Televisa announced a series of positive measures that drove a 6.5 percent increase in the value of its shares at the close of the market last Friday, this after a recent conference to talk about the results of the first quarter of 2024.
In conference with analysts, the company reported several key points who anticipate a promising future for the television station, such as the upcoming merger between Sky and Cableprogrammed for the second quarter of 2024.
“We plan to integrate Sky with Cable operations as soon as possible,” said Francisco Valim, CEO of both units.
This integration, expected, generate important synergies, with projected savings of about 400 million pesos per quarter in operating expenses, which represents about 15 percent of Sky’s operating expenses.
“There should be synergies in income, since Televisa will be able to more efficiently target both Cable and Sky bases, offering the best product to each client, as well as Cable will be able to benefit from the premium sports package offered by Sky. Management commented that the combined entity should have margins of around 30 percent by the end of 2024, early 2025,” JP Morgan warned in a report.
Besides, a reduction in capital expenditure levels is anticipated, by 16 percent or 14 percent of revenuesand revenue synergies from being able to offer more tailored products to Cable and Sky customer bases, including premium sports packages.
Televisa also reported a gradual improvement in the net addition of Cable customers, with new registrations reaching between 400 thousand and 450 thousand. In April, Televisa’s Izzi implemented an average price increase of 4 percent to the majority of its customer base, excluding new users subject to promotions. Although this resulted in a slight increase in disconnections, the impact on the cancellation rate has been limited.
Cable’s performance, for its part, was still affected by the effects of Hurricane Otis in the first quarter of 2024. Several clients have not yet regularized their payments.
