Grupo Televisa, S.A.B. (NYSE:TV) Q3 2023 Earnings Call Transcript October 27, 2023 10:00 AM ET

Company Participants

Alfonso de Angoitia - Co-CEO

Francisco Valim - CEO of Cable

Luis Malvido - CEO, Sky

Wade Davis - CEO of Televisa-Univision

Conference Call Participants

Fred Mendes - Bank of America

Vitor Tomita - Goldman Sachs

Cesar Medina - Morgan Stanley

Carlos Legarreta - Itau

Marcelo Santos - JPMorgan

Operator

Good morning, everyone, and welcome to Grupo Televisa’s Third 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 we will 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, Sheila. Good morning, everyone, and thank you for joining us. With me today are Wade Davis, CEO of Televisa Univision; Francisco Valim, CEO of Cable; Luis Malvido, CEO of Sky; and Carlos Phillips, CFO of Grupo Televisa. Wade, Valim, and Luis will discuss the operating and financial performance of each business they manage in their remarks.

But before doing that, I would like to ask Valim to give you an update on the outlook of Mexico's fixed telecom market and the cable strategy we are pursuing to achieve our goals. Under this plan, we are prioritizing free cash flow over an ongoing aggressive cable footprint expansion, particularly considering that we have the largest network in Mexico, excluding the incumbent ending September with 19.5 million homes passed, or a coverage of over 55% of total homes in the country.

Therefore, Valim’s mandate as recently appointed CEO of our cable operations, has been to improve quality and lifecycle of our subscriber base, enhance profitability, optimize CapEx deployment, expand free cash flow generation, and as such increased returns on invested capital.

Having said that, let me turn the call over to Valim, as he will elaborate on our long-range plan.

Francisco Valim

Thank you, Alfonso. Good morning, everyone. Mexico's fixed income market has already reached a more mature stage with fixed internet penetration at over 70% of homes. At the same time, customer needs have been shifting towards higher internet speeds, improved service equality, and digitized offerings. These changes in customer needs have led to a strategy of high-speed fiber networks deployment widely adopted by all market participants, which typically occurs during expensive economic cycles.