Izzi makes Televisa a company that earns more money from telecommunications services

Grupo Televisa recorded net sales of 18,609.2 million pesos in the first quarter of 2022. Of that money, Izzi Telecom participated with 63% of revenues, becoming as of this year the business division that generates the most resources for its parent company, in so much so that the satellite television segment maneuvers not to decrease any more and content sales, the businesses for which Televisa has historically been identified, also went into the background.

The cable company Izzi Telecom participated with 11,804.5 million pesos in the net sales of Televisa in the period January-March 2022.

Izzi was followed by Sky, with 5,275.7 million pesos, and then the company’s other businesses, which contributed a total of 1,661.1 million pesos in the quarter. And while Izzi’s own revenue rose 1.1% in the first quarter, Sky’s fell 6.2%.

The weight of Izzi Telecom in Televisa’s income began to be noticed from the first quarter of 2019, when that division contributed 40% of sales and increased to 45% in the first quarter of 2021.

Contrary to this is the content business, which went from a contribution of 44% in 2015 to about 9% at the beginning of this year. Sky, for its part, contributed 28% of Televisa’s net sales at the beginning of 2022, although the trend is clearly decreasing since 2017, going from a contribution of 24 to almost 22% in the first quarter of 2021.

Izzi Telecom, Televisa’s fixed telecommunications arm, has had spectacular growth in seven years of presence in the market, going from 5.21 million subscribers at the beginning of 2014, when this new brand began to take shape, to 14.92 million subscriptions at the beginning of 2022, a growth of 186.35% that resulted from a consolidation of several regional Televisa cable companies in Izzi, the purchase of third-party companies in the sector and also from an organic growth of the company itself.

Now, discounting Telmex because that company does not offer a video service in the market, Izzi Telecom has also become the triple play service cable company with the most customers in the sector, surpassing Megacable in volume and revenue, which in turn It closed last March with 10.52 million subscriptions, the second national cable company in the country.

Sky has also grown by 1.08 million subscriptions between 2014 and 2022, but these have been mostly services added to pay television such as Internet and fixed telephony, which are not Sky’s main business, because the company still lost 163,829 users. of video in the first quarter of the year and a total of 175,220 subscriptions in the accounting of triple play plans.

In the same period, from 2014 to the beginning of 2022, Izzi Telecom added 1 million 736,771 net subscriptions to its customer base. Although Sky still has a higher number of video customers than Izzi does, 7.24 million versus 4.25 million for Izzi.

The company Izzi Telecom closed March 2022 with a reach of 18 million homes from its network and boasted a quarterly organic growth of 336,000 revenue-generating units, to already touch 15 million subscriptions.

“Net sales increased 3.3% in the first quarter of 2022. This increase is attributable to the increase in sales of the cable segments. Total net additions for the quarter were more than 336,200 revenue-generating units; we experienced quarterly growth in all services”, said Televisa in its financial report to the Mexican Stock Exchange (BMV).

As for investment, Izzi Telecom has invested 16,244 million pesos in five years, from 2017 to 2021, and its best investment record was in 2021, with 4,781 million pesos, 30.51% more compared to 2020. The company invested from January As of March 2022, a total of 34.1 million dollars, around 695 million pesos.

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