Televisa's Resurgence: A Year of Unprecedented Growth and Efficiency
Grupo Televisa, one of Mexico's largest media conglomerates, has just celebrated its third anniversary since Francisco Valim took the helm of the company's telecom operations. The results are nothing short of impressive.
Under Valim's leadership, Televisa has managed to stabilize and grow its internet subscriber base for five consecutive quarters, with a churn rate that has remained below 2% for the same period. This remarkable achievement is a testament to the company's successful value strategy, which focuses on attracting and retaining high-quality customers in the cable segment.
The second quarter of 2026 marked another significant milestone for Televisa, as its residential and enterprise revenue increased by 2.6% year-on-year, reaching MXN 23.7 billion. This growth, combined with reduced operational expenses (OpEx), has resulted in a substantial increase in the company's annual consolidated operating segment income margin, expanding to 40.7% from 38.1% three years ago.
One of the key drivers behind Televisa's improved efficiency is its decision to upgrade 100% of its network to fiber-to-the-home (FTTH). With an ambitious goal to complete this upgrade by the end of 2024, the company has already passed 12 million homes with FTTH and is on track to achieve a full FTTH network in the second quarter of 2027. This move has not only improved the quality of service but also enabled Televisa to reduce its CapEx deployment approach, focusing on free cash flow generation.
Televisa's commitment to discipline and efficiency is evident in its reduced CapEx spend, which has averaged MXN 11.3 billion per year over the past three years, a decrease of 36.5% compared to the two preceding years. Excluding the network upgrade, this number would have been almost 50% lower. Furthermore, Televisa's aggregate CapEx-to-sales ratio stands at an impressive 18.5%, significantly better than the 25.8% recorded before Valim's tenure.
Additionally, Grupo Televisa has achieved significant cost savings in its corporate expenses, which have declined by around 65% to MXN 400 million per year over the last three years. This reduction was made possible through further integration of functions with the telecom operations, including back office, IT systems, and procurement.
As a result of these efforts, Televisa has generated a cumulative amount of MXN 16.4 billion in free cash flow over the past three years, equivalent to $300 million per year. Excluding the network upgrade, this number would have been even higher, at around $375 million annually. This strong performance has contributed to a decline in Grupo Televisa's leverage ratio, which now stands at 1.6 times EBITDA from 2.4 times three years ago.
In conclusion, Televisa's third anniversary is a testament to the company's commitment to innovation, efficiency, and customer satisfaction. The results of these efforts are undeniable, and it is clear that the company is on the right track towards continued growth and success.
