GRUPO TELEVISA, S.A.B.

Mexican cable/DTH and media holding posting operating and net losses on sharply declining revenue, masked by heavy-D&A cash flow.

Strengths

• Very strong reported OCF margin 52% and FCF margin 38% (100th pct) from capital-intensive depreciation addbacks
• Solid liquidity (current ratio 2.5, 75th pct) and large cash balance (91st pct)

Risks

• Negative operating (-4.5%), net (-13.4%) margins and negative ROE/ROA; negative interest coverage
• Revenue -23% (9th pct) with cord-cutting/competitive pressure; planned ~19% dilutive capital increase
• TelevisaUnivision equity exposure and Mexico macro/FX risk

Notable findings

• No interest coverageInterest coverage -0.35 (cannot cover interest)
• Net lossNet loss (net margin -13.4%)
• Strong balance sheetStrong balance sheet — $2.2B cash & investments
• Revenue declineRevenue -23.0% YoY
• China exposure”), have imposed sanctions, export controls, import bans, new investment prohibitions, and other trade restrictions on Russia
• Insider sellingInsider selling — 20 open-market sale(s) by 17 insider(s) (cluster of 17 insiders, ~$1M, last 6mo) Form 4 ↗