|
Investor Relations
PRESS RELEASE
|
● |
Sales and Operating Segment Income (“OSI”) increased 3.0% and 5.4%, respectively.1
|
● |
Ongoing financial discipline with cost and expenses declining by Ps.579 million.
|
●
|
Reached 12.7 million Revenue Generating Units (“RGUs”).
|
●
|
Continued to position IZZI as the premier aggregator of OTT offers.
|
●
|
Double digit growth in Revenue and in OSI of 15.1% and 16.3%, respectively.
|
●
|
Operating Cash Flow2 (“OCF”) increased 76.6% in 2019, reaching Ps.5.3 billion.
|
●
|
Resumed growth in video RGUs with positive net adds each of the last three quarters.
|
●
|
Continued building scale in the broadband business reaching 386 thousand RGUs.
|
●
|
Strong contributor to OCF, generating Ps.5.3 billion in 2019.
|
●
|
Top 18 of the 20 most watched programs during weekdays were broadcast on Televisa.
|
●
|
Resilient core3 advertising revenue: down 1.8%, in spite of macroeconomic uncertainty.
|
●
|
Strong performance of Televisa content in Univision: U.S.$389.1 million dollars in Royalties.
|
●
|
Maintained strong OSI margin, reaching 36.3%.
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From the U.S.: +1 (877) 850 2115
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From Mexico: 800 926 9157
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International callers: +1 (478) 219 0648
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Rebroadcast: +1 (404) 537-3406
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Excluding non-recurring licensing revenue for 2018
|
2019
|
Margin
|
2018
|
Margin
|
Change
|
%
|
%
|
%
|
|||
Net sales
|
101,492.2
|
100.0
|
98,548.7
|
100.0
|
3.0
|
Operating segment income1
|
41,015.1
|
38.7
|
38,924.9
|
38.0
|
5.4
|
|
2019
|
Margin
|
2018
|
Margin
|
Change
|
%
|
%
|
%
|
|||
Net sales
|
101,492.2
|
100.0
|
101,282.3
|
100.0
|
0.2
|
Net income
|
6,202.8
|
6.1
|
7,615.3
|
7.5
|
(18.5)
|
Net income attributable to stockholders of the Company
|
4,722.1
|
4.7
|
6,009.4
|
5.9
|
(21.4)
|
Segment net sales
|
106,044.9
|
100.0
|
105,174.4
|
100.0
|
0.8
|
Operating segment income (1)
|
41,015.1
|
38.7
|
40,335.4
|
38.4
|
1.7
|
I.
|
a Ps.2,657.9 million unfavorable change in other income or expense, net; and
|
II.
|
a Ps.1,174.6 million increase in depreciation and amortization.
|
I.
|
a Ps.1,614.0 million decrease in income taxes;
|
II.
|
a Ps.788.9 million increase in operating income before depreciation and amortization and other income or expenses, net; and
|
III.
|
a Ps.125.2 million decrease in net income attributable to non-controlling interests.
|
Net Sales
|
2019
|
%
|
2018
|
%
|
Change
%
|
Cable
|
41,702.0
|
39.3
|
36,233.0
|
34.5
|
15.1
|
Sky
|
21,347.1
|
20.1
|
22,002.2
|
20.9
|
(3.0)
|
Content1
|
34,795.5
|
32.8
|
36,490.1
|
34.7
|
(4.6)
|
Other Businesses
|
8,200.3
|
7.8
|
7,715.5
|
7.3
|
6.3
|
Segment Net Sales1
|
106,044.9
|
100.0
|
102,440.8
|
97.4
|
3.5
|
Intersegment Operations2
|
(5,394.1)
|
(4,812.1)
|
|||
Net Sales1
|
100,650.8
|
|
97,628.7
|
|
3.1
|
Non-recurring licensing revenue
|
n/a
|
2,733.6
|
2.6
|
n/a
|
|
Held-to-sale Operations5
|
841.4
|
n/a
|
920.0
|
n/a
|
(8.5)
|
Net Sales
|
101,492.2
|
|
101,282.3
|
|
0.2
|
Operating Segment Income3
|
2019
|
Margin
%
|
2018
|
Margin
%
|
Change
%
|
Cable
|
17,797.6
|
42.7
|
15,302.5
|
42.2
|
16.3
|
Sky
|
9,121.2
|
42.7
|
9,767.3
|
44.4
|
(6.6)
|
Content1
|
12,632.1
|
36.3
|
13,444.6
|
36.8
|
(6.0)
|
Other Businesses
|
1,464.2
|
17.9
|
410.5
|
5.3
|
256.7
|
Operating Segment
Income1
|
41,015.1
|
38.7
|
38,924.9
|
38.0
|
5.4
|
Non-recurring licensing income
|
n/a
|
n/a
|
1,410.5
|
51.6
|
n/a
|
Operating Segment Income
|
41,015.1
|
38.7
|
40,335.4
|
38.4
|
1.7
|
Corporate Expenses
|
(1,888.4)
|
(1.8)
|
(2,154.7)
|
(2.0)
|
12.4
|
Depreciation and Amortization
|
(21,008.8)
|
(20.7)
|
(19,834.2)
|
(19.6)
|
(5.9)
|
Other (expense) income, net
|
(1,095.6)
|
(1.1)
|
1,562.3
|
1.5
|
n/a
|
Intersegment Operations4
|
(72.2)
|
(0.1)
|
n/a
|
n/a
|
n/a
|
Held-to-sale Operations5
|
258.9
|
n/a
|
343.8
|
n/a
|
(24.7)
|
Operating Income
|
17,209.0
|
17.0
|
20,252.6
|
20.0
|
(15.0)
|
Net Sales
|
4Q’19
|
%
|
4Q’18
|
%
|
Change
%
|
Cable
|
11,016.1
|
37.7
|
9,517.7
|
34.0
|
15.7
|
Sky
|
5,379.1
|
18.4
|
5,461.9
|
19.5
|
(1.5)
|
Content
|
10,901.6
|
37.3
|
10,642.8
|
38.1
|
2.4
|
Other Businesses
|
1,933.9
|
6.6
|
2,344.0
|
8.4
|
(17.5)
|
Segment Net Sales
|
29,230.7
|
100.0
|
27,966.4
|
100.0
|
4.5
|
Intersegment Operations1
|
(1,495.3)
|
(1,485.1)
|
|||
Net Sales
|
27,735.4
|
|
26,481.3
|
|
4.7
|
Held-to-sale Operations 2
|
267.8
|
254.0
|
5.4
|
||
Net Sales
|
28,003.2
|
|
26,735.3
|
|
4.7
|
Operating Segment Income3
|
4Q’19
|
%
|
4Q’18
|
%
|
Change
%
|
Cable
|
4,545.0
|
41.3
|
4,005.7
|
42.1
|
13.5
|
Sky
|
2,108.9
|
39.2
|
2,214.6
|
40.5
|
(4.8)
|
Content
|
4,324.2
|
39.7
|
4,036.7
|
37.9
|
7.1
|
Other Businesses
|
96.7
|
5.0
|
133.9
|
5.7
|
(27.8)
|
Operating Segment Income
|
11,074.8
|
37.9
|
10,390.9
|
37.2
|
6.6
|
Corporate Expenses
|
(496.7)
|
(1.7)
|
(586.8)
|
(2.1)
|
15.4
|
Depreciation and Amortization
|
(5,392.4)
|
(19.3)
|
(5,147.5)
|
(19.3)
|
(4.8)
|
Other Expense, net
|
(234.3)
|
(0.8)
|
(1,089.0)
|
(4.1)
|
78.5
|
Intersegment Operations4
|
(18.8)
|
(0.1)
|
n/a
|
n/a
|
n/a
|
Held-to-sale Operations 2
|
100.3
|
n/a
|
96.7
|
n/a
|
3.7
|
Operating Income
|
5,032.9
|
18.0
|
3,664.3
|
13.7
|
37.3
|
RGUs
|
2019
|
2018
|
Video
|
4,318,863
|
4,384,247
|
Broadband
|
4,696,054
|
4,479,017
|
Voice
|
3,637,992
|
2,978,508
|
Total RGUs
|
12,652,909
|
11,841,772
|
MSO Operations (1)
Millions of Mexican pesos
|
2019
|
2018
|
Change %
|
4Q’19
|
4Q’18
|
Change %
|
Revenue
|
37,495.8
|
32,279.8
|
16.2
|
9,800.9
|
8,498.5
|
15.3
|
Operating Segment Income
|
16,248.0
|
13,962.0
|
16.4
|
4,151.1
|
3,670.1
|
13.1
|
Margin (%)
|
43.3
|
43.3
|
|
42.4
|
43.2
|
Enterprise Operations (1)
Millions of Mexican pesos
|
2019
|
2018
|
Change %
|
4Q’19
|
4Q’18
|
Change %
|
Revenue
|
5,874.5
|
5,341.0
|
10.0
|
1,631.0
|
1,408.8
|
15.8
|
Operating Segment Income
|
2,051.1
|
1,811.9
|
13.2
|
527.9
|
471.4
|
12.0
|
Margin (%)
|
34.9
|
33.9
|
|
32.4
|
33.5
|
(1) |
Full year results do not include the consolidation adjustments of Ps.1,668.3 million in revenues nor Ps.501.5 million in Operating Segment Income for 2019, neither
the consolidation adjustments of Ps.1,387.8 million in revenues nor Ps.471.4 million in Operating Segment Income for 2018. Likewise, fourth quarter results do not include the consolidation adjustments of Ps.415.8 million in revenues nor
Ps.134.0 million in Operating Segment Income for fourth quarter 2019, neither the consolidation adjustments of Ps.389.6 million in revenues nor Ps.135.8 million in Operating Segment Income for fourth quarter 2018. Consolidation
adjustments are considered in the consolidated results of the Cable segment.
|
RGUs
|
2019
|
2018
|
Video
|
7,429,351
|
7,637,040
|
Broadband
|
386,114
|
91,841
|
Voice
|
1,145
|
n/a
|
Total RGUs
|
7,816,610
|
7,728,881
|
Millions of Mexican pesos
|
2019
|
%
|
2018
|
%
|
Change %
|
Advertising
|
19,420.4
|
55.8
|
21,154.9
|
58.0
|
(8.2)
|
Network Subscription
|
4,939.2
|
14.2
|
4,814.3
|
13.2
|
2.6
|
Licensing and Syndication
|
10,435.9
|
30.0
|
10,520.9
|
28.8
|
(0.8)
|
Net Sales
|
34,795.5
|
100.0
|
36,490.1
|
100.0
|
(4.6)
|
Non-recurring licensing revenue
|
n/a
|
2,733.6
|
n/a
|
||
Net Sales
|
34,795.5
|
|
39,223.7
|
|
(11.3)
|
I.
|
the absence in 2019 of a Ps.3,513.8 million pretax gain on disposition of our 19.9% stake in Imagina Media Audiovisual, S. L. (“Imagina”), a
Spanish media group, which sale was closed in June 2018; and
|
II.
|
a higher expense related to legal, financial and accounting advisory and professional services.
|
I.
|
the absence in 2019 of other taxes paid by Sky in Central America in 2018;
|
II.
|
a lower loss on disposition of property and equipment; and
|
III.
|
interest income on asset tax recovered from prior years.
|
Other (expense) income, net
|
2019
|
2018
|
Cash
|
(765.0)
|
2,600.0
|
Non-cash
|
(330.6)
|
(1,037.7)
|
Total
|
(1,095.6)
|
1,562.3
|
The following table sets forth finance (expense) income, net, stated in millions of Mexican pesos for the years ended December 31, 2019 and 2018.
2019
|
2018
|
(Increase)
Decrease
|
|
Interest expense
|
(10,402.0)
|
(9,707.3)
|
(694.7)
|
Interest income
|
1,529.1
|
1,567.1
|
(38.0)
|
Foreign exchange gain, net
|
935.3
|
220.1
|
715.2
|
Other finance expense, net
|
(873.2)
|
(859.6)
|
(13.6)
|
Finance expense, net
|
(8,810.8)
|
(8,779.7)
|
(31.1)
|
I.
|
a Ps.694.7 million increase in interest expense, primarily due to a higher average principal amount of debt in 2019, as well as interest expense in
the amount of Ps.426.5 million related to additional lease liabilities recognized beginning on January 1, 2019, in connection with the adoption of IFRS 16, which became effective on that date;
|
II.
|
a Ps.38.0 million decrease in interest income, primarily explained by a lower average amount of cash equivalents; and
|
III.
|
a Ps.13.6 million increase in other finance expense, net, resulting primarily from changes in fair value of our derivative contracts.
|
Capital Expenditures
Millions of U.S. Dollars
|
2019
|
2018
|
Cable
|
675.3
|
665.5
|
Sky
|
209.1
|
209.6
|
Content and Other Businesses
|
107.8
|
94.8
|
Total
|
992.2
|
969.9
|
December 31, 2019
|
December 31, 2018
|
Increase
(Decrease)
|
Current portion of long-term debt
|
491.9
|
988.4
|
(496.5)
|
Long-term debt, net of current portion
|
120,444.7
|
120,983.6
|
(538.9)
|
Total debt (1)
|
120,936.6
|
121,972.0
|
(1,035.4)
|
Current portion of long-term lease liabilities
|
1,257.8
|
651.8
|
606.0
|
Long-term lease liabilities, net of current portion
|
8,105.8
|
4,666.1
|
3,439.7
|
Total lease liabilities (2)
|
9,363.6
|
5,317.9
|
4,045.7
|
Current portion of other notes payable
|
1,324.1
|
1,288.4
|
35.7
|
Other notes payable, net of current portion
|
-
|
1,288.4
|
(1,288.4)
|
Total other notes payable (3)
|
1,324.1
|
2,576.8
|
(1,252.7)
|
Total debt, lease liabilities and other notes payable
|
131,624.3
|
129,866.7
|
1,757.6
|
December 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
ASSETS
|
(Unaudited)
|
(Audited)
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
Ps.
|
27,452.0
|
Ps.
|
32,068.3
|
||||
Temporary investments
|
-
|
31.0
|
||||||
Trade notes and accounts receivable, net
|
14,330.7
|
19,748.9
|
||||||
Other accounts and notes receivable, net
|
10,519.8
|
6,376.6
|
||||||
Derivative financial instruments
|
1.7
|
115.7
|
||||||
Due from related parties
|
814.4
|
1,078.3
|
||||||
Transmission rights and programming
|
6,710.3
|
7,785.7
|
||||||
Inventories
|
1,151.4
|
1,026.4
|
||||||
Contract costs
|
1,379.4
|
1,143.0
|
||||||
Assets held for sale
|
2,369.7
|
-
|
||||||
Other current assets
|
3,298.1
|
2,679.0
|
||||||
Total current assets
|
68,027.5
|
72,052.9
|
||||||
Non-current assets:
|
||||||||
Derivative financial instruments
|
2.9
|
919.8
|
||||||
Transmission rights and programming
|
8,012.6
|
9,229.8
|
||||||
Investments in financial instruments
|
44,265.8
|
49,203.4
|
||||||
Investments in associates and joint ventures
|
9,068.5
|
10,546.7
|
||||||
Property, plant and equipment, net
|
83,329.2
|
87,342.5
|
||||||
Right-of-use assets, net
|
7,553.1
|
-
|
||||||
Intangible assets, net
|
43,329.0
|
43,063.5
|
||||||
Deferred income tax assets
|
24,250.1
|
22,181.8
|
||||||
Contract costs
|
2,311.8
|
2,227.7
|
||||||
Other assets
|
271.9
|
402.5
|
||||||
Total non-current assets
|
222,394.9
|
225,117.7
|
||||||
Total assets
|
Ps.
|
290,422.4
|
Ps.
|
297,170.6
|
||||
December 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
LIABILITIES
|
(Unaudited)
|
(Audited)
|
||||||
Current liabilities:
|
||||||||
Current portion of long-term debt and interest payable
|
Ps.
|
2,435.8
|
Ps.
|
2,108.4
|
||||
Current portion of lease liabilities
|
1,257.8
|
651.8
|
||||||
Current portion of other notes payable
|
1,324.1
|
1,288.4
|
||||||
Derivative financial instruments
|
568.8
|
148.1
|
||||||
Trade accounts payable and accrued expenses
|
20,909.7
|
22,029.5
|
||||||
Customer deposits and advances
|
5,731.8
|
13,637.7
|
||||||
Income taxes payable
|
2,470.2
|
3,054.8
|
||||||
Other taxes payable
|
3,448.0
|
1,280.3
|
||||||
Employee benefits
|
911.9
|
1,067.2
|
||||||
Due to related parties
|
644.3
|
714.5
|
||||||
Liabilities related to assets held for sale
|
432.8
|
-
|
||||||
Other current liabilities
|
2,233.3
|
2,550.8
|
||||||
Total current liabilities
|
42,368.5
|
48,531.5
|
||||||
Non-current liabilities:
|
||||||||
Long-term debt, net of current portion
|
120,444.7
|
120,983.6
|
||||||
Lease liabilities, net of current portion
|
8,105.8
|
4,666.1
|
||||||
Other notes payable, net of current portion
|
-
|
1,288.4
|
||||||
Derivative financial instruments
|
346.5
|
-
|
||||||
Income taxes payable
|
1,759.7
|
3,141.4
|
||||||
Deferred income tax liabilities
|
7,052.2
|
8,390.5
|
||||||
Post-employment benefits
|
1,468.1
|
962.5
|
||||||
Other long-term liabilities
|
3,376.6
|
4,676.0
|
||||||
Total non-current liabilities
|
142,553.6
|
144,108.5
|
||||||
Total liabilities
|
184,922.1
|
192,640.0
|
||||||
EQUITY
|
||||||||
Capital stock
|
4,907.8
|
4,907.8
|
||||||
Additional paid-in-capital
|
15,889.8
|
15,889.8
|
||||||
20,797.6
|
20,797.6
|
|||||||
Retained earnings:
|
||||||||
Legal reserve
|
2,139.0
|
2,139.0
|
||||||
Unappropriated earnings
|
75,666.1
|
70,362.5
|
||||||
Net income for the period
|
4,722.1
|
6,009.4
|
||||||
82,527.2
|
78,510.9
|
|||||||
Accumulated other comprehensive income, net
|
1,320.5
|
4,427.4
|
||||||
Shares repurchased
|
(14,018.8
|
)
|
(14,219.1
|
)
|
||||
69,828.9
|
68,719.2
|
|||||||
Equity attributable to stockholders of the Company
|
90,626.5
|
89,516.8
|
||||||
Non-controlling interests
|
14,873.8
|
15,013.8
|
||||||
Total equity
|
105,500.3
|
104,530.6
|
||||||
Total liabilities and equity
|
Ps.
|
290,422.4
|
Ps.
|
297,170.6
|
||||
Three months ended December 31,
|
Twelve months ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Net sales
|
Ps.
|
28,003.2
|
Ps.
|
26,735.3
|
Ps.
|
101,492.2
|
Ps.
|
101,282.3
|
||||||||
Cost of sales
|
16,699.4
|
15,490.4
|
58,725.4
|
57,839.3
|
||||||||||||
Selling expenses
|
2,848.9
|
2,986.1
|
11,193.0
|
11,023.4
|
||||||||||||
Administrative expenses
|
3,187.7
|
3,505.5
|
13,269.2
|
13,729.3
|
||||||||||||
Income before other expense
|
5,267.2
|
4,753.3
|
18,304.6
|
18,690.3
|
||||||||||||
Other (expense) income, net
|
(234.3
|
)
|
(1,089.0
|
)
|
(1,095.6
|
)
|
1,562.3
|
|||||||||
Operating income
|
5,032.9
|
3,664.3
|
17,209.0
|
20,252.6
|
||||||||||||
Finance expense
|
(3,117.1
|
)
|
(2,973.4
|
)
|
(11,275.2
|
)
|
(10,566.9
|
)
|
||||||||
Finance income
|
1,719.0
|
658.9
|
2,464.4
|
1,787.2
|
||||||||||||
Finance expense, net
|
(1,398.1
|
)
|
(2,314.5
|
)
|
(8,810.8
|
)
|
(8,779.7
|
)
|
||||||||
Share of income (lost) of associates and joint ventures, net
|
91.5
|
(378.0
|
)
|
581.1
|
532.9
|
|||||||||||
Income before income taxes
|
3,726.3
|
971.8
|
8,979.3
|
12,005.8
|
||||||||||||
Income taxes
|
803.7
|
591.8
|
2,776.5
|
4,390.5
|
||||||||||||
Net income
|
Ps.
|
2,922.6
|
Ps.
|
380.0
|
Ps.
|
6,202.8
|
Ps.
|
7,615.3
|
||||||||
Net income attributable to:
|
||||||||||||||||
Stockholders of the Company
|
Ps.
|
2,506.1
|
Ps.
|
56.5
|
Ps.
|
4,722.1
|
Ps.
|
6,009.4
|
||||||||
Non-controlling interests
|
416.5
|
323.5
|
1,480.7
|
1,605.9
|
||||||||||||
Net income
|
Ps.
|
2,922.6
|
Ps.
|
380.0
|
Ps.
|
6,202.8
|
Ps.
|
7,615.3
|
||||||||
Basic earnings per CPO attributable to stockholders of the Company
|
Ps.
|
0.86
|
Ps.
|
0.02
|
Ps.
|
1.63
|
Ps.
|
2.07
|
||||||||
|
|
GRUPO TELEVISA, S.A.B.
|
||||
|
|
(Registrant)
|
||||
Dated: February 24, 2020
|
|
|
By
|
|
/s/ Luis Alejandro Bustos Olivares
|
|
|
|
Name:
|
|
Luis Alejandro Bustos Olivares
|
||
|
|
Title:
|
|
Legal Vice President and General Counsel
|