Investor Presentation Third Quarter 2017
Forward looking statements This presentation contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the current intent, belief or expectations of our officers or management with respect to future developments, including such important matters as (1) our asset growth and financing plans, (2) trends affecting our financial condition or results of operations, (3) the impact of competition and regulations, (4) projected capital expenditures and (5) liquidity. Forward- looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those described in forward-looking statements included in this presentation as a result of various factors. These factors, many of which are beyond our control, include the actions of competitors, future global economic conditions, market conditions, changes in interest rates and foreign exchange rates, changes in legislation or regulations applicable to our business, operating and financial risks, the outcome of legal proceedings and the factors discussed under “Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2016. The results in this presentation appear as they were originally reported in our financial statements. 2
Overview 3Q’17 Results Underlying Drivers 3
Overview 4
Our Core Businesses Fully Integrated Media and Distribution Cable Content Sky ** Advertising 4.1 million RGUs * Video : Video : 8 million subs Data : 3.6 million RGUs Four broadcast channels in Mexico City Voice : 2.1 million RGUs A leading DTH system in and affiliated stations Mexico, operating also in A leading cable operator in Central America and the Network Subscription Mexico Dominican Republic 26 pay-tv networks and 52 feeds in Mexico and globally ** In partnership with AT&T which owns * Revenue generating units 41.3% of Sky. Licensing & Syndication Univision *** Univision royalties, other licensing fees, and exports to +/- 80 countries Ownership of approximately 36% of *** Televisa has equity and warrants equity and warrants on a which upon their exercise, would fully diluted, as-converted represent approximately 36% on a fully diluted, as-converted basis of the basis equity capital in Univision Holdings Inc. 5
Revenue breakdown Consolidated net revenue US$4.98b (1) LTM 3Q’17 LTM 3Q’17 YoY YoY US$mm (2) growth (3) growth (3) 9% 36% Content 1,831 -7.5% -1.9% 22% Advertising 1,143 -8.4% -4.5% 36% 4% Network Subsc. 207 -17.4% -8.8% 22% 10% Licensing and Synd. 482 -0.1% 8.5% 33% Cable 1,710 2.1% 5.2% 22% Sky 1,155 -1.1% 3.2% 33% 9% Other 466 -11.4% 7.0% (1) As of LTM 3Q’17. Consolidated net sales include elimination of intersegment operations amounting to US$179.7 million. (2) Equivalent in US$ at the FX rate of 19.1577Ps/US$. The average of rates published by Mexico’s Central Bank for LTM ending September 30, 2017. (3) 3Q’17 year over year and LTM growth in peso terms. 6
Operating segment income (1) Net OSI (2) of US$1.9b LTM Margin Share of 3Q’17 LTM YoY LTM 2% OSI US$mm (3) growth (4) 3Q’17 36% Content 714 39.0% -5.9% 36% 36% 26% Sky 533 46.1% 5.3% 36% Cable 716 6.3% 41.8% 2% Other 33 -22.3% 7.1% 26% (1) Operating Segment Income – OSI – is defined as operating income before depreciation and amortization, corporate expenses, and other expense net. (2) Net OSI is after corporate expenses. As of LTM ending September 30, 2017 Net OSI includes Corporate Expenses of US$118.9 million. (3) Equivalent in US$ at the FX rate of 19.1577Ps/US$. The average of rates published by Mexico’s Central Bank for LTM ending September 30, 2017. (4) 3Q’17 year over year and LTM growth in peso terms. 7
Conservative balance sheet Capacity to continue supporting strategic initiatives Net Debt / EBITDA Ratio 2.4 2.1 June 29, 2017 Standard & Poors revised its 1.9 2.0 liquidity assessment of Televisa from strong 1.6 1.5 1.6 to exceptional and affirmed Televisa’s rating 1.4 1.3 of ‘BBB+’ on a global scale and ‘ mxAAA ’ on a 1.1 1.2 national scale. 0.8 0.6 0.4 0.1 0.0 -0.1 -0.2 -0.4 Financial Assets Debt composition 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 3Q17 Oth., 1% Total debt* (3Q'17): Ps$126.4 billion Ps$, Ps$, 31% 35% Financial Assets**: Ps$52.4 billion Net debt: Ps$74.0 billion US$, US$, Average maturity: 15.22 years 65% 68% Moody’s Baa1 S&P BBB+ Fitch BBB+ *Includes capital lease obligations and other notes payable. ** Financial Assets: Cash, temporary investments and other long-term available for sale and held-to-maturity investments . 8 Source: Grupo Televisa's public filings.
3Q’17 Results 9
3Q'17 Results: Highlights • Consolidated Net Sales and Operating Segment Income reached Ps.22.8 billion and Ps.9.3 billion, respectively • Prime time 1 ratings of Channel 2 continued their positive trend, achieving 26% higher ratings than those reached during the third quarter of last year • Cable segment continued to show positive results, adding close to 200 thousand RGUs during the quarter • Sky reached an Operating Segment Income margin of 48.9%, the highest in nine years (1) Monday to Friday 10
3Q’17 Results: Content Financial Results Billions of Ps. Revenues OSI OSI margin • Content revenues decreased 7.5% during 3Q’17 $8.68 $8.02 • Operating segment income margin reached 38.7% 42.0% • Decline in revenues is explained mainly by 38.7% lower advertising sales $3.64 $3.10 3Q16 3Q17 Content Revenue Mix Licensing and Advertising Syndication 27% Network 62% 11% Subscription Revenues 11
3Q'17 Results: Content Financial Results – Advertising Billions of Ps. $5.40 • Advertising revenues decreased by 8.4% in 3Q’17 $4.94 • Ratings increase combined with advertising sales mechanism is allowing our clients to seek the lowest cost-per-rating point. • This issue will be addressed with the new sales mechanism to be implemented for 2018. 3Q16 3Q17 Financial Results – Network Subscription Revenues Billions of Ps. • Revenues decreased 17.4% year-over-year in $1.13 3Q’17, mainly explained by a competitor that is no $0.93 longer carrying our pay TV networks. 3Q16 3Q17 12
3Q'17 Results: Content Financial Results – Licensing and Syndication Billions of Ps. • Licensing and Syndication revenues were in line $2.15 $2.15 with last year, reaching Ps.2,151.4 million 3Q16 3Q17 Univision Royalties US$ millions • Third-quarter royalties from Univision were in line with last year, reaching U.S.$80.6 million $80.6 $80.2 3Q16 3Q17 13
3Q'17 Results: Cable Financial Results Revenues OSI OSI margin Billions of Ps. • During 3Q’17, sales increased by 2.1%. OSI increased by 2.3% and the margin reached 42.3% $8.16 $8.32 • Results were partially offset by our network operations business, where we have seen a reduction in the number of new government contracts up for tender as 42.3% 42.2% well as a reduction in the rates we charge due to intense competition. $3.44 $3.52 3Q16 3Q17 Cable RGUs (millions) Video RGUs Data RGUs Voice RGUs • Revenue and OSI growth driven by RGU net additions 9.9 9.7 in video (31,000), Data (145,000) and voice (23,000), 2.1 2.1 during the quarter. 3.4 3.7 • This is the fastest pace of growth of the last five quarters. 4.2 4.1 3Q16 3Q17 14
3Q'17 Results: Sky Financial Results Revenues OSI OSI margin Billions of Ps. • Revenue decreased by 1.1% and OSI increased by 5.0% $5.5 $5.4 48.9% • OSI margin was 48.9% during the third quarter, the increase in the margin by 290 basis points from same 46.0% quarter last year is mainly the result of management’s strong discipline in costs and expenses. $2.5 $2.7 3Q16 3Q17 Sky Subscribers (millions) Subscribers • This quarter Sky added 1,801 subscribers 8.0 8.0 8.0 8.0 • Sky continues to be impacted by the extraordinary growth in net additions achieved in 2016 due to the analog shut down. 7.9 • Sky ended the quarter with 184,582 subscribers in Central 3Q16 4Q16 1Q17 2Q17 3Q17 America and the Dominican Republic 15
Underlying Drivers 16
Underlying Drivers Drivers that are shaping our business, long term I. Advertising Revenue II. Network Subscription Revenue III. Licensing and Syndication Revenue IV. Sky Pay TV Revenue V. Cable Video RGUs VI. Cable Voice RGUs VII. Cable Data RGUs VIII. Position as a Leading Cable Operator IX. Diversification 17
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