Corporate expense decreased by Ps.29.0 million, or 5.0%, to Ps.551.7 million in first-quarter 2018, from Ps.580.7 million in first-quarter 2017.
Share-based compensation expense in first-quarter 2018 and 2017 amounted to Ps.375.8 million and Ps.362.5 million, respectively, and was accounted for as corporate expense. Share-based compensation expense is measured at fair value at the time the equity benefits are conditionally sold to officers and employees, and is recognized over the vesting period.
Other expense, net, decreased by Ps.256.6 million, or 62.5%, to Ps.154.1 million in first-quarter 2018 compared with Ps.410.7 million in first-quarter 2017. This decrease reflected primarily a lower non-recurrent severance expense in connection with the dismissal of personnel, a lower loss on disposition of property and equipment, a lower expense related to donations, as well as a gain on disposition of a 50% equity in Televisa CJ Grand, S.A. de C.V., a joint venture for a home shopping channel in Mexico.
Non-operating Results
Finance Expense, Net
The following table sets forth finance (expense) income, net, stated in millions of Mexican pesos for the quarters ended March 31, 2018 and 2017.
|
1Q 2018
|
1Q 2017
|
(Increase) decrease
|
Interest expense
|
(2,289.2)
|
(2,262.9)
|
(26.3)
|
Interest income
|
304.0
|
260.0
|
44.0
|
Foreign exchange gain, net
|
993.8
|
1,244.7
|
(250.9)
|
Other finance expense, net
|
(1,209.3)
|
(23.5)
|
(1,185.8)
|
Finance expense, net
|
(2,200.7)
|
(781.7)
|
(1,419.0)
|
Finance expense, net, increased by Ps.1,419.0 million to Ps.2,200.7 million for first-quarter 2018 from Ps.781.7 million for first-quarter 2017. This increase primarily reflected (i) a Ps.1,185.8 million increase in other finance expense, net, resulting primarily from a higher loss for changes in fair value of our derivative contracts, in connection with a 7.3% appreciation of the Mexican peso against the U.S. dollar in first-quarter 2018; (ii) a Ps.250.9 million decrease in foreign exchange gain resulting primarily from the effect of a 7.3% appreciation of the Mexican peso against the U.S. dollar on our average net U.S. dollar liability position in first-quarter 2018 compared with a 9.2% appreciation in first-quarter 2017; and (iii) a Ps.26.3 million increase in interest expense, due primarily to an increase in the weighted average effective interest rate applicable to our debt, finance leases and other notes payable in first-quarter 2018. These unfavorable effects were partially offset by a Ps.44.0 million increase in interest income explained primarily by an increase in interest rates applicable to our cash equivalents and temporary investments in first-quarter 2018.
|
|
|
Grupo Televisa
, S.A.B.
|
FIRST-QUARTER 2018
|
5
|
Share of Income of Associates and Joint Ventures, Net
Share of income of associates and joint ventures, net, decreased by Ps.156.6 million, or 59.4%, to Ps.107.1 million in first-quarter 2018, from Ps.263.7 million in first-quarter 2017. This decrease reflected mainly a lower share of income of Univision Holdings, Inc. (“UHI”), the controlling company of Univision Communications Inc.
Income Taxes
Income taxes decreased by Ps.262.3 million, or 32.9%, to Ps.535.7 million in first-quarter 2018 compared with Ps.798.0 million in first-quarter 2017. This decrease reflected primarily a lower income tax base.
Net Income Attributable to Non-controlling Interests
Net income attributable to non-controlling interests decreased by Ps.200.9 million, or 38.8%, to Ps.317.3 million in first-quarter 2018, compared with Ps.518.2 million in first-quarter 2017. This decrease reflected primarily a lower portion of net income attributable to non-controlling interests in our Sky and Cable segments
Other Relevant Information
Capital Expenditures
During first-quarter 2018, capital expenditures were 27% lower than in first-quarter 2017. We invested approximately U.S.$158.7 million in property, plant and equipment as capital expenditures, including approximately U.S.$106.1 million for our Cable segment, U.S.$40.0 million for our Sky segment, and U.S.$12.6 million for our Content and Other Businesses segments.
|
|
|
Grupo Televisa
, S.A.B.
|
FIRST-QUARTER 2018
|
6
|
Debt, Finance Lease Obligations and Other Notes Payable
The following table sets forth our total consolidated debt, finance lease obligations and other finance liabilities as of March 31, 2018 and December 31, 2017. Amounts are stated in millions of Mexican pesos.
|
March 31,
2018
|
December 31, 2017
|
Increase (decrease)
|
Current portion of long-term debt
|
307.0
|
307.0
|
-
|
Long-term debt, net of current portion
|
116,643.1
|
121,993.1
|
(5,350.0)
|
Total debt
1
|
116,950.1
|
122,300.1
|
(5,350.0)
|
Current portion of finance lease obligations
|
566.6
|
580.9
|
(14.3)
|
Long-term finance lease obligations
|
4,610.5
|
5,041.9
|
(431.4)
|
Total finance lease obligations
|
5,177.1
|
5,622.8
|
(445.7)
|
Current portion of other notes payable
|
1,261.7
|
1,178.4
|
83.3
|
Other notes payable, net of current portion
|
1,261.7
|
2,505.6
|
(1,243.9)
|
Total other notes payable
2
|
2,523.4
|
3,684.0
|
(1,160.6)
|
1
As of March 31, 2018 and December 31, 2017, total debt is presented net of finance costs in the amount of Ps.1,226.2 million and Ps.1,250.7 million, respectively, and does not include related accrued interest payable in the amount of Ps.1,669.5 million and Ps.1,796.8 million, respectively.
2
In connection with the acquisition in 2016 of a non-controlling interest in Televisión Internacional, S.A. de C.V., one of our Cable segment subsidiaries.
As of March 31, 2018, our consolidated net debt position (total debt, finance lease obligations and other notes payable, less cash and cash equivalents, temporary investments, and non-current investments in financial instruments) was Ps.73,339.3 million. As of March 31, 2018, the non-current investments in financial instruments amounted to an aggregate of Ps.13,546.4 million.
In March 2018, the Company executed a revolving credit facility with a syndicate of banks, for up to an amount equivalent to U.S.$583 million payable in Mexican pesos, for a three-year term. The funds may be used for the repayment of existing indebtedness and such other general corporate purposes as may be authorized by the Board of Directors of the Company.
|
|
|
Grupo Televisa
, S.A.B.
|
FIRST-QUARTER 2018
|
7
|
Dividend
On April 2018, the Company will present in its annual stockholders meeting the recommendation to pay a dividend of Ps.0.35 per CPO and Ps.0.002991452991
per share of Series “A”, “B”, “D” and “L” Shares not in the form of a CPO. Upon approval, the dividend will be paid in cash in May 2018 in the aggregate amount of approximately Ps.1,073.4 million.
Shares Outstanding
As of March 31, 2018 and December 31, 2017, our shares outstanding amounted to 338,947.9 million and 342,337.1 million shares, respectively, and our CPO equivalents outstanding amounted to 2,897.0 million and 2,926.0 million CPO equivalents, respectively. Not all of our shares are in the form of CPOs. The number of CPO equivalents is calculated by dividing the number of shares outstanding by 117.
As of March 31, 2018 and December 31, 2017, the GDS (Global Depositary Shares) equivalents outstanding amounted to 579.4 million and 585.2 million GDS equivalents, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.
The Company’s Board of Directors has approved a proposal to cancel 5,122,615.3 thousand shares of capital stock of the Company in the form of 43,783.0 thousand CPOs, which were acquired by the Company during 2017 and 2018.
Executive Officer Appointment
Luis Alejandro Bustos Olivares has been appointed as Legal Vice President and General Counsel, replacing Joaquín Balcárcel Santa Cruz, who has been appointed Chief of Staff of the Executive Chairman of the Board of Directors of the Company.
|
|
|
Grupo Televisa
, S.A.B.
|
FIRST-QUARTER 2018
|
8
|
About Televisa
Televisa is a leading media company in the Spanish-speaking world, an important cable operator in Mexico and an operator of a leading direct-to-home satellite pay television system in Mexico. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 50 countries through 26 pay-tv brands, and television networks, cable operators and over-the-top or “OTT” services. In the United States, Televisa’s audiovisual content is distributed through Univision Communications Inc. (“Univision”) the leading media company serving the Hispanic market. Univision broadcasts Televisa’s audiovisual content through multiple platforms in exchange for a royalty payment. In addition, Televisa has equity and warrants which upon their exercise would represent approximately 36% on a fully-diluted, as-converted basis of the equity capital in Univision Holdings, Inc., the controlling company of Univision. Televisa’s cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers through five cable Multiple System Operators in Mexico. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature film production and distribution, and gaming.
Disclaimer
This press release contains forward-looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in this press release should be read in conjunction with the factors described in “Item 3. Key Information – Forward-Looking Statements” in the Company’s Annual Report on Form 20-F, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this press release and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(Please see attached tables for financial information data)
###
Investor Relations:
Carlos Madrazo /
Tel: (52 55) 5261 2445
/
cmadrazov@televisa.com.mx
Santiago Casado /
Tel: (52 55) 5261 2438 / scasado@televisa.com.mx
Media Relations:
Alejandro Olmos
/ Tel: (52 55) 4438 1205 /
aolmosc@televisa.com.mx
María Eugenia Zurita
/ Tel: (52 55) 52 24 63 60 / mezurita@televisa.com.mx