MEXICO CITY, July 7, 2020 /PRNewswire/ --
Consolidated
- Revenues reached Ps.22.4 billion
- Operating Segment Income ("OSI") margin reached 35.8%
- Standard & Poor´s and Fitch Ratings ratified Televisa's
BBB+ ratings
- Strong demand for connectivity services due to social
distancing policies
- Other Businesses segment significantly impacted by the shut
down of the economy
Cable
- Record growth of 494 thousand Revenue Generating Units
("RGUs")
- New record in broadband RGUs net adds of 252 thousand for a
single quarter
- Strong top line growth of 10.7% and OSI growth of 4.1%
- Launched izzi Móvil, a MVNO (Mobile Virtual Network
Operator)
Sky
- 72 thousand new broadband RGUs reaching over 500 thousand
- 5th consecutive quarter of growth in video RGUs after adding 20
thousand
- Revenues grew 3.1%, the fastest pace of growth in 13
quarters
- OSI resumed growth, reaching Ps.2.3 billion
Content
- Audience growth y-o-y of 18%[1] in our flagship
network
- Advertising revenue drop of 33.1% due to shut down of
economy
- Revenues were down 16.3% and OSI margin reached 30.9%
- Savings from cost and expenses reduction program of Ps.462
million
Earnings Call Date and Time: Wednesday, July 8, 2020, at 10:00 A.M. ET.
Conference ID # is 8059865
From the U.S.: +1 (877) 850
2115 From
Mexico: 800 926 9157
International callers: +1 (478) 219
0648 Rebroadcast:
+1 (404) 537-3406
The teleconference will be rebroadcast starting at 13:00 ET on July 8
through midnight on July 22.
1 Source: Nielsen. P4+, Monday to Sunday, 16:30 to
23:00
Consolidated Results
Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; "Televisa" or
"the Company"), today announced results for second-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 June 30,
2020 and 2019, in millions of Mexican pesos:
|
2Q'20
|
Margin
|
2Q'19
|
Margin
|
Change
|
%
|
%
|
%
|
Net sales
|
22,407.2
|
100.0
|
24,307.6
|
100.0
|
(7.8)
|
Net income
|
1,989.4
|
8.9
|
1,263.4
|
5.2
|
57.5
|
Net income
attributable to stockholders of the Company
|
1,739.5
|
7.8
|
919.1
|
3.8
|
89.3
|
Segment net
sales
|
24,131.2
|
100.0
|
25,339.5
|
100.0
|
(4.8)
|
Operating segment
income (1)
|
8,636.3
|
35.8
|
9,856.4
|
38.9
|
(12.4)
|
(1) The
operating segment income margin is calculated as a percentage of
segment net sales.
|
Net sales decreased by 7.8% to Ps.22,407.2 million in
second-quarter 2020 compared with Ps.24,307.6 million in
second-quarter 2019. This decrease was mainly attributable to a
decline in Advertising sales and in Other Businesses. Operating
segment income decreased by 12.4% to Ps.8,636.3 million with a
margin of 35.8%, due to the decline in operating segment income of
Content and Other Businesses segments.
Net income attributable to stockholders of the
Company increased to Ps.1,739.5 million in second-quarter 2020
compared to Ps.919.1 million in second-quarter 2019.
The net increase of Ps.820.4 million reflected:
i. a Ps.2,179.6 million
decrease in finance expense, net; and
ii. a Ps.94.4 million decrease in net income attributable to
non-controlling interests.
These favorable variances were partially offset by:
i. a Ps.1,251.4 million
decrease in operating income before depreciation and amortization
and other expense, net;
ii. a Ps.154.9 million increase in depreciation and
amortization;
iii. a Ps.10.5 million increase in other expense, net;
iv. a Ps.26.2 million decrease in share of income of
associates and joint ventures, net; and v. a Ps.10.6 million
increase in income taxes.
Second-quarter Results by Business
Segment
The following table presents second-quarter consolidated results
ended June 30, 2020 and 2019, for
each of our business segments. Consolidated results for
second-quarter 2020 and 2019 are presented in millions of Mexican
pesos.
Net
Sales
|
2Q'20
|
%
|
2Q'19
|
%
|
Change
%
|
Cable
|
11,308.8
|
46.9
|
10,215.7
|
40.3
|
10.7
|
Sky
|
5,514.7
|
22.9
|
5,348.1
|
21.1
|
3.1
|
Content
|
6,740.6
|
27.9
|
8,050.0
|
31.8
|
(16.3)
|
Other
Businesses
|
567.1
|
2.3
|
1,725.7
|
6.8
|
(67.1)
|
Segment Net
Sales
|
24,131.2
|
100.0
|
25,339.5
|
100.0
|
(4.8)
|
Intersegment
Operations1
|
(1,799.8)
|
|
(1,252.7)
|
|
|
Net
Sales
|
22,331.4
|
|
24,086.8
|
|
(7.3)
|
Held-for-sale
Operations 2
|
75.8
|
n/a
|
220.8
|
n/a
|
(65.7)
|
Net
Sales
|
22,407.2
|
|
24,307.6
|
|
(7.8)
|
Operating
Segment Income3
|
2Q'20
|
Margin
%
|
2Q'19
|
Margin
%
|
Change
%
|
Cable
|
4,656.5
|
41.2
|
4,473.7
|
43.8
|
4.1
|
Sky
|
2,321.4
|
42.1
|
2,305.6
|
43.1
|
0.7
|
Content
|
2,080.8
|
30.9
|
2,928.3
|
36.4
|
(28.9)
|
Other
Businesses
|
(422.4)
|
(74.5)
|
148.8
|
8.6
|
n/a
|
Operating Segment
Income
|
8,636.3
|
35.8
|
9,856.4
|
38.9
|
(12.4)
|
Corporate
Expenses
|
(366.0)
|
(1.5)
|
(439.2)
|
(1.7)
|
16.7
|
Depreciation and
Amortization
|
(5,234.1)
|
(23.4)
|
(5,079.2)
|
(20.9)
|
(3.0)
|
Other Expense,
net
|
(293.5)
|
(1.3)
|
(283.0)
|
(1.2)
|
(3.7)
|
Intersegment
Operations
|
(19.9)
|
(0.1)
|
(16.7)
|
(0.1)
|
(19.2)
|
Held-for-sale
Operations 2
|
(29.6)
|
n/a
|
71.7
|
n/a
|
n/a
|
Operating
Income
|
2,693.2
|
12.0
|
4,110.0
|
16.9
|
(34.5)
|
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 June 30 , 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 June 30, 2020 and 2019. The sale
of the Radio business was concluded on July 2nd,
2020.
|
3 Operating segment income is defined
as operating income before depreciation and amortization, corporate
expenses, and other expense, net.
|
Cable
Total net additions for the quarter were
approximately 494.1 thousand RGUs. Quarterly growth was mainly
driven by record broadband net additions of 252.2 thousand and
voice net additions of 214.5 thousand. Video net additions
increased by 27.4 thousand. The following table sets forth the
breakdown of RGUs per service type for our Cable segment as of
June 30, 2020 and 2019.
RGUs
|
2Q'20 Net
Adds
|
2Q'20
|
2Q'19
|
Video
|
27,420
|
4,335,478
|
4,387,007
|
Broadband
|
252,174
|
5,069,277
|
4,640,275
|
Voice
|
214,528
|
3,998,047
|
3,385,387
|
Total
RGUs
|
494,122
|
13,402,802
|
12,412,669
|
Second-quarter sales increased by 10.7% to
Ps.11,308.8 million compared with Ps.10,215.7 million in
second-quarter 2019 driven by solid net additions in broadband and
voice.
Second-quarter operating segment income increased by 4.1%
to Ps.4,656.5 million compared with Ps.4,473.7 million in
second-quarter 2019. Margin decreased by 260 basis points to 41.2%
due to a number of reasons, such as strong growth in our
lower-margin packages that are bundled with OTT services,
promotions around fixed line portability, and promotions to drive a
higher adoption of automatic recurring payments.
The following tables set forth the breakdown of revenues and
operating segment income, excluding consolidation adjustments, for
our MSO and enterprise operations for second-quarter 2020 and
2019.
MSO
Operations (1)
Millions of Mexican
pesos
|
2Q'20
|
2Q'19
|
Change
%
|
Revenue
|
9,928.9
|
9,216.8
|
7.7
|
Operating Segment
Income
|
4,174.3
|
4,059.8
|
2.8
|
Margin (%)
|
42.0
|
44.0
|
|
Enterprise
Operations (1)
Millions of Mexican
pesos
|
2Q'20
|
2Q'19
|
Change
%
|
Revenue
|
1,789.0
|
1,412.8
|
26.6
|
Operating Segment
Income
|
625.9
|
521.9
|
19.9
|
Margin (%)
|
35.0
|
36.9
|
|
(1)
These results do not include consolidation adjustments of Ps.409.1
million in revenues nor Ps.143.7 million in operating segment
income for second quarter 2020, neither the consolidation
adjustments of Ps.413.9 million in revenues nor Ps.108.0 million in
operating segment income for second quarter 2019. Consolidation
adjustments are considered in the consolidated results of the Cable
segment.
|
Second-quarter sales and operating segment income in our MSO
operations increased by 7.7% and 2.8%, respectively. Second-quarter
sales and operating segment income in our Enterprise operations
increased by 26.6% and 19.9%, respectively.
On June 20th we launched izzi
Móvil, an MVNO (Mobile Virtual Network Operation) that will use
the network of Altan (Red Compartida project).
Sky
During the quarter, Sky continued growing its broadband
business after adding 72.0 thousand broadband RGUs reaching a total
of 502.4 thousand broadband RGUs. In addition, Sky added 19.7
thousand video RGUs. This is the 5th consecutive quarter
of video RGU net additions.
The following table sets forth the breakdown of RGUs per service
type for Sky as of June 30, 2020 and
2019.
RGUs
|
2Q'20 Net
Adds
|
2Q'20
|
2Q'19
|
Video
|
19,693
|
7,457,162
|
7,393,726
|
Broadband
|
72,017
|
502,429
|
238,361
|
Voice
|
(107)
|
945
|
1,329
|
Total
RGUs
|
91,603
|
7,960,536
|
7,633,416
|
Second-quarter sales increased by 3.1% to
Ps.5,514.7 million compared with Ps.5,348.1 million in
second-quarter 2019, mainly explained by the growth in broadband
RGUs.
Second-quarter operating segment income increased by
0.7%, reaching Ps.2,321.4 million compared with Ps.2,305.6 million
in second-quarter 2019. The margin was 42.1%.
Content
Second-quarter sales decreased by 16.3% to Ps. 6,740.6
million compared with Ps.8,050.0 million in second-quarter
2019.
Millions of Mexican
pesos
|
2Q'20
|
%
|
2Q'19
|
%
|
Change
%
|
Advertising
|
2,922.2
|
43.3
|
4,370.3
|
54.3
|
(33.1)
|
Network
Subscription
|
1,400.7
|
20.8
|
1,206.0
|
15.0
|
16.1
|
Licensing and
Syndication
|
2,417.7
|
35.9
|
2,473.7
|
30.7
|
(2.3)
|
Net
Sales
|
6,740.6
|
|
8,050.0
|
|
(16.3)
|
Advertising
Second-quarter Advertising sales decreased by 33.1% to
Ps.2,922.2 million compared with Ps.4,370.3 million in
second-quarter 2019. The decrease in sales is explained by a
significant deterioration in the Mexican economy due to COVID-19
that resulted in a reduction of advertising budgets in many
categories, such as Food and Beverage, Retail, Telecom, Travel, and
Out-of-Home Entertainment.
Network Subscription
Second-quarter Network Subscription sales increased by 16.1% to
Ps.1,400.7 million compared with Ps.1,206.0 million in
second-quarter 2019. This growth is mainly related to the increase
in the price we charge our affiliate distributors for our pay TV
networks and to the favorable impact of the depreciation of the
Mexican peso on our dollar-denominated revenues.
Licensing and Syndication
Second-quarter Licensing and Syndication sales decreased by 2.3%
to Ps.2,417.7 million from Ps.2,473.7 million in second-quarter
2019. We estimate that royalties from Univision reached
U.S.$79.7 million in second-quarter
2020 compared to U.S.$99.6 million in
second-quarter 2019. This decrease in royalties is mainly explained
by the impact that COVID-19 had in advertising budgets in the US.
The depreciation of the Mexican peso partially compensated the
decrease in royalties.
Second-quarter operating segment income decreased by
28.9% to Ps.2,080.8 million compared with Ps.2,928.3 million in
second-quarter 2019. This decrease is mainly explained by the drop
in advertising sales. The margin was 30.9%.
Other Businesses
Second-quarter sales decreased by 67.1% to Ps.567.1
million compared with Ps.1,725.7 million in second-quarter 2019.
The decrease is mainly explained by a decline in revenues in our
soccer, gaming, publishing and film distribution businesses due to
the measures triggered by the outbreak of COVID-19, which included
the suspension of activities in some businesses of this segment,
including gaming and sports.
Second-quarter operating segment loss was Ps.422.4
million compared with an income of Ps.148.8 million in
second-quarter 2019.
Corporate Expense
Corporate expense decreased by Ps.73.2 million, or 16.7%, to
Ps.366.0 million in second-quarter 2020, from Ps.439.2 million in
second-quarter 2019. The decrease reflected primarily a lower
share-based compensation expense.
Share-based compensation expense in second-quarter 2020 and 2019
amounted to Ps.193.9 million and Ps.251.8 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
Other expense, net, increased by Ps.10.5 million, or 3.7%, to
Ps.293.5 million in second-quarter 2020, from Ps.283.0 million in
second-quarter 2019. The favorable change in cash Other expense,
net, reflected primarily a one-time cash reimbursement in
connection to Imagina Media Audiovisual, S.L., a former associate
of the Company, partially offset by higher non-recurring severance
expenses, and higher expenses related to legal and financial
advisory professional services.
The increase in non-cash Other expense, net, reflected primarily
a higher loss on disposition of property and equipment.
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 June 30,
2020 and 2019.
Other income
(expense), net
|
2Q'20
|
2Q'19
|
Cash
|
3.2
|
(257.6)
|
Non-cash
|
(296.7)
|
(25.4)
|
Total
|
(293.5)
|
(283.0)
|
Finance Expense, Net
The following table sets forth finance (expense) income, net,
stated in millions of Mexican pesos for the quarters ended
June 30, 2020 and 2019.
|
2Q'20
|
2Q'19
|
(Increase)
decrease
|
Interest
expense
|
(2,885.1)
|
(2,576.3)
|
(308.8)
|
Interest
income
|
451.8
|
349.0
|
102.8
|
Foreign exchange
gain, net
|
2,351.2
|
325.0
|
2,026.2
|
Other finance
expense, net
|
(6.8)
|
(366.2)
|
359.4
|
Finance expense,
net
|
(88.9)
|
(2,268.5)
|
2,179.6
|
Finance expense, net, decreased by Ps.2,179.6 million, to
Ps.88.9 million in second-quarter 2020 from Ps.2,268.5 million in
second-quarter 2019.
This favorable change reflected primarily:
(i) a Ps.2,026.2 million
increase in foreign exchange gain, net, resulting primarily from
the favorable effect of a 3.5% appreciation of the Mexican peso
against the U.S. dollar in second-quarter 2020 compared with a 1.2%
appreciation in second-quarter 2019, on a higher average net U.S.
dollar liability position;
(ii) a Ps.359.4 million
decrease in other finance expense, net, resulting from a lower loss
in fair value of our derivative contracts in second-quarter 2020;
and
(iii) a Ps.102.8 million
increase in interest income explained primarily by a higher average
amount of cash and cash equivalents in second-quarter
2020.
These favorable variances were partially offset by a Ps.308.8
million increase in interest expense, primarily due to a higher
average principal amount of debt in second-quarter 2020.
Share of Income of Associates and Joint Ventures, Net
Share of income of associates and joint ventures, net, decreased
by Ps.26.2 million, or 16.0%, to Ps.137.6 million in second-quarter
2020 from Ps.163.8 million in second-quarter 2019. This decrease
reflected mainly a lower share of the estimated income of Univision
Holdings, Inc. ("UHI"), the controlling company of Univision
Communications Inc., which was partially offset by a higher share
of income of Ocesa Entretenimiento, S.A. de C.V. ("OCEN"), a live
entertainment company in Mexico,
Central America and Colombia, primarily in connection with a share
of income related to the period in which we classified OCEN as a
current asset held for sale.
Share of income of associates and joint ventures, net, for the
second-quarter 2020, includes primarily our share of income of UHI
and OCEN.
Income Taxes
Income taxes increased by Ps.10.6 million, or 1.4%, to Ps.752.5
million in second-quarter 2020 compared with Ps.741.9 million in
second-quarter 2019. This increase reflected a higher income tax
base, primarily in connection with the appreciation of the Mexican
peso against the U.S. dollar in second-quarter 2020, which effect
was offset by a lower effective income tax rate.
Net Income Attributable to Non-controlling Interests
Net income attributable to non-controlling interests decreased
by Ps.94.4 million, or 27.4%, to Ps.249.9 million in second-quarter
2020, compared with Ps.344.3 million in second-quarter 2019. This
decrease reflected primarily a lower portion of net income
attributable to non-controlling interests in our Sky segment.
Capital Expenditures
During second-quarter 2020, we invested approximately
U.S.$196.4 million in property, plant
and equipment as capital expenditures. The following table sets
forth the breakdown by segment of capital expenditures for
second-quarter 2020 and 2019.
Capital
Expenditures
Millions of
U.S.$
|
2Q'20
|
2Q'19
|
Cable
|
135.9
|
187.3
|
Sky
|
53.8
|
38.0
|
Content and Other
Businesses
|
6.7
|
14.3
|
Total
|
196.4
|
239.6
|
For the full year 2020, we maintain our guidance in capital
expenditures is in the 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 June 30, 2020 and December
31, 2019. Amounts are stated in millions of Mexican
pesos.
|
June 30,
2020
|
December 31,
2019
|
Increase
(decrease)
|
Current portion of
long-term debt
|
617.0
|
491.9
|
125.1
|
Long-term debt, net
of current portion
|
153,204.7
|
120,444.7
|
32,760.0
|
Total debt
1
|
153,821.7
|
120,936.6
|
32,885.1
|
Current portion of
lease liabilities
|
1,486.3
|
1,257.8
|
228.5
|
Long-term lease
liabilities, net of current portion
|
8,593.0
|
8,105.8
|
487.2
|
Total lease
liabilities
|
10,079.3
|
9,363.6
|
715.7
|
Current portion of
other notes payable
|
-
|
1,324.1
|
(1,324.1)
|
Total other notes
payable
|
-
|
1,324.1
|
(1,324.1)
|
Total debt, lease
liabilities and other notes payable
|
163,901.0
|
131,624.3
|
32,276.7
|
1 As of June 30, 2020 and
December 31, 2019, total debt is presented net of finance costs in
the amount of Ps.1,427.6 million and Ps.1,441.6 million,
respectively.
|
As of June 30, 2020, our
consolidated net debt position (total debt and lease liabilities,
less cash and cash equivalents, temporary investments, and
non-current investments in financial instruments) was Ps.109,037.5
million. As of June 30, 2020, the
non-current investments in financial instruments amounted to an
aggregate of Ps.9,381.7 million.
On June 19, 2020 Standard &
Poor´s Global Ratings ratified the BBB+ ratings for the Company and
on June 24, 2020 Fitch Ratings also
ratified the BBB+ ratings for the Company.
Radiópolis
On July 2, 2020, we concluded the
sale of our 50% equity stake in Sistema Radiópolis, S.A. de C.V.
("Radiópolis") in the amount of Ps.1,248 million, of which Ps.713.4
million were paid in cash by the acquirer in the first half of
2020, and received the payment of a dividend from Radiópolis in the
amount of Ps.285.6 million. As of June 30,
2020, the consolidated net assets of Radiópolis were
presented as current assets and liabilities held for sale in our
consolidated statement of financial position.
Shares Outstanding
As of June 30, 2020 and
December 31, 2019, our shares
outstanding amounted to 329,940.8 million and 337,244.3 million
shares, respectively, and our CPO equivalents outstanding amounted
to 2,820.0 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 June 30, 2020 and
December 31, 2019, the GDS (Global
Depositary Shares) equivalents outstanding amounted to 564.0
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 second quarter 2020, the Organization of American States
extended its recognition to Televisa for implementing a social
responsibility campaign due to the contingency derived from the
COVID-19 outbreak.
In addition, the Company was selected as a constituent of the
S&P/BMV Total Mexico ESG Index, recently launched by S&P
Dow Jones and the Mexican Stock Exchange.
Furthermore, Televisa was nominated by the 2020 Latin American
Sustainable Leaders Agenda (ALAS20) initiative as "Leading Company
in Sustainability" and "Leading Company in Corporate
Governance".
COVID-19 Impact
The COVID-19 pandemic has affected our business, financial
position and results of operations for the quarter ended
June 30, 2020, and it is currently
difficult to predict the degree of the impact on the third 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.
While the pandemic has evolved and some parts of Mexico have started to resume activities
partially, a significant part of the population is still
implementing social distancing and shelter-in-place policies. As a
result, during the quarter ended June 30,
2020, this has affected, and is still affecting the ability
of our employees, suppliers and customers to conduct their
functions and businesses in their typical manner. The Mexican
Government has established a plan to reactivate economic activities
in accordance with color-based phases determined on a weekly basis
in every state of the country. To this date, most of the country's
states are on phase red or orange, meaning most of non-essential
economic activities remain closed or, in the case of orange, open
with strict limitations. Furthermore, federal and local governments
have also established guidelines for businesses re-openings, which
may be burdensome or expensive to implement. 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. To date, our "Stay at home with Televisa"
campaign, which promotes serenity, entertainment and social
cohesion among audiences and brands, has reached 46 million
people.
As described above, our Content business faced a significant
reduction in the demand for advertising during the quarter ended
June 30, 2020 and 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. We have
recently re-started our production of new content following the
requirements and health guidelines imposed by the Mexican
Government.
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, were
suspended for most of the quarter ended June
30, 2020, but some of them have recently started to operate
again. Moreover, during the quarter ended June 30, 2020, most of our non-essential
businesses, including casinos, were closed. When local authorities
start to approve the re-opening of these venues in the cities where
we operate, rules will be enacted which may include capacity and
operating hours restrictions; these may affect the results of our
Other Businesses segment in the following months. As of this
date, just one of our casinos has re-started operations.
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 are
available on the "Reports and Filings" section of our investor
relations website at televisair.com.
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 JUNE 30,
2020 AND DECEMBER 31, 2019
|
(Millions of
Mexican Pesos)
|
|
|
June 30,
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
(Unaudited)
|
|
(Audited)
1
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
Ps.
|
45,481.8
|
|
|
Ps.
|
27,452.3
|
|
Trade notes and
accounts receivable, net
|
|
22,927.1
|
|
|
|
14,486.2
|
|
Other accounts and
notes receivable, net
|
|
11,843.6
|
|
|
|
10,692.9
|
|
Derivative financial
instruments
|
|
1,438.7
|
|
|
|
1.7
|
|
Due from related
parties
|
|
769.9
|
|
|
|
814.4
|
|
Transmission rights
and programming
|
|
6,259.0
|
|
|
|
6,479.3
|
|
Inventories
|
|
1,290.8
|
|
|
|
1,151.4
|
|
Contract
costs
|
|
1,397.1
|
|
|
|
1,379.4
|
|
Assets held for
sale
|
|
1,675.1
|
|
|
|
1,675.4
|
|
Other current
assets
|
|
4,641.5
|
|
|
|
3,298.1
|
|
Total current
assets
|
|
97,724.6
|
|
|
|
67,431.1
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
25.8
|
|
|
|
2.9
|
|
Transmission rights
and programming
|
|
8,080.4
|
|
|
|
7,901.6
|
|
Investments in
financial instruments
|
|
29,658.6
|
|
|
|
44,265.9
|
|
Investments in
associates and joint ventures
|
|
6,453.9
|
|
|
|
9,762.4
|
|
Property, plant and
equipment, net
|
|
82,897.0
|
|
|
|
83,329.2
|
|
Right-of-use
assets
|
|
7,165.8
|
|
|
|
7,553.1
|
|
Intangible assets,
net
|
|
42,949.3
|
|
|
|
43,329.0
|
|
Deferred income tax
assets
|
|
31,840.1
|
|
|
|
24,185.1
|
|
Contract
costs
|
|
2,642.5
|
|
|
|
2,311.8
|
|
Other
assets
|
|
203.4
|
|
|
|
271.8
|
|
Total non-current
assets
|
|
211,916.8
|
|
|
|
222,912.8
|
|
Total
assets
|
Ps.
|
309,641.4
|
|
|
Ps.
|
290,343.9
|
|
1
Our 40% equity interest in OCEN in the amount of Ps.694.0 million
as of December 31, 2019, was previously reported as part of current
assets held for sale, and has been classified to investments in
associates and joint ventures as of that date to conform with the
presentation of this investment as of June 30, 2020.
|
GRUPO TELEVISA,
S.A.B.
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
AS OF JUNE 30,
2020 AND DECEMBER 31, 2019
|
(Millions of
Mexican Pesos)
|
|
|
June 30,
|
|
December
31,
|
|
2020
|
|
2019
|
LIABILITIES
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
Ps.
|
617.0
|
|
|
Ps.
|
491.9
|
|
Interest
payable
|
|
2,315.6
|
|
|
|
1,943.9
|
|
Current portion of
lease liabilities
|
|
1,486.3
|
|
|
|
1,257.8
|
|
Current portion of
other notes payable
|
|
-
|
|
|
|
1,324.1
|
|
Derivative financial
instruments
|
|
-
|
|
|
|
568.8
|
|
Trade accounts payable
and accrued expenses
|
|
26,453.8
|
|
|
|
20,909.7
|
|
Customer deposits and
advances
|
|
13,333.7
|
|
|
|
5,779.8
|
|
Other advances related
to the Radiopolis' sale
|
|
713.4
|
|
|
|
-
|
|
Income taxes
payable
|
|
1,718.6
|
|
|
|
2,470.2
|
|
Other taxes
payable
|
|
4,292.8
|
|
|
|
3,448.0
|
|
Employee
benefits
|
|
1,123.5
|
|
|
|
911.9
|
|
Due to related
parties
|
|
433.9
|
|
|
|
644.2
|
|
Liabilities related to
assets held for sale
|
|
374.6
|
|
|
|
432.8
|
|
Other current
liabilities
|
|
2,449.6
|
|
|
|
2,202.9
|
|
Total current
liabilities
|
|
55,312.8
|
|
|
|
42,386.0
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term debt, net of
current portion
|
|
153,204.7
|
|
|
|
120,444.7
|
|
Lease liabilities, net
of current portion
|
|
8,593.0
|
|
|
|
8,105.8
|
|
Derivative financial
instruments
|
|
1,493.7
|
|
|
|
346.6
|
|
Income taxes
payable
|
|
753.8
|
|
|
|
1,759.7
|
|
Deferred income tax
liabilities
|
|
2,925.9
|
|
|
|
7,052.2
|
|
Post-employment
benefits
|
|
1,531.9
|
|
|
|
1,468.1
|
|
Other long-term
liabilities
|
|
3,101.8
|
|
|
|
3,376.6
|
|
Total non-current
liabilities
|
|
171,604.8
|
|
|
|
142,553.7
|
|
Total
liabilities
|
|
226,917.6
|
|
|
|
184,939.7
|
|
|
|
|
|
|
|
|
|
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
|
|
80,374.3
|
|
|
|
75,666.1
|
|
Net (loss) income for
the period
|
|
(7,912.4)
|
|
|
|
4,626.1
|
|
|
|
74,600.9
|
|
|
|
82,431.2
|
|
Accumulated other
comprehensive (loss) income, net
|
|
(14,805.2)
|
|
|
|
1,320.4
|
|
Shares
repurchased
|
|
(13,904.3)
|
|
|
|
(14,018.8)
|
|
|
|
45,891.4
|
|
|
|
69,732.8
|
|
Equity attributable to
stockholders of the Company
|
|
66,689.0
|
|
|
|
90,530.4
|
|
Non-controlling
interests
|
|
16,034.8
|
|
|
|
14,873.8
|
|
Total
equity
|
|
82,723.8
|
|
|
|
105,404.2
|
|
Total liabilities and
equity
|
Ps.
|
309,641.4
|
|
|
Ps.
|
290,343.9
|
|
|
|
|
|
|
|
|
|
GRUPO TELEVISA,
S.A.B.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME FOR THE
|
THREE AND SIX
MONTHS ENDED JUNE 30, 2020 AND 2019
|
(Millions of
Mexican Pesos)
|
|
|
|
Three months ended
June 30,
|
|
|
|
Six months ended
June 30,
|
|
|
2020
|
|
2019
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
Ps.
|
22,407.2
|
|
|
Ps.
|
24,307.6
|
|
|
|
Ps.
|
45,635.9
|
|
|
Ps.
|
47,702.8
|
|
|
Cost of
sales
|
|
|
13,941.8
|
|
|
|
13,815.4
|
|
|
|
|
27,679.8
|
|
|
|
27,079.4
|
|
|
Selling
expenses
|
|
|
2,538.4
|
|
|
|
2,782.6
|
|
|
|
|
5,256.4
|
|
|
|
5,546.9
|
|
|
Administrative
expenses
|
|
|
2,940.3
|
|
|
|
3,316.6
|
|
|
|
|
6,571.3
|
|
|
|
7,024.2
|
|
|
Income before other
expense
|
|
|
2,986.7
|
|
|
|
4,393.0
|
|
|
|
|
6,128.4
|
|
|
|
8,052.3
|
|
|
Other expense,
net
|
|
|
(293.5)
|
|
|
|
(283.0}
|
|
|
|
|
(8.6)
|
|
|
|
(471.9)
|
|
|
Operating
income
|
|
|
2,693.2
|
|
|
|
4,110.0
|
|
|
|
|
6,119.8
|
|
|
|
7,580.4
|
|
|
Finance
expense
|
|
|
(2,891.9)
|
|
|
|
(2,942.5)
|
|
|
|
|
(11,663.5)
|
|
|
|
(5,652.1)
|
|
|
Finance
income
|
|
|
2,803.0
|
|
|
|
674.0
|
|
|
|
|
2,867.0
|
|
|
|
1,109.5
|
|
|
Finance expense,
net
|
|
|
(88.9)
|
|
|
|
(2,268.5)
|
|
|
|
|
(8,796.5)
|
|
|
|
(4,542.6)
|
|
|
Share of income
(loss) of associates and joint
ventures,
net
|
|
|
137.6
|
|
|
|
163.8
|
|
|
|
|
(5,211.0)
|
|
|
|
329.6
|
|
|
Income (loss) before
income taxes
|
|
|
2,741.9
|
|
|
|
2,005.3
|
|
|
|
|
(7,887.7)
|
|
|
|
3,367.4
|
|
|
Income taxes
(expense) benefits
|
|
|
(752.5)
|
|
|
|
(741.9)
|
|
|
|
|
973.4
|
|
|
|
(1,245.9)
|
|
|
Net income
(loss)
|
|
Ps.
|
1,989.4
|
|
|
Ps.
|
1,263.4
|
|
|
|
Ps.
|
(6,914.3)
|
|
|
Ps.
|
2,121.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the
Company
|
|
Ps.
|
1,739.5
|
|
|
Ps.
|
919.1
|
|
|
|
Ps.
|
(7,912.4)
|
|
|
Ps.
|
1,460.8
|
|
|
Non-controlling
interests
|
|
|
249.9
|
|
|
|
344.3
|
|
|
|
|
998.1
|
|
|
|
660.7
|
|
|
Net income
(loss)
|
|
Ps.
|
1,989.4
|
|
|
Ps.
|
1,263.4
|
|
|
|
Ps.
|
(6,914.3)
|
|
|
Ps.
|
2,121.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per CPO attributable to
stockholders of the
Company
|
|
Ps.
|
0.61
|
|
|
Ps.
|
0.32
|
|
|
|
Ps.
|
(2.78}
|
|
|
Ps.
|
0.51
|
|
|
View original
content:http://www.prnewswire.com/news-releases/televisa-reports-second-quarter-2020-results-301089740.html
SOURCE Grupo Televisa, S.A.B.