Send me real-time posts from this site at my email
Motley Fool

Grupo Televisa, S.A.B (TV) Q3 2020 Earnings Call Transcript

Image source: The Motley Fool.

Grupo Televisa, S.A.B (NYSE: TV)
Q3 2020 Earnings Call
Oct 23, 2020, 10:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning, everyone, and welcome to Grupo Televisa's Third Quarter 2020 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.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Victor. Good morning, everyone and thanks for joining us today.

With me today are Salvi Folch, CEO of Cable; Alex Penna, CEO of Sky; Patricio Wills, Head of Televisa Studios; and our CFO, Carlos Ferreiro.

I will start with our consolidated financial results, followed with the financial results in our Content segment. Then, I will turn it over to Patricio Salvi and Alex. We will then use the time remaining to answer your questions.

The macroeconomic environment continues to be challenging and there is still uncertainty, but we are seeing signs of improvement. At Televisa, we are on our way to returning to normal activities. Cable and Sky have operated at full capacity throughout the year, with administrative and call centers personnel either working from home or rotating in their offices. Our field personnel has continued to work non-stop under strict sanitary conditions to satisfy the needs of our customers for connectivity.

In our Content division, the production of our newscasts continue uninterrupted, and we resumed full production of non-news content. We are currently producing six dramas, three realities, and three daily shows. At our [Indecipherable] production facilities, our 16 sets are operating at full capacity under strict sanitary conditions.

In spite of the difficult circumstances, Bernardo and I are encouraged by the milestones achieved by our Cable and Sky operations and the improving trends in our Content division during the quarter. In Cable, we added 448,000 revenue generating units or RGUs, the second highest pace of organic growth on record. Year-to-date, Cable has added 1.2 million RGUs, a year-over-year growth of 10.6%. Most importantly, half of the net additions have been in broadband. Sky added video customers for the sixth consecutive quarter and a record 92,000 broadband customers. With a combined total of 8.1 million RGUs, Sky closed the quarter with the highest number of RGUs on record.

In Content, our productions continue to work very well with our audiences both in Mexico and in the United States through Univision. Our flagship network delivered a year-over-year growth in weekday ratings of 30% during prime time. On the other hand, our Other Businesses segment continued to be significantly affected by the lock-up. Our gaming sites, the points of sale of our magazines, our stadium and the movie theaters were all closed or partially closed. This all relates to COVID and the impact should reverse as soon as we have a full opening of the economy. We have already seen that this is starting to happen.

Let me now address our consolidated third quarter results. Revenues were down 7.1% reaching MXN23.9 billion, and operating segment income was down 1.7%, reaching MXN10.5 billion. Excluding the results of our Other Businesses segment, which has been materially impacted by COVID, as I mentioned, the combined revenue of our three core operations, Content, Cable, and Sky was relatively flat and the combined operating segment income was up by 5.3%. We think this is a great result considering the very difficult circumstances we experienced.

As we mentioned in the previous call, in response to the impact of COVID, we implemented a comprehensive cost and expense reduction program across our organization. This was a massive effort by everyone at the Company, which meant restructuring a number of areas, renegotiating contracts and learning to do things differently so that we could protect our margins. We put together a task force, which Bernardo and I set, to implement and enforce the cost reductions.

In the case of our Content operation, we are on track to deliver savings of approximately MXN2.1 billion for the full year, when compared to 2019. Along these lines, during the third quarter, Content cost and expenses were lower by MXN808 million. This made it possible for us to deliver a strong operating segment income growth of 5.9% and a margin of 41%.

In our Cable and Sky operations, we also implemented many measures to eliminate redundancies and become leaner and more efficient. These initiatives allowed us to deliver an operating segment income margin of more than 40% in all three core businesses; Cable, Sky and Content, and reaching a consolidated operating segment income of almost 41%, the highest since 2016.

Moving onto our Content segment, let me briefly address the financial results. Throughout the quarter, our Content business continued to be impacted by COVID, with revenue down 7.2%, which is an improvement when compared to the second quarter. Advertising revenue was down 13%, but substantially better than the drop of 33% in the second quarter. While government advertising remained weak, we saw a recovery across most categories among our private sector clients. Having said that, some of our clients are still not open for business or are not operating at full capacity, which means that they have reduced their advertising spend substantially. Network subscription revenue was up 7.5%. As in the prior quarter, this growth was mostly driven by a price increase and to a lesser extent by the 14.7% depreciation of the peso and the portion other revenues that are dollar denominated. Finally, licensing and syndication revenue was down by 3.7% when compared to last year. Univision royalties reached $92 million or 8.1% lower than the same quarter last year, but 15.6% higher than the prior quarter. The balance of this line item, mostly exports our Content to the rest of the world, was around 36% lower as most of our clients continue to deal with a slowdown in their own markets. Both these effects were partially compensated by the depreciation of the peso.

Let me now turn it over to Patricio Wills, Head of Televisa Studios.

Patricio Wills -- President of Televisa Studios

Thank you, Alfonso. During the quarter, viewership of our nightly news program remains very strong, with more than twice the viewers of our closest competitor. On average of the quarter, the year-over-year growth in weekdays primetime ratings of our flagship network was 30% [Phonetic], while the combined growth of all free-to-air networks was 11%. Also, 19 of the Top 20 shows watched during the weekdays on free-to-air television were submitted [Phonetic] by Televisa. Our dramas and comedies continued breaking records during the call, for example, the finale of our drama, Te doy la vida, was the most watched program for five years across all dayparts. Also, the last episodes of our drama, Rubi, was the most watched programs in the 9:30 PM timeslot since 2016.

In sports, our programming has expanded to cover not only soccer tournaments but also NBA, NFL, and MFB. In the Mexican Soccer League, all of the scheduled games of this season are taking place, and the ratings have been very strong. In the US, the success of our Content continues to be a strong ratings driver and a key differentiator for Univision.

Univision continued to post strong ratings during the third quarter, delivering year-over-year primetime audience growth with a major English language broadcast networks and Telemundo reported audience declines. The Univision network closed the 2019-2020 season as the fastest growing family of TV networks with 8% year-over-year growth in primetime ratings.

Univision featured [Phonetic] network, UniMas was the fastest-growing major broadcast network during the 2019-2020 season, with double-digit year-over-year audience growth in primetime among all key demographics. Also, Univision has seen the benefit of the return of live events and sports. Live soccer returned in July with a new Liga MX season, and the conclusion of the Champions League season [Indecipherable].

And now during the quarter, Univision continued to see improvement in advertising revenue and stability in distribution revenues.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Patricio. Before turning it over to Salvi, I would like to mention that we are extremely happy with the relationship we have developed with Wade Davis, the next CEO of Univision; and Eric Zinterhofer from Searchlight Capital, who leads the Investor Group that is buying Univision from the current partners. We have a very clear vision for Univision, which Bernardo and I share. Over the last few months, Univision has made significant progress on many fronts. They undertook a massive cost and expense reduction plan, very similar to ours. They renewed their affiliation agreements, with six of the top seven paid television distributors. They also entered into a series of refinancing transactions to extend the maturity profile, and made many programming changes that have allowed them to make better use of our content and deliver ratings growth and regain leadership. We are ready to implement together with Eric and Wade, a series of transformational initiatives, as soon as the transaction closes. You will see very soon, a very different Univision.

Now, let me turn it over to Salvi Folch, CEO of Cable.

Salvi Folch Viadero -- Chief Executive Officer of Cable

Thank you, Alfonso. During the third quarter, we were able to deliver strong operating and financial results. Total RGUs reached 13.9 million, after adding 448,000 RGUs. Net broadband additions were 234,000. This is the second fastest pace of growth for a quarter on record. Data usage among our customers remained strong, at close to 300 gigs per month. With the important investments we have made over time, our solid and reliable network has had the capacity to satisfy this increasing demand.

Social distancing measures have increased the demand for broadband services, including larger uplink and downlink data requirements for our customer base. DSL is a significant technological disadvantage in this front, especially in uplink speed, and this represents an opportunity for us to continue gaining market share.

According to the telecom regulator, approximately 35% of existing broadband customers in Mexico are still connected via DSL. This continues to present us with a valuable pool of potential broadband customers.

In the quarter, we continued to gain market share in a growing market, which is great news. We also continued adding voice services at a solid pace, with 189,000 new customers in the quarter. As it happens with broadband, we continue to gain market share.

In video, the number of our videos remained flat, at around 4.3 million. There is no doubt, that video is a service that has faced more headwind. We continue to work on strengthening our OTT offer, and including relevant sports content. In this front, during the quarter, we added additional exclusive matches of the Mexican Football League and a weekly NFL game to our Aficionados channel. Additionally, we are deploying our new video set-top-box based on Android TV technology.

Our funding strategy continues to deliver great results. Three years ago, less than a third of our customer base was subscribed to a triple play offer. That figure has grown to about 50% of our total customer base at the end of the third quarter.

Finally, in mobile, our MVNO service launched last quarter, we added 26,000 new RGUs during the quarter, reaching 40,000 subscribers. In terms of homes passed, we closed the quarter with approximately 15.7 million. That means that the penetration of our broadband services within our footprint is still low, close to 34%.

Our financial results were also strong. Revenue was up 7.9% reaching MXN11.4 billion, and operating segment income was up 7% reaching MXN4.8 billion. Within our cable operation, revenue in our MSO business grew 6.5%, while our enterprise business growth was strong at 20.6%.

Household income in markets where we operate is under significant pressure. So far, we have not seen an impact on collections, but it's something that we continue to watch very closely. In our enterprise segment, the acceleration in growth is related to some new contracts with large customers, and it's in line with our plans to consolidate the turnaround of this business. Our capital expenditures are being driven, in large majority by the growth in the number of RGUs and in the number of new customers on the enterprise business.

Capital expenditures for our division reached $173 million during the quarter, in line with last year. Given the acceleration of growth, both in the enterprise segment and the higher-than-expected pace of growth in RGUs, in our MSO business, we estimate that our capital expenditures for 2020 will be approximately $650 million, which is lower than the capex that we had last year.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Salvi. Great results. Now, let me turn it over to Alex Penna, CEO of Sky.

Alexandre Penna -- Chief Executive Officer of SKY

Thank you, Alfonso. During the quarter, we remain very focused on satisfying the needs of our existing and new customers, and these resulted in continued growth in the number of video and broadband customers.

Our video subscriber base remained healthy, adding 15,000 during the quarter. It has now been six consecutive quarters that Sky has added video customers. Collections among our video customer base was strong, and those in prepaid plans are recharging their services at a slightly faster pace than before.

Our broadband RGUs continued growing steadily, adding 92,000 in the quarter, reaching close to 600,000. The success of our broadband offer confirms the strength of our brand, the efficacy of our operations and the loyalty of around 7.5 million video customers. As of the third quarter, we closed with combined 8.1 million video and broadband RGUs, which is the highest number on record for Sky. In terms of revenue, it grew 4.9% to MXN5.6 billion. This is now the fastest base of revenue growth in 15 quarters.

Operating segment income reached MXN2.4 billion and the margin was 43.5%. Our capital expenditures reached $65 million during the quarter. Given the fast pace of adoption of our broadband offer, our capex for 2020 are now estimated to reach $250 million.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Alex. Great results as well.

Moving on, we're happy to report that we maintained our strong balance sheet and closed the quarter with a liquid position of around MXN52 billion. Given the solid performance of Cable and Sky, the improved trends in Content and the gradual reopening of the economy, on October 6, we prepaid our revolving credit facility, which we can reborrow through March of 2022. Even after prepaying the facility, we continue to maintain a strong position of liquidity of approximately MXN37 billion, our net leverage ratio of 2.7 times operating segment income, and we have no significant maturities until 2024. In terms of our capital expenditures, we believe that we will close the year with approximately $950 million. This figure is higher than our previous guidance, but slightly lower than last year.

As Salvi and Alex mentioned just now, capital expenditures are being driven almost entirely by growth. In the case of Cable, year-to-date, we have added more than 1.2 million RGUs. This is equivalent to a year-over-year growth of 10.6%. In Sky, year-over-year, we have added 250,000 RGUs. Both of these metrics have exceeded our expectations and are likely to remain strong through the balance of the year.

In closing, in the third quarter, we continued operating in a very tough and uncertain environment. Bernardo and I focused on day-to-day execution to keep all the businesses running and making sure we delivered on the aggressive and comprehensive cost reduction plan we promised. This was while maintaining morale high. We saw basically the crisis as an opportunity. We remained absolutely focused on delivering results.

The Company continued operating at almost full capacity under the new normal, installing our services from Sky and Cable to an average of 12,000 new customers per day all over the country, translating our newscasts non-stop and generating entertainment for our audience.

Our mantra became execution, execution, execution. We achieved good operating results. In Cable, as Salvi mentioned, we reached close to 14 million RGUs with RGUs expanding at the second highest pace of organic growth on record. In Sky, as Alex mentioned, we added video customers for the sixth consecutive quarter. In total, video and broadband RGUs reached a new record of 8.1 million. In Content, our programming continued delivering solid ratings growth both in Mexico and in the United States. Our flagship network delivered a year-over-year growth in weekday ratings of 30% during primetime. Our content offering is the strongest it has been in over five years. Our sales team is working with our advertising partners every day to reactivate their investments especially during the Christmas season. On the financial side, Cable, Sky, and Content delivered a combined growth in operating segment income of 5.3% and each of those businesses operated with a margin higher than 40%.

With that, I'd like to turn the call over to the operator to take your questions.

Questions and Answers:

Operator

Thank you. [Operator Instructions] And our first question will come from the line of Arturo Langa from Itau BBA. You may begin.

Arturo Langa -- Itau BBA -- Analyst

Hi. Good morning, gentlemen. Thank you for taking my questions. I have two. First is, I would love to hear your thoughts on Disney+ and its arrival in Mexico. I think it's expected to come into the market around November. But just from a broad perspective, and maybe this is for Salvi, how do you see this new competitor coming into the market and impact positively or negatively for the Cable business?

And then second, in the Content division, the cost savings have been pacing ahead of, at least my expectations, but I was wondering these cost savings, how permanent they can be thinking about the MXN2.4 billion you intend to save this year and how we should think about that for 2021? Thank you.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Arturo. Yep, as to Disney+, and Salvi will expand on that, we cannot basically talk about it because we have signed a confidentiality agreement with Disney. However, it's going to be important for us and it's going to be a complementary service for our izzi products. Salvi, can you expand on that, please?

Salvi Folch Viadero -- Chief Executive Officer of Cable

Yeah. Thank you, Alfonso. Well, what I would say is that the way that people is consuming video, it's changing everywhere and the pandemic has only accelerated it. But we are very well positioned to be the place where you can watch OTT content regardless of who the provider is, right? We are now pretty strong on distribution of Netflix in Mexico, for example. For our customer base, it's great that they can watch Netflix on their TV set, because for many people, Netflix was just being used on the their personal device rather than on the TV set. We are very happy with the growth that we have experienced in terms of the use of subscriber VOD. We have Blim, we have Noggin, we have Stars, we have Netflix, Disney, it's going to be an additional service that will be offered to the customer base in Mexico. So rather than just seeing it as a competitor, well, there are ways that we can all benefit, including Disney and us from new entrants in the market, right, because OTTs have been seeing that we can work as a distributor of their own content. So I think that there's great expectation, but we should see this as an opportunity to become aggregators of content.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Yeah. And Arturo, to your second question, we are happy to have exceeded your expectations in terms of the cost and expense reduction program. We have been really focused on delivering what we promised. We committed to MXN2.1 billion on the Content side, and we will get there. As to next year, we have -- we are finalizing our 2021 budget right now. There are cost and expenses that were permanently eliminated as part of the reduction effort. However, there are areas that we're focusing on as sports and entertainment. We didn't have cost related to those. Sports events were canceled this year, and we used reruns in our library even on primetime on our flagship.

Next year, we will hopefully have all the sports events back on a regular basis, including the Olympic games. We will also be producing more than this year, especially for our primetime and for Univision. So specifically, as to those two sports and entertainment, our costs will look more like 2019 than this 2020. However, I mean, as I mentioned, there are many things that we have eliminated on a permanent basis.

Arturo Langa -- Itau BBA -- Analyst

Great. Thank you very much. I appreciate your answer. Thank you.

Operator

And our next question comes from line of Rodrigo Villanueva from Bank of America. You may begin.

Rodrigo Villanueva -- Bank of America Merrill Lynch -- Analyst

Thank you. Good morning. My questions are related to Cable. First, I was wondering, if considering the solid demand for Internet services that you have experienced, are you expecting to raise prices in the near future? And the second question is related to basically your updated thoughts with respect to the potential to see further consolidation of the Cable market in Mexico. Thank you.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Rodrigo. Salvi will answer the first question.

Salvi Folch Viadero -- Chief Executive Officer of Cable

Yeah. Well, I mean, Rodrigo, we did increase prices. We increased prices September 1st of this year, the same as last year. You're right, at the beginning of the year and with the pandemic, we were not sure if we were going to be able to increase prices. But the business has been pretty resilient, especially on the broadband side. Customers have been looking for cheaper packages, right, because their household income has declined. But that's why it's important to compensate on the ARPU with the price increase. So within the industry, I think that we were the first one that decided to do it. Now Megacable have announced that they will increase prices. I don't know about what the others will be doing, But yes, we did increase prices on our different packages, on average, on about 5%. But it's for those that do -- when you buy a package, your price is fixed for the first 12 months. So this does not apply to many of the new customers, but we did increase prices.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

And Rodrigo, to your second question, we have always been open as to our goal or aspiration about having a national cable presence. I think basically you can accomplish that through consolidation or overbuilding. We have those paths going forward, so that's our aspiration, that's our goal. It makes a lot of sense to have a national presence from the synergies perspective, operating nationally, the whole territory having a single brand, etc. So we will continue that path via consolidation or via building in areas where we don't operate.

Rodrigo Villanueva -- Bank of America Merrill Lynch -- Analyst

Understood Alfonso. Thank you very much. Very clear.

Operator

Thank you. Our next question will come from the line of John Belton from Evercore. You may begin. John, your line is open.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

I guess his question might have been answered.

Operator

All right. And our next question will come from the line of Marcelo Santos from J.P. Morgan.

Marcelo Santos -- J.P. Morgan -- Analyst

Hi, good morning. Good morning. Thanks for taking the question. There's actually two. The first is, you were discussing the changing way that people consume video. So could you make some comments on how do you see the video penetration going forward, since users are going more to OTT? Do you think there is room for further expansion? What's the timeframe that we could see, so any comment on there would be very good? And the second question is, with the strategy for the upfront season. So last year the upfront was delayed and it was -- coincided more in the first quarter. Should we see more a normalization this year or because of COVID, should also be a delayed upfront? Any comment there will also be helpful. Thank you.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Marcelo. I'll ask both Salvi and Alex to take your question about video and video penetration. Please go ahead.

Salvi Folch Viadero -- Chief Executive Officer of Cable

Thank you, Marcelo. Well, what I think is that, the video -- the programming of the linear channels in the Mexican market is pretty strong, especially over-the-air channels. As you are aware, Televisa has a lot of relevant content that people want to watch, and it's not only watching it linear, as feed is transmitted, but with the new ways of watching it out home or with the new rights, where they can pause or watch a program whenever they want. I think that what is compelling for customers, is to be able to watch both linear channels and a strong OTT or VOD offer available for them, to see on any device, anywhere, at any time.

The cost of video packages in Mexico is relatively low compared to other markets. So that's why, what we see is that, video remains pretty compelling, and for those that want to consume video-on-demand, anyway they need a broadband connection, so the triple play offer becomes very attractive or double play with Sky, that it's also billing for many of the customers. So, I think that penetration of video, yes, it's facing more headwinds than the other services than especially broadband. But anyway I think that we continue to have a very appealing and strong product.

Marcelo Santos -- J.P. Morgan -- Analyst

Okay, perfect.

Alexandre Penna -- Chief Executive Officer of SKY

And just to compliment a little bit what Salvi just said. In the case of Sky, people can get a better, rich prepaid pay TV offer with roughly 80 channels, for only MXN209, or less than $10 per month. It's very inexpensive entertainment for the whole family. This offer is very compelling, and this explains why it accounts for the majority of our customer base. Also, we made very easy for our customers to skip a payment, if they cannot afford the package in a particular month. On average, our customers recharge their prepaid service about 70% of the time.

So comparing our video offer with the cost of the most popular OTT package in Mexico, which range from $7 to $9 per month, and you also need a solid broadband connection. So OTT alternatives do not have a material price advantage over our paid TV offer. That's why I believe, there is still potential for continue to growing our video subscriber base.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Thank you, Alex. As to your second question, Marcelo, for 2020, we have indeed a delayed upfront. It was a very complicated upfront and very complicated negotiations with the largest client -- well, all clients. We accomplished a lot of things, which got distorted because of COVID, and what has been going on this year. But in general, I would say that, in that -- in those very complicated negotiations, we accomplished increasing prices. We took all the clients to a CPM buying model, which I mean you might be surprised by, but some clients, and including large ones were not buying on a CPM basis, and we also reduced the targets. We had many targets, and it was unmanageable. So that was also a tough negotiation. So, because of the still uncertain environment, we're living -- environment that we're living in, we launched the upfront last week. So for 2021, you will see a more normalized upfront taking place this year, and it will also be a simpler proposal to our customers, a simpler upfront.

Marcelo Santos -- J.P. Morgan -- Analyst

Perfect. Thanks a lot for all the answers.

Operator

Thank you. Our next question will come from the line of Carlos Legarreta from GBM. You may begin.

Carlos Antonio de Legarreta Diaz -- GBM Grupo Bursatil Mexicano -- Analyst

Hi, thank you. Thank you for taking the questions. There're actually two. The first one on Cable. So Salvi, your main competitor was focusing on increasing its fiber footprint, focusing on basically having half of their homes passed with fiber. So all of the 15 or so homes pass that Izzi has, how many of those are rich [Phonetic] with fiber? Thank you.

Salvi Folch Viadero -- Chief Executive Officer of Cable

Yes, thank you. Thank you, Carlos, for your questions. Rich with fiber except 10% of our overall homes passed. However, I don't think that the right way of looking at it is just looking at what it treats with fiber, because if we go fiber to the node, or fiber deep, that it's what we have, then we're at about 60% of our footprint with fiber deep. The technology that we use with DOCSIS 3.01, most of the network being ready for DOCSIS 3.1 allows us to have a good network to be very competitive. One of the main challenges on our market is that ARPUs are low compared to other markets. So, in order to have a good return on investment, we need to charge additional for higher speeds.

So, even in the areas where we have fiber, the [Indecipherable] and the demand of customers is very price sensitive. So, the most sold product is usually among the cheapest offers. So, we're well prepared to compete with the technology. There's going to be additional deployments of fiber coming both from the Content [Phonetic] and from other players that are deploying fiber. But we knew that this was coming, and over time we have prepared and made the investments. And we think that we have good problems to compete and if in any of the places where we are, we need to make changes, investments, reconstructions of the network, well, that's what we have been doing over time to compete frontally.

Carlos Antonio de Legarreta Diaz -- GBM Grupo Bursatil Mexicano -- Analyst

Okay, thanks. So basically, with the current levels of capex, you feel comfortable?

Salvi Folch Viadero -- Chief Executive Officer of Cable

Yes, I mean DOCSIS 3.1 terminal equipment costs, I would say about 80% more than the terminal equipment of DOCSIS 3.0, but DOCSIS 3.0 allows us to give speeds of 200 megs with no problem. If we want to move to speeds higher than that, we would simply change the terminal equipment, and then we will have to decide if there is an installation cost to help us pay for the additional capex that it requires. But we feel that with the capex that we have, we will be able to continue being very competitive.

Carlos Antonio de Legarreta Diaz -- GBM Grupo Bursatil Mexicano -- Analyst

That's very clear. Thank you. And if I may the follow-up on Content, I don't know if Alfonso or Patricio, I read something on the press about relaunch of the content strategy for Blim, the online distribution, if you could talk about a little bit of that [Indecipherable]. Thank you.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Yes, thank you. Thank you, Carlos, for your question. In the case of Blim, we have a hybrid direct-to-consumer platform. We have both direct consumers and also customers carried by both Sky and izzi in their television everywhere apps. It has a VOD offering of 41,000 assets and 35 live television channels, including our sports network, and also kids programming, and that has allowed us to offer an appeal to the entire family. And Televisa has the largest library of content in the world in Spanish, I would say. We have more than 200,000 programming assets. So much of this content will continue to be added to our platform over time.

So one of the advantages of Televisa as being fully integrated media company is that we have access to all content windows. So, we prioritize those windows where we monetize our content more effectively. At this moment, particularly in Mexico, I would say that, the platform continues to be free-to-air television, but we are seeing -- I mean the trends, and we will be migrating to digital in the near future as the market requires.

Blim TV is very well positioned to capture viewers as the adoption of OTT develops a critical mass among our viewer base. We will follow our viewers and migrate, as I was saying, our key content to this platform when it makes sense. Blim is getting good traction, and we'll keep making adjustments to the strategy as the market demands us.

I can say that during the last quarter we had very exciting results. The number of users who viewed content on Blim TV grew year-over-year over 400%, and registered users signing up for the free trial are up 64%. So, year-over-year, we saw the corresponding impact on our overall subscriber numbers.

So, today, we have over a million users, and we are working on our AVOD offer, which we hope will continue to accelerate the pace of growth. We will be announcing our AVOD offer through Blim TV in the early part of 2021. We have seen very strong demand of our content on social media platforms. For example, in a single month, the number of views of our content in Facebook and YouTube exceeds 4 billion views. So this only shows that we have great appetite for our content, and this is a key indicator for us and why we believe that we can monetize this content more effectively through our AVOD products.

Carlos Antonio de Legarreta Diaz -- GBM Grupo Bursatil Mexicano -- Analyst

Thank you for the comments.

Operator

Thank you. And I'm not showing any further questions at this time. I like to turn the call back over to Alfonso for any closing remarks.

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Yeah, well, this concludes our call today. Thank you for joining us. If you have any follow-up questions, please contact our Investor Relations team. And thank you again, have a nice day and stay safe.

Operator

[Operator Closing Remarks]

Duration: 48 minutes

Call participants:

Alfonso de Angoitia Noriega -- Co-Chief Executive Officer

Patricio Wills -- President of Televisa Studios

Salvi Folch Viadero -- Chief Executive Officer of Cable

Alexandre Penna -- Chief Executive Officer of SKY

Arturo Langa -- Itau BBA -- Analyst

Rodrigo Villanueva -- Bank of America Merrill Lynch -- Analyst

Marcelo Santos -- J.P. Morgan -- Analyst

Carlos Antonio de Legarreta Diaz -- GBM Grupo Bursatil Mexicano -- Analyst

More TV analysis

All earnings call transcripts

10 stocks we like better than Grupo Televisa
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Grupo Televisa wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2020

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue