Key Highlights

  • TV shares were trading up 6.44% at $2.15 after touching a 52-week low Monday.
  • Third-quarter EPS was $0.09 against a $0.03 consensus.
  • The $2 billion AT&T Mexico wireless purchase is expected to close in Q1 2027.

Grupo Televisa (NYSE:TV) was trading up 6.44% at $2.15 in today's regular session, a gain of $0.13 from the prior close of $2.02. Volume of about 3.97 million shares compares with an average near 1.17 million, and the move follows a fresh 52-week low near $2.05 on Monday. Two items are in focus: the third-quarter report and the planned $2 billion purchase of AT&T's (NYSE:T) Mexican wireless business.

Televisa is a Mexico City-based telecommunications operator. Since the 2022 combination of its content Business into TelevisaUnivision, it runs two main segments: Cable, sold as izzi, and Sky, a direct-to-home satellite and broadband provider in Mexico, the Dominican Republic and Central America. It is the second-largest fixed-line and broadband player in Mexico behind América Móvil (NYSE:AMX) and the largest Shareholder of TelevisaUnivision.

The AT&T Mexico Purchase Adds Wireless Scale

Televisa agreed to buy AT&T's Mexican wireless business for $2 billion through a 50/50 Partnership with Fintech Holdings. Each partner puts in $400 million of equity, and a five-year non-recourse loan covers the remaining $1.2 billion. The Investment is accounted for under the Equity method, with no additional equity contributions expected, and closing is expected in the first quarter of 2027 pending regulatory approvals.

The combined business would serve more than 24 million wireless, 5.7 million broadband and 6.3 million video subscribers, with roughly $8 billion of annual Revenue and about 23% of the Mexican telecom market. Net Debt to EBITDA would move to 1.9x from 1.6x.

Third-Quarter Earnings and Subscriber Detail

Revenue was $773 million against an estimate of $763.5 million, and earnings were $0.09 per share against $0.03. In Cable and Sky, revenue declined 3.8% while operating segment income rose 5.6% as operating expenses fell 9.7%. The operating segment Margin was 42.6%, up 380 basis points and the best in three years, though management does not expect further gains because Sky dilutes the figure.

Cable added about 9,000 broadband subscribers with churn under 2% for a sixth straight quarter, lost 48,000 video subscribers and added 68,000 mobile subscribers. Enterprise revenue grew 6.8%, residential revenue was flat, and Sky revenue fell 24.5% with 250,000 revenue generating units lost. TelevisaUnivision revenue rose 9% to $1.4 billion, with Mexico up 51% on the World Cup and the U.S. down 14%, and adjusted EBITDA was flat at $461 million.

Capital Spending, Balance Sheet and Share Data

Cable and Sky Capital spending was 21.3% of sales, and management expects full-year spending in the low 20s percent of sales with a catch-up in the fourth quarter on Import timing. Net debt to EBITDA was 5.5x and cash was $753 million. Trailing earnings are negative $0.81 per share and the 52-week range is $2.01 to $3.49. The shares trade below their 50-day and 200-day averages, and the analyst consensus is Reduce.

Communication services rose nearly 1% in afternoon trading while the Nasdaq Composite gained 1.1%.

Regulatory Approvals and Fourth-Quarter U.S. Advertising Are the Next Markers

Televisa is trading higher on an earnings beat and a rebound from a 52-week low, with the AT&T Mexico deal set to add wireless scale. The next items to follow are regulatory approvals ahead of the first-quarter 2027 closing, U.S. advertising in the fourth quarter, where management sees opportunity in competitive political races, and the fourth-quarter capital spending catch-up.