Televisa Merges Izzi and Sky, Gains Profits but Loses Users

Grupo Televisa is in the final phase of integrating its telecommunications businesses, Izzi and Sky. The synergies from this merger have begun to produce substantial financial benefits that will allow the company to finance its acquisition of AT&T's stake in Sky. However, the combined entity faces the ongoing challenge of subscriber churn in a competitive market.

“The cost structure that Sky had has practically disappeared, as well as what we are paying or will pay for the stake we acquired (from AT&T). We have basically compensated for it in the first 12 months of synergies. Everything that Sky generates from now on will go to our business's bottom line,” says Francisco Valim, CEO, Izzi and Sky.

Grupo Televisa’s decision to merge Izzi and Sky responds to a strategic need to consolidate its telecommunications assets to improve operational efficiency and profitability. For more than a year, the company evaluated the future of these verticals in a market increasingly shaped by streaming video on demand (SVOD) platforms. These platforms have caused a gradual shift away from traditional pay-television services.

Acquiring 100% of Sky was a step for Televisa to make unified and agile operational decisions, eliminate redundancies, and align the strategy of both businesses under a single command. Before the merger, Izzi had already begun an internal restructuring process to reduce its workforce and steer the business toward greater profitability.

The financial benefits of the merger are now tangible. According to Grupo Televisa, the union of Izzi and Sky generated a 38.1% increase in profits and a seven percent decrease in operating expenses. These figures were driven mainly by workforce optimization, which included a 20% staff reduction in December 2024, and the consolidation of Customer Service Centers. By the end of 2024, Izzi's savings from these moves totaled nearly US$400 million.

As a direct result, in the 2Q25, Grupo Televisa reported net profits of MX$474.5 million (US$25.3 million), reversing a loss-making trend that had persisted for over a year.

Operationally, questions remain about infrastructure. It has not been specified whether Izzi's cable network will completely absorb operations or if a hybrid model with Sky's satellite infrastructure will be maintained. Meanwhile, Sky continues to see a downward trend in user additions, with 346,600 disconnections in 2Q25. This represented a 16.3% year-over-year revenue decline for that unit. 

The primary future challenge, according to analysts, is to reverse customer losses. Moody's Ratings downgraded Televisa's credit rating to speculative grade in July, citing this trend. The future strategy must focus on creating value packages and offerings that compete effectively with streaming services to stabilize the user base and regain financial market confidence.