Alex Azar

Alex Azar questioned the short-term and medium-term competitive dynamics in the cable market, particularly concerning high competitor net additions and approaching market penetration. He also sought insight into Sky's expected EBITDA contribution over the next few years, given its declining subscriber base, and asked for clarification on the long-term outlook for Sky's service in areas without fiber access.

Answer

Francisco Valim, CEO of izzi y Sky, acknowledged the market's nearing full penetration, explaining that Grupo Televisa's strategy focuses on high-end customers and ARPU growth rather than volume. He described Sky as a diminishing business due to fiber and OTT penetration, primarily serving unserved areas, but emphasized its continued positive cash flow generation from existing subscribers. Alfonso de Angoitia Noriega, Co-CEO of Grupo Televisa, added that the Mexican market is rational, with most players, except Telmex, raising prices. Mr. Valim clarified that Sky won't disappear entirely, noting its stable subscriber base in Central America and its role as the sole entertainment option for approximately 700,000 people in Mexico.

Alex Azar questioned the short-term and medium-term competitive dynamics in the cable market, given high competitor net adds, and sought insight into Sky's EBITDA contribution outlook amidst subscriber disconnections. He also asked for clarification on the long-term viability of Sky's service.

Answer

Francisco Valim, CEO of izzi y Sky, stated that the market is nearing full penetration, shifting Grupo Televisa's strategy to focus on high-end clients and ARPU growth rather than volume. He noted that Sky, while declining due to fiber and OTTs, generates positive cash flow and will continue to serve rural areas where other options are limited. Alfonso de Angoitia Noriega, Co-CEO of Grupo Televisa, added that the Mexican market is rational, with most players raising prices, except for Telmex, and emphasized Sky's role as a cash flow driver.