Capital Expenditures
During the year ended December 31, 2022, we invested approximately U.S.$859.8 million in property, plant and equipment as capital
expenditures.
The following table sets forth the breakdown by segment of capital expenditures in property, plant and equipment for the years ended
December 31, 2022 and 2021:
|
Capital Expenditures
(Millions of U.S. Dollars)
|
|
2022
|
|
|
2021
|
|
|
Cable
|
|
|
645.9
|
|
|
|
854.5
|
|
|
Sky
|
|
|
193.1
|
|
|
|
244.1
|
|
|
Other Businesses
|
|
|
17.4
|
|
|
|
22.6
|
|
|
Continuing Operations
|
|
|
856.4
|
|
|
|
1,121.2
|
|
|
Discontinued Operations
|
|
|
3.4
|
|
|
|
27.9
|
|
|
Total
|
|
|
859.8
|
|
|
|
1,149.1
|
|
Debt and Lease Liabilities
The following table sets forth our total debt and lease liabilities as of December 31, 2022 and 2021. Amounts are stated in millions of Mexican pesos:
| |
|
December 31, 2022
|
|
|
December 31, 2021
|
|
|
Decrease
|
|
|
Current portion of long-term debt
|
|
|
1,000.0
|
|
|
|
4,106.4
|
|
|
|
(3,106.4
|
)
|
|
Long-term debt, net of current portion
|
|
|
104,240.7
|
|
|
|
121,685.7
|
|
|
|
(17,445.0
|
)
|
|
Total debt (1)
|
|
|
105,240.7
|
|
|
|
125,792.1
|
|
|
|
(20,551.4
|
)
|
|
Current portion of long-term lease liabilities
|
|
|
1,373.2
|
|
|
|
1,478.4
|
|
|
|
(105.2
|
)
|
|
Long-term lease liabilities, net of current portion
|
|
|
6,995.8
|
|
|
|
8,202.2
|
|
|
|
(1,206.4
|
)
|
|
Total lease liabilities
|
|
|
8,369.0
|
|
|
|
9,680.6
|
|
|
|
(1,311.6
|
)
|
|
Total debt and lease liabilities
|
|
|
113,609.7
|
|
|
|
135,472.7
|
|
|
|
(21,863.0
|
)
|
|
(1) As of December 31, 2022 and 2021, total debt is presented net of finance costs in the amount of Ps. 994.7
million and Ps.1,207.1 million, respectively.
|
|
As of December 31, 2022, our consolidated net debt position (total debt and lease liabilities, less cash and cash equivalents and certain non-current
investments in financial instruments) was Ps.59,094.4 million. The aggregate amount of non-current investments in financial instruments included in our consolidated net debt position as of December 31, 2022, amounted to Ps.3,384.3 million.
Shares Outstanding
As of December 31, 2022 and 2021, our shares outstanding amounted to 330,739.7 million and 329,295.9 million shares, respectively, and our CPO
equivalents outstanding amounted to 2,826.8 million and 2,814.5 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 December 31, 2022 and 2021, the GDS (Global Depositary Shares) equivalents outstanding amounted to 565.4 million and 562.9 million GDS equivalents,
respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.
Dividend
The Company’s Board of Directors approved the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series “A”, “B”, “D” and “L”
Shares not in the form of a CPO. This dividend is subject to the approval of the Company’s stockholders.
Disclosure of critical performance measures and indicators that management uses to evaluate entity’s
performance against stated objectives
|
|
|
|
|
Margin
|
|
|
|
|
|
Margin
|
|
|
Change
|
|
| |
|
2022
|
|
|
%
|
|
|
2021
|
|
|
%
|
|
|
%
|
|
|
Net sales
|
|
|
75,526.6
|
|
|
|
100.0
|
|
|
|
73,915.4
|
|
|
|
100.0
|
|
|
|
2.2
|
|
|
Operating segment income1
|
|
|
28,010.1
|
|
|
|
36.8
|
|
|
|
29,378.9
|
|
|
|
39.5
|
|
|
|
(4.7
|
)
|
|
1 The operating segment income margin is calculated as a percentage of segment net sales.
|
|
|
|
|
|
|
Margin
|
|
|
|
|
|
Margin
|
|
|
Change
|
|
|
|
|
2022
|
|
|
%
|
|
|
2021
|
|
|
%
|
|
|
%
|
|
|
Net sales
|
|
|
75,526.6
|
|
|
|
100.0
|
|
|
|
73,915.4
|
|
|
|
100.0
|
|
|
|
2.2
|
|
|
Net income
|
|
|
43,628.8
|
|
|
|
57.8
|
|
|
|
7,354.8
|
|
|
|
10.0
|
|
|
|
493.2
|
|
|
Net income attributable to stockholders of the Company
|
|
|
43,151.2
|
|
|
|
57.1
|
|
|
|
6,055.8
|
|
|
|
8.2
|
|
|
|
612.6
|
|
|
Segment net sales
|
|
|
76,089.6
|
|
|
|
100.0
|
|
|
|
74,435.7
|
|
|
|
100.0
|
|
|
|
2.2
|
|
|
Operating segment income (1)
|
|
|
28,010.1
|
|
|
|
36.8
|
|
|
|
29,378.9
|
|
|
|
39.5
|
|
|
|
(4.7
|
)
|
|
(1) The operating segment income margin is calculated as a percentage of segment net sales.
|
|
|
Net Sales
|
|
2022
|
|
|
%
|
|
|
2021
|
|
|
%
|
|
|
Change
%
|
|
|
Cable
|
|
|
48,411.8
|
|
|
|
63.6
|
|
|
|
48,020.9
|
|
|
|
64.5
|
|
|
|
0.8
|
|
|
Sky
|
|
|
20,339.0
|
|
|
|
26.7
|
|
|
|
22,026.6
|
|
|
|
29.6
|
|
|
|
(7.7
|
)
|
|
Other Businesses
|
|
|
7,338.8
|
|
|
|
9.7
|
|
|
|
4,388.2
|
|
|
|
5.9
|
|
|
|
67.2
|
|
|
Segment Net Sales
|
|
|
76,089.6
|
|
|
|
100.0
|
|
|
|
74,435.7
|
|
|
|
100.0
|
|
|
|
2.2
|
|
|
Intersegment Operations1
|
|
|
(563.0
|
)
|
|
|
|
|
|
|
(520.3
|
)
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
75,526.6
|
|
|
|
|
|
|
|
73,915.4
|
|
|
|
|
|
|
|
2.2
|
|
|
Operating Segment Income2
|
|
2022
|
|
|
Margin
%
|
|
|
2021
|
|
|
Margin
%
|
|
|
Change
%
|
|
|
Cable
|
|
|
19,902.8
|
|
|
|
41.1
|
|
|
|
20,285.0
|
|
|
|
42.2
|
|
|
|
(1.9
|
)
|
|
Sky
|
|
|
6,416.3
|
|
|
|
31.5
|
|
|
|
8,504.2
|
|
|
|
38.6
|
|
|
|
(24.6
|
)
|
|
Other Businesses
|
|
|
1,691.0
|
|
|
|
23.0
|
|
|
|
589.7
|
|
|
|
13.4
|
|
|
|
186.8
|
|
|
Operating Segment Income2
|
|
|
28,010.1
|
|
|
|
36.8
|
|
|
|
29,378.9
|
|
|
|
39.5
|
|
|
|
(4.7
|
)
|
|
Corporate Expenses
|
|
|
(1,538.1
|
)
|
|
|
(2.0
|
)
|
|
|
(2,351.3
|
)
|
|
|
(3.2
|
)
|
|
|
34.6
|
|
|
Depreciation and Amortization
|
|
|
(21,117.4
|
)
|
|
|
(28.0
|
)
|
|
|
(20,053.3
|
)
|
|
|
(27.1
|
)
|
|
|
(5.3
|
)
|
|
Other (expense) income, net
|
|
|
(846.7
|
)
|
|
|
(1.1
|
)
|
|
|
3,716.2
|
|
|
|
5.0
|
|
|
|
n/a
|
|
|
Intersegment Operations1
|
|
|
(120.4
|
)
|
|
|
(0.2
|
)
|
|
|
(1.6
|
)
|
|
|
(0.0
|
)
|
|
|
n/a
|
|
|
Operating Income
|
|
|
4,387.5
|
|
|
|
5.8
|
|
|
|
10,688.9
|
|
|
|
14.5
|
|
|
|
(59.0
|
)
|
|
(1) For segment reporting purposes, intersegment operations are included in each of the segment operations.
|
|
|
(2) Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other income or
expense, net.
|
|
|
Net Sales
|
|
|
4Q’22
|
|
|
%
|
|
|
|
4Q’21
|
|
|
%
|
|
|
Change
%
|
|
|
Cable
|
|
|
12,463.3
|
|
|
|
64.2
|
|
|
|
12,296.2
|
|
|
|
64.8
|
|
|
|
1.4
|
|
|
Sky
|
|
|
4,936.6
|
|
|
|
25.5
|
|
|
|
5,372.3
|
|
|
|
28.3
|
|
|
|
(8.1
|
)
|
|
Other Businesses
|
|
|
2,002.3
|
|
|
|
10.3
|
|
|
|
1,303.3
|
|
|
|
6.9
|
|
|
|
53.6
|
|
|
Segment Net Sales
|
|
|
19,402.2
|
|
|
|
100.0
|
|
|
|
18,971.8
|
|
|
|
100.0
|
|
|
|
2.3
|
|
|
Intersegment Operations1
|
|
|
(269.9
|
)
|
|
|
|
|
|
|
(142.7
|
)
|
|
|
|
|
|
|
-
|
|
|
Net Sales
|
|
|
19,132.3
|
|
|
|
|
|
|
|
18,829.1
|
|
|
|
|
|
|
|
1.6
|
|
|
Operating Segment Income2
|
|
|
4Q’22
|
|
|
Margin
%
|
|
|
|
4Q’21
|
|
|
Margin
%
|
|
|
Change
%
|
|
|
Cable
|
|
|
5,059.3
|
|
|
|
40.6
|
|
|
|
5,365.8
|
|
|
|
43.6
|
|
|
|
(5.7
|
)
|
|
Sky
|
|
|
1,151.6
|
|
|
|
23.3
|
|
|
|
1,845.4
|
|
|
|
34.4
|
|
|
|
(37.6
|
)
|
|
Other Businesses
|
|
|
499.2
|
|
|
|
24.9
|
|
|
|
237.8
|
|
|
|
18.2
|
|
|
|
109.9
|
|
|
Operating Segment Income2
|
|
|
6,710.1
|
|
|
|
34.6
|
|
|
|
7,449.0
|
|
|
|
39.3
|
|
|
|
(9.9
|
)
|
|
Corporate Expenses
|
|
|
(705.7
|
)
|
|
|
(3.6
|
)
|
|
|
(1,125.6
|
)
|
|
|
(5.9
|
)
|
|
|
37.3
|
|
|
Depreciation and Amortization
|
|
|
(5,702.7
|
)
|
|
|
(29.8
|
)
|
|
|
(5,262.6
|
)
|
|
|
(27.9
|
)
|
|
|
(8.4
|
)
|
|
Other (expense) income, net
|
|
|
(346.3
|
)
|
|
|
(1.8
|
)
|
|
|
4,304.4
|
|
|
|
22.9
|
|
|
|
n/a
|
|
|
Intersegment Operations1
|
|
|
(119.3
|
)
|
|
|
(0.6
|
)
|
|
|
(0.4
|
)
|
|
|
(0.0
|
)
|
|
|
n/a
|
|
|
Operating (loss) Income
|
|
|
(163.9
|
)
|
|
|
(0.9
|
)
|
|
|
5,364.8
|
|
|
|
28.5
|
|
|
|
n/a
|
|
|
1 For segment reporting purposes, intersegment operations are included in each of the segment operations.
|
|
|
2 Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other income or
expense, net.
|
|
During 2022, MSCI upgraded the Televisa rating from “BBB” to “A”. According to MSCI, Televisa has shown improvements in labor management and business ethics practices, supporting their rating
upgrade. MSCI is a leading provider of critical decision support tools and services for the global investment community.
Televisa was nominated in ALAS20 Mexico 2022, in the categories “Leading Company in Sustainability” and “Leading Company in Investor Relations”.
ALAS20 is a GOVERNART initiative that promotes sustainable development in Latin America through the evaluation, qualification, and recognition of excellence in public disclosure of sustainable development practices, corporate governance, and
investor relations of companies in Chile, Brazil, Colombia, Spain, Mexico, and Peru.
Also, for the sixth consecutive year, the Company has been selected as a member of the Dow Jones Sustainability MILA Pacific Alliance Index, which
measures best-in class companies among members of the S&P MILA Pacific Alliance Composite that fulfill certain sustainability criteria better than most of their peers within a given industry. In addition, the Company was included in the 2022
Dow Jones Sustainability Emerging Markets Index. The Dow Jones Sustainability Indices are a family of best-in-class benchmarks for investors who recognize that sustainable business practices are critical to generating long-term shareholder value
and wish to reflect their sustainability convictions in their investment portfolios.
Throughout 2022, Televisa’s sustainability efforts continued to be recognized. For example, the Company continues to be included
in three FTSE4Good Index Series: FTSE4Good Emerging Markets, FTSE4Good Emerging Latin America, and FTSE4Good BIVA. Also, Televisa has been selected as a constituent of the ESG index, launched by S&P, Dow Jones, and the Mexican Stock Exchange.
Additionally, the Company received the Distintivo Empresa Socialmente Responsable 2022 (2022 Socially Responsible Company recognition), granted by Centro Mexicano para la Filantropía (Mexican Center for Philanthropy). Finally, the Company was
confirmed as a United Nations Global Compact signatory, the world’s largest corporate sustainability initiative.
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, 2021, which is posted on the “Reports
and Filings” section of our investor relations website at televisair.com.
In addition, TelevisaUnivision and/or its subsidiaries publish annual and quarterly financial statements and financial information as
well other important information concerning its business from time to time on its website and elsewhere. The Company is not responsible for such TelevisaUnivision information in any way, and such information is not intended to be included as part
of, or incorporated by reference into, the Company’s public filings or releases. Please see attached tables for financial information.
This management commentary 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
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 this management commentary and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
[110000] General information about financial statements
|
Ticker:
|
TLEVISA
|
|
Period covered by financial statements:
|
2022-01-01 TO 2022-12-31
|
|
Date of end of reporting period:
|
2022-12-31
|
|
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:
|
4
|
|
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 December 31, 2022 and
December 31, 2021, and for the twelve months ended December 31, 2022 and 2021, 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, 2021 and 2020, 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 December 31, 2022. The adoption of the improvements and amendments to current IFRSs effective on
January 1, 2022 did not have a significant impact in these interim un audited condensed consolidated financial statements.
The financial institutions that perform financial analysis on the securities of Grupo Televisa, S.A.B., are as follows:
Institution:
Actinver
Banorte-IXE
BBVA Bancomer
Benchmark
BTG Pactual
BofA Securities
Bradesco
Citibanamex
Credit Suisse
GBM
HSBC
Itaú Securities
JP Morgan
Morgan Stanley
Morningstar
Nau Securities
New Street
Santander
UBS
Vector
[210000] Statement of financial position, current/non-current
|
Concept
|
Close Current Quarter
2022-12-31
|
Close Previous Exercise
2021-12-31
|
|
Statement of financial position
|
|
|
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash and cash equivalents
|
51,130,992,000
|
25,828,215,000
|
|
Trade and other current receivables
|
19,445,194,000
|
28,581,358,000
|
|
Current tax assets, current
|
6,691,366,000
|
7,261,999,000
|
|
Other current financial assets
|
11,237,000
|
127,000
|
|
Current inventories
|
1,448,278,000
|
2,212,859,000
|
|
Current biological assets
|
0
|
0
|
|
Other current non-financial assets
|
[1] 2,806,631,000
|
9,374,392,000
|
|
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
|
81,533,698,000
|
73,258,950,000
|
|
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
|
0
|
0
|
|
Total current assets
|
81,533,698,000
|
73,258,950,000
|
|
Non-current assets
|
|
|
|
Trade and other non-current receivables
|
6,803,414,000
|
385,060,000
|
|
Current tax assets, non-current
|
0
|
0
|
|
Non-current inventories
|
0
|
0
|
|
Non-current biological assets
|
0
|
0
|
|
Other non-current financial assets
|
3,921,829,000
|
6,209,276,000
|
|
Investments accounted for using equity method
|
0
|
0
|
|
Investments in subsidiaries, joint ventures and associates
|
49,408,913,000
|
26,704,235,000
|
|
Property, plant and equipment
|
82,236,399,000
|
87,922,126,000
|
|
Investment property
|
2,873,165,000
|
0
|
|
Right-of-use assets that do not meet definition of investment property
|
6,670,298,000
|
7,604,567,000
|
|
Goodwill
|
13,904,998,000
|
14,036,657,000
|
|
Intangible assets other than goodwill
|
27,218,589,000
|
28,219,224,000
|
|
Deferred tax assets
|
18,452,667,000
|
33,173,148,000
|
|
Other non-current non-financial assets
|
[2] 4,681,099,000
|
16,228,838,000
|
|
Total non-current assets
|
216,171,371,000
|
220,483,131,000
|
|
Total assets
|
297,705,069,000
|
293,742,081,000
|
|
Equity and liabilities
|
|
|
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Trade and other current payables
|
23,952,582,000
|
41,219,137,000
|
|
Current tax liabilities, current
|
4,687,269,000
|
7,680,800,000
|
|
Other current financial liabilities
|
2,832,470,000
|
6,290,096,000
|
|
Current lease liabilities
|
1,373,233,000
|
1,478,382,000
|
|
Other current non-financial liabilities
|
0
|
0
|
|
Current provisions
|
|
|
|
Current provisions for employee benefits
|
0
|
0
|
|
Other current provisions
|
1,851,392,000
|
1,107,000
|
|
Total current provisions
|
1,851,392,000
|
1,107,000
|
|
Total current liabilities other than liabilities included in disposal groups classified as held for sale
|
34,696,946,000
|
56,669,522,000
|
|
Liabilities included in disposal groups classified as held for sale
|
0
|
0
|
|
Total current liabilities
|
34,696,946,000
|
56,669,522,000
|
Concept
|
Close Current Quarter 2022-12-31
|
Close Previous Exercise
2021-12-31
|
|
Non-current liabilities
|
|
|
|
Trade and other non-current payables
|
5,658,822,000
|
5,328,025,000
|
|
Current tax liabilities, non-current
|
0
|
104,825,000
|
|
Other non-current financial liabilities
|
104,240,650,000
|
121,709,508,000
|
|
Non-current lease liabilities
|
6,995,839,000
|
8,202,177,000
|
|
Other non-current non-financial liabilities
|
0
|
0
|
|
Non-current provisions
|
|
|
|
Non-current provisions for employee benefits
|
771,468,000
|
1,913,680,000
|
|
Other non-current provisions
|
1,690,454,000
|
1,079,671,000
|
|
Total non-current provisions
|
2,461,922,000
|
2,993,351,000
|
|
Deferred tax liabilities
|
1,259,231,000
|
2,210,609,000
|
|
Total non-current liabilities
|
120,616,464,000
|
140,548,495,000
|
|
Total liabilities
|
155,313,410,000
|
197,218,017,000
|
|
Equity
|
|
|
|
Issued capital
|
4,836,708,000
|
4,836,708,000
|
|
Share premium
|
15,889,819,000
|
15,889,819,000
|
|
Treasury shares
|
12,648,558,000
|
14,205,061,000
|
|
Retained earnings
|
129,492,918,000
|
88,218,188,000
|
|
Other reserves
|
(10,798,478,000)
|
(13,621,992,000)
|
|
Total equity attributable to owners of parent
|
126,772,409,000
|
81,117,662,000
|
|
Non-controlling interests
|
15,619,250,000
|
15,406,402,000
|
|
Total equity
|
142,391,659,000
|
96,524,064,000
|
|
Total equity and liabilities
|
297,705,069,000
|
293,742,081,000
|
[310000] Statement of comprehensive income, profit or loss, by function of expense
|
Concept
|
Accumulated Current Year
2022-01-01 - 2022-12-31
|
Accumulated Previous Year
2021-01-01 - 2021-12-31
|
Quarter Current Year
2022-10-01 - 2022-12-31
|
Quarter Previous Year
2021-10-01 - 2021-12-31
|
|
Profit or loss
|
|
|
|
|
|
Profit (loss)
|
|
|
|
|
|
Revenue
|
75,526,609,000
|
73,915,432,000
|
19,132,267,000
|
18,829,095,000
|
|
Cost of sales
|
48,807,606,000
|
46,653,598,000
|
12,903,452,000
|
11,864,627,000
|
|
Gross profit
|
26,719,003,000
|
27,261,834,000
|
6,228,815,000
|
6,964,468,000
|
|
Distribution costs
|
9,422,916,000
|
8,099,607,000
|
2,729,557,000
|
2,117,451,000
|
|
Administrative expenses
|
12,061,932,000
|
12,189,542,000
|
3,316,832,000
|
3,786,615,000
|
|
Other income
|
0
|
0
|
0
|
0
|
|
Other expense
|
846,654,000
|
(3,716,237,000)
|
346,250,000
|
(4,304,420,000)
|
|
Profit (loss) from operating activities
|
4,387,501,000
|
10,688,922,000
|
(163,824,000)
|
5,364,822,000
|
|
Finance income
|
2,151,109,000
|
560,026,000
|
594,366,000
|
30,229,000
|
|
Finance costs
|
11,346,390,000
|
12,478,039,000
|
2,807,928,000
|
2,827,186,000
|
|
Share of profit (loss) of associates and joint ventures accounted for using equity method
|
(8,453,302,000)
|
3,671,030,000
|
(13,713,031,000)
|
1,490,611,000
|
|
Profit (loss) before tax
|
(13,261,082,000)
|
2,441,939,000
|
(16,090,417,000)
|
4,058,476,000
|
|
Tax income (expense)
|
(967,377,000)
|
1,673,054,000
|
(1,951,675,000)
|
2,011,346,000
|
|
Profit (loss) from continuing operations
|
(12,293,705,000)
|
768,885,000
|
(14,138,742,000)
|
2,047,130,000
|
|
Profit (loss) from discontinued operations
|
55,922,583,000
|
6,585,900,000
|
318,923,000
|
2,144,259,000
|
|
Profit (loss)
|
43,628,878,000
|
7,354,785,000
|
(13,819,819,000)
|
4,191,389,000
|
|
Profit (loss), attributable to
|
|
|
|
|
|
Profit (loss), attributable to owners of parent
|
43,151,239,000
|
6,055,826,000
|
(13,749,651,000)
|
3,697,936,000
|
|
Profit (loss), attributable to non-controlling interests
|
477,639,000
|
1,298,959,000
|
(70,168,000)
|
493,453,000
|
|
Earnings per share
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
|
Basic earnings (loss) per share from continuing operations
|
(4.51)
|
(0.16)
|
(4.98)
|
0.57
|
|
Basic earnings (loss) per share from discontinued operations
|
19.76
|
2.33
|
0.12
|
0.75
|
|
Total basic earnings (loss) per share
|
[3] 15.25
|
2.17
|
(4.86)
|
1.32
|
|
Diluted earnings per share
|
|
|
|
|
|
Diluted earnings (loss) per share from continuing operations
|
(4.25)
|
(0.15)
|
(4.69)
|
0.53
|
|
Diluted earnings (loss) per share from discontinued operations
|
18.62
|
2.16
|
0.11
|
0.69
|
|
Total diluted earnings (loss) per share
|
[4] 14.37
|
2.01
|
(4.58)
|
1.22
|
[410000] Statement of comprehensive income, OCI components presented net of tax
|
Concept
|
Accumulated Current Year
2022-01-01 - 2022-12-31
|
Accumulated Previous Year
2021-01-01 - 2021-12-31
|
Quarter Current Year
2022-10-01 - 2022-12-31
|
Quarter Previous Year
2021-10-01 - 2021-12-31
|
|
Statement of comprehensive income
|
|
|
|
|
|
Profit (loss)
|
43,628,878,000
|
7,354,785,000
|
(13,819,819,000)
|
4,191,389,000
|
|
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
|
(727,031,000)
|
(100,154,000)
|
455,999,000
|
(1,401,909,000)
|
|
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
|
110,683,000
|
195,878,000
|
110,683,000
|
195,878,000
|
|
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
|
(616,348,000)
|
95,724,000
|
566,682,000
|
(1,206,031,000)
|
|
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
|
(1,118,417,000)
|
244,110,000
|
(630,937,000)
|
(161,093,000)
|
|
Reclassification adjustments on exchange differences on translation, net of tax
|
0
|
0
|
0
|
0
|
|
Other comprehensive income, net of tax, exchange differences on translation
|
(1,118,417,000)
|
244,110,000
|
(630,937,000)
|
(161,093,000)
|
|
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
|
277,065,000
|
1,349,321,000
|
(40,148,000)
|
212,324,000
|
|
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
|
277,065,000
|
1,349,321,000
|
(40,148,000)
|
212,324,000
|
|
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
|
| Concept |
Accumulated Current Year 2022-01-01 - 2022-12-31
|
Accumulated Previous Year 2022-01-01 - 2022-12-31
|
|
|
|
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
|
0
|
0
|
0
|
|
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
|
0
|
0
|
0
|
|
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
|
4,267,680,000
|
245,714,000
|
2,076,528,000
|
106,558,000
|
|
Total other comprehensive income that will be reclassified to profit or loss, net of tax
|
3,426,328,000
|
1,839,145,000
|
1,405,443,000
|
157,789,000
|
|
Total other comprehensive income
|
2,809,980,000
|
1,934,869,000
|
1,972,125,000
|
(1,048,242,000)
|
|
Total comprehensive income
|
46,438,858,000
|
9,289,654,000
|
(11,847,694,000)
|
3,143,147,000
|
|
Comprehensive income attributable to
|
|
|
|
|
|
Comprehensive income, attributable to owners of parent
|
45,974,753,000
|
7,990,682,000
|
(11,774,885,000)
|
2,673,808,000
|
|
Comprehensive income, attributable to non-controlling interests
|
464,105,000
|
1,298,972,000
|
(72,809,000)
|
469,339,000
|
[520000] Statement of cash flows, indirect method
|
Concept
|
Accumulated Current Year
2022-01-01 - 2022-12-31
|
Accumulated Previous Year
2021-01-01 - 2021-12-31
|
|
Statement of cash flows
|
|
|
|
Cash flows from (used in) operating activities
|
|
|
|
Profit (loss)
|
43,628,878,000
|
7,354,785,000
|
|
Adjustments to reconcile profit (loss)
|
|
|
|
+ Discontinued operations
|
(55,780,974,000)
|
0
|
|
+ Adjustments for income tax expense
|
(900,239,000)
|
6,745,778,000
|
|
+ (-) Adjustments for finance costs
|
0
|
0
|
|
+ Adjustments for depreciation and amortisation expense
|
21,239,306,000
|
21,418,369,000
|
|
+ Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
|
0
|
225,136,000
|
|
+ Adjustments for provisions
|
1,742,678,000
|
1,560,859,000
|
|
+ (-) Adjustments for unrealised foreign exchange losses (gains)
|
(1,010,645,000)
|
1,700,514,000
|
|
+ Adjustments for share-based payments
|
1,665,909,000
|
1,088,413,000
|
|
+ (-) Adjustments for fair value losses (gains)
|
110,739,000
|
1,183,180,000
|
|
- Adjustments for undistributed profits of associates
|
0
|
0
|
|
+ (-) Adjustments for losses (gains) on disposal of non-current assets
|
(131,683,000)
|
(279,593,000)
|
|
+ Share of income of associates and joint ventures
|
8,453,302,000
|
(3,671,877,000)
|
|
+ (-) Adjustments for decrease (increase) in inventories
|
652,614,000
|
(6,620,795,000)
|
|
+ (-) Adjustments for decrease (increase) in trade accounts receivable
|
(4,147,622,000)
|
(2,024,974,000)
|
|
+ (-) Adjustments for decrease (increase) in other operating receivables
|
(2,806,992,000)
|
(2,863,863,000)
|
|
+ (-) Adjustments for increase (decrease) in trade accounts payable
|
(26,282,000)
|
850,760,000
|
|
+ (-) Adjustments for increase (decrease) in other operating payables
|
(3,717,588,000)
|
6,861,117,000
|
|
+ Other adjustments for non-cash items
|
0
|
0
|
|
+ Other adjustments for which cash effects are investing or financing cash flow
|
0
|
(4,547,029,000)
|
|
+ Straight-line rent adjustment
|
0
|
0
|
|
+ Amortization of lease fees
|
0
|
0
|
|
+ Setting property values
|
0
|
0
|
|
+ (-) Other adjustments to reconcile profit (loss)
|
353,232,000
|
329,144,000
|
|
+ (-) Total adjustments to reconcile profit (loss)
|
(34,304,245,000)
|
21,955,139,000
|
|
Net cash flows from (used in) operations
|
9,324,633,000
|
29,309,924,000
|
|
- Dividends paid
|
0
|
0
|
|
+ Dividends received
|
0
|
0
|
|
- Interest paid
|
(9,459,377,000)
|
(9,135,531,000)
|
|
+ Interest received
|
(89,268,000)
|
(60,174,000)
|
|
+ (-) Income taxes refund (paid)
|
11,818,411,000
|
9,166,602,000
|
|
+ (-) Other inflows (outflows) of cash
|
0
|
0
|
|
Net cash flows from (used in) operating activities
|
6,876,331,000
|
29,218,679,000
|
|
Cash flows from (used in) investing activities
|
|
|
|
+ Cash flows from losing control of subsidiaries or other businesses
|
10,000,000
|
10,000,000
|
|
- Cash flows used in obtaining control of subsidiaries or other businesses
|
0
|
0
|
|
+ Other cash receipts from sales of equity or debt instruments of other entities
|
66,095,454,000
|
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
|
364,050,000
|
0
|
|
- Other cash payments to acquire interests in joint ventures
|
0
|
0
|
|
+ Proceeds from sales of property, plant and equipment
|
264,163,000
|
672,424,000
|
|
- Purchase of property, plant and equipment
|
17,315,387,000
|
23,267,847,000
|
|
+ Proceeds from sales of intangible assets
|
0
|
0
|
|
- Purchase of intangible assets
|
1,867,000,000
|
1,899,464,000
|
|
+ Proceeds from sales of other long-term assets
|
0
|
0
|
|
- Purchase of other long-term assets
|
0
|
0
|
| Concept |
Accumulated Current Year 2022-01-01 - 2022-12-31
|
Accumulated Current Year 2022-01-01 - 2022-12-31 |
|
+ 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
|
0
|
|
- Interest paid
|
0
|
0
|
|
+ Interest received
|
0
|
0
|
|
+ (-) Income taxes refund (paid)
|
0
|
0
|
|
+ (-) Other inflows (outflows) of cash
|
744,634,000
|
5,745,182,000
|
|
Net cash flows from (used in) investing activities
|
48,295,914,000
|
(18,739,705,000)
|
|
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
|
0
|
0
|
|
+ Proceeds from issuing shares
|
0
|
0
|
|
+ Proceeds from issuing other equity instruments
|
0
|
0
|
|
- Payments to acquire or redeem entity's shares
|
1,277,568,000
|
328,500,000
|
|
- Payments of other equity instruments
|
0
|
0
|
|
+ Proceeds from borrowings
|
(16,099,582,000)
|
2,650,000,000
|
|
- Repayments of borrowings
|
610,403,000
|
1,992,489,000
|
|
- Payments of finance lease liabilities
|
699,000,000
|
646,527,000
|
|
- Payments of lease liabilities
|
991,048,000
|
1,082,226,000
|
|
+ Proceeds from government grants
|
0
|
0
|
|
- Dividends paid
|
1,053,392,000
|
1,053,392,000
|
|
- Interest paid
|
8,893,000,000
|
8,258,243,000
|
|
+ (-) Income taxes refund (paid)
|
0
|
0
|
|
+ (-) Other inflows (outflows) of cash
|
(145,131,000)
|
(3,021,015,000)
|
|
Net cash flows from (used in) financing activities
|
(29,769,124,000)
|
(13,732,392,000)
|
|
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
|
25,403,121,000
|
(3,253,418,000)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
(100,344,000)
|
23,540,000
|
|
Net increase (decrease) in cash and cash equivalents
|
25,302,777,000
|
(3,229,878,000)
|
|
Cash and cash equivalents at beginning of period
|
25,828,215,000
|
29,058,093,000
|
|
Cash and cash equivalents at end of period
|
51,130,992,000
|
25,828,215,000
|
[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
|
4,836,708,000
|
15,889,819,000
|
14,205,061,000
|
88,218,188,000
|
0
|
2,040,114,000
|
8,467,000
|
0
|
0
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
|
0
|
0
|
0
|
43,151,239,000
|
0
|
0
|
0
|
0
|
0
|
|
Other comprehensive income
|
0
|
0
|
0
|
0
|
0
|
(1,099,440,000)
|
277,065,000
|
0
|
0
|
|
Total comprehensive income
|
0
|
0
|
0
|
43,151,239,000
|
0
|
(1,099,440,000)
|
277,065,000
|
0
|
0
|
|
Issue of equity
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Dividends recognised as distributions to owners
|
0
|
0
|
0
|
1,053,392,000
|
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
|
1,650,000
|
0
|
0
|
0
|
0
|
0
|
|
Increase (decrease) through share-based payment transactions, equity
|
0
|
0
|
(1,556,503,000)
|
(824,767,000)
|
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
|
(1,556,503,000)
|
41,274,730,000
|
0
|
(1,099,440,000)
|
277,065,000
|
0
|
0
|
|
Equity at end of period
|
4,836,708,000
|
15,889,819,000
|
12,648,558,000
|
129,492,918,000
|
0
|
940,674,000
|
285,532,000
|
0
|
0
|
| |
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
|
(15,040,193,000)
|
0
|
0
|
(739,646,000)
|
0
|
0
|
0
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Other comprehensive income
|
0
|
0
|
(727,031,000)
|
0
|
0
|
105,240,000
|
0
|
0
|
0
|
|
Total comprehensive income
|
0
|
0
|
(727,031,000)
|
0
|
0
|
105,240,000
|
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
|
(727,031,000)
|
0
|
0
|
105,240,000
|
0
|
0
|
0
|
|
Equity at end of period
|
0
|
0
|
(15,767,224,000)
|
0
|
0
|
(634,406,000)
|
0
|
0
|
0
|
| |
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
|
109,266,000
|
(13,621,992,000)
|
81,117,662,000
|
15,406,402,000
|
96,524,064,000
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
Profit (loss)
|
0
|
0
|
0
|
0
|
0
|
43,151,239,000
|
477,639,000
|
43,628,878,000
|
|
Other comprehensive income
|
0
|
0
|
0
|
4,267,680,000
|
2,823,514,000
|
2,823,514,000
|
(13,534,000)
|
2,809,980,000
|
|
Total comprehensive income
|
0
|
0
|
0
|
4,267,680,000
|
2,823,514,000
|
45,974,753,000
|
464,105,000
|
46,438,858,000
|
|
Issue of equity
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Dividends recognised as distributions to owners
|
0
|
0
|
0
|
0
|
0
|
1,053,392,000
|
108,700,000
|
1,162,092,000
|
|
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
|
1,650,000
|
(142,557,000)
|
(140,907,000)
|
|
Increase (decrease) through share-based payment transactions, equity
|
0
|
0
|
0
|
0
|
0
|
731,736,000
|
0
|
731,736,000
|
|
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
|
4,267,680,000
|
2,823,514,000
|
45,654,747,000
|
212,848,000
|
45,867,595,000
|
|
Equity at end of period
|
0
|
0
|
0
|
4,376,946,000
|
(10,798,478,000)
|
126,772,409,000
|
15,619,250,000
|
142,391,659,000
|
[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
|
16,079,124,000
|
84,280,397,000
|
0
|
1,804,327,000
|
(1,340,854,000)
|
0
|
0
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
|
0
|
0
|
0
|
6,055,826,000
|
0
|
0
|
0
|
0
|
0
|
|
Other comprehensive income
|
0
|
0
|
0
|
0
|
0
|
235,787,000
|
1,349,321,000
|
0
|
0
|
|
Total comprehensive income
|
0
|
0
|
0
|
6,055,826,000
|
0
|
235,787,000
|
1,349,321,000
|
0
|
0
|
|
Issue of equity
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Dividends recognised as distributions to owners
|
0
|
0
|
0
|
1,053,392,000
|
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
|
(71,057,000)
|
0
|
(1,581,347,000)
|
(1,510,290,000)
|
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
|
(292,716,000)
|
445,647,000
|
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
|
(71,057,000)
|
0
|
(1,874,063,000)
|
3,937,791,000
|
0
|
235,787,000
|
1,349,321,000
|
0
|
0
|
|
Equity at end of period
|
4,836,708,000
|
15,889,819,000
|
14,205,061,000
|
88,218,188,000
|
0
|
2,040,114,000
|
8,467,000
|
0
|
0
|
| |
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
|
(14,940,039,000)
|
0
|
0
|
(943,834,000)
|
0
|
0
|
0
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Other comprehensive income
|
0
|
0
|
(100,154,000)
|
0
|
0
|
204,188,000
|
0
|
0
|
0
|
|
Total comprehensive income
|
0
|
0
|
(100,154,000)
|
0
|
0
|
204,188,000
|
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
|
(100,154,000)
|
0
|
0
|
204,188,000
|
0
|
0
|
0
|
|
Equity at end of period
|
0
|
0
|
(15,040,193,000)
|
0
|
0
|
(739,646,000)
|
0
|
0
|
0
|
| |
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
|
(136,448,000)
|
(15,556,848,000)
|
73,442,009,000
|
14,497,024,000
|
87,939,033,000
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
Profit (loss)
|
0
|
0
|
0
|
0
|
0
|
6,055,826,000
|
1,298,959,000
|
7,354,785,000
|
|
Other comprehensive income
|
0
|
0
|
0
|
245,714,000
|
1,934,856,000
|
1,934,856,000
|
13,000
|
1,934,869,000
|
|
Total comprehensive income
|
0
|
0
|
0
|
245,714,000
|
1,934,856,000
|
7,990,682,000
|
1,298,972,000
|
9,289,654,000
|
|
Issue of equity
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Dividends recognised as distributions to owners
|
0
|
0
|
0
|
0
|
0
|
1,053,392,000
|
405,928,000
|
1,459,320,000
|
|
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
|
0
|
16,334,000
|
16,334,000
|
|
Increase (decrease) through share-based payment transactions, equity
|
0
|
0
|
0
|
0
|
0
|
738,363,000
|
0
|
738,363,000
|
|
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
|
245,714,000
|
1,934,856,000
|
7,675,653,000
|
909,378,000
|
8,585,031,000
|
|
Equity at end of period
|
0
|
0
|
0
|
109,266,000
|
(13,621,992,000)
|
81,117,662,000
|
15,406,402,000
|
96,524,064,000
|
[700000] Informative data about the Statement of financial position
|
Concept
|
Close Current Quarter
2022-12-31
|
Close Previous Exercise
2021-12-31
|
|
Informative data of the Statement of Financial Position
|
|
|
|
Capital stock (nominal)
|
2,423,549,000
|
2,423,549,000
|
|
Restatement of capital stock
|
2,413,159,000
|
2,413,159,000
|
|
Plan assets for pensions and seniority premiums
|
505,620,000
|
1,312,596,000
|
|
Number of executives
|
35
|
69
|
|
Number of employees
|
37,339
|
46,717
|
|
Number of workers
|
0
|
0
|
|
Outstanding shares
|
330,739,720,779
|
329,295,860,166
|
|
Repurchased shares
|
21,394,315,059
|
22,838,175,672
|
|
Restricted cash
|
0
|
0
|
|
Guaranteed debt of associated companies
|
0
|
0
|
[700002] Informative data about the Income statement
|
Concept
|
Accumulated Current Year
2022-01-01 - 2022-12-31
|
Accumulated Previous Year
2021-01-01 - 2021-12-31
|
Quarter Current Year
2022-10-01 - 2022-12-31
|
Quarter Previous Year
2021-10-01 - 2021-12-31
|
|
Informative data of the Income Statement
|
|
|
|
|
|
Operating depreciation and amortization
|
21,117,432,000
|
20,053,302,000
|
5,702,637,000
|
5,262,613,000
|
[700003] Informative data - Income statement for 12 months
|
Concept
|
Current Year
2022-01-01 - 2022-12-31
|
Previous Year
2021-01-01 - 2021-12-31
|
|
Informative data - Income Statement for 12 months
|
|
|
|
Revenue
|
75,526,609,000
|
73,915,432,000
|
|
Profit (loss) from operating activities
|
4,387,501,000
|
10,688,922,000
|
|
Profit (loss)
|
43,628,878,000
|
7,354,785,000
|
|
Profit (loss), attributable to owners of parent
|
43,151,239,000
|
6,055,826,000
|
|
Operating depreciation and amortization
|
21,117,432,000
|
20,053,302,000
|
[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
|
|
|
HSBC 1
|
NO
|
2016-03-08
|
2023-03-08
|
7.13
|
|
625,000,000
|
|
|
|
|
|
|
|
|
|
|
|
SCOTIABANK INVERLAT 2
|
NO
|
2016-03-08
|
2023-03-08
|
7
|
|
375,000,000
|
|
|
|
|
|
|
|
|
|
|
|
SCOTIABANK INVERLAT 3
|
NO
|
2022-12-03
|
2026-12-03
|
8.13 y TIIE+.90
|
|
|
|
|
2,650,000,000
|
|
|
|
|
|
|
|
|
SYNDICATED LOAN 4
|
NO
|
2019-06-05
|
2024-06-28
|
TIIE+1.05
|
|
|
9,967,243,000
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
|
|
0
|
1,000,000,000
|
9,967,243,000
|
0
|
2,650,000,000
|
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
|
|
|
|
|
0
|
1,000,000,000
|
9,967,243,000
|
0
|
2,650,000,000
|
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
|
|
|
|
|
|
4,489,547,000
|
|
|
|
|
|
|
|
SENIOR NOTES 2
|
YES
|
2013-05-14
|
2043-05-14
|
7.62
|
|
|
|
|
|
6,451,645,000
|
|
|
|
|
|
|
|
NOTES 3
|
NO
|
2017-10-09
|
2027-09-27
|
8.79
|
|
|
|
|
|
4,488,597,000
|
|
|
|
|
|
|
|
SENIOR NOTES 4
|
YES
|
2005-03-18
|
2025-03-18
|
6.97
|
|
|
|
|
|
|
|
|
|
5,142,689,000
|
|
|
|
SENIOR NOTES 5
|
YES
|
2002-03-11
|
2032-03-11
|
8.94
|
|
|
|
|
|
|
|
|
|
|
|
5,826,463,000
|
|
SENIOR NOTES 6
|
YES
|
2009-11-23
|
2040-01-16
|
6.97
|
|
|
|
|
|
|
|
|
|
|
|
11,577,854,000
|
|
SENIOR NOTES 7
|
YES
|
2014-05-13
|
2045-05-15
|
5.26
|
|
|
|
|
|
|
|
|
|
|
|
16,997,261,000
|
|
SENIOR NOTES 8
|
YES
|
2015-11-24
|
2026-01-30
|
4.86
|
|
|
|
|
|
|
|
|
|
|
5,828,311,000
|
|
|
SENIOR NOTES 9
|
YES
|
2015-11-24
|
2046-01-31
|
6.44
|
|
|
|
|
|
|
|
|
|
|
|
17,418,690,000
|
|
SENIOR NOTES 10
|
YES
|
2019-05-21
|
2049-05-24
|
5.52
|
|
|
|
|
|
|
|
|
|
|
|
13,402,350,000
|
|
TOTAL
|
|
|
|
|
0
|
0
|
0
|
0
|
0
|
15,429,789,000
|
0
|
0
|
0
|
5,142,689,000
|
5,828,311,000
|
65,222,618,000
|
|
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
|
15,429,789,000
|
0
|
0
|
0
|
5,142,689,000
|
5,828,311,000
|
[5] 65,222,618,000
|
|
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
|
|
Suppliers
|
|
|
Suppliers
|
|
| |
|
|
|
|
Denomination
|
| |
|
|
|
|
Domestic Currency
|
|
|
|
|
|
|
| |
|
|
|
|
Time Interval
|
|
|
|
|
|
|
| Institution |
Foreign Institution (yes/no)
|
Contract signing date
|
Expiration
Date
|
Intereest Rate
|
Current
Year
|
Until 1
Year
|
Until 2
Years
|
Unit 3
Years
|
Until 4
Years
|
Until 5
Years
|
Current
Year
|
Until 1
Year
|
Until 2
Year
|
Until 3
Year
|
Until 4
Year
|
Until 5
Year
|
|
SUPPLIERS 1
|
NO
|
2022-12-30
|
2023-12-30
|
|
|
12,739,326,000
|
|
337,450,000
|
|
143,358,000
|
|
3,441,195,000
|
|
|
|
|
|
TOTAL
|
|
|
|
|
0
|
12,739,326,000
|
0
|
337,450,000
|
0
|
143,358,000
|
0
|
3,441,195,000
|
0
|
0
|
0
|
0
|
|
Total suppliers
|
|
|
TOTAL
|
|
|
|
|
0
|
12,739,326,000
|
0
|
337,450,000
|
0
|
143,358,000
|
0
|
3,441,195,000
|
0
|
0
|
0
|
0
|
|
Other current and non-current liabilities
|
|
|
Other current and non-current liabilities
|
|
|
DERIVATIVE FINANCIAL INSTRUMENTS 1
|
|
|
|
|
|
71,401,000
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
|
|
0
|
71,401,000
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Total other current and non-current liabilities
|
|
|
TOTAL
|
|
|
|
|
0
|
71,401,000
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Total credits
|
|
|
TOTAL
|
|
|
|
|
0
|
13,810,727,000
|
9,967,243,000
|
337,450,000
|
2,650,000,000
|
15,573,147,000
|
0
|
3,441,195,000
|
0
|
5,142,689,000
|
5,828,311,000
|
65,222,618,000
|
[800003] Annex - Monetary foreign currency position
| |
Currencies
|
| |
Dollars
|
Dollar equivalent in pesos
|
Other currencies equivalent in dollars
|
Other currencies equivalent in pesos
|
Total pesos
|
|
Foreign currency position
|
|
|
|
|
|
|
Monetary assets
|
|
|
|
|
|
|
Current monetary assets
|
2,372,570,000
|
46,208,173,000
|
24,557,000
|
478,272,000
|
46,686,445,000
|
|
Non-current monetary assets
|
0
|
0
|
0
|
0
|
0
|
|
Total monetary assets
|
2,372,570,000
|
46,208,173,000
|
24,557,000
|
478,272,000
|
46,686,445,000
|
|
Liabilities position
|
|
|
|
|
|
|
Current liabilities
|
329,054,000
|
6,408,656,000
|
25,511,000
|
496,852,000
|
6,905,508,000
|
|
Non-current liabilities
|
4,082,530,000
|
79,511,354,000
|
0
|
0
|
79,511,354,000
|
|
Total liabilities
|
4,411,584,000
|
85,920,010,000
|
25,511,000
|
496,852,000
|
86,416,862,000
|
|
Net monetary assets (liabilities)
|
(2,039,014,000)
|
(39,711,837,000)
|
(954,000)
|
(18,580,000)
|
[6] (39,730,417,000)
|
[800005] Annex - Distribution of income by product
| |
Income type
|
| |
National income
|
Export income
|
Income of subsidiaries abroad
|
Total income
|
|
SKY (INCLUDES LEASING OF SET-TOP EQUIPMENT):
|
|
|
|
|
|
SKY (INCLUDES LEASING OF SET-TOP EQUIPMENT):
|
0
|
0
|
0
|
0
|
|
SKY, VETV, BLUE TO GO, BLUE TELECOMM
|
|
|
|
|
|
SKY - DTH BROADCAST SATELLITE TV
|
17,970,812,000
|
0
|
1,101,419,000
|
19,072,231,000
|
|
SKY - PAY PER VIEW
|
71,003,000
|
0
|
12,309,000
|
83,312,000
|
|
SKY - ADVERTISING
|
1,183,495,000
|
0
|
0
|
1,183,495,000
|
|
CABLE (INCLUDES LEASING OF SET-TOP EQUIPMENT):
|
|
|
|
|
|
CABLE (INCLUDES LEASING OF SET-TOP EQUIPMENT):
|
0
|
0
|
0
|
0
|
|
IZZI, IZZI GO
|
|
|
|
|
|
CABLE - DIGITAL TV SERVICE
|
16,054,150,000
|
0
|
0
|
16,054,150,000
|
|
CABLE - BROADBAND SERVICES
|
19,197,699,000
|
0
|
0
|
19,197,699,000
|
|
CABLE - SERVICE INSTALLATION
|
581,626,000
|
0
|
0
|
581,626,000
|
|
CABLE - ADVERTISING
|
2,073,346,000
|
0
|
0
|
2,073,346,000
|
|
CABLE - TELEPHONY
|
5,259,768,000
|
0
|
0
|
5,259,768,000
|
|
CABLE - OTHER INCOME
|
45,677,000
|
0
|
0
|
45,677,000
|
|
BESTEL, METRORED
|
|
|
|
|
|
CABLE - ENTERPRISE OPERATIONS
|
4,940,564,000
|
0
|
258,946,000
|
5,199,510,000
|
|
OTHER BUSINESSES:
|
|
|
|
|
|
OTHER BUSINESSES:
|
0
|
0
|
0
|
0
|
|
TV Y NOVELAS, VANIDADES, TÚ, COSMOPOLITAN, COCINA FÁCIL, CARAS, HARPER´S BAZAR, NATIONAL GEOGRAPHIC, ESQUIRE, MUY
INTERESANTE
|
|
|
|
|
|
PUBLISHING - MAGAZINE CIRCULATION
|
269,817,000
|
0
|
0
|
269,817,000
|
|
PUBLISHING - ADVERTISING
|
152,820,000
|
0
|
0
|
152,820,000
|
|
PUBLISHING - OTHER INCOME
|
5,938,000
|
0
|
0
|
5,938,000
|
|
VIDEOCINE, PANTELION
|
|
|
|
|
|
DISTRIBUTION, RENTALS AND SALE OF MOVIE RIGHTS
|
0
|
0
|
0
|
0
|
|
CLUB DE FÚTBOL AMÉRICA, ESTADIO AZTECA
|
|
|
|
|
|
SPECIAL EVENTS AND SHOW PROMOTION
|
2,189,093,000
|
308,194,000
|
0
|
2,497,287,000
|
|
PLAY CITY
|
|
|
|
|
|
GAMING
|
2,493,534,000
|
0
|
0
|
2,493,534,000
|
|
GRUPO TELEVISA
|
|
|
|
|
|
TRANSMISSION CONCESSIONS RIGHTS AND FACILITIES OF PRODUCTION
|
1,658,317,000
|
0
|
0
|
1,658,317,000
|
|
VOLKSWAGEN SEDAN, AUDIOCUENTOS DISNEY, IRON MAN, BIBLIOTECA DE CRIMEN Y MISTERIO, AUTOS INOLVIDABLES, TERMINATOR
|
|
|
|
|
|
PUBLISHING DISTRIBUTION
|
261,077,000
|
0
|
0
|
261,077,000
|
|
INTERSEGMENT ELIMINATIONS
|
|
|
|
|
|
INTERSEGMENT ELIMINATIONS
|
(562,995,000)
|
0
|
0
|
(562,995,000)
|
|
TOTAL
|
73,845,741,000
|
308,194,000
|
1,372,674,000
|
75,526,609,000
|
[800007] Annex - Financial derivative instruments
Management discussion about the policy uses of financial derivative instruments, explaining if these policies
are allowed just for coverage or for other uses like trading
EXHIBIT 1
TO THE ELECTRONIC FORM TITLED “PREPARATION, FILING, DELIVERY AND DISCLOSURE OF QUARTERLY ECONOMIC, ACCOUNTING AND ADMINISTRATIVE INFORMATION BY ISSUERS”
III. QUALITATIVE AND QUANTITATIVE INFORMATION
i. Management’s discussion of the policies concerning the use of financial derivative instruments, and explanation as to
whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes. The discussion must include a general description of the objectives sought in the execution of financial derivative
transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the
principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging,
speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and
liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party. If
applicable, provide information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.
Management’s discussion of the policies concerning the use of
financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes.
In accordance with the policies and procedures implemented by the
Vice President of Finance and Risk and the Vice President and Corporate Controller, along with the Vice President of Internal Audit, the Company has entered into certain financial derivative transactions for hedging purposes in both the Mexican
and international markets so as to manage its exposure to the market risks associated with the changes in interest and foreign exchange rates and inflation. In addition, the Company’s Investments Committee has established guidelines for the
investment in structured notes or deposits associated with other derivatives, which by their nature may be considered as derivative transactions for trading purposes. It should be noted that in the fourth quarter of 2022, no such financial
derivatives were outstanding. Pursuant to the provisions of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), certain financial derivative transactions originally intended to serve
as a hedge and in effect as of December 31, 2022, are not within the scope of hedge accounting as specified in such Standards and, consequently, are recognized in the accounting based on the provisions included in the aforementioned Standards.
General description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant
trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the
authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development
of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of
such procedures and, as the case may be, the observations raised or deficiencies identified by such third party.
The Company’s principal objective when entering into financial
derivative transactions is to mitigate the effects of unforeseen changes in interest and foreign exchange rates and inflation, so as to reduce the volatility in its results and cash flows as a result of such changes.
The Company monitors its exposure to the interest rate risk by: (i)
assessing the difference between the interest rates applicable to its debt and temporary investments, and the prevailing market rates for similar instruments; (ii) reviewing its cash flow requirements and financial ratios (interest coverage);
(iii) assessing the actual and budgeted-for trends in the principal markets; and (iv) assessing the prevailing industry practices and other similar companies. This approach enables the Company to determine the optimum mix between fixed- and
variable-rate interest for its debt.
Foreign exchange risk is monitored by assessing the Company’s monetary position in U.S.
dollars and its budgeted cash flow requirements for investments anticipated to be denominated in U.S. dollars and the service of its U.S. dollar-denominated debt.
Financial derivative transactions are reported from time to time to the Audit Committee.
The Company has entered into master derivatives agreements with both domestic and foreign
financial institutions, that are internationally recognized institutions with which the Company, from time to time, has entered into financial transactions involving corporate and investment banking, as well as treasury services. The form
agreement used in connection with financial derivatives transactions with foreign financial institutions is the Master Agreement published by the International Swaps and Derivatives Association, Inc. (“ISDA”) and with local institutions is the
Master Agreement published by ISDA and in some instances, using the form agreement ISDAmex. In both cases, the main terms and conditions are standard for these types of transactions and include mechanisms
for the appointment of calculation or valuation agents.
In addition, the Company enters into standard guaranty agreements that set forth the
margins, collateral and lines of credit applicable in each instance. These agreements establish the credit limits granted by the financial institutions with whom the Company enters into master financial derivative agreements, which specify the
margin implications in the case of potential negative changes in the market value of its open financial derivative positions. Pursuant to the agreements entered into by the Company, financial institutions are entitled to make margin calls if
certain thresholds are exceeded. In the event of a change in the credit rating issued to the Company by a recognized credit rating agency, the credit limit granted by each counterparty would be modified.
As of the date hereof, the Company has never experienced a margin call
with respect to its financial derivative transactions.
In compliance with its risk management objectives and hedging strategies,
the Company generally utilizes the following financial derivative transactions:
|
1.
|
Cross-currency interest rate swaps (i.e., coupon swaps);
|
|
2.
|
Interest rate and inflation-indexed swaps;
|
|
3.
|
Cross-currency principal and interest rate swaps;
|
|
5.
|
Forward exchange rate contracts;
|
|
7.
|
Interest Rate Caps and Floors contracts;
|
|
8.
|
Fixed-price contracts for the acquisition of government securities (i.e., Treasury locks); and
|
The strategies for the acquisition of financial derivatives transactions are approved by the
Risk Management Committee in accordance with the Policies and Objectives for the Use of Financial Derivatives.
During the quarter from October to December 2022, there were no
defaults ormargin calls under the aforementioned financial derivative transactions.
The Company monitors on a weekly basis the flows generated by the fair market value of and
the potential for margin calls under its open financial derivative transactions. The calculation or valuation agent designated in the relevant Master Agreement, which is always the counterparty, issues monthly reports as to the fair market
value of the Company’s open positions.
The Risk Management area is responsible for measuring, at least once a month, the Company’s
exposure to the financial market risks associated with its financings and investments, and for submitting a report with respect to the Company’s risk position and the valuation of its financial derivatives to the Finance Committee on a monthly
basis, and to the Risk Management Committee on a quarterly basis. The Company monitors the credit rating assigned to its counterparties in its outstanding financial derivative transactions on a regular basis.
The office of the Comptroller is responsible for the validation of the Company’s accounting
records as related to its financial derivative transactions, based upon the confirmations received from the relevant financial intermediaries, and for obtaining from such intermediaries, on a monthly basis, confirmations or account statements
supporting the market valuation of its open financial derivative positions.
As a part of the yearly audit on the Company, the aforementioned procedures are reviewed by
the Company’s external auditors. As of the date hereof, the Company’s auditors have not raised any observation or identified any deficiency therein.
Information concerning the composition of the overall risk management
committee, its operating rules, and the existence of an overall risk management manual.
The Company has a Risk Management Committee, which is responsible for monitoring the Company’s risk management
activities and approving the hedging strategies used to mitigate the financial market risks to which the Company is exposed. The assessment and hedging of the financial market risks are subject to the policies and procedures applicable to the
Company’s Risk Management Committee, the Finance and Risk Management areas and the Comptroller that form the Risk Management Manual of the Company. In general terms, the Risk Management Committee is comprised of members of the Corporate
Management, Corporate Comptroller, Tax Control and Advice, Information to the Stock Exchange, Finance and Risk, Legal, Administration and Finance, Financial Planning and Corporate Finance areas.
General description about valuation techniques, standing out the instruments valuated at cost or fair value,
just like methods and valuation techniques
ii. General description of the valuation methods, indicating whether the instruments are valued at cost or at their fair value pursuant to the applicable accounting principles, the
relevant reference valuation methods and techniques, and the events taken into consideration. Describe the policies for and frequency of the valuation, as well as the actions taken in light of the values obtained therefrom. Clarify whether
the valuation is performed by an independent third party, and indicate if such third party is the structurer, seller or counterparty of the financial instrument. As with respect to financial derivative transactions for hedging purposes,
explain the method used to determine the effectiveness thereof and indicate the level of coverage provided thereby.
The Company values its financial derivative instruments based upon the standard models and
calculators provided by recognized market makers. In addition, the Company uses the relevant market variables available from online sources. The financial derivative instruments are valued at a reasonable value pursuant to the applicable accounting
provisions.
In the majority of cases, the valuation at a reasonable value is carried out on a monthly basis
based on valuations of the counterparties and the verification of such reasonable value with internal valuations prepared by the Risk Management area of the Company. Accounting wise, the valuation of the
counterparty is registered.
The Company performs its valuations without the participation of any independent third party.
The method used by the Company to determine the effectiveness of
an instrument depends on the hedging strategy and on whether the relevant transaction is intended as a fair-value hedge or a cash-flow hedge. The Company’s methods take into consideration the prospective cash flows generated by or the changes in
the fair value of the financial derivative, and the cash flows generated by or the changes in the fair value of the underlying position that it seeks to hedge to determine, in each case, the hedging ratio.
Management discussion about internal and external sources of liquidity that could be used for attending
requirements related to financial derivative instruments
iii. Management’s discussion of the internal and external sources of liquidity that could be used to
satisfy the Company’s requirements in connection with its financial derivatives.
As of the date hereof, the Company’s management has not discussed internal and external sources
of liquidity so as to satisfy its requirements in connection with its financial derivatives since, based upon the aggregate amount of the Company’s financial derivative transactions, management is of the opinion that the Company’s significant
positions of cash, cash equivalents and temporary investments, and the substantial cash flows generated by the Company, would enable the Company to respond adequately to any such requirements.
Changes and management explanation in principal risk exposures identified, as contingencies and events known
by the administration that could affect future reports
iv. Explanation as to any change in the issuer’s exposure to the principal risks identified thereby
and, in their management, and any contingency or event known to or anticipated by the issuer’s management, which could affect any future report. Description of any circumstance or event, such as any change in the value of the underlying assets or
reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Issuer to assume new
obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the issuer’s results or cash flows. Description and number
of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.
Changes
in the Company’s exposure to the principal risks identified thereby and, in their management, and contingencies or events known to or anticipated by the Company’s management, which could affect any future report.
Since a significant portion of the Company’s debt and costs are denominated in U.S. dollars,
while its revenues are primarily denominated in Mexican pesos, depreciation in the value of the Mexican peso against the U.S. dollar and any future depreciation could have a negative effect on the Company’s results due to exchange rate losses.
However, the significant amount of U.S. dollars in the Company’s treasury, and the hedging strategies adopted by the Company in recent years, have enabled it to avoid significant foreign exchange losses.
Circumstances or events, such as changes in the value of the underlying
assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Company to assume
new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the Company’s results or cash flows.
As of the date hereof, no circumstance or event of a financial derivative transaction, resulted
in a partial or total loss of the relevant hedge requiring that the Company assume new obligations, commitments or variations in its cash flow such that its liquidity is affected.
Description and number of financial derivatives maturing during the quarter, any closed
positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.
|
1.
|
During the relevant quarter, forwards through which the Company hedged against a possible Mexican Peso
depreciation with a notional amount of U.S. $56,693,916.00 (Fifty Six Million Six Hundred Ninety Three Thousand Nine Hundred Sixteen U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN $24,392,557.36 (Twenty Four Million
Three Hundred Ninety Two Thousand Five Hundred Fifty Seven Mexican pesos 36/100) was incurred in the quarter.
|
|
2.
|
During the relevant quarter, interest rate swaps through which the Company hedged against a possible
change on the Interest Rates with a notional amount of MXN $3,500,000,000.00 (Three Billion Five Hundred Million Mexican pesos 00/100), expired. As a result of this hedge, a gain of MXN $7,240,138.89 (Seven million two hundred Forty
thousand one hundred thirty eight Mexican pesos 89/100)
|
|
3.
|
During the relevant quarter, forwards through which Empresas Cablevisión, S.A.B. de C.V. hedged against a
possible Mexican Peso depreciation with a notional amount of U.S. $19,324,437.00 (Nineteen Million Three Hundred Twenty Four Thousand Four Hundred Thirty Seven U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN
$7,895,642.88 (Seven Million Eight Hundred Ninety Five Thousand Six Hundred Forty Two Mexican pesos 88/100) was incurred in the quarter.
|
|
4.
|
During the relevant quarter, forwards through which Televisión Internacional, S.A. de C.V. hedged against
a possible Mexican Peso depreciation with a notional amount of U.S. $13,981,647.00 (Thirteen Million Nine Hundred Eighty One Thousand Six Hundred Forty Seven U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN
$5,712,997.94 (Five Million Seven Hundred Twelve Thousand Nine Hundred Ninety Seven Mexican pesos 94/100) was incurred in the quarter.
|
During the relevant quarter there were no defaults or margin calls under financial derivative transactions.
Quantitative information for disclosure
v. Quantitative Information. Attached hereto as “Table 1” is a summary of the financial
derivative instruments purchased by Grupo Televisa, S.A.B, Empresas Cablevisión S.A.B. de C.V., and Televisión Internacional, S.A. de C.V. whose aggregate fair value represents or could represent one of the reference percentages set forth in
Section III (v) of the Official Communication.
IV. SENSITIVITY ANALYSIS
Considering that the Company has entered into financial derivative transactions for hedging purposes and given the low
amount of the financial derivative instruments that proved ineffective as a hedge, the Company has determined that such transactions are not material and, accordingly, the sensitivity analysis referred to in Section IV of the Official Communication
is not applicable.
In those cases where the derivative instruments of the Company are for hedging purposes, for a material
amount and where the effectiveness measures were sufficient, the measures are justified when the standard deviation of the changes in cash flow as a result of changes in the variables of exchange rate and interest rates of the derivative
instruments used jointly with the underlying position is lower than the standard deviation of the changes in cash flow of the underlying position valued in pesos and the effective measures are defined by the correlation coefficient between both
positions for the effective measures to be sufficient.
TABLE 1
GRUPO TELEVISA, S.A.B.
Summary of Financial Derivative Instruments as of
December 31, 2022
(In thousands of Mexican pesos and/or U.S. dollars, as indicated)
|
Type of Derivative, Securities or Contract
|
Purpose (e.g., hedging, trading or other)
|
Notional Amount/Face Value
|
Value of the Underlying Asset / Reference Variable
|
Fair Value
|
|
Collateral/
Lines of Credit/
Securities Pledged
|
|
Current Quarter (5)
|
Previous Quarter (6)
|
Current Quarter Dr (Cr) (5)
|
Previous Quarter Dr (Cr) (6)
|
Maturing per Year
|
|
Interest Rate Swap (1)
|
Hedging
|
-
|
-
|
TIIE 28 días / 7.3275%
|
-
|
2,493
|
Monthly interest
2022
|
Does not exist (7)
|
|
Interest Rate Swap (1)
|
Hedging
|
-
|
-
|
TIIE 28 días / 7.3500%
|
-
|
4,872
|
Monthly interest
2022
|
Does not exist (7)
|
|
Interest Rate Swap (1)
|
Hedging
|
Ps.2,500,000
|
TIIE 28 days / 7.7485%
|
TIIE 28 days / 7.7485%
|
11,237
|
21,012
|
Monthly interest
2022-2023
|
Does not exist (7)
|
|
Interest Rate Swap (1)
|
Hedging
|
Ps.10,000,000
|
TIIE 28 days / 6.7620%
|
TIIE 28 days / 6.7620%
|
532,344
|
579,293
|
Monthly interest
2022-2024
|
Does not exist (7)
|
|
Forward (1)
|
Hedging
|
U.S.$113,388/ Ps.2,282,376
|
U.S.$113,388/ Ps.2,282,376
|
U.S.$56,694/ Ps.1,143,620
|
(34,801)
|
4,749
|
2022
|
Does not exist (7)
|
|
Forward (2)
|
Hedging
|
U.S.$27,963/ Ps.561,992
|
U.S.$27,963/ Ps.561,992
|
U.S.$13,982/ Ps.281,733
|
(7,650)
|
1,744
|
2022
|
Does not exist (7)
|
|
Forward (3)
|
Hedging
|
U.S.$38,649/ Ps.778,253
|
U.S.$38,649/ Ps.778,253
|
U.S.$19,324/ Ps.389,391
|
(12,047)
|
2,411
|
2022
|
Does not exist (7)
|
|
Forward (4)
|
Hedging
|
U.S.$58,000/ Ps.1,166,786
|
U.S.$58,000/ Ps.1,166,786
|
-
|
(16,903)
|
-
|
2022
|
Does not exist (7)
|
| |
|
|
|
Total
|
472,180
|
616,574
|
|
|
|
(1)
|
Acquired by Grupo Televisa, S.A.B.
|
|
(2)
|
Acquired by Televisión Internacional, S.A. de C.V.
|
|
(3)
|
Acquired by Empresas Cablevisión, S.A.B. de C.V.
|
|
(4)
|
Acquired by Corporación Novavisión S. de R.L. de C.V.
|
|
(5)
|
The aggregate amount of the derivatives reflected in the consolidated statement of financial position of Grupo Televisa, S.A.B. as of December 31,
2022, is as follows:
|
| |
|
|
|
| |
Other financial assets
|
Ps.
|
11,237
|
| |
Other non-current financial assets
|
|
532,344
|
| |
Other financial liabilities
|
|
(71,401)
|
| |
|
Ps.
|
472,180
|
|
(6)
|
Information as of September 30, 2022.
|
|
(7)
|
Applies only to implicit financing in the ISDA ancillary agreements identified as “Credit Support”.
|
[800100] Notes - Subclassifications of assets, liabilities and equities
|
Concept
|
Close Current Quarter
2022-12-31
|
Close Previous Exercise
2021-12-31
|
|
Subclassifications of assets, liabilities and equities
|
|
|
|
Cash and cash equivalents
|
|
|
|
Cash
|
|
|
|
Cash on hand
|
53,697,000
|
53,176,000
|
|
Balances with banks
|
1,988,185,000
|
1,127,641,000
|
|
Total cash
|
2,041,882,000
|
1,180,817,000
|
|
Cash equivalents
|
|
|
|
Short-term deposits, classified as cash equivalents
|
49,089,110,000
|
24,647,398,000
|
|
Short-term investments, classified as cash equivalents
|
0
|
0
|
|
Other banking arrangements, classified as cash equivalents
|
0
|
0
|
|
Total cash equivalents
|
49,089,110,000
|
24,647,398,000
|
|
Other cash and cash equivalents
|
0
|
0
|
|
Total cash and cash equivalents
|
51,130,992,000
|
25,828,215,000
|
|
Trade and other current receivables
|
|
|
|
Current trade receivables
|
8,457,302,000
|
13,093,011,000
|
|
Current receivables due from related parties
|
311,224,000
|
874,852,000
|
|
Current prepayments
|
|
|
|
Current advances to suppliers
|
0
|
0
|
|
Current prepaid expenses
|
1,431,137,000
|
3,031,233,000
|
|
Total current prepayments
|
1,431,137,000
|
3,031,233,000
|
|
Current receivables from taxes other than income tax
|
6,563,638,000
|
9,417,978,000
|
|
Current value added tax receivables
|
6,500,804,000
|
9,337,972,000
|
|
Current receivables from sale of properties
|
0
|
0
|
|
Current receivables from rental of properties
|
0
|
0
|
|
Other current receivables
|
2,681,893,000
|
2,164,284,000
|
|
Total trade and other current receivables
|
19,445,194,000
|
28,581,358,000
|
|
Classes of current inventories
|
|
|
|
Current raw materials and current production supplies
|
|
|
|
Current raw materials
|
0
|
0
|
|
Current production supplies
|
0
|
0
|
|
Total current raw materials and current production supplies
|
0
|
0
|
|
Current merchandise
|
0
|
0
|
|
Current work in progress
|
0
|
0
|
|
Current finished goods
|
0
|
0
|
|
Current spare parts
|
0
|
0
|
|
Property intended for sale in ordinary course of business
|
0
|
0
|
|
Other current inventories
|
1,448,278,000
|
2,212,859,000
|
|
Total current inventories
|
1,448,278,000
|
2,212,859,000
|
|
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
|
|
|
|
Non-current assets or disposal groups classified as held for sale
|
0
|
0
|
|
Non-current assets or disposal groups classified as held for distribution to owners
|
0
|
0
|
|
Total non-current assets or disposal groups classified as held for sale or as held for distribution to owners
|
0
|
0
|
|
Trade and other non-current receivables
|
|
|
|
Non-current trade receivables
|
438,376,000
|
385,060,000
|
|
Non-current receivables due from related parties
|
6,365,038,000
|
0
|
|
Non-current prepayments
|
0
|
0
|
|
Non-current lease prepayments
|
0
|
0
|
|
Non-current receivables from taxes other than income tax
|
0
|
0
|
|
Non-current value added tax receivables
|
0
|
0
|
|
Non-current receivables from sale of properties
|
0
|
0
|
|
Non-current receivables from rental of properties
|
0
|
0
|
|
Revenue for billing
|
0
|
0
|
|
Other non-current receivables
|
0
|
0
|
|
Total trade and other non-current receivables
|
6,803,414,000
|
385,060,000
|
|
Investments in subsidiaries, joint ventures and associates
|
|
|
|
Investments in subsidiaries
|
0
|
0
|
|
Investments in joint ventures
|
952,736,000
|
817,793,000
|
|
Investments in associates
|
48,456,177,000
|
25,886,442,000
|
|
Total investments in subsidiaries, joint ventures and associates
|
49,408,913,000
|
26,704,235,000
|
|
Property, plant and equipment
|
|
|
|
Land and buildings
|
|
|
|
Land
|
4,064,386,000
|
4,891,626,000
|
|
Buildings
|
2,888,775,000
|
4,767,765,000
|
|
Total land and buildings
|
6,953,161,000
|
9,659,391,000
|
|
Machinery
|
60,014,208,000
|
58,966,115,000
|
|
Vehicles
|
|
|
|
Ships
|
0
|
0
|
|
Aircraft
|
500,338,000
|
507,644,000
|
|
Motor vehicles
|
557,127,000
|
734,360,000
|
|
Total vehicles
|
1,057,465,000
|
1,242,004,000
|
|
Fixtures and fittings
|
414,411,000
|
521,800,000
|
|
Office equipment
|
1,564,859,000
|
2,117,027,000
|
|
Tangible exploration and evaluation assets
|
0
|
0
|
|
Mining assets
|
0
|
0
|
|
Oil and gas assets
|
0
|
0
|
|
Construction in progress
|
11,570,777,000
|
14,535,546,000
|
|
Construction prepayments
|
0
|
0
|
|
Other property, plant and equipment
|
661,518,000
|
880,243,000
|
|
Total property, plant and equipment
|
82,236,399,000
|
87,922,126,000
|
|
Investment property
|
|
|
|
Investment property completed
|
2,873,165,000
|
0
|
|
Investment property under construction or development
|
0
|
0
|
|
Investment property prepayments
|
0
|
0
|
|
Total investment property
|
2,873,165,000
|
0
|
|
Intangible assets and goodwill
|
|
|
|
Intangible assets other than goodwill
|
|
|
|
Brand names
|
144,354,000
|
218,896,000
|
|
Intangible exploration and evaluation assets
|
0
|
0
|
|
Mastheads and publishing titles
|
0
|
0
|
|
Computer software
|
4,159,246,000
|
5,158,928,000
|
|
Licences and franchises
|
0
|
0
|
|
Copyrights, patents and other industrial property rights, service and operating rights
|
0
|
0
|
|
Recipes, formulae, models, designs and prototypes
|
0
|
0
|
|
Intangible assets under development
|
0
|
0
|
|
Other intangible assets
|
22,914,989,000
|
22,841,400,000
|
|
Total intangible assets other than goodwill
|
27,218,589,000
|
28,219,224,000
|
|
Goodwill
|
13,904,998,000
|
14,036,657,000
|
|
Total intangible assets and goodwill
|
41,123,587,000
|
42,255,881,000
|
|
Trade and other current payables
|
|
|
|
Current trade payables
|
16,180,521,000
|
22,874,341,000
|
|
Current payables to related parties
|
88,324,000
|
82,070,000
|
|
Accruals and deferred income classified as current
|
|
|
|
Deferred income classified as current
|
2,128,764,000
|
8,998,556,000
|
|
Rent deferred income classified as current
|
0
|
0
|
|
Accruals classified as current
|
2,893,763,000
|
4,847,210,000
|
|
Short-term employee benefits accruals
|
1,384,808,000
|
2,332,260,000
|
|
Total accruals and deferred income classified as current
|
5,022,527,000
|
13,845,766,000
|
|
Current payables on social security and taxes other than income tax
|
2,388,130,000
|
3,900,861,000
|
|
Current value added tax payables
|
1,846,542,000
|
3,143,958,000
|
|
Current retention payables
|
273,080,000
|
516,099,000
|
|
Other current payables
|
0
|
0
|
|
Total trade and other current payables
|
23,952,582,000
|
41,219,137,000
|
|
Other current financial liabilities
|
|
|
|
Bank loans current
|
1,000,000,000
|
4,106,432,000
|
|
Stock market loans current
|
0
|
0
|
|
Other current liabilities at no cost
|
0
|
0
|
|
Other current liabilities no cost
|
71,401,000
|
149,087,000
|
|
Other current financial liabilities
|
1,761,069,000
|
2,034,577,000
|
|
Total Other current financial liabilities
|
2,832,470,000
|
6,290,096,000
|
|
Trade and other non-current payables
|
|
|
|
Non-current trade payables
|
480,808,000
|
5,328,025,000
|
|
Non-current payables to related parties
|
0
|
0
|
|
Accruals and deferred income classified as non-current
|
|
|
|
Deferred income classified as non-current
|
5,178,014,000
|
0
|
|
Rent deferred income classified as non-current
|
0
|
0
|
|
Accruals classified as non-current
|
0
|
0
|
|
Total accruals and deferred income classified as non-current
|
5,178,014,000
|
0
|
|
Non-current payables on social security and taxes other than income tax
|
0
|
0
|
|
Non-current value added tax payables
|
0
|
0
|
|
Non-current retention payables
|
0
|
0
|
|
Other non-current payables
|
0
|
0
|
|
Total trade and other non-current payables
|
5,658,822,000
|
5,328,025,000
|
|
Other non-current financial liabilities
|
|
|
|
Bank loans non-current
|
12,617,243,000
|
16,093,167,000
|
|
Stock market loans non-current
|
91,623,407,000
|
105,592,543,000
|
|
Other non-current liabilities at no cost
|
0
|
0
|
|
Other non-current liabilities no cost
|
0
|
23,798,000
|
|
Other non-current financial liabilities
|
0
|
0
|
|
Total Other non-current financial liabilities
|
104,240,650,000
|
121,709,508,000
|
|
Other provisions
|
|
|
|
Other non-current provisions
|
1,690,454,000
|
1,079,671,000
|
|
Other current provisions
|
1,851,392,000
|
1,107,000
|
|
Total other provisions
|
3,541,846,000
|
1,080,778,000
|
|
Other reserves
|
|
|
|
Revaluation surplus
|
0
|
0
|
|
Reserve of exchange differences on translation
|
940,674,000
|
2,040,114,000
|
|
Reserve of cash flow hedges
|
285,532,000
|
8,467,000
|
|
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
|
0
|
0
|
|
Reserve of change in value of time value of options
|
0
|
0
|
|
Reserve of change in value of forward elements of forward contracts
|
0
|
0
|
|
Reserve of change in value of foreign currency basis spreads
|
0
|
0
|
|
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income
|
(15,767,224,000)
|
(15,040,193,000)
|
|
Reserve of gains and losses on remeasuring available-for-sale financial assets
|
0
|
0
|
|
Reserve of share-based payments
|
0
|
0
|
|
Reserve of remeasurements of defined benefit plans
|
(634,406,000)
|
(739,646,000)
|
|
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for
sale
|
0
|
0
|
|
Reserve of gains and losses from investments in equity instruments
|
0
|
0
|
|
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
|
0
|
0
|
|
Reserve for catastrophe
|
0
|
0
|
|
Reserve for equalisation
|
0
|
0
|
|
Reserve of discretionary participation features
|
0
|
0
|
|
Reserve of equity component of convertible instruments
|
0
|
0
|
|
Capital redemption reserve
|
0
|
0
|
|
Merger reserve
|
0
|
0
|
|
Statutory reserve
|
0
|
0
|
|
Other comprehensive income
|
4,376,946,000
|
109,266,000
|
|
Total other reserves
|
(10,798,478,000)
|
(13,621,992,000)
|
|
Net assets (liabilities)
|
|
|
|
Assets
|
297,705,069,000
|
293,742,081,000
|
|
Liabilities
|
155,313,410,000
|
197,218,017,000
|
|
Net assets (liabilities)
|
142,391,659,000
|
96,524,064,000
|
|
Net current assets (liabilities)
|
|
|
|
Current assets
|
81,533,698,000
|
73,258,950,000
|
|
Current liabilities
|
34,696,946,000
|
56,669,522,000
|
|
Net current assets (liabilities)
|
46,836,752,000
|
16,589,428,000
|
[800200] Notes - Analysis of income and expense
|
Concept
|
Accumulated Current Year
2022-01-01 - 2022-12-31
|
Accumulated Previous Year
2021-01-01 - 2021-12-31
|
Quarter Current Year
2022-10-01 - 2022-12-31
|
Quarter Previous Year
2021-10-01 - 2021-12-31
|
|
Analysis of income and expense
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Revenue from rendering of services
|
59,788,397,000
|
57,331,417,000
|
15,142,976,000
|
14,725,807,000
|
|
Revenue from sale of goods
|
683,740,000
|
775,318,000
|
163,702,000
|
156,571,000
|
|
Interest income
|
0
|
0
|
0
|
0
|
|
Royalty income
|
1,187,135,000
|
689,870,000
|
393,436,000
|
213,520,000
|
|
Dividend income
|
0
|
0
|
0
|
0
|
|
Rental income
|
13,867,337,000
|
15,118,827,000
|
3,432,153,000
|
3,733,197,000
|
|
Revenue from construction contracts
|
0
|
0
|
0
|
0
|
|
Other revenue
|
0
|
0
|
0
|
0
|
|
Total revenue
|
75,526,609,000
|
73,915,432,000
|
19,132,267,000
|
18,829,095,000
|
|
Finance income
|
|
|
|
|
|
Interest income
|
2,151,109,000
|
560,026,000
|
594,366,000
|
30,229,000
|
|
Net gain on foreign exchange
|
0
|
0
|
0
|
0
|
|
Gains on change in fair value of derivatives
|
0
|
0
|
0
|
0
|
|
Gain on change in fair value of financial instruments
|
0
|
0
|
0
|
0
|
|
Other finance income
|
0
|
0
|
0
|
0
|
|
Total finance income
|
2,151,109,000
|
560,026,000
|
594,366,000
|
30,229,000
|
|
Finance costs
|
|
|
|
|
|
Interest expense
|
9,455,578,000
|
9,105,998,000
|
2,134,791,000
|
2,332,561,000
|
|
Net loss on foreign exchange
|
1,780,073,000
|
2,188,861,000
|
619,743,000
|
276,708,000
|
|
Losses on change in fair value of derivatives
|
110,739,000
|
1,183,180,000
|
53,394,000
|
217,917,000
|
|
Loss on change in fair value of financial instruments
|
0
|
0
|
0
|
0
|
|
Other finance cost
|
0
|
0
|
0
|
0
|
|
Total finance costs
|
11,346,390,000
|
12,478,039,000
|
2,807,928,000
|
2,827,186,000
|
|
Tax income (expense)
|
|
|
|
|
|
Current tax
|
2,317,519,000
|
1,356,052,000
|
1,823,647,000
|
(1,461,042,000)
|
|
Deferred tax
|
(3,284,896,000)
|
317,002,000
|
(3,775,322,000)
|
3,472,388,000
|
|
Total tax income (expense)
|
(967,377,000)
|
1,673,054,000
|
(1,951,675,000)
|
2,011,346,000
|
[800500] Notes - List of notes
Disclosure of notes and other explanatory information
See Notes 1 and 2 of the Disclosure of interim financial reporting.
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 December 31, 2022 and
December 31, 2021, and for the twelve months ended December 31, 2022 and 2021, 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, 2021 and 2020, 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 December 31, 2022. The adoption of the improvements and amendments to current IFRSs effective on
January 1, 2022 did not have a significant impact in these interim un audited condensed consolidated financial statements.
Disclosure of significant accounting policies
The principal accounting policies followed by the Group and used in the preparation of its annual consolidated financial statements
as of December 31, 2021, and where applicable, of its interim condensed consolidated financial statements, are summarized below.
| (a) |
Basis of Presentation
|
The consolidated financial statements of the Group as of December 31, 2021 and 2020, and for the years ended December 31, 2021, 2020 and 2019, are
presented in accordance with International Financial Reporting Standards (“IFRS Standards”), as issued by the International Accounting Standards Board (“IASB”). IFRS Standards comprise: (i) IFRS Standards; (ii) International Accounting Standards
(“IAS Standards”); (iii) IFRS Interpretations Committee (“IFRIC”) Interpretations; and (iv) Standing Interpretations Committee (“SIC”) Interpretations.
The consolidated financial statements have been prepared on a historical cost basis, except for the measurement at fair value of derivative financial
instruments, financial assets, investments in equity financial instruments, plan assets of post-employment benefits and share-based payments, as described in the notes to the financial statements below.
The preparation of consolidated financial statements in conformity with IFRS Standards, requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of applying the Group’s accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the period the assumptions changed. Management
believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where estimates and assumptions are significant to the Group’s financial statements are disclosed in Note 5 to these
consolidated financial statements.
These consolidated financial statements were authorized for issuance on March 30, 2022, by the Group’s Corporate Vice President of Finance.
The financial statements of the Group are prepared on a consolidated basis and include the assets, liabilities and results of operations of all companies in which the
Company has a controlling interest (subsidiaries). All intercompany balances and transactions have been eliminated from the consolidated financial statements.
Subsidiaries
Subsidiaries are all entities over which the Company has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether or
not the Company controls another entity. The subsidiaries are consolidated from the date on which control is obtained by the Company and cease to consolidate from the date on which said control is lost.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the
assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling
interest in the acquiree on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable
assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in income or loss.
Changes in Ownership Interests in Subsidiaries without Change of Control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions with the owners in
their capacity as owners. The difference between fair value of any consideration paid and the interest acquired of the carrying amount of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of non-controlling
interests are also recorded in equity.
Loss of Control of a Subsidiary
When the Company ceases to have control of a subsidiary, any retained interest in the entity is remeasured to its fair value at the date when control
is lost, with the change in carrying amount recognized in income or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In
addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts previously recognized in
other comprehensive income are reclassified to income or loss except for certain equity financial instruments designated irrevocably with changes in other comprehensive income or loss.
At December 31, 2021 and 2020, the main direct and indirect subsidiaries of the Company were as follows:
| Subsidiaries |
|
Company’s
Ownership
Interest (1)
|
|
|
Business
Segment (2)
|
|
|
|
|
|
|
|
Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, “Empresas Cablevisión”) (3)
|
|
51.2
|
%
|
|
|
Cable
|
|
Subsidiaries engaged in the Cablemás business (collectively, “Cablemás”) (4)
|
|
100
|
%
|
|
|
Cable
|
|
Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, “TVI”) (5)
|
|
100
|
%
|
|
|
Cable
|
|
Cablestar, S.A. de C.V. and subsidiaries (collectively, “Bestel”) (6)
|
|
66.2
|
%
|
|
|
Cable
|
|
Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, “Cablecom”) (7)
|
|
100
|
%
|
|
|
Cable
|
|
Subsidiaries engaged in the Telecable business (collectively, “Telecable”) (8)
|
|
100
|
%
|
|
|
Cable
|
|
FTTH de México, S.A. de C.V. (9)
|
|
100
|
%
|
|
|
Cable
|
|
Corporativo Vasco de Quiroga, S.A. de C.V. (“CVQ”) and subsidiaries (10)
|
|
100
|
%
|
|
|
Cable and Sky
|
|
Innova, S. de R.L. de C.V. (“Innova”) and subsidiaries (collectively, “Sky”) (11)
|
|
58.7
|
%
|
|
|
Sky
|
|
Grupo Telesistema, S.A. de C.V. (“Grupo Telesistema”) and subsidiaries
|
|
100
|
%
|
|
|
Content and Other Businesses
|
|
Televisa, S. de R. L. de C.V. (Televisa, S.A. de C.V. through May 2021) (“Televisa”) (12)
|
|
100
|
%
|
|
|
Content
|
|
Televisión Independiente de México, S.A. de C.V. (“TIM”) (12)
|
|
100
|
%
|
|
|
Content
|
|
G.Televisa-D, S.A. de C.V. (12)
|
|
100
|
%
|
|
|
Content
|
|
Multimedia Telecom, S.A. de C.V. (“Multimedia Telecom”) and subsidiary (13)
|
|
100
|
%
|
|
|
Content
|
|
Ulvik, S.A. de C.V. (14)
|
|
100
|
%
|
|
|
Content and Other Businesses
|
|
Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries
|
|
100
|
%
|
|
|
Other Businesses
|
|
Editorial Televisa, S.A. de C.V. and subsidiaries
|
|
100
|
%
|
|
|
Other Businesses
|
|
Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries
|
|
100
|
%
|
|
|
Other Businesses
|
|
Villacezán, S.A. de C.V. (“Villacezán”) and subsidiaries (15)
|
|
100
|
%
|
|
|
Other Businesses
|
|
Sistema Radiópolis, S.A. de C.V. (“Radiópolis”) and subsidiaries (16)
|
|
—
|
|
|
|
Disposed operations in 2020
|
|
(1)
|
Percentage of equity interest directly or indirectly held by the Company.
|
|
(2)
|
See Note 26 for a description of each of the Group’s business segments. See Notes 3 and 30 for the Group’s transaction with UH II, which was
concluded on January 31, 2022.
|
|
(3)
|
Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ.
|
|
(4)
|
The subsidiaries in the Cablemás business are directly and indirectly owned by CVQ.
|
|
(5)
|
Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ.
|
| |
|
| (6) |
Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V. |
| |
|
| (7) |
Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ. |
| |
|
| (8) |
The subsidiaries in the Telecable business are directly owned by CVQ. |
| |
|
| (9) |
FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ. |
| |
|
| (10) |
CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom, Telecable and Innova.
|
(11)
|
Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. (“Sky DTH”), and a direct majority-owned subsidiary of
Innova Holdings, S. de R.L. de C.V. (“Innova Holdings”). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova’s equity and designates a majority of
the members of Innova’s Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in the Group and Sky. These veto rights are
protective in nature and do not affect decisions about relevant business activities of Innova.
|
| |
|
(12)
|
TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema. Through January 31, 2022, Televisa was a direct subsidiary of
Grupo Telesistema. |
| |
|
(13)
|
Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. (“Tieren”), are indirect wholly-owned subsidiaries of Grupo
Telesistema, through which the Company owns shares of the capital stock of UH II, the successor company of Univision Holdings, Inc. (“UHI”) and the parent company of Univision, and maintained through December 29, 2020, an investment in
warrants that were exercised for shares of common stock of UHI on that date. Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group’s aggregate investment in shares of common stock issued by
UH II as of December 31, 2021, and UHI as of December 31, 2020 (see Notes 3, 9, 10 and 20).
|
|
|
|
(14)
|
Direct subsidiary through which the Group conducts certain operations of its Other Businesses segment, and conducted certain operations of its Content
segment through January 31, 2022.
|
|
|
|
(15)
|
Villacezán is an indirect subsidiary of Grupo Telesistema. |
|
|
|
|
(16)
|
In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a direct subsidiary of the Company
through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of Radiópolis. The Radio business was part
the of the Group’s Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its operating results, were classified as held for
sale in the Group’s consolidated financial statements through June 30, 2020 (see Notes 3 and 26). |
The Group’s Cable, Sky and Content segments, require governmental concessions and special authorizations for the provision of broadcasting and
telecommunications services in Mexico. Such concessions are granted by the Mexican Institute of Telecommunications (“Instituto Federal de Telecomunicaciones” or “IFT”) for a fixed term, subject to renewal in accordance with the Mexican
Telecommunications and Broadcasting Law (“Ley Federal de Telecomunicaciones y Radiodifusión” or “LFTR”).
Renewal of concessions for the Cable and Sky segments require, among others: (i) to request its renewal to IFT prior to the last fifth period of the
fixed term of the related concession; (ii) to be in compliance with the concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; and (iii) the acceptance by the concession holder of any new conditions
for renewing the concession as set forth by IFT. IFT shall resolve any request for renewal of the telecommunications concessions within 180 business days of its request. Failure to respond within such period of time shall be interpreted as if the
request for renewal has been granted.
Renewal of broadcasting concessions for the Content segment through January 31, 2022, and for the broadcast programming operations over television
stations for the signals of TelevisaUnivision beginning on February 1, 2022, require, among others: (i) to request such renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the
concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; (iii) a declaration by IFT that there is no public interest in recovering the spectrum granted under the related concession; and (iv) the
acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT, including the payment of a related fee. IFT shall resolve within the year following the presentation of the request, if there is public
interest in recovering the spectrum granted under the related concession, in which case it will notify its determination and proceed with the termination of the concession at the end of its fixed term. If IFT determines that there is no public
interest in recovering the spectrum, it will grant the requested extension within 180 business days, provided that the concessionaire accepts, in advance, the new conditions set by IFT, which will include the payment of the fee referred to above.
Such fee will be determined by IFT for the relevant concessions, considering the following elements: (i) the frequency band; (ii) the amount of spectrum; (iii) coverage of the frequency band; (iv) domestic and international benchmark regarding the
market value of frequency bands; and (v) upon request of IFT, an opinion issued by the Ministry of Finance and Public Credit of IFT´s proposal for calculation of the fee.
The regulations of the broadcasting and the telecommunications concessions (including satellite pay TV) establish that at the end of the concession, the
frequency bands or spectrum attached to the services provided in the concessions shall return to the Mexican government. In addition, at the end of the concession, the Mexican government will have the preferential right to acquire infrastructure,
equipment and other goods directly used in the provision of the concession. If the Mexican government were to exercise its right to acquire infrastructure, equipment and other goods, it would be required to pay a price that is equivalent to a
formula that is similar to fair value. To the knowledge of the Company’s management, no spectrum granted for broadcasting services in Mexico has been recovered by the Mexican government in at least the past three decades for public interest
reasons. However, the Company’s management is unable to predict the outcome of any action by IFT in this regard. In addition, these assets, by themselves, would not be enough to immediately begin broadcasting or offering satellite pay TV services
or telecommunications services, as no content producing assets or other equipment necessary to operate the business would be included.
Also, the Group’s Gaming business, which is reported in the Other Businesses segment, requires a permit granted by the Mexican Federal Government for a
fixed term, subject to renewal in accordance with Mexican law. Additionally, the Group’s Sky businesses in Central America and the Dominican Republic require concessions or permits granted by local regulatory authorities for a fixed term, subject
to renewal in accordance with local laws.
The accounting guidelines provided by IFRIC 12 Service Concession Arrangements, are not applicable to the
Group due primarily to the following factors: (i) the Mexican government does not substantially control the Group’s infrastructure, what services are provided with the infrastructure and the price at which such services are offered; (ii) the
Group’s broadcasting service does not constitute a public service as per the definition in IFRIC 12; and (iii) the Group is unable to divide its infrastructure among the public (telephony and possibly Internet services) and non-public (pay TV)
service components.
At December 31, 2021, the expiration dates of the Group’s concessions and permits were as follows:
|
Segments
|
|
Expiration Dates
|
|
Cable
|
|
Various from 2026 to 2056
|
|
Sky
|
|
Various from 2022 to 2056
|
|
Content (broadcasting concessions) (1)
|
|
In 2021, and the relevant renewals started in 2022 ending in 2042 and 2052
|
|
Other Businesses:
|
|
|
|
Gaming
|
|
In 2030
|
| |
|
|
|
(1)
|
In November 2018, the IFT approved (i) 23 concessions for the use of spectrum that comprise the Company’s 225 TV stations,
for a term of 20 years, starting in January 2022 and ending in January 2042, and (ii) six concessions that grant the authorization to provide digital broadcasting television services of such 225 TV stations, for a term of 30 years,
starting in January 2022 and ending in January 2052. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized this
payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13).
|
The concessions or permits held by the Group are not subject to any significant pricing regulations in the ordinary course of business.
|
(c)
|
Investments in Associates and Joint Ventures
|
Associates are those entities over which the Group has significant influence but not control or joint control, over the financial and operating policies,
generally those entities with a shareholding of between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each
investor. Joint ventures are those joint arrangements where the Group exercises joint control with other stockholder or more stockholders, without exercising control individually, and have rights to the net assets of the joint arrangements.
Investments in associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the
investor’s share of the net assets of the investee after the date of acquisition. The investor’s income or loss includes its share of the investee’s income or loss and the investor’s other comprehensive income includes its share of the investee’s
other comprehensive income.
The Group’s investments in associates include an equity interest in UH II (the successor company of UHI) represented by approximately 35.5% and 35.9% of
the outstanding total shares of UH II (the successor company of UHI) as of December 31, 2021 and 2020, respectively (see Notes 3, 9 and 10).
If the Group’s share of losses of an associate or a joint venture equals or exceeds its interest in the investee, the Group discontinues recognizing its
share of further losses. The interest in an associate or a joint venture is the carrying amount of the investment in the investee under the equity method together with any other long-term investment that, in substance, form part of the Group’s net
investment in the investee. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf
of the associate or joint venture.
Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s Co-Chief Executive Officers (“chief operating
decision makers”), who are responsible for allocating resources and assessing performance for each of the Group’s operating segments.
|
(e)
|
Foreign Currency Translation
|
Functional and Presentation Currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the
entity operates (“functional currency”). The presentation and reporting currency of the Group’s consolidated financial statements is the Mexican peso, which is used for compliance with its legal and tax obligations.
Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or
measurement where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognized in the statement of income as part of finance income or expense, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as investments in financial instruments are analyzed between
exchange differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in income or loss, and other
changes in carrying amount are recognized in other comprehensive income or loss.
Translation of Foreign Operations
The financial statements of the Group’s foreign entities that have a functional currency different from the presentation currency are translated into the
presentation currency as follows: (a) assets and liabilities are translated at the closing rate at the date of the statement of financial position; (b) income and expenses are translated at average exchange rates (unless this average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); (c) stockholders' equity accounts are translated at
the prevailing exchange rate at the time capital contributions were made and earnings were generated and (d) all resulting translation differences are recognized in other comprehensive income or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate. Translation differences arising are recognized in other comprehensive income or loss.
Assets and liabilities in foreign currencies of non-Mexican subsidiaries that use the Mexican Peso as a functional currency are initially converted to
Mexican Pesos by utilizing the exchange rate of the statement of financial position date for monetary assets and liabilities, and historical exchange rates for non-monetary items, with the related adjustment included in the consolidated statement of
income as finance income or expense.
A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item
“Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a hedge of a net investment in a foreign operation in connection with the Group’s investment in shares of UH II (UHI, until May 18,
2021) (hedged item), which amounted to U.S.$1,254.5 million (Ps.25,721,539) and U.S.$1,074.0 million (Ps.21,424,180) as of December 31, 2021 and 2020, respectively. Consequently, any foreign exchange gain or loss attributable to this designated
hedging long-term debt is credited or charged directly to other comprehensive income or loss as a cumulative result from foreign currency translation (see Note 10).
A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item
“Long-term debt, net of current portion” of the consolidated statement of financial position) was designated as a fair value hedge of foreign exchange exposure related to its investment in warrants that were exercisable for common stock of UHI
(hedged item) through December 29, 2020, the date on which the Group exercised all of these warrants for common stock of UHI, which amounted to Ps.17,387,699 (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 (U.S.$1,788.6 million) as of
December 31, 2019. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt was credited or charged directly to other comprehensive income or loss through December 29, 2020, along with the recognition in
the same line item of any foreign currency gain or loss of this investment in warrants designated as a hedged item through that date (see Notes 9, 14 and 18).
A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item
“Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a fair value hedge of foreign exchange exposure related to its investment in Open-Ended Fund (hedged item), which amounted to
Ps.945,176 (U.S.$46.1 million) and Ps.1,135,803 (U.S.$56.9 million), as of December 31, 2021 and 2020, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged
directly to other comprehensive income or loss, along with the recognition in the same line item of any foreign currency gain or loss of this investment in Open-Ended Fund designated
as a hedged item (see Notes 9, 14 and 18).
| (f) |
Cash and Cash Equivalents and Temporary Investments
|
Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three months or less at the date of
acquisition. Cash is stated at nominal value and cash equivalents are measured at fair value, and the changes in the fair value are recognized in the statement of income.
Temporary investments consist of short-term investments in securities, including without limitation debt with a maturity of over three months and up
to one year at the date of acquisition, stock and other financial instruments, or a combination thereof, as well as current maturities of noncurrent financial assets. Temporary investments are measured at fair value with changes in fair value
recognized in finance income in the consolidated income statement, except the current maturities of non-current held-to-maturity securities which are measured at amortized cost.
As of December 31, 2021 and 2020, cash equivalents and temporary investments primarily consisted of fixed short-term deposits and corporate fixed
income securities denominated in U.S. dollars and Mexican pesos, with an average yield of approximately 0.07% for U.S. dollar deposits and 4.36% for Mexican peso deposits in 2021, and approximately 0.38% for U.S. dollar deposits and 5.40% for
Mexican peso deposits in 2020.
| (g) |
Transmission Rights and Programming
|
Programming is comprised of programs, literary works, production talent advances and films.
Transmission rights and literary works are valued at the lesser of acquisition cost and net realizable value. Programs and films are valued at the
lesser of production cost, which consists of direct production costs and production overhead, and net realizable value. Payments for production talent advances are initially capitalized and subsequently included as direct or indirect costs of
program production. Transmission rights are recognized from the point of which the legally enforceable license period begins. Until the license term commences and the programming rights are available, payments made are recognized as prepayments.
The Group’s policy is to capitalize the production costs of programs which benefit more than one annual period and amortize them over the expected
period of future program revenues based on the Company’s historical revenue patterns and usage for similar productions.
Transmission rights, programs, literary works, production talent advances and films are recorded at acquisition or production cost. Cost of sales is
calculated and recorded for the month in which such transmission rights, programs, literary works, production talent advances and films are matched with related revenues.
Transmission rights are recognized in income over the lives of the contracts. Transmission rights in perpetuity are amortized on a straight-line basis
over the period of the expected benefit as determined by past experience, but not exceeding 25 years.
Inventories of paper, magazines, materials and supplies for maintenance of technical equipment are recorded at the lower of cost or its net realizable value. The net realization value is the estimated selling price
in the normal course of business, less estimated costs to conduct the sale. Cost is determined using the average cost method.
The Group classifies its financial assets in accordance with IFRS 9 Financial Instruments (“IFRS 9”) which
became effective on January 1, 2018. Under the guidelines of IFRS 9, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or loss (“FVOCIL”), or fair value through income
or loss (“FVIL”), based on the Company’s business model for managing the financial assets and the contractual cash flows characteristics of the financial asset.
Financial Assets Measured at Amortized Cost
Financial assets are measured at amortized cost when the objective of holding such financial assets is to collect contractual cash flows, and the
contractual terms of the financial asset give rise on specified dates to cash flows that are only payments of principal and interest on the principal amount outstanding. These financial assets are initially recognized at fair value plus
transaction costs and subsequently carried at amortized cost using the effective interest rate method, with changes in carrying amount recognized in the consolidated statement of income in the line which most appropriately reflects the nature of
the item or transaction. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period that are included in non-current assets. The Group’s financial assets measured at amortized costs are
primarily presented as “trade notes and accounts receivable”, “other accounts and notes receivable”, and “due from related parties” in the consolidated statement of financial position (see Note 7).
Financial Assets Measured at FVOCIL
Financial assets are measured at FVOCIL when the objective of holding such financial assets is both collecting contractual cash flows and selling
financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Group’s investments in certain equity instruments have been designated to be measured at FVOCIL, as permitted by IFRS 9. In connection with this
designation, any amounts presented in consolidated other comprehensive income are not subsequently transferred to consolidated income. Dividends from these equity instruments are recognized in consolidated income when the right to receive payment
of the dividend is established, and such dividend is probable to be paid to the Group.
Financial Assets at FVIL
Financial assets at FVIL are financial assets held for trading. A financial asset is classified in this category if acquired principally for the
purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they
are classified as non-current.
Impairment of Financial Assets
The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at FVOCIL. The impairment
methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from
initial recognition of the receivables (see Note 7).
Offsetting of Financial Instruments
Financial assets are offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only
when the Group: (i) currently has a legally enforceable right to set off the recognized amounts; and (ii) intends either to settle on a net basis, or to realize the assets and settle the liability simultaneously.
| (j) |
Property, Plant and Equipment
|
Property, plant and equipment are recorded at acquisition cost.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to income or loss during
the financial period in which they are incurred.
Land is not depreciated. Depreciation of property, plant and equipment is based upon the carrying amount of the assets in use and is
computed using the straight-line method over the estimated useful lives of the asset, as follows:
|
|
|
|
Estimated
Useful Lives
|
|
|
|
|
|
|
|
|
Buildings
|
|
|
20-65 years
|
|
|
Technical equipment
|
|
|
3-30 years
|
|
|
Satellite transponders
|
|
|
15 years
|
|
|
Furniture and fixtures
|
|
|
3-10 years
|
|
|
Transportation equipment
|
|
|
4-8 years
|
|
|
Computer equipment
|
|
|
3-6 years
|
|
|
Leasehold improvements
|
|
|
5-30 years
|
|
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income or expense in
the consolidated statement of income.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major
components) of property, plant and equipment.
Right-of-use assets are measured at cost comprising the following: the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs
and restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight – line basis. If the Group
is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and mostly leases of low-value assets are recognized on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
| (l) |
Intangible Assets and Goodwill
|
Intangible assets and goodwill are recognized at acquisition cost. Intangible assets and goodwill acquired through business combinations are recorded
at fair value at the date of acquisition. Intangible assets with indefinite useful lives, which include, trademarks, concessions, and goodwill, are not amortized, and subsequently recognized at cost less accumulated impairment losses.
Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives, as follows:
|
|
|
|
Estimated
Useful Lives
|
|
|
Trademarks with finite useful lives
|
|
|
4 years
|
|
|
Licenses
|
|
|
3-10 years
|
|
|
Subscriber lists
|
|
|
4-5 years
|
|
|
Payments for renewal of concessions
|
|
|
20 years
|
|
|
Other intangible assets
|
|
|
3-20 years
|
|
Trademarks
The Group determines its acquired trademarks to have an indefinite life when they are expected to generate net cash inflows for the Group indefinitely.
Additionally, the Group considers that there are no legal, regulatory or contractual provisions that limit the useful lives of trademarks. The Group has not capitalized any amounts associated with internally developed trademarks.
Concessions
The Group defined concessions to have an indefinite life due to the fact that the Group has a history of renewing its concessions upon expiration, has
maintained the concessions granted by the Mexican government, and has no foreseeable limit to the period over which the assets are expected to generate net cash inflows. In addition, the Group is committed to continue to invest for the long term
to extend the period over which the broadcasting and telecommunications concessions are expected to continue to provide economic benefits.
Any fees paid by the Group to regulatory authorities for concessions renewed are determined to have finite useful lives and are amortized on a
straight-live basis over the fixed term of the related concession.
Goodwill
Goodwill arises on the acquisition of a business and represents the excess of the consideration transferred over the Group’s interest in net fair value
of the identifiable assets, liabilities and contingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash generating units (“CGUs”), or
groups of CGUs, that are expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal
management purposes.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The
carrying amount of goodwill is compared to the recoverable amount, which is the higher between the value in use and the fair value less costs to sell. Any impairment of goodwill is recognized as an expense in the consolidated statement of income
and is not subject to be reversed in subsequent periods.
| (m) |
Impairment of Long-lived Assets
|
The Group reviews for impairment the carrying amounts of its long-lived assets, tangible and intangible, including goodwill (see Note 13), at least once
a year, or whenever events or changes in business circumstances indicate that these carrying amounts may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. To determine whether an impairment exists, the carrying amount of the reporting unit is compared with its recoverable amount. Fair value estimates are
based on quoted market values in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including discounted value of estimated future cash flows, market
multiples or third-party appraisal valuations. Any impairment of long-lived assets other than goodwill may be subsequently reversed under certain circumstances.
| (n) |
Trade Accounts Payable and Accrued Expenses
|
Trade accounts payable and accrued expenses are obligations to pay for goods or services that have been acquired in the ordinary course of business
from suppliers. Trade accounts payable and accrued expenses are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current
liabilities.
Trade accounts payable and accrued expenses are recognized initially at fair value and subsequently measured at amortized cost using the effective
interest method.
Trade accounts payable and accrued expenses are presented as a single item of consolidated current liabilities in the consolidated statements of
financial position as of December 31, 2021 and 2020.
Debt is recognized initially at fair value, net of transaction costs incurred. Debt is subsequently carried at amortized cost; any difference between
the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of income over the period on which the debt is outstanding using the effective interest method.
Fees paid on the establishment of debt facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of
the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for
liquidity services and amortized over the period of the facility to which it relates.
Current portion of long-term debt and interest payable are presented as a separate line item in the consolidated statements of financial position as of
December 31, 2021 and 2020.
Debt early redemption costs are recognized as finance expense in the consolidated statement of income.
| (p) |
Customer Deposits and Advances
|
Customer deposits and advance agreements for advertising services provide that customers receive prices that are fixed for the contract period for
advertising time in the Group’s platforms based on rates established by the Group. Such rates vary depending on when the advertisement is made, including the season, hour, day and type of programming.
The Group recognizes customer deposits and advance agreements for advertising services in the consolidated statement of financial position, when these agreements are executed either with a
consideration in cash paid by customers or with short-term non-interest bearing notes received from customers in connection with annual (“upfront basis”) and from time to time (“scatter basis”) prepayments (see Note 7). In connection with the
initial adoption of IFRS 15 Revenues from Contracts with Customers (“IFRS 15”) in the first quarter of 2018 (see Note 2 (s)), customer deposits and advances agreements are presented by the Group as a
contract liability in the consolidated statement of financial position when a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional, before the Group transfers services to the customer. Under
the guidelines of this standard, a contract liability is a Group’s obligation to transfer services or goods to a customer for which the Group has received consideration, or an amount of consideration is due, from the customer. In addition, the
Group recognizes contract asset upon the approval of non-cancellable contracts that generate an unconditional right to receive cash consideration prior to services being rendered. The Company’s management has consistently recognized that an
amount of consideration is due, for legal, finance and accounting purposes, when a short-term non-interest bearing note is received from a customer in connection with a deposit or advance agreement entered into with the customer for advertising
services to be rendered by the Group in the short term.
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.
Provisions are not recognized for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized as interest expense.
The capital stock and other equity accounts include the effect of restatement through December 31, 1997, determined by applying the change in the
Mexican National Consumer Price Index between the dates capital was contributed or net results were generated and December 31, 1997, the date through which the Mexican economy was considered hyperinflationary under the guidelines of IFRS Standards.
The restatement represented the amount required to maintain the contributions and accumulated results in Mexican Pesos in purchasing power as of December 31, 1997.
Where any company in the Group purchases shares of the Company’s capital stock (shares repurchased), the consideration paid, including any directly
attributable incremental costs is deducted from equity attributable to stockholders of the Company until the shares are cancelled, reissued, or sold. Where such shares repurchased are subsequently reissued or sold, any consideration received, net
of any directly attributable incremental transaction costs, is included in equity attributable to stockholders of the Company.
| (s) |
Revenue Recognition and Contract Costs
|
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided. The Group
recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Group’s activities, as described below. The
Group bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
The Group derives the majority of its revenues from media and entertainment-related business activities both in Mexico and internationally. Revenues are
recognized when the service is provided and collection is probable. A summary of revenue recognition policies by significant activity is as follows:
|
•
|
Cable television, internet and telephone subscription, and pay-per-view and installation fees are recognized in the period in which the
services are rendered.
|
|
|
Revenues from other telecommunications and data services are recognized in the period in which these services are provided. Other telecommunications services
include long distance and local telephony, as well as leasing and maintenance of telecommunications facilities.
|
| • |
Sky program service revenues, including advances from customers for future direct-to-home (“DTH”) program services, are recognized at the time the service is provided.
|
| • |
Advertising revenues, including deposits and advances from customers for future advertising, are recognized at the time the advertising services were rendered.
|
| • |
Revenues from program services for network subscription and licensed and syndicated television programs are recognized when the programs were sold and became available for broadcast.
|
| • |
Revenues from magazine subscriptions are initially deferred and recognized proportionately as products are delivered to subscribers. Revenues from the sales of magazines are recognized
on the date of circulation of delivered merchandise, net of a provision for estimated returns.
|
| • |
Revenues from publishing distribution are recognized upon distribution of the products.
|
| • |
Revenues from attendance to soccer games, including revenues from advance ticket sales for soccer games and other promotional events, are recognized on the date of the relevant event.
|
| • |
Motion picture production and distribution revenues are recognized as the films were exhibited.
|
| • |
Gaming revenues consist of the net win from gaming activities, which is the difference between amounts wagered and amounts paid to winning patrons and are recognized at the time of
such net win.
|
In respect to sales of multiple products or services, the Group evaluates whether it has fair value evidence for each deliverable in the transaction.
For example, the Group sells cable television, internet and telephone subscription to subscribers in a bundled package at a rate lower than if the subscriber purchases each product on an individual basis. Subscription revenues received from such
subscribers are allocated to each product in a pro-rata manner based on the fair value of each of the respective services.
Contract Costs
Incremental costs for obtaining contracts with customers in the Cable and Sky segments, primarily commissions, are recognized as
contract costs (assets) in the Group’s consolidated statement of financial position and amortized in the expected life of contracts with customers.
The Group has recognized assets from incremental costs of obtaining contracts with customers, primarily commissions, which were
classified as current and non-current assets in its consolidated financial statements as of December 31, 2021 and 2020, as follows:
| |
|
Cable
|
|
Sky
|
|
Total
|
|
|
Contract costs:
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2021
|
|
Ps.
|
2,027,691
|
|
Ps.
|
2,513,866
|
|
Ps.
|
4,541,557
|
|
|
Additions
|
|
|
1,209,894
|
|
|
1,088,956
|
|
|
2,298,850
|
|
|
Amount recognized in income
|
|
|
(739,461
|
)
|
|
(1,102,632
|
)
|
|
(1,842,093
|
)
|
|
Total Contract Costs at December 31, 2021
|
|
|
2,498,124
|
|
|
2,500,190
|
|
|
4,998,314
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Current Contract Costs
|
|
|
797,273
|
|
|
985,450
|
|
|
1,782,723
|
|
|
Total Non-current Contract Costs
|
|
Ps.
|
1,700,851
|
|
Ps.
|
1,514,740
|
|
Ps.
|
3,215,591
|
|
| |
|
Cable
|
|
Sky
|
|
Total
|
|
|
Contract costs:
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2020
|
|
Ps.
|
1,436,758
|
|
Ps.
|
2,254,479
|
|
Ps.
|
3,691,237
|
|
|
Additions
|
|
|
1,163,038
|
|
|
1,335,300
|
|
|
2,498,338
|
|
|
Amount recognized in income
|
|
|
(572,105
|
)
|
|
(1,075,913
|
)
|
|
(1,648,018
|
)
|
|
Total Contract Costs at December 31, 2020
|
|
|
2,027,691
|
|
|
2,513,866
|
|
|
4,541,557
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Current Contract Costs
|
|
|
640,655
|
|
|
957,792
|
|
|
1,598,447
|
|
|
Total Non-current Contract Costs
|
|
Ps.
|
1,387,036
|
|
Ps.
|
1,556,074
|
|
Ps.
|
2,943,110
|
|
Interest income is recognized using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to
its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is
recognized using the original effective interest rate.
Pension and Seniority Premium Obligations
Plans exist for pensions and seniority premiums (post-employment benefits), for most of the Group’s employees funded through irrevocable trusts.
Increases or decreases in the consolidated liability or asset for post-employment benefits are based upon actuarial calculations. Contributions to the trusts are determined in accordance with actuarial estimates of funding requirements. Payments of
post-employment benefits are made by the trust administrators. The defined benefit obligation is calculated annually using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.
Remeasurement of post-employment benefit obligations related to experience adjustments and changes in actuarial assumptions of post- employment benefits
are recognized in the period in which they are incurred as part of other comprehensive income or loss in consolidated equity.
Profit Sharing
The employees’ profit sharing required to be paid under certain circumstances in Mexico, is recognized as a direct benefit to employees in the
consolidated statements of income in the period in which it is incurred.
Termination Benefits
Termination benefits, which mainly represent severance payments by law, are recorded in the consolidated statement of income. The Group recognizes
termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that involves the payment of termination benefits.
The income tax expense for the period comprises current and deferred income tax. Income tax is recognized in the consolidated statement of income, except to the extent that it relates to items recognized in other comprehensive income or directly in
equity. In this case, the income tax is recognized in other comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial position date in
the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns and establishes provisions where appropriate on the basis of amounts expected to be paid to the
tax authorities.
Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises
from initial recognition of an asset or liability in a transaction (other than in a business combination) that at the time of the transaction affects neither accounting nor taxable income or loss. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is recovered or the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary
differences and tax loss carryforwards can be utilized. For this purpose, the Group takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, projected taxable income,
carryforward periods, current tax structure, potential changes or adjustments in tax structure, and future reversals of existing temporary differences.
Deferred income tax liabilities are provided on taxable temporary differences associated with investments in subsidiaries, joint ventures and associates,
except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets
are provided on deductible temporary differences associated with investments in subsidiaries, joint ventures and associates, to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefit of the
temporary difference and it is expected to reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a
net basis.
| (w) |
Derivative Financial Instruments
|
The Group recognizes derivative financial instruments as either assets or liabilities in the consolidated statements of financial position and measures
such instruments at fair value. The accounting for changes in the fair value of a derivative financial instrument depends on the intended use of the derivative financial instrument and the resulting designation. For a derivative financial instrument
designated as a cash flow hedge, the effective portion of such derivative’s gain or loss is initially reported as a component of other comprehensive income or loss and subsequently reclassified into income when the hedged exposure affects income. The
ineffective portion of the gain or loss is reported in income immediately. For a derivative financial instrument designated as a fair value hedge, the gain or loss is recognized in income in the period of change together with the offsetting loss or
gain on the hedged item attributed to the risk being hedged. When a hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income remains
in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to income or loss. For derivative financial instruments
that are not designated as accounting hedges, changes in fair value are recognized in income in the period of change. During the years ended December 31, 2021, 2020 and 2019, certain derivative financial instruments qualified for hedge accounting
(see Note 15).
Comprehensive income for the period includes the net income for the period presented in the consolidated statement of income plus other comprehensive
income for the period reflected in the consolidated statement of comprehensive income.
| (y) |
Share-based Payment Agreements
|
Key officers and employees of certain subsidiaries of the Company have entered into agreements for the conditional sale of Company’s shares under the Company’s Long-Term Retention Plan
(“LTRP”). The share-based compensation expense is measured at fair value at the date the equity benefits are conditionally sold to these officers and employees, and recognized as a charge to consolidated income (administrative expense) over the vesting
period. The Group recognized a share-based compensation expense of Ps.1,088,413, Ps.984,356 and Ps.1,129,644 for the years ended December 31, 2021, 2020 and 2019, respectively, of which Ps.1,066,863, Ps.962,806 and Ps.1,108,094 was credited in
consolidated stockholders’ equity for each of those years, respectively (see Note 17).
In the first quarter of 2019, the Group adopted IFRS 16 Leases (“IFRS 16”), which became effective for
annual periods beginning on January 1, 2019 (see Note 28). The Group does not apply this IFRS Standard to short-term leases and leases for which the underlying asset is of low value, as permitted by the guidelines of IFRS 16.
On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as operating leases under the
guidelines of IAS 17 Leases (“IAS 17”). These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee´s
incremental borrowing rate as of January 1, 2019. The average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019, was 4.7% and 10.6% for U.S. dollars leases and Mexican pesos leases, respectively.
| (aa) |
New and Amended IFRS Standards
|
The Group adopted IFRS 16 in 2019, which became effective for annual periods beginning on January 1, 2019 (see Notes 2 (k), 2 (z)
and 28). Some other amendments and improvements to certain IFRS Standards became effective on January 1, 2021, 2020 and 2019, and they did not have any significant impact on the Group’s consolidated financial statements.
Below is a list of the new and amended IFRS Standards that have been issued by the IASB and are effective for annual periods beginning on January 1,
2022.
|
New or Amended IFRS Standard
|
|
Title of the IFRS Standard
|
|
|
Effective for Annual
Periods Beginning
On or After
|
|
|
|
|
|
|
|
|
|
Amendments to IFRS 10 and
IAS 28 (1)
|
|
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
|
|
|
Postponed
|
|
|
IFRS 17 (2)
|
|
Insurance Contracts
|
|
|
January 1, 2023
|
|
|
Amendments to IAS 1 (1)
|
|
Classification of Liabilities as Current or Non-current
|
|
|
January 1, 2023
|
|
|
Annual Improvements (1)
|
|
Annual Improvements to IFRS Standards 2018-2020
|
|
|
January 1, 2022
|
|
|
Amendments to IAS 16 (1)
|
|
Property, Plant and Equipment: Proceeds before Intended Use
|
|
|
January 1, 2022
|
|
|
Amendments to IAS 37 (1)
|
|
Onerous Contracts – Cost of Fulfilling a Contract
|
|
|
January 1, 2022
|
|
|
Amendments to IFRS 3 (1)
|
|
Reference to the Conceptual Framework
|
|
|
January 1, 2022
|
|
|
Amendments to IAS 8 (1)
|
|
Definition of Accounting Estimates
|
|
|
January 1, 2023
|
|
|
Amendments to IAS 1 and IFRS Practice Statement 2(1)
|
|
Disclosure of Accounting Policies
|
|
|
January 1, 2023
|
|
|
Amendment to IFRS 16 (1)
|
|
Covid-19-Related Rent Concessions beyond 30 June 2021
|
|
|
April 1, 2021
|
|
|
Amendments to IAS 12 (1)
|
|
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
|
|
|
January 1, 2023
|
|
|
Amendment to IFRS 17 (2)
|
|
Initial Application of IFRS 17 and IFRS 9 – Comparative
Information
|
|
|
January 1, 2023
|
|
| |
|
|
(1)This new or amended IFRS Standard is not expected to have a significant impact on the Group’s consolidated financial
statements.
|
|
|
(2)This new or amended IFRS Standard is not expected to be applicable to the Group’s consolidated financial statements.
|
|
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture, were issued in September 2014, and addressed and acknowledged an inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and those in IAS 28 Investments in Associates and Joint Ventures, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain
or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed
in a subsidiary. In December 2015, the IASB decided to postpone the effective date of these amendments indefinitely. Entities are required apply these amendments prospectively to the sale or contribution of assets occurring in annual periods
beginning on or after a date to be determined by the IASB. Earlier application is permitted. If an entity applies these amendments earlier, it shall disclose that fact. These amendments are expected to be applicable to the Group’s consolidated
financial statements in connection with the closing of the transaction with UH II in the first quarter of 2022 (see Note 3). As permitted, the Group will apply these amendments in 2022 and disclose this fact in its consolidated financial
statements.
IFRS 17 Insurance Contracts (“IFRS 17”) was issued in May 2017 and amended in June 2020. IFRS 17 supersedes
IFRS 4 Insurance Contracts (“IFRS 4”), which has given companies dispensation to carry on accounting for insurance contracts using national accounting standards, resulting in a multitude of different
approaches. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosures of insurance contracts issued. It also requires similar principles to be applied to reinsurance contracts with discretionary participation
features issued. IFRS 17 solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Under the provisions of IFRS 17, insurance obligations will be accounted for using current
values instead of historical cost. Amendments to IFRS 17 were issued in June 2020 aimed at helping companies implement the Standard and making it easier for them to explain their financial performance. The fundamental principles introduced when
IFRS 17 was issued in May 2017 remained unaffected. IFRS 17 is effective on January 1, 2023, and earlier application is permitted.
Amendments to IAS 1 Classification of Liabilities as Current or Non-current were issued in January 2020, and
clarify one of the criteria in IAS 1 for classifying a liability as non-current that is, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. An entity shall apply
these amendments for annual reporting periods beginning on or after January 1, 2023, retrospectively in accordance with IAS 8. Earlier application is permitted.
Annual Improvements to IFRS Standards 2018-2020, were issued in May 2020, and make minor amendments to certain IFRS Standards. The amendments are
effective for annual periods beginning on or after January 1, 2022. Earlier application is permitted. The following table shows the IFRS Standards amended and the subject of the amendments.
|
Standard
|
|
Subject of Amendment
|
|
IFRS 1 First-time Adoption of International Reporting Standards
|
|
Subsidiary as a First-time Adopter
|
|
IFRS 9 Financial Instruments
|
|
Fees in the “10 per cent” Test for Derecognition of Financial Liabilities
|
|
Illustrative Examples accompanying IFRS 16 Leases
|
|
Lease Incentives
|
|
IAS 41 Agriculture
|
|
Taxation in Fair Value Measurements
|
Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use, were issued in May 2020,
and prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds
and related cost in income or loss.
Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract, were issued in May 2020, and specify
which costs a company includes when assessing whether a contract will be loss-making, under the guidelines of IAS 37 Provisions, Contingent Liabilities and Contingent Assets (“IAS 37”). The amendments are
effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. Earlier application is permitted.
Amendments to IFRS 3 Reference to the Conceptual Framework, were issued in May 2020, and update a reference
in IFRS 3 Business Combinations (“IFRS 3”) to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Also added to IFRS 3 an exception to
its requirement for an entity to refer to the Conceptual Framework to determine what constitutes an asset or a liability. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should
instead refer to IAS 37. The Board added this exception to avoid an unintended consequence of updating the reference. Without the exception, an entity would have recognized some liabilities on the acquisition of a business that it would not
recognize in other circumstances. Immediately after the acquisition, the entity would have had to derecognize such liabilities and recognize a gain that did not depict an economic gain. The amendments to IFRS 3 are effective for business
combinations occurring in reporting periods starting on or after January 1, 2022. Earlier application is permitted.
Amendments to IAS 8 Definition of Accounting Estimates, were issued in February 2021, the amendments
introduced the definition of accounting estimates and included other amendments to IAS 8 to help entities distinguish changes in accounting estimates from changes in accounting policies. The amendments are effective for annual reporting periods
beginning on or after January 1, 2023. Earlier application is permitted.
Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies, were issued in February
2021, the Board amended paragraphs 117–122 of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policy information rather than their significant
accounting policies. To support this amendment the Board also amended IFRS Practice Statement 2 Making Materiality Judgements (Materiality Practice Statement) to explain and demonstrate the application of
the “four-step materiality process” to accounting policy disclosures.
Amendment to IFRS 16 Covid-19-Related Rent Concessions beyond 30 June 2021 was issued in March 2021 and
extends by one year the application period of the practical expedient in IFRS 16. In response to calls from stakeholders and because the Covid-19 pandemic is still at its height, the amendment extends this relief by one year to cover rent
concessions that reduce only lease payments due on or before June 30, 2022. The original amendment was issued in May 2020 and exempts lessees from having to consider individual lease contracts to determine whether rent concessions, such as rent
holidays and temporary rent reductions, occurring as a direct consequence of the Covid-19 pandemic are lease modifications, and allows lessees to account for such rent concessions as if they were not lease modifications. The amendment is effective
for annual reporting periods beginning on or after April 1, 2021.
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction were
issued in May 2021 and specify how companies should account for deferred tax on transactions such as leases and decommissioning obligations. IAS 12 Income Taxes specifies how a company accounts for income
tax, including deferred tax, which represents tax payable or recoverable in the future. In specified circumstances, companies are exempt from recognizing deferred tax when they recognize assets and liabilities for the first time. Previously, there
had been some uncertainty about whether the exemption applied to transactions such as leases and decommissioning obligations, transactions for which companies recognize both an asset and a liability. The amendments clarify that the exemption does
not apply and that companies are required to recognize deferred tax on such transactions. The aim of the amendments is to reduce diversity in the reporting of deferred tax on leases and decommissioning obligations. The amendments will become
effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted.
Amendment to IFRS 17 Initial Application of IFRS 17 and IFRS 9 – Comparative Information, was issued in
December 2021 and includes a narrow-scope amendment to the transition requirements in IFRS 17, providing insurers with an option aimed at improving the usefulness of information to investors on initial application of the new Standard. The amendment
relates to insurers’ transition to the new Standard only, and it does not affect any other requirements in IFRS 17. IFRS 17 and IFRS 9 have different transition requirements. For some insurers, these differences can cause temporary accounting
mismatches between financial assets and insurance contract liabilities in the comparative information they present in their financial statements when applying IFRS 17 and IFRS 9 for the first time. IFRS 17, including this amendment, is effective
for annual reporting periods beginning on or after January 1, 2023.
[800600] Notes - List of accounting policies
Disclosure of significant accounting policies
Accounting Policies
The principal accounting policies followed by the Group and used in the preparation of its annual consolidated financial statements as
of December 31, 2021, and where applicable, of its interim condensed consolidated financial statements, are summarized below.
| (a) |
Basis of Presentation
|
The consolidated financial statements of the Group as of December 31, 2021 and 2020, and for the years ended December 31, 2021, 2020 and 2019, are
presented in accordance with International Financial Reporting Standards (“IFRS Standards”), as issued by the International Accounting Standards Board (“IASB”). IFRS Standards comprise: (i) IFRS Standards; (ii) International Accounting Standards
(“IAS Standards”); (iii) IFRS Interpretations Committee (“IFRIC”) Interpretations; and (iv) Standing Interpretations Committee (“SIC”) Interpretations.
The consolidated financial statements have been prepared on a historical cost basis, except for the measurement at fair value of derivative financial
instruments, financial assets, investments in equity financial instruments, plan assets of post-employment benefits and share-based payments, as described in the notes to the financial statements below.
The preparation of consolidated financial statements in conformity with IFRS Standards, requires the use of certain critical accounting estimates. It
also requires management to exercise its judgment in the process of applying the Group’s accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the period the assumptions changed.
Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where estimates and assumptions are significant to the Group’s financial statements are disclosed in Note 5
to these consolidated financial statements.
These consolidated financial statements were authorized for issuance on March 30, 2022, by the Group’s Corporate Vice President of Finance.
The financial statements of the Group are prepared on a consolidated basis and include the assets, liabilities and results of operations of all
companies in which the Company has a controlling interest (subsidiaries). All intercompany balances and transactions have been eliminated from the consolidated financial statements.
Subsidiaries
Subsidiaries are all entities over which the Company has control. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The existence and effects of potential voting rights that are currently exercisable or convertible are considered when
assessing whether or not the Company controls another entity. The subsidiaries are consolidated from the date on which control is obtained by the Company and cease to consolidate from the date on which said control is lost.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is
the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any
non-controlling interest in the acquiree on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the
net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in income or loss.
Changes in Ownership Interests in Subsidiaries without Change of Control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is,
as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the interest acquired of the carrying amount of net assets of the subsidiary is recorded in equity. Gains or losses on
disposals of non-controlling interests are also recorded in equity.
Loss of Control of a Subsidiary
When the Company ceases to have control of a subsidiary, any retained interest in the entity is remeasured to its fair value at the
date when control is lost, with the change in carrying amount recognized in income or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or
financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts
previously recognized in other comprehensive income are reclassified to income or loss except for certain equity financial instruments designated irrevocably with changes in other comprehensive income or loss.
At December 31, 2021 and 2020, the main direct and indirect subsidiaries of the Company were as follows:
|
Subsidiaries
|
|
Company’s
Ownership
Interest (1)
|
|
|
Business
Segment (2)
|
|
Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, “Empresas Cablevisión”) (3)
|
|
51.2
|
%
|
|
|
Cable
|
|
Subsidiaries engaged in the Cablemás business (collectively, “Cablemás”) (4)
|
|
100
|
%
|
|
|
Cable
|
|
Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, “TVI”) (5)
|
|
100
|
%
|
|
|
Cable
|
|
Cablestar, S.A. de C.V. and subsidiaries (collectively, “Bestel”) (6)
|
|
66.2
|
%
|
|
|
Cable
|
|
Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, “Cablecom”) (7)
|
|
100
|
%
|
|
|
Cable
|
|
Subsidiaries engaged in the Telecable business (collectively, “Telecable”) (8)
|
|
100
|
%
|
|
|
Cable
|
|
FTTH de México, S.A. de C.V. (9)
|
|
100
|
%
|
|
|
Cable
|
|
Corporativo Vasco de Quiroga, S.A. de C.V. (“CVQ”) and subsidiaries (10)
|
|
100
|
%
|
|
|
Cable and Sky
|
|
Innova, S. de R.L. de C.V. (“Innova”) and subsidiaries (collectively, “Sky”) (11)
|
|
58.7
|
%
|
|
|
Sky
|
|
Grupo Telesistema, S.A. de C.V. (“Grupo Telesistema”) and subsidiaries
|
|
100
|
%
|
|
|
Content and Other Businesses
|
|
Televisa, S. de R. L. de C.V. (Televisa, S.A. de C.V. through May 2021) (“Televisa”) (12)
|
|
100
|
%
|
|
|
Content
|
|
Televisión Independiente de México, S.A. de C.V. (“TIM”) (12)
|
|
100
|
%
|
|
|
Content
|
|
G.Televisa-D, S.A. de C.V. (12)
|
|
100
|
%
|
|
|
Content
|
|
Multimedia Telecom, S.A. de C.V. (“Multimedia Telecom”) and subsidiary (13)
|
|
100
|
%
|
|
|
Content
|
|
Ulvik, S.A. de C.V. (14)
|
|
100
|
%
|
|
|
Content and Other Businesses
|
|
Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries
|
|
100
|
%
|
|
|
Other Businesses
|
|
Editorial Televisa, S.A. de C.V. and subsidiaries
|
|
100
|
%
|
|
|
Other Businesses
|
|
Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries
|
|
100
|
%
|
|
|
Other Businesses
|
|
Villacezán, S.A. de C.V. (“Villacezán”) and subsidiaries (15)
|
|
100
|
%
|
|
|
Other Businesses
|
|
Sistema Radiópolis, S.A. de C.V. (“Radiópolis”) and subsidiaries (16)
|
|
—
|
|
|
|
Disposed operations in 2020
|
|
(1)
|
Percentage of equity interest directly or indirectly held by the Company.
|
|
(2)
|
See Note 26 for a description of each of the Group’s business segments. See Notes 3 and 30 for the Group’s transaction with
UH II, which was concluded on January 31, 2022.
|
|
(3)
|
Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ.
|
|
(4)
|
The subsidiaries in the Cablemás business are directly and indirectly owned by CVQ.
|
|
(5)
|
Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ.
|
|
(6)
|
Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V.
|
|
(7)
|
Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ.
|
|
(8)
|
The subsidiaries in the Telecable business are directly owned by CVQ.
|
|
(9)
|
FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ.
|
|
(10)
|
CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom,
Telecable and Innova.
|
|
(11)
|
Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. (“Sky DTH”), and a direct
majority-owned subsidiary of Innova Holdings, S. de R.L. de C.V. (“Innova Holdings”). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova’s
equity and designates a majority of the members of Innova’s Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in
the Group and Sky. These veto rights are protective in nature and do not affect decisions about relevant business activities of Innova.
|
|
(12)
|
TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema. Through January 31, 2022, Televisa was a
direct subsidiary of Grupo Telesistema.
|
|
(13)
|
Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. (“Tieren”), are indirect wholly-owned
subsidiaries of Grupo Telesistema, through which the Company owns shares of the capital stock of UH II, the successor company of Univision Holdings, Inc. (“UHI”) and the parent company of Univision, and maintained through December 29,
2020, an investment in warrants that were exercised for shares of common stock of UHI on that date. Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group’s aggregate investment in
shares of common stock issued by UH II as of December 31, 2021, and UHI as of December 31, 2020 (see Notes 3, 9, 10 and 20).
|
|
(14)
|
Direct subsidiary through which the Group conducts certain operations of its Other Businesses segment, and conducted
certain operations of its Content segment through January 31, 2022.
|
|
(15)
|
Villacezán is an indirect subsidiary of Grupo Telesistema.
|
|
(16)
|
In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a
direct subsidiary of the Company through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of
Radiópolis. The Radio business was part the of the Group’s Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its
operating results, were classified as held for sale in the Group’s consolidated financial statements through June 30, 2020 (see Notes 3 and 26).
|
The Group’s Cable, Sky and Content segments, require governmental concessions and special authorizations for the provision of broadcasting and telecommunications services in Mexico. Such concessions are
granted by the Mexican Institute of Telecommunications (“Instituto Federal de Telecomunicaciones” or “IFT”) for a fixed term, subject to renewal in accordance with the Mexican Telecommunications and Broadcasting Law (“Ley Federal de
Telecomunicaciones y Radiodifusión” or “LFTR”).
Renewal of concessions for the Cable and Sky segments require, among others: (i) to request its renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in
compliance with the concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; and (iii) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by
IFT. IFT shall resolve any request for renewal of the telecommunications concessions within 180 business days of its request. Failure to respond within such period of time shall be interpreted as if the request for renewal has been granted.
Renewal of broadcasting concessions for the Content segment through January 31, 2022, and for the broadcast programming operations over television stations for the signals of TelevisaUnivision beginning on
February 1, 2022, require, among others: (i) to request such renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder’s obligations under the LFTR, other
applicable regulations, and the concession title; (iii) a declaration by IFT that there is no public interest in recovering the spectrum granted under the related concession; and (iv) the acceptance by the concession holder of any new
conditions for renewing the concession as set forth by IFT, including the payment of a related fee. IFT shall resolve within the year following the presentation of the request, if there is public interest in recovering the spectrum granted
under the related concession, in which case it will notify its determination and proceed with the termination of the concession at the end of its fixed term. If IFT determines that there is no public interest in recovering the spectrum, it
will grant the requested extension within 180 business days, provided that the concessionaire accepts, in advance, the new conditions set by IFT, which will include the payment of the fee referred to above. Such fee will be determined by
IFT for the relevant concessions, considering the following elements: (i) the frequency band; (ii) the amount of spectrum; (iii) coverage of the frequency band; (iv) domestic and international benchmark regarding the market value of
frequency bands; and (v) upon request of IFT, an opinion issued by the Ministry of Finance and Public Credit of IFT´s proposal for calculation of the fee.
The regulations of the broadcasting and the telecommunications concessions (including satellite pay TV) establish that at the end of the concession, the frequency bands or spectrum attached to the services
provided in the concessions shall return to the Mexican government. In addition, at the end of the concession, the Mexican government will have the preferential right to acquire infrastructure, equipment and other goods directly used in the
provision of the concession. If the Mexican government were to exercise its right to acquire infrastructure, equipment and other goods, it would be required to pay a price that is equivalent to a formula that is similar to fair value. To
the knowledge of the Company’s management, no spectrum granted for broadcasting services in Mexico has been recovered by the Mexican government in at least the past three decades for public interest reasons. However, the Company’s
management is unable to predict the outcome of any action by IFT in this regard. In addition, these assets, by themselves, would not be enough to immediately begin broadcasting or offering satellite pay TV services or telecommunications
services, as no content producing assets or other equipment necessary to operate the business would be included.
Also, the Group’s Gaming business, which is reported in the Other Businesses segment, requires a permit granted by the Mexican Federal Government for a fixed term, subject to renewal in accordance with
Mexican law. Additionally, the Group’s Sky businesses in Central America and the Dominican Republic require concessions or permits granted by local regulatory authorities for a fixed term, subject to renewal in accordance with local laws.
The accounting guidelines provided by IFRIC 12 Service Concession Arrangements, are not applicable to the Group due primarily
to the following factors: (i) the Mexican government does not substantially control the Group’s infrastructure, what services are provided with the infrastructure and the price at which such services are offered; (ii) the Group’s
broadcasting service does not constitute a public service as per the definition in IFRIC 12; and (iii) the Group is unable to divide its infrastructure among the public (telephony and possibly Internet services) and non-public (pay TV)
service components.
At December 31, 2021, the expiration dates of the Group’s concessions and permits were as follows:
|
Segments
|
|
Expiration Dates
|
|
Cable
|
|
Various from 2026 to 2056
|
|
Sky
|
|
Various from 2022 to 2056
|
|
Content (broadcasting concessions) (1)
|
|
In 2021, and the relevant renewals started in 2022 ending in 2042 and 2052
|
|
Other Businesses:
|
|
|
|
Gaming
|
|
In 2030
|
|
(1)
|
In November 2018, the IFT approved (i) 23 concessions for the use of spectrum that comprise the Company’s 225 TV
stations, for a term of 20 years, starting in January 2022 and ending in January 2042, and (ii) six concessions that grant the authorization to provide digital broadcasting television services of such 225 TV stations, for a term of 30
years, starting in January 2022 and ending in January 2052. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized
this payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13).
|
The concessions or permits held by the Group are not subject to any significant pricing regulations in the ordinary course of
business.
| (c) |
Investments in Associates and Joint Ventures
|
Associates are those entities over which the Group has significant influence but not control or joint control, over the financial and
operating policies, generally those entities with a shareholding of between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and
obligations of each investor. Joint ventures are those joint arrangements where the Group exercises joint control with other stockholder or more stockholders, without exercising control individually, and have rights to the net assets of the joint
arrangements. Investments in associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to
recognize the investor’s share of the net assets of the investee after the date of acquisition. The investor’s income or loss includes its share of the investee’s income or loss and the investor’s other comprehensive income includes its share of
the investee’s other comprehensive income.
The Group’s investments in associates include an equity interest in UH II (the successor company of UHI) represented by approximately
35.5% and 35.9% of the outstanding total shares of UH II (the successor company of UHI) as of December 31, 2021 and 2020, respectively (see Notes 3, 9 and 10).
If the Group’s share of losses of an associate or a joint venture equals or exceeds its interest in the investee, the Group discontinues
recognizing its share of further losses. The interest in an associate or a joint venture is the carrying amount of the investment in the investee under the equity method together with any other long-term investment that, in substance, form part of
the Group’s net investment in the investee. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made
payments on behalf of the associate or joint venture.
Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s Co-Chief Executive Officers (“chief
operating decision makers”), who are responsible for allocating resources and assessing performance for each of the Group’s operating segments.
| (e) |
Foreign Currency Translation
|
Functional and Presentation Currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (“functional currency”). The presentation and reporting currency of the Group’s consolidated financial statements is the Mexican peso, which is used for compliance with its legal and tax obligations.
Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions or measurement where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognized in the statement of income as part of finance income or expense, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as investments in financial instruments are
analyzed between exchange differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in income or
loss, and other changes in carrying amount are recognized in other comprehensive income or loss.
Translation of Foreign Operations
The financial statements of the Group’s foreign entities that have a functional currency different from the presentation currency are
translated into the presentation currency as follows: (a) assets and liabilities are translated at the closing rate at the date of the statement of financial position; (b) income and expenses are translated at average exchange rates (unless this
average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); (c) stockholders' equity accounts
are translated at the prevailing exchange rate at the time capital contributions were made and earnings were generated and (d) all resulting translation differences are recognized in other comprehensive income or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign
entity and translated at the closing rate. Translation differences arising are recognized in other comprehensive income or loss.
Assets and liabilities in foreign currencies of non-Mexican subsidiaries that use the Mexican Peso as a functional currency are
initially converted to Mexican Pesos by utilizing the exchange rate of the statement of financial position date for monetary assets and liabilities, and historical exchange rates for non-monetary items, with the related adjustment included in the
consolidated statement of income as finance income or expense.
A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in
the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a hedge of a net investment in a foreign operation in connection with the Group’s investment in shares of UH II (UHI,
until May 18, 2021) (hedged item), which amounted to U.S.$1,254.5 million (Ps.25,721,539) and U.S.$1,074.0 million (Ps.21,424,180) as of December 31, 2021 and 2020, respectively. Consequently, any foreign exchange gain or loss attributable to this
designated hedging long-term debt is credited or charged directly to other comprehensive income or loss as a cumulative result from foreign currency translation (see Note 10).
A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in
the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) was designated as a fair value hedge of foreign exchange exposure related to its investment in warrants that were exercisable for common
stock of UHI (hedged item) through December 29, 2020, the date on which the Group exercised all of these warrants for common stock of UHI, which amounted to Ps.17,387,699 (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 (U.S.$1,788.6
million) as of December 31, 2019. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt was credited or charged directly to other comprehensive income or loss through December 29, 2020, along with
the recognition in the same line item of any foreign currency gain or loss of this investment in warrants designated as a hedged item through that date (see Notes 9, 14 and 18).
A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in
the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a fair value hedge of foreign exchange exposure related to its investment in Open-Ended Fund (hedged item), which
amounted to Ps.945,176 (U.S.$46.1 million) and Ps.1,135,803 (U.S.$56.9 million), as of December 31, 2021 and 2020, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or
charged directly to other comprehensive income or loss, along with the recognition in the same line item of any foreign currency gain or loss of this investment in Open-Ended Fund designated as a hedged item (see Notes 9, 14 and 18).
| (f) |
Cash and Cash Equivalents and Temporary Investments
|
Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three months or less
at the date of acquisition. Cash is stated at nominal value and cash equivalents are measured at fair value, and the changes in the fair value are recognized in the statement of income.
Temporary investments consist of short-term investments in securities, including without limitation debt with a maturity of over three
months and up to one year at the date of acquisition, stock and other financial instruments, or a combination thereof, as well as current maturities of noncurrent financial assets. Temporary investments are measured at fair value with changes in
fair value recognized in finance income in the consolidated income statement, except the current maturities of non-current held-to-maturity securities which are measured at amortized cost.
As of December 31, 2021 and 2020, cash equivalents and temporary investments primarily consisted of fixed short-term deposits and
corporate fixed income securities denominated in U.S. dollars and Mexican pesos, with an average yield of approximately 0.07% for U.S. dollar deposits and 4.36% for Mexican peso deposits in 2021, and approximately 0.38% for U.S. dollar deposits and
5.40% for Mexican peso deposits in 2020.
| (g) |
Transmission Rights and Programming
|
Programming is comprised of programs, literary works, production talent advances and films.
Transmission rights and literary works are valued at the lesser of acquisition cost and net realizable value. Programs and films are
valued at the lesser of production cost, which consists of direct production costs and production overhead, and net realizable value. Payments for production talent advances are initially capitalized and subsequently included as direct or indirect
costs of program production. Transmission rights are recognized from the point of which the legally enforceable license period begins. Until the license term commences and the programming rights are available, payments made are recognized as
prepayments.
The Group’s policy is to capitalize the production costs of programs which benefit more than one annual period and amortize them over
the expected period of future program revenues based on the Company’s historical revenue patterns and usage for similar productions.
Transmission rights, programs, literary works, production talent advances and films are recorded at acquisition or production cost.
Cost of sales is calculated and recorded for the month in which such transmission rights, programs, literary works, production talent advances and films are matched with related revenues.
Transmission rights are recognized in income over the lives of the contracts. Transmission rights in perpetuity are amortized on a
straight-line basis over the period of the expected benefit as determined by past experience, but not exceeding 25 years.
Inventories of paper, magazines, materials and supplies for maintenance of technical equipment are recorded at the lower of cost or its net realizable
value. The net realization value is the estimated selling price in the normal course of business, less estimated costs to conduct the sale. Cost is determined using the average cost method.
The Group classifies its financial assets in accordance with IFRS 9 Financial Instruments (“IFRS 9”) which
became effective on January 1, 2018. Under the guidelines of IFRS 9, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or loss (“FVOCIL”), or fair value through income or
loss (“FVIL”), based on the Company’s business model for managing the financial assets and the contractual cash flows characteristics of the financial asset.
Financial Assets Measured at Amortized Cost
Financial assets are measured at amortized cost when the objective of holding such financial assets is to collect contractual cash flows, and the contractual terms of the financial asset give
rise on specified dates to cash flows that are only payments of principal and interest on the principal amount outstanding. These financial assets are initially recognized at fair value plus transaction costs and subsequently carried at amortized
cost using the effective interest rate method, with changes in carrying amount recognized in the consolidated statement of income in the line which most appropriately reflects the nature of the item or transaction. They are included in current
assets, except for maturities greater than 12 months after the end of the reporting period that are included in non-current assets. The Group’s financial assets measured at amortized costs are primarily presented as “trade notes and accounts
receivable”, “other accounts and notes receivable”, and “due from related parties” in the consolidated statement of financial position (see Note 7).
Financial Assets Measured at FVOCIL
Financial assets are measured at FVOCIL when the objective of holding such financial assets is both collecting contractual cash flows and selling financial assets, and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Group’s investments in certain equity instruments have been designated to be measured at FVOCIL, as permitted by IFRS 9. In connection with this designation, any amounts presented in
consolidated other comprehensive income are not subsequently transferred to consolidated income. Dividends from these equity instruments are recognized in consolidated income when the right to receive payment of the dividend is established, and
such dividend is probable to be paid to the Group.
Financial Assets at FVIL
Financial assets at FVIL are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term.
Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current.
Impairment of Financial Assets
The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at FVOCIL. The impairment methodology applied depends on whether there has
been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables (see
Note 7).
Offsetting of Financial Instruments
Financial assets are offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Group: (i) currently has a
legally enforceable right to set off the recognized amounts; and (ii) intends either to settle on a net basis, or to realize the assets and settle the liability simultaneously.
| (j) |
Property, Plant and Equipment
|
Property, plant and equipment are recorded at acquisition cost.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to
income or loss during the financial period in which they are incurred.
Land is not depreciated. Depreciation of property, plant and equipment is based upon the carrying amount of the assets in use and is
computed using the straight-line method over the estimated useful lives of the asset, as follows:
|
|
|
|
Estimated
Useful Lives
|
|
|
|
|
|
|
|
|
Buildings
|
|
|
20-65 years
|
|
|
Technical equipment
|
|
|
3-30 years
|
|
|
Satellite transponders
|
|
|
15 years
|
|
|
Furniture and fixtures
|
|
|
3-10 years
|
|
|
Transportation equipment
|
|
|
4-8 years
|
|
|
Computer equipment
|
|
|
3-6 years
|
|
|
Leasehold improvements
|
|
|
5-30 years
|
|
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income
or expense in the consolidated statement of income.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate
items (major components) of property, plant and equipment.
Right-of-use assets are measured at cost comprising the following: the amount of the initial measurement of lease liability, any lease
payments made at or before the commencement date less any lease incentives received, any initial direct costs and restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight – line
basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and mostly leases of low-value assets are recognized on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
| (l) |
Intangible Assets and Goodwill
|
Intangible assets and goodwill are recognized at acquisition cost. Intangible assets and goodwill acquired through business combinations
are recorded at fair value at the date of acquisition. Intangible assets with indefinite useful lives, which include, trademarks, concessions, and goodwill, are not amortized, and subsequently recognized at cost less accumulated impairment losses.
Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives, as follows:
|
|
|
|
Estimated
Useful Lives
|
|
|
Trademarks with finite useful lives
|
|
|
4 years
|
|
|
Licenses
|
|
|
3-10 years
|
|
|
Subscriber lists
|
|
|
4-5 years
|
|
|
Payments for renewal of concessions
|
|
|
20 years
|
|
|
Other intangible assets
|
|
|
3-20 years
|
|
Trademarks
The Group determines its acquired trademarks to have an indefinite life when they are expected to generate net cash inflows for the
Group indefinitely. Additionally, the Group considers that there are no legal, regulatory or contractual provisions that limit the useful lives of trademarks. The Group has not capitalized any amounts associated with internally developed
trademarks.
Concessions
The Group defined concessions to have an indefinite life due to the fact that the Group has a history of renewing its concessions upon
expiration, has maintained the concessions granted by the Mexican government, and has no foreseeable limit to the period over which the assets are expected to generate net cash inflows. In addition, the Group is committed to continue to invest for
the long term to extend the period over which the broadcasting and telecommunications concessions are expected to continue to provide economic benefits.
Any fees paid by the Group to regulatory authorities for concessions renewed are determined to have finite useful lives and are
amortized on a straight-live basis over the fixed term of the related concession.
Goodwill
Goodwill arises on the acquisition of a business and represents the excess of the consideration transferred over the Group’s interest
in net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash generating units
(“CGUs”), or groups of CGUs, that are expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for
internal management purposes.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential
impairment. The carrying amount of goodwill is compared to the recoverable amount, which is the higher between the value in use and the fair value less costs to sell. Any impairment of goodwill is recognized as an expense in the consolidated
statement of income and is not subject to be reversed in subsequent periods.
| (m) |
Impairment of Long-lived Assets
|
The Group reviews for impairment the carrying amounts of its long-lived assets, tangible and intangible, including
goodwill (see Note 13), at least once a year, or whenever events or changes in business circumstances indicate that these carrying amounts may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. To determine whether an impairment exists, the carrying amount of the reporting unit is compared with its recoverable
amount. Fair value estimates are based on quoted market values in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including discounted value of estimated
future cash flows, market multiples or third-party appraisal valuations. Any impairment of long-lived assets other than goodwill may be subsequently reversed under certain circumstances.
| (n) |
Trade Accounts Payable and Accrued Expenses
|
Trade accounts payable and accrued expenses are obligations to pay for goods or services that have been acquired in the ordinary course
of business from suppliers. Trade accounts payable and accrued expenses are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as
non-current liabilities.
Trade accounts payable and accrued expenses are recognized initially at fair value and subsequently measured at amortized cost using
the effective interest method.
Trade accounts payable and accrued expenses are presented as a single item of consolidated current liabilities in the consolidated
statements of financial position as of December 31, 2021 and 2020.
Debt is recognized initially at fair value, net of transaction costs incurred. Debt is subsequently carried at amortized cost; any
difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of income over the period on which the debt is outstanding using the effective interest method.
Fees paid on the establishment of debt facilities are recognized as transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a
pre-payment for liquidity services and amortized over the period of the facility to which it relates.
Current portion of long-term debt and interest payable are presented as a separate line item in the consolidated statements of financial position as of December 31, 2021 and 2020.
Debt early redemption costs are recognized as finance expense in the consolidated statement of income.
| (p) |
Customer Deposits and Advances
|
Customer deposits and advance agreements for advertising services provide that customers receive prices that are fixed for the contract period for
advertising time in the Group’s platforms based on rates established by the Group. Such rates vary depending on when the advertisement is made, including the season, hour, day and type of programming.
The Group recognizes customer deposits and advance agreements for advertising services in the consolidated statement of financial position, when these
agreements are executed either with a consideration in cash paid by customers or with short-term non-interest bearing notes received from customers in connection with annual (“upfront basis”) and from time to time (“scatter basis”) prepayments
(see Note 7). In connection with the initial adoption of IFRS 15 Revenues from Contracts with Customers (“IFRS 15”) in the first quarter of 2018 (see Note 2 (s)), customer deposits and advances
agreements are presented by the Group as a contract liability in the consolidated statement of financial position when a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional, before the Group
transfers services to the customer. Under the guidelines of this standard, a contract liability is a Group’s obligation to transfer services or goods to a customer for which the Group has received consideration, or an amount of consideration is
due, from the customer. In addition, the Group recognizes contract asset upon the approval of non-cancellable contracts that generate an unconditional right to receive cash consideration prior to services being rendered. The Company’s management
has consistently recognized that an amount of consideration is due, for legal, finance and accounting purposes, when a short-term non-interest bearing note is received from a customer in connection with a deposit or advance agreement entered into
with the customer for advertising services to be rendered by the Group in the short term.
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized as interest expense.
The capital stock and other equity accounts include the effect of restatement through December 31, 1997, determined by applying the
change in the Mexican National Consumer Price Index between the dates capital was contributed or net results were generated and December 31, 1997, the date through which the Mexican economy was considered hyperinflationary under the guidelines of
IFRS Standards. The restatement represented the amount required to maintain the contributions and accumulated results in Mexican Pesos in purchasing power as of December 31, 1997.
Where any company in the Group purchases shares of the Company’s capital stock (shares repurchased), the consideration paid, including
any directly attributable incremental costs is deducted from equity attributable to stockholders of the Company until the shares are cancelled, reissued, or sold. Where such shares repurchased are subsequently reissued or sold, any consideration
received, net of any directly attributable incremental transaction costs, is included in equity attributable to stockholders of the Company.
| (s) |
Revenue Recognition and Contract Costs
|
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services
provided. The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Group’s activities, as
described below. The Group bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
The Group derives the majority of its revenues from media and entertainment-related business activities both in Mexico and
internationally. Revenues are recognized when the service is provided and collection is probable. A summary of revenue recognition policies by significant activity is as follows:
|
•
|
Cable television, internet and telephone subscription, and pay-per-view and installation fees are recognized in the period in which the services are rendered.
|
|
|
Revenues from
other telecommunications and data services are recognized in the period in which these services are provided. Other telecommunications services include long distance and local telephony, as well as leasing and maintenance of
telecommunications facilities.
|
| • |
Sky program service revenues, including advances from customers for future direct-to-home (“DTH”) program services, are recognized at the time
the service is provided.
|
| • |
Advertising revenues, including deposits and advances from customers for future advertising, are recognized at the time the advertising
services were rendered.
|
| • |
Revenues from program services for network subscription and licensed and syndicated television programs are recognized when the programs were
sold and became available for broadcast.
|
| • |
Revenues from magazine subscriptions are initially deferred and recognized proportionately as products are delivered to subscribers. Revenues
from the sales of magazines are recognized on the date of circulation of delivered merchandise, net of a provision for estimated returns.
|
| • |
Revenues from publishing distribution are recognized upon distribution of the products.
|
| • |
Revenues from attendance to soccer games, including revenues from advance ticket sales for soccer games and other promotional events, are
recognized on the date of the relevant event.
|
| • |
Motion picture production and distribution revenues are recognized as the films were exhibited.
|
| • |
Gaming revenues consist of the net win from gaming activities, which is the difference between amounts wagered and amounts paid to winning
patrons and are recognized at the time of such net win.
|
In respect to sales of multiple products or services, the Group evaluates whether it has fair value evidence for each
deliverable in the transaction. For example, the Group sells cable television, internet and telephone subscription to subscribers in a bundled package at a rate lower than if the subscriber purchases each product on an individual basis. Subscription
revenues received from such subscribers are allocated to each product in a pro-rata manner based on the fair value of each of the respective services.
Contract Costs
Incremental costs for obtaining contracts with customers in the Cable and Sky segments, primarily commissions, are
recognized as contract costs (assets) in the Group’s consolidated statement of financial position and amortized in the expected life of contracts with customers.
The Group has recognized assets from incremental costs of obtaining contracts with customers, primarily commissions, which
were classified as current and non-current assets in its consolidated financial statements as of December 31, 2021 and 2020, as follows:
| |
|
Cable
|
|
Sky
|
|
Total
|
|
|
Contract costs:
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2021
|
|
Ps.
|
2,027,691
|
|
Ps.
|
2,513,866
|
|
Ps.
|
4,541,557
|
|
|
Additions
|
|
|
1,209,894
|
|
|
1,088,956
|
|
|
2,298,850
|
|
|
Amount recognized in income
|
|
|
(739,461
|
)
|
|
(1,102,632
|
)
|
|
(1,842,093
|
)
|
|
Total Contract Costs at December 31, 2021
|
|
|
2,498,124
|
|
|
2,500,190
|
|
|
4,998,314
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Current Contract Costs
|
|
|
797,273
|
|
|
985,450
|
|
|
1,782,723
|
|
|
Total Non-current Contract Costs
|
|
Ps.
|
1,700,851
|
|
Ps.
|
1,514,740
|
|
Ps.
|
3,215,591
|
|
| |
|
Cable
|
|
Sky
|
|
Total
|
|
|
Contract costs:
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2020
|
|
Ps.
|
1,436,758
|
|
Ps.
|
2,254,479
|
|
Ps.
|
3,691,237
|
|
|
Additions
|
|
|
1,163,038
|
|
|
1,335,300
|
|
|
2,498,338
|
|
|
Amount recognized in income
|
|
|
(572,105
|
)
|
|
(1,075,913
|
)
|
|
(1,648,018
|
)
|
|
Total Contract Costs at December 31, 2020
|
|
|
2,027,691
|
|
|
2,513,866
|
|
|
4,541,557
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Current Contract Costs
|
|
|
640,655
|
|
|
957,792
|
|
|
1,598,447
|
|
|
Total Non-current Contract Costs
|
|
Ps.
|
1,387,036
|
|
Ps.
|
1,556,074
|
|
Ps.
|
2,943,110
|
|
Interest income is recognized using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its
recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is recognized
using the original effective interest rate.
Pension and Seniority Premium Obligations
Plans exist for pensions and seniority premiums (post-employment benefits), for most of the Group’s employees funded through irrevocable trusts.
Increases or decreases in the consolidated liability or asset for post-employment benefits are based upon actuarial calculations. Contributions to the trusts are determined in accordance with actuarial estimates of funding requirements. Payments
of post-employment benefits are made by the trust administrators. The defined benefit obligation is calculated annually using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.
Remeasurement of post-employment benefit obligations related to experience adjustments and changes in actuarial assumptions of post- employment
benefits are recognized in the period in which they are incurred as part of other comprehensive income or loss in consolidated equity.
Profit Sharing
The employees’ profit sharing required to be paid under certain circumstances in Mexico, is recognized as a direct benefit to employees in the
consolidated statements of income in the period in which it is incurred.
Termination Benefits
Termination benefits, which mainly represent severance payments by law, are recorded in the consolidated statement of income. The Group recognizes
termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that involves the payment of termination benefits.
The income tax expense for the period comprises current and deferred income tax. Income tax is recognized in the consolidated statement
of income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the income tax is recognized in other comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial
position date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns and establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for
if it arises from initial recognition of an asset or liability in a transaction (other than in a business combination) that at the time of the transaction affects neither accounting nor taxable income or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is recovered or the deferred income tax liability is
settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against
which the temporary differences and tax loss carryforwards can be utilized. For this purpose, the Group takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, projected
taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, and future reversals of existing temporary differences.
Deferred income tax liabilities are provided on taxable temporary differences associated with investments in subsidiaries, joint
ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are provided on deductible temporary differences associated with investments in subsidiaries, joint ventures and associates, to the extent that it is probable that there will be sufficient taxable income against which to
utilize the benefit of the temporary difference and it is expected to reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the
balances on a net basis.
| (w) |
Derivative Financial Instruments
|
The Group recognizes derivative financial instruments as either assets or liabilities in the consolidated statements of financial position and measures
such instruments at fair value. The accounting for changes in the fair value of a derivative financial instrument depends on the intended use of the derivative financial instrument and the resulting designation. For a derivative financial
instrument designated as a cash flow hedge, the effective portion of such derivative’s gain or loss is initially reported as a component of other comprehensive income or loss and subsequently reclassified into income when the hedged exposure
affects income. The ineffective portion of the gain or loss is reported in income immediately. For a derivative financial instrument designated as a fair value hedge, the gain or loss is recognized in income in the period of change together with
the offsetting loss or gain on the hedged item attributed to the risk being hedged. When a hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument that has been recognized in other
comprehensive income remains in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to income or loss. For
derivative financial instruments that are not designated as accounting hedges, changes in fair value are recognized in income in the period of change. During the years ended December 31, 2021, 2020 and 2019, certain derivative financial instruments
qualified for hedge accounting (see Note 15).
Comprehensive income for the period includes the net income for the period presented in the consolidated statement of income plus other comprehensive
income for the period reflected in the consolidated statement of comprehensive income.
| (y) |
Share-based Payment Agreements
|
Key officers and employees of certain subsidiaries of the Company have entered into agreements for the conditional sale of Company’s shares under
the Company’s Long-Term Retention Plan (“LTRP”). The share-based compensation expense is measured at fair value at the date the equity benefits are conditionally sold to these officers and employees, and recognized as a charge to consolidated
income (administrative expense) over the vesting period. The Group recognized a share-based compensation expense of Ps.1,088,413, Ps.984,356 and Ps.1,129,644 for the years ended December 31, 2021, 2020 and 2019, respectively, of which
Ps.1,066,863, Ps.962,806 and Ps.1,108,094 was credited in consolidated stockholders’ equity for each of those years, respectively (see Note 17).
In the first quarter of 2019, the Group adopted IFRS 16 Leases (“IFRS 16”), which became
effective for annual periods beginning on January 1, 2019 (see Note 28). The Group does not apply this IFRS Standard to short-term leases and leases for which the underlying asset is of low value, as permitted by the guidelines of IFRS 16.
On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as operating
leases under the guidelines of IAS 17 Leases (“IAS 17”). These liabilities were measured at the present value of the remaining lease payments, discounted using the
lessee´s incremental borrowing rate as of January 1, 2019. The average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019, was 4.7% and 10.6% for U.S. dollars leases and Mexican pesos leases, respectively.
| (aa) |
New and Amended IFRS Standards
|
The Group adopted IFRS 16 in 2019, which became effective for annual periods beginning on January 1, 2019 (see Notes 2 (k), 2 (z) and 28). Some other amendments and improvements to certain IFRS Standards became effective on
January 1, 2021, 2020 and 2019, and they did not have any significant impact on the Group’s consolidated financial statements.
Below is a list of the new and amended IFRS Standards that have been issued by the IASB and are effective for annual periods beginning on January 1, 2022.
|
New or Amended IFRS Standard
|
|
Title of the IFRS Standard
|
|
|
Effective for Annual
Periods Beginning
On or After
|
|
|
|
|
|
|
|
|
|
|
Amendments to IFRS 10 and
IAS 28 (1)
|
|
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
|
|
|
Postponed
|
|
|
IFRS 17 (2)
|
|
Insurance Contracts
|
|
|
January 1, 2023
|
|
|
Amendments to IAS 1 (1)
|
|
Classification of Liabilities as Current or Non-current
|
|
|
January 1, 2023
|
|
|
Annual Improvements (1)
|
|
Annual Improvements to IFRS Standards 2018-2020
|
|
|
January 1, 2022
|
|
|
Amendments to IAS 16 (1)
|
|
Property, Plant and Equipment: Proceeds before Intended Use
|
|
|
January 1, 2022
|
|
|
Amendments to IAS 37 (1)
|
|
Onerous Contracts – Cost of Fulfilling a Contract
|
|
|
January 1, 2022
|
|
|
Amendments to IFRS 3 (1)
|
|
Reference to the Conceptual Framework
|
|
|
January 1, 2022
|
|
|
Amendments to IAS 8 (1)
|
|
Definition of Accounting Estimates
|
|
|
January 1, 2023
|
|
|
Amendments to IAS 1 and IFRS Practice Statement 2 (1)
|
|
Disclosure of Accounting Policies
|
|
|
January 1, 2023
|
|
|
Amendment to IFRS 16 (1)
|
|
Covid-19-Related Rent Concessions beyond 30 June 2021
|
|
|
April 1, 2021
|
|
|
Amendments to IAS 12 (1)
|
|
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
|
|
|
January 1, 2023
|
|
|
Amendment to IFRS 17 (2)
|
|
Initial Application of IFRS 17 and IFRS 9 – Comparative
Information
|
|
|
January 1, 2023
|
|
| |
|
|
|
|
|
|
|
(1) This new or amended IFRS Standard is not expected to have a significant impact on the Group’s consolidated financial
statements.
|
|
|
(2) This new or amended IFRS Standard is not expected to be applicable to the Group’s consolidated financial statements.
|
|
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, were issued in September 2014,
and addressed and acknowledged an inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and those in IAS 28 Investments in Associates and
Joint Ventures, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a
business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015, the IASB decided
to postpone the effective date of these amendments indefinitely. Entities are required apply these amendments prospectively to the sale or contribution of assets occurring in annual periods beginning on or after a date to be determined by the IASB.
Earlier application is permitted. If an entity applies these amendments earlier, it shall disclose that fact. These amendments are expected to be applicable to the Group’s consolidated financial statements in connection with the closing of the
transaction with UH II in the first quarter of 2022 (see Note 3). As permitted, the Group will apply these amendments in 2022 and disclose this fact in its consolidated financial statements.
IFRS 17 Insurance Contracts (“IFRS 17”) was issued in May 2017 and amended in June 2020. IFRS 17 supersedes IFRS 4 Insurance
Contracts (“IFRS 4”), which has given companies dispensation to carry on accounting for insurance contracts using national accounting standards, resulting in a multitude of different approaches. IFRS 17 establishes principles for the
recognition, measurement, presentation and disclosures of insurance contracts issued. It also requires similar principles to be applied to reinsurance contracts with discretionary participation features issued. IFRS 17 solves the comparison
problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Under the provisions of IFRS 17, insurance obligations will be accounted for using current values instead of historical cost. Amendments to
IFRS 17 were issued in June 2020 aimed at helping companies implement the Standard and making it easier for them to explain their financial performance. The fundamental principles introduced when IFRS 17 was issued in May 2017 remained unaffected.
IFRS 17 is effective on January 1, 2023, and earlier application is permitted.
Amendments to IAS 1 Classification of Liabilities as Current or Non-current were issued in January 2020, and clarify one of the criteria in IAS 1 for
classifying a liability as non-current that is, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. An entity shall apply these amendments for annual reporting
periods beginning on or after January 1, 2023, retrospectively in accordance with IAS 8. Earlier application is permitted.
Annual Improvements to IFRS Standards 2018-2020, were issued in May 2020, and make minor amendments to certain IFRS Standards. The amendments are effective for annual periods beginning on or
after January 1, 2022. Earlier application is permitted. The following table shows the IFRS Standards amended and the subject of the amendments.
|
Standard
|
|
Subject of Amendment
|
|
IFRS 1 First-time Adoption of International Reporting Standards
|
|
Subsidiary as a First-time Adopter
|
|
IFRS 9 Financial Instruments
|
|
Fees in the “10 per cent” Test for Derecognition of Financial Liabilities
|
|
Illustrative Examples accompanying IFRS 16 Leases
|
|
Lease Incentives
|
|
IAS 41 Agriculture
|
|
Taxation in Fair Value Measurements
|
| |
|
|
Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use, were issued in May 2020, and prohibit a
company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost
in income or loss.
Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract, were issued in May 2020, and specify which costs a
company includes when assessing whether a contract will be loss-making, under the guidelines of IAS 37 Provisions, Contingent Liabilities and Contingent Assets (“IAS 37”). The amendments are effective for
contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. Earlier application is permitted.
Amendments to IFRS 3 Reference to the Conceptual Framework, were issued in May 2020, and update a reference in IFRS 3 Business
Combinations (“IFRS 3”) to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Also added to IFRS 3 an exception to its requirement for an entity to refer to the Conceptual
Framework to determine what constitutes an asset or a liability. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS 37. The Board added this exception to avoid
an unintended consequence of updating the reference. Without the exception, an entity would have recognized some liabilities on the acquisition of a business that it would not recognize in other circumstances. Immediately after the acquisition, the
entity would have had to derecognize such liabilities and recognize a gain that did not depict an economic gain. The amendments to IFRS 3 are effective for business combinations occurring in reporting periods starting on or after January 1, 2022.
Earlier application is permitted.
Amendments to IAS 8 Definition of Accounting Estimates, were issued in February 2021, the amendments introduced the definition of accounting estimates
and included other amendments to IAS 8 to help entities distinguish changes in accounting estimates from changes in accounting policies. The amendments are effective for annual reporting periods beginning on or after January 1, 2023. Earlier
application is permitted.
Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies, were issued in February 2021, the Board amended paragraphs 117–122
of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policy information rather than their significant accounting policies. To support this amendment the
Board also amended IFRS Practice Statement 2 Making Materiality Judgements (Materiality Practice Statement) to explain and demonstrate the application of the “four-step materiality process” to accounting
policy disclosures.
Amendment to IFRS 16 Covid-19-Related Rent Concessions beyond 30 June 2021 was issued in March 2021 and extends by one year the application period of the
practical expedient in IFRS 16. In response to calls from stakeholders and because the Covid-19 pandemic is still at its height, the amendment extends this relief by one year to cover rent concessions that reduce only lease payments due on or before
June 30, 2022. The original amendment was issued in May 2020 and exempts lessees from having to consider individual lease contracts to determine whether rent concessions, such as rent holidays and temporary rent reductions, occurring as a direct
consequence of the Covid-19 pandemic are lease modifications, and allows lessees to account for such rent concessions as if they were not lease modifications. The amendment is effective for annual reporting periods beginning on or after April 1,
2021.
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction were issued in May 2021 and specify how companies
should account for deferred tax on transactions such as leases and decommissioning obligations. IAS 12 Income Taxes specifies how a company accounts for income tax, including deferred tax, which represents
tax payable or recoverable in the future. In specified circumstances, companies are exempt from recognizing deferred tax when they recognize assets and liabilities for the first time. Previously, there had been some uncertainty about whether the
exemption applied to transactions such as leases and decommissioning obligations, transactions for which companies recognize both an asset and a liability. The amendments clarify that the exemption does not apply and that companies are required to
recognize deferred tax on such transactions. The aim of the amendments is to reduce diversity in the reporting of deferred tax on leases and decommissioning obligations. The amendments will become effective for annual reporting periods beginning on
or after January 1, 2023, with early application permitted.
Amendment to IFRS 17 Initial Application of IFRS 17 and IFRS 9 – Comparative Information, was issued in December 2021 and includes a narrow-scope amendment
to the transition requirements in IFRS 17, providing insurers with an option aimed at improving the usefulness of information to investors on initial application of the new Standard. The amendment relates to insurers’ transition to the new Standard
only, and it does not affect any other requirements in IFRS 17. IFRS 17 and IFRS 9 have different transition requirements. For some insurers, these differences can cause temporary accounting mismatches between financial assets and insurance contract
liabilities in the comparative information they present in their financial statements when applying IFRS 17 and IFRS 9 for the first time. IFRS 17, including this amendment, is effective for annual reporting periods beginning on or after January 1,
2023.
[813000] Notes - Interim financial reporting
Disclosure of interim financial reporting
GRUPO TELEVISA, S.A.B. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements
As of December 31, 2022 and 2021 and for the years ended December 31, 2022 and 2021
(In thousands of Mexican Pesos, except per CPO, per share, and exchange rate amounts, unless otherwise
indicated)
| 1. |
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” or “BMV”) 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 Av. Vasco de Quiroga No. 2000, Colonia Santa Fe, 01210 Mexico City, Mexico.
Grupo Televisa, S.A.B. together with its subsidiaries (collectively, the “Group”) is a major
telecommunications corporation which owns and operates one of the most significant cable companies as well as a leading direct-to-home (“DTH”) satellite pay television system in Mexico. The Group’s cable business offers integrated services,
including video, high-speed data and voice to residential and commercial customers, as well as managed services to domestic and international carriers. The Group owns a majority interest in Sky, a leading DTH satellite pay television system
and broadband provider in Mexico, operating also in the Dominican Republic and Central America. The Group holds a number of concessions by the Mexican government that authorizes it to broadcast programming over television stations for the
signals of TelevisaUnivision, Inc. (“TelevisaUnivision”), and the Group’s cable and DTH systems. In addition, the Group is the largest shareholder of TelevisaUnivision, a leading media company producing, creating, and distributing
Spanish-speaking content through several broadcast channels in Mexico, the U.S. and over 50 countries through television networks, cable operators and over-the-top or OTT services. The Group also has interests in magazine publishing and
distribution, professional sports and live entertainment, and gaming.
|
|
|
|
| 2. |
Basis of Preparation and Accounting Policies |
| |
|
| |
The condensed consolidated financial statements of the Group, as of December 31, 2022 and 2021, and for the years ended December 31, 2022 and 2021, 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.
These 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, 2021, 2020 and 2019, which have been prepared in accordance with International Financial Reporting Standards (“IFRS Standards”) as issued by the International Accounting Standards Board
(“IASB”), and include, among other disclosures, the Group’s most significant accounting policies, which were applied on a consistent basis as of December 31, 2022.
These unaudited condensed consolidated financial statements do not include all financial risk management information and disclosures required in the
annual financial statements; they should be read in conjunction with the Group’s audited consolidated financial statements for the years ended December 31, 2021, 2020 and 2019. There have been no significant changes in the Corporate Finance
Department of the Company or in any risk management policies since the year end.
These unaudited condensed consolidated financial statements were authorized for issuance on February 21, 2023, by the Group’s Corporate Vice President
of Finance.
|
|
|
The preparation of unaudited condensed consolidated financial statements requires management
to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these unaudited condensed consolidated financial statements, the significant
judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited consolidated financial statements for the year ended December 31,
2021.
The condensed consolidated statements of income of the Group for the years ended December 31,
2022 and 2021, have been prepared to present the discontinued operations following the TelevisaUnivision Transaction closed on January 31, 2022. Accordingly, the condensed consolidated statement of income of the Group for the year ended
December 31, 2021, has been re-presented from that previously reported by the Company, to present in that period the results from discontinued operations for the businesses disposed of by the Group on January 31, 2022 (see Notes 3 and 20).
|
|
|
|
| 3. |
Disposition of OCEN, Closing of the TelevisaUnivision Transaction and Reorganization Proposal |
|
|
|
|
|
On September 13, 2021, the Company announced that it had reached an
agreement with Live Nation Entertainment, Inc. (“Live Nation”) to move forward with the previously announced acquisition by Live Nation of the Group’s unconsolidated 40% equity participation in OCEN, a live entertainment company with
operations primarily in Mexico. OCEN was a direct associate of OISE Entretenimiento, S.A. de C.V. (“OISE Entretenimiento”), which was a wholly-owned subsidiary of the Company. As a result, the Group classified the assets of OISE
Entretenimiento, including the carrying amount of its investment in OCEN, as current assets held for sale in its consolidated statement of financial position, and discontinued recognizing its share of income or loss from October 1 through
November 30, 2021. On December 6, 2021, the Company announced the closing of the sale of its consolidated 40% equity participation in OCEN to Live Nation. In December 2021, the Company concluded this transaction and received a payment in
cash of Ps.4,806,549; recognized an account receivable of Ps.364,420 in connection with a 7% retention of the total amount of the transaction to cover OCEN potential operating losses, if any, for a period of time following closing; and
accounted for a pretax income of Ps.4,547,029 for the disposal of this investee in other consolidated income for the year ended December 31, 2021. In the second quarter of 2022, Live Nation paid to the Company the holdback amount of
Ps.364,420, and a purchase price adjustment of Ps.35,950 in connection with this transaction (see Note 15).
On April 13, 2021, the Group and Univision Holdings, Inc. (“UHI”) announced a transaction
agreement (the “Transaction Agreement”) in which the Group’s content and media assets would be combined with Univision Holdings II, Inc. (“UH II,” the successor company of UHI), and the Group would continue to participate in UH II, with an
equity stake of approximately 45% following the closing of the transaction. The Group would also retain ownership of its Cable, Sky and Other Businesses segments, as well as the main real estate associated with the production facilities,
the broadcasting concessions and transmission infrastructure in Mexico. The Group would contribute to UH II the assets specified in the Transaction Agreement, including, subject to certain exceptions, its Content business, for a total value
of U.S.$4,500 million, comprised of U.S.$3,000 million in cash, U.S.$750 million in common stock of UH II and U.S.$750 million in preferred stock of UH II, with an annual dividend of 5.5%. In connection with this transaction, UH II would
receive all assets, intellectual property and library related to the News division of the Group’s Content business but would outsource production of news content for Mexico to a company owned by the Azcárraga family. The combination was
approved by each of the Board of Directors of the Company, the Board of Directors of UHI, and the Stockholders of the Company in the first half of 2021. The transaction was subject to customary closing conditions, including receipt of
regulatory approvals in primarily in the United States and Mexico, among others. On September 14, 2021, the Mexican Institute of Telecommunications (Instituto Federal de Telecomunicaciones or “IFT”) announced its approval of this
transaction. As of December 31, 2021, the Group consolidated the results of its Content business as the Group had not ceased to exercise control of this business segment as of that date; and presented its Content business as a reportable
segment of continuing operations, as all the required regulatory approvals had not been obtained by the parties as of that date, and those approvals were considered substantial. On January 24, 2022, the Company and UH II announced that all
required regulatory approvals for the transaction had been already received by that date. As a result, the transaction announced on April 13, 2021, was closed by the parties on January 31, 2022 (the “TelevisaUnivision Transaction”). In
connection with the TelevisaUnivision Transaction, the Group recognized an income from disposition of discontinued operations in the aggregate amount of Ps.93,066,741 in its consolidated statement of income for the year ended December 31,
2022, comprising a consideration in cash received from TelevisaUnivision in the aggregate amount of U.S.$2,971.3 million (Ps.61,214,741), a consideration in common and preferred stock of TelevisaUnivision, in the aggregate amount of
U.S.$1,500.0 million (Ps.30,912,000), and a cash consideration received from Tritón Comunicaciones, S.A. de C.V. (“Tritón,” a company of the Azcárraga family) in the amount of Ps.940,000, related to the rights for the production of news
content for Mexico. Also, in connection with the TelevisaUnivision Transaction, the Group (i) began to present and disclose the results of operations of its disposed businesses as discontinued operations in its consolidated statements of
income for any comparative prior period and for the month ended January 31, 2022; (ii) recognized a net gain on disposition of discontinued operations of Ps.55,765,928, for the year ended December 31, 2022, and a net loss on disposition of
discontinued operations of Ps.1,943,647 for the year ended December 31, 2021; and (iii) recognized as deferred income a prepayment made by TelevisaUnivision in the aggregate amount of U.S.$276.2 million (Ps.5,729,377), for the use of
concession rights owned by the Group, which was classified as current and noncurrent liabilities in the Group’s consolidated statement of financial position, an amounted to Ps.287,667 and Ps.5,178,014, respectively, as of December 31, 2022.
In the fourth quarter of 2022, the Group concluded the disposition of those assets and liabilities that were classified as held for sale in the Group’s consolidated statement of financial position in connection with the TelevisaUnivision
Transaction (see Notes 2, 5 and 20).
|
|
|
On October 27, 2022, the Board of Directors of the Company approved a reorganization proposal to separate from the Group some businesses
that are part of its Other Businesses segment, including its interests in professional sports and live entertainment, gaming, and magazine publishing and distribution, as well as certain related assets and real estate (the “Spin-off
Businesses”). It is expected that this proposed reorganization is carried out through a spin-off (escisión) of the Company, creating a new controlling entity listed in the Mexican Stock Exchange that
would hold the Spin-off Businesses, and that would have the same shareholding structure of the Company. The Company’s management considers that this plan will allow both the Group and the new entity resulting from the spin-off, to focus on
their respective business models and growth opportunities, enhancing their ability to generate better conditions for access to capital, financing sources and investors, that are aligned with each business. It is expected that the
reorganization is completed in the first half of 2023, which will be subject to several conditions, including compliance with applicable law, as well as obtaining all required corporate and regulatory authorizations, and the approval of the
spin-off by the Company’s shareholders meeting. |
|
|
|
4.
|
Investments in Financial Instruments |
|
|
|
|
At December 31, 2022 and 2021, the Group had the following investments in financial instruments:
|
| |
|
|
December 31, 2022
|
|
|
December 31, 2021
|
|
| |
Equity instruments measured at fair value through other
comprehensive income:
|
|
|
|
|
|
|
| |
Open-Ended Fund (1)
|
Ps.
|
773,209
|
|
Ps.
|
945,176
|
|
| |
Publicly traded equity instruments (2)
|
|
2,611,053
|
|
|
3,517,711
|
|
| |
Other equity instruments (3)
|
|
-
|
|
|
1,607,969
|
|
| |
|
|
3,384,262
|
|
|
6,070,856
|
|
| |
Other
|
|
5,223
|
|
|
5,223
|
|
| |
|
Ps.
|
3,389,485
|
|
Ps.
|
6,076,079
|
|
| |
|
|
| |
(1)
|
The Group has an investment in an Open-Ended Fund that has as a primary objective to achieve capital appreciation by using a broad range of strategies through
investments in securities, including without limitation stock, debt and other financial instruments, a principal portion of which are considered as Level 1 financial instruments, in telecom, media and other sectors across global markets,
including Latin America and other emerging markets. Shares may be redeemed on a quarterly basis at the Net Asset Value (“NAV”) per share as of such redemption date. The fair value of this fund is determined by using the NAV per share. The
NAV per share is calculated by determining the value of the fund assets, all of which are measured at fair value,and subtracting all of the fund liabilities and dividing the result by the total number of issued shares. In March 2021, the
Company redeemed a portion of its investment in Open-Ended Fund at the aggregate fair value amount of U.S.$10.0 million (Ps.258,956) and recognized cash proceeds from this redemption for such aggregate amount.
|
| |
(2) |
The fair value of publicly traded equity instruments is determined by using quoted market prices at
the measurement date. In the first half of 2021, the Company disposed of a portion of these publicly traded equity instruments and recognized cash proceeds from this disposition in the aggregate amount of Ps.1,755,415.
|
| |
(3) |
As of December 31, 2021, other equity instruments included unquoted equity investments, which were
initially recognized at cost with any subsequent changes in fair value recognized through other comprehensive income or loss. The Group disposed of these investments on January 31, 2022, in connection with the closing of the
TelevisaUnivision Transaction (see Note 3).
|
| |
|
|
|
|
|
|
|
|
| |
A roll-forward of investments in financial assets at fair value through other comprehensive income or loss for
the years ended December 31, 2022 and 2021, is presented as follows: |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Open-Ended
Fund (1)
|
|
|
Publicly Traded Equity Instruments
|
|
|
Other Equity Instruments
|
|
|
Total
|
|
| |
At January 1, 2022
|
Ps.
|
945,176
|
|
Ps.
|
3,517,711
|
|
Ps.
|
1,607,969
|
|
Ps.
|
6,070,856
|
|
| |
Disposition of investments
|
|
-
|
|
|
-
|
|
|
(1,607,969
|
)
|
|
(1,607,969
|
)
|
| |
Change in fair value in other comprehensive income
|
|
(171,967
|
)
|
|
(906,658
|
)
|
|
-
|
|
|
(1,078,625
|
)
|
| |
At December 31, 2022
|
Ps.
|
773,209
|
|
Ps.
|
2,611,053
|
|
Ps.
|
-
|
|
Ps.
|
3,384,262
|
|
| |
|
|
Open-Ended
Fund (1)
|
|
|
Publicly Traded Equity Instruments
|
|
|
Other Equity Instruments
|
|
|
Total
|
|
| |
At January 1, 2021
|
Ps.
|
1,135,803
|
|
Ps.
|
5,397,504
|
|
Ps.
|
468,552
|
|
Ps.
|
7,001,859
|
|
| |
Investments
|
|
-
|
|
|
-
|
|
|
1,118,178
|
|
|
1,118,178
|
|
| |
Disposition of investments
|
|
(258,956
|
)
|
|
(1,756,434
|
)
|
|
-
|
|
|
(2,015,390
|
)
|
| |
Change in fair value in other comprehensive income
|
|
68,329
|
|
|
(123,359
|
)
|
|
21,239
|
|
|
(33,791
|
)
|
| |
At December 31, 2021
|
Ps.
|
945,176
|
|
Ps.
|
3,517,711
|
|
Ps.
|
1,607,969
|
|
Ps.
|
6,070,856
|
|
| |
|
|
|
(1)
|
The foreign exchange loss and gain derived from the investment in the Open-Ended Fund for the years ended December 31, 2022 and 2021, respectively, was hedged by
a foreign exchange gain and loss derived from Senior Notes designated as hedging instruments for the years ended December 31, 2022 and 2021, respectively, in the amount of Ps.114,046 and Ps.99,673, respectively (see Notes 9 and
16).
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5.
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Investments in Associates and Joint Ventures |
|
|
|
|
|
At December 31, 2022 and 2021, the Group had the following investments in associates and joint ventures accounted for by the equity method: |
| |
|
|
Ownership as of
December 31,
2022
|
|
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
| |
Associates:
|
|
|
|
|
|
|
|
|
|
|
| |
TelevisaUnivision and subsidiaries (1)
|
|
44.4
|
%
|
|
Ps.
|
48,404,313
|
|
Ps.
|
25,721,539
|
|
| |
Other
|
|
|
|
|
|
51,864
|
|
|
164,903
|
|
| |
Joint ventures:
|
|
|
|
|
|
|
|
|
|
|
| |
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries (collectively “GTAC”) (2)
|
|
33.3
|
%
|
|
|
750,169
|
|
|
614,147
|
|
| |
Periódico Digital Sendero, S.A.P.I. de C.V. and subsidiary (collectively “PDS”) (3)
|
|
50.0
|
%
|
|
|
202,567
|
|
|
203,646
|
|
| |
|
|
|
|
|
Ps.
|
49,408,913
|
|
Ps.
|
26,704,235
|
|
| |
(1)
|
The Group accounts for its investment in common stock of TelevisaUnivision (formerly known as UH II), the parent
company of Univision Communications Inc. (“Univision”), under the equity method due to the Group’s ability to exercise significant influence, as defined under IFRS Standards, over TelevisaUnivision’s operations. The Group has the
ability to exercise significant influence over the operating and financial policies of TelevisaUnivision because (i) it owned 9,290,999 and 5,701,335 Class A Common Stock shares of TelevisaUnivision as of December 31, 2022 and 2021,
respectively, and 750,000 Series B Preferred shares of TelevisaUnivision as of December 31, 2022, representing as of December 31, 2022 and 2021, 44.4% and 35.5%, respectively, of the outstanding common and preferred shares of
TelevisaUnivision on an as-converted basis (excluding unvested and/or unsettled stock, restricted stock units and options of TelevisaUnivision), and 45.1% and 40.1%, respectively, of the outstanding voting shares of
TelevisaUnivision; and (ii) it has designated three members of the Board of Directors of TelevisaUnivision, one of which serves as the Chairman. The Chairman does not presently have tie-breaking vote or other similar power in
connection with any decisions of the Board. The governing documents of TelevisaUnivision provide for a 13-member Board of Directors; however, the Board of Directors currently consists of 11 members, and the Group has the right to
appoint the two additional members. Until January 31, 2022, the Group was also a party to a Program Licensing Agreement (“PLA”), as amended, with Univision, pursuant to which Univision had the right to broadcast certain Televisa
content in the United States, and to another program license agreement pursuant to which the Group had the right to broadcast certain Univision content in Mexico. On May 18, 2021, UHI concluded a reorganization through a series of
transactions (the “Reorganization”) pursuant to which, among other things, UH II acquired a controlling financial interest in UHI on that date. The Reorganization was effectuated by UHI in connection with the TelevisaUnivision
Transaction closed on January 31, 2022. As a result of the
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| |
|
Reorganization of UHI: (i) the Group and other existing stockholders of UHI
exchanged their shares of the capital stock of UHI for the same number and class of newly issued shares of UH II; (ii) UHI issued common stock to a new investor and then these shares were exchanged for shares in UH II; (iii) the Group held an
equity interest in the capital stock of UH II of 35.5% on an as-converted basis; and (iv) UH II became a successor company of UHI. In connection with the Reorganization of UHI, and other observable indications that the value of the Group’s net
investment in UH II increased significantly during 2021 (including internal and external valuations of the recoverable amount of UH II), in the second half of 2021, the Group’s management assessed whether there was any indication that the
impairment loss recognized by the Group in the first quarter of 2020 in the amount of U.S.$228.6 million (Ps.5,455,356) for its net investment in shares of UHI might no longer exist or might have decreased. As a result of this assessment, the
Group’s management concluded that there had been a change in the estimates used to determine the recoverable amount of the Group’s net investment in UH II since the last impairment loss was recognized, and the carrying amount of such net
investment was increased to its recoverable amount. The reversal of the impairment loss amounted to U.S.$199.1 million (Ps.4,161,704) and was recognized in share of income of associates and joint ventures in the Group’s consolidated statement
of income for the year ended December 31, 2021. On January 31, 2022, the Group increased its investment in shares of TelevisaUnivision in the aggregate fair value amount of U.S.$1,500 million (Ps.30,912,000) comprised of 3,589,664 Class A
Common Stock shares of TelevisaUnivision in the amount of U.S.$750 million (Ps.15,456,000), and 750,000 Series B Preferred shares of TelevisaUnivision, with a annual preferred dividend of 5.5% payable on a quarterly basis, in the amount of
U.S.$750 million (Ps.15,456,000). The investment in preferred shares of TelevisaUnivision has been classified by the Group as investments in associates and joint ventures because this investment has in substance potential voting rights and give
access to the returns associated with an ownership in TelevisaUnivision. For the year ended December 31, 2022, the Group received from TelevisaUnivision a preferred dividend in cash in the aggregate amount of U.S.$37.8 million (Ps.752,556),
which was accounted for in share of income of associates in the Group’s consolidated statement of income for the year ended December 31, 2022. In connection with the TelevisaUnivision Transaction, and other observable indications that the value
of the Group’s net investment in TelevisaUnivision increased significantly during 2022 (including internal valuations of the recoverable amount of TelevisaUnivision), in the second quarter of 2022, the Group’s management assessed whether there
was any indication that the remaining impairment loss recognized by the Group in the first quarter of 2020 for its net investment in shares of TelevisaUnivision might not longer exist or might have decreased. As a result of this assessment, the
Group’s management concluded that there have been a change in the estimates used to determine the recoverable amount of the Group’s net investment in TelevisaUnivision since the last impairment loss was recognized, and the carrying amount of
such net investment was increased to an amount lower than its recoverable amount. The reversal of the impairment loss amounted to U.S.$29.5 million (Ps.593,838) and was recognized in share of income of associates and joint ventures in the
Group’s consolidated statement of income for the year ended December 31, 2022. The Group recognized a share in loss of TelevisaUnivision for the year ended December 31, 2022, primarily in connection with a goodwill impairment loss recognized by
TelevisaUnivision in the fourth quarter of 2022 (see Notes 1, 3, 4, 10, 14 and 16). |
| |
(2) |
GTAC was granted a 20-year contract for the lease of a pair of dark fiber wires held by the Mexican Federal Electricity
Commission and a concession to operate a public telecommunications network in Mexico with an expiration date in 2030. GTAC is a joint venture in which a subsidiary of the Company, a subsidiary of Grupo de Telecomunicaciones Mexicanas, S.A.
de C.V., and a subsidiary of Megacable, S.A. de C.V., have an equal equity participation of 33.3%. In June 2010, a subsidiary of the Company entered into a long-term credit facility agreement to provide financing to GTAC for up to
Ps.688,217, with an annual interest rate of the Mexican Interbank Interest Rate (“Tasa de Interés Interbancaria de Equilibrio” or “TIIE”) plus 200 basis
points. Under the terms of this agreement, principal and interest are payable at dates agreed by the parties, between 2013 and 2021. As of December 31, 2021, GTAC had used a principal amount of Ps.688,183 under this credit facility. During
the year ended December 31, 2021, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.97,342. Also, a subsidiary of the Company entered into supplementary long-term
loans to provide additional financing to GTAC for an aggregate principal amount of Ps.1,243,955, with an annual interest of TIIE plus 200 basis points computed on a monthly basis and payable on an annual basis or at dates agreed by the
parties. Under the terms of these supplementary loans, principal amounts can be prepaid at dates agreed by the parties before their maturities between 2023 and 2030. During the year ended December 31, 2022, GTAC paid principal and interest
to the Group in connection with this credit facility in the aggregate principal amount of Ps.146,386. During the year ended December 31, 2021, GTAC paid principal and interest to the Group in connection with this credit facility in the
aggregate principal amount of Ps.147,413. The net investment in GTAC as of December 31, 2022 and 2021, included amounts receivable in connection with this long-term credit facility and supplementary loans to GTAC in the aggregate amount of
Ps.853,163 and Ps.755,973, respectively. These amounts receivable arex in substance a part of the Group’s net investment in this investee (see Note 9).
|
| |
(3) |
The Group accounts for its investment in PDS under the equity method, due to its 50% interest in this
joint venture. As of December 31, 2022 and 2021, the Group’s investment in PDS included intangible assets and goodwill in the aggregate amount of Ps.113,837.
|
|
6.
|
Property, Plant and Equipment, Net, and Investment Property, Net
|
|
|
|
|
|
Property, plant and equipment as of December 31, 2022 and 2021, consisted of: |
| |
|
|
December 31, 2022
|
|
|
December 31, 2021
|
|
| |
Buildings
|
Ps.
|
7,212,219
|
|
Ps.
|
10,127,239
|
|
| |
Building improvements
|
|
182,982
|
|
|
183,735
|
|
| |
Technical equipment
|
|
186,550,056
|
|
|
172,795,206
|
|
| |
Satellite transponders
|
|
6,026,094
|
|
|
6,026,094
|
|
| |
Furniture and fixtures
|
|
1,214,427
|
|
|
1,298,803
|
|
| |
Transportation equipment
|
|
3,026,747
|
|
|
3,407,907
|
|
| |
Computer equipment
|
|
9,241,759
|
|
|
9,514,099
|
|
| |
Leasehold improvements
|
|
3,549,060
|
|
|
3,728,496
|
|
| |
|
|
217,003,344
|
|
|
207,081,579
|
|
| |
Accumulated depreciation
|
|
(150,402,108
|
)
|
|
(138,586,625
|
)
|
| |
|
|
66,601,236
|
|
|
68,494,954
|
|
| |
Land
|
|
4,064,386
|
|
|
4,891,626
|
|
| |
Construction and projects in progress
|
|
11,570,777
|
|
|
14,535,546
|
|
| |
|
Ps.
|
82,236,399
|
|
Ps.
|
87,922,126
|
|
|
|
As of December 31, 2022, technical equipment included Ps.1,133,071, net of related accumulated depreciation of Ps.522,651, in connection with costs
of dismantling certain equipment of the cable networks in the Group’s Cable segment.
|
|
|
|
|
|
Depreciation charged to income for the year ended December 31, 2022 and 2021, was Ps.17,579,713 and Ps.17,730,550, respectively, which included
Ps.73,473 and Ps.884,103, corresponding to the depreciation of discontinued operations, respectively.
|
|
|
|
|
|
During the year ended December 31, 2022 and 2021, the Group invested Ps.17,315,387 and Ps.23,267,847, respectively, in property, plant and equipment
as capital expenditures.
|
|
|
|
| |
Investment Property, Net
|
| |
|
| |
Beginning in the first quarter of 2022, in connection with the TelevisaUnivision Transaction, the Group leases some of its buildings and land to
TelevisaUnivision under operating lease agreements. As of December 31, 2022, buildings and land subject to these operating leases, were as follows:
|
| |
|
|
December 31, 2022
|
|
|
December 31, 2021
|
|
| |
Buildings
|
Ps.
|
2,151,338
|
|
Ps.
|
-
|
|
| |
Building improvements
|
|
225,801
|
|
|
-
|
|
| |
|
|
2,377,139
|
|
|
-
|
|
| |
Accumulated depreciation
|
|
(993,973
|
)
|
|
-
|
|
| |
|
|
1,383,166
|
|
|
-
|
|
| |
Land
|
|
1,489,999
|
|
|
-
|
|
| |
|
Ps.
|
2,873,165
|
|
Ps.
|
-
|
|
[1] ↑
Current assets – Other current non-financial assets: As of December 31, 2022 and December 31, 2021,
includes transmission rights and programming for Ps.888,344 thousand and Ps.7,591,669, thousands, respectively.
[2] ↑
Non-current assets – Other non-current non-financial assets: As of December 31, 2022 and December
31, 2021, includes transmission rights and programming for Ps.1,022,782 thousand and Ps.12,841,026 thousand, respectively.
[3] ↑
Total basic earnings (loss) per share: This information is related to earnings per CPO. The CPO are
the securities traded in the Mexican Stock Exchange.
[4] ↑
Total diluted earnings (loss) per share: This information is related to earnings per diluted CPO.
The CPO are the securities traded in the Mexican Stock Exchange.
[5] ↑
Breakdown of credits:
The Notes due in 2027 were contracted at a fixed rate.
The "Senior Notes" due in 2025, 2026, 2032, 2037, 2040, 2043, 2045, 2046 and 2049 were contracted
at a fixed rate.
The exchange rates for the credits denominated in foreign currency were as follows:
Ps. 19.4760 pesos per US dollar
Bank loans and senior notes are presented net of unamortized finance costs in the aggregate
amount of Ps.994,735.
For more information on debt, see Note 9 Notes to the Unaudited Condensed Consolidated Financial
Statements.
[6] ↑
Monetary foreign currency position:
The exchange rates used for translation were as follows:
Ps.19.4760 pesos per US dollar
20.8878 pesos per euro
21.1275 pesos per swiss franc
14.4065 pesos per canadian dollar
0.0040 pesos per colombian peso
Long-term liabilities include debt in the amount of U.S.$2,525,032 thousand, which has been designated
as hedging instrument of foreign currency investments.
[7] and [8]
In April 2022, the Company’s stockholders approved the payment of a dividend of Ps.0.35 per CPO and
Ps.0.002991452991 per share of Series “A,” “B,” “D,” and “L” Shares, not in the form of a CPO unit, which was paid in cash in May 2022, in the aggregate amount of Ps.1,053,392.