Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We are positioned to deliver a record political year from the ad sales perspective and a profitable streaming business in the second half of the year faster than any other major streaming service in history, which should then return our company back to overall EBITDA growth and allow us to continue to focus on strengthening our balance sheet through organic deleveraging and by extending and smoothing our maturities |
| We are very proud of what we're doing there, especially we have a tremendous advantage being vertically integrated having launched the platform, but also owning the largest library in Spanish content in the world, owning the IP to produce more content specific for our markets, of course, owning the factory in Mexico, which is the largest and most prolific factory of content in Spanish in the world where we produce large quantities of content with a very high quality at very, very attractive costs |
| Today, I'm pleased to report that as of yesterday, we have added 77,000 Sky Más customers, and the momentum in sales remains robust |
| Still, the enterprise operations reorganization and implementation will position us well to stabilize and grow revenue and operating segment income from 2024 onwards |
| Moreover, our residential operations margin of 41.6% would have expanded by 370 basis points quarter-on-quarter |
| So we're very happy about this new and extended partnership |
| So we are managing the acquisition of the subscribers better and we are managing and improving the retention of our existing clients in a very significant way |
| However the headcount reduction implemented in the third quarter allowed us to expand our residential operations margin by 320 basis points sequentially in the fourth quarter |
| We are adjusting prices so that we can have a better ARPU |
| At TelevisaUnivision, we've been showing that our strategy, our assets and our execution against a differentiated market opportunity can yield superior operation and financial results on a consistent basis |
| In the U.S., we continue to outperform growth of the broader advertising market in 2023 by around 850 basis points, even against the backdrop of ad market and macroeconomic softness |
| In Mexico, our ad business had another extraordinary year driven by the combination of a strong and growing economy and an excellent execution by our sales team |
| This is the first time following a World Cup year that we have been able to deliver absolute year-on-year growth above and beyond the huge World Cup comp |
| So with the speed that we offer, with the content that we offer, with the service that we provide, we have been able to have better clients since we have changed the way we promote ourselves in terms of new subs |
| So we're very happy about having been able to close the deal and the new extended partnership with Charter |
| This will allow us to gradually deliver strong net adds over the coming quarters |
| I'll ask Valim to answer, but I mean your questions are very good about the pace of margin improvement and ARPU |
| This was significantly better than the 200 basis points expansion that we initially expected despite a negative impact on revenue and EBITDA from Hurricane Otis in Acapulco |
| And the headcount reduction implemented in the third quarter allowed us to expand our residential operations margin by 320 basis points sequentially in the fourth quarter |
| A testament to the power of our library, our content engine, promotional power and disciplined execution |
| We relaunched the ViX Premium offer in our broadband packages with Internet speeds of 50 megabits per second or more, contributing to increased loyalty from our subscriber base and they continue to deliver competitive gross adds |
| Wade has done a great job in leading TelevisaUnivision basically and leading into the future with the launching of ViX, which as I mentioned, has become a meaningful business with a revenue run rate of around $700 million in the first full year of operations |
| So I feel proud about accomplishing that |
| As we changed that in September and positioned ourselves in more value for money and better services and more services to our clients |
| Initial results have been encouraging and we expect the positive sequential trend to continue throughout 2024 |
| This obviously improves the value proposition for customers, but only to the extent that the content in the streaming service is not redundant to the content in the linear package |
| We have successfully concluded upfront negotiations with our customers in Mexico, with the upfront plan reaching the highest level in absolute terms in our history |
| This is really, really important and we feel very happy and proud about it |
| Under this new strategy, we intend to improve the quality and lifecycle of our subscriber base, enhance profitability, optimize CapEx deployment, expand free cash flow generation and as such increase returns on invested capital |
| This innovative portfolio not only underscores our commitment to innovation and our efforts to enhance our competitiveness, but also reflect our dedication to deliver the best to our customers |
| Statement |
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| Last year was marked by a more challenging global macro backdrop than initially expected |
| Compared to last year, fourth quarter revenues declined 15.3% to MXN 4.2 billion and EBITDA decreased by less than 1% |
| On a reported basis, both revenue and adjusted EBITDA for TelevisaUnivision declined by 7% year-on-year due to tough comps on non-recurring revenue during the fourth quarter of 2022 |
| For the full-year, revenues declined 13.5% and EBITDA 10.7% compared to 2022 and EBITDA margin reached 32.4% |
| To sum up, revenue from our cable segment of MXN 12.2 billion fell by 1.8% year-on-year, while operating income of MXN 4.7 billion declined by 7.1% |
| Turning to our fourth quarter results, consolidated revenue reached Ps.18.4 billion representing a year-on-year decrease of 3.8%, while operating segment income reached Ps.6.3 billion equivalent to a year-on-year contraction of 6% also caused primarily by the factors mentioned before |
| While operating segment income reached Ps.26.5 billion equivalent to a year-on-year decrease of 5.4%, mainly driven by lower revenue at Sky and inflationary pressures in labor and content-related costs |
| So there was the revenue has been impacted negatively because of that |
| Full-year adjusted EBITDA of $1.6 billion declined by 4% year-on-year |
| In 2023, consolidated revenue reached Ps.73.8 billion representing a year-on-year decline of 2.3% |
| Our residential operations margin of 41.1% contracted by 290 basis points year-on-year, mainly driven by inflationary pressures in labor and content related costs |
| During the quarter, revenue fell by 16.1%, while our enterprise operations margin of 17.8% contracted 140 basis points year-on-year |
| Our enterprise operations accounting for roughly 13% and 6% of our cable segment revenue and operating segment income respectively continue to face challenges |
| Our net adds for the fourth quarter were modest despite having decent gross adds as we need to keep working on further churn reduction to achieve our goals |
| During the quarter, revenue from our residential operations decreased by 0.3% year-on-year, while operating segment income fell by 6.7% |
| Excluding the negative impact on revenue and EBITDA from Hurricane Otis in Acapulco, revenue from our cable segment would have declined by 1.1% year-on-year, while operating segment income would have been 5.3% lower |
| What we have seen is obviously there's a slight decrease in gross adds because we are less focused on price and more focused on volume of services and content to our subscribers |
| Now in terms of trading, we experienced a decrease of 161,000 revenue generating units during the quarter, mostly coming from prepaid |
| This marks a 23% decline compared to the previous year and 39% decrease compared to 2021 |
| And obviously, there's a little decrease in terms of gross adds |
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