Grupo Televisa (TV) Q4 2025: Fiber Network to Reach 75% of Footprint as OPEX Drops 8.3%

2026-02-27 | By EarningsIQ Research

Grupo Televisa’s Q4 2025 marked a strategic inflection with a decisive pivot to fiber-to-the-home (FTTH), a disciplined focus on high-value subscribers, and ongoing OPEX reduction that expanded margins despite persistent revenue headwinds. Management’s suspension of the 2026 dividend signals capital is being reserved for telecom opportunities, while the integration of AI across both network and content operations points to a technology-driven future. With DTC (direct-to-consumer) now 20% of EBITDA at Televisa Univision, the business model is shifting toward scalable, digital-first cash generation as legacy satellite declines are actively managed for cash flow.

Summary

• Fiber Acceleration: 75% of homes targeted for FTTH by end of 2026, driving network modernization.
• OPEX Efficiency: Margin expansion achieved via 8.3% OPEX reduction and strict cost control.
• Capital Reallocation: Dividend suspended to enable telecom sector investments and technology upgrades.

Performance Analysis

Grupo Televisa’s Q4 2025 results reveal a business in transition, with consolidated revenue down but operating segment income expanding 6.1% year-on-year due to disciplined cost management and integration synergies between Cable and Sky. The company’s operating segment income margin reached 40.9%, up 410 basis points, reflecting the impact of an 8.3% OPEX reduction and focus on higher-value customers.

Subscriber metrics underscore the pivot: broadband net additions improved sequentially throughout 2025, ending the year with 47,000 new internet subscribers after prior losses, while churn rates fell below historical averages. In video, subscriber losses moderated each quarter, aided by new sports content partnerships. Sky’s DTH (direct-to-home satellite) business continues its managed decline, with revenue down 16.8% year-on-year, but the focus is now on extracting cash flow and minimizing variable costs as the segment contracts.

• Cash Flow Emphasis: Free cash flow reached 5.9 billion pesos, supporting debt repayment and deleveraging.
• CapEx Discipline: 12.2 billion pesos invested, or 20.7% of sales, prioritizing FTTH upgrades and high-return projects.
• DTC Momentum: Televisa Univision’s direct-to-consumer business now drives a quarter of total revenue and 20% of EBITDA, with record profitability and margin expansion.

Operational improvements in customer retention, ARPU (average revenue per user) growth, and cost structure are offsetting top-line pressure, positioning the company for digital-led growth as legacy businesses wind down.

Executive Commentary

Strategic Positioning

1. FTTH Rollout as Core Infrastructure Bet

Televisa is executing an aggressive upgrade to fiber-to-the-home, aiming to reach 15-16 million homes (75% of its footprint) by end-2026, up from 9 million currently. This investment in FTTH, fiber-optic broadband delivered directly to residences, is central to improving network quality, reducing churn, and enabling higher-value service bundling. Every new subscriber is now connected via fiber, and legacy HFC (hybrid fiber-coaxial) deployments are being phased out.

2. OPEX and CapEx Discipline to Drive Margin Expansion

Cost control remains a top strategic lever: 2025 saw an 8.3% OPEX reduction and a 200 basis point margin expansion, with ongoing integration of EASY and Sky extracting further synergies. CapEx-to-sales is guided at 25% for 2026, focused on fiber upgrades and digital transformation, while cash flow is prioritized for debt reduction and future investments.

3. DTC and Content Monetization Shift

Televisa Univision’s DTC business has reached scale, now accounting for nearly a quarter of revenue and 20% of EBITDA, with robust advertising growth and premium subscriptions. VIX, the streaming platform, achieved record revenue and profitability, while AI-driven content production (such as micro-novelas) is accelerating cost efficiency and output.

4. Managed Decline of Legacy Satellite (Sky/DTH)

Sky’s DTH business is being managed for cash, not growth, with subscriber losses expected to persist as streaming and broadband cannibalize demand. The company is stripping out costs and focusing on variable expense management to preserve cash flow, acknowledging that a return to growth is not anticipated for this segment.

5. AI Integration Across Telecom and Media

AI is being embedded across network operations and customer engagement, with 2026 targeted as the year Televisa transitions to a fully AI-enabled telecom operator. On the media side, AI is driving efficiencies in content creation and production, positioning the company to scale output and reduce costs.

Key Considerations

Televisa’s 2025 results reflect a business model pivoting from legacy platforms to digital-first, high-margin growth, enabled by network modernization and strict cost control. Investors should weigh the following:

• Network Modernization Pace: Execution risk remains in scaling FTTH to 75% of the footprint by 2026, but progress to 9 million homes demonstrates momentum.
• Legacy DTH Drag: Sky’s structural decline will continue to weigh on consolidated revenue, but management is proactively managing costs and cash flow.
• Capital Allocation Shift: Suspension of the 2026 dividend signals capital is being reserved for telecom sector investments and potential M&A, rather than returning cash to shareholders.
• DTC Profitability: VIX and DTC have reached scale, but sustaining premium subscriber growth and advertising momentum is key to offsetting linear declines.
• AI-Driven Efficiency: Full-scale AI integration in both telecom and media operations could unlock further cost savings and operational agility.

Risks

Televisa faces ongoing revenue pressure from the secular decline in DTH and linear TV, while the FTTH buildout requires substantial capital and flawless execution. Competitive intensity in Mexican broadband is stable, but price increases rely on continued customer value delivery. AI integration and digital transformation carry execution and technology adoption risks, and any delays could impact efficiency gains and customer experience. The suspension of the dividend may be negatively perceived if near-term telecom investments do not deliver visible returns.

Forward Outlook

For Q1 2026, Televisa expects:

• CapEx-to-sales ratio near 25%, driven by FTTH upgrades and subscriber growth
• Continued OPEX discipline and margin expansion from integration synergies

For full-year 2026, management guided:

• FTTH coverage to reach 75% of footprint (15-16 million homes)
• Stable or improving operating margins, with DTC and broadband driving mix shift

Management emphasized the importance of maximizing World Cup commercial impact across platforms and the ongoing pursuit of telecom sector opportunities, with no guarantee of M&A but capital reserved for potential deals.

• World Cup expected to boost VIX and premium subscriber engagement
• AI rollout to transform customer service and network management by year-end

Takeaways

Grupo Televisa is actively reshaping its business for a digital-first future, with FTTH upgrades, DTC scale, and AI integration driving the next phase of growth and efficiency.

• Margin Expansion Outpaces Revenue Decline: OPEX discipline and integration synergies are enabling operating income growth even as legacy segments contract.
• Strategic Capital Deployment: Dividend suspension and targeted CapEx signal a commitment to long-term infrastructure and digital growth, not short-term payouts.
• Watch for FTTH Execution and DTC Momentum: Successful fiber deployment and sustained streaming growth will be critical for offsetting legacy drag and unlocking re-rating potential.

Conclusion

Televisa’s Q4 2025 results confirm a business in strategic transition, leveraging cost discipline, network modernization, and digital scale to offset secular headwinds. Execution on the FTTH rollout and DTC monetization will define the company’s value creation path in 2026 and beyond.

Industry Read-Through

Televisa’s pivot to FTTH and DTC underscores a broader Latin American trend: legacy pay-TV is in managed decline, while fiber broadband and streaming are the new growth engines. OPEX and CapEx discipline will be critical for all regional telecoms facing currency volatility and capital intensity, while AI-driven operational transformation is rapidly moving from concept to implementation. Investors should expect further dividend suspensions and capital redeployment across the sector as companies prioritize network upgrades and digital content platforms over legacy cash returns. Peer operators with large DTH exposure face similar managed wind-downs, with success hinging on the pace of fiber adoption and digital monetization.

TV Communication Services Telecommunications Streaming Fiber Direct-to-Consumer OPEX AI