UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2020

 
GRUPO TELEVISA, S.A.B.
(Translation of registrant’s name into English)
 

Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico City, Mexico
(Address of principal executive offices)
 


(Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.)

Form 20-F   Form 40-F  

(Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).)

Yes ☐   No ☒

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).)


Yes ☐   No ☒



TLEVISA

Consolidated

Ticker:       TLEVISA

Quarter:     2     Year:    2020

Quarterly Financial Information

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[105000] Management commentary


Management commentary
Mexico City, July 7, 2020 — 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.

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Disclosure of nature of business
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.


Disclosure of management's objectives and its strategies for meeting those objectives
We intend to leverage our position as a leading media company in the Spanish-speaking world to continue expanding our business while maintaining profitability and financial discipline. We intend to do so by maintaining our leading position in the Mexican television market, by continuing to produce high quality programming and by improving our sales and marketing efforts while maintaining high operating margins and expanding our cable business.
We also intend to continue developing and expanding Sky, our DTH platform, and our cable business. We will continue to strengthen our position and will continue making additional investments, which could be substantial in size, in the cable industry in accordance with the consolidation of the cable market in Mexico.
We intend to continue to expand our business by developing new business initiatives and/or through business acquisitions and investments. However, we continue to evaluate our portfolio of assets, in order to determine whether to dispose of select non-core operations.


Disclosure of entity's most significant resources, risks and relationships
We expect to fund our operating cash needs during 2020, other than cash needs in connection with any potential investments and acquisitions, through a combination of cash from operations and cash on hand. We intend to finance our potential investments or acquisitions in 2020 through available cash from operations, cash on hand, equity securities and/or the incurrence of debt, or a combination thereof. The amount of borrowings required to fund these cash needs in 2020 will depend upon the timing of such transactions and the timing of cash payments from advertisers under our advertising sales plan.
 
The investing public should consider the risks stated as follows, as well as the risks described in “Key Information-Risk Factors” in the Company’s 2019 Annual Report and Form 20-F, which are not the only risks and uncertainties faced by the Company. Risks and uncertainties unknown by the Company, as well as those that the Company currently considers as not relevant, could affect its operations and activities.

Risk Factors Related to the COVID-19 Pandemic:

COVID-19 Pandemic may have a material adverse effect on our business, financial position and results of operations.
We cannot predict what effects the COVID-19 relief plan recently announced by the Mexican Federal Government will have in our results of operations and the overall economy.

Risk Factors Related with Political Developments:

Imposition of fines by regulators and other authorities could adversely affect our financial condition and results of operations
Social Security Law
Federal Labor Law
Mexican tax laws
Regulations of the General Health Law on advertising
Changes in U.S. tax law
Mexican Securities Market Law
Renewal or revocation of our concessions

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Risk Factors Related to our Business:

Control of a stockholder
Measures for the prevention of the taking of control
Competition
Seasonal nature of our business
Loss of transmission or loss of the use of satellite transponders
Incidents affecting our network and information systems or other technologies
Weaknesses in internal controls over financial reporting
Results of operations of UHI
Uncertainty in global financial markets
Currency fluctuations or the devaluation and depreciation of the Mexican peso
Renegotiation of the Trade Agreements or other changes in foreign policy by the new or currency presidential administration in the United States
Inflation Rates and High Interest Rates in Mexico
Political events in Mexico 



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.
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Disclosure of results of operations and prospects

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

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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%.


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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.

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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.

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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.



Financial position, liquidity and capital resources

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.

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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.


Internal control


Disclosure of critical performance measures and indicators that management uses to evaluate entity's performance against stated objectives


 
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
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)


10 of 95


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.
 

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”.
 

Additional Information Available on Website


The information in this management commentary 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.
 

Disclaimer
 
This management commentarycontains forward-looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in these management commentary 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 these management commentary 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.  

11 of 95


[110000] General information about financial statements

Ticker:
TLEVISA
Period covered by financial statements:
2020-01-01 TO 2020-06-30
Date of end of reporting period:
2020-06-30
Name of reporting entity or other means of identification:
TLEVISA
Description of presentation currency:
MXN
Level of rounding used in financial statements:
THOUSANDS OF MEXICAN PESOS
Consolidated:
YES
Number of quarter:
2
Type of issuer:
ICS
Explanation of change in name of reporting entity or other means of identification from end of preceding reporting period:
 
Description of nature of financial statements:
 


Disclosure of general information about financial statements

Corporate Information
Grupo Televisa, S.A.B. (the “Company”) is a limited liability public stock corporation (“Sociedad Anónima Bursátil” or “S.A.B.”), incorporated under the laws of Mexico. Pursuant to the terms of the Company’s bylaws (“Estatutos Sociales”), its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of “Certificados de Participación Ordinarios” or “CPOs” on the Mexican Stock Exchange (“Bolsa Mexicana de Valores”) under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares or GDSs, on the New York Stock Exchange, or NYSE, under the ticker symbol TV. The Company’s principal executive offices are located at Avenida Vasco de Quiroga 2000, Colonia Santa Fe, 01210 Ciudad de México, México.

Basis of Preparation and Accounting Policies
The interim condensed consolidated financial statements of the Group, as of June 30, 2020 and December 31, 2019, and for the six months ended June 30, 2020 and 2019, are unaudited, and have been prepared in accordance with the guidelines provided by the International Accounting Standard 34, Interim Financial Reporting. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included herein.

The interim unaudited condensed consolidated financial statements should be read in conjunction with the Group’s audited consolidated financial statements and notes thereto for the years ended December 31, 2019 and 2018, which have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board, and include, among other disclosures, the Group’s most significant accounting policies, which were applied on a consistent basis as of June 30, 2020. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2020 did not have a significant impact in these interim un audited condensed consolidated financial statements.


12 of 95



Follow-up of analysis


The financial institutions that perform financial analysis on the securities of Grupo Televisa, S.A.B., are as follows:

Institution:
 
   Barclays
   Bradesco
   BTG Pactual
   BofA Securities
   Credit Suisse
   Evercore
   Goldman Sachs
   HSBC
   Itaú Securities
   JPMorgan  
   Morgan Stanley
   New Street

13 of 95


[210000] Statement of financial position, current/non-current

Concept
Close Current Quarter
2020-06-30
Close Previous Exercise
2019-12-31
Statement of financial position
   
Assets
   
Current assets
   
Cash and cash equivalents
45,481,794,000
27,452,265,000
Trade and other current receivables
35,535,969,000
25,491,160,000
Current tax assets, current
4,646,233,000
3,800,379,000
Other current financial assets
1,438,662,000
1,715,000
Current inventories
1,290,760,000
1,151,421,000
Current biological assets
0
0
Other current non-financial assets
[1] 7,656,110,000
7,858,658,000
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
96,049,528,000
65,755,598,000
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
1,675,108,000
1,675,426,000
Total current assets
97,724,636,000
67,431,024,000
Non-current assets
   
Trade and other non-current receivables
0
0
Current tax assets, non-current
0
0
Non-current inventories
0
0
Non-current biological assets
0
0
Other non-current financial assets
29,684,395,000
44,268,776,000
Investments accounted for using equity method
0
0
Investments in subsidiaries, joint ventures and associates
6,453,882,000
9,762,432,000
Property, plant and equipment
82,896,955,000
83,329,232,000
Investment property
0
0
Right-of-use assets that do not meet definition of investment property
7,165,780,000
7,553,052,000
Goodwill
14,113,626,000
14,113,626,000
Intangible assets other than goodwill
28,835,703,000
29,215,328,000
Deferred tax assets
31,840,109,000
24,185,148,000
Other non-current non-financial assets
[2] 10,926,361,000
10,485,274,000
Total non-current assets
211,916,811,000
222,912,868,000
Total assets
309,641,447,000
290,343,892,000
Equity and liabilities
   
Liabilities
   
Current liabilities
   
Trade and other current payables
48,798,264,000
33,894,040,000
Current tax liabilities, current
1,718,550,000
2,470,249,000
Other current financial liabilities
2,932,569,000
4,328,652,000
Current lease liabilities
1,486,288,000
1,257,766,000
Other current non-financial liabilities
0
0
Current provisions
   
Current provisions for employee benefits
0
0
Other current provisions
2,579,000
2,423,000
Total current provisions
2,579,000
2,423,000
Total current liabilities other than liabilities included in disposal groups classified as held for sale
54,938,250,000
41,953,130,000
Liabilities included in disposal groups classified as held for sale
374,615,000
432,812,000
Total current liabilities
55,312,865,000
42,385,942,000
Non-current liabilities
   
Trade and other non-current payables
2,152,337,000
2,459,157,000
Current tax liabilities, non-current
753,770,000
1,759,719,000

14 of 95


Concept
Close Current Quarter
2020-06-30
Close Previous Exercise
2019-12-31
Other non-current financial liabilities
154,698,342,000
120,791,259,000
Non-current lease liabilities
8,593,042,000
8,105,754,000
Other non-current non-financial liabilities
0
0
Non-current provisions
   
Non-current provisions for employee benefits
1,531,859,000
1,468,112,000
Other non-current provisions
949,492,000
917,483,000
Total non-current provisions
2,481,351,000
2,385,595,000
Deferred tax liabilities
2,925,947,000
7,052,233,000
Total non-current liabilities
171,604,789,000
142,553,717,000
Total liabilities
226,917,654,000
184,939,659,000
Equity
   
Issued capital
4,907,765,000
4,907,765,000
Share premium
15,889,819,000
15,889,819,000
Treasury shares
13,904,194,000
14,018,847,000
Retained earnings
74,600,864,000
82,431,278,000
Other reserves
(14,805,218,000)
1,320,451,000
Total equity attributable to owners of parent
66,689,036,000
90,530,466,000
Non-controlling interests
16,034,757,000
14,873,767,000
Total equity
82,723,793,000
105,404,233,000
Total equity and liabilities
309,641,447,000
290,343,892,000


15 of 95


[310000] Statement of comprehensive income, profit or loss, by function of expense

Concept
Accumulated Current Year
2020-01-01 - 2020-06-30
Accumulated Previous Year
2019-01-01 - 2019-06-30
Quarter Current Year
2020-04-01 - 2020-06-30
Quarter Previous Year
2019-04-01 - 2019-06-30
Profit or loss
       
Profit (loss)
       
Revenue
45,635,946,000
47,702,832,000
22,407,158,000
24,307,587,000
Cost of sales
27,679,839,000
27,079,432,000
13,941,797,000
13,815,417,000
Gross profit
17,956,107,000
20,623,400,000
8,465,361,000
10,492,170,000
Distribution costs
5,256,369,000
5,546,949,000
2,538,354,000
2,782,565,000
Administrative expenses
6,571,306,000
7,024,186,000
2,940,303,000
3,316,646,000
Other income
0
0
0
0
Other expense
8,591,000
471,904,000
293,519,000
282,994,000
Profit (loss) from operating activities
6,119,841,000
7,580,361,000
2,693,185,000
4,109,965,000
Finance income
2,867,008,000
1,109,483,000
2,803,033,000
674,038,000
Finance costs
11,663,496,000
5,652,049,000
2,891,922,000
2,942,514,000
Share of profit (loss) of associates and joint ventures accounted for using equity method
(5,211,037,000)
329,639,000
137,502,000
163,818,000
Profit (loss) before tax
(7,887,684,000)
3,367,434,000
2,741,798,000
2,005,307,000
Tax income (expense)
(973,357,000)
1,245,951,000
752,487,000
741,964,000
Profit (loss) from continuing operations
(6,914,327,000)
2,121,483,000
1,989,311,000
1,263,343,000
Profit (loss) from discontinued operations
0
0
0
0
Profit (loss)
(6,914,327,000)
2,121,483,000
1,989,311,000
1,263,343,000
Profit (loss), attributable to
       
Profit (loss), attributable to owners of parent
(7,912,401,000)
1,460,815,000
1,739,497,000
919,097,000
Profit (loss), attributable to non-controlling interests
998,074,000
660,668,000
249,814,000
344,246,000
Earnings per share
       
Earnings per share
       
Earnings per share
       
Basic earnings per share
       
Basic earnings (loss) per share from continuing operations
(2.78)
0.51
0.61
0.32
Basic earnings (loss) per share from discontinued operations
0
0
0
0
Total basic earnings (loss) per share
[3] (2.78)
0.51
0.61
0.32
Diluted earnings per share
       
Diluted earnings (loss) per share from continuing operations
(2.62)
0.48
0.58
0.3
Diluted earnings (loss) per share from discontinued operations
0
0
0
0
Total diluted earnings (loss) per share
[4] (2.62)
0.48
0.58
0.3

16 of 95


[410000] Statement of comprehensive income, OCI components presented net of tax

Concept
Accumulated Current Year
2020-01-01 - 2020-06-30
Accumulated Previous Year
2019-01-01 - 2019-06-30
Quarter Current Year
2020-04-01 - 2020-06-30
Quarter Previous Year
2019-04-01 - 2019-06-30
Statement of comprehensive income
       
Profit (loss)
(6,914,327,000)
2,121,483,000
1,989,311,000
1,263,343,000
Other comprehensive income
       
Components of other comprehensive income that will not be reclassified to profit or loss, net of tax
       
Other comprehensive income, net of tax, gains (losses) from investments in equity instruments
(16,822,088,000)
(249,650,000)
(216,087,000)
(349,980,000)
Other comprehensive income, net of tax, gains (losses) on revaluation
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on remeasurements of defined benefit plans
0
0
0
0
Other comprehensive income, net of tax, change in fair value of financial liability attributable to change in credit risk of liability
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on hedging instruments that hedge investments in equity instruments
0
0
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss, net of tax
0
0
0
0
Total other comprehensive income that will not be reclassified to profit or loss, net of tax
(16,822,088,000)
(249,650,000)
(216,087,000)
(349,980,000)
Components of other comprehensive income that will be reclassified to profit or loss, net of tax
       
Exchange differences on translation
       
Gains (losses) on exchange differences on translation, net of tax
1,384,365,000
(67,399,000)
(395,397,000)
(8,821,000)
Reclassification adjustments on exchange differences on translation, net of tax
0
0
0
0
Other comprehensive income, net of tax, exchange differences on translation
1,384,365,000
(67,399,000)
(395,397,000)
(8,821,000)
Available-for-sale financial assets
       
Gains (losses) on remeasuring available-for-sale financial assets, net of tax
0
0
0
0
Reclassification adjustments on available-for-sale financial assets, net of tax
0
0
0
0
Other comprehensive income, net of tax, available-for-sale financial assets
0
0
0
0
Cash flow hedges
       
Gains (losses) on cash flow hedges, net of tax
(428,981,000)
(578,572,000)
(688,326,000)
(230,980,000)
Reclassification adjustments on cash flow hedges, net of tax
0
0
0
0
Amounts removed from equity and included in carrying amount of non-financial asset (liability) whose acquisition or incurrence was hedged highly probable forecast transaction, net of tax
0
0
0
0
Other comprehensive income, net of tax, cash flow hedges
(428,981,000)
(578,572,000)
(688,326,000)
(230,980,000)
Hedges of net investment in foreign operations
       
Gains (losses) on hedges of net investments in foreign operations, net of tax
0
0
0
0
Reclassification adjustments on hedges of net investments in foreign operations, net of tax
0
0
0
0
Other comprehensive income, net of tax, hedges of net investments in foreign operations
0
0
0
0

17 of 95


Concept
Accumulated Current Year
2020-01-01 - 2020-06-30
Accumulated Previous Year
2019-01-01 - 2019-06-30
Quarter Current Year
2020-04-01 - 2020-06-30
Quarter Previous Year
2019-04-01 - 2019-06-30
Change in value of time value of options
       
Gains (losses) on change in value of time value of options, net of tax
0
0
0
0
Reclassification adjustments on change in value of time value of options, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of time value of options
0
0
0
0
Change in value of forward elements of forward contracts
       
Gains (losses) on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Reclassification adjustments on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of forward elements of forward contracts
0
0
0
0
Change in value of foreign currency basis spreads
       
Gains (losses) on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Reclassification adjustments on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of foreign currency basis spreads
0
0
0
0
Financial assets measured at fair value through other comprehensive income
       
Gains (losses) on financial assets measured at fair value through other comprehensive income, net of tax
0
(433,000)
0
(45,000)
Reclassification adjustments on financial assets measured at fair value through other comprehensive income, net of tax
0
0
0
0
Amounts removed from equity and adjusted against fair value of financial assets on reclassification out of fair value through other comprehensive income measurement category, net of tax
0
0
0
0
Other comprehensive income, net of tax, financial assets measured at fair value through other comprehensive income
0
(433,000)
0
(45,000)
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss, net of tax
(96,049,000)
(117,693,000)
(84,600,000)
(61,648,000)
Total other comprehensive income that will be reclassified to profit or loss, net of tax
859,335,000
(764,097,000)
(1,168,323,000)
(301,494,000)
Total other comprehensive income
(15,962,753,000)
(1,013,747,000)
(1,384,410,000)
(651,474,000)
Total comprehensive income
(22,877,080,000)
1,107,736,000
604,901,000
611,869,000
Comprehensive income attributable to
       
Comprehensive income, attributable to owners of parent
(24,038,070,000)
446,871,000
441,432,000
265,908,000
Comprehensive income, attributable to non-controlling interests
1,160,990,000
660,865,000
163,469,000
345,961,000

18 of 95

[520000] Statement of cash flows, indirect method

Concept
Accumulated Current Year
2020-01-01 - 2020-06-30
Accumulated Previous Year
2019-01-01 - 2019-06-30
Statement of cash flows
   
Cash flows from (used in) operating activities
   
Profit (loss)
(6,914,327,000)
2,121,483,000
Adjustments to reconcile profit (loss)
   
+ Discontinued operations
0
0
+ Adjustments for income tax expense
(973,357,000)
1,245,951,000
+ (-) Adjustments for finance costs
0
0
+ Adjustments for depreciation and amortisation expense
10,385,581,000
10,295,173,000
+ Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
13,601,000
33,787,000
+ Adjustments for provisions
686,657,000
702,603,000
+ (-) Adjustments for unrealised foreign exchange losses (gains)
8,410,534,000
(625,990,000)
+ Adjustments for share-based payments
392,237,000
569,011,000
+ (-) Adjustments for fair value losses (gains)
(2,191,298,000)
668,971,000
- Adjustments for undistributed profits of associates
0
0
+ (-) Adjustments for losses (gains) on disposal of non-current assets
(9,633,000)
191,003,000
+ Share of income of associates and joint ventures
5,211,037,000
(329,639,000)
+ (-) Adjustments for decrease (increase) in inventories
(49,579,000)
(432,603,000)
+ (-) Adjustments for decrease (increase) in trade accounts receivable
(8,074,866,000)
(2,193,103,000)
+ (-) Adjustments for decrease (increase) in other operating receivables
(2,439,564,000)
(2,573,332,000)
+ (-) Adjustments for increase (decrease) in trade accounts payable
5,478,479,000
1,315,508,000
+ (-) Adjustments for increase (decrease) in other operating payables
7,821,357,000
164,163,000
+ Other adjustments for non-cash items
0
0
+ Other adjustments for which cash effects are investing or financing cash flow
0
758,000
+ Straight-line rent adjustment
0
0
+ Amortization of lease fees
0
0
+ Setting property values
0
0
+ (-) Other adjustments to reconcile profit (loss)
207,926,000
221,970,000
+ (-) Total adjustments to reconcile profit (loss)
24,869,112,000
9,254,231,000
Net cash flows from (used in) operations
17,954,785,000
11,375,714,000
- Dividends paid
0
0
+ Dividends received
0
0
- Interest paid
(5,413,305,000)
(4,983,078,000)
+ Interest received
(46,329,000)
(51,725,000)
+ (-) Income taxes refund (paid)
5,152,775,000
6,003,902,000
+ (-) Other inflows (outflows) of cash
0
0
Net cash flows from (used in) operating activities
18,168,986,000
10,303,165,000
Cash flows from (used in) investing activities
   
+ Cash flows from losing control of subsidiaries or other businesses
0
(674,000)
- Cash flows used in obtaining control of subsidiaries or other businesses
0
(107,883,000)
+ Other cash receipts from sales of equity or debt instruments of other entities
0
0
- Other cash payments to acquire equity or debt instruments of other entities
0
0
+ Other cash receipts from sales of interests in joint ventures
0
0
- Other cash payments to acquire interests in joint ventures
0
0
+ Proceeds from sales of property, plant and equipment
499,569,000
1,283,386,000
- Purchase of property, plant and equipment
9,146,171,000
8,859,401,000
+ Proceeds from sales of intangible assets
0
0
- Purchase of intangible assets
531,399,000
1,441,524,000
+ Proceeds from sales of other long-term assets
0
0
- Purchase of other long-term assets
0
0

19 of 95

 

Concept
Accumulated Current Year
2020-01-01 - 2020-06-30
Accumulated Previous Year
2019-01-01 - 2019-06-30
+ Proceeds from government grants
0
0
- Cash advances and loans made to other parties
0
0
+ Cash receipts from repayment of advances and loans made to other parties
0
0
- Cash payments for futures contracts, forward contracts, option contracts and swap contracts
0
0
+ Cash receipts from futures contracts, forward contracts, option contracts and swap contracts
0
0
+ Dividends received
0
452,400,000
- Interest paid
0
0
+ Interest received
0
0
+ (-) Income taxes refund (paid)
0
0
+ (-) Other inflows (outflows) of cash
529,374,000
51,472,000
Net cash flows from (used in) investing activities
(8,648,627,000)
(8,406,458,000)
Cash flows from (used in) financing activities
   
+ Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control
0
0
- Payments from changes in ownership interests in subsidiaries that do not result in loss of control
1,324,063,000
1,294,375,000
+ Proceeds from issuing shares
0
0
+ Proceeds from issuing other equity instruments
0
0
- Payments to acquire or redeem entity's shares
195,597,000
1,094,096,000
- Payments of other equity instruments
0
0
+ Proceeds from borrowings
14,770,695,000
14,006,712,000
- Repayments of borrowings
371,245,000
317,911,000
- Payments of finance lease liabilities
227,362,000
413,531,000
- Payments of lease liabilities
484,117,000
419,432,000
+ Proceeds from government grants
0
0
- Dividends paid
0
1,066,187,000
- Interest paid
4,588,589,000
3,591,148,000
+ (-) Income taxes refund (paid)
0
0
+ (-) Other inflows (outflows) of cash
697,001,000
(1,823,025,000)
Net cash flows from (used in) financing activities
8,276,723,000
3,987,007,000
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
17,797,082,000
5,883,714,000
Effect of exchange rate changes on cash and cash equivalents
   
Effect of exchange rate changes on cash and cash equivalents
232,447,000
(33,905,000)
Net increase (decrease) in cash and cash equivalents
18,029,529,000
5,849,809,000
Cash and cash equivalents at beginning of period
27,452,265,000
32,068,291,000
Cash and cash equivalents at end of period
45,481,794,000
37,918,100,000


20 of 95


[610000] Statement of changes in equity - Accumulated Current



 
Components of equity
Sheet 1 of 3
Issued capital
 
Share premium
 
Treasury shares
 
Retained earnings
 
Revaluation surplus
 
Reserve of exchange differences on translation
 
Reserve of cash flow hedges
 
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
 
Reserve of change in value of time value of options
 
Statement of changes in equity
                 
Equity at beginning of period
4,907,765,000
15,889,819,000
14,018,847,000
82,431,278,000
0
1,280,541,000
(381,753,000)
0
0
Changes in equity
                 
Comprehensive income
                 
Profit (loss)
0
0
0
(7,912,401,000)
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
1,221,449,000
(428,981,000)
0
0
Total comprehensive income
0
0
0
(7,912,401,000)
0
1,221,449,000
(428,981,000)
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
(114,653,000)
81,987,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(114,653,000)
(7,830,414,000)
0
1,221,449,000
(428,981,000)
0
0
Equity at end of period
4,907,765,000
15,889,819,000
13,904,194,000
74,600,864,000
0
2,501,990,000
(810,734,000)
0
0

21 of 95


 
Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
 
Reserve of change in value of foreign currency basis spreads
 
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income
 
Reserve of gains and losses on remeasuring available-for-sale financial assets
 
Reserve of share-based payments
 
Reserve of remeasurements of defined benefit plans
 
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
 
Reserve of gains and losses from investments in equity instruments
 
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
 
Statement of changes in equity
                 
Equity at beginning of period
0
0
1,202,689,000
0
0
(705,611,000)
0
0
0
Changes in equity
                 
Comprehensive income
                 
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
(16,822,088,000)
0
0
0
0
0
0
Total comprehensive income
0
0
(16,822,088,000)
0
0
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(16,822,088,000)
0
0
0
0
0
0
Equity at end of period
0
0
(15,619,399,000)
0
0
(705,611,000)
0
0
0


22 of 95



 
Components of equity
Sheet 3 of 3
Reserve for catastrophe
 
Reserve for equalisation
 
Reserve of discretionary participation features
 
Other comprehensive income
 
Other reserves
Equity attributable to owners of parent
 
Non-controlling interests
 
Equity
 
Statement of changes in equity
               
Equity at beginning of period
0
0
0
(75,415,000)
1,320,451,000
90,530,466,000
14,873,767,000
105,404,233,000
Changes in equity
               
Comprehensive income
               
Profit (loss)
0
0
0
0
0
(7,912,401,000)
998,074,000
(6,914,327,000)
Other comprehensive income
0
0
0
(96,049,000)
(16,125,669,000)
(16,125,669,000)
162,916,000
(15,962,753,000)
Total comprehensive income
0
0
0
(96,049,000)
(16,125,669,000)
(24,038,070,000)
1,160,990,000
(22,877,080,000)
Issue of equity
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
196,640,000
0
196,640,000
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
0
(96,049,000)
(16,125,669,000)
(23,841,430,000)
1,160,990,000
(22,680,440,000)
Equity at end of period
0
0
0
(171,464,000)
(14,805,218,000)
66,689,036,000
16,034,757,000
82,723,793,000
23 of 95


[610000] Statement of changes in equity - Accumulated Previous



 
Components of equity
Sheet 1 of 3
Issued capital
 
Share premium
 
Treasury shares
 
Retained earnings
 
Revaluation surplus
 
Reserve of exchange differences on translation
 
Reserve of cash flow hedges
 
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
 
Reserve of change in value of time value of options
 
Statement of changes in equity
                 
Equity at beginning of period
4,907,765,000
15,889,819,000
14,219,060,000
78,510,909,000
0
1,461,495,000
683,585,000
0
0
Changes in equity
                 
Comprehensive income
                 
Profit (loss)
0
0
0
1,460,815,000
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(67,596,000)
(578,572,000)
0
0
Total comprehensive income
0
0
0
1,460,815,000
0
(67,596,000)
(578,572,000)
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,066,187,000
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
766,000
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
108,150,000
(427,710,000)
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
108,150,000
(32,316,000)
0
(67,596,000)
(578,572,000)
0
0
Equity at end of period
4,907,765,000
15,889,819,000
14,327,210,000
78,478,593,000
0
1,393,899,000
105,013,000
0
0


24 of 95



 
Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
 
Reserve of change in value of foreign currency basis spreads
 
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income
 
Reserve of gains and losses on remeasuring available-for-sale financial assets
 
Reserve of share-based payments
 
Reserve of remeasurements of defined benefit plans
 
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
 
Reserve of gains and losses from investments in equity instruments
 
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
 
Statement of changes in equity
                 
Equity at beginning of period
0
0
2,654,866,000
0
0
(533,203,000)
0
0
0
Changes in equity
                 
Comprehensive income
                 
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
(250,083,000)
0
0
0
0
0
0
Total comprehensive income
0
0
(250,083,000)
0
0
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(250,083,000)
0
0
0
0
0
0
Equity at end of period
0
0
2,404,783,000
0
0
(533,203,000)
0
0
0

25 of 95


 
Components of equity
Sheet 3 of 3
Reserve for catastrophe
 
Reserve for equalisation
 
Reserve of discretionary participation features
 
Other comprehensive income
 
Other reserves
 
Equity attributable to owners of parent
 
Non-controlling interests
 
Equity
 
Statement of changes in equity
               
Equity at beginning of period
0
0
0
160,744,000
4,427,487,000
89,516,920,000
15,013,771,000
104,530,691,000
Changes in equity
               
Comprehensive income
               
Profit (loss)
0
0
0
0
0
1,460,815,000
660,668,000
2,121,483,000
Other comprehensive income
0
0
0
(117,693,000)
(1,013,944,000)
(1,013,944,000)
197,000
(1,013,747,000)
Total comprehensive income
0
0
0
(117,693,000)
(1,013,944,000)
446,871,000
660,865,000
1,107,736,000
Issue of equity
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
1,066,187,000
1,573,622,000
2,639,809,000
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
766,000
(766,000)
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
(535,860,000)
0
(535,860,000)
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
0
(117,693,000)
(1,013,944,000)
(1,154,410,000)
(913,523,000)
(2,067,933,000)
Equity at end of period
0
0
0
43,051,000
3,413,543,000
88,362,510,000
14,100,248,000
102,462,758,000

26 of 95


[700000] Informative data about the Statement of financial position


Concept
Close Current Quarter
2020-06-30
Close Previous Exercise
2019-12-31
Informative data of the Statement of Financial Position
   
Capital stock (nominal)
2,459,154,000
2,459,154,000
Restatement of capital stock
2,448,611,000
2,448,611,000
Plan assets for pensions and seniority premiums
1,288,225,000
1,369,379,000
Number of executives
71
73
Number of employees
43,115
42,875
Number of workers
0
0
Outstanding shares
329,940,809,211
337,244,259,846
Repurchased shares
27,366,462,591
20,063,011,956
Restricted cash
0
0
Guaranteed debt of associated companies
0
0

27 of 95


[700002] Informative data about the Income statement

Concept
Accumulated Current Year
2020-01-01 - 2020-06-30
Accumulated Previous Year
2019-01-01 - 2019-06-30
Quarter Current Year
2020-04-01 - 2020-06-30
Quarter Previous Year
2019-04-01 - 2019-06-30
Informative data of the Income Statement
       
Operating depreciation and amortization
10,385,581,000
10,295,173,000
5,234,078,000
5,079,222,000


28 of 95


[700003] Informative data - Income statement for 12 months

Concept
Current Year
2019-07-01 - 2020-06-30
Previous Year
2018-07-01 - 2019-06-30
Informative data - Income Statement for 12 months
   
Revenue
99,690,295,000
99,471,317,000
Profit (loss) from operating activities
15,544,510,000
15,586,413,000
Profit (loss)
(2,928,997,000)
3,981,067,000
Profit (loss), attributable to owners of parent
(4,747,077,000)
2,495,299,000
Operating depreciation and amortization
21,099,204,000
20,480,450,000


29 of 95


[800001] Breakdown of credits



Institution
Foreign institution (yes/no)
Contract signing date
Expiration date
Interest rate
Denomination
Domestic currency
Foreign currency
Time interval
Time interval
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Banks
 
Foreign trade
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Banks - secured
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Commercial banks
 
BANORTE1
NO
2015-05-15
2022-04-30
TIIE+1.0
120,996,000
120,995,000
731,112,000
                 
HSBC 2
NO
2016-03-08
2023-03-08
7.13
   
1,250,000,000
1,250,000,000
               
SCOTIABANK INVERLAT 3
NO
2016-03-08
2023-03-08
7
 
375,000,000
1,500,000,000
1,125,000,000
               
SANTANDER LOAN 4
NO
2017-11-23
2022-10-21
TIIE+1.25
     
1,495,650,000
               
HSBC 5
NO
2017-11-23
2022-11-22
TIIE+1.30
     
1,994,305,000
               
SCOTIABANK INVERLAT 6
NO
2017-12-07
2023-02-03
TIIE+1.30
     
2,492,258,000
               
SINDICATED LOAN 7
NO
2019-06-05
2024-06-28
TIIE+1.05
       
9,915,521,000
             
REVOLVING CREDIT FACILITY 8
YES
2018-03-26
2022-03-26
TIIE+.87 o 1.125
   
14,726,045,000
                 
TOTAL
       
120,996,000
495,995,000
18,207,157,000
8,357,213,000
9,915,521,000
0
0
0
0
0
0
0
Other banks
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Total banks
 
TOTAL
       
120,996,000
495,995,000
18,207,157,000
8,357,213,000
9,915,521,000
0
0
0
0
0
0
0
Stock market
 
Listed on stock exchange - unsecured
 
SENIOR NOTES 1
YES
2007-05-09
2037-05-11
8.93
         
4,487,734,000
           
SENIOR NOTES 3
YES
2013-05-14
2043-05-14
7.62
         
6,445,725,000
           
NOTES 4
NO
2017-10-09
2027-09-27
8.79
         
4,482,698,000
           
SENIOR NOTES 5
YES
2005-03-18
2025-03-18
6.97
                     
13,638,850,000
SENIOR NOTES 6
YES
2002-03-11
2032-03-11
8.94
                     
6,889,658,000
SENIOR NOTES 7
YES
2009-11-23
2040-01-16
6.97
                     
13,697,151,000
SENIOR NOTES 8
YES
2014-05-13
2045-05-15
5.26
                     
22,613,277,000
SENIOR NOTES 9
YES
2015-11-24
2026-01-30
4.86
                     
6,883,502,000
SENIOR NOTES 10
YES
2015-11-24
2046-01-31
6.44
                     
20,609,550,000
SENIOR NOTES 11
YES
2019-05-21
2049-05-24
5.52
                     
16,976,638,000
TOTAL
       
0
0
0
0
0
15,416,157,000
0
0
0
0
0
101,308,626,000
Listed on stock exchange - secured
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Private placements - unsecured
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Private placements - secured
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Total listed on stock exchanges and private placements
 
TOTAL
       
0
0
0
0
0
15,416,157,000
0
0
0
0
0
[5] 101,308,626,000
Other current and non-current liabilities with cost
 
Other current and non-current liabilities with cost
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0
Total other current and non-current liabilities with cost
 
TOTAL
       
0
0
0
0
0
0
0
0
0
0
0
0


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