MEXICO CITY, April 27, 2020 /PRNewswire/ --
Consolidated
- Revenues reached Ps.23.2 billion and the Operating Segment
Income ("OSI") margin reached 35.2%
- Net loss was Ps.8.9 billion primarily due to impact of the
Mexican peso depreciation and the adjustment in the carrying value
of our interest in Univision
- As of March 31, 2020, a strong
liquid position of Ps.54.8 billion. The average maturity of our
debt is 15.8 years
Cable
- Strong momentum in Cable with revenues up 9.4% after adding 256
thousand Revenue Generating Units ("RGUs")
- Fastest pace of organic growth in broadband RGUs in seven
quarters, reaching 4.8 million
- OSI remained strong, reaching Ps.4.5 billion and a margin of
41.5%
Sky
- Revenues were up 2.3%, the fastest pace of growth in three
years
- Added 8 thousand video RGUs, the fourth consecutive quarter of
adding video customers
- OSI remained strong, reaching Ps.2.2 billion and a margin of
41.3%
Content
- Revenues were down 6.4% and OSI margin reached 24%
- The drop in Advertising Sales was partially compensated by an
increase in Licensing and Syndication Revenue
- Strong results of Univision resulted in royalties growing 10.9%
reaching U.S.$97.6 million
- Broadcasted 18 of the top 20 programs during weekdays on
Mexican television
Earnings Call Date
and Time: Tuesday, April 28, 2020, at 10:00 A.M. ET.
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Conference ID # is
1437399
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From the U.S.: +1
(877) 850 2115
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From Mexico: 800 926
9157
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International
callers: +1 (478) 219 0648
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Rebroadcast: +1 (404)
537-3406
|
|
|
The teleconference
will be rebroadcast starting at 13:00 ET on April 28 through
midnight on May 12.
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Consolidated Results
Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; "Televisa" or
"the Company"), today announced results for first-quarter 2020. The
results have been prepared in accordance with International
Financial Reporting Standards ("IFRS").
The following table sets forth condensed consolidated statements
of income for the quarters ended March 31,
2020 and 2019, in millions of Mexican pesos:
|
1Q'20
|
Margin
|
1Q'19
|
Margin
|
Change
|
%
|
%
|
%
|
Net sales
|
23,228.8
|
100.0
|
23,395.2
|
100.0
|
(0.7)
|
Net (loss)
income
|
(8,903.7)
|
(38.3)
|
858.1
|
3.7
|
n/a
|
Net (loss) income
attributable to stockholders of the Company
|
(9,651.9)
|
(41.6)
|
541.7
|
2.3
|
n/a
|
Segment net
sales
|
24,714.1
|
100.0
|
24,469.0
|
100.0
|
1.0
|
Operating segment
income (1)
|
8,709.2
|
35.2
|
9,374.4
|
38.3
|
(7.1)
|
(1) The
operating segment income margin is calculated as a percentage of
segment net sales.
|
Net sales decreased by 0.7% to Ps.23,228.8 million in
first-quarter 2020 compared with Ps.23,395.2 million in
first-quarter 2019. This decrease was mainly attributable to a
decline in Advertising sales. Operating segment income decreased by
7.1%, reaching Ps.8,709.2 million with a margin of 35.2%,
mainly due to the decline in operating segment income of the
Content segment.
Net loss attributable to stockholders of the Company amounted to
Ps.9,651.9 million in first-quarter 2020, compared with a net
income of Ps.541.7 million in first-quarter 2019.
The unfavorable change of Ps.10,193.6 million reflected:
(i) a Ps.6,433.5 million
increase in finance expense, net, primarily as a result of the
impact of the peso depreciation;
(ii) a Ps.5,514.4 million decrease in share of income or loss
of associates and joint ventures, net, primarily due to the
non-cash adjustment in the carrying value of our interest in
Univision;
(iii) a Ps.582.1 million decrease in income before
depreciation and amortization; and
(iv) a Ps.431.8 million increase in net income attributable
to non-controlling interests.
These unfavorable variances were partially offset by:
(i) a Ps.2,229.9 million
favorable change in income tax;
(ii) a Ps.473.8 million favorable change in other income or
expense, net; and
(iii) a Ps.64.5 million decrease in depreciation and
amortization.
Dividend
To further maximize liquidity and as a precautionary measure, we
propose to suspend our 2020 dividend, subject to approval of the
Company's stockholders.
First-quarter Results by Business
Segment
The following table presents first-quarter consolidated results
ended March 31, 2020 and 2019, for
each of our business segments. Consolidated results for
first-quarter 2020 and 2019 are presented in millions of Mexican
pesos.
Net
Sales
|
1Q'20
|
%
|
1Q'19
|
%
|
Change
%
|
Cable
|
10,824.7
|
43.8
|
9,898.1
|
40.4
|
9.4
|
Sky
|
5,405.3
|
21.9
|
5,281.6
|
21.6
|
2.3
|
Content
|
6,727.6
|
27.2
|
7,184.9
|
29.4
|
(6.4)
|
Other
Businesses
|
1,756.5
|
7.1
|
2,104.4
|
8.6
|
(16.5)
|
Segment Net
Sales
|
24,714.1
|
100.0
|
24,469.0
|
100.0
|
1.0
|
Intersegment
Operations1
|
(1,632.8)
|
|
(1,229.7)
|
|
|
Net
Sales
|
23,081.3
|
|
23,239.3
|
|
(0.7)
|
Held-for-sale
Operations 2
|
147.5
|
n/a
|
155.9
|
n/a
|
(5.4)
|
Net
Sales
|
23,228.8
|
|
23,395.2
|
|
(0.7)
|
Operating
Segment Income3
|
1Q'20
|
Margin
%
|
1Q'19
|
Margin
%
|
Change
%
|
Cable
|
4,490.3
|
41.5
|
4,297.1
|
43.4
|
4.5
|
Sky
|
2,234.0
|
41.3
|
2,306.9
|
43.7
|
(3.2)
|
Content
|
1,613.9
|
24.0
|
2,267.3
|
31.6
|
(28.8)
|
Other
Businesses
|
371.0
|
21.1
|
503.1
|
23.9
|
(26.3)
|
Operating Segment
Income
|
8,709.2
|
35.2
|
9,374.4
|
38.3
|
(7.1)
|
Corporate
Expenses
|
(423.8)
|
(1.7)
|
(516.1)
|
(2.1)
|
17.9
|
Depreciation and
Amortization
|
(5,151.5)
|
(22.2)
|
(5,216.0)
|
(22.3)
|
1.2
|
Other Income (Expense),
net
|
284.9
|
1.2
|
(188.9)
|
(0.8)
|
n/a
|
Intersegment
Operations4
|
(17.8)
|
n/a
|
(15.0)
|
n/a
|
(18.7)
|
Held-for-sale
Operations 2
|
25.6
|
n/a
|
32.0
|
n/a
|
(20.0)
|
Operating
Income
|
3,426.6
|
14.8
|
3,470.4
|
14.8
|
(1.3)
|
1 For
segment reporting purposes, intersegment operations are included in
each of the segment operations.
|
2 The
assets and related liabilities of the Radio business are classified
as held for sale in the Company's consolidated statement of
financial position as of March 31, 2020 and December 31, 2019.
Accordingly, the net sales and the operating segment income
associated with the Radio business, which was part of the Company's
Other Businesses segment, are presented separately as held-for-sale
operations for the quarters ended March 31, 2020 and 2019.
Notwithstanding the foregoing, the transaction was consummated for
legal and tax purposes.
|
3 Operating segment income is defined
as operating income before depreciation and amortization, corporate
expenses, and other income (expense), net.
|
4 As
a result of IFRS 16 Leases ("IFRS 16") adoption, intersegment
operations related to intercompany leases were not eliminated on
the Operating Segment Income level as in prior
years.
|
Cable
Total net additions for the quarter were
approximately 255.8 thousand RGUs. Quarterly growth was mainly
driven by 121.1 thousand broadband net additions, the fastest pace
of growth in broadband RGUs in seven quarters, and 145.5 thousand
voice net additions. Video RGUs decreased by 10.8 thousand.
The following table sets forth the breakdown of RGUs per service
type for our Cable segment as of March 31,
2020 and 2019.
RGUs
|
1Q'20
|
1Q'19
|
Video
|
4,308,058
|
4,375,626
|
Broadband
|
4,817,103
|
4,567,517
|
Voice
|
3,783,519
|
3,183,248
|
Total
RGUs
|
12,908,680
|
12,126,391
|
First-quarter sales increased by 9.4% to Ps.10,824.7
million compared with Ps.9,898.1 million in first-quarter 2019
driven by solid net additions in broadband and voice.
First-quarter operating segment income increased by 4.5%
to Ps.4,490.3 million compared with Ps.4,297.1 million in
first-quarter 2019. Margin decreased by 190 basis points to 41.5%
due to growth in the sale of third party Over-the-Top platforms and
the increase in the number of RGUs per subscriber.
The following tables set forth the breakdown of revenues and
operating segment income, excluding consolidation adjustments, for
our MSO and enterprise operations for first-quarter 2020 and
2019.
MSO
Operations (1)
Millions of Mexican
pesos
|
1Q'20
|
1Q'19
|
Change
%
|
Revenue
|
9,755.8
|
8,874.2
|
9.9
|
Operating Segment
Income
|
4,122.7
|
3,917.6
|
5.2
|
Margin (%)
|
42.3
|
44.1
|
|
Enterprise
Operations (1)
Millions of Mexican
pesos
|
1Q'20
|
1Q'19
|
Change
%
|
|
Revenue
|
1,482.2
|
1,393.1
|
6.4
|
|
Operating Segment
Income
|
505.2
|
497.0
|
1.6
|
|
Margin (%)
|
34.1
|
35.7
|
|
|
(1)
These results do not include consolidation adjustments of Ps.413.3
million in revenues nor Ps.137.6 million in operating segment
income for first quarter 2020, neither the consolidation
adjustments of Ps.369.2 million in revenues nor Ps.117.5 million in
operating segment income for first quarter 2019. Consolidation
adjustments are considered in the consolidated results of the Cable
segment.
|
|
First-quarter sales and operating segment income in our MSO
operations increased by 9.9% and 5.2%, respectively. First-quarter
sales and operating segment income in our Enterprise operations
increased by 6.4% and 1.6%, respectively.
Sky
During the quarter, Sky continued growing its broadband
business after adding 44.3 thousand broadband RGUs. It reached a
total of 430.4 thousand broadband RGUs. Sky also added 8.1 thousand
video RGUs. It's the fourth consecutive quarter with video net
additions.
The following table sets forth the breakdown of RGUs per service
type for Sky as of March 31, 2020 and
2019.
RGUs
|
1Q'20
|
1Q'19
|
Video
|
7,437,469
|
7,386,347
|
Broadband
|
430,412
|
165,262
|
Voice
|
1,052
|
1,493
|
Total
RGUs
|
7,868,933
|
7,553,102
|
First-quarter sales increased by 2.3% to Ps.5,405.3
million compared with Ps.5,281.6 million in first-quarter 2019,
mainly explained by the growth in broadband RGUs.
First-quarter operating segment income decreased by
3.2% to Ps.2,234.0 million compared with Ps.2,306.9 million in
first-quarter 2019. The margin was 41.3%. The decline was due to
the costs related to the commercial effort to grow Sky's broadband
service and the lower margin that this service has.
Content
First-quarter sales decreased by 6.4% to Ps.6,727.6
million compared with Ps.7,184.9 million in first-quarter 2019.
Millions of Mexican
pesos
|
1Q'20
|
%
|
1Q'19
|
%
|
Change
%
|
Advertising
|
2,635.1
|
39.2
|
3,681.9
|
51.2
|
(28.4)
|
Network
Subscription
|
1,332.1
|
19.8
|
1,218.3
|
17.0
|
9.3
|
Licensing and
Syndication
|
2,760.4
|
41.0
|
2,284.7
|
31.8
|
20.8
|
Net
Sales
|
6,727.6
|
|
7,184.9
|
|
(6.4)
|
Advertising
First-quarter advertising sales decreased by 28.4% to Ps.2,635.1
million compared with Ps.3,681.9 million in first-quarter 2019. The
decrease in sales is substantially explained by the one-time change
in the calendar for negotiations of our upfront, resulting in many
advertising customers pushing back the startup of their advertising
campaigns for the year with Televisa. It is also explained by a
significant deterioration in growth expectations for Mexico triggered by the outbreak of COVID-19.
As a result of the new level of uncertainty, many clients decided
to pull back on advertising in the last two weeks of the
quarter.
Network Subscription
First-quarter Network Subscription sales increased by 9.3% to
Ps.1,332.1 million compared with Ps.1,218.3 million in
first-quarter 2019. This increase is mainly related to a price
increase and to the favorable impact of the depreciation of the
Mexican peso on our dollar-denominated revenues.
Licensing and Syndication
First-quarter Licensing and Syndication sales increased by 20.8%
to Ps.2,760.4 million from Ps.2,284.7 million in first-quarter
2019. Royalties from Univision reached U.S.$97.6 million in first-quarter 2020 compared to
U.S.$88.0 million in first-quarter
2019.
First-quarter operating segment income decreased by 28.8%
to Ps.1,613.9 million compared with Ps.2,267.3 million in
first-quarter 2019. This decrease is mainly explained by the drop
in advertising sales. The margin was 24.0%.
Other Businesses
First-quarter sales decreased by 16.5% to Ps.1,756.5
million compared with Ps.2,104.4 million in first-quarter 2019. The
decrease is mainly explained by a decline in revenues in our
soccer, gaming and publishing businesses, partially compensated by
feature films distribution business.
First-quarter operating segment income decreased by
26.3% to Ps.371.0 million compared with Ps.503.1 million in
first-quarter 2019. The decline was mainly explained by a decrease
in operating segment income in our soccer and gaming businesses,
partially compensated by feature films distribution and publishing
businesses.
Corporate Expense
Corporate expense decreased by Ps.92.3 million, or 17.9%, to
Ps.423.8 million in first-quarter 2020, from Ps.516.1 million in
first-quarter 2019. This decrease reflected primarily a lower
share-based compensation expense.
Share-based compensation expense in first-quarter 2020 and 2019,
amounted to Ps.209.1 million and Ps.317.2 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 Income or Expense, Net
Other income or expense, net, changed by Ps.473.8 million, to
other income, net, of Ps.284.9 million in first-quarter 2020, from
other expense, net, of Ps.188.9 million in first-quarter 2019.
This change reflected primarily a non-cash Ps.386.0 million
decrease in a provision for an appreciation payment arrangement
between Televisa and a Univision Holdings, Inc. ("UHI")
related party, in connection with the acquisition of the
majority stock of UHI by new investors announced on February 25, 2020, and the decline in the
estimated fair value of Televisa's investments in UHI as of
March 31, 2020.
Additional favorable variances in first-quarter 2020, included
lower loss on disposition of property and equipment, as well as a
decrease in non-recurrent severance expense in connection with
dismissals of personnel in our Content segment.
The following table sets forth the breakdown of cash and
non-cash other income (expense), net, stated in millions of Mexican
pesos, for the three months ended March 31,
2020 and 2019.
Other income
(expense), net
|
2020
|
2019
|
Cash
|
(137.6)
|
(130.2)
|
Non-cash
|
422.5
|
(58.7)
|
Total
|
284.9
|
(188.9)
|
Finance Expense, Net
The following table sets forth finance (expense) income, net,
stated in millions of Mexican pesos for the quarters ended
March 31, 2020 and 2019.
|
1Q
2020
|
1Q
2019
|
(Increase)
decrease
|
Interest
expense
|
(2,528.2)
|
(2,406.8)
|
(121.4)
|
Interest
income
|
223.9
|
296.5
|
(72.6)
|
Foreign exchange
(loss) gain, net
|
(8,601.4)
|
139.0
|
(8,740.4)
|
Other finance income
(expense), net
|
2,198.1
|
(302.8)
|
2,500.9
|
Finance expense,
net
|
(8,707.6)
|
(2,274.1)
|
(6,433.5)
|
Finance expense, net, increased by Ps.6,433.5 million, to
Ps.8,707.6 million in first-quarter 2020, from Ps.2,274.1 million
in first-quarter 2019.
This increase reflected:
I. a Ps.8,740.4 million
unfavorable change resulting primarily from a 26.4% depreciation of
the Mexican peso against the U.S. dollar in first-quarter 2020, in
comparison with a 1.3% appreciation in first-quarter 2019, on a
higher average net U.S. dollar liability position;
II. a Ps.121.4 million
increase in interest expense, primarily due to a higher average
principal amount of debt in 2020; and
III. a Ps.72.6 million
decrease in interest income, primarily explained by a lower average
amount of cash equivalents.
These unfavorable variances were partially offset by a
Ps.2,500.9 million favorable change in other finance income or
expense, net, resulting primarily from changes in fair value of our
derivative contracts.
Share of Income or Loss of Associates and Joint Ventures,
Net
Share of income or loss of associates and joint ventures, net,
changed by Ps.5,514.4 million, to a share of loss of Ps.5,348.6
million in first-quarter 2020, from a share of income of Ps.165.8
million in first-quarter 2019. This unfavorable change reflected
mainly:
I. an impairment loss in the
amount of Ps.5,455.4 million that decreased the carrying value of
our investment in shares of UHI as of March
31, 2020, resulting from a decline in the estimated fair
value of our investments in UHI as of that date (please refer to
"Investments in warrants and shares of Univision" section for
further information) ; and
II. the absence of share of
income of OCESA Entretenimiento, S.A. de C.V. ("OCEN"), a live
entertainment company in Mexico,
Central America and Colombia, as we classified this investment as
held for sale as of July 31, 2019,
and discontinued the recognition of share of income of OCEN
beginning on August 1, 2019, in
connection with an agreement to dispose of this associate, to be
concluded subject to certain customary closing conditions.
These unfavorable variances were partially offset by a higher
share of income of Univision Holdings, Inc. or UHI, the controlling
company of Univision Communications Inc.
Investments in warrants and shares of Univision
In conjunction with the acquisition of the majority stock of UHI
by a group of investors, which was announced on February 25, 2020, we reviewed the assumptions
and inputs related to our discounted cash flow model used to
determine the fair value of our investment in warrants and shares
of UHI as of March 31, 2020. In
addition, we retained the services of a third party to perform a
valuation analysis. Based on these assessments and reviews, we
recognized:
I. a decline in the
estimated fair value of Televisa's investment in warrants
exercisable for shares of UHI as of March
31, 2020, in the amount of Ps.21,937.1 million, which was
accounted for in accumulated other comprehensive income or loss
("OCI"), net of income tax of Ps.6,581.1 million, in Televisa's
consolidated statement of financial position as of March 31, 2020; and
II. a decrease in the
carrying value of Televisa's investment in shares of UHI as of
March 31, 2020, in the amount of
Ps.5,455.4 million, which was accounted for in share of income or
loss of associates and joint ventures in the consolidated statement
of income ("IS") for the three months ended March 31, 2020.
The following table summarizes the carrying value of the
investments in UHI as of March 31,
2020, and December 31, 2019,
before and after the change in fair value ("FV"), in millions of
Mexican pesos.
Investments in
UHI
|
Carrying
value at
December 31, 2019
|
Carrying value
before
FV Change
on
March 31,
20201
|
FV
Change
|
Carrying
value
at March 31, 2020
|
FV Change
Accounted for in
|
Warrants, at fair
value
|
33,775.4
|
42,683.3
|
(21,937.1)
|
20,746.2
|
OCI
|
Shares, at equity
method
|
8,189.7
|
10,476.6
|
(5,455.4)
|
5,021.2
|
IS
|
Total
|
41,965.1
|
53,159.9
|
(27,392.5)
|
25,767.4
|
|
1This
carrying value already considers the positive impact that the
depreciation of the peso had, during first quarter 2020, on this
dollar denominated investment.
|
Income Taxes
Income tax represented a benefit of Ps.1,725.9 million in
first-quarter 2020, from an income tax expense of Ps.504.0 million
in first-quarter 2019. This change reflected mainly the income tax
losses of the Company and some of its subsidiaries, resulting from
their foreign exchange loss in first-quarter 2020.
Net Income Attributable to Non-controlling Interests
Net income attributable to non-controlling interests increased
by Ps.431.8 million, to Ps.748.2 million in first-quarter 2020,
compared with Ps.316.4 million in first-quarter 2019. This increase
reflected primarily a higher portion of net income attributable to
non-controlling interests in our Cable and Sky segments.
Capital Expenditures
During first-quarter 2020, we invested approximately
U.S.$227.4 million in property, plant
and equipment as capital expenditures. The following table sets
forth the breakdown of capital expenditures for first-quarter
2020 and 2019.
Capital
Expenditures
Millions of
U.S.$
|
1Q
2020
|
1Q
2019
|
Cable
|
160.9
|
169.7
|
Sky
|
61.8
|
47.1
|
Content and Other
Businesses
|
4.7
|
6.1
|
Total
|
227.4
|
222.9
|
For the full year, we are reducing our guidance in capital
expenditures to a range of U.S.$750
million to U.S.$800
million.
Debt, Lease Liabilities and Other Notes Payable
The following table sets forth our total consolidated debt,
lease liabilities and other notes payable as of March 31, 2020 and December 31, 2019. Amounts are stated in millions
of Mexican pesos.
|
March 31,
2020
|
December
31,
2019
|
(decrease)
Increase
|
Current portion of
long-term debt
|
492.0
|
491.9
|
0.1
|
Long-term debt, net
of current portion
|
157,291.8
|
120,444.7
|
36,847.1
|
Total debt
1
|
157,783.8
|
120,936.6
|
36,847.2
|
Current portion of
lease liabilities
|
1,471.7
|
1,257.8
|
213.9
|
Long-term lease
liabilities, net of current portion
|
9,155.8
|
8,105.8
|
1,050.0
|
Total lease
liabilities
|
10,627.5
|
9,363.6
|
1,263.9
|
Current portion of
other notes payable
|
-
|
1,324.1
|
(1,324.1)
|
Other notes payable,
net of current portion
|
-
|
-
|
-
|
Total other notes
payable
|
-
|
1,324.1
|
(1,324.1)
|
Total debt, lease
liabilities and other notes payable
|
168,411.3
|
131,624.3
|
36,787.0
|
1 As of March 31, 2020 and
December 31, 2019, total debt is presented net of finance costs in
the amount of Ps.1,467.4 million and Ps.1,441.6 million,
respectively, and does not include related accrued interest payable
in the amount of Ps.2,206.9 million and Ps.1,943.9 million,
respectively.
|
As of March 31, 2020, our
consolidated net debt position (total debt and lease liabilities
less cash and cash equivalents, temporary investments, and certain
non-current investments in financial instruments) was Ps.113,656.8
million. The aggregate amount of non-current investments in
financial instruments included in our consolidated net debt
position as of March 31, 2020,
amounted to Ps.9,814.2 million.
On March 24, 2020, Televisa
announced that it has drawn down Ps.14,771 million from its
Revolving Credit Facility (the "Facility") as a prudent and
precautionary measure in order to increase its cash position and
preserve financial flexibility in light of current uncertainty in
the global and local markets resulting from the COVID-19 outbreak.
The Facility is scheduled to mature on March
26, 2022.
Radiópolis
In March 2020, we entered into a
settlement agreement with the acquirer of the Radio business to
complete this transaction whereby we agreed, among other things, to
modify the payment terms of the purchase price. We received
Ps.603.4 million in cash in March
2020, and the remaining amount of Ps.644.6 million is
expected by June 2020. While the sale
of our 50% equity interest in the Radio business has been
consummated for legal and tax purposes as of December 31, 2019, this transaction is considered
as held for sale for financial reporting purposes as of
March 31, 2020.
Shares Outstanding
As of March 31, 2020 and
December 31, 2019, our shares
outstanding amounted to 330,060.7 million and 337,244.3 million
shares, respectively, and our CPO equivalents outstanding amounted
to 2,821.0 million and 2,882.4 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, 2020 and
December 31, 2019, the GDS (Global
Depositary Shares) equivalents outstanding amounted to 564.2
million and 576.5 million GDS equivalents, respectively. The number
of GDS equivalents is calculated by dividing the number of CPO
equivalents by five.
Sustainability
During first quarter 2020, Televisa was included in three
indices of the FTSE4Good Index Series: FTSE4Good Emerging Markets,
FTSE4Good Emerging Latin America, and FTSE4Good BIVA. This is the
fourth consecutive year Televisa has been included in the FTSE4Good
Index Series. In addition, for a third consecutive year, Televisa
was recognized with the Socially Responsible Company award (Empresa
Socialmente Responsable ESR) granted by the Mexican Center for
Philanthropy (Centro Mexicano para
la FilantropÃa or CEMEFI) and the Alliance for Corporate Social
Responsibility (Alianza por la Responsabilidad Social Empresarial
or AliaRSE).
COVID-19 Impact
The COVID-19 pandemic has affected our business, financial
position and results of operations for the first quarter ended
March 31, 2020, and it is currently
difficult to predict the degree of the impact on the second quarter
and the remainder of 2020.
We cannot guarantee that conditions in the bank lending, capital
and other financial markets will not continue to deteriorate as a
result of the pandemic, or that our access to capital and other
sources of funding will not become constrained, which could
adversely affect the availability and terms of future borrowings,
renewals or refinancings. In addition, the deterioration of global
economic conditions as a result of the pandemic may ultimately
reduce the demand of our products across our segments as our
clients and customers reduce or defer their spending.
The social distancing, shelter-in-place and other policies to
limit the spread of the COVID-19 pandemic that have been
implemented or recommended by governmental entities in Mexico and other areas around the world have
been affecting the ability of our employees, suppliers and
customers to conduct their functions and businesses in their
typical manner. The Mexican Government has ordered the suspension
of all non-essential economic activities from March 30, 2020 through May
30, 2020 for most parts of Mexico, including the largest metropolitan
areas. Media and telecommunications are not included in the
suspension as they are considered essential economic activities. We
have continued operating our essential businesses uninterrupted to
continue benefiting the country with connectivity, entertainment
and information, while also promoting the "stay at home" policy
whenever possible, in order to take safety and cautionary measures
for our employees. Our "Stay at home with Televisa" action plan
aims to provide a comprehensive solution for two basic society
member groups: audiences and brands. The policy promotes solidarity
and support through promoting serenity, entertainment, and social
union.
Our Content business has seen a reduction in the demand for
advertising during the quarter ended March
31, 2020, which may continue to be affected by the reduction
in the level of economic activity in the jurisdictions in which our
customers are located. We are partially dependent on the demand for
advertising from consumer-focused companies, and the COVID-19
pandemic has caused, and could further cause, advertisers to
reduce, postpone or, in a few cases, eliminate their advertisement
spending on our platforms. In addition, much of our
production of new content has been curtailed or suspended in
response to social distancing and shutdown requirements and health
guidelines.
In our Other Businesses segment, sporting and other
entertainment events for which we have broadcast rights, or which
we organize, promote and/or are located in venues we own, have been
cancelled or postponed. Moreover, local authorities have enacted
several rules pursuant to which they have instructed the temporary
closing of non-essential businesses, including casinos, and as a
result our gaming operations have been suspended until the
cancellations of governmental measures imposed in the regions where
our casinos are located.
The magnitude of the impact on our business will depend on the
duration and extent of the COVID-19 pandemic and the impact of
federal, state, local and foreign governmental actions, including
continued or future social distancing, and consumer behavior in
response to the COVID-19 pandemic and such governmental actions.
Due to the evolving and uncertain nature of this situation, we are
not able to estimate the full extent of the impact of the COVID-19
pandemic, but it may continue affecting our business, financial
position and results of operations over the near, medium or
long-term.
Additional Information Available on Website
The information in this press release should be read in
conjunction with the financial statements and footnotes contained
in the Company's Annual Report and on Form 20-F for the year ended
December 31, 2019, which will be
posted on the "Reports and Filings" section of our investor
relations website at televisair.com when filed with the Comisión
Nacional Bancaria y de Valores and the Securities and Exchange
Commission, respectively.
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 70 countries through 25
pay-tv brands, 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. Televisa owns a majority interest in
Sky, a leading direct-to-home satellite pay television system and
broadband provider in Mexico,
operating also in the Dominican
Republic and Central
America. Televisa also has interests in magazine publishing
and distribution, 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. Statements contained in this release relating to the
COVID-19 outbreak, the impact of which on our business performance
and financial results remains inherently uncertain, are
forward-looking statements. 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 and
ratings data)
Contact Information
Investor Relations
www.televisair.com.mx
Tel: (52 55) 5261 2445
Carlos Madrazo. VP, Head of
Investor Relations cmadrazov@televisa.com.mx
Santiago Casado. Investor Relations
Director. scasado@televisa.com.mx
Media Relations:
Rubén Acosta / Tel: (52 55) 5224
6420 / racostamo@televisa.com.mx
Teresa Villa / Tel: (52 55) 4438
1205 / atvillas@televisa.com.mx
GRUPO TELEVISA,
S.A.B. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION AS OF MARCH 31, 2020 AND DECEMBER 31,
2019 (Millions of Mexican Pesos)
|
|
|
March 31,
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
Ps.
|
44,940.3
|
|
|
Ps.
|
27,452.0
|
|
Trade notes and
accounts receivable, net
|
|
20,749.1
|
|
|
|
14,486.2
|
|
Other accounts and
notes receivable, net
|
|
12,518.7
|
|
|
|
10,692.8
|
|
Derivative financial
instruments
|
|
2,257.6
|
|
|
|
1.7
|
|
Due from related
parties
|
|
816.9
|
|
|
|
814.4
|
|
Transmission rights
and programming
|
|
5,327.9
|
|
|
|
6,479.3
|
|
Inventories
|
|
1,115.7
|
|
|
|
1,151.4
|
|
Contract
costs
|
|
1,406.1
|
|
|
|
1,379.4
|
|
Assets held for
sale
|
|
2,427.4
|
|
|
|
2,369.7
|
|
Other current
assets
|
|
4,587.2
|
|
|
|
3,298.1
|
|
Total current
assets
|
|
96,146.9
|
|
|
|
68,125.0
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
0.4
|
|
|
|
2.9
|
|
Transmission rights
and programming
|
|
8,765.2
|
|
|
|
7,901.6
|
|
Investments in
financial instruments
|
|
30,791.3
|
|
|
|
44,265.8
|
|
Investments in
associates and joint ventures
|
|
5,894.6
|
|
|
|
9,068.5
|
|
Property, plant and
equipment, net
|
|
83,329.5
|
|
|
|
83,329.2
|
|
Right-of-use
assets
|
|
7,477.7
|
|
|
|
7,553.1
|
|
Intangible assets,
net
|
|
43,033.1
|
|
|
|
43,329.0
|
|
Deferred income tax
assets
|
|
31,391.7
|
|
|
|
24,185.1
|
|
Contract
costs
|
|
2,473.4
|
|
|
|
2,311.8
|
|
Other
assets
|
|
159.2
|
|
|
|
271.8
|
|
Total non-current
assets
|
|
213,316.1
|
|
|
|
222,218.8
|
|
Total
assets
|
Ps.
|
309,463.0
|
|
|
Ps.
|
290,343.8
|
|
|
|
|
|
|
|
|
|
GRUPO TELEVISA,
S.A.B. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION AS OF MARCH 31, 2020 AND DECEMBER 31,
2019 (Millions of Mexican Pesos)
|
|
|
March 31,
|
|
December
31,
|
|
2020
|
|
2019
|
LIABILITIES
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
long-term debt and interest payable
|
Ps.
|
2,698.9
|
|
|
Ps.
|
2,435.8
|
|
Current portion of
lease liabilities
|
|
1,471.7
|
|
|
|
1,257.8
|
|
Current portion of
other notes payable
|
|
-
|
|
|
|
1,324.1
|
|
Derivative financial
instruments
|
|
-
|
|
|
|
568.8
|
|
Trade accounts payable
and accrued expenses
|
|
24,341.9
|
|
|
|
20,909.7
|
|
Customer deposits and
advances
|
|
11,696.5
|
|
|
|
5,779.8
|
|
Other
advances
|
|
602.8
|
|
|
|
-
|
|
Income taxes
payable
|
|
1,933.2
|
|
|
|
2,470.2
|
|
Other taxes
payable
|
|
4,430.8
|
|
|
|
3,448.0
|
|
Employee
benefits
|
|
873.5
|
|
|
|
911.9
|
|
Due to related
parties
|
|
415.5
|
|
|
|
644.2
|
|
Liabilities related to
assets held for sale
|
|
415.0
|
|
|
|
432.8
|
|
Other current
liabilities
|
|
2,377.0
|
|
|
|
2,202.8
|
|
Total current
liabilities
|
|
51,256.8
|
|
|
|
42,385.9
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term debt, net of
current portion
|
|
157,291.8
|
|
|
|
120,444.7
|
|
Lease liabilities, net
of current portion
|
|
9,155.8
|
|
|
|
8,105.8
|
|
Derivative financial
instruments
|
|
651.1
|
|
|
|
346.6
|
|
Income taxes
payable
|
|
753.8
|
|
|
|
1,759.7
|
|
Deferred income tax
liabilities
|
|
3,362.9
|
|
|
|
7,052.2
|
|
Post-employment
benefits
|
|
1,517.6
|
|
|
|
1,468.1
|
|
Other long-term
liabilities
|
|
3,542.8
|
|
|
|
3,376.6
|
|
Total non-current
liabilities
|
|
176,275.8
|
|
|
|
142,553.7
|
|
Total
liabilities
|
|
227,532.6
|
|
|
|
184,939.6
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Capital
stock
|
|
4,907.8
|
|
|
|
4,907.8
|
|
Additional
paid-in-capital
|
|
15,889.8
|
|
|
|
15,889.8
|
|
|
|
20,797.6
|
|
|
|
20,797.6
|
|
Retained
earnings:
|
|
|
|
|
|
|
|
Legal
reserve
|
|
2,139.0
|
|
|
|
2,139.0
|
|
Unappropriated
earnings
|
|
80,496.0
|
|
|
|
75,666.1
|
|
Net (loss) income for
the period
|
|
(9,651.9)
|
|
|
|
4,626.1
|
|
|
|
72,983.1
|
|
|
|
82,431.2
|
|
Accumulated other
comprehensive (loss) income, net
|
|
(13,507.2)
|
|
|
|
1,320.4
|
|
Shares
repurchased
|
|
(14,214.4)
|
|
|
|
(14,018.8)
|
|
|
|
45,261.5
|
|
|
|
69,732.8
|
|
Equity attributable to
stockholders of the Company
|
|
66,059.1
|
|
|
|
90,530.4
|
|
Non-controlling
interests
|
|
15,871.3
|
|
|
|
14,873.8
|
|
Total
equity
|
|
81,930.4
|
|
|
|
105,404.2
|
|
Total liabilities and
equity
|
Ps.
|
309,463.0
|
|
|
Ps.
|
290,343.8
|
|
|
|
|
|
|
|
|
|
GRUPO TELEVISA,
S.A.B. CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR
THE THREE MONTHS ENDED MARCH 31, 2020 AND
2019 (Millions of Mexican Pesos)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Ps.
|
23,228.8
|
|
|
Ps.
|
23,395.2
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
|
|
13,738.0
|
|
|
|
13,264.0
|
|
|
|
Selling
expenses
|
|
|
|
|
|
|
|
|
|
|
|
2,718.0
|
|
|
|
2,764.4
|
|
|
|
Administrative
expenses
|
|
|
|
|
|
|
|
|
|
|
|
3,631.1
|
|
|
|
3,707.5
|
|
|
|
Income before other
income or expense
|
|
|
|
|
|
|
|
|
|
|
|
3,141.7
|
|
|
|
3,659.3
|
|
|
|
Other income
(expense), net
|
|
|
|
|
|
|
|
|
|
|
|
284.9
|
|
|
|
(188.9)
|
|
|
|
Operating
income
|
|
|
|
|
|
|
|
|
|
|
|
3,426.6
|
|
|
|
3,470.4
|
|
|
|
Finance
expense
|
|
|
|
|
|
|
|
|
|
|
|
(11,129.6)
|
|
|
|
(2,709.6)
|
|
|
|
Finance
income
|
|
|
|
|
|
|
|
|
|
|
|
2,422.0
|
|
|
|
435.5
|
|
|
|
Finance expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
(8,707.6)
|
|
|
|
(2,274.1)
|
|
|
|
Share of (loss)
income of associates and joint
ventures,
net
|
|
|
|
|
|
|
|
|
|
|
|
(5,348.6)
|
|
|
|
165.8
|
|
|
|
(Loss) income before
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
(10,629.6)
|
|
|
|
1,362.1
|
|
|
|
Income tax benefit
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
1,725.9
|
|
|
|
(504.0)
|
|
|
|
Net (loss)
income
|
|
|
|
|
|
|
|
|
|
|
Ps.
|
(8,903.7)
|
|
|
Ps.
|
858.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the
Company
|
|
|
|
|
|
|
|
|
|
|
Ps.
|
(9,651.9)
|
|
|
Ps.
|
541.7
|
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
748.2
|
|
|
|
316.4
|
|
|
|
Net (loss)
income
|
|
|
|
|
|
|
|
|
|
|
Ps.
|
(8,903.7)
|
|
|
Ps.
|
858.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per CPO attributable to stockholders of the Company
|
|
|
|
|
|
|
|
|
|
|
Ps.
|
(3.39)
|
)
|
|
Ps.
|
0.19
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/televisa-reports-first-quarter-2020-results-301048010.html
SOURCE Grupo Televisa, S.A.B.