UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2004
GRUPO TELEVISA, S.A.
-------------------------------------------------
(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F.
---------------------------------------------------------------------
(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
------- -------
(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
----- -----
(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENT
AT JUNE 30 OF 2004 AND 2003
(Thousands of Pesos)
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
-------------------------------------------------------------
S Amount % Amount %
----------------------------------------------------------------------------------------------------------------------------------
1 TOTAL ASSETS 61,376,162 100 55,181,033 100
2 CURRENT ASSETS 21,294,031 35 20,429,176 37
3 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 11,764,519 19 10,471,695 19
4 OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE 4,114,329 7 4,643,770 8
5 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 969,949 2 685,368 1
6 INVENTORIES 3,714,792 6 4,192,531 8
7 OTHER CURRENT ASSETS 730,442 1 435,812 1
8 LONG-TERM 6,878,447 11 3,436,423 6
9 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 0 0 0 0
10 INVESTMENT IN SHARES OF SUBSIDIARIES
AND NON-CONSOLIDATED 6,553,634 11 3,278,410 6
11 OTHER INVESTMENTS 324,813 1 158,013 0
12 PROPERTY, PLANT AND EQUIPMENT 18,512,632 30 15,998,454 29
13 PROPERTY 12,493,278 20 12,155,572 22
14 MACHINERY AND INDUSTRIAL 14,531,815 24 10,433,826 19
15 OTHER EQUIPMENT 2,878,685 5 2,417,581 4
16 ACCUMULATED DEPRECIATION 12,134,438 20 10,318,362 19
17 CONSTRUCTION IN PROGRESS 743,292 1 1,309,837 2
18 DEFERRED ASSETS (NET) 9,495,306 15 9,458,693 17
19 OTHER ASSETS 5,195,746 8 5,858,287 11
20 TOTAL LIABILITIES 37,112,600 100 31,928,619 100
21 CURRENT LIABILITIES 5,157,149 14 4,594,032 14
22 SUPPLIERS 2,184,194 6 1,974,116 6
23 BANK LOANS 162,965 0 294,723 1
24 STOCK MARKET LOANS 0 0 0 0
25 TAXES TO BE PAID 735,055 2 455,651 1
26 OTHER CURRENT LIABILITIES 2,074,935 6 1,869,542 6
27 LONG-TERM LIABILITIES 21,579,641 58 15,857,602 50
28 BANK LOANS 2,026,823 5 2,142,711 7
29 STOCK MARKET LOANS 17,472,654 47 12,481,529 39
30 OTHER LOANS 2,080,164 6 1,233,362 4
31 DEFERRED LOANS 9,995,377 27 9,685,060 30
32 OTHER LIABILITIES 380,433 1 1,791,925 6
33 CONSOLIDATED STOCK HOLDERS' EQUITY 24,263,562 100 23,252,414 100
34 MINORITY INTEREST (239,481) (1) 1,216,776 5
35 MAJORITY INTEREST 24,503,043 101 22,035,638 95
36 CONTRIBUTED CAPITAL 13,184,715 54 8,244,913 35
37 PAID-IN CAPITAL STOCK (NOMINAL) 2,524,174 10 1,555,065 7
38 RESTATEMENT OF PAID-IN CAPITAL STOCK 6,722,068 28 6,461,151 28
39 PREMIUM ON SALES OF SHARES 3,938,473 16 228,697 1
40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0
41 CAPITAL INCREASE (DECREASE) 11,318,328 47 13,790,725 59
42 RETAINED EARNINGS AND CAPITAL RESERVE 6,647,738 27 11,911,905 51
43 REPURCHASE FUNDS OF SHARES 5,370,967 22 5,573,984 24
44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK-
HOLDERS' EQUITY (1,634,260) (7) (5,276,509) (23)
45 NET INCOME FOR THE YEAR 933,883 4 1,581,345 7
-------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
---------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
S Amount % Amount %
---------------------------------------------------------------------------------------------------------------------------------
3 CASH AND SHORT-TERM INVESTMENTS 11,764,519 100 10,471,695 100
46 CASH 567,365 5 295,909 3
47 SHORT-TERM INVESTMENTS 11,197,154 95 10,175,786 97
18 DEFERRED ASSETS (NET) 9,495,306 100 9,458,693 100
48 AMORTIZED OR REDEEMED EXPENSES 1,685,221 18 1,689,475 18
49 GOODWILL 7,810,085 82 7,769,218 82
50 DEFERRED TAXES 0 0 0 0
51 OTHERS 0 0 0 0
21 CURRENT LIABILITIES 5,157,149 100 4,594,032 100
52 FOREIGN CURRENCY LIABILITIES 2,421,477 47 2,037,215 44
53 MEXICAN PESOS LIABILITIES 2,735,672 53 2,556,817 56
24 STOCK MARKET LOANS 0 100 0 100
54 COMMERCIAL PAPER 0 0 0 0
55 CURRENT MATURITIES OF MEDIUM TERM NOTES 0 0 0 0
56 CURRENT MATURITIES OF BONDS 0 0 0 0
26 OTHER CURRENT LIABILITIES 2,074,935 100 1,869,542 100
57 OTHER CURRENT LIABILITIES WITH COST 69,134 3 0 0
58 OTHER CURRENT LIABILITIES WITHOUT COST 2,005,801 97 1,869,542 100
27 LONG-TERM LIABILITIES 21,579,641 100 15,857,602 100
59 FOREIGN CURRENCY LIABILITIES 15,869,743 74 11,054,417 70
60 MEXICAN PESOS LIABILITIES 5,709,898 26 4,803,185 30
29 STOCK MARKET LOANS 17,472,654 100 12,481,529 100
61 BONDS 17,472,654 100 12,481,529 100
62 MEDIUM TERM NOTES 0 0 0 0
30 OTHER LOANS 2,080,164 100 1,233,362 100
63 OTHER LOANS WITH COST 1,408,363 68 0 0
64 OTHER LOANS WITHOUT COST 671,801 32 1,233,362 100
31 DEFERRED LOANS 9,995,377 100 9,685,060 100
65 NEGATIVE GOODWILL 0 0 0 0
66 DEFERRED TAXES 780,837 8 1,078,858 11
67 OTHERS 9,214,540 92 8,606,202 89
32 OTHER LIABILITIES 380,433 100 1,791,925 100
68 RESERVES 0 0 115,007 6
69 OTHERS LIABILITIES 380,433 100 1,676,918 94
44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK- (1,634,260) 100 (5,276,509) 100
HOLDERS' EQUITY
70 ACCUMULATED INCOME DUE TO MONETARY POSITION (30,471) (2) (30,471) (1)
71 INCOME FROM NON-MONETARY POSITION ASSETS (1,603,789) (98) (5,246,038) (99)
---------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENT
OTHER CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
--------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
S Amount Amount
--------------------------------------------------------------------------------------------------------------------------------
72 WORKING CAPITAL 16,136,882 15,835,144
73 PENSIONS FUND AND SENIORITY PREMIUMS 984,816 835,347
74 EXECUTIVES (*) 35 36
75 EMPLOYEES (*) 14,070 12,350
76 WORKERS (*) 0 0
77 CIRCULATION SHARES (*) 8,789,447,309 8,783,804,425
78 REPURCHASED SHARES (*) 679,100,650 316,106,980
--------------------------------------------------------------------------------------------------------------------------------
(*) THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
FROM JANUARY 1 TO JUNE 30, 2004 AND 2003
(Thousands of Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
R Amount % Amount %
-----------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 12,690,477 100 10,996,281 100
2 COST OF SALES 7,363,352 58 6,574,059 60
3 GROSS INCOME 5,327,125 42 4,422,222 40
4 OPERATING 1,944,836 15 1,760,005 16
5 OPERATING INCOME 3,382,289 27 2,662,217 24
6 TOTAL FINANCING COST 518,150 4 368,988 3
7 INCOME AFTER FINANCING COST 2,864,139 23 2,293,229 21
8 OTHER FINANCIAL OPERATIONS 472,059 4 112,835 1
9 INCOME BEFORE TAXES AND WORKERS' PROFIT
SHARING 2,392,080 19 2,180,394 20
10 RESERVE FOR TAXES AND WORKERS' PROFIT
SHARING 622,540 5 613,726 6
11 NET INCOME AFTER TAXES AND WORKERS' PROFIT
SHARING 1,769,540 14 1,566,668 14
12 SHARE IN NET INCOME OF SUBSIDIARIES AND
NON-CONSOLIDATED ASSOCIATES 148,030 1 6,824 0
13 CONSOLIDATED NET INCOME OF CONTINUOUS
OPERATIONS 1,917,570 15 1,573,492 14
14 INCOME OF DISCONTINUOUS OPERATIONS 0 0 0 0
15 CONSOLIDATED NET INCOME BEFORE
EXTRAORDINARY ITEMS 1,917,570 15 1,573,492 14
16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0 0 0
17 NET EFFECT AT THE BEGINNING OF THE YEAR OF
CHANGES IN ACCOUNTING PRINCIPLES 991,953 8 0 0
18 NET CONSOLIDATED INCOME 925,617 7 1,573,492 14
19 NET INCOME OF MINORITY INTEREST (8,266) 0 (7,853) 0
20 NET INCOME OF MAJORITY INTEREST 933,883 7 1,581,345 14
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
R Amount % Amount %
-----------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 12,690,477 100 10,996,281 100
21 DOMESTIC 10,384,360 82 9,095,737 83
22 FOREIGN 2,306,117 18 1,900,544 17
23 TRANSLATED INTO DOLLARS (***) 199,889 2 174,462 2
6 TOTAL FINANCING COST 518,150 100 368,988 100
24 INTEREST PAID 734,467 142 627,039 170
25 EXCHANGE LOSSES 0 0 7,973 2
26 INTEREST EARNED 320,107 62 370,358 100
27 EXCHANGE PROFITS 64,167 12 0
28 GAIN DUE TO MONETARY POSITION 133,721 26 52,073 14
42 LOSS ON RESTATEMENT OF UDI'S 34,236 7 52,261 14
43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0
8 OTHER FINANCIAL OPERATIONS 472,059 100 112,835 100
29 OTHER NET EXPENSES (INCOME) NET 472,059 100 112,835 100
30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0 0 0
31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 622,540 100 613,726 100
32 INCOME TAX 608,313 98 845,174 138
33 DEFERRED INCOME TAX 11,462 2 (234,664) (38)
34 WORKERS' PROFIT SHARING 2,765 0 3,216 1
35 DEFERRED WORKERS' PROFIT SHARING 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
-------------------------------------------------
R Amount Amount
------------------------------------------------------------------------------------------------------------------------
36 TOTAL SALES 13,637,824 11,949,718
37 NET INCOME OF THE YEAR 0 1,123,496
38 NET SALES (**) 25,640,806 23,342,992
39 OPERATION INCOME (**) 6,864,382 5,582,184
40 NET INCOME OF MAJORITY INTEREST (**) 3,007,661 996,821
41 NET CONSOLIDATED INCOME (**) 2,884,228 902,872
------------------------------------------------------------------------------------------------------------------------
(**) THE RESTATED INFORMATION FOR THE LAST TWELVE MONTHS SHOULD BE USED
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
FROM APRIL 1 TO JUNE 30, 2004 AND 2003
(Thousands of Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
R Amount % Amount %
-----------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 7,456,564 100 5,977,904 100
2 COST OF SALES 4,135,219 55 3,376,143 56
3 GROSS INCOME 3,321,345 45 2,601,761 44
4 OPERATING 1,100,060 15 906,263 15
5 OPERATING INCOME 2,221,285 30 1,695,498 28
6 TOTAL FINANCING COST 148,637 2 179,914 3
7 INCOME AFTER FINANCING COST 2,072,648 28 1,515,584 25
8 OTHER FINANCIAL OPERATIONS 248,981 3 (102,832) (2)
9 INCOME BEFORE TAXES AND WORKERS' PROFIT
SHARING 1,823,667 24 1,618,416 27
10 RESERVE FOR TAXES AND WORKERS' PROFIT
SHARING 462,683 6 420,911 7
11 NET INCOME AFTER TAXES AND WORKERS' PROFIT
SHARING 1,360,984 18 1,197,505 20
12 SHARE IN NET INCOME OF SUBSIDIARIES AND
NON-CONSOLIDATED ASSOCIATES 103,522 1 135,227 2
13 CONSOLIDATED NET INCOME OF CONTINUOUS
OPERATIONS 1,464,506 20 1,332,732 22
14 INCOME OF DISCONTINUOUS OPERATIONS 0 0 0 0
15 CONSOLIDATED NET INCOME BEFORE
EXTRAORDINARY ITEMS 1,464,506 20 1,332,732 22
16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0 0 0
17 NET EFFECT AT THE BEGINNING OF THE YEAR BY
CHANGES IN ACCOUNTING PRINCIPLES 991,953 13 0 0
18 NET CONSOLIDATED INCOME 472,553 6 1,332,732 22
19 NET INCOME OF MINORITY INTEREST 10,993 0 12,202 0
20 NET INCOME OF MAJORITY INTEREST 461,560 6 1,320,530 22
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
---------------------------------------------------------
R Amount % Amount %
-----------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 7,456,564 100 5,977,904 100
21 DOMESTIC 6,214,776 83 5,001,375 84
22 FOREIGN 1,241,788 17 976,529 16
23 TRANSLATED INTO DOLLARS (***) 104,695 1 99,983 2
6 TOTAL FINANCING COST 148,637 100 179,914 100
24 INTEREST PAID 439,658 296 306,044 170
25 EXCHANGE LOSSES 0 0 103,228 57
26 INTEREST EARNED 168,425 113 196,930 109
27 EXCHANGE PROFITS 71,531 48 0 0
28 GAIN DUE TO MONETARY POSITION (25,108) (17) (42,454) (24)
42 LOSS ON RESTATEMENT OF UDI'S 0 10,026 6
43 GAIN ON RESTATEMENT OF UDI'S 25,957 17 0 0
8 OTHER FINANCIAL OPERATIONS 248,991 100 (102,832) 100
29 OTHER NET EXPENSES (INCOME) NET 248,991 100 (102,832) 100
30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0 0 0
31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 462,683 100 420,911 100
32 INCOME TAX 413,110 89 381,587 91
33 DEFERRED INCOME TAX 47,509 10 37,850 9
34 WORKERS' PROFIT SHARING 2,064 0 1,474 0
35 DEFERRED WORKERS' PROFIT SHARING 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 TO JUNE 30, 2004 AND 2003
(Thousands of Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
C Amount Amount
-----------------------------------------------------------------------------------------------------------------------------------
1 CONSOLIDATED NET INCOME 925,617 1,573,492
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT
REQUIRE USING CASH (1,601,854) 444,996
3 CASH FLOW FROM NET INCOME OF THE YEAR (676,237) 2,018,488
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL 1,509,158 407,253
5 CASH GENERATED (USED) IN OPERATING ACTIVITIES 832,921 2,425,741
6 CASH FLOW FROM EXTERNAL FINANCING 6,220,261 (475,046)
7 CASH FLOW FROM INTERNAL FINANCING (3,954,614) (919,630)
8 CASH FLOW GENERATED (USED) BY FINANCING 2,265,647 (1,394,676)
9 CASH FLOW GENERATED (USED) IN INVESTMENT
ACTIVITIES (3,797,117) 155,760
10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
INVESTMENTS (698,549) 1,186,825
11 CASH AND SHORT-TERM INVESTMENTS AT THE
BEGINNING OF PERIOD 12,463,068 9,284,870
12 CASH AND SHORT-TERM INVESTMENTS AT THE END
OF PERIOD 11,764,519 10,471,695
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------------------------------------------------
C Amount Amount
-----------------------------------------------------------------------------------------------------------------------------------
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT
REQUIRE USING CASH (1,601,854) 444,996
13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 877,838 781,727
14 + (-) NET INCREASE (DECREASE) IN PENSIONS FUND
AND SENIORITY PREMIUMS 0 0
15 + (-) NET LOSS (PROFIT) IN MONEY EXCHANGE 0 0
16 + (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES
ACTUALIZATION 0 0
17 + (-) OTHER ITEMS 0 0
40 + (-) OTHER NON-EBITDA ITEMS (2,479,692) (336,731)
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL 1,509,158 407,253
18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 6,802,153 5,396,884
19 + (-) DECREASE (INCREASE) IN INVENTORIES 398,769 (397,488)
20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNT
RECEIVABLE (276,154) 250,416
21 + (-) INCREASE (DECREASE) IN SUPPLIER ACCOUNTS (397,303) (381,559)
22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES (5,018,307) (4,461,000)
6 CASH FLOW FROM EXTERNAL FINANCING 6,220,261 (475,046)
23 + SHORT-TERM BANK AND STOCK MARKET FINANCING 0 0
24 + LONG-TERM BANK AND STOCK MARKET FINANCING 457,593 696,360
25 + DIVIDEND RECEIVED 0 0
26 + OTHER FINANCING 5,884,896 0
27 (-) BANK FINANCING AMORTIZATION (122,228) (240,057)
28 (-) STOCK MARKET AMORTIZATION 0 (751,869)
29 (-) OTHER FINANCING AMORTIZATION 0 (179,480)
7 CASH FLOW FROM INTERNAL FINANCING (3,954,614) (919,630)
30 + (-) INCREASE (DECREASE) IN CAPITAL STOCKS 797,173 (338,455)
31 (-) DIVIDENDS PAID (4,751,787) (581,175)
32 + PREMIUM ON SALE OF SHARES 0 0
33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0
9 CASH FLOW GENERATED (UTILIZED) IN INVESTMENT
ACTIVITIES (3,797,117) 155,760
34 + (-) DECREASE (INCREASE) IN STOCK INVESTMENTS
OF A PERMANENT NATURE (375,246) 52,948
35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (691,256) (466,835)
36 (-) INCREASE IN CONSTRUCTIONS IN PROGRESS 0 0
37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0
38 + SALE OF TANGIBLE FIXED ASSETS 68,818 105,742
39 + (-) OTHER ITEMS (2,799,433) 463,905
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
RATIOS
CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
P
-----------------------------------------------------------------------------------------------------------------------------------
YIELD
1 NET INCOME TO NET SALES 7.29 % 14.31 %
2 NET INCOME TO STOCKHOLDERS' EQUITY (**) 12.27 % 4.52 %
3 NET INCOME TO TOTAL ASSETS (**) 4.70 % 1.64 %
4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00 % 0.00 %
5 INCOME DUE TO MONETARY POSITION TO NET INCOME (14.45) % (3.31) %
ACTIVITY
6 NET SALES TO NET ASSETS (**) 0.42 times 0.42 times
7 NET SALES TO FIXED ASSETS (**) 1.39 times 1.46 times
8 INVENTORIES ROTATION (**) 4.06 times 3.36 times
9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 51 days 66 days
10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 6.94 % 8.55 %
LEVERAGE
11 TOTAL LIABILITIES TO TOTAL ASSETS 60.47 % 57.86 %
12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.53 times 1.37 times
13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 49.29 % 41.00 %
14 LONG-TERM LIABILITIES TO FIXED ASSETS 116.57 % 99.12 %
15 OPERATING INCOME TO INTEREST PAID 4.61 times 4.25 times
16 NET SALES TO TOTAL LIABILITIES (**) 0.69 times 0.73 times
LIQUIDITY
17 CURRENT ASSETS TO CURRENT LIABILITIES 4.13 times 4.45 times
18 CURRENT ASSETS LESS INVENTORY TO CURRENT
LIABILITIES 3.41 times 3.53 times
19 CURRENT ASSETS TO TOTAL LIABILITIES 0.57 times 0.64 times
20 AVAILABLE ASSETS TO CURRENT LIABILITIES 228.12 % 227.94 %
CASH FLOW
21 CASH FLOW FROM NET INCOME TO NET SALES (5.33) % 18.36 %
22 CASH FLOW FROM CHANGES IN WORKING CAPITAL
TO NET SALES 11.89 % 3.70 %
23 CASH GENERATED (USED) IN OPERATING TO
INTEREST PAID 1.13 times 3.87 times
24 EXTERNAL FINANCING TO CASH GENERATED (USED)
IN FINANCING 274.55 % 34.06 %
25 INTERNAL FINANCING TO CASH GENERATED (USED)
IN FINANCING (174.55) % 65.94 %
26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
TO CASH GENERATED (USED) IN INVESTMENT
ACTIVITIES 18.20 % (299.71) %
-----------------------------------------------------------------------------------------------------------------------------------
(**) THESE RATIOS TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
DATA PER SHARE
CONSOLIDATED FINANCIAL STATEMENT
FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------------
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
-------------------------------------------------------------
D AMOUNT AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
1 BASIC PROFIT PER ORDINARY SHARE (**) $ .34 $ .11
2 BASIC PROFIT PER PREFERRED SHARE (**) $ .34 $ .11
3 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00
4 CONTINUOUS OPERATING PROFIT PER COMMON
SHARE (**) $ .45 $ .11
5 EFFECT OF DISCONTINUOUS OPERATING ON
CONTINUOUS OPERATING PROFIT PER SHARE (**) $ (.01) $ .00
6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON
CONTINUOUS OPERATING PROFIT PER SHARE (**) $ .00 $ .00
7 EFFECT OF CHANGES IN ACCOUNTING POLICIES ON
CONTINUOUS OPERATING PROFIT PER SHARE (**) $ (.15) $ .00
8 CARRYING VALUE PER SHARE $ 2.79 $ 2.51
9 CASH DIVIDEND ACUMULATED PER SHARE $ .41 $ .00
10 DIVIDEND IN SHARES PER SHARE .10 shares .00 shares
11 MARKET PRICE TO CARRYING VALUE 3.09 times 2.40 times
12 MARKET PRICE TO BASIC PROFIT PER ORDINARY
SHARE (**) 25.39 times 53.03 times
13 MARKET PRICE TO BASIC PROFIT PER PREFERRED
SHARE (**) 25.18 times 52.53 times
------------------------------------------------------------------------------------------------------------------------------------
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
FINANCIAL STATEMENT NOTES (1)
CONSOLIDATED
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED FINANCIAL STATEMENTS - BREAKDOWN OF MAIN CONCEPTS -
S 53 MEXICAN PESOS LIABILITIES. THIS CAPTION INCLUDES, IN THE SECOND QUARTER OF 2004, LIABILITIES
IN FOREIGN CURRENCY (TAXES PAYABLE) FOR AN AMOUNT OF PS.55,332, WHICH CANNOT BE PRESENTED
IN S 52 (FOREIGN CURRENCY LIABILITIES) SINCE THE SYSTEM DOES NOT ALLOW A RELATED VALIDATION
WITH ANNEX 5 (ANALYSIS OF CREDITS).
(1) THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT AMOUNTS, INCLUDING THEIR
BREAKDOWN OF MAIN CONCEPTS AND OTHER CONCEPTS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED
FINAL PRINTING
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK
NUMBER OF SHARES (Thousands of Pesos)
------------------------------------------------------------------------------------------
NOMINAL VALID FIXED VARIABLE
SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE
--------------------------------------------------------------------------------------------------------------------------------
A - 4,460,133,689 4,460,133,689 1,330,114
---------------------------------------------------------------------------------------------------------------------------------
D - 2,164,656,810 2,164,656,810 597,030
---------------------------------------------------------------------------------------------------------------------------------
L - 2,164,656,810 2,164,656,810 597,030
---------------------------------------------------------------------------------------------------------------------------------
TOTAL - 8,789,447,309 - 6,624,790,499 2,164,656,810 2,524,174 -
---------------------------------------------------------------------------------------------------------------------------------
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE THE INFORMATION WAS SENT
8,789,447,309
SHARES PROPORTION BY :
CPO'S : THREE SHARES (ONE SERIES A, ONE SERIES D AND ONE SERIES L)
UNITS :
ADRS'S :
GDRS'S :
ADS'S :
GDS'S : TWENTY CPO's
SHARE REPURCHASE
NUMBER OF MARKET VALUE OF THE SHARE
SERIES SHARES AT REPURCHASE AT QUARTER
-------------------------------------------------------------------------------------------
A 529,316,078 6.56930 8.70466
D 74,892,286 6.56930 8.70466
L 74,892,286 6.56930 8.70466
COMMENT:
TABLE ABOVE REFLECTS OUTSTANDING SHARES PLUS THE SHARES REPURCHASED
REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE NOTE 5 TO CONSOLIDATED FINANCIAL STATEMENTS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
GRUPO TELEVISA, S.A.
DECLARATION OF THE REGISTRANT'S OFFICERS, RESPONSIBLE FOR THE INFORMATION.
WE HEREBY DECLARE THAT, TO THE EXTENT OF OUR FUNCTIONS, WE PREPARED
THE INFORMATION RELATED TO THE REGISTRANT CONTAINED IN THIS QUARTERLY
REPORT, AND BASED ON OUR KNOWLEDGE, THIS INFORMATION FAIRLY PRESENTS
THE REGISTRANT'S CONDITION. WE ALSO DECLARE THAT WE ARE NOT AWARE OF
ANY RELEVANT INFORMATION WHICH HAS BEEN OMITTED OR UNTRUE IN THIS
QUARTERLY REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY
BE MISLEADING TO INVESTORS.
-------------------------- ----------------------------
EMILIO AZCARRAGA JEAN SALVI FOLCH VIADERO
PRESIDENT AND CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
OFFICER
MEXICO, D.F., JULY 26, 2004
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ANNEX 1
CONSOLIDATED
FINAL PRINTING
---------------------------------------------------------------------------
MEXICO CITY, D.F., JULY 26 2004 - GRUPO TELEVISA, S.A. (NYSE:TV; BMV:
TLEVISA CPO) TODAY ANNOUNCED RESULTS FOR THE SECOND QUARTER 2004. THE
RESULTS, HAVE BEEN PREPARED IN ACCORDANCE WITH MEXICAN GAAP, AND ADJUSTED
IN MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF JUNE 30, 2004. AS
DESCRIBED BELOW, EFFECTIVE APRIL 1, 2004, WE ADOPTED THE GUIDELINES OF THE
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46, IN ACCORDANCE
WITH MEXICAN GAAP BULLETIN A-8. AS A RESULT, DURING THE SECOND QUARTER, WE
BEGAN CONSOLIDATING SKY MEXICO INTO OUR FINANCIAL STATEMENTS.
SECOND QUARTER 2004 RESULTS INCLUDE SKY MEXICO. EFFECTIVE APRIL 1, 2004, WE
ADOPTED THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD
INTERPRETATION NO. 46 "CONSOLIDATION OF VARIABLE INTEREST ENTITIES" (FIN
46), IN ACCORDANCE WITH MEXICAN GAAP BULLETIN A-8 "SUPPLEMENTARY
APPLICATION OF INTERNATIONAL ACCOUNTING STANDARDS." FIN 46, WHICH BECAME
EFFECTIVE IN 2004, ADDRESSES CONSOLIDATION BY BUSINESS ENTERPRISES OF
VARIABLE INTEREST ENTITIES, OR VIES. UNDER PREVIOUS GUIDANCE, A COMPANY
GENERALLY INCLUDED ANOTHER ENTITY IN ITS CONSOLIDATED FINANCIAL STATEMENTS
ONLY IF IT CONTROLLED THE ENTITY THROUGH VOTING INTERESTS. FIN 46 REQUIRES
A VARIABLE INTEREST ENTITY TO BE CONSOLIDATED BY A COMPANY IF THAT COMPANY
IS THE "PRIMARY BENEFICIARY" OF THE ENTITY. THE PRIMARY BENEFICIARY IS
SUBJECT TO A MAJORITY OF THE RISK OF LOSS FROM THE VIES ACTIVITIES, OR IS
ENTITLED TO RECEIVE A MAJORITY OF THE VIES RESIDUAL RETURNS, OR BOTH. WE
IDENTIFIED SKY MEXICO AS A VARIABLE INTEREST ENTITY AND US AS THE PRIMARY
BENEFICIARY OF THE INVESTMENT IN SKY MEXICO, UNDER THE SCOPE OF FIN 46, AND
THEREFORE, BEGINNING APRIL 1, 2004, WE BEGAN TO INCLUDE IN OUR CONSOLIDATED
FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS FROM OPERATIONS OF
SKY MEXICO. BEFORE ADOPTING FIN 46, WE ACCOUNTED FOR OUR INVESTMENT IN SKY
MEXICO BY APPLYING THE EQUITY METHOD, AND RECOGNIZED EQUITY IN LOSSES IN
EXCESS OF OUR INVESTMENT UP TO THE AMOUNT OF THE GUARANTEES MADE BY US IN
CONNECTION WITH CERTAIN CAPITAL LEASE OBLIGATIONS OF SKY MEXICO.
SECOND QUARTER 2003 RESULTS DO NOT INCLUDE SKY MEXICO. FOR FURTHER
INFORMATION, SEE "PRO FORMA RESULTS BY BUSINESS SEGMENTS."
SECOND QUARTER 2004 NET INCOME REFLECTS A NON-CASH, ONE-TIME PS.992.0
MILLION CHARGE, RELATED TO THE CONSOLIDATION OF SKY MEXICO. FOR FURTHER
INFORMATION, SEE "CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE."
NET SALES
CONSOLIDATED NET SALES INCREASED 24.7% TO PS.7,456.5 MILLION IN THE SECOND
QUARTER OF 2004 FROM PS.5,977.9 MILLION IN THE SECOND QUARTER OF 2003. THIS
INCREASE REFLECTS: I) THE CONSOLIDATION OF THE NET SALES FROM SKY MEXICO;
AND II) REVENUE GROWTH IN ALL OF OUR BUSINESS SEGMENTS, INCLUDING SIX OUT
OF NINE SEGMENTS PRESENTING DOUBLE-DIGIT REVENUE GROWTH. ON A PRO FORMA
BASIS, INCLUDING THE CONSOLIDATION OF SKY MEXICO, NET SALES INCREASED 9.4%.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
SECOND QUARTER 2004 CONSOLIDATED OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION INCREASED 32.4% TO PS.2,758.3 MILLION COMPARED WITH PS.2,083.2
MILLION REPORTED IN THE LAST YEAR'S SECOND QUARTER. ON A PRO FORMA BASIS,
INCLUDING THE CONSOLIDATION OF SKY MEXICO, OPERATING INCOME BEFORE
DEPRECIATION AND AMORTIZATION GREW 15.2%. CONSOLIDATED OPERATING INCOME
BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO 37.0% FROM 34.8%
IN THE SAME PERIOD OF 2003, THE HIGHEST MARGIN LEVEL EVER REPORTED IN ANY
SECOND QUARTER IN THE COMPANY'S HISTORY. ADDITIONALLY, OPERATING INCOME
INCREASED 31.0% TO PS.2,221.2 MILLION IN THE SECOND QUARTER 2004 FROM
PS.1,695.5 MILLION REPORTED IN THE SAME PERIOD OF 2003. THESE INCREASES
PRIMARILY RESULTED IN REVENUE GROWTH WHICH WAS PARTIALLY OFFSET BY HIGHER
COST OF SALES, OPERATING EXPENSES AND DEPRECIATION AND AMORTIZATION COSTS.
THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS OF PS.537.1
MILLION AND PS.387.7 MILLION IN THE SECOND QUARTER OF 2004 AND 2003,
RESPECTIVELY.
NET INCOME
THE COMPANY GENERATED NET INCOME OF PS.461.6 MILLION IN THE SECOND QUARTER
OF 2004 COMPARED TO NET INCOME OF PS.1,320.5 MILLION IN LAST YEAR'S SECOND
QUARTER. THE NET DECREASE OF PS.858.9 MILLION REFLECTED PRIMARILY: I) A
PS.992.0 MILLION CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE, NET OF
RELATED MINORITY INTEREST, IN CONNECTION WITH SKY MEXICO'S ACCUMULATED
LOSSES NOT RECOGNIZED IN THE YEARS 2001, 2002, 2003 AND THE FIRST QUARTER
OF 2004; II) A PS.382.5 MILLION INCREASE IN OTHER EXPENSE-NET; III) A
PS.31.6 MILLION DECREASE IN EQUITY IN INCOME OF AFFILIATES; AND IV) A
PS.41.8 MILLION INCREASE IN INCOME TAXES. THESE UNFAVORABLE CHANGES WERE
PARTIALLY OFFSET BY: I) A PS.675.1 MILLION INCREASE IN OPERATING INCOME
BEFORE DEPRECIATION AND AMORTIZATION; II) A PS.31.3 MILLION DECREASE IN
INTEGRAL COST OF FINANCING; AND III) A PS.30.7 MILLION DECREASE IN
RESTRUCTURING AND NON-RECURRING CHARGES.
PRO FORMA RESULTS BY BUSINESS SEGMENTS
TELEVISION BROADCASTING
THE 2.6% INCREASE IN SALES TO RECORD SECOND QUARTER RESULTS OF PS.3,990.6
MILLION AND PS.3,889.1 MILLION FOR THE SECOND QUARTER OF 2004 AND 2003,
RESPECTIVELY, WAS MAINLY ATTRIBUTABLE TO: I) AN INCREASE OF ADVERTISING
REVENUES, DRIVEN MAINLY BY AN OVERALL PICK-UP IN THE MEXICAN ECONOMY,
COMBINED WITH THE BROADCAST OF CERTAIN SPORTING EVENTS THROUGHOUT THE
QUARTER, INCLUDING THE EURO CUP AND THE MEXICAN SOCCER PREMIER LEAGUE
FINAL; AND II) OUR CONTINUING SUCCESS ON REALITY SHOWS. EXCLUDING THE
POLITICAL ADVERTISING RECEIVED DURING THE SECOND QUARTER OF LAST YEAR,
TELEVISION BROADCASTING SALES INCREASED 18.5%.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 5.6% TO A
RECORD SECOND QUARTER OF PS.1,852.8 MILLION IN THE SECOND QUARTER OF 2004
FROM PS.1,754.5 MILLION REPORTED IN THE SAME PERIOD OF 2003. THIS INCREASE
REFLECTS HIGHER SALES, A 2.1% REDUCTION IN OPERATING EXPENSES, WHICH WAS
PARTIALLY OFFSET BY A MARGINAL 0.6% INCREASE IN COST OF SALES. AS A RESULT,
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO A
HISTORIC RECORD OF 46.4% COMPARED WITH 45.1% IN THE SECOND QUARTER OF LAST
YEAR.
PROGRAMMING FOR PAY TELEVISION
THE 10.4% INCREASE IN SALES (PS.193.6 MILLION AND PS.175.3 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), RESULTED FROM HIGHER
REVENUES FROM SIGNALS SOLD TO PAY TELEVISION SYSTEMS IN MEXICO AND LATIN
AMERICA, AS WELL AS HIGHER ADVERTISING SALES IN MEXICO.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 120.9%
(PS.76.0 MILLION AND PS.34.4 MILLION FOR THE SECOND QUARTER OF 2004 AND
2003, RESPECTIVELY), DUE TO INCREASED SALES COUPLED WITH A LOWER COST OF
SALES AND OPERATING EXPENSES THAT INCLUDED A LOWER PROVISION FOR DOUBTFUL
TRADE ACCOUNTS AND A REDUCTION OF SALES COMMISSIONS.
PROGRAMMING LICENSING
THE 18.1% INCREASE IN SALES (PS.523.1 MILLION AND PS.443.0 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), IS ATTRIBUTABLE TO A 19.2%
INCREASE IN ROYALTIES PAID TO THE COMPANY BY UNIVISION UNDER THE UNIVISION
PROGRAM LICENSE AGREEMENT, WHICH AMOUNTED TO U.S.$29.7 MILLION, AS WELL AS
BY A POSITIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY DENOMINATED SALES,
WHICH AMOUNTED TO PS.25.6 MILLION.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 37.2%
(PS.239.9 MILLION AND PS.174.9 MILLION FOR THE SECOND QUARTER OF 2004 AND
2003, RESPECTIVELY), REFLECTING HIGHER SALES THAT WERE PARTIALLY OFFSET BY
HIGHER COST OF SALES AND OPERATING EXPENSES.
PUBLISHING
THE 16.6% INCREASE IN SALES (PS.530.7 MILLION AND PS.455.3 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER
MAGAZINE CIRCULATION AND ADVERTISING PAGES SOLD BOTH IN MEXICO AND ABROAD,
AS WELL AS BY A POSITIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY DENOMINATED
SALES, WHICH AMOUNTED TO PS.17.2 MILLION.
PUBLISHING OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED
11.9% (PS.128.4 MILLION AND PS.114.7 MILLION FOR THE SECOND QUARTER OF 2004
AND 2003, RESPECTIVELY), REFLECTING HIGHER SALES, PARTIALLY OFFSET BY
HIGHER COST OF SALES AND OPERATING EXPENSES.
PUBLISHING DISTRIBUTION
THE 22.4% INCREASE IN SALES (PS.472.4 MILLION AND PS.385.8 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER
DISTRIBUTION SALES ABROAD AND HIGHER CIRCULATION OF MAGAZINES PUBLISHED BY
THE COMPANY IN MEXICO, AS WELL AS BY A POSITIVE TRANSLATION EFFECT OF
FOREIGN-CURRENCY DENOMINATED SALES, WHICH AMOUNTED TO 34.2 MILLION, BUT WAS
PARTIALLY OFFSET BY LOWER CIRCULATION OF MAGAZINES PUBLISHED BY THIRD
PARTIES IN MEXICO.
OPERATING RESULT BEFORE DEPRECIATION AND AMORTIZATION DECREASED TO A LOSS
OF PS.2.1 MILLION IN THE SECOND QUARTER OF 2004 COMPARED WITH AN INCOME OF
PS.5.0 MILLION IN LAST YEAR'S SECOND QUARTER. THIS DECREASE REFLECTS HIGHER
COST OF SALES AND OPERATING EXPENSES, PARTIALLY OFFSET BY HIGHER SALES.
SKY MEXICO
THE 19.2% INCREASE IN SALES (PS.1,174.2 MILLION AND PS.985.3 MILLION FOR
THE SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS ATTRIBUTABLE TO
THREE FACTORS: I) AN INCREASE OF 16.0% IN OUR SUBSCRIBER BASE; II) THE
ELIMINATION OF THE 10% EXCISE TAX ON TELECOMMUNICATIONS SERVICES; AND III)
ADDITIONAL REVENUES FROM PAY-PER-VIEW.
SKY MEXICO ADDED 52,500 SUBSCRIBERS DURING THE SECOND QUARTER REACHING
938,600 GROSS ACTIVE SUBSCRIBERS THAT INCLUDE 52,000 COMMERCIAL
SUBSCRIBERS. COMPARED TO LAST YEAR'S SECOND QUARTER, GROSS ACTIVE
SUBSCRIBERS INCREASED 16% FROM 809,000 INCLUDING 46,000 COMMERCIAL
SUBSCRIBERS.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 37.0% TO
PS.425.1 MILLION IN THE SECOND QUARTER OF 2004 COMPARED WITH PS.310.3
MILLION IN LAST YEAR'S SECOND QUARTER, REFLECTING HIGHER SALES, WHICH WERE
PARTIALLY OFFSET BY HIGHER COST OF SERVICES AND SALES, AND OPERATING
EXPENSES. AS A RESULT, OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION MARGIN INCREASED TO 36.2% FROM 31.5%.
CABLE TELEVISION
THE 9.9% INCREASE IN SALES TO PS.274.5 MILLION AND PS.249.8 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY, WAS PRIMARILY ATTRIBUTABLE
TO THE ELIMINATION OF THE 10% EXCISE TAX ON TELECOMMUNICATIONS SERVICES.
OUR CABLE TELEVISION SEGMENT ADDED 6,800 GROSS ACTIVE SUBSCRIBERS DURING
THE SECOND QUARTER, REACHING 372,700 GROSS ACTIVE SUBSCRIBERS, OF WHICH
OVER 73,800 ARE DIGITAL SUBSCRIBERS.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 45.0% TO
PS.104.8 MILLION AND PS.72.3 MILLION FOR THE SECOND QUARTER OF 2004 AND
2003, RESPECTIVELY, DUE TO HIGHER SALES AND LOWER COST OF SALES THAT WERE
PARTIALLY OFFSET BY HIGHER OPERATING EXPENSES. AS A RESULT, OPERATING
INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO 38.2% FROM
28.9%.
RADIO
RADIO SALES INCREASED 4.2% TO PS.67.7 MILLION AND PS.65.0 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY, DUE TO HIGHER ADVERTISING
TIME SOLD, WHICH WAS MAINLY DRIVEN BY OUR NEWSCASTS AND SPORTING PROGRAMS.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 15.8% TO
PS.8.8 MILLION COMPARED WITH PS.7.6 MILLION REPORTED IN THE SAME PERIOD A
YEAR AGO. THIS INCREASE WAS ATTRIBUTABLE TO HIGHER SALES AND WAS PARTIALLY
OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES.
IN JUNE 2004, OUR RADIO SEGMENT AFFILIATED 41 NEW RADIO STATIONS (22 AM AND
19 FM), EXPANDING ITS NETWORK TO 71 STATIONS, REACHING 33 CITIES IN MEXICO.
OTHER BUSINESSES
THE 27.7% INCREASE IN SALES (PS.377.3 MILLION AND PS.295.5 MILLION FOR THE
SECOND QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER SALES
IN THE DISTRIBUTION OF FEATURE FILMS, INTERNET AND SPORT BUSINESSES.
OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION DECREASED TO PS.37.5
MILLION FROM PS.53.1 MILLION IN LAST YEAR'S COMPARABLE PERIOD. THIS
FAVORABLE VARIANCE WAS LED BY HIGHER SALES AND LOWER OPERATING EXPENSES AND
WAS PARTIALLY OFFSET BY HIGHER COST OF SALES, RELATED TO OUR DISTRIBUTION
OF FEATURE FILMS AND SPORT BUSINESSES.
INTERSEGMENT SALES
INTERSEGMENT SALES FOR THE SECOND QUARTER OF 2004 AND 2003, AMOUNTED TO
PS.190.5 MILLION AND PS.202.3 MILLION, RESPECTIVELY.
CORPORATE EXPENSES
CORPORATE EXPENSES FOR THE SECOND QUARTER OF 2004 AND 2003, AMOUNTED TO
PS.44.3 MILLION AND PS.47.4 MILLION, RESPECTIVELY.
EFFECTIVE APRIL 1, 2004, WE BEGAN CONSOLIDATING SKY MEXICO INTO OUR
CONSOLIDATED FINANCIAL STATEMENTS. THEREFORE, SECOND QUARTER 2003 RESULTS
DO NOT INCLUDE SKY MEXICO.
INTEGRAL COST OF FINANCING
INTEGRAL COST OF FINANCING DECREASED BY PS.31.3 MILLION, OR 17.4%, TO
PS.148.6 MILLION IN THE SECOND QUARTER OF 2004 FROM PS.179.9 MILLION IN THE
SECOND QUARTER OF 2003. THIS DECREASE REFLECTS PRIMARILY A FAVORABLE
PS.438.1 MILLION CHANGE RESULTING FROM A POSITIVE HEDGE EFFECT ON OUR
U.S.$600 MILLION LONG-TERM DEBT HEDGED BY OUR NET INVESTMENT IN UNIVISION
IN THE SECOND QUARTER OF 2004 COMPARED TO A NEGATIVE HEDGE EFFECT IN THE
SECOND QUARTER OF 2003. THE HEDGE EFFECT WAS POSITIVELY AFFECTED BY A 3.25%
DEPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR DURING THE SECOND
QUARTER OF 2004, COMPARED TO A 3.28% APPRECIATION OF THE MEXICAN PESO
AGAINST THE U.S. DOLLAR DURING THE SECOND QUARTER OF 2003. THIS FAVORABLE
VARIANCE WAS OFFSET BY: I) A PS.97.6 MILLION INCREASE IN INTEREST EXPENSE,
PRIMARILY AS A RESULT OF AN INCREASE IN THE AVERAGE AMOUNT OF OUR DEBT
DURING THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003,
IN CONNECTION WITH THE CONSOLIDATION OF SKY MEXICO'S DEBT AT THE BEGINNING
OF THE SECOND QUARTER OF 2004; II) A PS.28.5 MILLION DECREASE IN INTEREST
INCOME IN THE SECOND QUARTER OF 2004 COMPARED TO LAST YEAR'S SECOND
QUARTER, REFLECTING SKY MEXICO'S CAPITALIZATION IN SEPTEMBER 2003 OF ALL OF
THE AMOUNTS DUE TO US IN CONNECTION WITH CERTAIN FINANCING PROVIDED TO THIS
JOINT VENTURE, WHICH EFFECT WAS PARTIALLY OFFSET BY AN INCREASE IN INTEREST
INCOME IN CONNECTION WITH A HIGHER AVERAGE AMOUNT OF TEMPORARY INVESTMENTS
DURING THE SECOND QUARTER OF 2004 COMPARED TO THE SECOND QUARTER OF 2003;
III) A PS.263.4 MILLION UNFAVORABLE CHANGE RESULTING FROM A NET FOREIGN
EXCHANGE LOSS IN THE SECOND QUARTER OF 2004 COMPARED TO A NET FOREIGN
EXCHANGE GAIN IN THE SECOND QUARTER OF 2003, PRIMARILY DUE TO A HIGHER
FOREIGN CURRENCY LIABILITY POSITION IN CONNECTION WITH THE CONSOLIDATION OF
THE SKY MEXICO'S FOREIGN CURRENCY DEBT BEGINNING IN THE SECOND QUARTER OF
2004, AS WELL AS A RESULT OF THE MEXICAN PESO DEPRECIATION IN THE SECOND
QUARTER OF 2004 AND THE MEXICAN PESO APPRECIATION IN THE SECOND QUARTER OF
2003; AND IV) A PS.17.3 MILLION DECREASE IN GAIN FROM MONETARY POSITION AS
A RESULT OF A HIGHER MONETARY LOSS ARISING IN CALCULATING OUR DEFERRED
INCOME TAX PROVISION, WHICH EFFECT WAS PARTIALLY OFFSET BY A HIGHER NET
LIABILITY MONETARY POSITION DURING THE SECOND QUARTER OF 2004 COMPARED TO
THE SECOND QUARTER OF 2003.
RESTRUCTURING AND NON-RECURRING CHARGES
RESTRUCTURING AND NON-RECURRING CHARGES DECREASED BY PS.30.7 MILLION, OR
68.4%, TO PS.14.2 MILLION FOR THE SECOND QUARTER OF 2004 COMPARED TO
PS.44.9 MILLION FOR THE SECOND QUARTER OF 2003. THIS DECREASE PRIMARILY
REFLECTS LOWER RESTRUCTURING CHARGES IN CONNECTION WITH WORK FORCE
REDUCTIONS.
OTHER EXPENSE/INCOME-NET
OTHER EXPENSE INCREASED BY PS.382.5 MILLION TO PS.234.7 MILLION FOR THE
SECOND QUARTER OF 2004 FROM OTHER INCOME OF PS.147.8 MILLION FOR THE SECOND
QUARTER OF 2003. THIS INCREASE PRIMARILY REFLECTS A LOSS ON DISPOSITION OF
OUR 30.0% MINORITY INTEREST IN THE CAPITAL STOCK OF GRUPO EUROPRODUCCIONES,
A TELEVISION PROGRAMMING PRODUCTION COMPANY IN SPAIN, IN THE SECOND QUARTER
OF 2004, VERSUS A GAIN ON DISPOSITION OF A PORTION OF OUR MINORITY INTEREST
IN A DTH VENTURE IN SPAIN IN THE SECOND QUARTER OF 2003. THIS LOSS WAS
PARTIALLY OFFSET BY A REDUCTION IN AMORTIZATION OF GOODWILL IN THE SECOND
QUARTER OF 2004 AS WE CEASED AMORTIZING THIS INTANGIBLE ASSET BEGINNING
JANUARY 1, 2004, IN ACCORDANCE WITH MEXICAN GAAP BULLETIN B-7 RELATED TO
BUSINESS ACQUISITIONS.
INCOME TAX
INCOME TAX INCREASED BY PS.41.8 MILLION, OR 9.9%, TO PS.462.7 MILLION FOR
THE SECOND QUARTER OF 2004 FROM PS.420.9 MILLION FOR THE SECOND QUARTER OF
2003. THIS INCREASE REFLECTS AN INCREASED INCOME TAX BASE FOR 2004 COMPARED
WITH 2003.
EQUITY IN INCOME OF AFFILIATES
EQUITY IN INCOME OF AFFILIATES DECREASED BY PS.31.6 MILLION, OR 23.4%, TO
PS.103.5 MILLION FOR THE SECOND QUARTER OF 2004 COMPARED TO PS.135.1
MILLION IN THE SECOND QUARTER OF 2003. THIS DECREASE PRIMARILY REFLECTS THE
ABSENCE OF EQUITY INCOME OF SKY MEXICO IN THE SECOND QUARTER OF 2004
COMPARED TO THE SECOND QUARTER OF 2003, WHICH WAS PARTIALLY OFFSET BY AN
INCREASE IN OUR EQUITY INCOME OF UNIVISION IN THE SECOND QUARTER OF 2004
COMPARED TO THE SECOND QUARTER OF 2003.
CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE
WE RECOGNIZED APPROXIMATELY A PS.992.0 MILLION CUMULATIVE LOSS EFFECT OF
ACCOUNTING CHANGE, NET OF MINORITY INTEREST IN OUR CONSOLIDATED STATEMENT
OF INCOME IN CONNECTION WITH SKY MEXICO'S ACCUMULATED LOSSES NOT RECOGNIZED
IN THE YEARS 2001, 2002, 2003 AND THE FIRST QUARTER OF 2004.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES, ACQUISITIONS AND INVESTMENTS
IN THE SECOND QUARTER OF 2004, WE INVESTED APPROXIMATELY U.S.$48.6 MILLION
IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES, OF WHICH
APPROXIMATELY U.S.$4.0 MILLION IS RELATED TO THE CABLE TELEVISION SEGMENT
AND U.S.$16.8 MILLION IS RELATED TO SKY MEXICO. ADDITIONALLY, WE INVESTED
APPROXIMATELY U.S.$2.7 MILLION IN LONG-TERM LOANS MADE TO OUR LATIN
AMERICAN DTH JOINT-VENTURES.
DEBT
AS OF JUNE 30, 2004, OUR LONG-TERM DEBT AMOUNTED TO PS.19,499.4 MILLION,
INCLUDING PS.4,476.3 MILLION FROM SKY MEXICO WHICH IS NOT GUARANTEED BY
GRUPO TELEVISA, AND OUR CURRENT PORTION OF DEBT WAS PS.163.0 MILLION. AS OF
JUNE 30, 2003, OUR LONG-TERM DEBT AMOUNTED TO PS.14,919.0 MILLION, AND OUR
CURRENT PORTION OF DEBT WAS PS.294.8 MILLION.
IN MAY 2004, WE ENTERED INTO A FIVE-YEAR CREDIT AGREEMENT WITH A MEXICAN
BANK FOR AN AGGREGATE PRINCIPAL AMOUNT OF PS.1,162.5 MILLION, WHICH NET
PROCEEDS WERE USED TO REPAY ANY OUTSTANDING AMOUNTS UNDER THE U.S.$100.0
MILLION SYNDICATED TERM LOAN.
ON JUNE 17, 2004, FITCH RATINGS UPGRADED OUR LONG-TERM FOREIGN CURRENCY
RATING TO "BBB" FROM "BBB-" AND AFFIRMED ITS OUTLOOK AT STABLE. THIS
FOLLOWED THE ANNOUNCEMENT THAT FITCH HAD ASSIGNED COUNTRY CEILING RATINGS
ABOVE THE LONG-TERM FOREIGN CURRENCY RATING OF THE SOVEREIGN FOR CERTAIN
COUNTRIES, INCLUDING MEXICO. AS A RESULT OF THIS ANNOUNCEMENT, TELEVISA IS
ONE RATING LEVEL ABOVE MEXICO'S SOVEREIGN LONG-TERM FOREIGN CURRENCY
RATING.
SHARE BUYBACK PROGRAM
DURING THE SECOND QUARTER OF 2004, THE COMPANY REPURCHASED APPROXIMATELY
46.5 MILLION SHARES IN THE FORM OF 15.5 MILLION CPOS FOR A NET AMOUNT OF
APPROXIMATELY PS.371.8 MILLION IN NOMINAL TERMS.
DIVIDEND PAYMENT
ON MAY 21, 2004, THE COMPANY MADE A PS.3,850 MILLION CASH DISTRIBUTION TO
SHAREHOLDERS, EQUIVALENT TO PS.1.219 PER CPO, WHICH INCLUDES A DIVIDEND
CORRESPONDING TO THE SERIES A AND L SHARES AND THE CUMULATIVE PREFERRED
DIVIDEND CORRESPONDING TO SERIES D SHARES. UNDER OUR RECENTLY ANNOUNCED
DIVIDEND POLICY, WE EXPECT TO CONTINUE PAYING DIVIDENDS ANNUALLY.
TELEVISION RATINGS AND AUDIENCE SHARE
NATIONAL URBAN RATINGS AND AUDIENCE SHARE REPORTED BY IBOPE CONFIRM THAT IN
THE SECOND QUARTER OF 2004 TELEVISA CONTINUE TO DELIVER STRONG RATINGS AND
AUDIENCE SHARES. DURING WEEKDAY PRIME TIME (19:00 TO 23:00 - MONDAY TO
FRIDAY), AUDIENCE SHARE AMOUNTED TO 70.5%; IN PRIME TIME (16:00 TO 23:00 -
MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 69.5%; AND IN SIGN-ON TO
SIGN-OFF (6:00 TO 24:00 - MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO
71.8%.
IN JUNE 2004, TWO OF THE NINE TEAMS, IN WHICH THE COMPANY HAS EXCLUSIVE
RIGHTS TO BROADCAST ITS HOME GAMES, PLAYED THE FINAL GAMES OF THE MEXICAN
SOCCER PREMIER LEAGUE, HELD IN GUADALAJARA AND IN MEXICO CITY. DURING THE
LATTER, THE TRANSMISSION REACHED ON AVERAGE 72.5% AUDIENCE SHARE FROM 11:45
TO 15:00, REACHING ITS AUDIENCE PEAK AT 79.7%.
OUTLOOK FOR 2004
WE ARE RAISING OUR GUIDANCE FOR THE YEAR. WE NOW EXPECT OUR TELEVISION
BROADCASTING REVENUE TO INCREASE BETWEEN 3% AND 4% FOR THE YEAR. DESPITE
THE PRODUCTION AND TRANSMISSION OF THE OLYMPIC GAMES, WE REMAIN COMMITTED
TO KEEPING COSTS AND EXPENSES OF OUR TELEVISION BROADCASTING SEGMENT FLAT
DURING THE YEAR. WE THEREFORE EXPECT OUR TELEVISION BROADCASTING SEGMENT TO
EXCEED LAST YEAR'S OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
MARGIN.
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 ANNEX 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 ANNEX 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 ANNEX 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.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
FINANCIAL STATEMENT NOTES (1)
ANNEX 2
CONSOLIDATED
FINAL PRINTING
---------------------------------------------------------------------------
GRUPO TELEVISA, S.A.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS
OF JUNE 30, 2004, EXCEPT PER SHARE, PER CPO AND PER UDI VALUES)
1. ACCOUNTING POLICIES:
THE CONDENSED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A. (THE
"COMPANY") AND ITS CONSOLIDATED SUBSIDIARIES (COLLECTIVELLY, THE "GROUP"),
AS OF JUNE 30, 2004 AND 2003, AND FOR THE SIX MONTHS ENDED ON THOSE DATES,
ARE UNAUDITED. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS (CONSISTING
PRINCIPALLY OF NORMAL RECURRING ADJUSTMENTS) NECESSARY FOR A FAIR
PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN
INCLUDED THEREIN.
FOR PURPOSES OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS,
CERTAIN INFORMATION AND DISCLOSURES, NORMALLY INCLUDED IN FINANCIAL
STATEMENTS PREPARED IN ACCORDANCE WITH MEXICAN GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ("MEXICAN GAAP"), HAVE BEEN CONDENSED OR OMITTED.
THESE CONDENSED CONSOLIDATED STATEMENTS SHOULD BE READ IN CONJUNCTION WITH
THE GROUP'S CONSOLIDATED AND AUDITED FINANCIAL STATEMENTS AND NOTES THERETO
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002, WHICH INCLUDE, AMONG OTHER
DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE
BEEN APPLIED ON A CONSISTENT BASIS FOR THE SIX MONTHS ENDED JUNE 30, 2004,
EXCEPT FOR THE MATTER DISCUSSED IN THE FOLLOWING PARAGRAPH.
EFFECTIVE JANUARY 1, 2004, IN CONNECTION WITH THE ADOPTION OF MEXICAN
GAAP BULLETIN B-7, "BUSINESS ACQUISITIONS," GOODWILL IS DEEMED AN
INTANGIBLE ASSET WITH AN INDEFINITE USEFUL LIVE, AND ACCORDINGLY, THE GROUP
NO LONGER AMORTIZE GOODWILL EFFECTIVE THAT DATE. BEFORE 2004, GOODWILL WAS
AMORTIZED OVER A PERIOD OF 20 YEARS.
BEGINNING APRIL 1, 2004, THE GROUP BEGAN TO INCLUDE IN ITS
CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS OF
OPERATIONS OF INNOVA, S. DE R.L. DE C.V. ("INNOVA"), A JOINT VENTURE
ENGAGED IN DIRECT-TO-HOME ("DTH") BROADCAST SATELLITE PAY TELEVISION IN
WHICH THE GROUP HAS A 60% INTEREST. INNOVA'S FINANCIALS ARE CONSOLIDATED IN
ACCORDANCE WITH THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD
INTERPRETATION NO. 46 ("FIN 46"), "CONSOLIDATION OF VARIABLE INTEREST
ENTITIES," WHICH WAS ADOPTED BY THE GROUP ON APRIL 1, 2004 (SEE NOTE 11).
2. PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT AS OF JUNE 30, CONSISTED OF:
2004 2003
-------------------- ------------------
BUILDINGS Ps. 7,233,293 Ps. 6,899,271
BUILDING IMPROVEMENTS 1,665,419 1,658,357
TECHNICAL EQUIPMENT 14,531,815 10,433,826
FURNITURE AND FIXTURES 597,131 559,881
TRANSPORTATION EQUIPMENT 1,079,603 1,029,324
COMPUTER EQUIPMENT 1,201,951 828,376
-------------------- ------------------
26,309,212 21,409,035
ACCUMULATED DEPRECIATION
(12,134,438)) (10,318,362)
-------------------- ------------------
14,174,774 11,090,673
LAND 3,594,566 3,597,944
CONSTRUCTION IN PROGRESS 743,292 1,309,837
-------------------- ------------------
Ps. 18,512,632 Ps. 15,998,454
==================== ==================
DEPRECIATION CHARGED TO INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2004
AND 2003, WAS PS.773,114 AND PS.573,814, RESPECTIVELY.
3. LONG-TERM DEBT SECURITIES:
AS OF JUNE 30, THE COMPANY'S LONG-TERM DEBT SECURITIES OUTSTANDING
WERE AS FOLLOWS:
2004 2003
-------------------------------- -----------------------------
U.S. DOLLAR U.S. DOLLAR
PRINCIPAL PRINCIPAL
AMOUNTS MEXICAN AMOUNTS MEXICAN
(THOUSANDS) PESOS (THOUSANDS) PESOS
-------------- ---------------- ------------ ---------------
11.875% SERIES "B" SENIOR NOTES DUE
2006 (A) $ 5,343 Ps. 61,642 $ 5,343 Ps. 58,205
8.625% SENIOR NOTES DUE 2005 (B) 200,000 2,307,400 200,000 2,178,747
8.000% SENIOR NOTES DUE 2011 (C) 300,000 3,461,100 300,000 3,268,120
8.500% SENIOR NOTES DUE 2032 (D) 300,000 3,461,100 300,000 3,268,120
12.875% SENIOR NOTES DUE 2007 (E) 88,000 1,015,256 - -
9.375% SENIOR NOTES DUE 2013 (F) 300,000 3,461,100 - -
-------------- ---------------- ------------ ---------------
$ 1,193,343 13,767,598 $ 805,343 8,773,192
============== ============
UDI-DENOMINATED NOTES DUE 2007 (G) 3,705,056 3,708,337
---------------- ---------------
Ps. 17,472,654 Ps. 12,481,529
================ ===============
(A) INTEREST ON THE SERIES "B" SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS
PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 12.49% PER
ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNSECURED,
UNSUBORDINATED OBLIGATIONS OF THE COMPANY, RANK PARI PASSU IN RIGHT OF
PAYMENT WITH ALL EXISTING AND FUTURE UNSECURED, UNSUBORDINATED
OBLIGATIONS OF THE COMPANY, AND ARE SENIOR IN RIGHT OF PAYMENT TO ALL
FUTURE SUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE EFFECTIVELY
SUBORDINATED TO ALL EXISTING AND FUTURE LIABILITIES OF THE COMPANY'S
SUBSIDIARIES.
(B) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.07% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(C) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.41% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(D) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.94% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(E) INNOVA'S SENIOR NOTES. INTEREST ON THESE SENIOR NOTES, INCLUDING
ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING
TAXES, IS 13.54% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE
SECURITIES ARE UNCOLLATERALIZED, UNSUBORDINATED OBLIGATIONS OF INNOVA
AND CONTAIN CERTAIN COVENANTS RELATING TO INNOVA SIMILAR TO THOSE OF
THE SENIOR NOTES DUE 2013.
(F) INNOVA'S SENIOR NOTES. INTEREST ON THESE SENIOR NOTES, INCLUDING
ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING
TAXES, IS 9.86% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE
SECURITIES ARE UNSECURED AND UNSUBORDINATED OBLIGATIONS OF INNOVA AND
CONTAIN CERTAIN COVENANTS RELATING TO INNOVA, INCLUDING COVENANTS WITH
RESPECT TO: (I) LIMITATIONS ON ADDITIONAL INDEBTEDNESS; (II)
LIMITATIONS ON LIENS; (III) LIMITATIONS ON SALES AND LEASEBACKS; (IV)
LIMITATIONS ON RESTRICTED PAYMENTS; (V) LIMITATIONS ON ASSETS SALES;
AND (VI) LIMITATIONS ON CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR
TRANSACTIONS. INNOVA MAY, AT ITS OWN OPTION, REDEEM THESE SECURITIES,
IN WHOLE OR IN PART, AT ANY TIME IN OR AFTER SEPTEMBER 2008 AT
REDEMTION PRICES (EXPRESSED IN PERCENTAGES OF THE PRINCIPAL AMOUNT) ,
PLUS ACCRUED AND UNPAID INTEREST, IF ANY, IN THE RANGE OF 104.6875% TO
100%. ADDITIONALLY, IN OR BEFORE SEPTEMBER 2006, INNOVA MAY, AT ITS
OWN OPTION AND SUBJECT TO CERTAIN REQUIREMENTS, USE THE PROCEEDS FROM
ONE OR MORE QUALIFIED EQUITY OFFERING TO REDEEM UP TO 35% OF THE
AGGREGATE PRINCIPAL AMOUNT OF THESE SENIOR NOTES AT 109.375% OF THEIR
PRINCIPAL AMOUNT, PLUS ACCRUED AND UNPAID INTEREST.
(G) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION"
OR "UDIS") FOR A NOMINAL AMOUNT OF PS.3,000,000, REPRESENTING
1,086,007,800 UDIS, WITH AN ANNUAL INTEREST RATE OF 8.15% AND MATURITY
IN 2007. INTEREST ON THESE NOTES IS PAYABLE SEMI-ANNUALLY. THE BALANCE
AS OF JUNE 30, 2004 AND 2003 INCLUDES RESTAMENT OF PS.705,065 AND
PS.566,548, RESPECTIVELY. THE UDI VALUE AS OF JUNE 30, 2004, WAS OF
PS. 3.411629 PER ONE UDI.
THE SENIOR NOTES DUE IN 2005, 2006, 2011 AND 2032 MAY NOT BE REEDEMED
PRIOR TO MATURITY, EXCEPT IN THE EVENT OF CERTAIN CHANGES IN LAW AFFECTING
THE MEXICAN WITHHOLDING TAX TREATMENT OF CERTAIN PAYMENTS ON THE
SECURITIES, IN WHICH CASE THE SECURITIES WILL BE REDEEMABLE, AS A WHOLE BUT
NOT IN PART, AT THE OPTION OF THE COMPANY.
THE SENIOR NOTES DUE IN 2005, 2011 AND 2032 ARE UNSECURED OBLIGATIONS
OF THE COMPANY, RANK EQUALLY IN RIGHT OF PAYMENT WITH ALL EXISTING AND
FUTURE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE
JUNIOR IN RIGHT OF PAYMENT TO ALL OF THE EXISTING AND FUTURE LIABILITIES OF
THE COMPANY'S SUBSIDIARIES.
THE AGREEMENT OF THE SENIOR NOTES DUE 2005, 2011 AND 2032 CONTAINS
CERTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND ITS RESTRICTED
SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PROGRAMMING FOR PAY
TELEVISION AND PROGRAMMING LICENSING, TO INCUR OR ASSUME LIENS, PERFORM
SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS,
CONSOLIDATIONS AND SIMILAR TRANSACTIONS. SUBSTANTIALLY ALL OF THE SENIOR
NOTES DUE 2005, 2011 AND 2032 ARE REGISTERED WITH THE U.S. SECURITIES AND
EXCHANGE COMMISSION.
EFFECTIVE MARCH 1, 2002, THE GROUP DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF THE PRINCIPAL AMOUNT OF ITS SENIOR NOTES
DUE IN 2011 AND 2032. CONSEQUENTLY, BEGINNING MARCH 2002, ANY FOREIGN
EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT IS
CREDITED OR CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS)
(SEE NOTE 7).
4. CONTINGENCIES:
PAYMENTS TO BE MADE BY CERTAIN MEXICAN COMPANIES IN THE GROUP TO
EMPLOYEES IN CASE OF DISMISSAL AND UNDER CERTAIN CIRCUMSTANCES PROVIDED BY
THE MEXICAN LABOR LAW WILL BE EXPENSED AS INCURRED.
IN CONJUNCTION WITH THE GROUP'S DISPOSAL OF ITS FORMER MUSIC RECORDING
BUSINESS IN 2002, THE GROUP MAY HAVE TO PAY CERTAIN ADJUSTMENTS TO
UNIVISION IN CONNECTION WITH AN AUDIT OF THE MUSIC RECORDING BUSINESS BY
UNIVISION, WHICH IS EXPECTED TO BE RESOLVED BY THE PARTIES IN THE SECOND
HALF OF 2004. WHILE THE GROUP'S MANAGEMENT BELIEVES THAT THE OUTCOME OF
THIS AUDIT WILL NOT HAVE A MATERIAL ADVERSE EFFECT ON ITS FINANCIAL
POSITION OR FUTURE OPERATING RESULTS, NO ASSSURANCE CAN BE GIVEN IN THIS
REGARD.
IN JUNE 2003, THE COMPANY WAS NOTIFIED BY THE MEXICAN TAX AUTHORITY OF
A FEDERAL TAX CLAIM MADE AGAINST THE COMPANY FOR APPROXIMATELY PS.960,700,
INCLUDING PENALTIES AND SURCHARGES, FOR AN ALLEGED ASSETS TAX LIABILITY FOR
THE YEAR 1994. THE COMPANY BELIEVES IT HAS MERITORIOUS DEFENSE AGAINST THIS
CLAIM.
THERE ARE VARIOUS LEGAL ACTIONS AND OTHER CLAIMS PENDING AGAINST THE
GROUP INCIDENTAL TO ITS BUSINESSES AND OPERATIONS. IN THE OPINION OF THE
GROUP'S MANAGEMENT, NONE OF THESE PROCEEDINGS WILL HAVE A MATERIAL ADVERSE
EFFECT ON THE GROUP'S FINANCIAL POSITION OR RESULTS OF OPERATIONS.
5. STOCKHOLDERS' EQUITY:
THE MAJORITY STOCKHOLDERS' EQUITY AS OF JUNE 30, IS ANALYZED AS
FOLLOWS:
2004 2003
----------------------------- ------------------------------
NOMINAL RESTATED NOMINAL RESTATED
PESOS PESOS PESOS PESOS
------------- ------------------------------- ---------------
CAPITAL STOCK ISSUED Ps. 2,524,174 Ps. 9,246,242 Ps. 1,555,065 Ps. 8,016,216
ADDITIONAL PAID-IN CAPITAL 3,841,792 3,938,473 191,412 228,697
LEGAL RESERVE 802,231 1,472,899 622,401 1,290,143
RESERVE FOR REPURCHASE OF SHARES 2,255,655 5,370,967 2,451,331 5,573,984
UNAPPROPRIATED EARNINGS 3,542,282 11,273,239 5,276,914 12,932,833
CUMULATIVE GAIN ON ISSUANCE OF SHARES OF
ASSOCIATES 3,573,907 3,784,979 586,351 750,752
CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (2,792,329) (2,197,681) (2,792,329)
ACUMULATED OTHER COMPREHENSIVE LOSS -- (2,626,911) -- (3,234,932)
NET INCOME FOR THE SIX MONTHS -- 933,883 1,515,190 1,581,345
SHARES REPURCHASED (5,126,948) (6,098,399) (1,609,978) (2,311,071)
-------------- --------------
TOTAL MAJORITY STOCKHOLDERS' EQUITY Ps. 24,503,043 Ps. 22,035,638
============== ==============
IN DECEMBER 2003, THE COMPANY INCREASED ITS CAPITAL STOCK IN THE
AMOUNT OF PS.4,088,840 BY ISSUING 430,307,554 SERIES "A" SHARES AS A
RESULT OF THIS CAPITAL INCREASE, THE COMPANY RECOGNIZED AN ADITIONAL
PAID-IN CAPITAL OF PS.3,709,776. THESE SHARES WERE ACQUIRED IN DECEMBER 31,
2003 BY A COMPANY'S LONG-TERM RETENTION PLAN FOR PARTICIPANT EMPLOYEES.
ON APRIL 16, 2004, THE SHAREHOLDERS OF THE COMPANY APPROVED A DIVIDEND
PAYMENT IN THE AMOUNT OF PS.3,850,000 (NOMINAL), WHICH WAS MADE ON MAY 21
2004, AS FOLLOWS: A DIVIDEND OF PS.1.21982800845 PER CPO, AND A DIVIDEND OF
PS.0.40660933615 PER SERIES "A" SHARE (NOT IN THE FORM OF A CPO).
ON APRIL 16, 2004, THE SHAREHOLDERS OF THE COMPANY APROVED A
RESTRUCTURING OF THE COMPANY'S CAPITAL STOCK ("RECAPITALIZATION"), WHICH
COMPRISES THE FOLLOWING: (I) A STOCK SPLIT IN WHICH EACH OUTSTANDING SHARE
WILL BE DIVIDED INTO 25 SHARES OF THE SAME CLASS; (II) THE CREATION OF A
NEW CLASS OF COMMON OR ORDINARY SHARES, THE SERIES "B" SHARES; (III) A
STOCK DIVIDEND IN THE AMOUNT OF PS.906,114 (NOMINAL), IN WHICH THE COMPANY
WILL DISTRIBUTE, TO HOLDERS OF OUTSTANDING SHARES, 14 NEW SHARES (OF
VARIOUS CLASSES DEPENDING ON THE CLASS HELD) FOR EVERY 25 SHARES
OUTSTANDING AFTER THE STOCK SPLIT; AND (IV) AN INCREASE IN THE NUMBER OF
SHARES REPRESENTED BY EACH OUSTANDING CPO, FROM THREE SHARES TO 117 SHARES.
THE RECAPITALIZATION WILL INCREASE THE NUMBER OF THE COMPANY'S SHARES BY A
FACTOR OF 39 BUT WILL NOT AFFECT THE COMPANY'S TOTAL EQUITY OR DILUTE THE
EQUITY INTEREST OF ANY SHAREHOLDER.
THE FOLLOWING TABLE SUMMARIZES THE EFFECT OF THE STOCK SPLIT AND THE
STOCK DIVIDEND ON A HOLDER OF ONE SHARE OF EACH CLASS OF THE COMPANY'S
CAPITAL STOCK:
14 NEW SHARES
BEFORE THE AFTER THE DISTRIBUTED PER 25 AFTER THE
RECAPITALIZATION RECAPITALIZATION SHARES (POST-SPLIT) RECAPITALIZATION
----------------- ------------------ --------------------- ----------------
ONE "A" SHARE 25 "A" SHARES FOUR "B" SHARES 25 "A" SHARES
FIVE "D" SHARES FOUR "B" SHARES
FIVE "L" SHARES FIVE "D" SHARES
FIVE "L" SHARES
ONE "D" SHARE 25 "D" SHARES NINE "B" SHARES NINE "B" SHARES
FIVE "D" SHARES 30 "D" SHARES
ONE "L" SHARE 25 "L" SHARES NINE "B" SHARES NINE "B" SHARES
FIVE "L" SHARES 30 "L" SHARES
THE NUMBER OF SHARES DISCLOSED IN THESE NOTES DOES NOT REFLECT THE
RECAPITALIZATION OF THE COMPANY'S CAPITAL STOCK, AS THE EFFECTIVE STE FOR
EXCHANGING OLD AND NEW SHARES IS SCHEDULED TO BE MADE ON JULY 26, 2004.
AS OF JUNE 30, 2004, THE NUMBER OF SHARES AUTHORIZED AND ISSUED,
REPURCHASED AND OUTSTANDING IS PRESENTED AS FOLLOWS:
AUTHORIZED
SHARES AND ISSUED REPURCHASED OUTSTANDING
---------------------- ------------------ ---------------- -----------------
SERIES "A" 4,989,449,767 529,316,078 4,460,133,689
SERIES "L" 2,239,549,096 74,892,286 2,164,656,810
SERIES "D" 2,239,549,096 74,892,286 2,164,656,810
------------------ ---------------- -----------------
9,468,547,959 679,100,650 8,789,447,309
================== ================ =================
THE NUMBER OF SHARES REPURCHASED INCLUDE 178,199,058 SHARES IN THE
FORM OF 59,399,686 CPOS AND 24,116,238 SERIES "A" SHARES (NOT IN THE FORM
OF CPOS) BENEFITIALLY OWNED BY A SUBSIDIARY OF THE COMPANY, AS WELL AS
430,307,554 SERIES "A" SHARES (NOT IN THE FORM OF CPOS) WHICH WERE ACQUIRED
BY A COMPANY'S TRUST.
THE NET COST OF THE 679,100,650 SHARES REPURCHASED AND HELD BY THE
GROUP AS OF JUNE 30, 2004, IS PRESENTED AS A CHARGE TO STOCKHOLDERS'
EQUITY, AS FOLLOWS:
REPURCHASE PROGRAM PS. 372,032
OWNED BY A COMPANY'S SUBSIDIARY 3,713,505
ACQUIRED BY A COMPANY'S TRUST 1,837,814
ADVANCE FOR ACQUISITION OF SHARES 175,048
----------------
PS. 6,098,399
================
IN CONNECTION WITH THE COMPANY'S PROGRAM FOR REPURCHASE OF SHARES, IN
THE FIRST HALF OF 2004, THE COMPANY REPURCHASED 46,489,800 SHARES IN THE
FORM OF 15,496,600 CPOS IN THE AMOUNT OF PS.372,105 (PS.371,831 NOMINAL),
AND RESOLD 12,000 SHARES IN THE FORM OF 4,000 CPOS IN THE AMOUNT OF PS.97.
IN THE THIRD QUARTER OF 2003 AND THE SECOND HALF OF 2004, THE GROUP
SOLD 15,000,000 AND 127,584,804 SHARES, RESPECTIVELY, IN THE FORM OF
5,000,000 AND 42,528,268 CPOS, RESPECTIVELY, IN THE AMOUNT OF PS.72,865
(PS.70,128 NOMINAL) AND PS.572,353 (PS.571,121 NOMINAL), RESPECTIVELY, IN
CONNECTION WITH THE COMPANY'S STOCK OPTION PLAN.
6. REPURCHASE OF SHARES:
AS OF JUNE 30, 2004, THE COMPANY MAINTAINS A RESERVE FOR REPURCHASE OF
SHARES, WHICH WAS APPROVED BY THE SHAREHOLDERS OF THE COMPANY IN PRIOR
YEARS BY APPROPRIATING FROM ACCUMULATED EARNINGS THE AMOUNT OF
PS.6,724,057. THIS RESERVE WAS USED IN 1999, 2000 AND 2003 IN THE AMOUNT OF
PS.276,471, PS.618,019 AND PS.458,600, RESPECTIVELY, IN CONNECTION WITH THE
REPURCHASE OF SHARES IN THOSE YEARS.
IN ACCORDANCE WITH THE MEXICAN SECURITIES LAW, ANY AMOUNT OF SHARES
REPURCHASED AND HELD BY THE COMPANY SHOULD BE RECOGNIZED AS A CHARGE TO
STOCKHOLDERS' EQUITY, AND ANY CANCELLATION OF SHARES REPURCHASED SHOULD BE
RECOGNIZED AS A REDUCTION OF THE COMPANY'S CAPITAL STOCK ISSUED FOR AN
AMOUNT PROPORTIONATE TO THE SHARES CANCELLED.
7. INTEGRAL COST OF FINANCING:
INTEGRAL COST OF FINANCING FOR THE SIX MONTHS ENDED JUNE 30, CONSISTED
OF:
2004 2003
--------------- --------------
INTEREST EXPENSE (1) Ps. 768,703 Ps. 679,300
INTEREST INCOME (320,107) (370,358)
FOREIGN EXCHANGE LOSS (GAIN), NET (2) (64,167) 7,973
LOSS FROM MONETARY POSITION (3) 133,721 52,073
--------------- --------------
Ps. 518,150 Ps. 368,988
=============== ==============
(1) INCLUDES RESTATEMENT OF UDIS OF PS.34,236 AND PS.52,262 NET IN 2004
AND 2003, RESPECTIVELY.
(2) NET OF THE GAIN OF PS.185,960 IN 2004 AND OF THE LOSS OF PS.12,598 IN
2003 RESULTING FROM THE FOREIGN EXCHANGE RESULT ATTRIBUTABLE TO
CERTAIN LONG-TERM DEBT SECURITIES WHICH ARE HEDGED BY THE GROUP'S NET
INVESTMENT IN UNIVISION.
(3) THE GAIN OR LOSS FROM MONETARY POSITION REPRESENTS THE EFFECTS OF
INFLATION, AS MEASURED BY THE NPCI IN THE CASE OF MEXICAN COMPANIES,
OR THE GENERAL INFLATION INDEX OF EACH COUNTRY IN THE CASE OF FOREIGN
SUBSIDIARIES, ON THE MONETARY ASSETS AND LIABILITIES AT THE BEGINNING
OF EACH MONTH. INCLUDES MONETARY LOSS IN 2004 AND 2003 OF PS.61,296
AND PS.52,625, RESPECTIVELY, ARISING FROM TEMPORARY DEFFERENCES OF
NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX.
8. DEFERRED TAXES:
THE DEFERRED INCOME TAX LIABILITY AS OF JUNE 30, WAS DERIVED FROM:
2004 2003
-------------- ----------------
ASSETS:
ACCRUED LIABILITIES Ps. 503,829 Ps. 612,653
GOODWILL 833,197 870,603
TAX LOSS CARRYFORWARDS 1,635,724 1,173,738
ALLOWANCE FOR DOUBTFUL ACCOUNTS 365,534 265,962
CUSTOMER ADVANCES 1,604,721 1,240,349
-------------- ---------------
4,943,005 4,163,305
-------------- ---------------
LIABILITIES:
INVENTORIES (1,434,505) (1,894,791)
PROPERTY, PLANT AND EQUIPMENT - NET (1,124,446) (1,018,956)
OTHER ITEMS (270,091) (399,709)
INNOVA ( 1,579,306) (1,391,023)
-------------- ---------------
(4,408,348) (4,704,479)
-------------- ---------------
DEFERRED-INCOME TAXS OF MEXICAN COMPANIES 534,657 (541,174)
DEFERRED TAX OF FOREIGN SUBSIDIARIES (370,984) (376,466)
ASSETS TAX
1,855,702 1,632,687
VALUATION ALLOWANCE (2,888,991) (2,074,627)
-------------- ----------------
DEFERRED INCOME TAX LIABILITY (869,616) (1,359,580)
EFFECT ON CHANGE OF INCOME TAX RATES 88,779 280,722
-------------- ----------------
DEFERRED TAX LIABILITY OF CONTINUING
OPERATIONS Ps. (780,837) Ps. (1,078,858)
============== ================
9. EXTRAORDINARY ITEMS:
NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE
30, 2004 AND 2003.
10. DISCONTINUED OPERATIONS:
NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE
30, 2004 AND 2003.
11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES:
EFFECTIVE APRIL 1, 2004, THE GROUP ADOPTED THE GUIDELINES OF FIN 46,
"CONSOLIDATION OF VARIABLE INTEREST ENTITIES," AS PERMITTED BY MEXICAN GAAP
BULLETIN A-8, "SUPPLEMENTARY APPLICATION OF INTERNATIONAL ACCOUNTING
STANDARDS." FIN 46, WHICH BECAME EFFECTIVE IN 2004, ADDRESSES CONSOLIDATION
BY BUSINESS ENTERPRISES OF VARIABLE INTEREST ENTITIES, OR "VIES". UNDER
PREVIOUS GUIDANCE, A COMPANY GENERALLY INCLUDED ANOTHER ENTITY IN ITS
CONSOLIDATED FINANCIAL STATEMENTS ONLY IF IT CONTROLLED THE ENTITY THROUGH
VOTING INTERESTS. FIN 46 REQUIRES A VARIABLE INTEREST ENTITY TO BE
CONSOLIDATED BY A COMPANY IF THAT COMPANY IS THE "PRIMARY BENEFICIARY" OF
THE ENTITY. THE PRIMARY BENEFICIARY IS SUBJECT TO A MAJORITY OF THE RISK OF
LOSS FROM THE VIES ACTIVITIES, OR IS ENTITLED TO RECEIVE A MAJORITY OF THE
VIES RESIDUAL RETURN, OR BOTH. THE GROUP IDENTIFIED INNOVA AS A VARIABLE
INTEREST ENTITY, AND THE GROUP AS THE PRIMARY BENEFICIARY OF THE INVESTMENT
IN INNOVA, UNDER THE SCOPE OF FIN 46, AND THEREFORE, BEGINNING APRIL 1,
2004, THE GROUP BEGAN TO INCLUDE IN ITS CONSOLIDATED FINANCIAL STATEMENTS
THE ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF INNOVA. BEFORE
ADOPTING FIN 46, THE GROUP ACCOUNTED FOR ITS INVESTMENT IN INNOVA BY
APPLYING THE EQUITY METHOD, AND RECOGNIZED EQUITY IN LOSSES IN EXCESS OF
ITS INVESTMENT UP TO THE AMOUNT OF THE GUARANTEES MADE BY THE GROUP IN
CONNECTION WITH CERTAIN CAPITAL LEASE OBLIGATIONS OF INNOVA.
AS A RESULT OF THIS ACCOUNTING CHANGE, THE GROUP RECOGNIZED AT APRIL
1, 2004, A CONSOLIDATED CUMULATIVE LOSS EFFECT OF PS.991,953, NET OF INCOME
TAX IN THE AMOUNT OF PS.293,987, IN ITS CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004, IN CONNECTION WITH
INNOVA'S ACCUMULATED LOSSES NOT RECOGNIZED BY THE GROUP IN 2001, 2002, 2003
AND THE FIRST QUARTER OF 2004.
NO CUMULATIVE EFFECT OF ACCOUNTING CHANGE WAS RECOGNIZED IN INCOME FOR
THE SIX MONTHS ENDED JUNE 30, 2003.
12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED):
THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED JUNE 30, 2004,
ARE AS FOLLOWS:
HISTORICAL NET RESULT (1) RESTATED NET RESULT
-------------------------------- ---------------------------------
INDEX AT END
QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER
-------------------- ----------------- -------------- -------------- --------------- ---------------
3 / 03 Ps. 2,217,022 Ps. 686,024 105.275 Ps. 2,289,929 Ps. 708,583
4 / 03 3,596,603 1,343,339 106.996 3,655,123 1,365,195
1 / 04 472,041 472,041 108.672 472,323 472,323
2 / 04 933,883 461,560 108.737 933,883 461,560
(1) AS REPORTED IN EACH QUARTER.
13. INFORMATION BY SEGMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003,
WERE AS FOLLOWS:
TOTAL INTERSEGMENT CONSOLIDATED OPERATING
REVENUES REVENUES REVENUES INCOME (LOSS)
------------- -------------- -------------- ---------------
2004:
TELEVISION BROADCASTING Ps. 7,186,502 Ps. 105,369 7,081,133 2,622,440
PROGRAMING FOR PAY TELEVISION 362,046 73,192 288,854 111,122
PROGRAMING LICENSING 937,759 - 937,759 360,353
PUBLISHING 901,801 189 901,612 148,345
PUBLISHING DISTRIBUTION 917,776 3,964 913,812 (16,243)
SKY MEXICO 1,174,200 8,477 1,165,723 236,781
CABLE TELEVISION 544,309 1,680 542,629 92,216
RADIO 120,514 23,837 96,677 (2,946)
OTHER BUSINESSES 818,202 55,924 762,278 (93,279)
ELIMINATIONS AND CORPORATE
EXPENSES (272,632) (272,632) - (76,500)
-------------- -------------- -------------- ---------------
CONSOLIDATED TOTAL Ps. 12,690,477 Ps. - Ps. 12,690,477 Ps. 3,382,289
============== ============== ============== ===============
2003:
TELEVISION BROADCASTING Ps. 6,952,947 Ps. 26,380 Ps. 6,926,567 Ps. 2,363,413
PROGRAMING FOR PAY TELEVISION 338,021 28,882 309,139 47,194
PROGRAMING LICENSING 867,127 - 867,127 300,471
PUBLISHING 812,754 863 811,891 135,295
PUBLISHING DISTRIBUTION 767,619 3,223 764,396 (3,615)
SKY MEXICO - - - -
CABLE TELEVISION 500,616 3,011 497,605 58,470
RADIO 123,001 23,959 99,042 1,419
OTHER BUSINESSES 776,443 55,929 720,514 (161,249)
ELIMINATIONS AND CORPORATE
EXPENSES (142,247) (142,247) - (79,181)
-------------- -------------- -------------- ---------------
CONSOLIDATED TOTAL Ps. 10,996,281 Ps. - Ps. 10,996,281 Ps. 2,662,217
============== ============== ============== ===============
14. REFINANCING:
IN MAY 2004, THE COMPANY ENTERED INTO A LONG-TERM CREDIT AGREEMENT
WITH A MEXICAN BANK IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.1,162.5
MILLION, WHICH MATURES IN 2009. THE ANNUAL INTEREST RATE OF THIS
INDEBTEDNESS EQUALS 9.70% AND IS PAYABLE ON A MONTHLY BASIS. THE PROCEEDS
OF THIS LOAN WERE USED BY THE COMPANY TO PREPAY ALL OF THE OUTSTANDING
AMOUNTS OF THE U.S.$100 MILLION SYNDICATED LONG-TERM LOAN, WHICH ORIGINALLY
MATURED IN 2005 AND 2006.
15. DIVESTITURE OF MINORITY INTEREST INVESTMENT
IN APRIL 2004, THE COMPANY SOLD ITS 30% MINORITY INTEREST IN GRUPO
EUROPRODUCCIONES, S.A., A TELEVISION PROGRAMMING PRODUCER IN SPAIN, IN THE
AGGREGATE AMOUNT OF APPROXIMATELY 7,505 MILLION EUROS (PS.105,767) IN CASH.
AS A RESULT OF THIS DISPOSAL, THE COMPANY RECOGNIZED A NET LOSS OF
APPROXIMATELY 8,030 MILLION EUROS (PS.113,159) AS OTHER EXPENSE IN ITS
CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2004.
- - - - - - - - -
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
RELATION OF SHARES INVESTMENTS
ANNEX 3 CONSOLIDATED
FINAL PRINTING
---------------------------------------------------------------------------------------------------------------------------------
% TOTAL AMOUNT
OWNERSHIP (THOUSANDS OF PESOS)
NUMBER --------------------------------
COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION PRESENT
COST VALUE (3)
---------------------------------------------------------------------------------------------------------------------------------
SUBSIDIARIES
1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND 19,509,544 100.00 1,836,819 1,779,891
S.A. DE C.V. DEVELOPMENT OF
COMPANIES
2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND 10,660,871 100.00 1,367,744 574,561
DEVELOPMENT OF
COMPANIES
3 DTH EUROPA, S.A. PROMOTION AND 465,711 79.95 264,460 (527,240)
DEVELOPMENT OF
COMPANIES
4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND 527,908,167 100.00 1,765,630 1,583,996
DEVELOPMENT OF
COMPANIES
5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND 1,037,498 100.00 823,582 1,583,085
DEVELOPMENT OF
COMPANIES
6 FACTUM MAS, S.A. DE C.V. PROMOTION AND 5,271,100,701 100.00 4,585,127 (385,886)
DEVELOPMENT OF
COMPANIES
7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS 349,470,905 100.00 822,778 575,606
S.A. DE C.V. AND MAGAZINES
8 GRUPO RADIOPOLIS, S.A. DE C.V. PROMOTION AND 418,881,301 100.00 342,274 8,155,256
DEVELOPMENT OF
COMPANIES
9 PROMO-INDUSTRIAS PROMOTION AND 515,523 100.00 102 60,928
METROPOLITANAS, S.A. DE C.V. DEVELOPMENT OF
COMPANIES
10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF 76,070,313 50.00 764,739 200,744
RADIO PROGRAMMING
11 TELEPARABOLAS, S.L. MAINTENANCE OF 1,500 100.00 750 809
PARABOLIC DISHES
12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF 160,721,725 100.00 11,901,180 20,697,633
TELEVISION
13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION 6,920,920 100.00 115,371 45,781
OF TELEVISION
15 TELEVISION INDEPENDIENTE DE PROMOTION AND 16,997,306 99.96 1,265,724 4,907,569
MEXICO, S.A. DE C.V. DEVELOPMENT OF
COMPANIES
16 CAPITALIZED INTEGRAL COST OF 1 210,971
FINANCING, 1994
17 CAPITALIZED INTEGRAL COST OF 1 389,386
FINANCING, 1995
18 CAPITALIZED INTEGRAL COST OF 1 26,957
FINANCING, 1996
19 CAPITALIZED INTEGRAL COST OF 1 21,676
FINANCING, 1998
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SUBSIDIARIES 25,856,280 39,901,723
---------------------------------------------------------------------------------------------------------------------------------
ASSOCIATEDS
1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR 33,000,000 15.30 137,000 21,288
BROADCASTING OF T.V.
2 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF 1,735,560 49.00 4,384 747
DIAMEX, S.A. DE C.V. ANIMATED CARTOONS
3 DTH TECHCO PARTNERS SERVICES FOR SATELLITE 1 30.00 117,900 159,758
PAY TELEVISION
4 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING 2,627,050 30.00 26,270 14,021
S.A. DE C.V. OF BOOKS AND
MAGAZINES.
5 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF 1,635,000 50.00 1,635 17,411
TELEVISION
PROGRAMMING
6 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN 2 100.00 25 (4,466)
DE C.V. MEXICO
7 MAS FONDOS, S.A. DE C.V. MUTUAL FUND DISTRIBUTION 87,659 46.00 87,659 58,881
COMPANY
8 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN 14,100,000 40.00 1,095,581 485,853
C.V. MEXICO
9 SKY LATIN AMERICA PARTNERS ADMINISTRATIVE SERV. 1 30.00 1,974 11,117
FOR THE DTH VENTURES
10 TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR 4,124,986 15.00 412 6,563
BROADCASTING OF T.V.
11 TUTV, LLC COMMERCIALIZATION OF 1 50.00 25,752 20,619
TELEVISION PROGRAMMING
12 UNIVISION COMMUNICATIONS, INC. BROADCASTING OF T.V. 30,187,534 9.36 5,602,976 5,761,842
SPANISH PROGRAMS
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN ASSOCIATEDS 7,101,568 6,553,634
---------------------------------------------------------------------------------------------------------------------------------
OTHER PERMANENT INVESTMENTS 324,813
---------------------------------------------------------------------------------------------------------------------------------
TOTAL 46,780,170
---------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA ANNEX 5 QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CREDIT BREAK DOWN
(Thousands of Pesos)
-----------------------------------------------------------------------------------------------------------------------------------
Denominated Amortization of Credits in
-----------------------------
In Pesos Time Interval
--------------------------------------------------------------
Credit Type / Institution Amortization Rate of Until 1 More Than Current Until 1
Date Interest Year 1 Year Year Year
-----------------------------------------------------------------------------------------------------------------------------------
BANKS
-----------------------------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL ENTITIES
BANAMEX, S.A. 5/21/2009 9.70 1,162,460
BANAMEX, S.A. 5/1/2008 8.93 40,000 720,000
BANCA SERFIN, S.A. 5/15/2006 8.07 64,000 64,000
BNP PARIBAS 1/20/2009 2.29
BANAMEX, S.A. 7/24/2004 7.69 38,156
BANK OF AMERICA 3/31/2010 2.61
SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.53
BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86
LEASING DE COLOMBIA 9/23/2006 13.14
LEASING DE OCCIDENTE 3/19/2005 13.87
LEASING DE OCCIDENTE 4/29/2007 17.62
SANTANDER CENTRAL HISPANO LEASING, S.A. 1/24/2006 14.74
LEASING DEL VALLE 1/14/2005 14.40
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 142,156 1,946,460 - -
-----------------------------------------------------------------------------------------------------------------------------------
STOCK EXCHANGE
PRIVATE PLACEMENTS
-----------------------------------------------------------------------------------------------------------------------------------
UNSECURED DEBT
----------------------------------------
HOLDERS 5/13/2006 12.49
HOLDERS 8/8/2005 9.07
HOLDERS 9/13/2011 8.41
HOLDERS 3/11/2032 8.94
HOLDERS 4/1/2007 13.54
HOLDERS 9/19/2013 9.86
UDI DENOMINATED-NOTES 4/13/2007 8.15 3,705,056
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK EXCHANGE - 3,705,056 - -
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 666,778 1,157,450
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS 666,778 - - 1,157,450
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES
AND OTHER CREDITS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 1,191,683 58,382 730,094
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER CURRENT LIABILITIES
AND OTHER CREDITS 1,191,683 58,382 730,094
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
2,000,617 5,709,898 - 1,887,544
-----------------------------------------------------------------------------------------------------------------------------------
NOTES
THE BANCO NACIONAL DE MEXICO LOAN WAS REFINACED IN JULY 2000, AND
THE MATURITY OF SUCH LOAN AND INTEREST PAYABLE WERE CHANGED AS RE-
FLECTED IN THIS SCHEDULE.
THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY
WERE AS FOLLOWS :
$ 11.5370 PESOS PER U.S. DOLLAR
0.0042 PESOS PER COLOMBIAN PESO
14.0926 PESOS PER EURO
[TABLE CONT'D]
---------------------------------------------------------------------------------------------------------------------------------
Foreign Currency With National Entities (Thousands of $) Amortization of Credits in Foreign Currency With Foreign Entities
---------------------------------------------------------------------------------------------------------------------------------
Time Interval
---------------------------------------------------------------------------------------------------------------------------------
Until 2 Until 3 Until 4 Until 5 Current Until 1 Until 2 Until 3 Until 4
Year Year Year Year Year Year Year Year Year
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
5,355 5,354 10,708 10,708 7,321
289 289 578 578 578
216 4,615 4,615 4,615 4,398
2,072 1,355 1,295
255 222 417 81
289 289
86 85 172 142
12 11 65
8 7
---------------------------------------------------------------------------------------------------------------------------------
- - - - 8,582 12,227 17,850 16,124 12,297
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
61,642
2,307,400
1,015,256
---------------------------------------------------------------------------------------------------------------------------------
- - - - - - 2,369,042 1,015,256 0
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
- - - - - 359,966 - - -
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
519,956 33,578 119,580 170,980 86,917 97,455
---------------------------------------------------------------------------------------------------------------------------------
519,956 33,578 119,580 170,980 86,917 97,455
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
519,956 - - - 42,160 491,773 2,557,872 1,118,297 109,752
---------------------------------------------------------------------------------------------------------------------------------
[TABLE CONT'D]
CONSOLIDATED
FINAL PRINTING
-----------------------
(Thousands of $)
-----------------------
-----------------------
Until 5
Year
-----------------------
-----------------------
4,105
29,987
-----------------------
34,092
-----------------------
------------------------
3,461,100
3,461,100
3,461,100
------------------------
10,383,300
------------------------
------------------------
------------------------
------------------------
-
------------------------
------------------------
------------------------
1,146,474
------------------------
1,146,474
------------------------
------------------------
11,563,866
------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Pesos)
ANNEX 6 CONSOLIDATED
Final Printing
-------------------------------------------------------------------------------------------------------------------------------
DOLLARS (1) OTHER CURRENCIES
--------------------------------------------------------------------- TOTAL
TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS
OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS
----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 628,316 7,248,882 37,755 435,579 7,684,461
LIABILITIES POSITION 1,564,889 18,054,124 25,347 292,428 18,346,552
SHORT-TERM LIABILITIES POSITION 190,700 2,200,106 23,984 276,703 2,476,809
LONG-TERM LIABILITIES POSITION 1,374,189 15,854,018 1,363 15,725 15,869,743
----------------------------------------------------------------------------------------------------------------------------
NET BALANCE (936,573) (10,805,242) 12,408 143,151 (10,662,091)
----------------------------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS :
$ 11.5370 PESOS PER U.S. DOLLAR
14.0926 PESOS PER EURO
3.8976 PESOS PER ARGENTINEAN PESO
0.0179 PESOS PER CHILEAN PESO
0.0042 PESOS PER COLOMBIAN PESO
3.3219 PESOS PER PERUVIAN NUEVO SOL
20.9851 PESOS PER POUNDS STERLING
11.5370 PESOS PER ECUADORIAN SUCRE
THIS INFORMATION IS REPRESENTED ON A CONSOLIDATED BASIS AND INCLUDES,
ACCORDINGLY, INFORMATION OF FOREIGN SUBSIDIARIES.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
INTEGRATION AND INCOME
CALCULATION BY MONETARY POSITION (1)
(Thousands of Pesos)
ANNEX 7 CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------
(ASSET) LIABILITIES MONTHLY
MONTH MONETARY MONETARY MONETARY MONTHLY PROFIT
ASSETS LIABILITIES POSITION INFLATION AND (LOSS)
-----------------------------------------------------------------------------------------------------------------------------
JANUARY 28,435,606 22,176,571 (6,259,035) 0.01 (38,900)
FEBRUARY 27,713,141 20,084,504 (7,628,637) 0.01 (45,627)
MARCH 26,256,111 21,431,109 (4,825,002) 0.00 (16,347)
APRIL 28,415,500 34,291,191 5,875,691 0.00 8,866
MAY 28,545,301 37,295,647 8,750,346 0.00 (21,946)
JUNE 22,597,252 32,956,030 10,358,778 0.00 15,549
ACTUALIZATION: - (612)
CAPITALIZATION: - -
FOREIGN CORP.: - 24,034
OTHER - (58,738)
-----------------------------------------------------------------------------------------------------------------------------
TOTAL (133,721)
-----------------------------------------------------------------------------------------------------------------------------
NOTES
THE AMOUNT REFLECTED IN "OTHER" INCLUDES A LOSS FROM MONETARY
POSITION DERIVED FROM DEFERRED TAXES, WHICH WAS CLASSIFIED IN
THE DEFERRED INCOME TAX PROVISION IN ACCORDANCE WITH THE
GUIDELINES PROVIDED BY BULLETIN D-4 FOR DEFERRED TAXES.
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
CONVENANTS ON BONDS AND MEDIUM TERM NOTES LISTED IN STOCK MARKET
ANNEX 8 CONSOLIDATED
Final Printing
-------------------------------------------------------------------------------
FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE
-------------------------------------------------------------------------------
THE AGREEMENTS OF THE U.S.$200 MILLION, U.S.$300 MILLION AND U.S.$300
MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A. WITH MATURITY IN
2005, 2011 AND 2032, RESPECTIVELY, CONTAIN CERTAIN COVENANTS THAT
LIMIT THE ABILITY OF THE COMPANY AND ITS SUBSIDIARIES ENGAGED IN
TELEVISION OPERATIONS TO INCUR OR ASSUME LIENS, PERFORM SALE AND
LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS
OR SIMILAR TRANSACTIONS.
THE AGREEMENTS OF THE U.S.$88 MILLION SENIOR NOTES AND THE U.S.$300
MILLION SENIOR NOTES ISSUED BY INNOVA, S. DE R.L. DE C.V. ("INNOVA")
WITH MATURITY IN 2007 AND 2013, RESPECTIVELY, CONTAIN CERTAIN
COVENANTS THAT LIMIT THE ABILITY OF INNOVA AND ITS RESTRICTED
SUBSIDIARIES WITH RESPECT TO INDEBTEDNESS, LIENS, SALES AND
LEASEBACKS, RESTRICTED PAYMENTS, ASSET SALES, AND CERTAIN MERGERS,
CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
-------------------------------------------------------------------------------
ACTUAL SITUATION OF FINANCIAL LIMITED
-------------------------------------------------------------------------------
AT JUNE 30, 2004, THE GROUP WAS IN COMPLIANCE WITH THE FINANCIAL
RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES
DESCRIBED ABOVE.
--------------------------------------------
C.P. JORGE LUTTEROTH ECHEGOYEN
CONTROLLER, VICE-PRESIDENT
MEXICO, D.F. JULY 26, 2004
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 CONSOLIDATED
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------
PLANT OR CENTER ECONOMIC ACTIVITY PLANT UTILIZATION
CAPACITY (1) (%)
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
TELEVISION: 0 0
CORPORATIVO SANTA FE HEADQUARTERS 0 0
TELEVISA SAN ANGEL PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
TELEVISA CHAPULTEPEC PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
REAL ESTATE LAND AND UNOCCUPIED, BUILDING, 0 0
PARKING LOTS, ADMINISTRATIVE 0 0
OFFICES, RADIO ANTENNAS, 0 0
TELEVISION STATIONS FACILITIES. 0 0
TRANSMISSION STATIONS BROADCASTER STATIONS. 0 0
PUBLISHING: 0 0
EDITORIALS ADMINISTRATION, SALES, PRODUCTION, 0 0
STORAGE AND DISTRIBUTION OF 0 0
MAGAZINES AND NEWSPAPERS. 0 0
AUDIO: 0 0
SISTEMA RADIOPOLIS, S.A. DE C BROADCASTER STATIONS. 0 0
CABLE TELEVISION: 0 0
CABLEVISION, S.A. DE C.V. CABLE TELEVISION, SIGNAL CONDUCTION 0 0
AND TRANSMISSION EQUIPMENT. 0 0
OTHER BUSINESSES: 0 0
IMPULSORA DEL DEPORTIVO SOCCER, SOCCER TEAMS, TRAINING 0 0
NECAXA, S.A. DE C.V. AND CLUB FACILITIES, ADMINISTRATIVE OFFICES AND 0 0
DE FUTBOL AMERICA, S.A. DE C. THE AZTECA STADIUM. 0 0
COMUNICACIONES MTEL, S.A. DE NATIONWIDE PAGING. 0 0
0 0
0 0
0 0
----------------------------------------------------------------------------------------------------------------------------
NOTES
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
MAIN RAW MATERIALS
ANNEX 10 CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
(%)
-----------------------------------------------------------------------------------------------------------------------------------
PROGRAMS AND FILMS ANIME CREATIVE
CORPORATION 0.13
CIMA FILMS, S.A.
DE C.V. 0.09
CINEMATOGRAFICA
CALDERON, S.A. 0.11
CINEMATOGRAFICA
RODRIGUEZ, S.A. 0.21
COMAREX, S.A.
DE C.V. 0.10
CHURUBUSCO, S.A. 0.11
DIANA INTERNACIO
NAL FILMS, S.A. 0.13
DISTRIBUIDORA RO
MARI, S.A. DE C.V. 1.57
GUIAS, S.A. DE C.V. 0.43
GUSSI, S.A. DE C.V. 3.81
NUVISION, S.A. 0.57
ORO FILMS,
S.A. DE C.V. 0.29
PELICULAS RODRI
GUEZ, S.A. 0.72
PELICULAS Y VI
DEOS INTERNACIO
NALES, S.A. 0.11
PRODUCCIONES
AGUILA,S.A. 0.27
PRODUCCIONES
GONZALO ELVIRA 0.18
QUALITY FILMS, S.A. 0.03
SECINE, S.A. DE C.V. 0.17
TELE ALIANZA,
S.A. DE C.V. 0.07
OTHER 0.34
PROGRAMS AND FILMS 4KIDS ENTERTAIN-
MENT NO 0.22
ABC DISTRIBUTION
COMPANY NO 0.59
ALFRED HABER
DISTRIBUTION, INC. NO 0.48
ALLIANCE
INTERNATIONAL NO 1.09
AMERICA PRO-
DUCCIONES, S.A. NO 3.44
BETAFILM GMBH
& CO. NO 0.60
BEVERLY HILLS
ENTERTAINMENT NO 0.33
BKN INTERNA-
CIONAL,INC. NO 0.24
BUENAVISTA
INTERNATIONAL
INC. NO 0.27
CANAL + DA NO 0.18
CARSEY WERNER
DISTRIBUTION,INC. NO 0.25
CBS BROADCAST
INTERNATIONAL NO 2.41
CDC UNITED
NETWORK NO 0.08
CINAR FILMS, INC. NO 0.11
CONSTELLATION
PICTURES, INC. NO 2.16
CROWN MEDIA
DISTRIBUTION NO 0.10
DREAMWORKS NO 1.27
EVERGREEN ENTER
TAINMENT GLOBAL NO 0.17
FIREWORKS INTER-
NATIONAL NO 0.42
FREMANTLE INTER-
NATIONAL DISTRI-
BUTION, LTD. NO 0.26
GLOBAL PROGRA
MMING NETWORK NO 0.41
GMD GLOBAL
MEDIA DISTRIBU-
TIONS NO 0.12
HARMONY GOLD
USA, INC. NO 0.22
HEARTS ENTER
TAINMENT, INC. NO 0.65
HIT ENTERTAIN-
MENT PLC. NO 0.17
INDEPENDENT
INTERNATIONAL
T.V. INC. NO 2.48
ITSY BITSY
ENTERTAINMENT NO 0.58
KUSHNER-LOCKE
INTERNATIONAL NO 0.51
MATTEL EURO
PA, BV. NO 0.14
MGM/UA TELECOM
MUNICATIONS, INC. NO 3.06
MORGAN CREEK
INTERNATIONAL NO 0.20
MOVIEMEX INTER-
NATIONAL, INC. NO 0.03
MTV NETWORKS A
DIVISION OF VIACOM
INT. NO 1.14
MULTIMEDIA GROUP
OF CANADA NO 0.39
NBC INTERNATIONAL NO 0.10
NELVANA INTER-
NATIONAL NO 0.33
NEW LATIN IMAGE
CORPORATION NO 0.05
NGTV INTERNATIO-
NAL, LTD. NO 0.07
PARAMOUNT
PICTURES , CORP. NO 4.64
POKEMON USA,
INC. NO 0.20
PROTELE, INC. NO 4.29
RCN TELEVISION,
S.A. NO 0.61
REPRESENTA-
CIONES DE TELE-
VISION NO 0.18
ROSE ENTERTAIN-
MENT, INC. NO 0.75
RYSHER ENTER-
TAINMENT, INC. NO 0.39
SALSA
DISTRIBUTION NO 0.16
SALSA ENTER
TAINMENT,INC. NO 1.07
SONY CORPORA-
TION OF AMERICA NO 7.55
STUDIO CANAL
IMAGE NO 0.31
TELEVISION FILM
DISTRIBUTION NO 0.77
TEPUY INTER
NATIONAL, INC. NO 0.38
TOEI ANIMATION
CO., LTD NO 0.85
TOP ENTERTAINMENT
PRODUCTS, INC. NO 0.11
TWENTIETH CEN-
TURY FOX, INC. NO 6.33
UNIVERSAL STUDIOS
INTERNATIONAL, B.V. NO 14.14
VENTURA FILM
DISTRIBUTORS BV NO 1.01
WARNER BROS.
INTERNATIONAL
TELEVISION NO 13.74
WHILAND COMPANY NO 4.77
WORDLDIVISION
ENTERPRISES, INC. NO 4.08
XYSTUS, LLC. NO 0.34
ZACH MOTION
PICTURES,INC. NO 0.09
OTHER 0.98
COAXIAL CABLE RG NACIONAL DE
CONDUCTORES,
S.A. DE C.V. 0.04
SINGLE TELEGRIP CORPODISENO DE
HERRAJES, S.A. 0.01
IDENTIFICATION PLAQUE RIVANDI, S.A. DE C.V. 0.10
COAXIAL CABLE RG
MAYA 60 MOTOROLA, INC. 21.97
HILTI BOLT HILTI MEXICANA,
S.A. DE C.V. NO 0.05
SWITCH CABLENETWORK
MEXICO NO 0.02
SWITCH DISTRIBUIDORA Y
COMERCIALIZADORA YES 0.24
TWO OUTLET DEVICE AC 20TVC CORPORATION YES 0.05
DECODIFICADOR MOTOROLA,INC. NO 46.93
COUCHE PAPER PAPELERA MOHGA
BBA, S.A. 0.40
SUMINISTROS Y
SERVICIOS BROM 0.72
PRESENTACIONES
MREAL 0.03
PRODUCTORA
COMERCIALIZA
DORA Y EDITORA 0.91
COUCHE PAPER BOWARWE,
INC. YES 0.27
STORAM ENSON YES 11.76
UPM KYMMENE SEAS YES 7.40
BULKLEY DUNKE YES 1.46
M REAL YES 1.26
MYLLLIKOSKI
PAPEL YES 3.87
TEMBEC,INC. YES 0.46
BULKLEY DUNTON YES 14.42
FINNIPAP YES 8.02
WEB SOURCE YES 0.35
BOWATER,INC. YES 0.82
NORKE CANADA YES 0.60
PAPER AND IMPRESSION PRODUCTORA CO
MERCIALIZADORA Y
EDITORES DE LI
BROS , S.A. DE C.V. 12.26
OFFSET
MULTICOLOR 15.24
IMPRESOS MOINO 1.04
PROCESOS IND
DE PAPEL, S.A. 2.02
GRAFICAS LA
PRENSA, SA DE CV 0.19
LABORATORIO LITO
COLOR, S.A. 0.04
SERVICIOS PROFE
SIONALES, S.A. 0.14
PAPER AND IMPRESSION QUEBECOR
CHILE, S.A. YES 2.65
QUEBECOR
WORLD, INC. YES 0.10
GRUPO OP GRAFICAS
S.A. YES 0.30
PRINTER COLOMBIA YES
NA, S.A. YES 0.63
ST. IVES, INC. YES 7.40
BEST LITHO YES 0.39
EDITORES, S.A. 0.14
RR DONELLY 2.61
QUAD GRAPHICS YES 2.05
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
GRUPO TELEVISA, S.A.
SALES DISTRIBUTION BY PRODUCT
ANNEX 11
DOMESTIC SALES
----------------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION NET SALES MARKET MAIN
------------------------------------------------------ ---------------------------
MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT SHARE TRADEMARKS
(%)
----------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS (268,968)
TELEVISION:
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC) 54
ADVERTISED TIME SOLD (HALF HOURS) 3 6,841,063
OTHER INCOME 56,954
PROGRAMMING FOR PAY TELEVISION:
SALE OF SIGNALS 268,203
ADVERTISED TIME SOLD 42,130
PUBLISHING:
MAGAZINE CIRCULATION 60,531 526,436 27,127 332,072 TV Y NOVELAS MAGAZINE,
TELEGUIA MAGAZINE,
VANIDADES MAGAZINE
COSMOPOLITAN MAGAZINE
BIOGRAPHICAL BOOKS
SOCCERMANIA MAGAZINE
TU MAGAZINE
MEN'S HEALTH MAGAZINE
CARAS MAGAZINE
MUY INTERESANTE MAGAZINE
PUBLISHING 243,915
PUBLISHING DISTRIBUTION: 7,579 225,669 MAGAZINE:
"MAESTRA PREESCOLAR"
"EL EGIPTO DE LOS FARAONES"
"FABULA DISNEY"
"REVISTA DEL CONSUMIDOR"
"MAESTRA DE PRIMARIA"
SKY MEXICO:
DTH BROADCAST SATELLITE
PAY TELEVISION 1,102,218 SKY
PAY PER VIEW 59,078
CHANNEL COMMERCIALIZATION 12,904
CABLE TELEVISION:
ANALOGIC AND DIGITAL SERVICE 513,191
SERVICE INSTALLATION 13,865
PAY PER VIEW 916
CHANNEL COMMERCIALIZATION 10,219
OTHER 6,118
RADIO:
ADVERTISED TIME SOLD 120,514
OTHER BUSINESSES:
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS 394,984
SPECIAL EVENTS AND SHOW PROMOTION 282,641 AMERICA
NECAXA
REAL SAN LUIS
NATIONWIDE PAGING SERVICE 88,818 SKYTEL
INTERNET SERVICES 37,856 ESMAS.COM
----------------------------------------------------------------------------------------------------------------------------------
TOTAL 526,436 10,384,360
----------------------------------------------------------------------------------------------------------------------------------
[TABLE CONT'D]
QUARTER: 2 YEAR: 2004
CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------
-----------------------------------------------------------
CUSTOMERS
-----------------------------------------------------------
PROCTER & GAMBLE DE MEXICO, S.A. DE C.V.
PROCTER & GAMBLE DE MEXICO, S.A. DE C.V.
THE COCA-COLA EXPORT COMPANY.
UNILEVER DE MEXICO, S.A. DE C.V.
SABRITAS, S. DE R.L. DE C.V.
BIMBO, S.A. DE C.V.
PEPSI COLA MEXICANA, S.A. DE C.V.
CERVECERIA MODELO, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
DANONE DE MEXICO, S.A. DE C.V.
NESTLE MEXICO, S.A. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
PRODUCCIONES INFOVISION, S.A. DE C.V.
KELLOGG COMPANY MEXICO, S. DE R.L. DE C.V.
GENERAL MOTORS DE MEXICO, S. DE R.L. DE C.V.
FRABEL, S.A. DE C.V.
GENERAL PUBLIC (AUDIENCE)
DEALERS
COMMERCIAL CENTERS (MALLS)
VARIOUS
GENERAL PUBLIC
GENERAL PUBLIC
OPERADORA MEGACABLE, S.A. DE C.V.
CERVECERIA MODELO, S.A. DE C.V.
GRUPO WARNER LAMBERT MEXICO, S. DE R.L. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
DAIMLERCHRYSLER DE MEXICO, S.A. DE C.V.
FORD MOTOR COMPANY, S.A. DE C.V.
BRISTOL MYERS SQUIBB DE MEXICO, S. DE R.L. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
BANCO NACIONAL DE MEXICO, S.A.
ARENA COMMUNICATIONS, S.A. DE C.V.
BAYER DE MEXICO, S.A. DE C.V.
SONY DE MEXICO, S.A. DE C.V.
CERVECERIA MODELO, S.A. DE C.V.
ARENA COMMUNICATIONS, S.A. DE C.V.
VENTAS Y SERVICIOS AL CONSUMIDOR, S.A. DE C.V.
PEGASO PCS, S.A. DE C.V.
GIGANTE, S.A. DE C.V.
NEXTEL DE MEXICO, S.A. DE C.V.
COMERCIAL MEXICANA
GENERAL MOTORS DE MEXICO, S. DE R.L. DE C.V.
ALESTRA, S. DE R.L. DE C.V.
DISTRIBUIDORA KROMA, S.A. DE C.V.
CINEMAS DE LA REPUBLICA, S.A. DE C.V.
CINEMEX, S.A. DE C.V.
CINEMARK DE MEXICO, S.A. DE C.V.
CINEPOLIS DEL PAIS, S.A. DE C.V.
MULTIMEDIOS CINEMAS, S.A. DE C.V.
GENERAL PUBLIC (AUDIENCE)
GENERAL PUBLIC (AUDIENCE)
FEDERACION MEXICANA DE FUTBOL, A.C.
FERROCARRIL MEXICANO, S.A. DE C.V.
BANCO NACIONAL DE MEXICO, S.A.
HEWLETT PACKARD DE MEXICO, S. DE R.L. DE C.V.
COMISION FEDERAL DE ELECTRICIDAD
EDS DE MEXICO, S.A. DE C.V.
AVANTEL, S.A.
FERROSUR, S.A. DE C.V.
SECRETARIA DE GOBERNACION
SCHERING PLOUGH, S.A. DE C.V.
BBVA BANCOMER, S.A.
GRUPO NACIONAL PROVINCIAL, S.A.
I.B.M. DE MEXICO, S.A.
MEDIA CONTACTS, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
MOTOROLA DE MEXICO, S.A.
NESTLE MEXICO, S.A. DE C.V.
-----------------------------------------------------------
-----------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
GRUPO TELEVISA, S.A.
SALES DISTRIBUTION BY PRODUCT
ANNEX 11A
FOREIGN SALES
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION NET SALES
---------------------------------------------------------------------------------
MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT DESTINATION
------------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS (3,664)
TELEVISION BROADCASTING:
ADVERTISING TIME SOLD 232,085 UNITED STATES OF AMERICA
OTHER INCOME 56,400 UNITED STATES OF AMERICA
PROGRAMMING FOR PAY TELEVISION:
SALES OF SIGNALS 51,713 SPAIN
ARGENTINA
CHILE
GUATEMALA
COLOMBIA
PROGRAM LICENSING:
PROGRAMMING AND ROYALTIES 937,759 UNITED STATES OF AMERICA
CENTRAL AMERICA
CARIBBEAN
EUROPE
SOUTH AMERICA
AFRICA
ASIA
PUBLISHING:
MAGAZINE CIRCULATION, BOOKS AND
ADVERTISING 12,565 198,079 GUATEMALA AND COSTA RICA
UNITED STATES OF AMERICA
PANAMA
SOUTH AMERICA
CENTRAL AMERICA
PUBLISHING 127,735
PUBLISHING DISTRIBUTION: 7,082 692,107 PANAMA
SOUTH AMERICA
OTHER BUSINESSES: 13,903
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 2,306,117
------------------------------------------------------------------------------------------------------------------------------------
[TABLE CONT'D]
QUARTER: 2 YEAR: 2004
CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------
MAIN
------------------------------------------------
TRADEMARKS CUSTOMERS
-----------------------------------------------------
RCN TELEVISION
POWERCORP B.V.
THOMSON BROADCASTING AND MEDIA SOLUTIONS
MASTER CARD INTERNATIONAL GLOBAL MARKETING
CHEIL COMMUNICATIONS, INC.
REYNOLDS CONSUMER PRODUCTS
TELEVISA MCCANN ERICKSON, INC.
TELEVISA MINDSHARE
TELEVISA DAILY AND ASSOCIATES
TELEVISA SPOTPLUS
TELEVISA CARAT, INC.
TELEVISA HORIZON MEDIA, INC.
TELEVISA GREY ADVERTISING, INC.
INITIATIVE MEDIA, INC.
GSD&M ADVERTISING
TBWA CHIAT
T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
BIOGRAPHICAL BOOKS DEALERS
VANIDADES MAGAZINE
COSMOPOLITAN MAGAZINE
TU MAGAZINE
BARNEY MAGAZINE GENERAL PUBLIC (AUDIENCE)
FUTBOL TOTAL MAGAZINE
GANCHILLO ARTISTICO DE
CHOISY MAGAZINE
PEOPLE EN ESPANOL
MAGAZINE
-----------------------------------------------------
-----------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE
ANNEX 13
CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------------------------
MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT
JUNE 30, 2004, INCLUDE THE FOLLOWING (MILLIONS OF U.S. DOLLARS AND MEXICAN
PESOS):
DESCRIPTION AUTHORIZED AMOUNT EXERCISED AMOUNT PROGRESS %
----------- ----------------- ---------------- ----------
U.S. DOLLAR DENOMINATED PROJECTS:
DIGITALIZATION OF THE CABLE
TELEVISION NETWORK U.S. $ 95.0 U.S. $ 27.8 29%
INFORMATION TECHNOLOGY
PROJECTS OF CABLE TELEVISION 13.5 10.0 74%
TECHNICAL EQUIPMENT FOR
T.V. STATIONS 13.3 7.9 59%
INFORMATION TECHNOLOGY
PROJECTS 11.3 3.3 29%
MEXICAN PESOS DENOMINATED PROJECTS:
INFORMATION TECHNOLOGY
PROJECTS PS. 34.1 PS. 30.2 88%
SOCCER FACILITIES AND
IMPROVEMENTS 26.2 16.0 61%
TECHNICAL EQUIPMENT FOR
T.V. STATIONS 17.1 13.3 78%
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 2 YEAR: 2004
GRUPO TELEVISA, S.A.
INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION)
ANNEX 14 CONSOLIDATED
FINAL PRINTING
-------------------------------------------------------------------------------
MONETARY ASSETS AND LIABILITIES OF MEXICAN COMPANIES DENOMINATED IN
FOREIGN CURRENCIES ARE TRANSLATED AT THE PREVAILING EXCHANGE RATE AT
THE BALANCE SHEET DATE. RESULTING EXCHANGE RATE DIFFERENCES ARE
RECOGNIZED IN INCOME FOR THE YEAR, WITHIN INTEGRAL COST OF FINANCING.
ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF NON - MEXICAN
SUBSIDIARIES ARE FIRST CONVERTED TO MEXICAN GAAP, INCLUDING RESTATING
TO RECOGNIZE THE EFFECTS OF INFLATION BASED ON THE INFLATION OF EACH
FOREIGN COUNTRY, AND THEN TRANSLATED TO MEXICAN PESOS UTILIZING THE
EXCHANGE RATE AS OF THE BALANCE SHEET DATE AT YEAR-END. RESULTING
TRANSLATION DIFFERENCES ARE RECOGNIZED IN EQUITY AS PART OF THE OTHER
COMPREHENSIVE INCOME OR LOSS. FINANCIAL STATEMENTS OF NON-MEXICAN
OPERATIONS THAT ARE INTEGRAL TO MEXICAN OPERATIONS ARE CONVERTED TO
MEXICAN GAAP AND TRANSLATED TO MEXICAN PESOS BY UTILIZING THE EXCHANGE
RATE OF THE BALANCE SHEET DATE AT YEAR-END FOR MONETARY ASSETS AND
LIABILITIES, WITH THE RELATED ADJUSTMENT INCLUDED IN NET INCOME, AND
HISTORICAL EXCHANGE RATES FOR NON-MONETARY ITEMS.
EFFECTIVE MARCH, 2002, THE COMPANY DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF ITS SENIOR NOTES DUE 2011 AND 2032
FOR AN AGGREGATE AMOUNT OF U.S.$600 MILLION (Ps.6,922,200).
CONSEQUENTLY, BEGINNING MARCH 2002, ANY FOREIGN EXCHANGE GAIN OR LOSS
ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT, BEING HEDGED BY THE
COMPANY'S NET INVESTMENT IN SHARES OF UNIVISION, IS CREDITED OR
CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS).
THE GROUP'S FINANCIAL STATEMENTS FOR JUNE 30, 2003, HAVE BEEN RESTATED
TO MEXICAN PESOS IN PURCHASING POWER AS OF JUNE 30, 2004, BY USING A
RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE NCPI, WHICH FOR 2004
WAS 1.0437. HAD THE ALTERNATIVE WEIGHTED AVERAGE FACTOR ALLOWED UNDER
MEXICAN GAAP BEEN APPLIED TO RESTATE THE GROUP'S FINANCIAL STATEMENTS
FOR JUNE 30, 2003, WHICH INCLUDED THE RESULTS OF MEXICAN AND
NON-MEXICAN SUBSIDIARIES, THE RESTATEMENT FACTOR FOR JUNE 2003 WOULD
HAVE BEEN 1.0579.
MEXICAN STOCK EXCHANGE ("BMV")
STOCK EXCHANGE COTLEVISA DATE: 7/27/2004
GRUPO TELEVISA,S.A.
GENERAL DATA OF ISSUER
===============================================================================
COMPANY'S NAME: GRUPO TELEVISA, S.A.
ADDRESS: AV. VASCO DE QUIROGA #2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-20-00
FAX: 5261-24-94
INTERNET ADDRESS:www.televisa.com.mx
TAX DATA OF THE ISSUER
===============================================================================
COMPANY TAX CODE:GTE901219GK3
ADDRESS: AV. VASCO DE QUIROGA #2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
RESPONSIBLE FOR PAYMENT
-------------------------------------------------------------------------------
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
EXECUTIVES DATA
===============================================================================
BMV POSITION: CHAIRMAN OF THE BOARD
POSITION: CHAIRMAN OF THE BOARD
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC #28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
===============================================================================
BMV POSITION: GENERAL DIRECTOR
POSITION: PRESIDENT AND CHIEF EXECUTIVE OFFICER
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC #28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
-------------------------------------------------------------------------------
BMV POSITION: FINANCE DIRECTOR
POSITION: CHIEF FINANCIAL OFFICER
NAME: LIC. SALVI FOLCH VIADERO
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-80
FAX: 5261-20-39
E-MAIL: sfolch@televisa.com.mx
-------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING CORPORATE INFORMATION THROUGH EMISNET
POSITION: DIRECTOR OF CORPORATE FINANCIAL INFORMATION
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
-------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING SHARE REPURCHASE INFORMATION THROUGH
EMISNET
POSITION: VICE PRESIDENT OF CORPORATE FINANCE
NAME: LIC. ALEXANDRE MOREIRA PENNA
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 3
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-58
FAX: 5261-25-24
E-MAIL: apenna@televisa.com.mx
===============================================================================
BMV POSITION: RESPONSIBLE FOR LEGAL MATTERS
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL OF GRUPO TELEVISA
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
-------------------------------------------------------------------------------
BMV POSITION: SECRETARY OF THE BOARD OF DIRECTORS
POSITION: SECRETARY OF THE BOARD OF DIRECTORS
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
-------------------------------------------------------------------------------
BMV POSITION: PROSECRETARY OF THE BOARD OF DIRECTORS
POSITION: EXTERNAL GENERAL COUNSEL
NAME: LIC. RICARDO MALDONADO YANEZ
ADDRESS: MONTES URALES #505, PISO 3
NEIGHBORHOOD: LOMAS DE CHAPULTEPEC
ZIP CODE: 11000
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5201-74-47
FAX: 5520-10-65
E-MAIL: rmaldonado@macf.com.mx
-------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE OF INFORMATION TO INVESTORS
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
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BMV POSITION: RESPONSIBLE FOR SENDING INFORMATION THROUGH EMISNET
POSITION: SECRETARY OF THE BOARD OF DIRECTORS
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
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BMV POSITION: RESPONSIBLE FOR SENDING RELEVANT EVENTS THROUGH EMISNET
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA #2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
MEXICAN STOCK EXCHANGE ("BMV")
STOCK EXCHANGE CODE: TLEVISA DATE: 7/27/2004
GRUPO TELEVISA, S.A.
BOARD OF DIRECTORS
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POSITION : PRESIDENT(S)
NAME : EMILIO FERNANDO AZCARRAGA JEAN
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POSITION : VICE PRESIDENT(S)
NAME : MARIA ASUNCION ARAMBURUZABALA LARREGUI
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POSITION : DIRECTOR(S)
NAME : PEDRO ASPE ARMELLA
NAME : JULIO BARBA HURTADO
NAME : JOSE ANTONIO BASTON PATINO
NAME : ANA PATRICIA BOTIN O'SHEA
NAME : MANUEL JORGE CUTILLAS COVANI
NAME : ALFONSO DE ANGOITIA NORIEGA
NAME : CARLOS FERNANDEZ GONZALEZ
NAME : BERNARDO GOMEZ MARTINEZ
NAME : CLAUDIO X. GONZALEZ LAPORTE
NAME : ROBERTO HERNANDEZ RAMIREZ
NAME : ENRIQUE KRAUZE KLEINBORT
NAME : GERMAN LARREA MOTA VELAZCO
NAME : GILBERTO PEREZALONSO CIFUENTES
NAME : ALEJANDRO QUINTERO INIGUEZ
NAME : FERNANDO SENDEROS MESTRE
NAME : ENRIQUE FRANCISCO J. SENIOR HERNANDEZ
NAME : CARLOS SLIM DOMIT
NAME : LORENZO H. ZAMBRANO TREVINO
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POSITION : ALTERNATE DIRECTOR(S)
NAME : HERBERT ALLEN III
NAME : JUAN PABLO ANDRADE FRICH
NAME : LUCRECIA ARAMBURUZABALA LARREGUI
NAME : FELIX ARAUJO RAMIREZ
NAME : MAXIMILIANO ARTEAGA CARLEBACH
NAME : JOAQUIN BALCARCEL SANTA CRUZ
NAME : JUAN FERNANDO CALVILLO ARMENDARIZ
NAME : RAFAEL CARABIAS PRINCIPE
NAME : FRANCISCO JOSE CHEVEZ ROBELO
NAME : JOSE LUIS FERNANDEZ FERNANDEZ
NAME : SALVI FOLCH VIADERO
NAME : LEOPOLDO GOMEZ GONZALEZ BLANCO
NAME : JOSE HEREDIA BRETON
NAME : JOSE ANTONIO LARA DEL OLMO
NAME : JORGE LUTTEROTH ECHEGOYEN
NAME : ALBERTO MONTIEL CASTELLANOS
NAME : RAUL MORALES MEDRANO
NAME : ALEXANDRE MOREIRA PENNA DA SILVA
NAME : GUILLERMO NAVA GOMEZ-TAGLE
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POSITION : STATUTORY AUDITOR(S)
NAME : MARIO SALAZAR ERDMANN
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POSITION : ALTERNATE STATUTORY AUDITOR(S)
NAME : JOSE MIGUEL ARRIETA MENDEZ
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POSITION : SECRETARY(IES) OF THE BOARD
NAME : JUAN SEBASTIAN MIJARES ORTEGA
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
--------------------------------
(Registrant)
Dated: August 3, 2004 By /s/ Jorge Lutteroth Echegoyen
------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President