Investor Presentation Fourth Quarter 2019
Televisa at a Glance 2019 Share of Revenue and OSI* CABLE CONTENT A leading cable Advertising operator Four broadcast channels in Mexico City and in Mexico affiliated stations throughout the country Video 4.3 millon RGUs Network Subscription 25 pay-tv networks Broadband 4.7 millon RGUs 39 % Licensing & Syndication 43 % 33 % Univision royalties, other 31 % OSI* Voice licensing fees, and exports OSI* Cable 3.6 millon RGUs to over 70 countries Content 22 % OSI* SKY 20 % A leading DTH system in Mexico and broadband provider, also operating in Central America and the Dominican Republic Sky Video: 7.4 millon RGUs Broadband: 386 thousand RGUs *Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense, net. For a reconciliation of total operating segment income with consolidated operating RGUs: Revenue Generating Units. DTH: Direct to Home income, see Note 25 to our year-end consolidated financial statements. 2
2019 Operating Highlights The transformation of Televisa continued in 2019 with many milestones • Double digit growth in Revenue and Operating Segment Income CABLE • Reached 12.7 million Revenue Generating Units (RGUs) • Solid operating metrics with low churn • Positioned IZZI as the premier aggregator of OTT offers • Resumed growth in video RGUs with positive net adds each of SKY the last three quarters • Continued building scale in the broadband business • CONTENT Launched new, innovative formats with great success • Reassigned resources and increased production values • Achieved strong viewership levels • Launched TUDN , a sports JV with Univision 3
2019 Consolidated Financial Results Steady Revenue and OSI 1 growth, declining capital intensity OSI 1 Revenue Ps. in billions Ps. in billions 101.3 101.5 96.3 94.3 88.1 40.3 41.0 80.1 38.9 37.5 35.7 32.3 non-recurring licensing of certain rights of the World Cup 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Consolidated revenue growth of 3.0% and OSI 1 growth of 5.4% * • • Ongoing financial discipline with cost and expenses declining by Ps.579 million Strong balance sheet : Net Debt to OSI 1 of 2.3x and average maturity of 16.9 years • 4 1 Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense. *Excludes the non-recurring licensing of certain rights of the World Cup
4Q’19 Consolidated Financial Results Fastest pace of growth in Operating Segment Income (OSI 1 ) in five quarters OSI 1 Revenue Ps. in billions Ps. in billions 28.0 27.3 26.0 26.7 25.0 24.0 10.9 10.2 10.4 11.1 9.9 9.9 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 4Q´19 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 4Q´19 Revenue and OSI 1 growth of 4.7% and 6.6%, respectively • • Stabilization of ad sales during the quarter, and US$101 million in Univision royalties • Cable added 115 thd. RGUs , a sequential improvement vs 3Q’19 • Sky added 67 thd. broadband RGUs and 17 thd. video RGUs 5 1 Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense.
Cable: 12.7 million customer relationships Broadband and voice continue to be the main drivers of growth Total RGUs RGU Mix Millions • Added 811 thd. RGUs 12.7 18% 11.8 29% • Broadband market share 10.1 9.7 reached 24.4% 9.0 33% 6.9 37% • By year-end, reached 15.3 million homes passed 49% • 34% A telecom network of 140 thd . kilometers, 32% is fiber 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Video Data Voice Video Data Voice 6
Cable: Continues to grow at a steady pace After heavy investments in infrastructure, Operating Cash Flow (OCF 2 ) keeps expanding OSI 1 OCF 2 Revenue Ps. in billions Ps. In billions Ps. in billions 5.3 41.7 17.8 3.9 36.2 15.3 3.0 31.9 33.0 13.2 14.0 28.5 11.4 20.9 7.9 -1.4 -4.3 -4.8 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 In 2019, double digit growth in Revenue and in OSI 1 of 15.1% and 16.3%, respectively • Organically, excluding Axtel acquisition in December 2018, OSI 1 expanded by 11.4% • • Operating Cash Flow (OCF 2 ) reached Ps.5.3 billion, a y-o-y growth of 76.6% 7 1 Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense. 2 Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment
Cable: 2020 Goals With our extensive infrastructure, we will continue to focus on: • Growing our share of broadband further CABLE • Resuming growth in video subscribers Strengthening position as aggregator of OTT offers • Expanding Operating Cash Flow 1 • 8 1 Operating Cash Flow is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment.
Sky: Over 7 million customers Broadband has become an attractive ad-on to many pay TV households Total Broadband RGUs RGUs Millions Thousands 386 • By year-end 2019, over 7.8 million combined 319 8.0 8.0 7.7 7.8 7.3 video and broadband 6.6 238 RGUs 165 • Added 294 thousand broadband RGUs during 92 the year 2014 2015 2016 2017 2018 2019 4Q´18 1Q´19 2Q´19 3Q´19 4Q´19 9
Sky: Transforming it into a telecom operator Pressure in margins has been necessary to build scale in broadband OSI 1 Revenue OCF 2 Ps. in billions Ps. in billions Ps. in billions 21.9 22.2 22.0 21.3 19.3 10.1 9.9 9.8 6.3 17.5 9.1 9.0 5.9 8.2 5.3 3.7 3.5 3.1 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 • Operating Cash Flow (OCF 2 ) reached Ps.5.3 billion • Capital expenditures have been strong to support foray into broadband 10 1 Operating segment income (OSI) is defined as operating income before corporate expenses, depreciation and amortization, and other expense. 2 Operating Cash Flow (OCF) is defined as Operating Segment Income minus capital expenditures in properties, plant and equipment
Sky: 2020 Goals With its more than 7 million pay-tv customers, Sky will continue to build a telecom presence: • Offering attractive bundles • Launching packages with faster speeds SKY • Targeting new markets within its footprint • Launching new broadband services 11
Content Division: An unmatched audience reach We produce the content that people choose to watch on broadcast TV Ratings % of Ratings % of Network Program Network Program Pop. Pop. (mm) (mm) CBS Televisa ¿Quien es la mascara? 8,219 6.5% Big Bang Theory 13,381 4.1% Silvia Pinal frente a ti 7,484 CBS NCIS 3.8% Televisa 5.9% 12,663 NBC Televisa Mi marido tiene más familia 7,195 5.7% This Is Us 12,502 3.8% NBC Televisa La Voz Kids 6,810 5.4% Agt Champions 12,394 3.8% NBC Televisa Amar a muerte 6,273 5.0% America's Got Talent 11,666 3.5% NBC Televisa La Rosa de Guadalupe 6,253 4.9% Chicago Fire 11,536 3.5% NBC Televisa La Usurpadora 6,225 Chicago Med 3.4% 4.9% 11,174 NBC Televisa Una Familia de Diez 3 6,085 Chicago Pd 3.4% 4.8% 11,061 Una Familia de Diez 2 6,055 NBC Manifest 3.3% Televisa 4.8% 10,913 FOX Televisa Pequeños Gigantes 5,900 4.7% Masked Singer 10,676 3.2% • Broadcast is a key form of entertainment in Mexico, above the U.S. as a % of population • In 2019, the top 10 programs in Mexico’s broadcast TV were produced and transmitted by us • These included three comedies, three game shows , three dramas, and one bio-epic • Our top production reached 60% more viewers * than the top production in the U.S. in 2019 12 Source for Mexico: National projection based on Nielsen IBOPE’s audience measurement of the 28 largest cities of Mexico. Spor ts not included in ranking. *As a percentage of total population. Source for US: Nielsen US national sample.
Content: Multiple windows to choose from Televisa is a relevant participant in every platform Four Broadcast Networks in Mexico 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 13
Recommend
More recommend
