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Grupo Televisa, S.A.B. (TV)
NYSE:TV
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Grupo Televisa, S.A.B.
(NYSE:TV)
48Neutral
Positive Factors
Currency Impact
A weaker peso by itself would benefit margins given the mismatch between U.S. advertising and distribution revenues vs. peso programming costs.
Revenue Exposure
Peso revenue exposure from a U.S. investor perspective is alleviated by having a significant portion of TelevisaUnivision revenues, and advertising, attributable to the U.S. market rather than Mexico.
Negative Factors
Tariffs and Stock Undervaluation
The new 25% tariff implementations are admittedly a major impediment to remedying Televisa’s chronic stock undervaluation.
Grupo Televisa, S.A.B. (TV) vs. S&P 500 (SPY)
Market Cap
$887.84M
Dividend Yield4.75%
Average Volume (3M)2.01M
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-9.19%
EPS Growth48.76%
CountryUS
Employees32,932
SectorCommunication Services
Sector Strength82
IndustryTelecommunications
Share Statistics
EPS (TTM)-0.70
Shares Outstanding477,500,000
10 Day Avg. Volume2,113,636
30 Day Avg. Volume2,011,228
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside297.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Grupo Televisa, S.A.B. Business Overview & Revenue Model
Company DescriptionGrupo Televisa SAB engages in the provision of media products and services. It operates through the following segments: Content, Sky, Cable, and Other Businesses. The Content segment includes advertising, network subscription revenue and licensing and syndication. The Sky segment includes direct-to-home satellite television system. The Cable segment offers video, high-speed data and voice services to residential and commercial customers, including small- and medium-sized businesses and hotels; and provides telecommunications services, including voice, data, and managed services, to domestic and international carriers and to enterprise, corporate, and government customers. The Other Businesses segment comprises of publishing, gaming, soccer, radio, feature-film distribution, and publishing distribution activities. The company was founded in 1930 and is headquartered in Mexico City, Mexico.
How the Company Makes MoneyGrupo Televisa generates revenue through multiple streams. A significant portion of its income comes from the sale of advertising airtime on its television networks, which are among the most-watched in Mexico and other Spanish-speaking countries. Additionally, Televisa earns from the licensing and distribution of its content to other broadcasters and digital platforms globally. The company also benefits financially from its telecommunications services, including cable and satellite television subscriptions, broadband internet, and telephony services. Strategic partnerships, such as its collaboration with Univision in the United States, contribute to its revenue by expanding its reach and content distribution capabilities.
Grupo Televisa, S.A.B. Financial Statement Overview
Summary
Grupo Televisa's financial statements show challenges with declining revenues, negative net income, and cash flow difficulties. The balance sheet is stable with manageable debt, but negative ROE and profitability are concerning.Income Statement
Grupo Televisa's income statement indicates declining performance with negative net income in 2023, resulting in a net profit margin of -11.42%. Revenue has decreased consistently over the past few years, with a drop of 2.33% from 2022 to 2023. The EBIT margin has also fallen to 3.60% in 2023, suggesting challenges in operational efficiency. The gross profit margin remains relatively stable at 33.70%, indicating control over production costs.45
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.80 in 2023, indicating manageable leverage. However, the equity ratio of 45.42% suggests a balanced capital structure. Return on Equity (ROE) is negative at -7.06% in 2023 due to the net loss, which is a concern for shareholders. Despite challenges, the company maintains substantial equity and assets.50
Neutral
Cash Flow
Cash flow analysis reveals a negative free cash flow of -1.38 billion in 2023, though an improvement from prior years. The operating cash flow to net income ratio is negative due to the net loss, highlighting difficulties in translating operational activities into profit. The cash flow dynamics reflect potential liquidity challenges and a need for enhanced cash management strategies.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 68.40B | 73.77B | 75.53B | 103.52B | 97.36B | 101.49B | Gross Profit |
| 22.79B | 24.87B | 26.72B | 43.96B | 40.37B | 42.77B | EBIT |
| 4.01B | 2.66B | 4.42B | 22.18B | 17.53B | 17.21B | EBITDA |
| 17.64B | 22.99B | 18.53B | 32.97B | 27.69B | 39.52B | Net Income Common Stockholders |
| -8.65B | -8.42B | 44.71B | 6.06B | -1.25B | 4.72B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 32.21B | 32.84B | 51.14B | 25.79B | 29.06B | 27.45B | Total Assets |
| 297.84B | 262.67B | 299.11B | 292.90B | 271.25B | 290.42B | Total Debt |
| 121.97B | 95.83B | 113.61B | 135.47B | 131.85B | 9.86B | Net Debt |
| 89.90B | 63.24B | 62.48B | 109.88B | 102.79B | -17.60B | Total Liabilities |
| 193.06B | 128.00B | 154.98B | 197.11B | 183.31B | 184.92B | Stockholders Equity |
| 89.71B | 119.28B | 128.31B | 80.49B | 73.44B | 90.63B |
| Cash Flow | Free Cash Flow | ||||
| 11.07B | -1.38B | -6.65B | 4.23B | 11.79B | 6.70B | Operating Cash Flow |
| 23.46B | 15.20B | 12.47B | 29.40B | 33.16B | 27.91B | Investing Cash Flow |
| -12.26B | -15.76B | 42.70B | -19.04B | -15.35B | -17.47B | Financing Cash Flow |
| -13.16B | -17.75B | -29.77B | -13.84B | -16.20B | -14.99B |
Grupo Televisa, S.A.B. Technical Analysis
Negative
1.76
Price Trends
1.91
Negative
2.02
Negative
2.21
Negative
Market Momentum
<0.01
Positive
42.65
Neutral
43.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TV, the sentiment is Negative. The current price of 1.76 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 1.91, and below the 200-day MA of 2.21, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 43.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TV.
Grupo Televisa, S.A.B. Risk Analysis
Grupo Televisa, S.A.B. disclosed 39 risk factors in its most recent earnings report. Grupo Televisa, S.A.B. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grupo Televisa, S.A.B. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $23.03B | 11.58 | 20.09% | 0.98% | 4.29% | 177.70% | |
77 Outperform | $135.93B | 8.68 | 19.24% | 3.52% | 1.78% | 11.62% | |
74 Outperform | $176.98B | 31.79 | 5.54% | 0.97% | 3.97% | 89.53% | |
65 Neutral | $16.01B | 37.16 | 5.23% | 0.74% | -1.51% | 82.74% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
50 Neutral | $1.28B | ― | 20.03% | ― | -3.64% | 48.94% | |
48 Neutral | $887.84M | ― | -6.74% | 4.75% | -9.19% | 48.76% |
* Communication Services Sector Average
Performance Comparison
TV
Grupo Televisa, S.A.B.
1.76
-1.04
-37.14%
CMCSA
Comcast
34.70
-6.80
-16.39%
NWSA
News Corp
26.29
0.40
1.54%
DIS
Walt Disney
96.87
-14.18
-12.77%
AMC
AMC Entertainment
2.84
-1.43
-33.49%
FOXA
Fox
51.04
22.05
76.06%
Grupo Televisa, S.A.B. Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -14.98% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of achievements and challenges. Highlights include successful restructuring and integration efforts, profitable growth in the direct-to-consumer segment, and strong free cash flow generation. However, these achievements are tempered by declines in overall revenue and subscriber losses in key segments. Despite these challenges, the company has shown resilience and potential for future growth.Highlights
Successful Corporate Restructuring
Grupo Televisa implemented a corporate restructuring process at its Cable segment, improving profitability by over 300 basis points to 39% in 2024 compared to the third quarter of 2023.
Integration of Sky and Cable Segment
Sky was integrated with the Cable segment, leading to a 10% year-on-year reduction in OpEx and a 44% decline in CapEx deployment, resulting in a 3% increase in operating cash flow.
Spin-off of Non-Core Businesses
The spin-off of Ollamani was completed, streamlining operations and unlocking shareholder value with a market cap of $270 million.
Profitable Direct-to-Consumer Business
TelevisaUnivision's ViX streaming platform became a $1 billion business and turned profitable in Q3 2024, with user and subscriber growth over 20%.
Strong Free Cash Flow Generation
Grupo Televisa generated over MXN10.1 billion in free cash flow in 2024, representing a 43% yield for consolidated operations.
TelevisaUnivision Revenue Growth
TelevisaUnivision's full-year revenue increased by 3% to $5.1 billion, marking its fourth consecutive year of top-line growth.
Lowlights
Decline in Consolidated Revenue
Grupo Televisa's consolidated revenue declined by 6% year-on-year to MXN62.3 billion, mainly due to lower revenue at Sky.
Subscriber Losses in Cable and Sky
The company lost 85,900 broadband subscribers, 95,000 video subscribers in the Cable segment, and 270,000 revenue-generating units at Sky in Q4 2024.
Decrease in Operating Segment Income
Operating segment income decreased by 7.5% year-on-year to MXN23.2 billion, primarily driven by lower revenue at Sky.
Company Guidance
In the fourth quarter of 2024, Grupo Televisa reported several key metrics demonstrating significant progress in their strategic goals and financial performance. The company successfully streamlined its Cable segment, achieving an increase in profitability by over 300 basis points to 39% compared to the third quarter of 2023. Cable investments were optimized by 37% to nearly $400 million, with a CapEx to sales ratio of 15.6%, down by 740 basis points from 2023. Operating cash flow for the Cable segment reached over MXN11 billion, growing by almost 38% year-on-year and accounting for more than 23% of sales. The integration of Sky with the Cable segment resulted in a 10% reduction in OpEx, while Sky's operating cash flow increased by 3% year-on-year, accounting for almost 21% of sales. Grupo Televisa's consolidated operating cash flow grew by over 28% year-on-year to MXN14.3 billion, representing nearly 23% of sales, with a consolidated operating cash flow margin increase of 600 basis points. The spin-off of non-core businesses resulted in a newly listed company with a market cap of approximately $270 million. Additionally, TelevisaUnivision's DTC business, ViX, achieved profitability and generated $1 billion in revenue, with a 20% increase in users and subscribers. The company also executed a significant optimization program, reducing its workforce by 8% to save over $400 million in operating expenses for 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.