Grupo Televisa Earnings Call: Fiber, ViX and Debt Reset

Grupo Televisa, S.A.B. ((TV)) has held its Q4 earnings call. Read on for the main highlights of the call.

Grupo Televisa’s latest earnings call struck a cautiously optimistic tone, as management highlighted stronger margins, solid free cash flow and rapid fiber deployment while acknowledging persistent revenue declines and structural pressure at Sky. The message to investors was clear: near‑term top‑line pain is being traded for a leaner balance sheet and a more future‑proof network and streaming portfolio.

Margin Expansion and Operating Efficiency

Grupo Televisa posted a consolidated operating segment income margin of 39.1% for 2025, a 200‑basis‑point improvement year on year that underscored tight cost control. In Q4, margin reached 40.9%, up 410 basis points, driven by an 8.3% reduction in OpEx and synergies from integrating Izzi and Sky.

Free Cash Flow and Rapid Deleveraging

The company generated roughly MXN 5.9 billion in free cash flow in 2025 and directed much of it to reducing debt, including about MXN 2.7 billion in prepaid bank loans and $220 million of senior notes retired in March. This discipline lowered Grupo Televisa’s leverage to 2.0x EBITDA at year‑end, down from 2.5x a year earlier.

ViX DTC Scale and Profitability at TelevisaUnivision

TelevisaUnivision’s direct‑to‑consumer platform ViX delivered record revenue in 2025 and was profitable in every quarter, a rare feat in streaming. DTC accounted for nearly 25% of TelevisaUnivision’s annual revenue and around 20% of adjusted EBITDA, showing the business is scaling with industry‑leading margins.

Refinancing and Balance Sheet Repair at TelevisaUnivision

TelevisaUnivision refinanced $2.3 billion of debt in 2025, effectively clearing near‑term maturities that had weighed on sentiment. Leverage improved modestly to 5.6x EBITDA from 5.9x at the end of 2024, giving the venture more room to invest behind ViX and content while managing its capital structure.

FTTH Expansion and CapEx Discipline

Grupo Televisa invested around MXN 12.2 billion in CapEx in 2025, about 20.7% of sales, to accelerate its fiber‑to‑the‑home rollout and modernize its network. The group upgraded 4.5 million homes to FTTH, ending the year with about 9 million fiber‑ready homes, or roughly 45% of its footprint, and laid out plans for a further step‑up in 2026.

Internet Subscriber Turnaround and Broadband Momentum

After two years of losses, the internet subscriber base returned to growth in 2025, adding about 47,000 customers as the upgraded network began to pay off. In Q4 alone, broadband net adds were 25,000, with monthly churn holding below 2% for the third consecutive quarter, signaling improving customer stickiness.

Q4 Operating Income Strength

Fourth‑quarter consolidated operating segment income rose 6.1% year on year to MXN 5.9 billion, making it the strongest quarter of 2025. Management credited efficiency initiatives and Izzi–Sky integration synergies for the improvement, even as headline revenue continued to come under pressure.

Advertising and Subscription Upside in Mexico and the U.S.

Advertising in Mexico showed resilience, with Q4 ad revenue rising 15% year on year, or 6% in local currency, as the market recovered and Televisa leveraged its content portfolio. TelevisaUnivision also benefited from continued ViX subscription growth and higher U.S. linear subscription and licensing revenue, helped in part by a new agreement with Hulu.

Consolidated Revenue Contraction

Despite margin gains, Grupo Televisa’s top line declined, with 2025 consolidated revenue falling 5.5% year on year to MXN 58.9 billion. Q4 was similar, as consolidated revenue slipped 4.5% to MXN 14.5 billion, underscoring that growth remains challenging during the transition to fiber and streaming.

Sky RGU Losses and Revenue Headwinds

Sky remained a major drag, losing 304,000 revenue‑generating units in Q4, largely from prepaid churn amid intense competition and changing consumer habits. The satellite division’s Q4 revenue dropped 16.8% year on year to MXN 2.8 billion, with gross adds slowing after the introduction of an installation fee.

Q4 EBITDA Pressure at TelevisaUnivision

TelevisaUnivision’s Q4 adjusted EBITDA fell 12% year on year to $396 million, reflecting weaker political advertising and a softer revenue backdrop. Even excluding political advertising, adjusted EBITDA declined 5%, showing that cost discipline and DTC profits could not fully offset broader market and linear TV pressure.

Full‑Year Revenue Decline with EBITDA Growth

For the full year, TelevisaUnivision’s revenue slipped about 5% to $4.8 billion, mirroring the structural challenges facing traditional media. Still, adjusted EBITDA rose 2%, or 7% when stripping out political and FX effects, indicating the underlying business is becoming more efficient and less reliant on cyclical ad spikes.

Subscription and Licensing Headwinds

Consolidated subscription and licensing revenue decreased roughly 4% year on year in Q4, masking widely divergent trends under the surface. Growth at ViX and higher U.S. licensing revenue were offset by the loss of Fubo revenue, a temporary dispute with YouTube TV and weaker linear subscription income in Mexico tied to contract renewals and cancellations.

Elevated CapEx Intensity

CapEx intensity jumped in Q4 to MXN 4.6 billion, or 31.8% of sales, well above the full‑year level as FX moves and local‑currency projects concentrated spending late in the year. Management signaled that 2026 CapEx would rise further to around 25% of sales, keeping investment high as the FTTH rollout enters its next phase.

Dividend Suspension and Shareholder Impact

Televisa’s board approved suspending the regular dividend in 2026 while the company evaluates telecom opportunities and funds its heavy investment program, a setback for income‑focused investors. Management framed the move as a trade‑off to support network upgrades and strategic flexibility, betting that long‑term value creation will outweigh near‑term yield.

Structural Decline at Sky and Competitive Pressures

Executives were candid that Sky faces structural decline as broadband improves and streaming alternatives proliferate, and they expect the platform to shrink as a revenue contributor even as they cut costs. This dynamic will likely keep pressure on consolidated revenue, making success in fiber broadband and DTC streaming critical to the group’s future growth profile.

Guidance and Outlook

Looking ahead to 2026, Grupo Televisa plans to lift CapEx to about 25% of sales to upgrade another 6 million homes to FTTH, targeting 15–16 million homes passed, or around 75% of its footprint, by year‑end. TelevisaUnivision expects similar CapEx to 2025’s $119 million and, with $440 million in cash and $2.3 billion of debt refinanced, will lean on ViX’s growing contribution as it positions the platform at the center of its streaming strategy.

The earnings call painted a picture of a company in full transition, using cost cuts, fiber buildout and a profitable DTC platform to offset declining legacy revenues. For investors, the key takeaway is that Grupo Televisa is prioritizing balance sheet strength and future‑proof assets over short‑term revenue and dividends, a strategy that could unlock value if execution on FTTH and ViX continues to deliver.