Televisa's Telecom Turnaround Gains Momentum as World Cup Boosts Media
Telecom Turnaround Takes Hold
Grupo Televisa reported its second quarter 2026 results on July 24, marking the third anniversary of Francisco Valim's leadership of the telecom operations. The company's core cable and satellite business is showing a turning point: after years of subscriber losses, the value strategy has delivered five consecutive quarters of sequential Internet subscriber growth, with churn below 2%. “our strategy to focus on attracting and retaining value customers in Cable has allowed us not only to stabilize our Internet subscriber base, but to grow it sequentially for 5 consecutive quarters” — Alfonso de Angoitia Noriega, Executive Vice Chairman · 2026-07-24, said Alfonso de Angoitia.
The fiber-to-the-home rollout is proceeding at scale. The network now passes 12 million homes with FTTH, representing 60% of the footprint, and management reiterated its target to complete the upgrade by Q2 2027. “we already passed 12 million homes with FTTH and are on track to have a full FTTH network in the second quarter of 2027” — Alfonso de Angoitia Noriega, Executive Vice Chairman · 2026-07-24. This investment, combined with aggressive OpEx controls, has transformed the cost base. Annual operating expenses are down 18.4% from three years ago, and the company has cut headcount from 34,000 to about 25,000.
Free cash flow generation has been the top priority, and the results are visible: cumulative FCF of MXN 16.4 billion over three years, helping reduce leverage from 2.4x to 1.6x EBITDA. FTTH network expansion is clearly paying off in the form of a more efficient operating structure and a healthier balance sheet. As Valim stated repeatedly, the company's focus on high-value customers is deliberate; “we are the only company in Mexico increasing ARPU consistently across the board” — Francisco Valim Filho, CEO of Cable and Sky · 2025-10-24.
World Cup Lift for TelevisaUnivision
The media division, TelevisaUnivision, delivered a blockbuster quarter thanks to the World Cup. Total revenue rose 10% year-over-year to $1.3 billion, with Mexico revenue surging 53% to $605 million on advertising, subscription, and licensing strength. “Mexico's revenue surged by 53% year-on-year to $605 million as the FIFA World Cup was an extraordinary success, serving as a catalyst for multi-platform growth” — Alfonso de Angoitia Noriega, Executive Vice Chairman · 2026-07-24. The U.S. market declined 11% as expected, but the company expanded CPMs and saw growth in recurring sports revenue. ViX, the streaming platform, achieved record subscriber additions and became the exclusive home of the tournament in Mexico.
Despite the revenue surge, consolidated adjusted EBITDA fell 3% due to heavy sports-related costs, and net leverage at TelevisaUnivision remains elevated at 5.5x. Management struck a cautious tone on U.S. advertising, expecting Q3 trends to be broadly similar to Q2.
Strategic Positioning and Partners
The company's M&A ambitions in Mexican telecom remain a recurring theme. When asked about consolidating the market, Alfonso repeated the long-held view that a four-player market is inefficient, and the company has been exploring opportunities. “we are actively exploring opportunities in the telecommunications sector” — Alfonso de Angoitia Noriega, Executive (likely Co-CEO or Chairman) · 2026-02-27 was the stance in February, and it has not changed. The balance sheet strength and deleveraging provide room to act.
Another key strategic thread is the Starlink partnership. Valim highlighted the B2B and emerging B2C collaboration, emphasizing its complementary role to fiber. “We have signed an agreement with them early last year, and we are ahead of the curve” — Francisco Valim Filho, Chief Executive Officer of Telecom Operations · 2026-07-24. The company sees Starlink as a profitable addition in areas where fiber is not yet deployed.
Meanwhile, the integration between Izzi and Sky continues to yield synergies, and management sees further room to improve margins through technology and process automation. The company is increasingly embedding AI across sales, collections, and customer service, taking a build-versus-buy approach to control token costs and data security.
Conclusion
Grupo Televisa is riding a dual narrative: a disciplined telecom turnaround that is now showing tangible financial rewards, and a media business that leveraged the World Cup to accelerate growth in its streaming platform. The fiber upgrade and cost discipline are transforming the company's risk profile, while the M&A optionality and strategic partnerships add upside.
With a strengthened balance sheet and a clear operational playbook, the marathon is starting to look like a winning one.Telecom is not a sprint. This is a very long marathon.