Ernesto Gonzalez

Ernesto Gonzalez inquired about the opportunities Grupo Televisa is exploring in the Mexican telecom sector, asking if they are focused on the fixed or mobile market, and requested additional details. He also questioned the sustainability of the strong operating segment income margin achieved in residential operations during the fourth quarter.

Answer

Alfonso de Angoitia Noriega, Co-Chief Executive Officer, Grupo Televisa, stated that they are actively exploring opportunities in the telecom sector but could not provide specifics at this time, noting there's no guarantee of materialization. Francisco Valim, CEO of Cable and Sky, Grupo Televisa, addressed the margin sustainability, explaining that ongoing optimization, including AI-oriented systems, aims to improve efficiency, lower the cost base, and continuously increase operating cash flow.

Ernesto Gonzalez inquired about the specific nature of the telecom opportunities Grupo Televisa is exploring in Mexico (fixed or mobile market) and the sustainability of the strong operating segment income margin achieved in residential operations during Q4.

Answer

Alfonso de Angoitia Noriega, Co-Chief Executive Officer, stated that Grupo Televisa is actively exploring telecom opportunities in Mexico but could not provide specific details at this time. Francisco Valim, CEO of Cable and Sky, addressed the sustainability of margins by emphasizing ongoing operational optimization through AI-oriented systems to enhance customer service and reduce the cost base, confirming a continued pursuit of increasing operating cash flow.

Ernesto González asked about Grupo Televisa's expectations for cable growth rates in 2026 and whether the unit can accelerate growth. He also inquired about the sustainability of strong margins for Cable, Sky, and TelevisaUnivision, observed in the third quarter.

Answer

Francisco Valim, CEO of izzi y Sky, explained that as market penetration increases, net additions will naturally diminish across all players. He stated that future growth will come from selling more products and increasing ARPU to existing high-end customers, rather than high double-digit growth. Mr. Valim confirmed an ongoing effort to improve Cable margins through technology and process efficiencies, along with Sky synergies. Alfonso de Angoitia Noriega, Co-CEO of Grupo Televisa, attributed TelevisaUnivision's strong, sustainable margins (mid-30s) to significant cost reductions ($415 million), its extensive Spanish content library, and efficient content production in Mexico.

Ernesto González asked about the expected cable growth rates for 2026 and whether an acceleration is anticipated. He also inquired about the sustainability of the strong margins observed in Q3 for Cable, Sky, and TelevisaUnivision.

Answer

Francisco Valim, CEO of izzi y Sky, explained that as market penetration increases, net adds will diminish, with future cable growth driven by increasing ARPU through more products and speeds for high-end customers. He affirmed ongoing efforts to improve Cable and Sky margins through technology and process efficiencies. Alfonso de Angoitia Noriega, Co-CEO of Grupo Televisa, attributed TelevisaUnivision's strong margins to significant cost reduction initiatives, its vast Spanish content library, and efficient content production, stating that mid-30% margins are sustainable.

Inquired about the company's outlook for the second half of the year, including expectations for customer resistance to price increases and any other general expectations.

Answer

Executives stated that July and August have been strong, continuing the first half's trend. They are not seeing significant customer resistance to price increases, aided by slowing inflation and new promotional strategies that offer price predictability. They are cautiously optimistic for the rest of the year, citing positive indicators like historically low delinquency rates and a significant increase in prepaid phone consumption.

Ernesto González from Morgan Stanley asked for the company's outlook for the second half of the year, specifically focusing on potential customer resistance to price increases and any other expectations management could provide.

Answer

CEO Roberto Nobile stated that July and August continued the strong trends from the first half and that slowing inflation is helping manage customer needs. He mentioned a new promotion that provides price predictability while still allowing for ARPU growth, and noted a decrease in customer requests for discounts. CFO Gabriel Blasi added that they foresee milder inflation, delinquency rates are at historic lows, and prepaid consumption has increased, all of which are cautiously optimistic indicators for the remainder of the year.

Ernesto Gonzalez pointed to the slight sequential revenue weakness seen in North America and Europe in the fourth quarter and asked for an explanation of the dynamics in each market compared to the third quarter.

Answer

President Bruno Guicardi explained that the performance in Europe was shaped by the ongoing geopolitical and economic environment that has been a factor since early 2024. For North America, he attributed the slight dip to regular seasonality and minor volatility, stating it is not considered a critical issue for 2025 and that strong growth is still expected from the region.

Ernesto Gonzalez from Morgan Stanley asked about the sustainability of current demand trends, the specific drivers behind the raised revenue guidance, and the types of competitors CI&T is displacing within client accounts—whether they are high-end digital specialists or traditional IT service providers.

Answer

Founder and CEO Cesar Gon clarified that CI&T's primary competitors are traditional IT services and consulting firms, which they replace about 70% of the time. He explained that the raised guidance reflects current conditions, a record Q3 bookings quarter, and a record pipeline, though it is still too early to provide a specific outlook for 2025.

Ernesto Gonzalez requested an update on the competitive dynamics in both Colombia and Chile.

Answer

CEO Daniel Hajj Aboumrad described Colombia as a strong market where the company had a very good quarter and is well-positioned for 2025. For Chile, he noted that the post-merger integration is progressing well, with synergies being realized and subscriber gains in number portability for the last several months, indicating a successful strategy and network improvement.

Ernesto Gonzalez of Morgan Stanley requested color on the company's capital expenditure plans for its operations in Chile.

Answer

Executive Carlos Jose Garcia Moreno Elizondo responded that it was too early to provide specific figures for Chile's CapEx, as they will begin consolidating the operation on November 1st and the budget for next year is not yet finalized. However, he assured that the inclusion of Chile would not significantly alter the company's overall capital expenditure outlook.