UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2004
GRUPO TELEVISA, S.A.
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(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Sante Fe 01210 Mexico, D.F.
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(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No X
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(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
Grupo Televisa, S.A. FOURTH QUARTER AND FULL YEAR 2003 RESULTS
FOR IMMEDIATE RELEASE
GRUPO TELEVISA REPORTS FOURTH QUARTER AND FULL YEAR 2003 RESULTS
FULL YEAR 2003 HIGHLIGHTS
> NET SALES INCREASED 5.1% AND EBITDA GREW 19.4%
> TELEVISION BROADCASTING SEGMENT AND CONSOLIDATED EBITDA MARGINS
REACHED 42.5% AND 32.1%, RESPECTIVELY, EXCEEDING THE COMPANY'S FULL
YEAR 2003 GUIDANCE
> UPFRONT SALES INCREASED 5.1% IN REAL TERMS
> MOODY'S UPGRADED GRUPO TELEVISA, S.A.'S OUTLOOK TO "POSITIVE" FROM
"STABLE" AND AFFIRMED DEBT RATINGS OF "BAA3"
> SIGN-ON TO SIGN-OFF AUDIENCE SHARE EXCEEDED 70% IN EVERY MONTH OF 2003
FULL YEAR 2003 CONSOLIDATED RESULTS
Mexico City, D.F., February 25, 2004 -- Grupo Televisa, S.A. (NYSE:TV; BMV:
TLEVISA CPO) today announced results for the fourth quarter and full year
2003. The results, shown in the attached tables on pages 10-12, are in
millions of Mexican pesos, have been prepared in accordance with Mexican
GAAP and are adjusted to pesos in purchasing power as of December 31, 2003.
The following table sets forth a condensed Statement of Income in millions
of Mexican pesos, the percentage that each line represents of net sales,
and the percentage change for the years ended December 31, 2003 and 2002:
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2003 MARGIN % 2002 MARGIN % CHANGE %
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Net Sales(1) 23,563.2 100.0 22,416.6 100.0 5.1
EBITDA(2) 7,571.2 32.1 6,342.6 28.3 19.4
Operating Income 6,045.9 25.7 4,835.3 21.6 25.0
Net Income 3,596.6 15.3 767.2 3.4 368.8
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(1) See "Results by Business Segment" for information
regarding segment results.
(2) EBITDA is defined as operating income before
depreciation and amortization.
The 5.1% increase in net sales was attributable to several factors,
including: i) a 5.4% revenue growth in the Television Broadcasting segment;
ii) a 27.1% revenue increase in the Publishing Distribution segment; iii)
an 11.6% increase in the Programming Licensing segment revenues; iv) a
10.7% sales increase in the Programming for Pay Television segment; v) a
28.2% increase in Radio sales; and vi) a 2.9% sales increase in the
Publishing segment. These increases were partially offset by a 14.4%
revenue reduction in the Cable Television segment and a 4.9% sales decrease
in the Other Businesses segment.
Consolidated EBITDA increased 19.4% and Consolidated EBITDA margin
increased to 32.1%, reflecting EBITDA growth in most of our business
segments, including Television Broadcasting, Programming Licensing,
Publishing, Radio, Programming for Pay Television, and Other Businesses,
partially offset by EBITDA declines in the Cable Television and Publishing
Distribution segments. In addition, operating income increased 25.0%,
reflecting higher sales and reductions of 0.2% in cost of sales and 1.9% in
operating expenses, partially offset by a 1.2% increase in depreciation and
amortization costs.
Net income amounted to Ps.3,596.6 million in 2003 as compared to a net
income of Ps.767.2 million in 2002. The net increase of Ps.2,829.4 million
reflected a Ps.1,210.6 million increase in operating income; a Ps.218.1
million decrease in restructuring and non-recurring charges; a Ps.1,675.6
million decrease in other expense-net; and a Ps.1,216.2 million decrease in
equity in losses from affiliates. This favorable change was partially
offset by a Ps.1,169.2 million decrease in income from discontinued
operations and a Ps.394.3 million increase in income taxes.
FOURTH QUARTER RESULTS BY BUSINESS SEGMENTS
The following tables set forth the net sales, EBITDA and operating income
(loss) in millions of Mexican pesos for each of the Company's business
segments for the fourth quarters ended December 31, 2003 and 2002:
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Net Sales 4Q % 4Q % CHANGE
2003 2002 %
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Television Broadcasting 4,797.6 67.8 4,564.5 68.6 5.1
Programming for Pay
Television 189.3 2.7 176.1 2.6 7.5
Programming Licensing 375.8 5.3 366.8 5.5 2.5
Publishing 536.6 7.6 525.7 7.9 2.1
Publishing Distribution 564.7 8.0 410.9 6.2 37.4
Cable Television 253.5 3.6 265.7 4.0 (4.6)
Radio 71.0 1.0 52.4 0.8 35.5
Other Businesses 281.5 4.0 294.1 4.4 (4.3)
SEGMENT REVENUES 7,070.0 100.0 6,656.2 100.0 6.2
Intersegment Operations(1) (97.8) (138.7) 29.5
Disposed Operations(2) 52.7 98.6 -
CONSOLIDATED REVENUES 7,024.9 6,616.1 6.2
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EBITDA 4Q MARGIN 4Q MARGIN CHANGE
2003 % 2002 % %
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Television Broadcasting 2,114.8 44.1 1,892.5 41.5 11.7
Programming for Pay
Television 33.0 17.4 28.8 16.4 14.6
Programming Licensing 69.9 18.6 53.5 14.6 30.7
Publishing 117.7 21.9 95.3 18.1 23.5
Publishing Distribution 2.7 0.5 (14.1) (3.4) 119.1
Cable Television 84.4 33.3 72.7 27.4 16.1
Radio 10.8 15.2 3.1 5.9 248.4
Other Businesses (87.7) (31.2) (77.2) (26.2) (13.6)
Corporate Expenses (35.8) (0.5) (31.0) (0.5) (15.5)
SEGMENT EBITDA 2,309.8 32.7 2,023.6 30.4 14.1
Disposed Operations(2) 9.8 18.6 17.3 17.5 -
CONSOLIDATED EBITDA 2,319.6 33.0 2,040.9 30.8 13.7
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Operating Income (Loss) 4Q MARGIN 4Q MARGIN CHANGE
2003 % 2002 % %
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Television Broadcasting 1,923.6 40.1 1,646.7 36.1 16.8
Programming for Pay
Television 26.9 14.2 16.9 9.6 59.2
Programming Licensing 68.2 18.1 49.9 13.6 36.7
Publishing 113.1 21.1 87.2 16.6 29.7
Publishing Distribution (2.6) (0.5) (18.6) (4.5) 86.0
Cable Television 36.1 14.2 47.9 18.0 (24.6)
Radio 6.8 9.6 (1.2) (2.3) 666.7
Other Businesses (169.1) (60.1) (151.2) (51.4) (11.8)
Corporate Expenses (35.8) (0.5) (31.0) (0.5) (15.5)
SEGMENT OPERATING INCOME 1,967.2 27.8 1,646.6 24.7 19.5
Disposed Operations(2) (0.4) (0.8) 3.0 3.0 -
CONSOLIDATED OPERATING
INCOME 1,966.8 28.0 1,649.6 24.9 19.2
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(1) Intersegment operations: For segment reporting purposes, intersegment
operations are included in each of the segment operations.
(2) Disposed Operations reflects the results of operations of the
Company's nationwide paging and dubbing businesses.
FULL YEAR RESULTS BY BUSINESS SEGMENTS
The following tables set forth the net sales, EBITDA and operating income
(loss) in millions of Mexican pesos for each of the Company's business
segments for the full years ended December 31, 2003 and 2002:
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Net Sales CHANGE
2003 % 2002 % %
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Television Broadcasting 15,387.0 65.2 14,596.5 65.4 5.4
Programming for Pay
Television 699.7 3.0 632.2 2.8 10.7
Programming Licensing 1,630.2 6.9 1,461.1 6.5 11.6
Publishing 1,787.8 7.6 1,737.2 7.8 2.9
Publishing Distribution 1,776.2 7.5 1,397.2 6.3 27.1
Cable Television 986.5 4.2 1,152.3 5.2 (14.4)
Radio 249.3 1.0 194.5 0.9 28.2
Other Businesses 1,087.3 4.6 1,143.8 5.1 (4.9)
SEGMENT REVENUES 23,604.0 100.0 22,314.8 100.0 5.8
Intersegment Operations(1) (314.7) (377.6) 16.7
Disposed Operations(2) 273.9 479.4 -
CONSOLIDATED REVENUES 23,563.2 22,416.6 5.1
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EBITDA 2003 MARGIN 2002 MARGIN CHANGE
% % %
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Television Broadcasting 6,540.2 42.5 5,700.4 39.1 14.7
Programming for Pay
Television 154.3 22.1 107.4 17.0 43.7
Programming Licensing 498.1 30.6 238.6 16.3 108.8
Publishing 346.2 19.4 291.0 16.8 19.0
Publishing Distribution 8.6 0.5 15.5 1.1 (44.5)
Cable Television 301.4 30.6 337.3 29.3 (10.6)
Radio 22.5 9.0 (30.5)(15.7) 173.8
Other Businesses (219.0)(20.1) (248.3)(21.7) 11.8
Corporate Expenses (149.3) (0.6) (149.2) (0.7) (0.1)
SEGMENT EBITDA 7,503.0 31.8 6,262.2 28.1 19.8
Disposed Operations(2) 68.2 24.9 80.4 16.8 -
CONSOLIDATED EBITDA 7,571.2 32.1 6,342.6 28.3 19.4
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Operating Income (Loss) MARGIN MARGIN CHANGE
2003 % 2002 % %
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Television Broadcasting 5,617.0 36.5 4,745.8 32.5 18.4
Programming for Pay
Television 114.6 16.4 62.6 9.9 83.1
Programming Licensing 490.7 30.1 226.7 15.5 116.5
Publishing 327.3 18.3 262.3 15.1 24.8
Publishing Distribution (11.7) (0.7) (1.9) (0.1) (515.8)
Cable Television 120.9 12.3 209.5 18.2 (42.3)
Radio 7.0 2.8 (47.6) (24.5) 114.7
Other Businesses (494.2)(45.5) (505.9) (44.2) 2.3
Corporate Expenses (149.3) (0.6) (149.2) (0.7) (0.1)
SEGMENT OPERATING INCOME 6,022.3 25.5 4,802.3 21.5 25.4
Disposed Operations(2) 23.6 8.6 33.0 6.9 -
CONSOLIDATED OPERATING
INCOME 6,045.9 25.7 4,835.3 21.6 25.0
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(1) Intersegment operations: For segment reporting purposes, intersegment
operations are included in each of the segment operations.
(2) Disposed Operations reflects the results of operations of the
Company's nationwide paging and dubbing businesses.
TELEVISION The 5.4% sales increase in the Television Broadcasting
BROADCASTING segment during 2003 compared with last year was mainly
attributable to four factors: i) the political advertising
campaigns for the mid-term elections in Mexico; ii) an
increase of 11.5% in local sales, driven mainly by Channel
4TV; iii) an increase in advertising time sold; and iv) the
success of our reality shows.
Television Broadcasting EBITDA increased 14.7% to Ps.6,540.2
million, reflecting higher sales and a 1.2% reduction in
cost of sales, partially offset by higher operating
expenses. EBITDA margin reached 42.5%, exceeding the
Company's full year EBITDA margin guidance by 250 basis
points. In addition, operating income rose 18.4% in 2003.
PROGRAMMING The 10.7% increase in sales for Programming for Pay
FOR PAY Television resulted from both higher revenues from signals
TELEVISION sold to pay television systems in Mexico and higher
advertising sales in Mexico, partially offset by lower
revenues from signals sold to pay television systems in
Latin America and Spain.
Operating income rose 83.1% due to higher sales and lower
operating expenses, primarily reflecting a decrease in
commissions, partially offset by higher costs of signals
bought from third parties.
PROGRAMMING The 11.6% increase in Programming Licensing sales was
LICENSING attributable to a 23.7% increase in the royalties paid to
the Company by Univision under the Univision Program License
Agreement, which amounted to U.S.$96.1 million, as well as
by the translation effect on foreign-currency denominated
sales, which amounted to Ps.98.0 million. These increases
were partially offset by lower export sales mainly to Latin
America.
Operating income grew 116.5%, reflecting higher sales as
well as a decrease in cost of sales and operating expenses
due to a lower provision for doubtful trade accounts.
PUBLISHING Publishing sales increased 2.9% due to higher revenues from
magazines sold in Mexico, higher advertising pages sold in
Mexico and abroad, and the positive translation effect on
foreign-currency denominated sales, which amounted to
Ps.19.6 million. These increases were partially offset by
lower circulation of magazines sold abroad.
Publishing operating income rose 24.8% due to higher sales
and a marginal reduction in cost of sales, partially offset
by a marginal increase in operating expenses.
PUBLISHING The 27.1% increase in Publishing Distribution sales was
DISTRIBUTION driven by: i) higher distribution sales abroad; ii) the
positive translation effect on foreign-currency denominated
sales, which amounted to Ps.27.0 million; and iii) higher
revenues from magazines published by the Company and sold in
Mexico. These increases were partially offset by lower sales
of magazines published by third parties and sold in Mexico.
The operating loss increased by Ps.9.8 million to an
operating loss of Ps.11.7 million due to higher cost of
sales and operating expenses due to higher provision for
doubtful trade accounts, partially offset by higher sales.
CABLE Cable Television sales decreased 14.4% due to a decrease in
TELEVISION subscribers throughout 2003 and lower advertising sales. The
subscriber base decreased to approximately 364,000, of which
more than 60,000 had digital service as of December 31,
2003, compared with 412,000, of which approximately 65,000
had digital service as of the same date of 2002. Cablevision
started to gradually digitalize its service last November.
The project will be implemented in stages over a period of
up to two years.
Operating income decreased 42.3% due to lower sales and
higher depreciation and amortization costs related to the
network upgrade and related equipment, partially offset by a
14.1% decrease in cost of sales and a 21.7% decrease in
operating expenses.
The 10% excise tax imposed on pay television services was
eliminated. As a result, effective January 1, 2004 revenues
from our Cable Television segment are no longer subject to
this tax.
RADIO Radio sales increased 28.2% in 2003 mainly due to higher
advertising time sold in our newscasts and sporting events
programs.
Operating results increased to an operating income of Ps.7.0
million in 2003 from an operating loss of Ps.47.6 million in
2002. The improvement reflected higher sales and a decrease
in cost of sales partially offset by higher operating
expenses.
OTHER The 4.9% decrease in Other Businesses sales was primarily
BUSINESSES due to lower sales in the feature film distribution business
partially offset by higher sales from both the sporting
events production and the Internet portal businesses.
The operating loss decreased to Ps.494.2 million in 2003
from Ps.505.9 million in 2002, reflecting lower cost of
sales, partially offset by lower sales and higher operating
expenses.
SKY Innova, S. de R.L. de C.V., a non-consolidated business of
Grupo Televisa, is the pay-TV market leader in Mexico. It
provides direct-to-home satellite television services under
the SKY brand name. Financial and operating unaudited
highlights of Innova, of which Televisa owns 60%, News Corp.
30%, and Liberty Media 10%, are as follows:
o The number of gross active subscribers increased
16.1% to 856,600, including 48,500 commercial
subscribers, as of December 31, 2003, compared
with 737,800, including 35,800 commercial
subscribers, as of December 31, 2002.
o Revenues increased 7.0% to Ps.3,820.7 million in
2003 compared with last year, mainly due to the
growth of its subscriber base.
o EBITDA increased 22.7% in 2003 to Ps.1,191.5
million compared with 2002. As a result, EBITDA
margin increased 400 basis points to 31.2%.
o EBIT increased to Ps.382.9 million in 2003
compared with Ps.9.4 million in 2002.
o The 10% excise tax was definitely eliminated as of
January 1, 2004. From this date and going forward,
Innova is not subject to this excise tax and will
be able to lower its overall tax exposure and
retain a higher proportion of its revenues,
without any modification in prices to its
subscribers.
o On February 13, 2004, Innova entered into two
separate derivative transactions denominated
"coupon swap" agreements to hedge a portion of its
U.S. Dollar foreign exchange exposure resulting
from the issuance of its U.S.$300 million 9.375%
Senior Notes due in 2013. Under the transactions,
Innova will receive semiannual payments calculated
based on an aggregate notional amount of U.S.$300
million at an annual rate of 9.375%, and will make
monthly payments calculated based on an aggregate
notional amount of Ps.3,282.225 million at an
annual rate of 10.25%. The transactions, both of
which terminate in September 2008, will reduce
Innova's foreign exchange exposure on 10 interest
coupon payments on the Senior Notes.
o Innova has not required shareholder funding for
seven straight quarters and expects to satisfy its
liquidity needs during 2004 with its current
balance of cash resources and additional cash flow
from operations.
NON-OPERATING RESULTS
INTEGRAL COST OF FINANCING
The following table sets forth the Integral Cost of Financing for the full
years ended December 31, 2003 and 2002, in millions of Mexican pesos:
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2003 2002 INCREASE CHANGE
(DECREASE) %
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Interest expense 1,375.7 1,425.7 (50.0) (3.5)
Interest income (649.9) (613.1) (36.8) (6.0)
Foreign exchange loss - net 275.6 607.6 (332.0) (54.6)
Foreign exchange result - hedged (469.0) (826.8) (357.8) (43.3)
Loss from monetary position - net 82.0 44.0 38.0 86.4
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614.4 637.4 (23.0) (3.6)
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The expense attributable to integral cost of financing decreased by Ps.23.0
million, or 3.6%, to Ps.614.4 million for the year ended December 31, 2003
from Ps.637.4 million for the year ended December 31, 2002. This decrease
reflects: i) a Ps.357.8 million decrease in the favorable hedge effect of
the foreign exchange loss incurred in the year ended December 31, 2003, as
compared to the year ended December 31, 2002, in connection with the
Company's U.S.$600 million long-term debt securities maturing in 2011 and
2032, which principal amount is being hedged by the Company's net
investment in Univision since March 2002; and ii) a Ps.38.0 million
increase in loss from monetary position primarily as a result of a higher
net asset monetary position during the year ended December 31, 2003 as
compared to the year ended December 31, 2002. These unfavorable variances
were partially offset by i) a Ps.332.0 million decrease in net foreign
exchange loss, primarily due to the 7.3% depreciation of the Mexican peso
as compared to the U.S. dollar during the year ended December 31, 2003
versus a 14.0% depreciation of the Mexican peso as compared to the U.S.
dollar during the year ended December 31, 2002; ii) a Ps.36.8 million
increase in interest income, primarily as a result of a higher average
amount of temporary investments during the year ended December 31, 2003 as
compared to the year ended December 31, 2002, which was partially offset by
a reduction of interest rates during the year ended December 31, 2003 as
compared to the year ended December 31, 2002, and a decrease in interest
income from Innova for the year ended December 31, 2003 as compared to the
year ended December 31, 2002, as a result of the Innova's capitalization in
September 2003 of all of the amounts due to the Company by Innova in
connection with long-term loans provided by the Company; and iii) a Ps.50.0
million decrease in interest expense, primarily as a result of a decrease
in the restatement of the Company's UDI denominated debt, primarily due to
a lower inflation during the year ended December 31, 2003 (3.98%) as
compared to the year ended December 31, 2002 (5.70%), as well as an
increase in the net gain on interest swap contracts outstanding in the year
ended December 31, 2003 as compared to the year ended December 31, 2002.
RESTRUCTURING AND NON-RECURRING CHARGES
Restructuring and non-recurring charges decreased by Ps.218.1 million, or
24.9%, to Ps.657.2 million for the year ended December 31, 2003 from
Ps.875.3 million for the year ended December 31, 2002. This decrease
reflects: i) a Ps.338.3 million non-recurring charge taken in the year
ended December 31, 2002 in connection with the write-off of exclusive
rights letters for soccer players; ii) a Ps.169.9 million non-recurring
charge taken in the year ended December 31, 2002 related to the drawdown by
DirecTV under a letter of credit posted by the Company in connection with
certain arrangements between DirecTV and the Company to broadcast the 2002
World Cup; and iii) a reduction in restructuring charges in connection with
work force reductions in the year ended December 31, 2003 as compared to
the year ended December 31, 2002. These decreases were partially offset by
a Ps.284.2 million non-recurring charge taken in the year ended December
31, 2003, in connection with the payment of vested and unvested salary
benefits to certain Company's union employees, as a part of the Company's
continuing cost-cutting efforts; as well as a Ps.164.6 million
non-recurring charge taken in the year ended December 31, 2003, in
connection with an estimate for the disposal of certain long-lived assets
and associated costs related to the Company's nationwide paging business,
based on the evaluation of both the recoverability of the assets and the
Company's decision for not continuing in this majority-owned business.
OTHER EXPENSE-NET
Other expense, net decreased by Ps.1,675.6 million, or 75.5%, to Ps.543.3
million for the year ended December 31, 2003, as compared to Ps.2,218.9
million for the year ended December 31, 2002. This decrease primarily
reflects a decrease in the write-off of goodwill for the year ended
December 31, 2003, as compared to the year ended December 31, 2002, as well
as a gain on disposition of the remaining shares held by the Company in its
former DTH venture in Spain.
INCOME TAXES
The effective income and assets tax rate decreased for the year ended
December 31, 2003, as compared to the year ended December 31, 2002,
primarily reflecting the increased use of tax loss carry-forwards in 2003
as compared to 2002, partially offset by an increase in consolidated assets
tax, as a result of a higher assets tax base for the year ended December
31, 2003 as compared to the year ended December 31, 2002, and an increase
in foreign income tax in 2003 as compared to 2002.
EQUITY IN RESULTS OF AFFILIATES - NET
Equity in results of affiliates increased by Ps.1,216.2 million to an
equity income of Ps.14.4 million for the year ended December 31, 2003 from
an equity loss of Ps.1,201.8 million for the year ended December 31, 2002.
This increase primarily reflects a decrease in equity losses of Innova in
the year ended December 31, 2003, as compared to the year ended December
31, 2002; a reduction in the Company's liability position in Sky
Multi-Country Partners (SMCP) as a result of the reduction in the estimated
remaining useful life of the satellite transponders being leased by SMCP
and guaranteed by the Company; and an equity income from the Company's
investment in Univision. These favorable variances were partially offset by
an increase in equity losses in DTH TechCo Partners for the year ended
December 31, 2003, as compared to the year ended December 31, 2002.
MINORITY INTEREST
Minority interest increased by Ps.49.4 million to a benefit of Ps.121.0
million for the year ended December 31, 2003 from a benefit of Ps.71.6
million for the year ended December 31, 2002. This increase primarily
reflected a net loss of the Company's nationwide paging business in 2003 as
compared to a net income in 2002, partially offset by decreases in the net
loss of the Company's Cable Television and Radio segments for the year
ended December 31, 2003, as compared to the year ended December 31, 2002.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES AND INVESTMENTS
In 2003, the Company invested approximately U.S.$94.9 million in property,
plant and equipment as capital expenditures, of which approximately
U.S.$17.4 million is related to Cablevision. Additionally, in 2003 the
Company made capital contributions of approximately U.S.$2.5 million in
"TuTV," a 50% joint venture with Univision for distribution of the
Company's Spanish-speaking programming packages in the United States, and
of approximately U.S.$4.8 million in Ocesa Entretenimiento, the live
entertainment company in which the Company holds a 40% stake; as well as
U.S.$20.6 million in long-term loans to its Latin American DTH joint
ventures. Innova did not require shareholder funding in 2003 and does not
expect to require shareholder funding in 2004.
DEBT
As of December 31, 2003, the Company's long-term debt maturities amounted
to Ps.14,704.2 million, and the current portion of long-term debt was
Ps.285.2 million, compared with Ps.13,875.9 million and Ps.1,289.2 million,
respectively, as of December 31, 2002.
On February 4, 2004 Moody's Investor Services affirmed Grupo Televisa,
S.A.'s existing Senior Implied Rating, Senior Unsecured Issuer Rating and
Debt Ratings of "Baa3." Additionally, Moody's changed the outlook from
"Stable" to "Positive."
SHARE BUYBACK PROGRAM
Since the implementation of our most recently announced share repurchase
program, through February 25, 2004, the Company has repurchased
approximately 94.8 million shares in the form of 31.6 million CPOs for
approximately Ps.520.3 million in nominal terms.
DIVIDEND PAYMENT
Grupo Televisa's management will propose to the Board of Directors during
its next meeting the payment of a dividend of at least Ps.1,500 million to
be paid during the second quarter of 2004.
ADVERTISING SALES PLAN
As of December 31, 2003, we had received aggregate upfront advertising
deposits for television advertising of approximately Ps.12,354.9 million in
nominal terms. The deposits as of December 31, 2003 represented a 9.3%
nominal increase, or 5.1% in real terms, as compared with the prior year.
Approximately 62.0% of the advanced payment deposits as of December 31,
2003 were in the form of short-term, non-interest bearing notes receivable
the following year, with the remainder consisting of cash deposits. The
weighted average maturity of these notes on December 31, 2003 was 3.3
months.
TELEVISION RATINGS AND AUDIENCE SHARE
National urban ratings and audience share reported by IBOPE confirm that in
2003, Televisa continued to deliver strong ratings and audience shares.
During weekday prime time (19:00 to 23:00 - Monday to Friday), audience
share amounted to 72.0%; in prime time (16:00 to 23:00 - Monday to Sunday),
audience share amounted to 70.1%; and in sign-on to sign-off (6:00 to 24:00
- Monday to Sunday), audience share amounted to 71.8%. Additionally, during
2003, Televisa aired 175 of the 200 most popular programs.
OUTLOOK FOR 2004
We will face a difficult comparison during the first half of the year, and
especially during the second quarter, due to the absence of the political
advertising that we received in 2003. However, we expect to make up that
shortfall and achieve a marginal increase in our Television Broadcasting
segment revenues for the full year. In addition, we expect to keep overall
cost and expenses flat during 2004, which should allow us to maintain our
Television Broadcasting segment and Consolidated EBITDA margins at current
levels.
Grupo Televisa S.A., is the largest media company in the Spanish-speaking
world, and a major player in the international entertainment business. It
has interests in television production and broadcasting, programming for
pay television, international distribution of television programming,
direct-to-home satellite services, publishing and publishing distribution,
cable television, radio production and broadcasting, professional sports
and show business promotions, feature film production and distribution, and
the operation of a horizontal Internet portal. Grupo Televisa also has an
unconsolidated equity stake in Univision, the leading Spanish-language
television company in the United States.
This press release contains forward-looking statements regarding the
Company's results and prospects. Actual results could differ materially
from these statements. The forward-looking statements in this press release
should be read in conjunction with the factors described in "Item 3. Key
Information - Forward-Looking Statements" in the Company's Annual Report on
Form 20-F, which, among others, could cause actual results to differ
materially from those contained in forward-looking statements made in this
press release and in oral statements made by authorized officers of the
Company. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
(Please see attached tables for financial information and ratings data)
###
CONTACTS:
INVESTOR RELATIONS:
Michel Boyance / Alejandro Eguiluz
Grupo Televisa, S.A.
Av. Vasco de Quiroga No. 2000
Colonia Santa Fe
01210 Mexico, D.F.
(5255) 5261-2000
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2002
(MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2003)
December 31, December 31,
2003 2002
(Unaudited) (Audited)
-------------- -------------
ASSETS
Current:
Available:
Cash Ps. 371.8 Ps. 1,677.3
Temporary investments 11,891.8 7,458.9
-------------- -------------
12,263.6 9,136.2
Trade notes and accounts receivable-net 10,694.7 9,943.9
Other accounts and notes receivable-net 893.2 902.4
Due from affiliated companies-net 350.7 -
Transmission rights, programs,
production talent advances and films 3,535.1 3,556.1
Inventories 513.5 528.9
Other current assets 507.3 447.3
-------------- -------------
Total current assets 28,758.1 24,514.8
Transmission rights, programs, literary works and films 4,670.6 5,029.8
Investments 6,288.5 3,153.7
Property, plant and equipment-net 15,600.7 15,953.3
Goodwill and trademarks-net 8,012.5 8,283.0
Deferred costs-net 1,187.7 1,411.7
Other assets 207.9 372.8
-------------- -------------
Total assets Ps. 64,726.0 Ps. 58,719.1
============== =============
GRUPO TELEVISA, S. A.
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2003 AND 2002
(MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2003)
December 31, December 31,
2003 2002
(Unaudited) (Audited(1))
------------------ -----------------
LIABILITIES
Current:
Current portion of long-term debt Ps. 285.2 Ps. 1,289.2
Trade accounts payable 2,348.6 2,318.0
Customer deposits and advances 13,584.7 12,008.7
Taxes payable 1,287.0 921.6
Accrued interest 315.2 319.7
Other accrued liabilities 1,131.5 849.0
Due to affiliated companies and related
parties-net - 61.0
------------------ -----------------
Total current liabilities 18,952.2 17,767.2
Long-term debt 14,704.2 13,875.9
Customer deposits and advances 419.5 211.8
Other long-term liabilities 708.5 790.7
Deferred taxes 1,140.6 2,116.8
DTH joint ventures 1,294.0 1,710.7
Pension plans and seniority premiums - 73.6
------------------ -----------------
Total liabilities 37,219.0 36,546.7
------------------ -----------------
STOCKHOLDERS' EQUITY
Majority interest:
Capital stock issued 8,207.5 7,916.6
Additional paid-in capital 3,875.4 225.0
------------------ -----------------
12,082.9 8,141.6
------------------ -----------------
Retained earnings:
Legal reserve 1,269.5 1,231.1
Reserve for repurchase of shares 5,285.0 5,762.9
Unappropriated earnings 12,801.2 12,691.0
Gain on issuance of shares of Univision 3,387.5 509.4
Accumulated other comprehensive loss (5,650.4) (5,745.5)
Net income for the year 3,596.6 767.2
------------------ -----------------
20,689.4 15,216.1
------------------ -----------------
Shares repurchased (6,343.9) (2,370.2)
------------------ -----------------
Total majority interest 26,428.4 20,987.5
Minority interest 1,078.6 1,184.9
------------------ -----------------
Total stockholders' equity 27,507.0 22,172.4
------------------ -----------------
Total liabilities and stockholders' equity Ps. 64,726.0 Ps. 58,719.1
================== =================
(1) Certain reclassifications have been made to the 2002 Audited Financial
Statements to conform to classifications used in the 2003 Unaudited
Financial Statements.
GRUPO TELEVISA, S. A.
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2003)
Three months ended December 31, Twelve months ended December 31,
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Audited(1))
-------------- --------------- ---------------- ---------------
Net sales Ps. 7,024.9 Ps. 6,616.1 Ps. 23,563.2 Ps. 22,416.6
Cost of sales 3,819.8 3,678.8 12,889.1 12,911.9
-------------- --------------- ---------------- ---------------
Gross profit 3,205.1 2,937.3 10,674.1 9,504.7
-------------- --------------- ---------------- ---------------
Operating expenses:
Selling 527.5 529.0 1,692.9 1,752.6
Administrative 358.0 367.4 1,410.0 1,409.5
-------------- --------------- ---------------- ---------------
885.5 896.4 3,102.9 3,162.1
-------------- --------------- ---------------- ---------------
EBITDA(2) 2,319.6 2,040.9 7,571.2 6,342.6
Depreciation and amortization 352.8 391.3 1,525.3 1,507.3
-------------- --------------- ---------------- ---------------
Operating income 1,966.8 1,649.6 6,045.9 4,835.3
-------------- --------------- ---------------- ---------------
Integral cost of financing:
Interest expense 381.5 383.6 1,375.7 1,425.7
Interest income (127.1) (133.9) (649.9) (613.1)
Foreign exchange loss - net 46.7 97.5 275.6 607.6
Foreign exchange result - hedged (131.7) (146.7) (469.0) (826.8)
Loss (gain) from monetary position-net 45.2 (75.1) 82.0 44.0
-------------- --------------- ---------------- ---------------
214.6 125.4 614.4 637.4
-------------- --------------- ---------------- ---------------
Restructuring and non-recurring charges 516.9 248.3 657.2 875.3
-------------- --------------- ---------------- ---------------
Other expense-net 323.9 1,522.3 543.3 2,218.9
-------------- --------------- ---------------- ---------------
Income (loss) before taxes 911.4 (246.4) 4,231.0 1,103.7
-------------- --------------- ---------------- ---------------
Income tax and assets tax (58.0) 145.6 700.1 307.0
Employees' profit sharing 1.3 (17.5) 5.5 4.3
-------------- --------------- ---------------- ---------------
(56.7) 128.1 705.6 311.3
-------------- --------------- ---------------- ---------------
Income (loss) before equity in results
of affiliates, discontinued
operations and minority interest 968.1 (374.5) 3,525.4 792.4
Equity in income (losses) of affiliates-net 323.1 (665.5) 14.4 (1,201.8)
(Loss) income from discontinued operations-net (64.2) (39.0) (64.2) 1,105.0
Minority interest 116.3 103.9 121.0 71.6
-------------- --------------- ---------------- ---------------
Net income (loss) Ps. 1,343.3 Ps. (975.1) Ps. 3,596.6 Ps. 767.2
============== =============== ================ ===============
(1) Certain reclassifications have been made to the 2002 Audited Financial
Statements to conform to classifications used in the 2003 Unaudited
Financial Statements.
(2) EBITDA is defined as operating income before depreciation and
amortization.
NATIONAL URBAN RATINGS AND AUDIENCE SHARE FOR 1ST, 2ND, 3RD AND 4TH
QUARTERS OF 2003 (1):
SIGN-ON TO SIGN-OFF -- 6:00 TO 24:00, MONDAY TO SUNDAY
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JAN FEB MAR 1Q03 APR MAY JUN 2Q03 JUL AUG SEP 3Q03 OCT NOV DEC 4Q03 2003
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CHANNEL 2
Rating 11.5 11.3 11.8 11.5 11.4 11.2 11.4 11.3 11.5 11.9 12.2 11.9 12.3 11.7 10.8 11.6 11.6
Share (%) 30.9 30.1 30.6 30.5 30.6 30.9 30.6 30.7 30.6 31.7 32.2 31.5 32.0 30.8 29.8 30.9 30.9
TOTAL TELEVISA(2)
Rating 27.0 26.7 27.5 27.1 26.6 26.1 26.5 26.4 27.1 26.7 27.0 26.9 28.3 27.8 25.8 27.3 26.9
Share (%) 72.6 70.9 71.5 71.7 71.4 72.0 71.5 71.6 71.8 71.1 71.3 71.4 73.3 73.1 71.1 72.5 71.8
-----------------------------------------------------------------------------------------------------------
PRIME TIME - 16:00 TO 23:00, MONDAY TO SUNDAY (3)
-----------------------------------------------------------------------------------------------------------
JAN FEB MAR 1Q03 APR MAY JUN 2Q03 JUL AUG SEP 3Q03 OCT NOV DEC 4Q03 2003
-----------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 18.1 17.7 17.9 17.9 17.6 17.3 18.0 17.7 17.9 18.51 8.5 18.3 18.21 6.9 15.4 16.8 17.7
Share (%) 32.7 32.0 32.1 32.2 32.9 33.1 33.2 33.1 33.1 34.43 4.0 33.8 33.03 0.6 29.3 31.0 32.5
TOTAL TELEVISA(2)
Rating 39.9 38.8 38.7 39.2 37.3 36.6 37.6 37.2 38.2 37.63 7.9 37.9 39.93 8.7 35.7 38.1 38.1
Share (%) 72.0 69.9 69.6 70.5 69.8 69.9 69.2 69.6 70.4 69.76 9.8 70.0 72.27 0.3 68.1 70.2 70.1
-----------------------------------------------------------------------------------------------------------
WEEKDAY PRIME TIME--19:00 TO 23:00, MONDAY TO FRIDAY (3)
-----------------------------------------------------------------------------------------------------------
JAN FEB MAR 1Q03 APR MAY JUN 2Q03 JUL AUG SEP 3Q03 OCT NOV DEC 4Q03 2003
-----------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 22.0 23.0 24.2 23.1 24.0 23.6 24.3 24.0 22.8 24.7 23.8 23.7 23.2 19.6 18.9 20.6 22.8
Share (%) 34.6 35.7 37.6 36.0 39.4 39.6 38.8 39.3 36.9 39.5 37.9 38.1 36.0 30.7 31.7 32.8 36.5
TOTAL TELEVISA(2)
Rating 47.2 46.6 46.2 46.7 44.7 43.4 44.9 44.3 44.0 44.8 44.8 44.5 47.8 45.0 40.7 44.5 45.0
Share (%) 74.4 72.2 71.8 72.8 73.4 72.8 71.7 72.6 71.3 71.7 71.4 71.5 74.4 70.7 68.0 71.0 72.0
-----------------------------------------------------------------------------------------------------------
NOTES:
1) National urban ratings and audience share are certified by IBOPE and
are based upon IBOPE's national surveys, which are calculated, seven
days a week, in Mexico City, Guadalajara, Monterrey and 25 other
cities with a population of over 400,000 people. "Ratings" for a
period refers to the number of television sets tuned into the
Company's programs as a percentage of the total number of all
television households. "Audience share" is the number of television
sets tuned into the Company's programs as a percentage of the number
of households watching conventional over-the-air television during
that period, without regard to the number of viewers.
2) "Total Televisa" includes the Company's four networks as well as all
local affiliates (including affiliates of Channel 4, most of which
receive only a portion of their daily programming from Channel 4).
Programming on affiliates of Channel 4 is generally broadcast in 12 of
the 28 cities that are covered by national surveys. Programming on
Channel 9 affiliates is broadcast in all of the cities that are
covered by national surveys.
3) "Televisa Prime Time" is the time during which the Company generally
charges its highest rates for its networks.