Highlights

Ø	Solid full year growth in Consolidated Net Sales of 9.9% with an operating segment income margin of 39.6%

Ø	Sky revenues reached Ps.19.3 billion surpassing 7.2 million subscribers

Ø	Strong revenue and operating segment income growth in our Telecommunications segment of 36.1% and 44.7%, respectively

Ø	Strong growth in Network Subscription Revenue of 26.0% and in Licensing and Syndication Revenue of 17.7%

Consolidated Results

Mexico City, D.F., February 25, 2016—Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “Televisa” or “the Company”), today announced results for full year and fourth quarter 2015. The results have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

The following table sets forth condensed consolidated statements of income for the years ended December 31, 2015 and 2014, in millions of Mexican pesos, as well as the percentage that each line represents of net sales and the percentage change when comparing 2015 with 2014:

⁽¹⁾ The operating segment income margin is calculated as a percentage of segment net sales.

Net sales increased by 9.9% to Ps.88,051.8 million in 2015 compared with Ps.80,118.4 million in 2014. This increase was attributable to strong growth in our Sky and Telecommunications segments. Operating segment income increased 10.6%, reaching Ps.35,695.3 million with a margin of 39.6%.

Net income attributable to stockholders of the Company amounted to Ps.10,899.1 million for the year ended December 31, 2015, compared with a net income of Ps.5,386.9 million for the year ended December 31, 2014. The net increase of Ps.5,512.2 million reflected (i) a Ps.4,953.2 million decrease in other expense, net; and (ii) a Ps.4,206.0 million decrease in finance expense, net. These favorable variances were primarily offset by a Ps.3,351.3 million increase in income taxes.

 

Full Year Results by Business Segment

The following table presents full year consolidated results ended December 31, 2015 and 2014, for each of our business segments. Full year consolidated results for 2015 and 2014 are presented in millions of Mexican pesos.

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 expense, net.

 

 

Corporate Expense

Corporate expense increased by Ps.482.3 million, or 32.6%, to Ps.1,960.8 million in 2015, from Ps.1,478.5 million in 2014. The increase reflected primarily a higher share-based compensation expense.

Share-based compensation expense in 2015 and 2014 amounted to Ps.1,199.5 million and Ps.844.8 million, respectively, and was accounted for as corporate expense. Share-based compensation expense is measured at fair value at the time the equity benefits are conditionally sold to officers and employees, and is recognized over the vesting period. The increase of Ps.354.7 million reflected primarily a higher number of our CPOs conditionally sold to officers and employees in our Telecommunications segment.

 

Other Expense, Net

Other expense, net, decreased by Ps.4,953.2 million to Ps.328.5 million in 2015, from Ps.5,281.7 million in 2014. This decrease reflected primarily the absence of a one-time non-cash loss of Ps.4,168.5 million on disposition of our former 50% joint venture in the Iusacell telecom business in the third quarter of 2014, as well as a non-recurring cash income of US$67.6 million (Ps.1,038.3 million) as a result of the early termination of a technical assistance agreement with Univision in the first quarter of 2015. These favorable effects were partially offset by a higher expense related to financial advisory and professional services, a non-recurrent severance expense in connection with dismissals of personnel in our Content, Telecommunications and Other Businesses segments, and a higher loss on disposition of property and equipment.

Non-operating Results

Finance Expense, Net

The following table sets forth the finance (expense) income, net, stated in millions of Mexican pesos for the years ended December 31, 2015 and 2014.

Finance expense, net, decreased by Ps.4,206.0 million to Ps.122.9 million in 2015 from Ps.4,328.9 million in 2014. This decrease reflected a Ps.6,228.6 million increase in other finance income, net, resulting  primarily from (i) our exchange in July 2015 of Convertible Debentures issued by Univision Holdings, Inc. or “UHI” (formerly, Broadcasting Media Partners, Inc.), the controlling company of Univision, for Warrants that are exercisable for UHI’s common stock, which included, as a consideration for such exchange, a cash amount of US$135.1 million (Ps.2,195 million) received from UHI; and (ii) a Ps.4,718.2 million reclassification from accumulated other comprehensive income in consolidated equity in connection with a cumulative gain related to changes in fair value of such Convertible Debentures, which effect was partially offset by the absence of a favorable change in fair value in 2014 resulting of an embedded derivative related to our former option of converting such Debentures into an equity stake of UHI. This favorable variance in other finance income net, was partially offset by (i) a Ps.687.9 million increase in interest expense, due primarily to a higher average principal amount of debt and finance lease obligations in 2015; (ii) a Ps.299.9 million decrease in interest income explained primarily by the absence of interest income from our former investments in Convertible Debentures issued by UHI as these securities were exchanged in July 2015 for Warrants that are exercisable for UHI’s common stock, and convertible debt instruments issued by Tenedora Ares, S.A.P.I. de C.V. as these securities were converted in August 2014 in connection with the acquisition of Cablecom, as well as a reduction in applicable interest rates on cash, cash equivalents and temporary investments; and (iii) a Ps.1,034.8 million increase in foreign exchange loss resulting primarily from the effect of a 16.6% depreciation of the Mexican peso against the U.S. dollar on our average net unhedged U.S. dollar liability position in 2015 compared with a 12.9% depreciation and a lower U.S. dollar liability position in 2014.

 

Share of Income of Associates and Joint Ventures, Net

Share of income of associates and joint ventures, net, increased by Ps.22.2 million to Ps.35.4 million in 2015 from Ps.13.2 million in 2014. This increase reflected mainly (i) our share in the income of Imagina, a communications company in Spain; and (ii) the absence of share of loss of our former Iusacell telecom business, as we disposed of this 50% joint venture in September 2014. These favorable effects were partially offset by a higher share of loss of UHI, the controlling company of Univision.

Income Taxes

Income taxes increased by Ps.3,351.3 million to Ps.6,332.2 million in 2015 compared with Ps.2,980.9 million in 2014. This increase reflected primarily a higher tax base.

Net Income Attributable to Non-controlling Interests

Net income attributable to non-controlling interests increased by Ps.153.4 million, or 12.1%, to Ps.1,426.3 million in 2015, compared with Ps.1,272.9 million in 2014. This increase reflected primarily a higher portion of net income attributable to non-controlling interests in our Sky and Telecommunications segments.

Other Relevant Information

Capital Expenditures

During 2015, we invested approximately US$1,605.4 million in property, plant and equipment as capital expenditures. These capital expenditures included approximately US$1,077.2 million for our Telecommunications segment, US$361.6 million for our Sky segment, and US$166.6 million for our Content and Other Businesses segments.

Debt and Finance Lease Obligations

The following table sets forth our total debt and finance lease obligations as of December 31, 2015 and 2014. Amounts are stated in millions of Mexican pesos.

¹ As of December 31, 2015 and 2014, total debt is presented net of finance costs in the amount of Ps.1,387.9 million and Ps.1,268.8 million, respectively, and does not include related accrued interest payable in the amount of Ps.1,184.2 million and Ps.974.9 million, respectively.

 

As of December 31, 2015, our consolidated net debt position (total debt less cash and cash equivalents, temporary investments, and noncurrent held-to-maturity and available-for-sale investments) was Ps.49,675.8 million. The aggregate amount of noncurrent held-to-maturity and available-for-sale investments as of December 31, 2015, amounted to Ps.6,007.2 million.

In November 2015, we issued U.S.$300 million aggregate principal amount of 4.625% Senior Notes due 2026 and U.S.$900 million aggregate principal amount of 6.125% Senior Notes due 2046 registered with the U.S. Securities and Exchange Commission.

Shares Outstanding

As of December 31, 2015 and 2014, our shares outstanding amounted to 338,468.4 million and 338,056.2 million shares, respectively, and our CPO equivalents outstanding amounted to 2,892.9 million and 2,889.4 million CPO equivalents, respectively. Not all of our shares are in the form of CPOs. The number of CPO equivalents is calculated by dividing the number of shares outstanding by 117.

As of December 31, 2015 and 2014, the GDS (Global Depositary Shares) equivalents outstanding amounted to 578.6 million and 577.9 million GDS equivalents, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.

About Televisa

Televisa is the largest media company in the Spanish-speaking world based on its market capitalization and a major participant in the international entertainment business. It operates four broadcast channels in Mexico City, produces and distributes 26 pay-TV brands for distribution in Mexico and the rest of the world, and exports its programs and formats to the U.S. through Univision Communications Inc. (“Univision”) and to other television networks in over 50 countries. Televisa is also an active participant in Mexico’s telecommunications industry. It has a majority interest in Sky, a leading direct-to-home satellite television system operating in Mexico, the Dominican Republic and Central America. Televisa also participates in Mexico’s telecommunications industry in many regions of the country where it offers video, voice and broadband services. Televisa also has interests in magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, the operation of a horizontal Internet portal and gaming. In the United States, Televisa has equity and warrants which upon its exercise and subject to any necessary approval from the Federal Communications Commission (“FCC”) in the United States, would represent approximately 36% on a fully diluted, as-converted basis of the equity capital in Univision Holdings Inc. (f/k/a Broadcasting Media Partners, Inc.), the controlling company of Univision, the leading media company serving the United States Hispanic market.

Disclaimer

This press release contains forward-looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in this press release should be read in conjunction with the factors described in “Item 3. Key Information – Forward-Looking Statements” in the Company’s Annual Report on Form 20-F, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this press release and in oral statements made by authorized officers of the Company. 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 data)

###

Investor Relations:

Carlos Madrazo / Tel: (52 55) 5261 2445 / cmadrazov@televisa.com.mx

Eduardo Nestel / Tel: (52 55) 5261 2438 / enestel@televisa.com.mx

Media Relations:

Alejandro Olmos / Tel: (52 55) 4438 1205 / aolmosc@televisa.com.mx

Regina Moctezuma / Tel: (52 55) 5224 5456 / rmoctezumag@televisa.com.mx

www.televisair.com

GRUPO TELEVISA, S.A.B.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2015 AND 2014

(Millions of Mexican Pesos)

 

GRUPO TELEVISA, S.A.B.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2015 AND 2014

(Millions of Mexican Pesos)

 

 

		December 31,				December 31,
		2015				2014
LIABILITIES		(Unaudited)				(Audited)
Current liabilities:
Current portion of long-term debt and interest payable		Ps.	4,164.0			Ps.	1,312.0
Current portion of finance lease obligations			511.6				502.2
Trade accounts payable and accrued expenses			17,361.5				17,142.1
Customer deposits and advances			20,470.4				20,150.7
Income taxes payable			1,632.8				1,389.3
Other taxes payable			1,246.0				1,108.4
Employee benefits			1,034.5				1,005.2
Due to related parties			443.0				8.6
Derivative financial instruments			1.4				-
Other current liabilities			2,112.8				1,751.6
Total current liabilities			48,978.0				44,370.1
Non-current liabilities:
Long-term debt, net of current portion			107,430.8				80,660.5
Finance lease obligations, net of current portion			5,293.6				4,807.4
Derivative financial instruments			225.7				335.1
Customer deposits and advances			514.5				284.0
Income taxes payable			6,338.1				6,628.1
Deferred income tax liabilities			10,000.0				7,763.0
Post-employment benefits			407.2				287.2
Other long-term liabilities			2,764.1				2,501.4
Total non-current liabilities			132,974.0				103,266.7
Total liabilities			181,952.0				147,636.8
EQUITY
Capital stock			4,978.1				4,978.1
Additional paid-in-capital			15,889.8				15,889.8
			20,867.9				20,867.9
Retained earnings:
Legal reserve			2,139.0				2,139.0
Unappropriated earnings			60,101.5				55,379.5
Net income for the year			10,899.1				5,386.9
			73,139.6				62,905.4
Accumulated other comprehensive income, net			5,257.6				5,679.1
Shares repurchased			(11,882.2	)			(12,647.4	)
			66,515.0				55,937.1
Equity attributable to stockholders of the Company			87,382.9				76,805.0
Non-controlling interests			12,138.8				11,110.1
Total equity			99,521.7				87,915.1
Total liabilities and equity		Ps.	281,473.7			Ps.	235,551.9

 

 

 

GRUPO TELEVISA, S.A.B.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND

TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(Millions of Mexican Pesos)

 

Fourth Quarter Results by Business Segment

The following table presents fourth quarter consolidated results ended December 31, 2015 and 2014, for each of our business segments. Fourth Quarter consolidated results for 2015 and 2014 are presented in millions of Mexican pesos.

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 expense, net.