Investor Presentation - Third Quarter 2020
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Investor Presentation Third Quarter 2020
3Q´20 Highlights
Strong operating metrics and OSI1 growth in our three core operations
• Growth of 448 thousand Revenue Generating Units (“RGUs”), reaching 13.9 million
CABLE
• Net broadband RGUs additions of 234 thousand, the 2nd fastest pace of organic growth on
record
• Strong revenue growth of 7.9%, reaching Ps.11.4 billion, and OSI1 growth of 7%
• A combined 8.1 million video and broadband RGUs, the highest number on record
• Net additions of video RGUs for the sixth consecutive quarter
SKY
• Record net broadband RGUs additions of 92 thousand, reaching close to 600 thousand
• Revenue growth of 4.9%, the fastest pace of growth in 15 quarters
• OSI1 reached Ps.2.4 billion with a strong margin of 43.5%
• Audience growth y-o-y of 30%2 in our flagship network
CONTENT
• The success of our content continues to be a strong ratings driver for Univision
• Ad Revenue was down 13%, a substantial improvement compared to 2nd quarter
• On track to realize savings of approximately Ps.2.1 billion for the full year
• Revenues were down 7.2%, while OSI1 margin reached a four-year record high of 41.0%
OTHER
• Other Businesses segment significantly impacted by social distancing measures
2 1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.
2 Source: Nielsen. P4+, Monday to Friday, 16:30 to 23:00Televisa 3Q Results
• 3Q 2020 Revenue (in Ps. Millions)
3%
Revenue Y/Y
Cable 11,408 7.9%
Sky 5,598 4.9%
31% Content 8,033 (7.2)%
44%
Other Businesses 783 (67.9)%
22% Cons. Net Sales 23,943 (7.1)%
• 3Q 2020 OSI1 (in Ps. Millions)
OSI1 Y/Y
Cable 4,797 7.0%
31% Sky 2,437 1.5%
46%
Content 3,295 5.9%
Other Businesses 3 (99.5)%
23%
Total OSI 10,531 (1.7)%
3
1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.Content: Sequential improvement
Comprehensive cost cutting plan helped expand OSI margins by 500 bps
Revenue OSI1 OCF2
Ps. in billions Ps. in billions Ps. in billions
8.7
8.0
3.1 3.3
3.0
2.7
3Q´19 3Q´20 3Q´19 3Q´20 3Q´19 3Q´20
• Content Revenues were down 7.2%, which is a sequential improvement
• Aggressive cost and expenses reduction program resulted in savings of $808 million pesos
• Strong Operating Segment Income growth of 5.9% and a margin of 41.0%
4 1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.
2Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expendituresContent: Multiple revenue Streams
Ad sales impacted the most due to Covid, but sequentially better
Advertising Network Licensing and
Ps. in billions
Subscription Syndication
Ps. in billions Ps. in billions
4.8
4.2
2.6 2.5
1.3
1.2
3Q´19 3Q´20 3Q´19 3Q´20 3Q´19 3Q´20
• Advertising sales were down 13.0%, resulting from a sequential recovery across most
categories among our private sector clients when compared to second quarter 2020
• Network Subscription sales grew 7.5% due to a price increase and Mexican peso depreciation
• Licensing and Syndication sales were down 3.7%, due to lower Univision royalties and exports
5Content: Strong Univision Ratings
Ratings of Univision portfolio increased 8%
8%
1%
-9% -9%
-18% -18% -18%
-19%
-20%
-22%
Univision Fox Discovery AE Networks Disney Warner Bros NBC Crown AMC Viacom
Universal Media Networks
• Univision Networks closed the 2019/2020 season as the fastest growing family of TV networks with an 8%
year over year growth in primetime ratings
• UniMás was the fastest growing major broadcast network during the 2019/2020 season with double-digit
year-over-year audience growth in primetime among all key demographics
6 Source Nielsen: Nielsen, NPM (09/23/2019-09/20/2020) vs. (09/24/2018-09/22/2019) Mon-Sat 8pm-11pm/Sun 7pm-11pm, Live+7.
Excludes Super Bowl Sunday (02/02/2020 and 02/03/2019). Based on the sum of impressions for the top 10 media companies in the 2019/2020 season among Adults 18-49.Content: 2020 Goals
Televisa will continue to focus on strengthening its content business
• Increasing the volume and quality of our original content
CONTENT
• Ongoing innovation in our formats and storylines
• Striving for strong ratings across all genres
• Expanding the ways in which we monetize our content
7Content: Multiple windows to choose from
Televisa is a relevant participant in every platform
Four Broadcast
Networks
Exports
(70+ countries)
25 Pay TV
Networks
OTT &
Digital
• We are in the unique position to choose how and where we monetize our content
• Broadcast Television continues to be the most effective way to do so
• We are expanding our expertise in Digital and OTT and gradually building scale
8Cable: 13.9 million customer relationships
Second highest pace of organic growth in net additions, on record
Total RGUs RGU Mix • Added 447.6 thousand RGUs
Millions o Broadband: 234.0
o Voice: 189.2
o Video: -1.6
13.9
13.4 o Mobile 26.0
12.7 12.9
12.5
• Year-to-date, Cable has added
31%
38% 1.3 million RGUs, a year-over-
year growth of 10.6%
30%
• 15.7 million homes passed
with a low penetration of
broadband services, at close
to 34%
3Q´19 4Q´19 1Q´20 2Q´20 3Q´20 Broadband Voice Video
Mobile RGUs reached 40.1 thousand
9Cable: Demand has increased
Consumption of data continues growing
Monthly Data Usage Average daily usage per
(For Televisa Cable Customers)
Gigabytes
customer
Gigabytes (downlink + uplink)
278 9.0 9.1
272
7.8
7.2 7.1
236 6.6 6.6
219 216 5.9 5.8
5.2 5.4
198 190 3%
181 178
165
156
Source: Internal company data Source: Internal company data.
• Total data usage averaged close to 278 gigabit per month per customer
• Increase in download traffic of 26.9% y-o-y
10Cable: Continues to grow at a steady pace
Healthy growth in revenues and OSI1
Revenue OSI1 OCF2
Ps. in billions Ps. in billions Ps. in billions
11.4
10.6
4.8
4.5
1.1 1.1
3Q´19 3Q´20 3Q´19 3Q´20 3Q´19 3Q´20
• Revenue and OSI1 grew 7.9% and 7.0%, respectively
• Our MSO and Enterprise operations sales grew 6.5% and 20.6%, respectively.
11 1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.
2Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expendituresCable: 2020 Goals
With our extensive infrastructure, we will continue to focus on:
• Growing our share of broadband further
CABLE
• Strengthening position as aggregator of OTT offers
• Growing video subscribers
• Expanding Operating Cash Flow1
12 1Operating Cash Flow is defined as Operating Segment Income minus capital expendituresSky: Over 8 million customers
Sky reached close to 600 thousand broadband RGUs
Total Broadband • Added 92 thousand
broadband RGUs during this
RGUs RGUs quarter
Millions Thousands
Video Broadband
594
• 6th consecutive quarter of
7.7 8.1 growing video RGUs, after
502
0.3 0.6
430
adding 15 thousand
386
319 • Reached over 8 million
combined video and
7.4 7.5 broadband RGUs, the highest
number of RGUs on record
3Q´19 4Q´19 1Q´20 2Q´20 3Q´20
3Q´19 3Q´20
13Sky: Transforming it into a telecom operator
The fastest pace of sales growth in 15 quarters
Revenue OSI1 OCF2
Ps. in billions Ps. in billions Ps. in billions
5.3 5.6
2.4 2.4
1.4
1.0
3Q´19 3Q´19 3Q´19 3Q´20 3Q´19 3Q´20
• Revenues were up 4.9% year-over-year
• OSI1 grew 1.5%. Margin remained strong, reaching 43.5%
14 1Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.
2Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expendituresSky: 2020 Goals
With more than 8 million RGUs, continue building a telecom presence
• Offering attractive bundles
• Launching packages with faster speeds
SKY
• Targeting new markets within its footprint
• Launching new broadband services
15Liquidity and Debt
A strong position of liquidity
Figures in Ps billion, as of September 30, 2020
Total Liquidity Total Gross Debt
RCF * 14.8 RCF (1) 14.8
Cash 44.9 Bank loans 19.7
Other (2) 7.2 Leases 9.8
Notes 113.9
Financial costs (1.4)
Total 52.1 Total 156.8
42% (including RCF), or $1.0b held in US$ 66%, or $4.7b held in US$
• Manageable Net Debt-to-OSI (LTM) of 2.7x
• All 2020 and all of 2021 US denominated interest expense and CapEx are hedged
• Total Net Debt of Ps 104.7 billion, or US$ 4.7 billion
• Investment Grade Rated by S&P (BBB+), Fitch (BBB+) and Moody’s (Baa1)
* The Revolving Credit Facility was prepaid on October 6, 2020, resulting in a total liquidity of 37
billion pesos (59% in USD)
16 (1) Invested in publicly traded instruments and in an open ended fund with shares that may be redeemed on a quarterly basis.Debt Maturity
A comfortable debt maturity profile
• Weighed average maturity of 19.8 years (US debt) and 8.8 years (Peso debt)
1200
1000
1000
900
800 750
U.S. millions
600 600
600
452
400
300 300 294
248
204 204
200 158
3 28
0
2029
2041
2020
2021
2022
2023
2024
2025
2026
2027
2028
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2042
2043
2044
2045
2046
2047
2048
2049
*Graph excludes RCF which was paid on October 6th Fx. 22.11
USD MXN
17Capital Expenditures
Driven by growth in our MSO, Enterprise, and Sky businesses
CapEx • Given the acceleration of
1,800
1,605 U.S. millions growth in our Cable
1,600 1,491
1,400
167
160
Enterprise segment, and
1,200 362 the higher-than-expected
347
1,000
970 992 950 pace of growth in RGUs in
885 95 108 50
800 114
210 209 250
our MSO business, we
600
211 estimate that our Cable
1,077 984
400 CapEx for 2020 will now
666 675 650
560
200 reach $650 million dollars.
0
2015 2016 2017 2018 2019 2020 New
Guidance
• For Sky, as a result of the
Cable Sky Content
fast pace of adoption of
our broadband offer, we
estimated our 2020 CapEx
will reach $250 million
dollars.
18Sustainability: A key component in our strategy
Our many sustainability efforts continue to be recognized around the world
Dow Jones Sustainability Emerging Markets Index 1
Dow Jones Sustainability MILA Pacific Alliance Index
Bloomberg Gender Equality Index (GEI) 2
S&P/BMV Total México ESG Index 3
Socially Responsible Company Award 4
United Nations (UN) Global Compact 5
Environmental Quality Certificate 6
Recertified with Norm ISO 14001:2015 7
Milestones: Televisa included in three FTSE4Good Index Series: FTSE4Good Emerging Markets,
FTSE4Good Emerging Latin America and FTSE4Good BIVA
Televisa identified by the Global Child Forum as an “Improver” in “The State of Children’s
Rights and Business 2019” 8
19 1. One of only three Mexican companies. 2. One of only five Mexican companies. 3. The S&P Dow Jones Indices and the Mexican Stock Exchange sustainability index. 4. Recognized for a third
consecutive year for our social responsibility programs. 5. The world’s largest corporate sustainability initiative. 6. Issued by federal environmental entity (Procuraduría Federal de Protección
al Ambiente) for certain of our facilities. 7. Issued by a third-party verification unit. 8. Among 700 companies.COVID-19
The COVID-19 pandemic has affected our business, financial position and results of operations for the quarter ended September 30,
2020, and it is currently difficult to predict the degree of the impact on the remainder of 2020. We cannot guarantee that conditions in
the bank lending, capital and other financial markets will not continue to deteriorate as a result of the pandemic, or that our access to
capital and other sources of funding will not become constrained, which could adversely affect the availability and terms of future
borrowings, renewals or refinancings. In addition, the deterioration of global economic conditions as a result of the pandemic may
ultimately reduce the demand of our products across our segments as our clients and customers reduce or defer their spending.
The Mexican Government is still implementing the plan to reactivate economic activities in accordance with color-based phases
determined on a weekly basis in every state of the country. To this date, most of the country’s states are on phase orange or yellow,
meaning most of non-essential economic activities are open with some limitations, mainly on capacity and hours of operation.
However, a significant part of the population is still implementing social distancing and shelter-in-place policies. As a result, during the
quarter ended September 30, 2020, this has affected, and is still affecting the ability of our employees, suppliers and customers to
conduct their functions and businesses in their typical manner.
As of this date and given that they are considered essential economic activities, we have continued operating our media and
telecommunications businesses uninterrupted to continue benefiting the country with connectivity, entertainment and information, and
during the third quarter ended September 30, 2020, we continued with the production of new content following the requirements and
health guidelines imposed by the Mexican Government. As described above, our Content business faced a reduction in the demand
for advertising during the quarter ended September 30, 2020 and may continue to be affected by the reduction in the level of economic
activity in the jurisdictions in which our customers are located. We are partially dependent on the demand for advertising from
consumer-focused companies, and the COVID-19 pandemic has caused, and could further cause, advertisers to reduce or postpone
their advertisement spending on our platforms.
In our Other Businesses segment, sporting and other entertainment events for which we have broadcast rights, or which we organize,
promote and/or are located in venues we own, have started to operate again with some limitations, and to date 12 out of our 18 casinos
have resumed operations with reduced capacity and hours of operation. When local authorities start to approve the re-opening of the
venues that are still not operating, rules will be enacted which may include capacity and operating hours restrictions; these may affect
the results of our Other Businesses segment in the following months.
Notwithstanding the foregoing, if the country’s states start to transition from yellow to orange, or from orange to red, in accordance with
the color-based phases methodology, the authorities may impose restrictions on non-essential activities, including but not limited to
temporary shutdowns or additional guidelines which could be expensive or burdensome to implement, which may affect our operations.
The magnitude of the impact on our business will depend on the duration and extent of the COVID-19 pandemic and the impact of
federal, state, local and foreign governmental actions, including continued or future social distancing, and consumer behavior in
response to the COVID-19 pandemic and such governmental actions. Due to the evolving and uncertain nature of this situation, we are
not able to estimate the full extent of the impact of the COVID-19 pandemic, but it may continue affecting our business, financial
position and results of operations over the near, medium or long-term.
20Televisa: A strong foundation
Focused on building shareholder value
Our priorities:
Innovation across all our
Fully integrated media and telecommunications operations
Unique market presence in our core businesses
Constant transformation
Diversified revenue base of our business model
Mexico’s second largest telecom network
Long term strategic
Largest producer of Spanish-language content positioning
Long standing commitment to sustainability
Focus on Cash Flow
Investment grade generation
21Disclaimer
This presentation contains forward-looking statements regarding the Company’s
results and prospects. Actual results could differ materially from these statements.
The forward-looking statements in this presentation should be read in conjunction
with the factors described in “Item 3. Key Information – Forward Looking
Statements” in the Company’s Annual Report on Form 20 - F, which, among
others, could cause actual results to differ materially from those contained in
forward-looking statements made in this presentation and in oral statements
made by authorized officers of the Company. Statements contained in this
presentation relating to the COVID-19 outbreak, the impact of which on our
business performance and financial results remains inherently uncertain, are
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of their dates. The
Company undertakes no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.
Investor Relations
www.televisair.com
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