New Street Research - GRUPO TELEVISA (TLEVISA) Mexican Cable/FTTH – Capex down, promotions lifting; Buy MEGA; TV/TPLAY (HY)

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New Street Research

Soomit Datta

EUR 9484.00 For Business Accounts Only

Mexican Cable/FTTH – Capex down, promotions lifting; Buy MEGA; TV/TPLAY (HY)

Following TotalPlay and Televisa results at the end of last week, and Megacable the week prior, we highlight key positive conclusions from the Mexican reporting season: 1/ Capex is coming down across the board in Mexico in FY 24 driving an uplift in OpFCF margin for all players, 2/ Lower promotional intensity through YE is helping ARPUs and would be supportive if it holds.

26/02/2024 1 EN

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GRUPO TELEVISA

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

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Soomit Datta

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New Street Research

Mexican Cable/FTTH - Q3 24: MEGA and TPLAY the strongest performers; TV still under pressure

The Mexican fixed market experienced a slight slowdown in revenue and EBITDA trends in Q3 but KPIs remained robust with 423k net additions and continued growth in Broadband penetration.

EUR 9484.00

October 29, 2024 October 29, 2024 1 EN

New Street Research

TV US (Neutral, TP: $3.5,) Televisa Q2 24 - Cost (and maybe capex?) trying to offset very weak cable/DTH top line

Televisa reported Q2’s after close. Trends were broadly as expected, with focus on FCF rather than growing the base, meaning revenue momentum slipped further (-6% y/y from -5% in Q1) on the back of limited broadband adds (in contrast to peers like AMX) as well as a video subs disconnection. Operating segment income improved a touch (still down 8% y/y) and with the prospect of DTH/cable synergies coming through from Q3.

EUR 9484.00

July 24, 2024 July 24, 2024 1 EN

New Street Research

AMX(Buy, TP: $24, +24%) Televisa (Neutral, $3.5, +11%) Megacable (Neutral, MXN55, +9%) Mexican FTTH/Cable - Megacable to Neutral on Valuation, AMX top pick into Investor Day

The market continued to eek out broadband growth in Q1, with Megacable leading the charge. We applaud management’s execution here and the double digit revenue and EBITDA growth, though this now seems embedded in expectations; we think it’s time to close out Megacable stock gains (30% YTD), trading on a 5.5% EFCF yield for 2025. Our target remains MXN55, though we have taken out the probability of cable-cable deal synergies, offset by upgrades following Q1s.

EUR 9484.00

April 30, 2024 April 30, 2024 1 EN

BILI 3Q24 Results: Gaming to Remain Resilient in 4Q

What’s new: Bilibili’s reported 3Q24 results that were above consensus and our expectations partly driven by gaming. Gaming could continue to grow by high-double digit YoY in 4Q partly driven by San Mou. Margins could also further improve in 4Q partly driven by favorable rev mix and continued cost controls. We maintain our PT at USD 25. Analysts: Jin Yoon

31m 31m 1 EN

Jin Yoon

Jin Yoon

NTES 3Q24 Results: PC to Drive Near-Term Gaming Growth

What’s new: NetEase’s reported 3Q24 revs that were largely in-line with consensus estimates. Mobile games could continue to see tougher YoY comps in 4Q, while PC games could remain resilient partly driven by new game launches and contribution from Blizzard games. We maintain our PT at USD90. Analysts: Jin Yoon

32m 32m 1 EN

Jin Yoon

Jin Yoon

JD 3Q24 Results: Outlook Remains Intact

What’s new: JD’s reported 3Q24 revs that were largely in-line with consensus and our estimates, while margins exceed expectations. FY24 outlook remains intact where rev and GMV growth could continue to outpace total retail sales. Non-GAAP net profit could also grow over 20% YoY in FY24 partly driven by continued GM improvement. We maintain our PT at USD70. Analysts: Jin Yoon

33m 33m 1 EN

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Mexican Cable/FTTH – Capex down, promotions lifting; Buy MEGA; TV/TPLAY (HY)

Mexican Cable/FTTH - Q3 24: MEGA and TPLAY the strongest performers; TV still under pressure

TV US (Neutral, TP: $3.5,) Televisa Q2 24 - Cost (and maybe capex?) trying to offset very weak cable/DTH top line

AMX(Buy, TP: $24, +24%) Televisa (Neutral, $3.5, +11%) Megacable (Neutral, MXN55, +9%) Mexican FTTH/Cable - Megacable to Neutral on Valuation, AMX top pick into Investor Day

BILI 3Q24 Results: Gaming to Remain Resilient in 4Q

NTES 3Q24 Results: PC to Drive Near-Term Gaming Growth

JD 3Q24 Results: Outlook Remains Intact

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