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Good morning, everyone, and welcome to Grupo Televisa's Second Quarter 2026 Conference Call. Before we begin, I would like to draw your attention to the press release, which explains the use of forward-looking statements and applies to everything we will discuss today on the call and in the earnings release.

I will now turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Please go ahead, sir.

Thank you, Elsa. Good morning, everyone, and thank you for joining us. With me today are Francisco Valim, CEO of our telecom operations; and Carlos Phillips, CFO of Grupo Televisa.

Before discussing our second quarter operating and financial performance, let me remind you that we are celebrating the third anniversary since Francisco Valim and his team joined Grupo Televisa to lead the turnaround of our telecom operations. Therefore, we would like to take the opportunity to share with you what we believe have been our major accomplishments throughout this period.

First, 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. The quality of our subscriber base has improved considerably throughout this period, allowing us to maintain churn below 2% also for 5 consecutive quarters. Moreover, during the second quarter of 2026, our churn rate was the lowest of the last 10 quarters, leading us to believe our value strategy is proving successful.

Second, following several quarters with Cable revenue pressure, we experienced a turning point over the last couple of quarters. During the first half of 2026, our residential and enterprise revenue of MXN 23.7 billion increased by 2.6% year-on-year, and we are confident this pace of growth is sustainable.

Third, we have been executing on the implementation of OpEx efficiencies and the integration between Izzi and Sky to materially reduce our OpEx structure and extract synergies. Evidence of this is that our annual OpEx of MXN 34.5 billion is 18.4% lower than the MXN 42.2 billion we spent 3 years ago despite the accumulated inflation of 14.7%.

Most of these savings come from headcount efficiencies as we moved to about 25,000 employees from around 34,000 in mid-2023. This allowed us to cut labor costs by almost 8% despite cumulative minimum wage increases of more than 50% over the last 3 years. Moreover, our programming costs and expenses have also been cut by around 20% throughout this period. This contributed to expanding our annual consolidated operating segment income margin by around 260 basis points to 40.7% from 38.1% 3 years ago.

Fourth, by the end of 2024, we decided to upgrade 100% of our 20 million homes network to fiber-to-the-home. Back then, we only had around 22.5% of our homes passed by an FTTH network. Still, 18 months after the launch of the upgrade, we already passed 12 million homes with FTTH and are on track to have a full FTTH network in the second quarter of 2027.

Fifth, our CapEx deployment approach has been very disciplined to focus on free cash flow generation, which has been our absolute top priority. On average, our annual CapEx of MXN 11.3 billion has been 36.5% lower than the average of the 2 years before Valim joined the company, while our aggregate CapEx to sales ratio of 18.5% compares well to the 25.8% we used to have before. Excluding the upgrade of our network, these numbers look even better. On average, our yearly organic CapEx of MXN 9.1 billion would have been almost 50% lower than before, while our aggregate CapEx to sales ratio would have been only 14.9%.

Sixth, over the last 3 years, Grupo Televisa's corporate expenses have declined by around 65% to an annual figure of around MXN 400 million compared with about MXN 1.2 billion before. We have been able to achieve this by further integration of several functions with our telecom operations, including back office, IT systems and procurement, among others.

And seventh, over the last 3 years, free cash flow generation has been quite strong. As I mentioned, this is our top priority. Throughout this period, Grupo Televisa has generated a cumulative amount of MXN 16.4 billion in free cash flow, equivalent to $300 million per year. Excluding the upgrade of our network, the accumulated free cash flow would have been MXN 20.6 billion or around $375 million annually. This has been contributed for Grupo Televisa's leverage ratio to decline to 1.6x EBITDA from 2.4x at the end of the second quarter of 2023.

I strongly believe we're on the right track here, and we have a great team headed by Valim. The results speak for themselves. Having said that, let me turn the call over to Valim, as he will discuss the operating and financial performance of our consolidated assets.

Thank you, Alfonso. Good morning, everyone. Let me start by saying I'm very proud to be here and for the achievements of the team over the last 3 years. It has been a wonderful journey, full of accomplishments.

Now let me walk you through the operating and financial performance of our Cable operations. We ended June with a network of 20 million homes after passing around 12,000 new homes during the quarter. In addition, we upgraded over 1.5 million homes to fiber-to-the-home technology, ending the second quarter with around 60% of our total footprint passed with FTTH. Moreover, as Alfonso mentioned, we are on track to upgrade another 8 million homes to FTTH technology over the next 12 months to have a full fiber network by the end of the second quarter of 2027.

In the second quarter, our monthly churn rate remained below our historical average of 2% for the fifth consecutive quarter as we keep focus on value customers while working on customer retention and satisfaction. Our broadband gross adds is low due to: our price increase implemented in April; more aggressive promotions from our competitors; and an earlier-than-expected rainy season.

This led us to have softer broadband net adds of 9,400 during the second quarter. However, looking at the last 4 quarters, we're able to deliver over 80,000 broadband net adds, which is in line with our annual internal goals. In video, we lost about 31,000 subscribers in the second quarter, which compares well to an average of around 38,000 disconnects over the last 4 quarters.

Moving on, our mobile net adds of 72,000 subscribers during the second quarter remained solid, but slowed some compared to an average of about 92,000 net adds over the last 4 quarters. The new law requiring all mobile phone users to register their phone lines with photo ID and their official identification may be causing a generalized temporary slowdown in the Mexican mobile market. However, we are well positioned to face this new environment as all our new users are postpaid, making their registration automatic.

During the quarter, net revenue from residential operations of MXN 10.7 billion increased by 1.8% year-on-year. This marks the best quarter of the last 2.5 years at our residential operations from a revenue growth performance standpoint and compares well to a full year revenue decline of 1.8% and 2.5% in 2025 and 2024, respectively.

On a sequential basis, rent revenue from our residential operations grew again by 1.1%, solidifying our gradual recovery. Net revenue from our enterprise operations of MXN 1 billion increased by 0.8% year-on-year, slowing considerably relative to the strong growth experienced in the first quarter, as most of the revenue increase that we expected for this year at our enterprise operations already took place.

Moving on to Sky's operating and financial performance. During the second quarter, we lost 279,000 revenue-generating units, mostly coming from prepaid subscribers that have not been recharging their services. While disconnections at Sky continue to be robust, we saw an improvement compared to the average disconnections of 326,000 revenue-generating units over the last 4 quarters, potentially driven by the World Cup transmission. Sky's second quarter revenue of MXN 2.5 billion declined by 20.3% year-on-year, mainly driven by a lower subscriber base. However, the pace of decline slowed some relative to a year-on-year contraction of 24.6% in the first quarter.

To sum up, segment revenue of MXN 14.3 billion fell by 3% year-on-year, while operating segment income of MXN 6 billion increased by 5%, showing sustained momentum on the growth rebound experienced over the last 2 quarters, driven by an OpEx decline of 8%. Our operating segment income margin of 41.8% expanded by 310 basis points year-on-year, making it the best quarter of the last 3 years in terms of profitability, driven by efficiency measures that we have been implementing and the synergies that have been ongoing integration between Sky and Izzi. On a sequential basis, profitability expanded by 40 basis points.

Regarding CapEx deployment, our second quarter total investments of MXN 3.6 billion accounted for 25.3% of sales. The main reason behind having higher total investments relative to the second quarter of last year was the FTTH upgrade of 1.5 million homes previously discussed. Finally, operating cash flow for Cable and Sky, which is equivalent to EBITDA minus CapEx, was MXN 2.4 billion in the second quarter, accounting for 16.6% of sales.

Thank you, Valim. Great job. Now let me walk you through TelevisaUnivision's second quarter results. The company's revenue of $1.3 billion increased by 10% year-on-year, including the impact from the appreciation of the Mexican peso, driven by our exceptional results in Mexico. During the quarter, 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 across our advertising, subscription and licensing businesses, while in the U.S., revenue of $722 million fell by 11%, reflecting anticipated domestic advertising headwinds, including the fact that we did not air the World Cup.

While revenue growth was strong during the quarter, total operating expenses increased by 16% or 11%, excluding the appreciation of the Mexican peso, driven by the anticipated sports-related costs associated with the World Cup in Mexico and Latin America. As a result, adjusted EBITDA of $388 million declined by 3%.

Moving on to the details of our revenue performance. During the quarter, consolidated advertising revenue decreased by 9% year-on-year. In the U.S., advertising revenue was 29% lower, reflecting cyclical softness in our linear business and lower ViX advertising revenue, both of which were impacted by us not having the World Cup.

Although advertiser spending shifted during the quarter, we continued to grow audience ratings leading into the tournament and we expanded CPMs year-on-year while successfully navigating a dynamic counterprogramming environment. Our core business demonstrated resilient underlying trends, and we saw growth in recurring sports-related revenue driven by emerging categories such as sports betting.

In Mexico, advertising revenue increased by 23% year-on-year, driven by the strength of both our linear and DTC platforms, which offered 39 consecutive days of premium World Cup coverage. During the quarter, we delivered an unprecedented total reach of approximately 415 million across 79 matches, nearly doubling our closest competitor by underscoring the dominance of our multi-platform ecosystem. We saw strong demand for the World Cup inventory, and our scale, combined with strategic execution across our linear and digital platforms, unlocked new revenue streams that monetized viewership.

During the quarter, consolidated subscription and licensing revenue increased by 40% year-on-year, driven by approximately $90 million in World Cup sublicensing revenue in Latin America, continued growth in ViX's premium tiers and higher linear distribution revenue. In the U.S., subscription and licensing revenue grew by 8%, reflecting higher average rates, incremental distribution revenue from Hulu Live TV and growth in ViX.

In Mexico, subscription and licensing revenue increased by 157%, supported by the previously discussed World Cup sublicensing revenue and continuing growth in ViX's premium tier. ViX delivered exceptional engagement and record subscriber growth as the platform was the exclusive streaming destination for the tournament.

Our World Cup strategy significantly outperformed expectations as we posted record ViX subscription revenue and the highest quarterly subscriber additions in the platform's history. ViX continues to scale, and we remain focused on driving subscription revenue growth and DTC profitability, which are our primary operating priorities.

Moving on to our balance sheet. TelevisaUnivision ended the quarter with $766 million in cash, driven by seasonality and timing of advertising upfront collections in Mexico amplified by the World Cup. In addition, we have around $770 million of available capacity under our credit facilities.

CapEx for the quarter was $36 million compared to $23 million last year, but we continue to expect full year 2026 CapEx to be consistent with full year 2025 levels. Looking at our leverage, we ended the quarter with a net debt-to-EBITDA of 5.5x, a modest improvement from 5.7x in the prior quarter.

Going forward, we remain prudent on the U.S. advertising market. We expect third quarter U.S. advertising trends to be broadly consistent with the second quarter, reflecting macroeconomic conditions and a competitive sports programming slate. We anticipate continued World Cup momentum in Mexico and Latin America, together with fourth quarter U.S. political advertising, to partially offset near-term U.S. advertising pressures through the second half of 2026.

To wrap up, Bernardo and I are confident that Grupo Televisa's strong balance sheet and the solid financial performance at our telecom operations position us well to consolidate our undisputable position as the second largest telco operator in Mexico after the incumbent and to create greater value for our shareholders.

Now we are ready to take your questions. Elsa, could you please provide instructions for the Q&A?

The first question will come from Alejandro Gallostra with BBVA.

Excellent. Alfonso, I'd like to ask you a few questions about your strategy about your intention to potentially consolidate the telecom market. The first question, Alfonso, is -- I'd like to know what do you think is more likely to happen? Do you think that Televisa is more likely to try to consolidate the market on its own, going with it alone? Or it's more likely to bring a strategic partner for this journey?

The second question that I would like to ask is, what is your intention? Are you looking to acquire 100% of whatever assets you are interested in? Or you would be happy with a 51% controlling stake? And finally, Alfonso, I also like to know, what would be the leverage that you would be comfortable with at a consolidated level after consolidating any potential assets?

Well, Alejandro, great questions. I could spend an hour answering them, but I will try to make that shorter. I guess what I would say is we have been trying to consolidate the cable industry for a very long time. I think it's the right thing that we have to do as an industry.

I think if you look at other cases throughout the world, a 4-player market is a complicated market. So we have been trying. Unfortunately, we have been unable to accomplish that. As the telecommunications sector in general, I would say that we always analyze strategic opportunities. This is all the time as they come. These are opportunities that we see would strengthen our competitive position and of course, create shareholder value within our sectors.

We have always tried to be disciplined as to our capital allocation and returns over the investment. So it depends on the particular opportunity to determine whether we bring in strategic partners or not. So it depends on the possibilities, the opportunity, the company itself, the part of the sector that we're talking about. So it all depends on that, on the particular opportunity as it comes.

I would say, as to the level of leverage that we feel comfortable in having, I guess it all depends also on the opportunity and the cash flow generation that opportunity would bring or not and how we would deleverage in a particular acquisition. So it all depends on how we see a particular opportunity.

And Alfonso, also, regarding the stake that you're looking to acquire, any comments on that? Are you happy with a 51% stake or always looking to acquire 100% of whatever assets you're interested in?

Yes. I would say it depends on the particular opportunity as well. So in some instances, we would not have -- I mean, we would like to control and operate the company. But in some instances, it would depend, and we could have less than that as well. So it depends. It all depends.

And I would only add, Alejandro, to your point about leverage that as you've seen, since we changed our strategy in Cable, we've generated a lot more cash. And we've been able to delever the company significantly, below 2x. So our balance sheet is very strong. In case of any M&A opportunities, like Alfonso was saying, it's going to depend on the opportunity, but we -- our balance sheet today is pretty strong to be able to deal with them.

The next question will come from Marcelo Santos with JPMorgan.

I want to go more on the operational side, probably more to Valim. The first question is, how much more space do you think there is to extract synergies between Cable and Sky? I mean, I think Alfonso mentioned a lot of these gains are coming from headcount reductions. At what point do you reach kind of a steady state? I know costs always have to keep cutting and improving, but probably, I wanted to more structural changes. How far are we there? That's the question number one.

The question number two would be, could you expand a bit more on your comment regarding increased competition on broadband? Because I think you gave 3 reasons for the broadband adds, like price increase, more competition and early rainy season. So I was interested in the second one, if you could just say a bit more about that?

So Marcelo, I think that synergies is a broad name to define many things. And in telecom, in this day and age with the amount of new technologies, especially helping in terms of efficiencies on the back end of the operations, I think we still see a lot of room for improvement. Obviously, the synergies are coming to an end in terms of the integration between Sky and Izzi, but it doesn't mean that we are not pursuing further improvements in terms of efficiency and do that on a daily basis.

So I would not assume that we cannot find even more opportunities in terms of how we can streamline the operations. And like I said, technology has a lot to do with that. And we have been heavily invested in making sure that we have the best, most efficient operation, but at the same time, that provides the customers with satisfaction. So NPS is a key element of our business, but also making sure that we do that at the least possible cost is always part of the discussion.

So from our day-to-day operations, like you're referring to, we see opportunities for improvement in many areas of the business. Still, telecom, especially in a large organization, they take time to mature. And we have several coming up in the future, so we should see still improvement in terms of margins moving forward.

In terms of the competition, I think that is an interesting question because there are many levels of competition. So let's discuss our subscriber base in terms of different groups. So Sky is a technology that is, by definition, struggling when fiber is deployed all over the country. So most of the consumers are either migrating to us or some of the other players and also using more OTTs than they used to. So -- and the Sky customers typically had a higher ARPU. So obviously, the migration in Sky is something -- migrating out of Sky is something that will happen moving forward. So we see that as a competition in a sense.

When you divide our subscriber base, the existing subscriber base, the customers that are with us for longer than 12 months, our churn there is significantly lower than the average. Where we see higher churn is at the front end. Why? Because there's a lot of competition for the bottom feeders, meaning those people that are going after MXN 50 discussion, I am MXN 50 cheaper than you, and et cetera, et cetera.

So churn is higher at the entry level, but our churn is significantly lower at the end of the pyramid. So our subscriber base at the end of the -- so subscribers that have 12 months or more, we keep on improving subscribers. We keep on improving ARPU. And so those are our focus.

So -- and why should we increase competition at this lower level doesn't make a lot of sense because it requires sales, CapEx installation. And definitely higher churn and lower payback for these customers. So we see some of the players in the market going after those low-end customers like crazy, you can see it reflects on their CapEx, which is significantly higher than ours for those acquisitions.

So we are being very selective as to which channels and which clients we are going after because we can always go do this fight for this lower ARPU and have higher net adds. But the question is, how long they will stay on the subscriber base and how much they contribute to the subscriber base? And we don't want to go after those clients. We want to go after those clients that need more service, that are looking to a more resilient provider that not only provides broadband, but provides other services that are very appealing to them, not only in terms of the services and the quality of the services, but also in terms of the overall value proposition.

So that's our approach. I understand some other players in this market have a different approach. We appreciate them, and we think that they are doing a good job, but we have a different strategy. And that reflects itself in growing subscriber base not at the rates that someone might think it's needed. We think it's more wise, what we are doing.

And in terms of cash flow generation, just like Carlos mentioned, we are generating a ton of cash, and that's what we think drives the business in the long run. Telecom is not a sprint. This is a very long marathon.

The next question will come from Lucca Brendim with Bank of America.

I have two from my side. The first one, can you give us some color on the increase that we've been seeing in the last couple of quarters in lease payments? If there's a reason -- a specific reason behind that and if this trend will continue or not?

And then the second one, on the regions where you are upgrading to fiber, are you already seeing benefits from that in terms of your competitive position in the region, if you're able to raise ARPU more there or if you're seeing lower churn? Any color on that would be great.

Thank you, Lucca, for your question. Carlos, can you take the first one, please?

Yes. Lucca, the main driver of the increase in leases, as you've been observing, has to do with one of the efficiencies that the team at Izzi has been executing, which is to -- we used to own most of the auto fleet in the company. And now we've been switching to leasing autos, which has generated a lot of savings in other lines. So that's really the main driver in terms of the lease increase.

And regarding the deployment of the network, the idea here is very simple. All of our new net adds are on fiber. And whenever a client has an issue or needs some service, we upgrade them from our existing network to the fiber network. So that's how we are approaching this.

And what we are seeing is we are able to sell better products, higher prices and more solutions when we migrate to fiber. We do not do a side-by-side comparison because it's not -- it's the same subscriber base. As the client decides to see more speeds, better services, we migrate them to fiber, and that's easy.

But this is an ongoing process. We do not have 2 parallel services independent. It's the same service that most of the clients actually do not know if it's fiber or not, okay? We have surveyed our subscriber base many times, and they do not know which technology they are using in their homes.

So for us, it's basically a technological migration to allow us to be competitive in the long run. In the short run, the network that we have works okay. In the long run, obviously, fiber is the end game. So we are ready and working towards migrating the subscriber base to fiber. And we'll do that when the clients need or when we feel it's necessary to -- for a more robust or more sizable migration.

The next question will come from Phani Kanumuri with HSBC.

The first one is regarding the impact of Starlink. Are you seeing any potential disruptions from Starlink? Or do you see them as partners in the telecom sector?

And the second one is regarding your strategy for TelevisaUnivision. Now that you are considering a much more active M&A strategy in Mexico, depending on the opportunity, do you plan to monetize TelevisaUnivision stake around the M&A to maintain your leverage?

Starlink -- can you put your mic on mute? Thank you, Phani. So as to your first question, we believe it will be a mistake to underestimate Starlink and what they're doing in terms of launching 800 new satellites with much higher capacity. However, in our market, with the pricing and the ARPU we experience, we believe it's not a threat in the short term in the mass market. Francisco, can you describe what we're doing with that?

Yes. We have basically two approaches with Starlink. We have a B2B approach. We have signed an agreement with them early last year, and we are ahead of the curve. We are using them as a complementary and sometimes a backup to other services to corporate clients. So Starlink is happy, we are happy. We have been moving forward very quickly with that deployment.

We are also starting a new phase with Starlink which is a B2C phase, which is also complementary to what we offer. So when we have fiber, obviously, fiber provides a very -- is an excellent solution. But where we do not have and combining that with the content that we offer is where we are going with Starlink. So together with Starlink in both B2B and B2C, we see a lot of room for improvement. And I think that's a very profitable partnership for both sides.

And on the TelevisaUnivision stake thing?

Well, the strategy, as we have communicated in the past is basically what we see as the future is growing ViX as our streaming service. I think we gained a lot of strength, and we moved in the right direction using the World Cup as leverage. In Mexico, ViX was the only streaming platform that had 104 games. So that was the total amount of games of the World Cup.

We, in essence, launched a product that had all those games, and we were very, very successful with it. We sold around 1 million add-ons of that service. So we're gaining ground and speed of growth. So we're very happy with the prospects of ViX. We believe that to be an essential part of our strategic future. So it's all around ViX, and of course, maintaining the strength and our market share on linear television.

The next question will come from Matthew Harrigan with Benchmark.

A European telecom peer of yours, Liberty Global, had some really interesting presentation numbers from the study that McKinsey and Google did on AI-related OpEx savings. They really broke down the cost buckets, where they're applicable, and some pretty substantial percentage cost reductions to realize over a period of time. I know you probably have done similar things. I know TelevisaUnivision has -- obviously, Google is an owner there, as I recall.

What do you think the long-term AI benefits are just on kind of the blocking and tackling, operational side? And is there any concern over token costs increasing? Because that's certainly an issue with some U.S. companies that are involved with the hyperscalers.

Thank you for your question, Matthew. It's a great question. I'll answer in respect to TelevisaUnivision. And then Francisco is doing a lot of stuff that has to do with AI on the Izzi side, so he can answer that part.

I would say that as to TelevisaUnivision, we're doing all types of things with AI. We're working on the production side. This is with several companies, specialized companies. We're working on the production side. We're working on the set designing side. We're working with special effects. We're working with the musicalization of our programs and shows.

We're working with a great company called ElevenLabs in what has to do with dubbing. Now you can do great dubbing with the voices of the actors and actresses with AI. And this company is providing us an excellent product where we can dub, for example, a telenovela into Portuguese or into Korean, and then very efficiently taking the great products that we have, those telenovelas and launch them in Korea or in Turkey or in all over the world.

So we're working on all fronts as to what we can do with AI. And we have seen this brings tremendous efficiencies to our -- especially to our production, to our, as I mentioned, set designing, special effects, musicalization, et cetera. So we're very happy with the prospects there in terms of not only on the cost side, but also on the revenue side, as I mentioned, and being able to dub into different languages and take those products to different countries throughout the world.

In terms of Izzi, we also have deployed AI in several processes, from sales to collections. And so it's already embedded in all of those processes.

One of the questions people ask is what about the cost of tokens. We took an approach that many companies have taken in, bringing the infrastructure internally. So we don't go outside. So we don't pay, in essence, tokens. We have storage, cloud storage, and GPUs that do that internally.

And that has two advantages. One, we manage the cost precisely so we don't have to go just guessing what's going to happen. And two, it also prevents any leakage of potential -- of data. So -- and so because of those two, so we do already have infrastructure and already AI in all of our processes from sales to collections. Obviously, this is an ongoing process and an ongoing evolution. Like you said, we -- and I think Marcelo has asked the same question earlier. In terms of evolving costs, we see that as improvement moving forward as well.

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Alfonso de Angoitia for any closing remarks.

Thank you for participating in our call. If you have any questions, please give us a call, and have a great weekend.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good morning, everyone, and welcome to the Grupo Televisa's First Quarter 2026 Earnings Conference Call. Before we begin, I would like to draw your attention to the press release, which explains the use of forward-looking statements and applies to everything we discuss in today's call and in the earnings release.

I will now turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Thank you, and over to you.

Thank you, Elsa. Good morning, everyone, and thank you for joining us. With me today are Francisco Valim, CEO of Cable and Sky; and Carlos Phillips, CFO of Grupo Televisa. Before discussing our first quarter operating and financial performance, let me remind you of the strategic priorities approved by the Board of Directors of Grupo Televisa and TelevisaUnivision that we will pursue this year. At Grupo Televisa, we will continue to focus on attracting and retaining value customers to keep growing our Internet subscriber base throughout this year, extract further synergies from the integration between Izzi and Sky, execute on the implementation of OpEx and CapEx efficiencies and upgrade 6 million homes to FTTH technology, ending 2026 with 75% of our total footprint passed with FTTH.

Efficiency measures implemented over the last couple of years have already contributed to expanding our consolidated operating segment income margin by around 330 basis points in the first quarter, driven by a year-on-year OpEx reduction of around 8%, and we would expect to sustain profitability above 40% over the coming quarters. And at TelevisaUnivision, now that our direct-to-consumer business, ViX, represents over 20% of consolidated revenue and EBITDA, we are confident that additional value can be unlocked through further integration and operational optimization of our content business.

Despite anticipated headwinds in the U.S. from the cyclical timing of events such as the Winter Olympics and FIFA World Cup, we preserved our audience ratings and managed yields to drive pricing growth. We also expanded our political sales infrastructure to ensure that we are well positioned to capitalize on record political advertising spend ahead of the November midterm elections. In Mexico, the great results of our upfront position us well to continue monetizing the FIFA World Cup momentum with sales to date exceeding the prior 2022 World Cup cycle.

Having said that, let me turn the call over to Valim as he will discuss the operating and financial performance of our consolidated assets.

Thank you, Alfonso. Good morning, everyone. First, let me walk you through the operating and financial performance of our cable operations. We ended March with a network of 20 million homes after passing around 12,000 new homes during the quarter. In addition, we upgraded over 1.5 million homes to fiber-to-the-home technology, ending the first quarter with over 52% of our total footprint passed with FTTH. Moreover, we are on track to upgrade another 4.5 million homes to FTTH technology in the remainder of the year.

In the first quarter, our monthly churn rate remained below our historical average of 2% for fourth consecutive quarter as we keep executing our strategy to focus on value customers rather than volume, while working on customer retention and satisfaction.

Our broadband gross adds remained solid, allowing us to deliver 35,000 (sic) [ 25,000 ] net adds during the first quarter, in line with our fourth quarter of last year. In video, we experienced less cancellations than in the fourth quarter of last year. Therefore, we lost about 24,000 video subscribers in the first quarter compared to 31,000 disconnections in the fourth quarter and 43,000 cancellations in the third quarter, 53,000 disconnections in the second quarter and a loss of 73,000 video subscribers in the first quarter of 2025. Furthermore, as we mentioned in our previous earnings conference call, we expect lower video cancellation numbers to continue going forward, influenced by our multiyear partnership with Formula 1 to provide live coverage of all Grand Prix via Sky Sports channels available through Izzi and Sky beginning in the fourth quarter of last year and through the 2028 season.

Moving on, our mobile net adds of 95,000 subscribers during the first quarter maintained the strong momentum of the last couple of quarters. Our MVNO service has been making our bundles more competitive, allowing us to increase share of wallet from our existing customers and helping us maintaining low churn. During the quarter, net revenue from our residential operations of MXN 10.6 billion, which accounts for around 89% of total cable revenue, increased by 0.9% year-on-year. This marks the best quarter of the last 2 years of our residential operations from a revenue growth performance standpoint and compares well to a full year revenue decline of 1.8% and 2.5% in 2025 and 2024, respectively.

On a sequential basis, net revenue from our residential operations grew by 0.5%, signaling a gradual sequential recovery as well. Net revenue from our enterprise operations of MXN 1.3 billion, which accounted for around 11% of total cable revenue increased by 30% year-on-year, partially due to the timing of revenue recognition of an important contract signed in the fourth quarter of 2025 and because of easy comps. Adjusting this contract, net revenue from our enterprise operations grew by 15.6% as we have been signaling new deals with public and private customers.

Moving on to Sky's operating and financial performance. During the first quarter, we lost 325,000 revenue-generating units, mostly coming from prepaid subscribers that have not been recharging their services. In addition, as we have discussed in the past, beginning in the second quarter of last year, we started charging installation fee of MXN 1,250 to all new satellite pay-TV subscribers to increase the return on investment for this service. This translates in a slowdown in video gross add additions for Sky that has been steady over the last 4 quarters. Sky's first quarter revenue of MXN 2.6 billion fell by 24.6% year-on-year, mainly driven by a lower subscriber base.

To sum up, segment revenue of MXN 14.5 billion fell by 3.1% year-on-year, while operating segment income of MXN 6 billion increased by 5.2%, showing sustained momentum of the growth rebound experienced in the fourth quarter of last year. Our operating segment income margin of 41.4% expanded by 330 basis points year-on-year, making it the best quarter over the last 3 years in terms of profitability, driven by the efficiency measures that we have implemented and the synergies from the ongoing integration between Izzi and Sky.

On a sequential basis, operating segment income increased by 0.9%, while profitability expanded by 50 basis points. Regarding CapEx deployment, our first quarter total investments of MXN 2.5 billion accounted for 17.2% of sales. The main reason behind having higher total investments relative to the first quarter of the last year was the FTTH upgrade of 1.5 million homes previously discussed. Finally, operating cash flow of Cable and Sky, which is equivalent to EBITDA minus CapEx, was MXN 3.5 billion in the first quarter, accounting for 34.2% of sales.

Thank you, Valim. Amazing job. Now let me walk you through TelevisaUnivision's first quarter results. The company's first quarter revenue of $1.1 billion increased by 5% year-on-year. Excluding the impact from the appreciation of the Mexican peso, TelevisaUnivision's first quarter revenue was flat, underscoring the resilience of our portfolio in a dynamic macro environment.

During the quarter, results were driven by growth in ViX, which remains a key engine of expansion across both of our advertising and subscription businesses. We also delivered strong linear distribution and content licensing revenue in both regions and total advertising results remained nearly flat even as we faced anticipated softness in the U.S. from a sports calendar weighted to events outside our portfolio.

While operational performance remained solid during the quarter, total operating expenses increased 11% or 5%, excluding the appreciation of the Mexican peso, largely due to an increase in strategic marketing investments and a higher concentration of sports-related costs, primarily related to the Winter Olympics and the FIFA World Cup. As a result, adjusted EBITDA of $323 million declined by 6%.

Moving on to the details of our revenue performance. During the quarter, consolidated advertising revenue decreased by 3% year-on-year. In the U.S., advertising revenue was 12% lower as growth in direct-to-consumer advertising revenue was offset by softness in linear networks. In Mexico, advertising revenue increased 13% year-on-year, driven by DTC growth, which partially offset a timing shift of private sector advertising revenue to latter quarters related to FIFA World Cup campaigns.

During the quarter, consolidated subscription and licensing revenue increased by 15% year-on-year. In the U.S., subscription and licensing revenue grew by 12%, driven by continued DTC momentum, higher average rates and incremental revenue from Hulu Live TV.

In Mexico, subscription and licensing revenue increased by 28%, supported by the subscriber growth in ViX's premium tier, higher average rates and growth in content licensing driven by demand for our sports rights. Now we have fully lapped the renewal cycle impacts that we experienced last year, positioning us for more normalized growth comparison going forward.

Turning on to ViX. We delivered another quarter of solid growth and profitability and reinforce the strength of our DTC strategy. Its subscription video-on-demand tier also achieved double-digit subscriber growth and achieved an all-time low global churn. In addition, we achieved an engagement record on ViX with 1 billion streaming hours across AVOD and SVOD tiers while advancing our ecosystem readiness ahead of the FIFA World Cup. We have made strong progress in executing our World Cup's strategy, which is clearly focused on driving acquisition, expanding accessibility and sustaining engagement beyond the tournament.

Moving on to the balance sheet. TelevisaUnivision ended the quarter with $411 million in cash and approximately $725 million of available capacity under its credit facilities. Capital expenditures were $34 million for the quarter, essentially flat year-on-year, and we expect 2026 full year CapEx to be consistent with that of 2025. At the end of the first quarter, TelevisaUnivision's leverage ratio was 5.7x EBITDA, a modest increase from 5.6x at the end of 2025, partially due to the seasonality of the business.

Finally, earlier this month, TelevisaUnivision issued $1.5 billion in new senior notes due 2033 and offered to purchase all its outstanding notes due 2028. With this, our next debt maturity will come in 2029.

Moving on, let me remind you that on January 30, we used part of our free cash flow generated last year at Grupo Televisa to pay the remaining $207 million principal amount of our senior notes maturing this year. Moreover, at the end of the first quarter, Grupo Televisa's leverage ratio of 2x EBITDA compared to 2.4x by the end of the first quarter of 2024 due to our free cash flow generation of around MXN 4.3 billion over the last 12 months and our accumulated year-on-year EBITDA growth of 1.5%.

To wrap up, Bernardo and I are confident that our focus on value customers efficiencies and ongoing integration between Izzi and Sky at Grupo Televisa and further integration and operational optimization at TelevisaUnivision now that our DTC business represents over 20% of consolidated revenue and adjusted EBITDA will allow us to create greater value for our shareholders in 2026.

Now we're ready to take your questions. Elsa, could you please provide instructions for the Q&A?

[Operator Instructions] We have the first question from the line of Matthew Harrigan from Benchmark Stones.

Reaching a crossover now on the English market on streaming versus linear. I know Spanish is a little more resilient on the linear side. But what are you seeing on AVOD pricing premiums, CPMs? And what -- I know you've got some interesting things with the technology stack. Could you talk about that? And I guess that's my primary question. I had a follow-up.

Well, we feel great about our service, our technology. And if you saw the growth of ViX, it was spectacular. So we feel really comfortable with what we're offering, both technologically. We need some things that have to do with further personalization and recommendations. So we're moving in the right direction, but that needs a little improvement. But in general, I think the service technologically is great. And as a result of that and our content, if you saw our numbers, I think in terms -- we have grown engagement, we have grown the total stream hours. So we're happy with that. Of course, as a result of that, we're selling more advertising on the platform. So we're happy with the development of ViX.

And then you're one of the leading global Spanish news providers. And obviously, you're doing a lot in the mini novelas and all that in the short form content. What do you think the prospects are for ancillary monetization on TikTok and other digital forms because there's a plethora of content that's mostly on AVOD, your linear channels right now.

Yes. As to the micro-novelas, we have been successful. Last year, we produced around 30. This year, we will produce more than 100. So I mean, we're developing that market. We're selling advertising on those. So monetization is working. We have the micros on ViX primarily, but they're also on other platforms. Monetization on TikTok is we're talking to them because it's difficult, but we are talking to them. We're generating a lot of engagement and of course, on YouTube, on TikTok, et cetera. So our content works. Our content has a huge engagement, huge interest in general. So we're working with those platforms in terms of monetization. Today, we're monetizing that primarily on ViX.

We have the next question from the line of Ernesto Gonzalez from Morgan Stanley.

It's 2. First one is, can you talk a little bit about the strong margins you delivered and how sustainable these are going forward, especially considering some of the top line pressures you have from Sky? And the second one is, can you talk a little bit about the competition in the fixed market? That's it.

Thank you for your question, Ernesto. Valim, can you answer, please?

Sure. So the margins will fluctuate around the 40% range. In terms of the top line competition, this is a very competitive market where we all play a role. We tend to play a role more in the more sophisticated, more long-term clients that stay with us. So our churn is, like we said, between this 1.9% to 2% range and has been like that. We don't go -- we don't think that going after huge volumes of new acquisitions will drive any value moving forward. So I think this is more or less how we see the market.

We have the next question from the line of Olivia Mizovarta (sic) [ Olivia Mogavero ] from JPMorgan.

My first question goes on the line of M&A. How is your appetite evolving? And do you have any updates in your capital allocation strategy? And the second one, it would be interesting to have an updated outlook for your CapEx this year and for the mid- to long term, considering the homes [ spent ] that you already did in this quarter and your prospects for the next ones?

Thank you for your question. As to the capital allocation priorities, as you know, we're always exploring M&A opportunities in our sector. And of course, we will continue to use our free cash flow -- the free cash flow that we have generated to keep strengthening our balance sheet. And as I mentioned, we're prepared for potential M&A opportunities in the Mexican telecommunications sector.

As you might remember, on January 30 this year, we used part of our free cash flow generated last year at Grupo Televisa to pay the remaining $207 million of our senior notes maturing this year. So at the end of the first quarter, Grupo Televisa's leverage ratio of 2x EBITDA compared to 2.4x by the end of the first quarter of 2024. And this is a result of our free cash flow generation of MXN 4.3 billion over the last 12 months and our accumulated year-on-year EBITDA growth of 1.5%.

And regarding our CapEx, it will be why we are upgrading the network in the low 20s range percentage of revenue. As we finish that next year, obviously, it should go down to the 15% range, but that would be only second half of next year.

We have the next question from the line of Rafael from UBS.

Well, I'm going to start here by asking about the share of income from associates and joint ventures line for Grupo Televisa. It had a pretty relevant increase this quarter. You mentioned in the report that the main drivers were higher earnings at Univision and your increased stake in the company, right? So if you could please comment more about that and comment how should we think about this line going forward?

Yes. Thank you for your question, Rafael. Carlos, can you please answer?

Yes, Rafael, as you mentioned, we had an increase of around MXN 1.2 billion during the quarter in this line. As you may recall, we account for our investment in TelevisaUnivision using the equity method. So on this line, we include things, for example, as our share of net income in TelevisaUnivision. We also include the income from our preferred shares in TelevisaUnivision. And as you mentioned, during the quarter, we had an increase due to the fact that our share in Televisa, our ownership stake increased from 43.2% to 44.3%. Every quarter, this is normal in TU, there are increases and decreases depending on things like, for example, vesting of stock options and other items like that. The main driver of the increase during this quarter was that TU did a [indiscernible] of certain preferred stock, which increased our share. So that's basically the driver on that, which is the lion's share of the increase we saw in that line.

Okay. Super clear. Just a quick follow-up on CapEx. If we look at 2025 levels, it was concentrated more in the second half of the year. So looking at this year, should we expect also CapEx to be back-end loaded?

No. This year, it should be more level because we are already ramped up the build-out of the network last year. So we are on track and at the current speed, stable speed. So we wouldn't see a spike towards the end. It should be more flattish throughout the year.

We have the next question from the line of [ David Lopez ] from New Street Research.

I have a couple of quick questions, please. First one is if you could talk about your -- if you have plans for price increases on broadband this year? And the second question, I was wondering the 25 network that will not be fiber-to-the-home, do you have plans in the longer term to upgrade these homes as well? Or will they stay in non-fiber?

Yes, it's not that it will be -- by the end of this year, will be 75. By mid-2027, will be 100% fiber. So it's just a function of timing. Regarding price increases, we actually did a price increase of MXN 30 now in March on broadband.

We have the next question from the line of Lucca Brendim from Bank of America.

I have one here from my side. You had a very strong performance on enterprise this quarter. And I wanted to understand how much of that is recurring and will continue to the next quarters? You mentioned that part of it was due to the timing, the recognition timing for an important project. So does that only impact this quarter? Or will it also impact other quarters?

In terms of revenue, it is a recurring contract. So it will be impacting other quarters as well. As far as growth is concerned, obviously, the contract has spike in growth. It should not be repeated as much as we did, but we are anticipating still high growth from our enterprise business.

Ladies and gentlemen, that concludes our question-and-answer session. I would like to turn the conference over back to Mr. Alfonso de Angoitia for any closing remarks.

Thank you very much. Well, call us, if you have any additional questions. We're very happy with the results of this quarter. Thank you, and see you later.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good morning, everyone, and welcome to Grupo Televisa's Fourth Quarter and Full Year 2025 Conference Call. Before we begin, I would like to draw your attention to the press release, which explains the use of forward-looking statements and applies to everything we discuss in today's call and in the earnings release.

I will now turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and thank you for joining us. With me today are Francisco Valim, CEO of Cable and Sky and Carlos Phillips, CFO of Grupo Televisa. Last year was marked by several milestones, both at Grupo Televisa and TelevisaUnivision, which Bernardo and I are confident will allow us to keep creating value for our shareholders. At Grupo Televisa, let me touch on four major achievements.

First, our strategy to focus on attracting and retaining value customers in cable allowed us to grow our Internet subscriber base by around 47,000 in 2025. This marks a full year turning point after losing Internet subscribers, both in 2023 and 2024, mainly driven by a strategy decision not to retain low-value subscribers.

Second, we keep executing on the implementation of OpEx efficiencies and the integration between Izzi and Sky to extract further synergies. This contributed to expanding our 2025 consolidated operating segment income margin of 39.1%, by 200 basis points, driven by a year-on-year OpEx reduction of 8.3%. Third, we kept a disciplined CapEx deployment approach to focus on free cash flow generation. In 2025, we invested MXN 12.2 billion in CapEx, which is equivalent to 20.7% of sales. This CapEx is intended to deliver higher returns over the investment and has allowed us not only to have close to 1.4 million gross adds during the year, but also to upgrade 4.5 million homes to FTTH technology.

This basically means that we ended 2025 with around 9 million homes or approximately 45% of our total footprint passed with FTTH technology. Valim will elaborate on our plan to keep upgrading our network later during the call.

And fourth, in 2025, we generated around MXN 5.9 billion in free cash flow, allowing us to prepay bank loan due in 2026, with a principal amount of around MXN 2.7 billion. This debt repayment comes on top of the $220 million principal amount of our senior notes already paid on March 18.

Additionally, at the end of 2025, Grupo Televisa's leverage ratio of 2x EBITDA compared to 2.5x at the end of last year, mainly driven by our free cash flow generation. And at TelevisaUnivision, I will mention three key milestones. First, 2025 was a breakthrough year for our direct-to-consumer business, as ViX delivered record revenue since it was launched, achieving profitability in every quarter and expanded operating margins throughout the year.

For the full year, our DTC business represented nearly 1/4 of the total company revenue, driven by robust advertising growth from our free tier and the continued expansion of our premium subscription offerings. Moreover, our DTC business is now a significant contributor to our adjusted EBITDA, accounting for approximately 20%, driven by its industry-leading margins.

Second, the efficiency plan to reduce gross operating expenses at the TelevisaUnivision by around $400 million in 2025, delivered outstanding results. During the year, our total operating expenses declined by around 8% year-on-year for total operating expenses of around $3.2 billion. This shows a disciplined execution of our cost savings initiative. This OpEx reductions have been fully realized in our 2025 results.

And third, looking at TelevisaUnivision's leverage and debt profile the company ended the year at 5.6x EBITDA, an improvement from 5.9x at the end of 2024, driven by growth. Moreover, in 2025, TelevisaUnivision successfully refinanced $2.3 billion of debt, which extended its credit facilities and eliminated all near-term maturities. Deleveraging remains a core strategic priority for TelevisaUnivision.

Having said that, let me turn the call over to Valim, as he will discuss the operating and financial performance of our consolidated assets.

Thank you, Alfonso. Good morning, everyone. In 2025, consolidated revenue reached MXN 58.9 billion, representing a year-on-year decline of 5.5%, mainly driven by lower revenue at Sky. Operating segment income reached MXN 23 billion, equivalent to a slight decrease of only 0.6% year-on-year.

Turning to our fourth quarter results. Consolidated revenue reached MXN 14.5 billion, representing a year-on-year decrease of 4.5%, while operating segment income reached MXN 5.9 billion, equivalent to a year-on-year expansion of 6.1%, driven by the efficiency measures that we have been implementing since the integration of Sky.

Now let me walk you through the operating financial performance of our cable operations. We ended December with a network of 20 million homes after passing around 59,000 new homes during the quarter or over 118,000 new homes during the year. During the quarter, we continued to execute our strategy to focus on value customers rather than volume, while working on customer retention and satisfaction. This contributed to achieving a monthly churn rate below our historical averages of 2% for the third consecutive quarter.

Our broadband gross adds remained solid, allowing us to deliver 25,000 net adds during the fourth quarter compared to net adds of around 22,000 in the third quarter and 6,000 in the second quarter and the disconnection of about 6,000 in the first quarter of 2025.

In video, we also experienced stronger gross adds than in the first three quarters of the year and managed to reduce churn. Therefore, we lost about 31,000 video subscribers during the fourth quarter compared to 43,000 disconnections in the third quarter and 53,000 cancellations in the second quarter and a loss of 73,000 video subscribers in the first quarter of 2025.

Moreover, we expect these improving trends to continue going forward, influenced by our multiyear partnership with Formula 1 to provide line coverage of all Grand Prix via Sky Sports channels available through Izzi and Sky, beginning in the fourth quarter of last year and through the 2028 season.

Moving to mobile. Our net adds of 95,000 subscribers during the quarter showed sustained momentum as they were mostly in line with the 94,000 net adds in the third quarter. Our innovative MVNO services are already making our bundles more competitive, allowing us to increase the share of wallet of our existing customers and helping us to reduce significantly the churn of our existing customers.

During the quarter, net revenue from our residential operations of MXN 10.6 billion, which accounted for around 90% of total cable revenue decreased by only 0.6% year-on-year. This marked the best quarter of the last 2 years at our residential operations from a revenue growth performance standpoint and compares well to a decline of 1.8% in 2025.

On a sequential basis, net revenue from our residential operations remained stable, potentially signaling a gradual recovery. During the quarter, net revenue from our enterprise operations of MXN 1.2 billion, which accounted for around 10% of our cable revenue fell by 4.2% year-on-year. Due to the timing of revenue recognition of an important contract signing in the fourth quarter of 2025 and because of tough comps.

Moving on to Sky's operating and financial performance. During the fourth quarter, we lost 304,000 revenue-generating units, mostly coming from prepaid subscribers that had not been recharging their services. In addition, beginning in the second quarter, we started to charge an installation fee of MXN 1,250 to all new satellite pay-TV subscribers to increase the return on investments on this service. This translated into a slowdown of video gross additions for Sky that has been steady over the last three quarters. Sky's fourth quarter revenue of MXN 2.8 billion declined by 16.8% year-on-year, mainly driven by a lower subscriber base.

To sum up, segment revenue of MXN 14.5 billion fell by 4.5% year-on-year, while operating segment income of MXN 5.9 billion increased by 6.1%, making it the best quarter of the year driven by efficiency measures that we have been implementing and synergies from the ongoing integration between Izzi and Sky. Our operating segment income margin of 40.9% expanded by 410 basis points year-on-year.

Regarding CapEx deployment, our total investment of MXN 4.6 billion accounted for 31.8% of sales in the fourth quarter. During the year, our CapEx deployment of MXN 12 billion, equivalent to $645 million, or 20.7% of sales. The main reason behind having a higher total investment relative to our 2025 CapEx budget of around $600 million was the strong-than-expected Mexican pesos, particularly during the second half of the year and the fact that around 50% of our CapEx budget is in local currency.

Finally, operating cash flow for Cable and Sky, which is equivalent to EBITDA minus CapEx was MXN 1.3 billion in the fourth quarter, representing 9.1% of sales. For 2026, our CapEx to sales ratio should be close to 25% as we plan to upgrade 6 million homes to fiber-to-the-home technology, increase our subscriber base and support growth. This basically means that we expect to end 2026 with 75% of our total footprint passed with FTTH technology.

Thank you, Valim. You're doing a great job. Now let me walk you through TelevisaUnivision's 2025 results released on Tuesday morning. As expected, the company's full year revenue fell by 5% year-on-year to $4.8 billion, while adjusted EBITDA of $1.6 billion, increased by 2%. Excluding political advertising and FX volatility, adjusted EBITDA increased by a healthy 7% year-on-year, underscoring the scalability of a profitable DTC business and the sustained impact of the cost reduction initiatives launched at the end of 2024.

Turning to the fourth quarter. Revenues of $1.3 billion declined by 2% year-on-year, while adjusted EBITDA of $396 million fell by 12%. Excluding political advertising, total revenue grew by 1% year-on-year, while adjusted EBITDA decreased by 5%, despite continued DTC profitability and continued cost management.

Moving on to the details of our revenue performance. During the quarter, consolidated advertising revenue was flat year-on-year. In the U.S., advertising revenue was 11% lower as continued growth in ViX and higher pricing were more than offset by declines in linear advertising due to secular softness and political spending relative to the prior year due to the absence of U.S. presidential election cycle.

Excluding political advertising, advertising revenue in the U.S. fell by 3%. In Mexico, advertising revenue increased by 15% year-on-year, driven by the strong ViX growth and a resilient linear business, including private sector advertising. In local currency, advertising revenue in Mexico grew by 6%.

During the quarter, consolidated subscription and licensing revenue decreased by 4% year-on-year. Continued growth in ViX across both the United States and Mexico along with higher U.S. linear subscription and licensing revenue, including benefits from our new Hulu agreement and higher content licensing, more than offset the loss of Fubo, the temporary YouTube TV carriage dispute and ongoing net subscriber declines.

However, these increases were more than offset by lower linear subscription revenue in Mexico due to the renewal cycle with Izzi Sky and the cancellation of another distribution company, which we have already lapped.

Moving on to the balance sheet. TelevisaUnivision ended 2025 with $440 million in cash, an increase of 33% compared to the previous year. Total CapEx investments were $119 million for the full year or a year-on-year increase of 4%.

We expect CapEx deployment to remain at similar levels in 2026. Speaking about the 2026 World Cup, it represents a great opportunity both for Grupo Televisa and TelevisaUnivision, and we are approaching it with a fully integrated strategy across broadcast, streaming, digital and social. Our goal is to deliver comprehensive coverage with flawless execution, while maximizing the commercial impact across platforms.

In Mexico, ViX will become the official home of the World Cup, making ViX the exclusive streaming destination for all 104 matches available at a preferential price for customers of Izzi and Sky.

ViX premium annual subscribers will get access included while ViX's monthly subscribers and the customers of Izzi and Sky will have the option to add on World Cup coverage.

Finally, considering several opportunities in the telecom sector in Mexico that we're currently exploring, our Board of Directors approved suspending the payment of our regular dividend in 2026. This will be presented for approval at our Annual Shareholders' Meeting.

To wrap up, Bernardo and I are confident that our focus on value customers, efficiencies and ongoing integration between Izzi and Sky at Grupo Televisa and further integration and operational optimization at TelevisaUnivision now that our DTC business represents over 20% of consolidated revenue and adjusted EBITDA, will allow us to create greater value for our shareholders in 2026.

Now we're ready to take your questions. Elsa, could you please provide instructions for the Q&A?

[Operator Instructions] The first question today comes from Marcelo Santos with JPMorgan.

I have two. The first is for Valim. Could you please walk us through the fiber plan, how many homes with fiber-to-the-home do you have today? I mean, is this goal -- what is the goal exactly, if you could repeat? And is it for the end of 2026? So just wanted to get a bit more color on this plan. And the second question is about the competitive environment. How has been like the room to increase prices? Could you make some comments on how the market is going?

Thank you, Marcelo. Valim, please.

Thank you, Marcelo. So I think that the fiber deployment is we're already at 9 million homes with fiber today, and planning to get to 15 million, 16 million by the end of 2026. So that would mean 75% of our existing network would be fiber-based. So that is on plan and on target.

Regarding the competitive environment in Mexico, I think it's important to emphasize that we have been increasing ARPU consistently over the last several quarters. So it's due to price increases, mostly is due to more products to more -- to our existing customers and better and better services. So that's what we decide.

We see that our alternative players, their flat or declining ARPU as opposed to ours, which is increasing constantly. And that's the route we are taking, not so much on price increases, but enable to sell more to the existing clients. And so the competitive environment in Mexico has been very stable over the last 2, 3 years, basically. And what we have been doing also consistently is focusing on high-value clients that will churn less and value our services and be able to acquire more services from us. That's the strategy moving forward.

Pretty much a rational competitive environment.

Great. Just a follow-up on the first answer. When you mentioned the 9 million today and to 15 million to 16 million, this is really like fiber-to-the-home where there's no cable involved anymore, like it's fiber box in the home? Or is it like more fiber to the curb, but there is still a cable.

No. Marcelo, fiber is still a cable. It's just a different cable.

HFC, sorry.

Yes, I understand what you're saying. And just couldn't a point the joke. So it's just, yes, we will have fiber to the home on 15 million, 16 million homes by the end of the year. So if acquired, actually, nowadays, when the network is deployed, there are no deployments in HRC. So we still have a percentage of our deployments are in HRC because we are not with the full coverage. But as we grow our subscriber -- our fiber network, every new subscriber goes into fiber, and we migrate them as conditions are needed into fiber. So in a few years, all of our clients will not only be under a fiber network infrastructure, but also be connected to our fiber network.

The next question comes from Matthew Harrigan with Benchmark.

You're kind of almost uniquely exposed to AI positively on the telecom side, given all the repetitive processes and consumer-facing kind of customer journey experiences. And then on the media side with your JV, I think you're -- I know you're obviously the largest volume producer of Spanish programming in the world, and you may even be #1 overall. You had a lot of dislocation in the U.S. media names a few weeks ago on account of 20. And I was just curious, what's your broad perspective on how AI affects you both on the blocking and tackling side on telecom and then on the creative side on TelevisaUnivision, both with respect to your in-house content creation being even faster and more short form and then more competition you might face on people and companies aren't nearly as well funded as you.

Thank you, Matthew. A very interesting question. I'll answer the media side and then Valim can take the telecom side. On the media side, we're experimenting with AI and production through AI. It's a very important tool. So in terms of script driving in terms of production itself, it is very useful. So we're experimenting especially. We launched last year our micronovelas on the short form. We produced -- we started producing last year this type of content. This year, we will produce more than 300 micronovela. And some of them are produced 100% with AI. So we're moving in that direction, moving I mean, using AI more and more, which will become a very efficient way of producing content.

In telecom, AI is mostly useful in how we handle our customer and how we operate our network. And as we speak, we are in very challenging and deep changes into the organization, making sure we have AI all over, meaning from the network usage to the client interface. So in the next few months, we're seeing significant impacts on how we interact with customers focusing on basically 100% AI. So 2026 will be the year we'll flip from a typical call center kind of a thing to full AI, everything AI in terms of customer relationship. So this is the year that will go from a typical telephone to an AI-based telecom operator.

Great. It feels like even with some pretty straightforward kind of enterprise AI applications, you're in a great place without being too fans on the value LM models.

And sorry, just to complement on that, we are operating with the large guys, which is the typical Oracle, Salesforce, AWS kind of guys. So we have a clear path and we're working with the right guys to be able to achieve it.

The next question comes from Ernesto Gonzalez with Morgan Stanley.

It's on the opportunities you're exploring in Mexico Telecom. Just wanted to see if you can comment a little bit on whether these opportunities are in the fixed market or on the mobile market or any additional color you can give? And on the residential or your operations in Mexico, operating segment income was really strong in the fourth quarter. How sustainable is this margin level?

Well, yes, we are actively exploring opportunities in the telecommunications sector. But unfortunately, we cannot comment on specifics or at this point, share more information. Hopefully, we can get those to materialize. There's no guarantee, of course, that they will we'll be in touch as those -- as we make progress as to those.

And as to your second question, Valim?

We keep on optimizing our operations like we were just discussing a few moments ago, try to make sure our systems are more AI-oriented in order to make our processes more efficient, not only from a customer facing perspective, in other words, the clients see and understand that we are closer to them and providing better service, but also the flip side to that discussion is that it would allow us to have a lower cost base. All in all in the service of our clients. So yes, we keep on pursuing increasing operating cash flow.

The next question comes from Alejandro Azar with GBM.

Third one is on your comment, Valim, of the 25% CapEx to sales for 2026. Is that on the telecom service or it's telecom enterprise or it's the full telecom enterprise satellite? Should we think 25% of consolidated Televisa?

And my second question is also on -- relative to Sky. With the rate of the connections that we have had in the last couple of years. And if this continue, it becomes really tough for Televisa at the consolidated level, at least on the EBITDA side to show growth. I'm just wondering if you guys can give us more color of how you see Sky going forward, if there is a level where you see these connections or your total clients might normalize?

Okay. That's a great question. I think that the CapEx discussion is up to 25%. It comprises everything. Izzi Sky and Bestel, our B2B, our DTH and our cable fiber business. So that comprises it all. With regards to Sky, I think there is just misperception of what Sky really is. used to be a great business, all over the world, DTH represented a great business. But in all markets, what has happened is with the advancement of the networks, the FIC networks, Obviously, the connections are better and a lot of the streaming are also competing with that. So you see Internet plus the first streaming that doesn't allow much room for a DTH platform to keep on growing.

So our plan is basically to make sure that we have the lowest possible cost at the Sky, meaning it's revenues minus variable cost, programming costs, minus the satellite and conditional access. Other than that, it's a cash flow generating business. So we don't expect it to stop or to normalize or level at any point. And I don't think that's something that people have seen anywhere else given the conditions that I have just described.

So as you segregate that segment, Sky and its direct costs, which is -- which are the only costs that they basically have. And so everything else is our B2B and our B2C business. So I think that's the way you should approach this market as opposed to this is an overall thing and our revenue was declining. Yes, our DTH revenue is declining as expected. And what we did is streamline the DTH business. So keeps on generating cash and will be generating cash for the foreseeable future.

And we have a business that is long lasting, which is our direct-to-consumer and B2B businesses.

One more, if I may, and this is just to remind us all, when do you have to pay the transaction of Sky?

It's 2027 or 2028.

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Angoitia for any closing remarks.

Well, thank you very much for participating. Give us a call if you have any additional questions. Have a great weekend.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good morning, everyone, and welcome to Grupo Televisa's Third Quarter 2025 Conference Call. Before we begin, I would like to draw your attention to the press release, which explains the use of forward-looking statements and applies to everything discussed in today's call and in the earnings release. Please note, this event is being recorded.

I would now like to turn the call over to Mr. Alfonso de Angoitia, Co-Chief Executive Officer of Grupo Televisa. Please go ahead.

Thank you, Elsa. Good morning, everyone, and thank you for joining us. With me today are Francisco Valim, CEO of Cable and Sky and Carlos Phillips, CFO of Grupo Televisa. Before discussing our third quarter operating and financial performance, let me share with you what we believe are the key milestones achieved this year, both at Grupo Televisa and TelevisaUnivision.

At Grupo Televisa, let me touch on 4 major achievements. First, our strategy to focus on attracting and retaining value customers in cable has allowed us to grow our Internet subscriber base in the first 9 months of the year compared to the end of 2024. Second, we keep executing on implementation of OpEx efficiencies and the integration between Izzi and Sky to extract further synergies. This has already contributed to expanding our consolidated operating segment income margin by 100 basis points in the first 9 months of the year to 38.2% driven by year-on-year OpEx reduction of around 7%.

Third, we continue to keep a disciplined CapEx deployment approach to focus on free cash flow generation. So far this year, we have invested MXN 7.5 billion in CapEx, which is equivalent to 16.8% of sales. In the fourth quarter, CapEx deployment should remain at similar levels to those of the third quarter. Still, our CapEx budget of $600 million for 2025 implies a reasonable CapEx to sales ratio of less than 20% for the full year. We have been able to achieve this mainly because we have had successful negotiations with suppliers, resulting in more favorable terms.

And fourth, during the first 9 months of the year, we have generated around MXN 4.2 billion in free cash flow, allowing us to prepay a bank loan due in 2026 with a principal amount of around MXN 2.7 billion. This debt repayment comes on top of the $220 million principal amount of our senior notes already paid on March 18. Additionally, at the end of the third quarter, Grupo Televisa's leverage ratio of 2.1x EBITDA compared to 2.5x at the end of last year, mainly driven by our free cash flow generation.

And at TelevisaUnivision, I will mention 3 key milestones. First, engagement and growth for ViX remains solid with strong momentum across both our free and premium tiers. Moreover, the Gold Cup semifinals and final and the compelling entertainment in sports slate that included the third season of La casa de los famosos, Mexico and our broadcast of Liga MX and the NFL helped drive a high single-digit increase in MAUs and robust demand for advertisers and ViX.

Second, the efficiency plan to reduce operating expenses at TelevisaUnivision by over $400 million in 2025 is delivering outstanding results. In the first 9 months of the year, our total operating expenses have declined by around 12% year-on-year for total savings of around $300 million. This shows a disciplined execution of our cost savings initiatives, including lower content, technology and marketing costs and the normalization of our DTC related investments.

And third, looking at TelevisaUnivision's leverage and debt profile, the company ended the quarter at 5.5x EBITDA an improvement from 5.9x in the fourth quarter of 2024, driven by growth. Moreover, so far this year, TelevisaUnivision successfully refinanced $2.3 billion of debt. As discussed in our second quarter earnings conference call, the company successfully issued $1.5 billion of new 2032 senior secured notes and refinanced over $760 million of term loan A now due in 2030.

In addition, more recently, TelevisaUnivision extended its $500 million revolving credit facility and its $400 million accounts receivable facility. These transactions strengthened TelevisaUnivision's balance sheet, enhanced its liquidity and extended its maturity profile with its nearest maturity now almost 3 years away. Deleveraging remains a core strategic priority for TelevisaUnivision and management remains committed to further strengthening the capital structure of the company over the coming quarters. Having said that, let me turn the call over to Valim as he will discuss the operating and financial performance of our consolidated assets.

Thank you, Alfonso. Good morning, everyone. As Alfonso mentioned, we had an excellent quarter in this third quarter. First, let me walk you through the operating and financial performance of our cable operations. We ended September with a network of almost 20 million homes after passing around 20,000 new homes during the quarter. Our monthly churn rate has remained below our historical average of 2% for 2 consecutive quarters as we continue to execute our strategy to focus on value customers while working on customers' retention and satisfaction. Our broadband gross adds continues to improve on a sequential basis, allowing us to deliver 22,000 net adds during the third quarter compared to net adds of around 6,000 in the second quarter and disconnections of about 6,000 in the first quarter.

In video, we also experienced a strong gross adds than in the first 2 quarters of the year and managed to reduce churn. Therefore, we lost about 43,000 video subscribers during the third quarter compared to 53,000 cancellations in the second quarter and 73,000 disconnections in the first quarter of the year. Moreover, we expect the improving trends to continue going forward, influenced by our recently announced multiyear partnership with Formula 1 to provide live coverage of all Grand Prix via Sky Sports channels available through Izzi and Sky. Beginning in the fourth quarter of this year until 2028 season, Formula 1 is the one of the fastest-growing and most passionate sports events in Mexico and around the world, and we definitely see this as a competitive advantage relative to our peers.

Moving to mobile. Our net adds of 94,000 subscribers during the quarter continued to gain momentum, beating the 83,000 net adds of the second quarter and doubling those of the first quarter. Our innovative MVNO service developed by ZTE, offering enhanced user experience is already making our bundles more competitive and allowing us to increase our share of wallet from our existing customers. During the quarter, net revenues from our residential operations of MXN 10.6 billion, which accounted for around 91% of total cable revenue decreased by only 0.7% year-on-year. This marked the best quarter of the last 2 years at our residential operations from the revenue growth performance standpoint and compares well to a decline of 3% in the first half of the year. On a sequential basis, net revenue from our residential operations grew by 0.4%, potentially signaling an ongoing gradual recovery.

During the quarter, revenue from our enterprise operations of MXN 1.1 billion, which accounted for around 9% of our cable revenue increased by 7.7% year-on-year. This also marks the best quarter of the last 3 years of our enterprise operations from a revenue growth performance standpoint and compares favorably to growth of 3% in the second quarter and a decline of 4.5% in the first quarter of this year.

Moving on to Sky's operating and financial performance. During the third quarter, we lost 329,000 revenue-generating units, mostly coming from prepaid subscribers that have not been recharging their services. In addition, beginning in the second quarter, we started to charge an installation fee of MXN 1,250 to all satellite pay TV subscribers to increase the return on investment for this service. This translated into a slowdown of video gross additions for Sky that has been steady over the last 2 quarters. Sky's second quarter revenue of MXN 3.1 billion declined by 18.2% year-on-year mainly driven by a lower subscriber base.

To sum up, segment revenue of MXN 14.7 billion fell by 4.4% year-on-year, while operating segment income of MXN 5.7 billion declined by only 0.7%, making it the best quarter of the year as we appear to be very close to reaching operating segment income stabilization. Our operating segment income margin of 38.5% extended by 140 basis points year-on-year, mainly driven by the efficiency measures that we have been implementing and synergies from the ongoing integration between Izzi and Sky.

Regarding CapEx deployment, our total investment of MXN 3.6 billion account for 24.3% of sales during the third quarter. This shows a material sequential increase in CapEx deployment, but it is in line with our updated CapEx budget for 2025 of $600 million. Finally, operating cash flow for Cable and Sky, which is equivalent to EBITDA minus CapEx was MXN 2.1 billion in the third quarter, representing 14.2% of sales.

Thank you, Valim, best quarter of the year indeed. Now let me take you through TelevisaUnivision's third quarter results. The company's third quarter revenue of $1.3 billion declined by 3% year-on-year, while adjusted EBITDA of $460 million increased by 9%. Excluding political advertising, revenue fell by 1% year-on-year, marking a sequential improvement compared to both the first and second quarters of this year. On the other hand, also excluding political advertising, adjusted EBITDA increased by 13% year-on-year, underscoring the scalability of a profitable DTC business and the sustained impact of cost reductions initiatives launched at the end of last year.

Moving on to the details of our revenue performance. During the quarter, consolidated advertising revenue decreased by 6% year-on-year or 3% excluding political advertising expenditure. In the U.S., advertising revenue was 11% lower as growth in ViX continued to partially offset linear declines. Within ViX, the Gold Cup, semifinals and finals helped drive a high single-digit increase in MAUs and robust demand from advertisers.

In Mexico, advertising revenue increased by 3% year-on-year, primarily driven by private and public sector ad sales that powered ARPU growth for ViX. Results this quarter benefited from a compelling entertainment and sports slate that including the performance of the third season of La casa de los famosos Mexico, dramas such as Monteverde and Amanecer and our broadcast of Liga MX and the NFL. During the quarter, consolidated subscription and licensing revenue increased by 3% year-on-year, driven by ViX's premium tier and higher content licensing revenue.

In the U.S., subscription and licensing revenue grew by 11%, supported by ViX and results included a mid-single-digit increase in linear subscription revenue and higher content licensing revenue due to timing of content delivery. In Mexico, subscription and licensing revenue fell by 17%. Excluding the impact of the renewal cycle, subscription and licensing revenue in Mexico grew by 5% driven by ViX.

To wrap up, Bernardo and I remain confident that our focus on value customers, efficiencies and ongoing integration between Izzi and Sky at Grupo Televisa and further integration and operational optimization at the TelevisaUnivision now that our DTC business has gained scale and achieved profitability will allow us to create greater value for our shareholders throughout this year.

Now we are ready to take your questions. Operator, could you please provide instructions for the Q&A.

[Operator Instructions] Our first question comes from Marcelo dos Santos with JPMorgan.

The first question is if you could comment a bit the CapEx outlook for 2026. How do you see this trending? And the second question is regarding the insurance claim you received. Was that related to Hurricane Otis? And is there something left to be received?

Thank you, Marcelo. I'll ask Valim to answer both questions.

We gave -- Marcelo, we gave a guidance of around $600 million, and we should be within that range. Regarding the insurance claim, I think that's the last portion of the claim on the Otis Acapulco situation. So we shouldn't be seeing anything more from that event.

Valim, just one question. The CapEx for 2026, so for next year you're...

2026, no 2026 is so far away, Marcelo. No, no, no.

Let's finish 2025, then we can talk about '26.

Our next question comes from Matthew Harrigan with Benchmark.

You've actually reached a point in the U.S. when you look at the entire TV industry, there's more consumption on streaming than on linear. And I know your linear is much more durable than your English language peers. But you've got tremendous local programming positions, particularly in news and some of the largest U.S. EMAs. Are you really taking a lot of our -- hopefully, eventually almost all the news content on local stations and the distinctive content on the local stations and moving that to ViX over time because it feels like it would be a shame to lose the local identity. You have those stations because eventually, linear is going to fall off even for Hispanic audiences.

And then secondly, clearly, a very dynamic situation in the U.S. and Mexico right now. Are you doing anything more on the BC side in relation to advertising for investments? And also, I can't help but ask, what's your general perspective on the U.S. and the imaginations with the administration on the tariff side and the prospects for near-shoring and everything going on. I know this is kind of ridiculously open-ended question. But just any thoughts on the stability of the economic relationship with the U.S.

Yes. Thank you, Matthew, for your questions. I think, as to your first one, local news is very important for us. We are very strong in the local places where we produce news and local programming. We are exploring the possibility of including that in our streaming platform. We haven't yet included all of that content, but we're exploring that. The good thing is that, as I was saying, the local content is very strong. So very popular.

As to your second question, we have made media for equity deals with great companies with great startups. We have assembled a great portfolio, I would say, and more companies are coming to us as they realize the importance of our platforms. And this is because of the strength of our platforms, we can position and grow their products and especially their brands when they're launching.

Companies like Kavak, like Rappi, have become our ambassadors. At the beginning, we had doubts about the strength of linear television and most specifically in Mexico. But now they have become ambassadors of ours. We will continue to do these deals as we generate value with unsold inventory. And these companies become regular clients. So it's basically a funnel for these start-ups to grow, to position their brands, to position their products. And we take equity, which is great at very good valuations, and then they become regular clients and this is basically unsold inventory. So we're very happy with the portfolio we have been able to put together, and we'll continue to do this.

As to your last question, I think that the Mexican government President, Sheinbaum has done an extraordinary job in dealing with the negotiations, the trade negotiations. I think that Mexico and the U.S. are key partners. If you look at the border region, it's one of the largest economies in the world by itself. The border, the legal border crossings that happened every day are in the millions. So I mean it's an integrated region. It's an integrated economy. So I believe that eventually, we'll be able to get to the right deal for Mexico and for the U.S.

Our next question comes from Alex Azar with GBM.

Few ones on competition, Valim, on cable. If you can share a little bit of color on short-term and medium-term dynamics, especially when seeing how competitors are adding 1 million, 1.5 million net adds per year. It seems that in 2, 3 years, the market is going to be fully penetrated. So that would be my first question. And the second one is on Sky. With the levels of net disconnections you have year after year, how should we think about the EBITDA contribution in the next couple of years from Sky?

Thank you, Alex. Valim?

Thank you, Alfonso. Well, I agree 100% with you. With this amount of net adds on a yearly basis, the market is very close to being fully penetrated. That's why our strategy is not going after volume because we know that we will be fighting for prices at the lower end of the pyramid. So our aim is to focus on the higher-end clients. That's why we have -- we are the only company in Mexico increasing ARPU consistently across the board. So I think that's the focus. So we think there's obviously a diminishing returns of this fight for the volumes of subscribers. And that's why our strategy moved away from that, and we have been successful in doing that.

Regarding Sky, Alex, the way I see Sky is very straightforward. This is a business that will eventually disappear. Why? The penetration of the fiber networks and the amount of OTTs and the availability of a linear TV through cable and fiber operators is something that will obviously position Sky to only subscribers that are outside of those covered areas. So it will by definition then keep on declining.

So how we perceive it, we perceive it as a cash flow from existing subscribers minus the programming cost, minus the technological cost of the satellite and all that is involved in that and then it generates a positive cash flow. That's the business and it has been generating positive cash flow and for the foreseeable future, we'll see positive contribution from Sky as a cash flow perspective. Obviously, it has this negative optics on our revenue, but just the way we see it is we've kind of segregate that from everything else and see that as an inflow of cash flow and everything else is more a stable growing businesses.

Yes. And to add to your first question, to add on what Valim was saying, in Mexico, we have a 4-player market, but it's a pretty rational market, except for Telmex, which has kept its entry price unchanged for, I guess, more than 10 years, while also increasing Internet speeds and offering Netflix now for 3 -- for 6 months. They don't seem to be really interested in the profitability of Telmex as they extract value from the lease of fiber owned by other subsidiaries of theirs. And the other Megacable raised prices by around MXN 30 per month from the beginning of the year. So there, you can see that the industry is raising prices, except for Telmex. Totalplay also announced price hikes from April particularly from broadband customers that are heavy data users. So even though it's a 4-player market, it's a rational market and if you look at the prices and ARPU, we feel comfortable, and we feel confident that this will remain like that.

If I can just add a follow-up on Sky remarks. When you say Sky probably will disappear. I'm just thinking that there must be some part of the population that where fiber is not around, and they -- if Sky becomes the only thing that they can use, especially for video. Do you guys have an approximate of that? I don't know.

No, you're absolutely right. I mean there are rural areas where a satellite provider makes sense. I don't know.

No, I don't think they will disappear per se. It's obviously a diminishing volume like we have been seeing and we'll keep on seeing. But just to give an example, in Central America, we have close to 100,000 subscribers basically flat because in those areas, there are less competitors offering a fiber network or a cable network. And it is very stable. And like Mexico, where we are all deploying network and expanding our infrastructure. So yes, I don't think it will disappear, not just there will be a day that will be just shut down. I think it will still have -- and I think there are just several hundred thousand people living in areas where there's no other option for entertainment and Sky will keep on being a solution. But that's why we don't see this as a -- I understand some people see this as a problem. We actually see this as an upside given the fact that we're generating positive cash flow.

Yes. I think Valim is absolutely right. We see Sky as a cash flow. And the more we extend, we prolong the life of the subscribers, it's going to be an amazing driver for our cash flow.

Our next question comes from Ernesto Gonzalez with Morgan Stanley.

Look, I know it's early but going back to the discussion on broadband penetration in Mexico. Do you have any -- or can you share any expectations for cable growth rates next -- sorry, next year? Do you believe that you can accelerate growth for the unit. And the second question is on the sustainability of margins for Cable Sky but also TelevisaUnivision. They were strong in the third quarter. So I wanted to get a sense of how much more room they have to grow going forward.

Well, I think that -- back to your point Ernesto, I think that it's key to understand that obviously, as penetrations go higher, the level of net adds will diminish for every player in the market. And you have already saw that. As you see quarter after quarter after quarter, we already see a diminishing number of net adds being added to the different players. So that's a diminishing return in other countries like Brazil, for example, where the penetration is significantly higher even than Mexico. You see there's this dynamic as well and companies find ways by selling more products to the same existing customers to keep revenues growing but obviously, you're not going to be seeing high double-digit numbers because of the dynamic of the market.

So like Alfonso just said, this is a very rational market. Nobody is flashing, prep is down. The promotions are very reasonable. And everybody is actually making money in this market like our cash flow generation that we have just presented. This is significantly -- is very significant. So I think that's a dynamic in mature market that you'll see. And what happens is you add more products, better products, more speeds and that's how you keep on increasing ARPU. And that's why we think the strategy of going after the high-end customers, they have more disposable income available as opposed to the other end of the pyramid. And I think regarding margins of cable...

No. I think he asked about TU...

No, no, no. The answer is not over.

Okay. Go ahead.

So the idea here is we think that we keep on improving margins. This is an ongoing, never stopping exercise that will go internally. And we find that through many different ways, mostly through technology. Obviously, we still are collecting a few synergies from Sky mostly through technology and improvement in how we provide services and processes. So there is an ongoing effort to increase margins. I'm talking about cable.

Yes. Yes. And about -- I mean, TU amazing margins. I think that was a result of the cost cutting and all that we did in terms of costs and expenses in the fourth quarter of last year, which are being reflected in this year. We believe that we have the highest margins in the industry. And that has to do with that cost cutting, $415 million. And also, it has to do with owning the largest library of content in Spanish in the world, more than 300,000 hours of content. It also has to do with the very efficient way in which we produce content, especially in our studios in Mexico. And that allows us to have these amazing margins. So I think those margins in the mid-30s are sustainable.

This concludes our question and answer session. I Would like to turn the conference back over to Mr. Alfonso de Noriega for any closing remarks.

Well, thank you very much for participating in our call. And if you have any questions, please give us a call. Have a great weekend.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.