also after more than two years, social distancing measures related to COVID-19 continued to decline allowing us to operate under normal circumstances. Despite the expected economic slowdown, we are confident that we will deliver strong revenue growth at Televisa Univision and improving operating performance at Grupo Televisa throughout the year.

Still, it's important to highlight that we expect growth in 2022 to be back-end loaded (ph), both at Televisa Univision and Grupo Televisa driven by several factors such as the midterm elections in the United States, increased advertising spending in Mexico due to the Qatar World Cup during the fourth quarter, the monetization of the World Cup rights. Solid RGU net adds in the reminder of the year at Cable and price increases at Sky.