kr6kaudfinan_grupo.htm
 
 
 
 
 

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 May, 2015
 
GRUPO TELEVISA, S.A.B.

(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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).)
 
Yes
 
No
 
x
 
 
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).)
 
 
Yes
 
No
 
x
 
          
 
 
 
 

 
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
QUARTER: 04
YEAR: 2014
GRUPO TELEVISA, S.A.B.
 
 
 
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2014 AND DECEMBER 31, 2013
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
END OF PREVIOUS YEAR
AMOUNT
AMOUNT
10000000
TOTAL ASSETS
235,551,941
194,108,920
11000000
CURRENT ASSETS
79,802,176
53,207,745
11010000
CASH AND CASH EQUIVALENTS
29,729,350
16,692,033
11020000
SHORT-TERM INVESTMENTS
4,788,585
3,722,976
11020010
 
FINANCIAL INSTRUMENTS AVAILABLE FOR SALE
0
0
11020020
 
FINANCIAL INSTRUMENTS FOR NEGOTIATION
0
0
11020030
 
FINANCIAL INSTRUMENTS HELD TO MATURITY
4,788,585
3,722,976
11030000
CUSTOMER (NET)
21,087,163
20,734,137
11030010
 
CUSTOMER
24,115,607
23,226,673
11030020
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-3,028,444
-2,492,536
11040000
OTHER ACCOUNTS RECEIVABLE (NET)
3,627,944
3,759,512
11040010
 
OTHER ACCOUNTS RECEIVABLE
3,807,705
3,995,953
11040020
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-179,761
-236,441
11050000
INVENTORIES
3,336,667
1,718,366
11051000
BIOLOGICAL ASSETS CURRENT
0
0
11060000
OTHER CURRENT ASSETS
17,232,467
6,580,721
11060010
 
ADVANCE PAYMENTS
1,403,526
1,469,241
11060020
 
DERIVATIVE FINANCIAL INSTRUMENTS
2,894
3,447
11060030
 
ASSETS AVAILABLE FOR SALE
10,583,852
0
11060050
 
RIGHTS AND LICENSING
0
0
11060060
 
OTHER
5,242,195
5,108,033
12000000
NON-CURRENT ASSETS
155,749,765
140,901,175
12010000
ACCOUNTS RECEIVABLE (NET)
8,000
0
12020000
INVESTMENTS
39,742,319
56,267,166
12020010
 
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
5,032,447
18,250,764
12020020
 
HELD-TO-MATURITY DEBT SECURITIES
461,047
631,964
12020030
 
OTHER AVAILABLE- FOR- SALE INVESTMENTS
34,217,140
37,359,819
12020040
 
OTHER
31,685
24,619
12030000
PROPERTY, PLANT AND EQUIPMENT (NET)
62,009,508
53,476,475
12030010
 
BUILDINGS
15,073,870
14,843,097
12030020
 
MACHINERY AND INDUSTRIAL EQUIPMENT
87,791,190
74,378,057
12030030
 
OTHER EQUIPMENT
8,924,050
8,073,547
12030040
 
ACCUMULATED DEPRECIATION
-57,539,568
-49,198,237
12030050
 
CONSTRUCTION IN PROGRESS
7,759,966
5,380,011
12040000
INVESTMENT PROPERTIES
0
0
12050000
NON-CURRENT BIOLOGICAL ASSETS
0
0
12060000
INTANGIBLE ASSETS (NET)
28,778,414
11,382,311
12060010
 
GOODWILL
9,322,773
2,621,530
12060020
 
TRADEMARKS
2,501,227
1,749,402
12060030
 
RIGHTS AND LICENSING
1,998,695
1,344,190
12060031
 
CONCESSIONS
11,345,717
3,655,985
12060040
 
OTHER
3,610,002
2,011,204
12070000
DEFERRED TAX ASSETS
16,080,292
10,608,778
12080000
OTHER NON-CURRENT ASSETS
9,131,232
9,166,445
12080001
 
ADVANCE PAYMENTS
0
0
12080010
 
DERIVATIVE FINANCIAL INSTRUMENTS
0
4,941
12080020
 
EMPLOYEE BENEFITS
0
0
12080021
 
ASSETS AVAILABLE FOR SALE
0
0
12080040
 
DEFERRED ASSETS (NET)
0
0
12080050
 
OTHER
9,131,232
9,161,504
20000000
TOTAL LIABILITIES
147,636,860
115,529,487
21000000
CURRENT LIABILITIES
44,370,122
40,283,067
21010000
BANK LOANS
337,148
312,715
21020000
STOCK MARKET LOANS
0
0
21030000
OTHER INTEREST BEARING LIABILITIES
502,166
424,698
21040000
SUPPLIERS
17,142,044
12,024,853
21050000
TAXES PAYABLE
2,497,697
1,692,415
21050010
 
INCOME TAXES PAYABLE
1,389,321
642,385
21050020
 
OTHER TAXES PAYABLE
1,108,376
1,050,030
21060000
OTHER CURRENT LIABILITIES
23,891,067
25,828,386
21060010
 
INTEREST PAYABLE
974,904
796,229
21060020
 
DERIVATIVE FINANCIAL INSTRUMENTS
0
0
21060030
 
DEFERRED INCOME
20,150,744
21,962,847
21060050
 
EMPLOYEE BENEFITS
1,005,255
857,903
21060060
 
PROVISIONS
245,962
174,678
21060061
 
LIABILITIES RELATED TO CURRENT AVAILABLE FOR SALE ASSETS
0
0
21060080
 
OTHER
1,514,202
2,036,729
22000000
NON-CURRENT LIABILITIES
103,266,738
75,246,420
22010000
BANK LOANS
10,633,627
13,385,879
22020000
STOCK MARKET LOANS
70,026,876
46,357,221
22030000
OTHER INTEREST BEARING LIABILITIES
4,807,379
4,494,549
22040000
DEFERRED TAX LIABILITIES
7,763,024
0
22050000
OTHER NON-CURRENT LIABILITIES
10,035,832
11,008,771
22050010
 
DERIVATIVE FINANCIAL INSTRUMENTS
335,102
335,336
22050020
 
DEFERRED INCOME
284,000
474,011
22050040
 
EMPLOYEE BENEFITS
287,159
79,810
22050050
 
PROVISIONS
54,462
59,614
22050051
 
LIABILITIES RELATED TO NON-CURRENT AVAILABLE FOR SALE ASSETS
0
0
22050070
 
OTHER
9,075,109
10,060,000
30000000
STOCKHOLDERS' EQUITY
87,915,081
78,579,433
30010000
CONTROLLING INTEREST
76,804,977
68,311,434
30030000
SOCIAL CAPITAL
4,978,126
4,978,126
30040000
SHARES REPURCHASED
-12,647,475
-12,848,448
30050000
PREMIUM ON ISSUANCE OF SHARES
15,889,819
15,889,819
30060000
CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
0
0
30070000
OTHER CAPITAL CONTRIBUTED
0
0
30080000
RETAINED EARNINGS (ACCUMULATED LOSSES)
62,905,444
56,897,886
30080010
 
LEGAL RESERVE
2,139,007
2,139,007
30080020
 
OTHER RESERVES
0
0
30080030
 
RETAINED EARNINGS
58,845,619
51,097,340
30080040
 
NET INCOME FOR THE YEAR
5,386,905
7,748,279
30080050
 
OTHER
-3,466,087
-4,086,740
30090000
OTHER ACCUMULATED COMPREHENSIVE RESULTS (NET OF TAX)
5,679,063
3,394,051
30090010
 
EARNINGS PER PROPERTY REASSESSMENT
0
0
30090020
 
ACTUARIAL EARNINGS (LOSS) FOR LABOR OBLIGATIONS
35,422
58,418
30090030
 
RESULT FOR FOREIGN CURRENCY CONVERSION
348,429
49,629
30090040
 
CHANGES IN THE VALUATION OF AVAILABLE FOR SALE FINANCIAL ASSETS
1,998,313
1,163,122
30090050
 
CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS
-171,351
-140,944
30090060
 
CHANGES IN FAIR VALUE OF OTHER ASSETS
3,176,726
1,997,966
30090070
 
PARTICIPATION IN OTHER COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES
291,524
265,860
30090080
 
OTHER COMPREHENSIVE RESULT
0
0
30020000
NON-CONTROLLING INTEREST
11,110,104
10,267,999
 
 
 

 
 
DATA INFORMATION
AS OF DECEMBER 31, 2014 AND DECEMBER 31, 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
CONCEPTS
CURRENT YEAR
END OF PREVIOUS YEAR
AMOUNT
AMOUNT
91000010
FOREIGN CURRENCY LIABILITIES SHORT-TERM
8,809,573
6,772,104
91000020
FOREIGN CURRENCY LIABILITIES LONG-TERM
49,578,152
32,170,424
91000030
CAPITAL STOCK NOMINAL
2,494,410
2,494,410
91000040
RESTATEMENT OF CAPITAL STOCK
2,483,716
2,483,716
91000050
PENSIONS AND SENIORITY PREMIUMS
2,107,375
2,009,430
91000060
NUMBER OF EXECUTIVES (*)
70
72
91000070
NUMBER OF EMPLOYEES (*)
39,545
31,975
91000080
NUMBER OF WORKERS (*)
0
0
91000090
NUMBER OF OUTSTANDING SHARES (*)
338,056,218,201
335,501,022,792
91000100
NUMBER OF REPURCHASED SHARES (*)
24,373,668,930
26,928,864,339
91000110
RESTRICTED CASH (1)
0
0
91000120
DEBT OF NON-CONSOLIDATED COMPANIES GUARANTEED
0
0
 
(1) THIS CONCEPT MUST BE COMPLETED WHEN GUARANTEES HAVE BEEN PROVIDED AFFECTING CASH AND CASH EQUIVALENTS
(*) DATA IN UNITS
 
 
 

 
 
 
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
40010000
NET INCOME
80,118,352
24,020,205
73,790,711
21,443,064
40010010
 
SERVICES
61,764,168
19,152,459
57,255,507
17,007,067
40010020
 
SALE OF GOODS
2,204,680
604,251
2,163,696
585,975
40010030
 
INTEREST
0
0
0
0
40010040
 
ROYALTIES
6,058,932
1,631,619
5,321,561
1,431,519
40010050
 
DIVIDENDS
0
0
0
0
40010060
 
LEASE
10,090,572
2,631,876
9,049,947
2,418,503
40010061
 
CONSTRUCTION
0
0
0
0
40010070
 
OTHER
0
0
0
0
40020000
COST OF SALES
42,908,647
12,663,069
39,602,423
11,487,240
40021000
GROSS PROFIT (LOSS)
37,209,705
11,357,136
34,188,288
9,955,824
40030000
GENERAL EXPENSES
17,971,608
5,288,565
15,366,803
4,392,726
40040000
INCOME (LOSS) BEFORE OTHER INCOME AND EXPENSES, NET
19,238,097
6,068,571
18,821,485
5,563,098
40050000
OTHER INCOME AND (EXPENSE), NET
-5,281,690
-521,852
-83,150
-243,976
40060000
OPERATING INCOME (LOSS)
13,956,407
5,546,719
18,738,335
5,319,122
40070000
FINANCE INCOME
2,613,705
983,005
5,971,689
5,358,070
40070010
 
INTEREST INCOME
1,327,691
435,747
1,129,955
338,276
40070020
 
FOREIGN EXCHANGE GAIN, NET
0
0
0
20,500
40070030
 
DERIVATIVES GAIN, NET
515,073
547,258
4,841,734
4,999,294
40070040
 
EARNINGS FROM CHANGES IN FAIR VALUE OF FINANCIAL INSTRUMENTS
770,941
0
0
0
40070050
 
OTHER
0
0
0
0
40080000
FINANCE EXPENSE
6,942,630
2,519,746
5,086,972
1,299,339
40080010
 
INTEREST EXPENSE
5,551,461
1,494,565
4,803,151
1,299,339
40080020
 
FOREIGN EXCHANGE LOSS, NET
1,391,169
1,025,181
283,821
0
40080030
 
DERIVATIVES LOSS, NET
0
0
0
0
40080050
 
LOSS FROM CHANGES IN FAIR VALUE OF FINANCIAL INSTRUMENTS
0
0
0
0
40080060
 
OTHER
0
0
0
0
40090000
FINANCE INCOME (EXPENSE) NET
-4,328,925
-1,536,741
884,717
4,058,731
40100000
PARTICIPATION IN THE RESULTS OF ASSOCIATES AND JOINT VENTURES
13,173
-34,366
-5,659,963
-4,736,774
40110000
INCOME (LOSS) BEFORE INCOME TAXES
9,640,655
3,975,612
13,963,089
4,641,079
40120000
INCOME TAXES
2,980,883
1,313,995
3,728,962
783,508
40120010
 
INCOME TAX, CURRENT
5,043,053
1,928,123
13,857,087
9,425,916
40120020
 
INCOME TAX, DEFERRED
-2,062,170
-614,128
-10,128,125
-8,642,408
40130000
INCOME (LOSS) FROM CONTINUING OPERATIONS
6,659,772
2,661,617
10,234,127
3,857,571
40140000
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,   NET
0
0
0
0
40150000
NET INCOME (LOSS)
6,659,772
2,661,617
10,234,127
3,857,571
40160000
NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
1,272,867
157,363
2,485,848
1,393,741
40170000
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
5,386,905
2,504,254
7,748,279
2,463,830
             
40180000
NET INCOME (LOSS) PER BASIC SHARE
1.87
0.87
2.71
0.86
40190000
NET INCOME (LOSS) PER DILUTED SHARE
1.74
0.81
2.50
0.80
 
 
 

 
 
STATEMENTS OF COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME (NET OF INCOME TAXES)
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
40200000
NET INCOME (LOSS)
6,659,772
2,661,617
10,234,127
3,857,571
 
ITEMS NOT TO BE RECLASSIFIED INTO RESULTS
       
40210000
EARNINGS PER PROPERTY REASSESSMENT
0
0
0
0
40220000
ACTUARIAL EARNINGS (LOSS) FOR LABOR OBLIGATIONS
-27,811
-27,811
133,863
133,863
40220100
PARTICIPATION IN RESULTS FOR REVALUATION OF PROPERTIES OF ASSOCIATES AND JOINT VENTURES
0
0
0
0
 
ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED INTO RESULTS
340,906
339,870
79,710
-7,340
40230000
RESULT FOR FOREIGN CURRENCY CONVERSION
835,191
-258,997
677,891
244,165
40240000
CHANGES IN THE VALUATION OF AVAILABLE FOR SALE FINANCIAL ASSETS
       
40250000
CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS
-30,407
-9,855
16,308
19,012
40260000
CHANGES IN FAIR VALUE OF OTHER ASSETS
1,178,760
482,220
586,315
804,935
40270000
PARTICIPATION IN OTHER COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES
25,664
20,660
105,259
-5,467
40280000
OTHER COMPREHENSIVE INCOME
0
0
0
0
40290000
TOTAL OTHER COMPREHENSIVE INCOME
2,322,303
546,087
1,599,346
1,189,168
           
40300000
COMPREHENSIVE INCOME (LOSS)
8,982,075
3,207,704
11,833,473
5,046,739
40320000
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
1,310,158
205,500
2,497,027
1,402,149
40310000
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
7,671,917
3,002,204
9,336,446
3,644,590
 
 
 

 
 
STATEMENTS OF COMPREHENSIVE INCOME
DATA INFORMATION
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
92000010
OPERATING DEPRECIATION AND AMORTIZATION
11,563,085
3,381,788
9,846,366
2,568,278
 
 
 

 
 
 
STATEMENTS OF COMPREHENSIVE INCOME
DATA INFORMATION (TWELVE MONTHS)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
ACCOUNT / SUBACCOUNT
YEAR
CURRENT
PREVIOUS
92000030
NET INCOME (**)
80,118,352
73,790,711
92000040
OPERATING INCOME (LOSS) (**)
13,956,407
18,738,335
92000060
NET INCOME (LOSS) (**)
6,659,772
10,234,127
92000050
CONTROLLING INTEREST NET INCOME (LOSS) (**)
5,386,905
7,748,279
92000070
OPERATING DEPRECIATION AND AMORTIZATION (**)
11,563,085
9,846,366
 
(**) INFORMATION FOR THE LAST TWELVE MONTHS
 
 
 

 
 
 
STATEMENTS OF CASH FLOWS (INDIRECT METHOD)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
AUDITED INFORMATION Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
AMOUNT
AMOUNT
OPERATING  ACTIVITIES
50010000
INCOME (LOSS) BEFORE INCOME TAXES
9,640,655
13,963,089
50020000
 + (-) ITEMS NOT REQUIRING CASH
1,198,465
1,016,230
50020010
 
 + ESTIMATES FOR THE PERIOD
1,040,954
873,097
50020020
 
 + PROVISIONS FOR THE PERIOD
0
0
50020030
 
 + (-) OTHER UNREALIZED ITEMS
157,511
143,133
50030000
 + (-) ITEMS RELATED TO INVESTING ACTIVITIES
13,108,401
15,433,784
50030010
 
 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD
11,563,085
9,846,366
50030020
 
 (-) + GAIN OR LOSS ON SALE OF PROPERTY, PLANT AND EQUIPMENT
715,786
236,667
50030030
 
 + (-) LOSS (REVERSION) IMPAIRMENT
253,279
59,648
50030040
 
 (-) + EQUITY IN RESULTS OF AFFILIATES AND JOINT VENTURES
(13,173)
5,659,963
50030050
 
 (-) DIVIDENDS RECEIVED
0
0
50030060
 
 (-) INTEREST INCOME
(417,777)
(192,712)
50030070
 
 (-) FOREIGN EXCHANGE FLUCTUATION
(3,374,483)
(361,228)
50030080
 
 (-) + OTHER ITEMS
4,381,684
185,080
50040000
 + (-) ITEMS RELATED TO FINANCING ACTIVITIES
10,618,223
1,052,445
50040010
 
 (+) ACCRUED INTEREST
5,551,461
4,803,151
50040020
 
 (+) FOREIGN EXCHANGE FLUCTUATION
5,507,988
489,847
50040030
 
 (+) FINANCIAL OPERATIONS OF DERIVATIVES
(1,286,014)
(4,841,734)
50040040
 
 + (-) OTHER ITEMS
844,788
601,181
50050000
CASH FLOW BEFORE INCOME TAX
34,565,744
31,465,548
50060000
CASH FLOWS PROVIDED OR USED IN OPERATION
(6,102,805)
(7,659,343)
50060010
 
 + (-) DECREASE (INCREASE) IN CUSTOMERS
(1,213,774)
(2,604,151)
50060020
 
 + (-) DECREASE (INCREASE) IN INVENTORIES
(1,244,721)
(3,372,410)
50060030
 
 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLES AND OTHER ASSETS
(224,752)
(2,136,355)
50060040
 
 + (-) INCREASE (DECREASE) IN SUPPLIERS
4,795,769
2,384,536
50060050
 
 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES
(4,097,970)
2,863,730
50060060
 
 + (-) INCOME TAXES PAID OR RETURNED
(4,117,357)
(4,794,693)
50070000
NET CASH FLOWS FROM OPERATING ACTIVITIES
28,462,939
23,806,205
INVESTING ACTIVITIES
50080000
NET CASH FLOWS FROM INVESTING ACTIVITIES
(22,739,509)
(25,246,453)
50080010
 
 (-) PERMANENT INVESTMENTS IN SHARES
0
(1,588,925)
50080020
 
 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES
0
0
50080030
 
 (-) INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT
(17,004,358)
(14,870,672)
50080040
 
 + SALE OF PROPERTY, PLANT AND EQUIPMENT
480,601
169,218
50080050
 
 (-) TEMPORARY INVESTMENTS
(447,117)
(517,199)
50080060
 
 + DISPOSITION OF TEMPORARY INVESTMENTS
513,134
1,868,059
50080070
 
 (-) INVESTMENT IN INTANGIBLE ASSETS
(794,476)
(824,072)
50080080
 
 + DISPOSITION OF INTANGIBLE ASSETS
0
0
50080090
 
 (-) BUSINESS ACQUISITIONS
0
0
50080100
 
 + BUSINESS DISPOSITIONS
0
0
50080110
 
 + DIVIDEND RECEIVED
0
0
50080120
 
 + INTEREST RECEIVED
0
0
50080130
 
 + (-) DECREASE (INCREASE) IN ADVANCES AND LOANS TO THIRD PARTIES
0
0
50080140
 
 + (-) OTHER ITEMS
(5,487,293)
(9,482,862)
FINANCING ACTIVITIES
50090000
NET CASH FLOWS FROM FINANCING ACTIVITIES
7,230,849
(923,817)
50090010
 
 + BANK FINANCING
2,078,433
493,383
50090020
 
 + STOCK MARKET FINANCING
18,388,714
6,437,204
50090030
 
 + OTHER FINANCING
0
0
50090040
 
 (-) BANK FINANCING AMORTIZATION
(6,836,043)
(375,000)
50090050
 
 (-) STOCK MARKET FINANCING AMORTIZATION
0
0
50090060
 
 (-) OTHER FINANCING AMORTIZATION
(446,944)
(376,159)
50090070
 
 + (-) INCREASE (DECREASE) IN CAPITAL STOCK
0
0
50090080
 
 (-) DIVIDENDS PAID
0
(2,168,384)
50090090
 
 + PREMIUM ON ISSUANCE OF SHARES
0
0
50090100
 
 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
0
0
50090110
 
 (-) INTEREST EXPENSE
(5,200,696)
(4,681,676)
50090120
 
 (-) REPURCHASE OF SHARES
(1,064,602)
(1,057,083)
50090130
 
 +  (-) OTHER ITEMS
311,987
803,898
       
50100000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
12,954,279
(2,364,065)
50110000
CHANGES IN THE VALUE OF CASH AND CASH EQUIVALENTS
83,038
(7,227)
50120000
CASH AND CASH EQUIVALENTS AT BEGINING OF PERIOD
16,692,033
19,063,325
50130000
CASH AND CASH EQUIVALENTS AT END OF PERIOD
29,729,350
16,692,033
 
 
 

 
 
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
CONCEPTS
CAPITAL STOCK
SHARES REPURCHASED
ADDITIONAL PAID-IN CAPITAL
CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
OTHER CAPITAL CONTRIBUTED
RETAINED EARNINGS OR ACCUMULATED LOSSES
ACCUMULATED OTHER COMPREHENSIVE INCOME (NET OF INCOME TAX)
CONTROLLING INTEREST
NON-CONTROLLING INTEREST
TOTAL STOCKHOLDERS’ EQUITY
RESERVES
RETAINED EARNINGS (ACCUMULATED LOSSES)
BALANCE AT JANUARY 1, 2013
4,978,126
-13,103,223
15,889,819
0
0
2,139,007
48,934,392
1,805,884
60,644,005
7,890,598
68,534,603
 
                     
RETROSPECTIVE ADJUSTMENT
0
0
0
0
0
0
-101,814
0
-101,814
-1,088
-102,902
 
                     
APPLICATION OF OTHER COMPREHENSIVE INCOME TO RETAINED EARNINGS
0
0
0
0
0
0
0
0
0
0
0
 
                     
ESTABLISHMENT OF RESERVES
0
0
0
0
0
0
0
0
0
0
0
 
                     
DIVIDENDS DECLARED
0
0
0
0
0
0
-2,168,384
0
-2,168,384
-118,238
-2,286,622
 
                     
(DECREASE) INCREASE OF CAPITAL
0
0
0
0
0
0
0
0
0
0
0
 
                     
REPURCHASE OF SHARES
0
-1,057,083
0
0
0
0
0
0
-1,057,083
0
-1,057,083
 
                     
(DECREASE) INCREASE IN ADDITIONAL PAID-IN CAPITAL
0
0
0
0
0
0
0
0
0
0
0
 
                     
(DECREASE) INCREASE IN NON-CONTROLLING INTEREST
0
0
0
0
0
0
0
0
0
0
0
                       
OTHER
0
1,311,858
0
0
0
0
346,406
0
1,658,264
-300
1,657,964
 
                     
COMPREHENSIVE INCOME
0
0
0
0
0
0
7,748,279
1,588,167
9,336,446
2,497,027
11,833,473
 
                     
BALANCE AT DECEMBER 31, 2013
4,978,126
-12,848,448
15,889,819
0
0
2,139,007
54,758,879
3,394,051
68,311,434
10,267,999
78,579,433
BALANCE AT JANUARY 1, 2014
4,978,126
-12,848,448
15,889,819
0
0
2,139,007
54,758,879
3,394,051
68,311,434
10,267,999
78,579,433
 
                     
RETROSPECTIVE ADJUSTMENT
0
0
0
0
0
0
0
0
0
0
0
 
                     
APPLICATION OF OTHER COMPREHENSIVE INCOME TO RETAINED EARNINGS
0
0
0
0
0
0
0
0
0
0
0
 
                     
ESTABLISHMENT OF RESERVES
0
0
0
0
0
0
0
0
0
0
0
 
                     
DIVIDENDS DECLARED
0
0
0
0
0
0
0
0
0
-468,249
-468,249
 
                     
(DECREASE) INCREASE OF CAPITAL
0
0
0
0
0
0
0
0
0
0
0
 
                     
REPURCHASE OF SHARES
0
-1,064,602
0
0
0
0
0
0
-1,064,602
0
-1,064,602
 
                     
(DECREASE) INCREASE IN ADDITIONAL PAID-IN CAPITAL
0
0
0
0
0
0
0
0
0
0
0
 
                     
(DECREASE) INCREASE IN NON-CONTROLLING INTEREST
0
0
0
0
0
0
0
0
0
0
0
 
                     
OTHER
0
1,265,575
0
0
0
0
620,653
0
1,886,228
196
1,886,424
 
                     
COMPREHENSIVE INCOME
0
0
0
0
0
0
5,386,905
2,285,012
7,671,917
1,310,158
8,982,075
 
                     
BALANCE AT DECEMBER 31, 2014
4,978,126
-12,647,475
15,889,819
0
0
2,139,007
60,766,437
5,679,063
76,804,977
11,110,104
87,915,081
 
 
 

 
 
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 04 YEAR: 2014
GRUPO TELEVISA, S.A.B.
 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
AUDITED INFORMATION
CONSOLIDATED
Final Printing
 
MEXICO CITY, D.F., MAY 5, 2015—GRUPO TELEVISA, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “TELEVISA” OR “THE COMPANY”), TODAY ANNOUNCED AUDITED RESULTS FOR FULL YEAR AND FOURTH QUARTER 2014. THE RESULTS HAVE BEEN PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”).

THE FOLLOWING INFORMATION SETS FORTH CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, IN MILLIONS OF MEXICAN PESOS, AS WELL AS THE PERCENTAGE THAT EACH LINE REPRESENTS OF NET SALES AND THE PERCENTAGE CHANGE WHEN COMPARING 2014 WITH 2013:

NET SALES

NET SALES INCREASED BY 8.6% TO PS.80,118.4 MILLION IN 2014 COMPARED WITH PS.73,790.7 MILLION IN 2013. THIS INCREASE WAS ATTRIBUTABLE TO REVENUE GROWTH ACROSS ALL OUR BUSINESS SEGMENTS. OPERATING SEGMENT INCOME INCREASED 8.1%, REACHING PS.32,279.7 MILLION WITH A MARGIN OF 39.6% IN 2014 COMPARED WITH PS.29,860.4 MILLION WITH A MARGIN OF 39.7% IN 2013.

NET INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY  

NET INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY AMOUNTED TO PS.5,386.9 MILLION FOR THE YEAR ENDED DECEMBER 31, 2014, COMPARED WITH A NET INCOME OF PS.7,748.3 MILLION FOR THE YEAR ENDED DECEMBER 31,  2013. THE NET DECREASE OF PS.2,361.4 MILLION REFLECTED I) A PS.5,213.6  MILLION INCREASE IN FINANCE EXPENSE, NET; AND II) A PS.5,198.6 MILLION INCREASE IN OTHER EXPENSE, NET, REFLECTING PRIMARILY A ONE-TIME NON-CASH LOSS ON DISPOSITION OF OUR 50% JOINT INTEREST IN GSF TELECOM HOLDINGS, S.A.P.I. DE C.V. (“GSF”), THE CONTROLLING COMPANY OF IUSACELL, WHICH WAS COMPLETED IN JANUARY 2015. THESE UNFAVORABLE VARIANCES WERE PARTIALLY OFFSET BY (I) A PS.5,673.1  MILLION FAVORABLE CHANGE IN SHARE OF INCOME OR LOSS OF JOINT VENTURES AND ASSOCIATES, NET; (II) A PS.1,213.0 MILLION DECREASE IN NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS; (III) A PS.748.1 MILLION DECREASE IN INCOME TAXES; AND (IV) A PS.416.6  MILLION INCREASE IN INCOME BEFORE OTHER EXPENSE, NET.

FULL YEAR RESULTS AND FOURTH QUARTER RESULTS  BY BUSINESS SEGMENT

THE FOLLOWING INFORMATION PRESENTS FULL YEAR CONSOLIDATED RESULTS ENDED DECEMBER 31, 2014 AND 2013, AND FOURTH QUARTER CONSOLIDATED RESULTS ENDED DECEMBER 31, 2014 AND 2013  FOR EACH OF OUR BUSINESS SEGMENTS.  CONSOLIDATED RESULTS  ARE PRESENTED IN MILLIONS OF MEXICAN PESOS:

CONTENT

FOURTH QUARTER SALES INCREASED BY 6.7% TO PS.11,128.9 MILLION COMPARED WITH PS.10,433.8 MILLION IN FOURTH QUARTER 2013.

FULL YEAR SALES INCREASED BY 3.1% TO PS.34,868.1 MILLION COMPARED WITH PS.33,817.6 MILLION IN 2013.

ADVERTISING

ADVERTISING FOURTH QUARTER REVENUE INCREASED BY 3.8% TO PS.8,633.0 MILLION COMPARED WITH PS.8,318.7 MILLION IN FOURTH QUARTER 2013. ADVERTISING ON PAY-TV NETWORKS INCREASED BY 9.6% AND REPRESENTED 6.1% OF OUR ADVERTISING REVENUES.
 
ADVERTISING FULL YEAR REVENUE INCREASED BY 2.4% TO PS.25,465.7 MILLION COMPARED WITH PS.24,864.5 MILLION IN 2013. THESE RESULTS WERE ADVERSELY AFFECTED STARTING IN JULY 2014 BY NEW REGULATION THAT RESTRICTS TELEVISION ADVERTISING FOR HIGH-CALORIC FOODS AND BEVERAGES DURING CERTAIN TIME SLOTS. FOR THE FULL YEAR, ADVERTISING ON PAY-TV NETWORKS REPRESENTED 6.0% OF OUR TOTAL ADVERTISING REVENUES.

NETWORK SUBSCRIPTION REVENUE

FOURTH-QUARTER NETWORK SUBSCRIPTION REVENUE INCREASED BY 21.5% TO PS.775.8 MILLION COMPARED TO PS.638.6 MILLION IN FOURTH-QUARTER 2013. THE GROWTH WAS DRIVEN MAINLY BY THE SUSTAINED ADDITION OF PAY-TV SUBSCRIBERS, BOTH IN MEXICO AND ABROAD, AND A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED REVENUES.

FULL YEAR NETWORK SUBSCRIPTION REVENUE DECREASED BY 12.5%. TO PS.2,854.4 MILLION COMPARED WITH PS.3,263.6 MILLION IN 2013. THESE RESULTS REFLECT FORGONE REVENUE AS A RESULT OF THE IMPLEMENTATION OF THE MUST-OFFER REGULATION THAT CAME INTO EFFECT WITH THE CONSTITUTIONAL REFORM IN MATTERS OF TELECOMMUNICATIONS. THE MUST-OFFER REGULATION THAT CAME INTO EFFECT IN SEPTEMBER 2013, REQUIRES US TO ALLOW THE RETRANSMISSION, FREE OF CHARGE AND ON A NON-DISCRIMINATORY BASIS, OF FREE-TO-AIR TELEVISION SIGNALS TO PAY-TV CONCESSION HOLDERS THAT OPERATE IN THE SAME AREA OF GEOGRAPHIC COVERAGE, SUBJECT TO CERTAIN CONDITIONS BEING MET AMONG OTHERS, THAT THE RETRANSMISSION IS MADE WITHOUT MODIFICATIONS, INCLUDING ADVERTISING, AND WITH THE SAME QUALITY OF BROADCAST SIGNAL, EXCEPT IN CERTAIN SPECIFIC CASES PROVIDED IN THE REGULATIONS. THIS EFFECT WAS PARTIALLY OFFSET BY THE ADDITION OF PAY-TV SUBSCRIBERS IN MEXICO AND ABROAD.

LICENSING AND SYNDICATION

FOURTH-QUARTER LICENSING AND SYNDICATION REVENUE INCREASED BY 16.5% TO PS.1,720.1 MILLION COMPARED TO PS.1,476.5 MILLION IN FOURTH-QUARTER 2013. THE GROWTH IS MOSTLY EXPLAINED BY AN INCREASE OF 4.8% IN ROYALTIES FROM UNIVISION, FROM US$74.0 MILLION IN FOURTH QUARTER 2013 TO US$77.5 MILLION IN FOURTH QUARTER 2014, STRONG COPRODUCTION AND RETRANSMISSION RIGHTS REVENUES, AND A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED REVENUES.

THE FULL YEAR INCREASE IN LICENSING AND SYNDICATION REVENUE OF 15.1% TO PS.6,548.0 MILLION COMPARED WITH PS.5,689.5 MILLION IN 2013, IS EXPLAINED BY I) AN INCREASE OF 14.8% IN ROYALTIES FROM UNIVISION, FROM US$273.2 MILLION IN 2013 TO US$313.7 MILLION IN 2014; AND II) A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED REVENUES.

IN THE AGGREGATE FOR THE FULL YEAR, THE CONTENT SEGMENT RESULTS REFLECT A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED SALES THAT AMOUNTED TO PS.301.6 MILLION.

FOURTH QUARTER OPERATING SEGMENT INCOME FOR OUR CONTENT SEGMENT INCREASED BY 9.1% TO PS.5,134.6 MILLION COMPARED WITH PS.4,705.4 MILLION IN FOURTH QUARTER 2013; THE MARGIN WAS 46.1%. THE INCREASE IN THE MARGIN OF 100 BASIS POINTS FROM SAME QUARTER LAST YEAR IS MAINLY EXPLAINED BY THE GROWTH IN ALL OF OUR CONTENT REVENUE LINES AND LOWER PRODUCTION EXPENSES.

FULL-YEAR OPERATING SEGMENT INCOME FOR OUR CONTENT SEGMENT DECREASED BY 0.2% TO PS.15,534.3 MILLION COMPARED WITH PS.15,566.0 MILLION IN 2013. THE MARGIN WAS 44.6%. THE DROP IN THE MARGIN OF 140 BASIS POINTS FROM 2013 IS MAINLY EXPLAINED BY LOWER NETWORK SUBSCRIPTION REVENUE AS A RESULT OF THE MUST-OFFER REGULATION.

SKY

FOURTH QUARTER SALES INCREASED BY 7.4% TO PS.4,489.4 MILLION COMPARED WITH PS.4,180.7 MILLION IN FOURTH QUARTER 2013. DURING THE QUARTER, SKY ADDED A TOTAL OF 120,297 SUBSCRIBERS, MAINLY IN MEXICO.

FULL YEAR SALES INCREASED BY 8.7% TO PS.17,498.6 MILLION COMPARED WITH PS.16,098.3 MILLION IN 2013. THE ANNUAL INCREASE WAS DRIVEN BY SOLID GROWTH IN THE SUBSCRIBER BASE OF MORE THAN 622 THOUSAND, WHICH IS EXPLAINED BY THE CONTINUED SUCCESS OF SKY’S LOW-COST OFFERING. AS OF DECEMBER 31, 2014, THE NUMBER OF NET ACTIVE SUBSCRIBERS INCREASED TO 6,638,032 (INCLUDING 174,986 COMMERCIAL SUBSCRIBERS), COMPARED WITH 6,015,475 (INCLUDING 168,063 COMMERCIAL SUBSCRIBERS) AS OF DECEMBER 31, 2013. SKY CLOSED THE YEAR WITH 192,358 SUBSCRIBERS IN CENTRAL AMERICA AND THE DOMINICAN REPUBLIC.

FOURTH QUARTER OPERATING SEGMENT INCOME INCREASED BY 14.4% TO PS.2,044.7 MILLION COMPARED WITH PS.1,787.3 MILLION IN FOURTH QUARTER 2013, AND THE MARGIN WAS 45.5%. THE INCREASE IN THE MARGIN OF 270 BASIS POINTS FROM SAME QUARTER LAST YEAR IS EXPLAINED BY THE GROWTH IN REVENUES AND THE ABSENCE OF THE AMORTIZATION OF COSTS RELATED WITH THE 24 EXCLUSIVE MATCHES OF THE 2014 SOCCER WORLD CUP. THIS EFFECT WAS PARTIALLY OFFSET BY HIGHER PROGRAMMING COSTS.

FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 11.9% TO PS.8,211.3 MILLION COMPARED WITH PS.7,340.5 MILLION IN 2013, AND THE MARGIN WAS 46.9%. THE INCREASE IN THE MARGIN OF 130 BASIS POINTS FROM LAST YEAR REFLECTS I) AN INCREASE IN SALES; AND II) SALES EXPENSES THAT EXPANDED AT A SLOWER PACE. THIS EFFECT WAS PARTIALLY OFFSET BY HIGHER MARKETING EXPENSES.

TELECOMMUNICATIONS

FOURTH QUARTER SALES INCREASED BY 35.4% TO PS.6,227.8 MILLION COMPARED WITH PS.4,599.4 MILLION IN FOURTH QUARTER 2013 DRIVEN BY GROWTH IN ALL OF OUR CABLE PLATFORMS AND THE CONSOLIDATION, FOR THE FULL QUARTER, OF PS.1,040.0 MILLION OF REVENUES FROM CABLECOM. EXCLUDING CABLECOM, FOURTH QUARTER SALES FROM OUR CABLE AND NETWORK OPERATIONS INCREASED BY 12.8%.

FULL YEAR SALES INCREASED BY 22.2% TO PS.20,937.3 MILLION COMPARED WITH PS.17,138.8 MILLION IN 2013. THIS INCREASE INCLUDES THE CONSOLIDATION, STARTING SEPTEMBER 1ST, OF PS.1,369.7 MILLION REVENUES FROM CABLECOM. EXCLUDING CABLECOM, FULL YEAR SALES EXPERIENCED A GROWTH OF 14.2%.

ALSO EXCLUDING THE ACQUISITION OF CABLECOM, VOICE AND DATA REVENUE GENERATING UNITS, OR RGUS, GREW 18.2% AND 21.2% COMPARED WITH FOURTH-QUARTER 2013, RESPECTIVELY, WHILE VIDEO RGUS GREW BY 4.3%.

THE FOLLOWING INFORMATION SETS FORTH THE BREAKDOWN OF RGUS PER SERVICE TYPE FOR OUR TELECOMMUNICATIONS SEGMENT AS OF DECEMBER 31, 2014 AND 2013:

THE RGUS OF VIDEO, BROADBAND AND VOICE AS OF DECEMBER 31, 2014 AMOUNTED TO 3,356,732, 2,288,709  AND 1,228,182 RGUS, RESPECTIVELY, FOR A TOTAL OF 6,873,623 RGUS.

THE RGUS OF VIDEO, BROADBAND AND VOICE AS OF DECEMBER 31, 2013 AMOUNTED TO 2,495,312, 1,666,788  AND 915,927 RGUS, RESPECTIVELY, FOR A TOTAL OF 5,078,027 RGUS.

CABLECOM´S THIRD QUARTER 2014 VIDEO RGUS WERE PREVIOUSLY REPORTED AS 803,850. THIS FIGURE SHOULD HAVE BEEN REPORTED AS 745,995.

FOURTH QUARTER OPERATING SEGMENT INCOME INCREASED BY 50.7% TO PS.2,495.9 MILLION COMPARED WITH PS.1,656.2 MILLION IN FOURTH QUARTER 2013, AND THE MARGIN REACHED 40.1%. THESE RESULTS REFLECTED THE CONSOLIDATION OF CABLECOM, WHICH CONTRIBUTED WITH PS.480.8 MILLION TO OPERATING SEGMENT INCOME, AND LOWER LEASING AND LONG DISTANCE EXPENSES. EXCLUDING CABLECOM, FOURTH QUARTER OPERATING SEGMENT INCOME INCREASED BY 21.7%.

FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 28.6% TO PS.7,882.9 MILLION COMPARED WITH PS.6,131.8 MILLION IN 2013, AND THE MARGIN REACHED 37.7%, AN INCREASE OF 190 BASIS POINTS FROM 2013. THESE RESULTS PRIMARILY REFLECTED THE CONSOLIDATION OF CABLECOM, WHICH CONTRIBUTED WITH PS.638.1 MILLION TO OPERATING SEGMENT INCOME, CONTINUED GROWTH IN THE CABLE PLATFORMS AND BESTEL, AND THE BENEFIT FROM LOWER PROGRAMMING COSTS AS A RESULT OF THE MUST-OFFER REGULATION. THESE FAVORABLE VARIANCES WERE PARTIALLY OFFSET BY THE INCREASE IN MAINTENANCE COSTS, PERSONNEL COSTS, AND ADVERTISING SPENDING DURING THE YEAR. EXCLUDING CABLECOM, FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 18.2%.

THE FOLLOWING INFORMATION SETS FORTH THE BREAKDOWN OF REVENUES AND OPERATING SEGMENT INCOME, EXCLUDING CONSOLIDATION ADJUSTMENTS, FOR OUR CABLE AND NETWORK OPERATIONS FOR 2014 AND 2013.

OUR CABLE OPERATIONS INCLUDE THE VIDEO, VOICE AND DATA SERVICES PROVIDED BY CABLEVISIÓN, CABLEMÁS, TVI, AND CABLECOM. OUR NETWORK OPERATIONS INCLUDE THE SERVICES OFFERED BY BESTEL AND THE NETWORK OPERATIONS OF CABLECOM. IN THE CASE OF CABLECOM ONLY, THE PERIOD FROM SEPTEMBER 1ST TO DECEMBER 31ST, 2014 IS INCLUDED:

THE REVENUES FOR 2014 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.17,497.0 MILLION AND PS.3,987.0 MILLION, RESPECTIVELY.

THE REVENUES FOR 2013 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.14,530.8 MILLION AND PS.3,051.4 MILLION, RESPECTIVELY.

THE OPERATING SEGMENT INCOME FOR 2014 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.6,798.5 MILLION AND PS.1,315.9 MILLION, RESPECTIVELY, AND INCLUDES CERTAIN EXPENSES PREVIOUSLY INCLUDED IN THE CONSOLIDATION ADJUSTMENTS FIGURE AS REPORTED IN THE FIRST THREE QUARTERS OF 2014. FOR THE FULL YEAR, THAT FIGURE IS EQUIVALENT TO PS.335.0 MILLION. THESE EXPENSES ARE BETTER ACCOUNTED FOR AS OPERATING EXPENSES AS THEY ARE RELATED TO THE MANAGEMENT STRUCTURE CREATED TO LEAD IN THE EXPANSION AND INTEGRATION OF TELEVISA´S TELECOMMUNICATIONS OPERATIONS.

THE OPERATING SEGMENT INCOME FOR 2013 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.5,552.7 MILLION AND PS.820.7 MILLION, RESPECTIVELY.

THESE RESULTS DO NOT INCLUDE CONSOLIDATION ADJUSTMENTS OF PS.546.7 MILLION AND PS.443.4 MILLION IN REVENUES IN 2014 AND 2013, RESPECTIVELY, OR PS.231.5 MILLION AND PS.241.6 MILLION IN OPERATING SEGMENT INCOME IN 2014 AND 2013, RESPECTIVELY, WHICH ARE CONSIDERED IN THE CONSOLIDATED RESULTS OF THE TELECOMMUNICATIONS SEGMENT.

OTHER BUSINESSES

FOURTH QUARTER SALES DECREASED BY 1.6% TO PS.2,533.2 MILLION COMPARED WITH PS.2,574.8 MILLION IN FOURTH QUARTER 2013. THE DECREASE IS MAINLY EXPLAINED BY A DROP IN REVENUES FROM OUR PUBLISHING BUSINESS, WHICH WAS PARTIALLY OFFSET BY AN INCREASE IN THE REVENUES OF OUR GAMING AND FEATURE-FILM DISTRIBUTION BUSINESSES.

FULL YEAR SALES INCREASED BY 1.6% TO PS.8,204.0 MILLION COMPARED WITH PS.8,073.3 MILLION IN 2013. BUSINESSES THAT PERFORMED WELL INCLUDE FEATURE-FILM DISTRIBUTION, GAMING, AND RADIO. THE FEATURE-FILM DISTRIBUTION BUSINESS DISTRIBUTED HITS SUCH AS “THE HUNGER GAMES: MOCKINGJAY” AND “CÁSESE QUIEN PUEDA”. THE GAMING BUSINESS BENEFITED FROM HIGHER REVENUES FROM OUR ELECTRONIC GAMING MACHINES, WHILE THE RADIO BUSINESS SAW AN INCREASE IN ADVERTISING REVENUES.

FOURTH QUARTER OPERATING SEGMENT INCOME REACHED PS.197.0 MILLION COMPARED WITH PS.340.9 MILLION IN FOURTH QUARTER 2013.

FULL YEAR OPERATING SEGMENT INCOME REACHED PS.651.2 MILLION COMPARED WITH PS.822.1 MILLION IN 2013, REFLECTING I) A DECREASE IN THE OPERATING SEGMENT INCOME OF OUR PUBLISHING BUSINESS; II) AN INCREASE IN THE OPERATING SEGMENT INCOME OF GAMING, SOCCER, RADIO, AND FEATURE-FILM DISTRIBUTION BUSINESSES; AND III) A SMALLER OPERATING SEGMENT LOSS IN OUR PUBLISHING DISTRIBUTION BUSINESS.

INTERSEGMENT OPERATIONS

INTERSEGMENT OPERATIONS FOR 2014 AND 2013 AMOUNTED TO PS.1,389.6 MILLION AND PS.1,337.3 MILLION, RESPECTIVELY.

INTERSEGMENT OPERATIONS FOR THE FOURTH QUARTER 2014 AND 2013 AMOUNTED TO PS.359.1 MILLION AND PS.345.6 MILLION, RESPECTIVELY.

CORPORATE EXPENSES

CORPORATE EXPENSE INCREASED BY PS.286.0 MILLION, TO PS.1,478.5 MILLION IN 2014, FROM PS.1,192.5 MILLION IN 2013. THE INCREASE REFLECTED PRIMARILY A HIGHER SHARE-BASED COMPENSATION EXPENSE.

SHARE-BASED COMPENSATION EXPENSE IN 2014 AND 2013 AMOUNTED TO PS.844.8 MILLION AND PS.605.1 MILLION, RESPECTIVELY, AND WAS ACCOUNTED FOR AS CORPORATE EXPENSE. SHARE-BASED COMPENSATION EXPENSE IS MEASURED AT FAIR VALUE AT THE TIME THE EQUITY BENEFITS ARE CONDITIONALLY SOLD TO OFFICERS AND EMPLOYEES, AND IS RECOGNIZED OVER THE VESTING PERIOD. THE INCREASE OF PS.239.7 MILLION REFLECTED PRIMARILY A HIGHER NUMBER OF OUR CPOS CONDITIONALLY SOLD TO OFFICERS AND EMPLOYEES IN OUR TELECOMMUNICATIONS SEGMENT, AS WELL AS THE INCREASE IN THE MARKET PRICE OF OUR CPO FROM LAST YEAR.

OTHER EXPENSE, NET

OTHER EXPENSE, NET, INCREASED BY PS.5,198.6 MILLION  TO PS.5,281.7 MILLION IN 2014, FROM PS.83.1 MILLION  IN 2013. THIS INCREASE REFLECTED PRIMARILY A ONE-TIME NON-CASH LOSS ON THE DISPOSITION OF OUR INVESTMENT IN GSF TELECOM HOLDINGS, S.A.P.I. DE C.V. (“GSF”), OUR 50% JOINT VENTURE IN THE IUSACELL TELECOM BUSINESS, IN CONNECTION WITH A TRANSACTION AGREEMENT ENTERED INTO BY US AND THE OTHER OWNER OF GSF IN SEPTEMBER 2014, AS DISCUSSED BELOW.

OTHER EXPENSE, NET, FOR THE YEAR ENDED DECEMBER 31, 2014, ALSO INCLUDED FINANCIAL ADVISORY AND PROFESSIONAL SERVICES, LOSS ON DISPOSITION OF PROPERTY AND EQUIPMENT, DONATIONS, AND A NON-CASH IMPAIRMENT CHARGE RELATED TO GOODWILL AND TRADEMARKS IN OUR PUBLISHING BUSINESS.

NON-OPERATING RESULTS

FINANCE EXPENSE OR INCOME, NET

THE FOLLOWING INFORMATION SETS FORTH THE FINANCE EXPENSE OR INCOME, NET, STATED IN MILLIONS OF MEXICAN PESOS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013:

FINANCE EXPENSE, NET, AMOUNTED TO PS.4,328.9 MILLION IN 2014 COMPARED WITH A FINANCE INCOME, NET OF PS.884.7 MILLION IN 2013. THE UNFAVORABLE CHANGE OF PS.5,213.6 MILLION REFLECTED PRIMARILY (I) A PS.748.3 MILLION INCREASE IN INTEREST EXPENSE TO PS.5,551.5 MILLION IN 2014 COMPARED WITH PS.4,803.2 MILLION IN 2013, DUE PRIMARILY TO A HIGHER AVERAGE PRINCIPAL AMOUNT OF DEBT AND FINANCE LEASE OBLIGATIONS IN 2014; (II) A PS.1,107.4 MILLION INCREASE IN FOREIGN EXCHANGE LOSS TO PS.1,391.2 MILLION IN 2014 COMPARED WITH PS.283.8 MILLION IN 2013, RESULTING PRIMARILY FROM THE EFFECT OF A 12.9% DEPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR ON OUR AVERAGE NET UNHEDGED U.S. DOLLAR LIABILITY POSITION IN 2014 COMPARED WITH A 1.8% DEPRECIATION AND A LOWER U.S. DOLLAR LIABILITY POSITION IN 2013; AND (III) A PS.3,555.6 MILLION DECREASE IN OTHER FINANCE INCOME, NET, TO PS.1,286.1 MILLION IN 2014 COMPARED WITH PS.4,841.7 MILLION IN 2013, RESULTING  PRIMARILY FROM A LOWER FINANCE INCOME RESULTING FROM A CHANGE IN FAIR VALUE OF THE EMBEDDED DERIVATE RELATED TO OUR OPTION TO CONVERT DEBENTURES ISSUED BY THE CONTROLLING COMPANY OF UNIVISION (“BMP”)  INTO AN EQUITY STAKE OF BMP. THESE UNFAVORABLE VARIANCES WERE PARTIALLY OFFSET BY A PS.197.7 MILLION INCREASE IN INTEREST INCOME TO PS.1,327.7 MILLION IN 2014 COMPARED WITH PS.1,130.0 MILLION IN 2013, EXPLAINED PRIMARILY BY A HIGHER AVERAGE AMOUNT OF CASH EQUIVALENTS AND TEMPORARY INVESTMENTS IN 2014.

SHARE OF INCOME OR LOSS OF JOINT VENTURES AND ASSOCIATES, NET

SHARE OF INCOME OF JOINT VENTURES AND ASSOCIATES, NET, AMOUNTED TO PS.13.2 MILLION IN 2014 COMPARED WITH A SHARE OF LOSS OF JOINT VENTURES AND ASSOCIATES, NET, OF PS.5,659.9 MILLION IN 2013. THE FAVORABLE CHANGE OF PS.5,673.1 MILLION REFLECTED MAINLY THE ABSENCE OF AN IMPAIRMENT ADJUSTMENT MADE IN 2013 TO OUR INVESTMENT IN GSF, AS WELL AS A LOWER LOSS OF GSF AS WE DISCONTINUED RECOGNIZING OUR SHARE OF LOSS OF THIS JOINT VENTURE IN SEPTEMBER 2014, IN CONNECTION WITH A TRANSACTION AGREEMENT TO DISPOSE OF OUR INVESTMENT IN GSF, WHICH WAS COMPLETED IN JANUARY 2015.

INCOME TAXES

INCOME TAXES DECREASED BY PS.748.1 MILLION, OR 20.1%, TO PS.2,980.9  MILLION IN 2014 COMPARED WITH  PS.3,729.0 MILLION IN 2013. THIS DECREASE REFLECTED PRIMARILY A LOWER INCOME TAX BASE.

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS DECREASED BY PS.1,213.0 MILLION, OR 48.8%, TO PS.1,272.9 MILLION IN 2014, COMPARED WITH PS.2,485.9 MILLION IN 2013. THIS DECREASE REFLECTED PRIMARILY A LOWER PORTION OF NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS IN OUR SKY AND TELECOMMUNICATIONS SEGMENTS.

OTHER RELEVANT INFORMATION

CAPITAL EXPENDITURES, ACQUISITIONS AND DISPOSITIONS

DURING 2014, WE INVESTED APPROXIMATELY US$1,275.8 MILLION IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES. THESE CAPITAL EXPENDITURES INCLUDED APPROXIMATELY US$702.9 MILLION FOR OUR TELECOMMUNICATIONS SEGMENT, U.S.$388.8 MILLION FOR OUR SKY SEGMENT, AND US$184.1 MILLION FOR OUR CONTENT AND OTHER BUSINESSES SEGMENTS.

OUR INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT IN OUR TELECOMMUNICATIONS SEGMENT DURING  2014 INCLUDED APPROXIMATELY US$199.9 MILLION FOR CABLEVISIÓN, US$290.0 MILLION FOR CABLEMÁS, US$131.3 MILLION FOR TVI, US$23.2 MILLION FOR CABLECOM, AND US$58.5 MILLION FOR BESTEL.

IN AUGUST 2014 WE ACQUIRED, PURSUANT TO APPLICABLE REGULATIONS, ALL OF THE EQUITY INTEREST OF GRUPO CABLE TV, S.A. DE C.V. (“CABLECOM”) THROUGH THE CONVERSION OF CERTAIN DEBT INSTRUMENTS PREVIOUSLY SUBSCRIBED BY TENEDORA ARES, S.A.P.I. DE C.V. (“ARES”), THE CONTROLLING COMPANY OF CABLECOM, THE CAPITALIZATION OF A LONG-TERM CREDIT PREVIOUSLY SUBSCRIBED BY ARES, AND CASH IN THE AMOUNT OF PS.5,908.0 MILLION. THE TOTAL FAIR VALUE CONSIDERATION FOR THE ACQUISITION OF CABLECOM AMOUNTED TO PS.15,847.7 MILLION AT THE ACQUISITION DATE. WE BEGAN TO CONSOLIDATE CABLECOM IN OUR CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF AUGUST 31, 2014, AND THEREFORE, OUR CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2014 INCLUDED THE RESULTS OF CABLECOM FOR THE FOUR MONTHS ENDED ON THAT DATE.

IN SEPTEMBER 2014, THE OTHER OWNER OF GSF AGREED TO PURCHASE OUR 50% EQUITY PARTICIPATION IN THE IUSACELL TELECOM BUSINESS AT A CASH PURCHASE PRICE OF US$717.0 MILLION. AS A RESULT OF THIS TRANSACTION, WE RECOGNIZED A ONE-TIME NON-CASH LOSS ON THE DISPOSITION OF GSF OF APPROXIMATELY US$316.0 MILLION (PS.4,168.5 MILLION) IN CONSOLIDATED OTHER EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2014. THIS TRANSACTION WAS COMPLETED IN JANUARY 2015.
 
ON JANUARY 8, 2015, WE ANNOUNCED THE ACQUISITION OF 100% OF THE EQUITY INTEREST OF CABLEVISIÓN RED, S.A. DE C.V. AND ITS RELATED COMPANIES (“TELECABLE”) FOR AN AGGREGATE CONSIDERATION OF PS.10,002.0 MILLION. TELECABLE IS A TELECOMMUNICATIONS COMPANY THAT PROVIDES VIDEO, DATA AND TELEPHONY SERVICES IN MEXICO, PRIMARILY IN THE STATES OF GUANAJUATO, JALISCO, AGUASCALIENTES, QUERÉTARO, TAMAULIPAS, AND COLIMA, AMONG OTHERS. TELECABLE HAS APPROXIMATELY 650 THOUSAND REVENUE GENERATING UNITS.

OTHER RELEVANT INFORMATION

EFFECTIVE JANUARY 2015, RICARDO PÉREZ TEUFFER ASSUMED THE ROLE OF CORPORATE VICE PRESIDENT OF SALES AND MARKETING OF GRUPO TELEVISA, REPLACING ALEJANDRO QUINTERO IÑIGUEZ, WHO ALSO STEPS DOWN AS BOARD MEMBER OF GRUPO TELEVISA. PRIOR TO THIS NEW EXPANDED ROLE, MR. PÉREZ TEUFFER SERVED AS VICE PRESIDENT OF SPECIAL AND SPORTS EVENTS OF GRUPO TELEVISA.

DEBT AND FINANCE LEASE OBLIGATIONS

THE FOLLOWING INFORMATION SETS FORTH OUR TOTAL DEBT AND FINANCE LEASE OBLIGATIONS AS OF DECEMBER 31, 2014 AND 2013. AMOUNTS ARE STATED IN MILLIONS OF MEXICAN PESOS:

THE TOTAL CONSOLIDATED DEBT AMOUNTED TO PS.80,997.6 MILLION AND PS.60,055.8 MILLION AS OF DECEMBER 31, 2014 AND 2013, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION  OF LONG-TERM DEBT IN THE AMOUNT OF PS.337.1 MILLION AND PS.312.7 MILLION, RESPECTIVELY. DEBT AMOUNTS ARE PRINCIPAL AMOUNTS NET OF FINANCE COSTS, AND DO NOT INCLUDE INTEREST PAYABLE RELATED TO THIS DEBT IN THE AMOUNT OF PS.974.9 MILLION AND PS.796.2 MILLION AS OF DECEMBER 31, 2014 AND 2013, RESPECTIVELY.

ADDITIONALLY,  WE HAD FINANCE LEASE OBLIGATIONS IN THE AMOUNT OF PS.5,309.6 MILLION AND PS.4,919.2 MILLION AS OF DECEMBER 31, 2014 AND 2013, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION OF PS.502.2 MILLION  AND PS.424.7 MILLION, RESPECTIVELY.

AS OF DECEMBER 31, 2014, OUR CONSOLIDATED NET DEBT POSITION (TOTAL DEBT LESS CASH AND CASH EQUIVALENTS, TEMPORARY INVESTMENTS, AND NONCURRENT HELD-TO-MATURITY AND AVAILABLE-FOR-SALE INVESTMENTS) WAS PS.40,506.9 MILLION. THE AGGREGATE AMOUNT OF NONCURRENT HELD-TO-MATURITY AND AVAILABLE-FOR-SALE INVESTMENTS AS OF DECEMBER 31, 2014, AMOUNTED TO PS.5,972.8 MILLION.

IN SEPTEMBER 2014, WE PREPAID PESO-DENOMINATED LONG-TERM BANK LOANS IN THE PRINCIPAL AMOUNT OF PS.4,500.0 MILLION, WHICH WERE ORIGINALLY DUE IN 2016. THE AGGREGATE AMOUNT PAID BY US AMOUNTED TO PS.4,775.9 MILLION, WHICH INCLUDED RELATED ACCRUED INTEREST AND FEES.

SHARES OUTSTANDING

AS OF DECEMBER 31, 2014 AND 2013, OUR SHARES OUTSTANDING AMOUNTED TO 338,056.2 MILLION AND 335,501.0 MILLION SHARES, RESPECTIVELY, AND OUR CPO EQUIVALENTS OUTSTANDING AMOUNTED TO 2,889.4 MILLION AND 2,867.5 MILLION CPO EQUIVALENTS, RESPECTIVELY. NOT ALL OF OUR SHARES ARE IN THE FORM OF CPOS. THE NUMBER OF CPO EQUIVALENTS IS CALCULATED BY DIVIDING THE NUMBER OF SHARES OUTSTANDING BY 117.

AS OF DECEMBER 31, 2014 AND 2013, THE GDS (GLOBAL DEPOSITARY SHARES) EQUIVALENTS OUTSTANDING AMOUNTED TO 577.9 MILLION AND 573.5 MILLION GDS EQUIVALENTS, RESPECTIVELY. THE NUMBER OF GDS EQUIVALENTS IS CALCULATED BY DIVIDING THE NUMBER OF CPO EQUIVALENTS BY FIVE.

ABOUT TELEVISA

TELEVISA IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING WORLD BASED ON ITS MARKET CAPITALIZATION AND A MAJOR PARTICIPANT IN THE INTERNATIONAL ENTERTAINMENT BUSINESS. IT OPERATES FOUR BROADCAST CHANNELS IN MEXICO CITY, PRODUCES AND DISTRIBUTES 25 PAY-TV BRANDS FOR DISTRIBUTION IN MEXICO AND THE REST OF THE WORLD, AND EXPORTS ITS PROGRAMS AND FORMATS TO THE U.S. THROUGH UNIVISION COMMUNICATIONS INC. (“UNIVISION”) AND TO OTHER TELEVISION NETWORKS IN OVER 50 COUNTRIES. TELEVISA IS ALSO AN ACTIVE PARTICIPANT IN MEXICO’S TELECOMMUNICATIONS INDUSTRY. IT HAS A MAJORITY INTEREST IN SKY, A LEADING DIRECT-TO-HOME SATELLITE TELEVISION SYSTEM OPERATING IN MEXICO, THE DOMINICAN REPUBLIC AND CENTRAL AMERICA. TELEVISA ALSO PARTICIPATES IN MEXICO´S TELECOMMUNICATIONS INDUSTRY IN MANY REGIONS OF THE COUNTRY WHERE IT OFFERS VIDEO, VOICE, AND BROADBAND SERVICES. TELEVISA ALSO HAS INTERESTS IN MAGAZINE PUBLISHING AND DISTRIBUTION, RADIO PRODUCTION AND BROADCASTING, PROFESSIONAL SPORTS AND LIVE ENTERTAINMENT, FEATURE-FILM PRODUCTION AND DISTRIBUTION, THE OPERATION OF A HORIZONTAL INTERNET PORTAL, AND GAMING. IN THE UNITED STATES, TELEVISA HAS EQUITY AND DEBENTURES THAT, UPON CONVERSION AND SUBJECT TO ANY NECESSARY APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION (“FCC”) IN THE UNITED STATES, WILL REPRESENT APPROXIMATELY 38% ON A FULLY DILUTED, AS-CONVERTED BASIS OF THE EQUITY CAPITAL IN BROADCASTING MEDIA PARTNERS, INC. (“BMP”), THE CONTROLLING COMPANY OF UNIVISION, THE LEADING MEDIA COMPANY SERVING THE UNITED STATES HISPANIC MARKET.

DISCLAIMER

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.

THE FINANCIAL INSTITUTIONS THAT PERFORM FINANCIAL ANALYSIS ON THE SECURITIES OF GRUPO TELEVISA, S.A.B. ARE AS FOLLOWS:

INSTITUTION:
   BARCLAYS
   BBVA BANCOMER
   BTG PACTUAL
   CREDIT SUISSE
   GABELLI & CO.
   GBM CASA DE BOLSA
   GOLDMAN SACHS
   HSBC
   INVEX
   ITAÚ SECURITIES
   JPMORGAN
   MAXIM GROUP
   MERRILL LYNCH
   MORGAN STANLEY
   NEW STREET
   SANTANDER
   SCOTIABANK
   UBS
 
 
 

 
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 04 YEAR: 2014
GRUPO TELEVISA, S.A.B.
 
FINANCIAL STATEMENT NOTES
Audited Information
CONSOLIDATED
Final Printing
 
GRUPO TELEVISA, S.A.B. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(IN THOUSANDS OF MEXICAN PESOS)

1.          BASIS OF PREPARATION AND ACCOUNTING POLICIES:

THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A.B. (THE "COMPANY") AND SUBSIDIARIES (COLLECTIVELY, THE "GROUP"), FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, ARE UNAUDITED, AND HAVE BEEN PREPARED BY USING THE GUIDELINES PROVIDED BY THE INTERNATIONAL ACCOUNTING STANDARD 34, INTERIM FINANCIAL REPORTING. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS NECESSARY FOR A FAIR PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN INCLUDED HEREIN.

 THESE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE GROUP'S AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, WHICH HAVE BEEN PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”) AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD, AND INCLUDE, AMONG OTHER DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH WERE APPLIED ON A CONSISTENT BASIS AS OF DECEMBER 31, 2014.
 
THESE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS WERE AUTHORIZED FOR ISSUANCE ON MARCH 31, 2015, BY THE GROUP’S CHIEF FINANCIAL OFFICER.

2.         PROPERTY, PLANT AND EQUIPMENT:

PROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, 2014 AND 2013 CONSISTED OF:


     
2014
   
2013
 
 
BUILDINGS
  PS. 8,464,531     PS. 8,411,136  
 
BUILDING IMPROVEMENTS
    339,828       305,402  
 
TECHNICAL EQUIPMENT
    79,921,698       66,508,565  
 
SATELLITE TRANSPONDERS
    7,869,492       7,869,492  
 
FURNITURE AND FIXTURES
    907,006       825,284  
 
TRANSPORTATION EQUIPMENT
    2,054,309       1,907,209  
 
COMPUTER EQUIPMENT
    5,962,735       5,341,054  
 
LEASEHOLD IMPROVEMENTS
    1,641,527       1,528,911  
        107,161,126       92,697,053  
 
ACCUMULATED DEPRECIATION
    (57,539,568 )     (49,198,237 )
        49,621,558       43,498,816  
 
LAND
    4,627,984       4,597,648  
 
CONSTRUCTION AND PROJECTS IN PROGRESS
    7,759,966       5,380,011  
      PS. 62,009,508     PS. 53,476,475  

DEPRECIATION CHARGED TO INCOME FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 WAS PS.10,086,524 AND PS.8,861,390, RESPECTIVELY.
 
DURING THE YEAR ENDED DECEMBER 31, 2014, THE GROUP INVESTED PS.17,122,316 IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES.

3.         DEBT AND FINANCE LEASE OBLIGATIONS:

DEBT AND FINANCE LEASE OBLIGATIONS OUTSTANDING AS OF DECEMBER 31, 2014 AND 2013 WERE AS FOLLOWS:

   
2014
   
2013
 
U.S. DOLLAR DEBT:
           
     6% SENIOR NOTES DUE 2018 (A)
  PS. 7,357,713     PS. 6,507,849  
     6.625% SENIOR NOTES DUE 2025 (A)
    8,464,108       7,414,019  
     8.50% SENIOR NOTES DUE 2032 (A)
    4,397,923       3,890,267  
     6.625% SENIOR NOTES DUE 2040 (A)
    8,698,080       7,679,931  
     5% SENIOR NOTES DUE 2045 (A)
    14,246,853       -  
          TOTAL U.S. DOLLAR DEBT
    43,164,677       25,492,066  
                 
MEXICAN  PESO DEBT:
               
     7.38% NOTES DUE 2020 (B)
    9,958,857       9,951,803  
     TIIE + 0.35% NOTES DUE 2021 (B)
    5,986,897       -  
     8.49% SENIOR NOTES DUE 2037 (A)
    4,483,747       4,483,022  
     7.25% SENIOR NOTES DUE 2043 (A)
    6,432,698       6,430,330  
     BANK LOANS
    5,874,843       8,589,233  
     BANK LOANS (SKY)
    3,500,000       3,500,000  
     BANK LOANS (TVI)
    1,595,932       1,609,361  
          TOTAL MEXICAN PESO DEBT
    37,832,974       34,563,749  
          TOTAL DEBT (C)
    80,997,651       60,055,815  
          LESS: SHORT-TERM DEBT AND CURRENT PORTION OF LONG-TERM DEBT           
    337,148       312,715  
          LONG-TERM DEBT, NET OF CURRENT PORTION
  PS. 80,660,503     PS. 59,743,100  
FINANCE LEASE OBLIGATIONS:
               
     SATELLITE TRANSPONDER LEASE OBLIGATION
  PS. 4,401,423     PS. 4,077,561  
     OTHER
    908,122       841,686  
          TOTAL FINANCE LEASE OBLIGATIONS
    5,309,545       4,919,247  
          LESS: CURRENT PORTION
    502,166       424,698  
          FINANCE LEASE OBLIGATIONS, NET OF CURRENT PORTION
  PS. 4,807,379     PS. 4,494,549  

(A)  
THESE SENIOR NOTES 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. INTEREST ON THE SENIOR NOTES DUE 2018, 2025, 2032, 2037, 2040, 2043 AND 2045, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 6.31%, 6.97%, 8.94%, 8.93%, 6.97%, 7.62% AND 5.26% PER ANNUM, RESPECTIVELY, AND IS PAYABLE SEMI-ANNUALLY. THESE SENIOR NOTES MAY NOT BE REDEEMED PRIOR TO MATURITY, EXCEPT (I) 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; AND (II) IN THE EVENT OF A CHANGE OF CONTROL, IN WHICH CASE THE COMPANY MAY BE REQUIRED TO REDEEM THE SECURITIES AT 101% OF THEIR PRINCIPAL AMOUNT. ALSO, THE COMPANY MAY, AT ITS OWN OPTION, REDEEM THE SENIOR NOTES DUE 2018, 2025, 2037, 2040 AND 2043, IN WHOLE OR IN PART, AT ANY TIME AT A REDEMPTION PRICE EQUAL TO THE GREATER OF THE PRINCIPAL AMOUNT OF THESE SENIOR NOTES OR THE PRESENT VALUE OF FUTURE CASH FLOWS, AT THE REDEMPTION DATE, OF PRINCIPAL AND INTEREST AMOUNTS OF THE SENIOR NOTES DISCOUNTED AT A FIXED RATE OF COMPARABLE U.S. OR MEXICAN SOVEREIGN BONDS. THE AGREEMENT OF THESE SENIOR NOTES CONTAINS COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES ENGAGED IN THE GROUP’S CONTENT SEGMENT, TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS. THE SENIOR NOTES DUE 2018, 2025, 2032, 2037, 2040 AND 2045 ARE REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (“SEC”). THE SENIOR NOTES DUE 2043 ARE REGISTERED WITH BOTH THE SEC AND THE MEXICAN BANKING AND SECURITIES COMMISSION (“COMISIÓN NACIONAL BANCARIA Y DE VALORES” OR “CNBV”).

(B)  
INTEREST ON THESE NOTES (“CERTIFICADOS BURSÁTILES”) IS PAYABLE SEMI-ANNUALLY FOR NOTES DUE 2020 AND EVERY 28 DAYS FOR NOTES DUE 2021. THE COMPANY MAY, AT ITS OWN OPTION, REDEEM THE NOTES DUE 2020, IN WHOLE OR IN PART, AT ANY SEMI-ANNUAL INTEREST PAYMENT DATE AT A REDEMPTION PRICE EQUAL TO THE GREATER OF THE PRINCIPAL AMOUNT OF THE OUTSTANDING NOTES AND THE PRESENT VALUE OF FUTURE CASH FLOWS, AT THE REDEMPTION DATE, OF PRINCIPAL AND INTEREST AMOUNTS OF THE NOTES DISCOUNTED AT A FIXED RATE OF COMPARABLE MEXICAN SOVEREIGN BONDS. THE COMPANY MAY, AT ITS OWN OPTION, REDEEM THE NOTES DUE 2021, IN WHOLE OR IN PART, AT ANY DATE AT A REDEMPTION PRICE EQUAL TO THE GREATER OF THE PRINCIPAL AMOUNT OF THE OUTSTANDING NOTES AND AN AVERAGE PRICE CALCULATED FROM PRICES TO BE PROVIDED AT THE REDEMPTION DATE BY TWO MEXICAN FINANCIAL PRICING COMPANIES. THE AGREEMENT OF THESE NOTES CONTAINS COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES APPOINTED BY THE COMPANY’S BOARD OF DIRECTORS, AND ENGAGED IN THE GROUP’S CONTENT SEGMENT, TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.

(C)  
TOTAL DEBT IS PRESENTED NET OF UNAMORTIZED FINANCE COSTS AS OF DECEMBER 31, 2014 AND 2013, IN THE AGGREGATE AMOUNT OF PS.1,268,856 AND PS.808,585, RESPECTIVELY.
 
IN APRIL 2014, THE COMPANY CONCLUDED AN OFFERING OF LOCAL BONDS (“CERTIFICADOS BURSÁTILES”) DUE 2021 FOR A PRINCIPAL AMOUNT OF PS.6,000,000  WITH AN INTEREST RATE OF THE 28-DAY INTERBANK EQUILIBRIUM INTEREST RATE (“TASA DE INTERÉS INTERBANCARIA DE EQUILIBRIO” OR “TIIE”) PLUS 0.35%, WHICH WAS REGISTERED WITH THE CNBV.
 
IN MAY 2014, THE COMPANY CONCLUDED AN OFFERING OF U.S.$1,000 MILLION (PS.12,922,300) AGGREGATE PRINCIPAL AMOUNT OF 5% SENIOR NOTES DUE 2045, WHICH WAS REGISTERED WITH THE SEC.
 
IN SEPTEMBER 2014, THE COMPANY PREPAID PESO-DENOMINATED LONG-TERM BANK LOANS IN THE PRINCIPAL AMOUNT OF PS.4,500,000, WHICH WERE ORIGINALLY DUE IN 2016.
 
IN SEPTEMBER 2014, THE COMPANY PREPAID A PESO-DENOMINATED LONG-TERM BANK LOAN PREVIOUSLY SUBSCRIBED BY CABLECOM IN THE PRINCIPAL AMOUNT OF PS.1,771,000, WHICH WAS ORIGINALLY DUE IN 2018. THIS PREPAYMENT WAS FUNDED BY THE COMPANY WITH A LONG-TERM BANK LOAN IN THE PRINCIPAL AMOUNT OF PS.1,782,000, WITH A MATURITY IN 2016.
 
DURING THE FIRST QUARTER OF 2015, THE GROUP INCURRED ADDITIONAL DEBT WITH A MEXICAN BANK IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.1,000,000, OF WHICH PS.250,000 IS SHORT-TERM DEBT AND PS.750,000 IS LONG-TERM DEBT WITH MATURITIES BETWEEN 2016 AND 2019. THIS DEBT BEARS ANNUAL INTEREST OF 28-DAY TIIE PLUS A RANGE BETWEEN 0 AND 140 BASIS POINTS, PAYABLE ON A MONTHLY BASIS. ALSO, THE GROUP PREPAID LONG-TERM DEBT AND RELATED ACCRUED INTEREST OF TELECABLE, THE TELECOMMUNICATIONS BUSINESS ACQUIRED BY THE GROUP IN JANUARY 2015, IN THE AGGREGATE AMOUNT OF PS.507,362.
 
4.         CONTINGENCIES:
 
THERE ARE SEVERAL LEGAL ACTIONS AND CLAIMS PENDING AGAINST THE GROUP WHICH ARE FILED IN THE ORDINARY COURSE OF BUSINESS. IN THE OPINION OF THE COMPANY’S MANAGEMENT, NONE OF THESE ACTIONS AND CLAIMS IS EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT ON THE GROUP’S FINANCIAL STATEMENTS AS A WHOLE; HOWEVER, THE COMPANY´S MANAGEMENT IS UNABLE TO PREDICT THE OUTCOME OF ANY OF THESE LEGAL ACTIONS AND CLAIMS.

5.        EQUITY:

THE EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY AS OF DECEMBER 31, 2014 AND 2013, IS PRESENTED AS FOLLOWS:

   
2014
   
2013
 
NOMINAL CAPITAL STOCK
  PS. 2,494,410     PS. 2,494,410  
CUMULATIVE INFLATION ADJUSTMENT (A)
    2,483,716       2,483,716  
TOTAL CAPITAL STOCK
    4,978,126       4,978,126  
ADDITIONAL PAID-IN CAPITAL
    15,889,819       15,889,819  
RETAINED EARNINGS
    57,518,539       49,149,607  
ACCUMULATED OTHER COMPREHENSIVE INCOME, NET
    5,679,063       3,394,051  
SHARES REPURCHASED AND ACQUIRED BY A COMPANY’S TRUST
    (12,647,475 )     (12,848,448 )
NET INCOME FOR THE YEAR
    5,386,905       7,748,279  
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY
  PS. 76,804,977     PS. 68,311,434  

(A)  ADJUSTMENT TO RECOGNIZE THE EFFECTS OF INFLATION IN CAPITAL STOCK THROUGH DECEMBER 31, 1997, DETERMINED BY APPLYING THE CHANGE IN THE MEXICAN NATIONAL CONSUMER PRICE INDEX BETWEEN THE DATES CAPITAL STOCK WAS CONTRIBUTED AND DECEMBER 31, 1997, THE DATE THROUGH WHICH THE MEXICAN ECONOMY WAS CONSIDERED HYPERINFLATIONARY UNDER THE GUIDELINES OF THE IFRS.

        ON APRIL 2, 2013, THE COMPANY’S STOCKHOLDERS APPROVED THE PAYMENT OF A DIVIDEND OF PS.0.35 PER CPO AND PS.0.002991452991 PER SHARE OF SERIES “A”, “B”, “D” AND “L” SHARES, NOT IN THE FORM OF A CPO, WHICH  WAS PAID IN CASH IN MAY 2013 IN THE AGGREGATE AMOUNT OF PS.1,084,192.

         ON DECEMBER 9, 2013, THE COMPANY´S STOCKHOLDERS APPROVED THE PAYMENT OF A DIVIDEND OF PS.0.35 PER CPO AND PS.0.002991452991 PER SHARE OF SERIES “A”, “B”, “D” AND “L” SHARES, NOT IN THE FORM OF A CPO, WHICH WAS PAID IN CASH IN DECEMBER 2013 IN THE AGGREGATE AMOUNT OF PS.1,084,192.

        AS OF DECEMBER 31, 2014, THE NUMBER OF SHARES ISSUED, ACQUIRED BY A COMPANY’S TRUST AND OUTSTANDING IS PRESENTED AS FOLLOWS:
 
     
ISSUED
   
ACQUIRED BY A COMPANY’S TRUST
   
OUTSTANDING
 
 
SERIES “A” SHARES
    123,273,961,425       8,237,414,459       115,036,546,966  
 
SERIES “B” SHARES
    58,982,873,976       5,652,055,183       53,330,818,793  
 
SERIES “D” SHARES
    90,086,525,865       5,242,099,644       84,844,426,221  
 
SERIES “L” SHARES
    90,086,525,865       5,242,099,644       84,844,426,221  
        362,429,887,131       24,373,668,930       338,056,218,201  
 
 AS OF DECEMBER 31, 2014, THE COMPANY’S SHARES REPURCHASED AND ACQUIRED BY A SPECIAL TRUST IN CONNECTION WITH THE COMPANY’S LONG-TERM RETENTION PLAN ARE PRESENTED AS A CHARGE TO THE EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY, AS FOLLOWS:
 
   
SERIES “A”, “B”, “D”, AND “L” SHARES
       
   
IN THE FORM
OF CPOS
   
NOT IN THE
FORM OF CPOS
   
 
TOTAL
   
 
NET COST
 
REPURCHASE PROGRAM (1)
    -       -       -     PS. -  
ACQUIRED BY A COMPANY’S TRUST  (2)
    17,523,590,058       6,850,078,872       24,373,668,930       10,158,204  
ADVANCES FOR ACQUISITION OF SHARES (3)
    -       -       -       2,489,271  
      17,523,590,058       6,850,078,872       24,373,668,930     PS. 12,647,475  

(1)  
DURING THE YEAR ENDED DECEMBER 31, 2014 THE COMPANY DID NOT REPURCHASE ANY COMPANY’S SHARES IN THE FORM OF CPOS.

(2)  
DURING THE YEAR ENDED DECEMBER 31, 2014, THE TRUST FOR THE LONG-TERM RETENTION PLAN ACQUIRED 332,844,759 SHARES OF THE COMPANY, IN THE FORM OF 2,844,827 CPOS, IN THE AMOUNT OF PS.273,154, AND RELEASED 2,515,356,792 SHARES IN THE FORM OF 21,498,776 CPOS, AND 372,683,376 SERIES ”A” SHARES, IN THE AGGREGATE AMOUNT OF PS.973,294 IN CONNECTION WITH THE LONG-TERM RETENTION PLAN.

(3)  
IN CONNECTION WITH THE LONG-TERM RETENTION PLAN.

THE GROUP RECOGNIZED A STOCK-BASED COMPENSATION EXPENSE OF PS.844,788 AND PS.605,067 AS CONSOLIDATED ADMINISTRATIVE EXPENSE FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, RESPECTIVELY, OF WHICH PS.821,626 AND PS.601,181 WAS CREDITED IN CONSOLIDATED STOCKHOLDERS’ EQUITY FOR THOSE YEARS, RESPECTIVELY.

6.         FINANCE (EXPENSE) INCOME, NET:

FINANCE (EXPENSE) INCOME FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, INCLUDED:

   
2014
   
2013
 
INTEREST EXPENSE
  PS. (5,551,461 )   PS. (4,803,151 )
FOREIGN EXCHANGE LOSS, NET
    (1,391,169 )     (283,821 )
   FINANCE EXPENSE
    (6,942,630 )     (5,086,972 )
INTEREST INCOME (1)
    1,327,691       1,129,955  
OTHER FINANCE INCOME, NET (2)(3)
    1,286,014       4,841,734  
   FINANCE INCOME
    2,613,705       5,971,689  
   FINANCE (EXPENSE) INCOME, NET
  PS. (4,328,925 )   PS. 884,717  
                 
(1) IN 2014 AND 2013 INCLUDED INTEREST INCOME FROM THE GROUP’S INVESTMENT IN FINANCIAL INSTRUMENTS ISSUED BY BMP AND ARES IN THE AGGREGATE AMOUNT OF PS.450,270 AND PS.358,927,  RESPECTIVELY.

(2)  IN 2014 AND 2013 INCLUDED CHANGES IN FAIR VALUE FROM AN EMBEDDED DERIVATIVE IN A HOST CONTRACT RELATED TO THE GROUP’S INVESTMENT IN CONVERTIBLE DEBENTURES ISSUED BY BMP IN THE AMOUNT OF PS.1,477,103 AND PS.4,988,479, RESPECTIVELY.

(3) IN CONNECTION WITH THE ACQUISITION OF CABLECOM IN 2014, THE AMOUNT OF PS.770,941 WAS RECLASSIFIED FROM OTHER COMPREHENSIVE INCOME TO FINANCIAL INCOME AND WAS OFFSET BY FAIR VALUE ADJUSTMENTS OF THE EMBEDDED DERIVATIVE IN CONVERTIBLE DEBT ISSUED BY ARES.
 
7.         INCOME TAXES:

IN THE LAST QUARTER OF 2013 THE MEXICAN CONGRESS ENACTED A NEW TAX REFORM (THE “2014 TAX REFORM”), WHICH BECAME EFFECTIVE AS OF JANUARY 1, 2014.  AMONG THE TAX REFORMS APPROVED BY THE MEXICAN CONGRESS, ONE OF THE MOST RELEVANT CHANGES WAS THE ELIMINATION OF THE TAX CONSOLIDATION REGIME ALLOWED FOR MEXICAN CONTROLLING COMPANIES THROUGH DECEMBER 31, 2013.
 
IN THE YEAR ENDED DECEMBER 31, 2013, CURRENT INCOME TAXES INCLUDED INCOME TAXES COMPUTED ON A TAX CONSOLIDATED BASIS, IETU (FLAT TAX), AND AMOUNTS RESULTING FROM INCOME TAXES RELATED TO PRIOR YEARS.
 
THE EFFECTS OF INCOME TAX PAYABLE AS OF DECEMBER 31, 2014 AND 2013, IN CONNECTION WITH THE 2014 MEXICAN TAX REFORM, WERE AS FOLLOWS:

   
2014
   
2013
 
TAX LOSSES OF SUBSIDIARIES, NET
  PS. 6,900,765     PS. 6,801,998  
DIVIDENDS DISTRIBUTED AMONG THE GROUP’S ENTITIES
    6,122       11,597  
      6,906,887       6,813,595  
LESS: CURRENT PORTION
    358,117       183,730  
NON-CURRENT PORTION
  PS. 6,548,770     PS. 6,629,865  


             THE EFFECTS OF INCOME TAX PAYABLE AS OF DECEMBER 31, 2014 AND 2013, IN CONNECTION WITH THE 2010 MEXICAN TAX REFORM, WERE AS FOLLOWS:

   
2014
   
2013
 
TAX LOSSES OF SUBSIDIARIES, NET
  PS. 177,918     PS. 350,197  
DIVIDENDS DISTRIBUTED AMONG THE GROUP’S ENTITIES
    -       81,029  
      177,918       431,226  
LESS: CURRENT PORTION
    98,563       260,285  
NON-CURRENT PORTION
  PS. 79,355     PS. 170,941  
 
          AS A RESULT OF THE 2014 TAX REFORM, THE COMPANY IS NOT LONGER ALLOWED TO CONSOLIDATE INCOME OR LOSS OF ITS MEXICAN SUBSIDIARIES FOR INCOME TAX PURPOSES. AS OF DECEMBER 31, 2013, CURRENT INCOME TAX ASSETS AND LIABILITIES AND DEFERRED INCOME TAX ASSETS AND LIABILITIES, AS REPORTED BY SEPARATE TAXABLE ENTITIES IN THE GROUP, ARE PRESENTED AS FOLLOWS:

   
 2013
 
CURRENT INCOME TAXES:
     
     ASSETS
  PS. 3,376,170  
     LIABILITIES
    1,830,622  
     NET
  PS. 1,545,548  
DEFERRED INCOME TAXES:
       
     ASSETS
  PS. 13,968,108  
     LIABILITIES
    3,359,330  
     NET
  PS. 10,608,778  
 
            THE DEFERRED INCOME TAXES AS OF DECEMBER 31, 2014 AND 2013, WERE PRINCIPALLY DERIVED FROM:
 
   
2014
   
2013
 
ASSETS:
           
     ACCRUED LIABILITIES
  PS. 1,284,458     PS. 1,455,444  
     ALLOWANCE FOR DOUBTFUL ACCOUNTS
    917,269       753,090  
     CUSTOMER ADVANCES
    2,186,836       2,480,552  
     INTANGIBLE ASSETS AND TRANSMISSION RIGHTS
    -       755,985  
     PREPAID EXPENSES AND OTHER ITEMS
    297,836       -  
LIABILITIES:
               
     INVESTMENTS
    (443,538 )     (1,147,683 )
     PROPERTY, PLANT AND EQUIPMENT, NET
    (202,002 )     (1,727,736 )
     DERIVATIVE FINANCIAL INSTRUMENTS
    (152,491 )     (366,225 )
     PREPAID EXPENSES AND OTHER ITEMS
    -       (542,435 )
     INTANGIBLE ASSETS AND TRANSMISSION RIGHTS
    (2,961,129 )     -  
DEFERRED INCOME TAXES OF MEXICAN COMPANIES
    927,239       1,660,992  
DEFERRED INCOME TAXES OF FOREIGN SUBSIDIARIES
    200,410       165,832  
ASSET TAX
    435,265       845,910  
TAX LOSS CARRYFORWARDS
    6,754,354       7,936,044  
DEFERRED INCOME TAX ASSET, NET
  PS. 8,317,268     PS. 10,608,778  
 
8. SEGMENT INFORMATION AND SEASONALITY:

 INFORMATION BY SEGMENTS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, IS PRESENTED AS FOLLOWS:
   
TOTAL REVENUES
   
INTERSEGMENT REVENUES
   
CONSOLIDATED REVENUES
   
SEGMENT PROFIT (LOSS)
   
2014:
                         
CONTENT
  PS. 34,868,080     PS. 1,039,950     PS. 33,828,130     PS. 15,534,269    
SKY
    17,498,586       13,982       17,484,604       8,211,269    
TELECOMMUNICATIONS (3)
    20,937,250       116,258       20,820,992       7,882,911    
OTHER BUSINESSES
    8,204,060       219,434       7,984,626       651,267    
SEGMENT TOTALS
    81,507,976       1,389,624       80,118,352       32,279,716    
RECONCILIATION TO CONSOLIDATED
AMOUNTS:
                                 
ELIMINATIONS AND CORPORATE EXPENSES
    (1,389,624 )     (1,389,624 )     -       (1,478,534 )  
DEPRECIATION AND AMORTIZATION EXPENSE
    -       -       -       (11,563,085 )  
CONSOLIDATED TOTAL BEFORE OTHER EXPENSE
    80,118,352       -       80,118,352       19,238,097   (1)
OTHER EXPENSE, NET
    -       -       -       (5,281,690 )  
CONSOLIDATED TOTAL
  PS. 80,118,352     PS. -     PS. 80,118,352     PS. 13,956,407   (2)
                                   
2013:
                                 
CONTENT
  PS. 33,817,614     PS. 822,694     PS. 32,994,920     PS. 15,565,959    
SKY
    16,098,262       24,143       16,074,119       7,340,525    
TELECOMMUNICATIONS
    17,138,795       106,271       17,032,524       6,131,773    
OTHER BUSINESSES
    8,073,364       384,216       7,689,148       822,047    
SEGMENT TOTALS
    75,128,035       1,337,324       73,790,711       29,860,304    
RECONCILIATION TO CONSOLIDATED
AMOUNTS:
                                 
ELIMINATIONS AND CORPORATE EXPENSES
    (1,337,324 )     (1,337,324 )     -       (1,192,453 )  
DEPRECIATION AND AMORTIZATION EXPENSE
    -       -       -       (9,846,366 )  
CONSOLIDATED TOTAL BEFORE OTHER EXPENSE
    73,790,711       -       73,790,711       18,821,485   (1)
OTHER EXPENSE, NET
    -       -       -       (83,150 )  
CONSOLIDATED TOTAL
  PS. 73,790,711     PS. -     PS. 73,790,711     PS. 18,738,335   (1)

(1)  
CONSOLIDATED TOTALS REPRESENTS INCOME BEFORE OTHER EXPENSE.
(2)  
CONSOLIDATED TOTALS REPRESENTS CONSOLIDATED OPERATING INCOME.
(3)  
IN 2014, CABLECOM CONTRIBUTED TOTAL REVENUES AND SEGMENT INCOME TO THE GROUP’S TELECOMMUNICATIONS SEGMENT FOR THE FOUR MONTHS ENDED DECEMBER 31, 2014, IN THE AMOUNT OF PS.1,369,753 AND 638,196, RESPECTIVELY, AS THE GROUP BEGAN TO CONSOLIDATE THE CABLECOM RESULTS OF OPERATIONS BEGINNING IN SEPTEMBER 2014 (SEE NOTE 10). HAD CABLECOM BEEN CONSOLIDATED FROM JANUARY 1, 2014, TOTAL REVENUES AND SEGMENT INCOME OF THE GROUP’S TELECOMMUNICATIONS SEGMENT FOR THE YEAR ENDED DECEMBER 31, 2014 WOULD HAVE INCREASED IN PS.2,593,323 AND PS.1,223,277, RESPECTIVELY.
 
BEGINNING IN THE FIRST QUARTER OF 2014, THE GROUP’S OTHER BUSINESSES SEGMENT INCLUDES THE PUBLISHING BUSINESS, WHICH WAS PREVIOUSLY REPORTED AS A SEPARATE REPORTABLE SEGMENT. THE GROUP’S PUBLISHING BUSINESS WAS CLASSIFIED INTO THE OTHER BUSINESSES SEGMENT IN 2014 SINCE ITS OPERATIONS BECAME NO LONGER SIGNIFICANT TO THE GROUP’S CONSOLIDATED FINANCIAL STATEMENTS TAKEN AS A WHOLE.
 
SEASONALITY

THE GROUP’S RESULTS OF OPERATIONS ARE SEASONAL. THE GROUP TYPICALLY RECOGNIZES A LARGE PERCENTAGE OF ITS CONSOLIDATED NET SALES (PRINCIPALLY ADVERTISING) IN THE FOURTH QUARTER IN CONNECTION WITH THE HOLIDAY SHOPPING SEASON. IN 2014 AND 2013, THE GROUP RECOGNIZED 30.0% AND 29.1%, RESPECTIVELY, OF ITS ANNUAL CONSOLIDATED NET SALES IN THE FOURTH QUARTER OF THE YEAR. THE GROUP’S COSTS, IN CONTRAST TO ITS REVENUES, ARE MORE EVENLY INCURRED THROUGHOUT THE YEAR AND GENERALLY DO NOT CORRELATE TO THE AMOUNT OF ADVERTISING SALES.
 
THE CONSOLIDATED NET INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY FOR EACH OF THE FOUR QUARTERS IN THE PERIOD ENDED DECEMBER 31, 2014, IS PRESENTED AS FOLLOWS:
 
QUARTER
 
ACCUMULATED
   
QUARTER
 
IST  / 14
  PS. 853,868     PS. 853,868  
2ND / 14
    3,065,452       2,211,584  
3RD / 14
    2,882,651       (182,801 )
4TH / 14
    5,386,905       2,504,254  
 
9.      INVESTMENT IN GSF:
 
DURING 2013, THE GROUP MADE CAPITAL CONTRIBUTIONS IN CONNECTION WITH ITS 50% INTEREST IN GSF IN THE AGGREGATE AMOUNT OF PS.1,587,500. DURING 2014, NO CAPITAL CONTRIBUTIONS WERE MADE BY THE GROUP IN CONNECTION WITH ITS INTEREST IN GSF.
 
IN SEPTEMBER 2014, THE GROUP’S PARTNER IN GSF AGREED TO PURCHASE THE GROUP’S 50% EQUITY PARTICIPATION IN THE IUSACELL TELECOM BUSINESS AT A CASH PRICE OF U.S.$717 MILLION (PS.9,461,532). AS A RESULT OF THIS TRANSACTION, WHICH WAS SUBJECT TO CUSTOMARY CLOSING CONDITIONS AND REQUIRED REGULATORY APPROVALS, THE GROUP DISCONTINUED RECOGNIZING ITS SHARE OF INCOME OR LOSS OF GSF; AND RECOGNIZED A NON-CASH LOSS OF PS.4,168,468 IN CONSOLIDATED OTHER EXPENSE AND AN ACCOUNT RECEIVABLE FOR THE AGREED SALE AMOUNT. AS OF DECEMBER 31, 2014, THE RELATED ACCOUNT RECEIVABLE AMOUNTED TO U.S.$717 MILLION (PS.10,583,852). IN DECEMBER 2014, THE REQUIRED REGULATORY APPROVALS FOR THIS TRANSACTION WERE OBTAINED. IN JANUARY 2015, THE GROUP RECEIVED PROCEEDS IN THE AGGREGATE AMOUNT OF U.S.$717 MILLION (PS.10,632,393) IN CONNECTION WITH THE DISPOSAL OF ITS INVESTMENT IN GSF, OF WHICH U.S.$697 MILLION WERE IN CASH AND U.S.$20 MILLION WERE HELD IN ESCROW FOR CERTAIN CONTINGENT LITIGATION COSTS.

10.      OTHER TRANSACTIONS AND EVENTS:
 
  (A)  IN AUGUST 2014, THE GROUP ACQUIRED, PURSUANT TO APPLICABLE REGULATIONS, ALL OF THE EQUITY INTEREST OF GRUPO CABLE TV, S.A. DE C.V. (“CABLECOM”) THROUGH THE CONVERSION OF THE DEBT INSTRUMENTS ISSUED BY TENEDORA ARES, S.A.P.I. DE C.V. (“ARES”) THE CONTROLLING COMPANY OF CABLECOM, IN THE AMOUNT OF PS.7,297,292, INCLUDING ACCRUED INTEREST AT THE ACQUISITION DATE, AND AN ADDITIONAL CONSIDERATION OF PS.8,550,369, COMPRISED OF (I) THE CAPITALIZATION OF AN OUTSTANDING LONG-TERM DEBT ISSUED BY ARES IN THE AMOUNT OF U.S.$200.2 MILLION (Ps.2,642,367), INCLUDING ACCRUED INTEREST AT THE ACQUISITION DATE; AND (II) CASH IN THE AMOUNT OF PS.5,908,002. THE TOTAL FAIR VALUE CONSIDERATION FOR THIS ACQUISITION AMOUNTED TO PS.15,847,661, AND THE GROUP RECOGNIZED GOODWILL. OTHER INTANGIBLE ASSETS AND RELATED DEFERRED INCOME TAX LIABILITY BASED ON A FINAL VALUATION AND A PURCHASE PRICE ALLOCATION AT THE ACQUISITION DATE.  THE GROUP BEGAN TO CONSOLIDATE THE NET ASSETS OF CABLECOM IN ITS CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF AUGUST 31, 2014, AND THEREFORE, THE GROUP’S CONSOLIDATED STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2014, INCLUDED NET INCOME OF CABLECOM FOR FOUR MONTHS ENDED ON THAT DATE. THE FOLLOWING TABLE SUMMARIZES THE ALLOCATION OF THE PURCHASE PRICE TO THE TANGIBLE AND IDENTIFIABLE INTANGIBLE ASSETS ACQUIRED AND LIABILITIES ASSUMED AT THE ACQUISITION DATE. THE EXCESS OF THE PURCHASE PRICE OVER THOSE FAIR VALUES AND THE RELATED DEFERRED INCOME TAX LIABILITY WAS ALLOCATED TO GOODWILL.

 
       
AUGUST 31,
2014
 
 
ASSETS:
       
   
CASH AND CASH EQUIVALENTS
  PS. 371,353  
   
TRADE AND OTHER RECEIVABLES
    269,868  
   
OTHER CURRENT ASSETS
    169,841  
   
          TOTAL CURRENT ASSETS
    811,062  
   
 PROPERTY, PLANT AND EQUIPMENT, NET
    2,762,363  
   
GOODWILL
    6,913,684  
   
CONCESSIONS
    7,650,430  
   
OTHER INTANGIBLE ASSETS, NET
    3,635,767  
   
OTHER NON-CURRENT ASSETS
    161,169  
   
          TOTAL ASSETS
    21,934,475  
 
LIABILITIES:
         
   
TRADE AND OTHER PAYABLES
    528,177  
   
SHORT-TERM DEBT AND CURRENT PORTION OF
       
   
    LONG-TERM DEBT
    443,475  
   
OTHER CURRENT LIABILITIES
    94,309  
   
          TOTAL CURRENT LIABILITIES
    1,065,961  
   
LONG-TERM DEBT
    1,454,046  
   
POST-EMPLOYMENT BENEFITS
    61,823  
   
DEFERRED INCOME TAX LIABILITIES
    3,491,066  
   
OTHER NON-CURRENT LIABILITIES
    13,918  
   
          TOTAL NON-CURRENT LIABILITIES
    5,020,853  
   
          TOTAL LIABILITIES
    6,086,814  
   
          TOTAL NET ASSETS
  PS. 15,847,661  
 
 (B)   IN THE YEARS ENDED DECEMBER 31, 2014 AND 2013, ROYALTY REVENUE FROM UNIVISION AMOUNTED TO PS.4,194,379 AND PS.3,522,284, RESPECTIVELY.
 
 (C)  IN JANUARY 2015, THE GROUP ACQUIRED, THROUGH A SERIES OF TRANSACTIONS, ALL OF THE EQUITY INTEREST OF CABLEVISIÓN RED, S.A. DE C.V. AND OTHER RELATED COMPANIES (“TELECABLE”). THIS TRANSACTION CONSISTED OF THE ACQUISITION OF THE EQUITY INTEREST OF TELECABLE FOR AN AGGREGATE CONSIDERATION OF PS.10,001,838. TELECABLE IS A TELECOMMUNICATIONS COMPANY THAT PROVIDES VIDEO, DATA AND TELEPHONE SERVICES IN MEXICO, PRIMARILY IN THE STATES OF GUANAJUATO, JALISCO, AGUASCALIENTES, QUERÉTARO, TAMAULIPAS AND COLIMA, AMONG OTHERS, WITH APPROXIMATELY 650,000 REVENUE GENERATING UNITS. IN CONNECTION WITH THIS ACQUISITION, THE GROUP RECOGNIZED AN EXCESS OF PURCHASE PRICE OVER THE CARRYING VALUE OF ACQUIRED NET ASSETS, WHICH CONSISTED PRIMARILY OF INTANGIBLE ASSETS AND LIABILITIES ASSUMED, IN THE AGGREGATE AMOUNT OF PS.8,774,852 BASED ON A PRELIMINARY VALUATION AT THE ACQUISITION DATE. THE GROUP EXPECTS TO COMPLETE A FINAL VALUATION AND PURCHASE PRICE ALLOCATION OF THIS TRANSACTION DURING 2015. THE GROUP BEGAN TO CONSOLIDATE THE NET ASSETS OF TELECABLE IN ITS CONSOLIDATED FINANCIAL STATEMENTS AS OF JANUARY 1, 2015. THE FOLLOWING TABLE SUMMARIZES THE CARRYING VALUE OF ACQUIRED NET ASSETS OF TELECABLE AT THE ACQUISITION DATE.

       
JANUARY 1,
2015
 
 
ASSETS:
       
   
CASH AND CASH EQUIVALENTS
  PS. 198,077  
   
TRADE AND OTHER RECEIVABLES
    52,543  
   
OTHER CURRENT ASSETS
    33,931  
   
          TOTAL CURRENT ASSETS
    284,551  
   
 PROPERTY, PLANT AND EQUIPMENT, NET
    2,010,563  
   
OTHER NON-CURRENT ASSETS
    90,650  
   
          TOTAL ASSETS
    2,385,764  
 
LIABILITIES:
         
   
TRADE AND OTHER PAYABLES
    174,293  
   
OTHER CURRENT LIABILITIES
    55,217  
   
          TOTAL CURRENT LIABILITIES
    229,510  
   
LONG-TERM DEBT
    505,425  
   
OTHER NON-CURRENT LIABILITIES
    423,843  
   
          TOTAL NON-CURRENT LIABILITIES
    929,268  
   
          TOTAL LIABILITIES
    1,158,778  
   
          TOTAL NET ASSETS
  PS. 1,226,986  
 
(D)   IN FEBRUARY 2015, THE COMPANY’S BOARD OF DIRECTORS APPROVED A PROPOSAL FOR A DIVIDEND OF PS.0.35 PER CPO PAYABLE IN MAY 2015, SUBJECT TO THE APPROVAL OF THE COMPANY’S STOCKHOLDERS.
 
- - - - - - - - - - - -
 
 
 

 
 
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
COMPANY NAME
MAIN ACTIVITIES
NUMBER OF SHARES
%OWNERSHIP
TOTAL AMOUNT
(Thousands of Mexican Pesos)
ACQUISITION COST
BOOK VALUE
1
ARGOS COMUNICACION, S.A. DE C.V.
PRODUCTIONS OF T.V. PROGRAMS BROADCASTING OF T.V.
34,151,934
33.00
141,932
61,861
             
2
BROADCASTING MEDIA PARTNERS, INC
PROMOTION AND/OR DEVELOPMENT OF ENTERTAINMENT COMPANIES
  842,850
  7.81
  2,584,818
  3,507,390
             
3
EDITORIAL CLIO, LIBROS Y VIDEOS, S.A. DE C.V.
PUBLISHING AND PRINTING OF BOOKS AND MAGAZINES
3,227,050
30.00
32,270
5,780
             
ENDEMOL MEXICO, S.A. DE C.V.
PRODUCTION AND COMMERCIALIZATION OF TELEVISION PROGRAMMING
25,000
  50.00
  25
  230
             
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD, S.A.P.I. DE C.V.
TELECOM
  54,666,667
  33.33
  54,667
  576,179
             
6
OCESA ENTRETENIMIENTO, S.A. DE C.V.
LIVE ENTERTAINMENT IN MEXICO
14,100,000
40.00
1,062,811
867,362
             
7
OLLIN VFX, S.A. DE C.V.
TELEVISION AND CINEMA PRODUCTION
34
25.37
13,333
13,333
             
8
T&V S.A.S.
PRODUCTION AND COMMERCIALIZATION OF TELEVISION PROGRAMMING
  1,849
  49.97
  312
  312
TOTAL INVESTMENT IN ASSOCIATES
3,890,168
5,032,447
 
OBSERVATIONS:
 
 
 

 
 
CREDITS BREAKDOWN
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
CREDIT TYPE / INSTITUTION
FOREIGN INSTITUTION (YES/NOT)
 DATE OF CONTRACT
 AMORTIZATION DATE
 INTEREST RATE
AMORTIZATION OF CREDITS DENOMINATED IN PESOS
AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
TIME INTERVAL
TIME INTERVAL
CURRENT YEAR
UNTIL 1 YEAR
UNTIL 2 YEAR
UNTIL 3 YEAR
UNTIL 4 YEAR
UNTIL 5 YEAR
CURRENT YEAR
UNTIL 1 YEAR
UNTIL 2 YEAR
UNTIL 3 YEAR
UNTIL 4 YEAR
UNTIL 5 YEAR
BANKS
                               
FOREIGN TRADE
                               
SECURED
                               
COMMERCIAL BANKS
                               
BANCO NACIONAL DE MÉXICO, S.A.
NO
4/20/2006
4/20/2016
8.74
NO
 
2,100,000
                 
BANCO SANTANDER, S.A.
NO
4/21/2006
4/21/2016
TIIE+24
NO
 
1,400,000
                 
BANCO MERCANTIL DEL NORTE, S.A.
NO
2/24/2011
2/21/2016
TIIE+1.90
NO
265,460
543,963
                 
BANCO NACIONAL DE MÉXICO, S.A.
NO
3/25/2011
3/23/2021
9.40
NO
       
399,375
           
BANCO NACIONAL DE MÉXICO, S.A.
NO
3/25/2011
3/23/2021
9.06
NO
   
319,500
 
479,250
           
BANCO NACIONAL DE MÉXICO, S.A.
NO
3/25/2011
3/23/2018
8.77
NO
     
399,536
             
HSBC MÉXICO, S.A.
NO
3/28/2011
3/30/2018
TIIE+117.5
NO
 
624,248
1,248,495
624,248
             
AF BANREGIO, S.A. DE C.V.
NO
10/4/2012
10/2/2017
TIIE+2.50
NO
7,400
8,850
16,750
               
HSBC MÉXICO, S.A.
NO
5/29/2013
5/29/2019
TIIE+1.70
NO
64,288
64,849
64,849
64,849
196,174
           
HSBC MÉXICO, S.A.
NO
7/4/2014
7/4/2019
TIIE+1.40
NO
       
298,500
           
BANCO SANTANDER, S.A.
NO
9/29/2014
9/29/2016
TIIE+.15
NO
 
1,780,191
                 
                                 
OTHER
                               
TOTAL BANKS
       
               -
337,148
6,522,101
1,649,594
1,088,633
1,373,299
0
0
0
0
0
0
STOCK MARKET
                               
LISTED STOCK EXCHANGE
                               
UNSECURED
                               
SENIOR NOTES
YES
5/9/2007
5/11/2037
8.93
NO
       
4,483,747
           
NOTES
NO
10/14/2010
10/1/2020
7.38
NO
       
9,958,857
           
SENIOR NOTES
YES
5/14/2013
5/14/2043
7.62
NO
       
6,432,698
           
NOTES
NO
4/7/2014
4/1/2021
TIIE+.35
NO
       
5,986,897
           
SENIOR NOTES
YES
5/6/2008
5/15/2018
6.31
NO
                 
7,357,713
 
SENIOR NOTES
YES
3/18/2005
3/18/2025
6.97
NO
                   
8,464,108
SENIOR NOTES
YES
3/11/2002
3/11/2032
8.94
NO
                   
4,397,923
SENIOR NOTES
YES
11/23/2009
1/15/2040
6.97
NO
                   
8,698,080
SENIOR NOTES
YES
5/13/2014
5/13/2045
5.26
NO
                   
14,246,853
SECURED
       
0  
0
0
0
0
26,862,199
0
0
0
0
7,357,713
35,806,964
PRIVATE PLACEMENTS
                               
UNSECURED
                               
SECURED
                               
TOTAL STOCK MARKET
                               
OTHER CURRENT AND NON-CURRENT LIABILITIES WITH COST
                               
CSI LEASING MÉXICO, S. DE R.L. DE C.V.
NO
12/1/2011
10/1/2015
 
NO
2,521
                   
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
8/1/2012
7/1/2020
 
NO
152,919
76,699
74,679
73,197
143,620
           
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
7/1/2014
8/1/2019
 
NO
21,737
19,042
16,946
15,267
9,058
           
ALD AUTOMOTIVE, S.A. DE C.V.
NO
12/1/2013
12/1/2015
 
NO
4,254
                   
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
11/1/2014
11/1/2022
 
NO
335
124
125
126
526
           
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
11/1/2014
11/1/2017
 
NO
7,280
7,840
11,664
               
INTELSAT GLOBAL  SALES & MARKETING, LTD.
YES
10/1/2012
9/1/2027
 
NO
           
217,277
233,680
251,321
270,294
3,428,851
IP MATRIX, S.A. DE C.V.
YES
11/1/2009
11/1/2015
 
NO
           
13,751
       
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
8/1/2012
7/1/2021
 
NO
           
25,514
24,595
20,040
19,241
64,296
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
5/29/2013
7/1/2017
 
NO
           
3,683
3,931
2,637
   
CISCO SYSTEMS CAPITAL CORPORATION
NO
10/10/2012
8/27/2016
 
NO
           
47,237
18,643
     
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
11/1/2014
11/1/2022
 
NO
           
5,658
2,728
2,911
2,953
12,345
TOTAL CURRENT AND NON-CURRENT LIABILITIES WITH COST
       
0  
189,046
103,705
103,414
88,590
153,204
0
313,120
283,577
276,909
292,488
3,505,492
                                 
SUPPLIERS
                               
VARIOUS
NO
12/31/2014
12/31/2015
 
NO
10,156,805
                   
VARIOUS
YES
12/31/2014
12/31/2015
 
NO
           
6,985,239
       
TOTAL SUPPLIERS
       
0  
10,156,805
0
0
0
0
0
6,985,239
0
0
0
0
                                 
OTHER CURRENT AND NON-CURRENT LIABILITIES
                               
VARIOUS
NO
     
NO
22,379,853
911
2,875
2,875
350,923
           
TRANSMISSION RIGHTS
NO
     
NO
 
182,502
103,958
17,679
71,873
           
CUSTOMER DEPOSITS AND ADVANCES
NO
     
NO
 
284,000
                 
2010 AND 2014 MEXICAN TAX REFORM
NO
     
NO
 
396,991
801,727
1,457,864
3,971,543
           
DERIVATIVE FINANCIAL INSTRUMENTS
NO
     
NO
 
89,994
 
175,025
70,083
           
VARIOUS
YES
     
NO
           
1,511,214
5,202
   
93,089
TRANSMISSION RIGHTS
YES
     
NO
             
689,916
619,074
316,071
331,657
OTHER CURRENT AND NON-CURRENT LIABILITIES
       
               -
22,379,853
954,398
908,560
1,653,443
4,464,422
-
1,511,214
695,118
619,074
316,071
424,746
                                 
TOTAL
       
               -
33,062,852
7,580,204
2,661,568
2,830,666
32,853,124
-
8,809,573
978,695
895,983
7,966,272
39,737,202
 
NOTES
THE EXCHANGE RATES FOR THE CREDITS DENOMINATED  IN FOREIGN CURRENCY WERE AS FOLLOWS:

                   $      14.7613     PESOS PER U.S. DOLLAR

DOES NOT INCLUDE  TAX LIABILITIES INCLUDED PAYABLE IN FOREIGN CURRENCY AND MEXICAN PESOS (REF. 21050000 TAXES PAYABLE) OF PS.85,970 AND PS.1,516,999, RESPECTIVELY, FOR EFFECTS OF VALIDATION OF THE SYSTEM.
 
BANK LOANS AND SENIOR NOTES ARE PRESENTED NET OF UNAMORTIZED FINANCE COSTS IN THE AGGREGATE AMOUNT OF PS.1,268,856.
 
 
 

 
 
MONETARY FOREIGN CURRENCY POSITION
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
FOREIGN CURRENCY POSITION
(THOUSANDS OF PESOS)
DOLLARS
OTHER CURRENCIES
TOTAL
THOUSANDS
OF PESOS
THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
           
MONETARY ASSETS
2,739,794
40,442,921
158,657
2,341,984
42,784,905
           
CURRENT
1,434,794
21,179,425
112,232
1,656,694
22,836,119
           
NON-CURRENT
1,305,000
19,263,496
46,425
685,290
19,948,786
           
LIABILITIES POSITION
3,987,204
57,737,091
49,901
736,604
58,473,695
           
CURRENT
558,534
8,244,687
44,092
650,856
8,895,543
           
NON-CURRENT
3,428,670
49,492,404
5,809
85,748
49,578,152
           
NET BALANCE
(1,247,410)
(17,294,170)
108,756
1,605,380
(15,688,790)
 
NOTES: 
 
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS :
 
PS.
14.7613
 
PESOS PER U.S. DOLLAR
 
17.8641
 
PESOS PER EURO
 
12.6960
 
PESOS PER CANADIAN DOLLAR
 
1.7623
 
PESOS PER ARGENTINEAN PESO
 
0.6057
 
PESOS PER URUGUAYAN PESO
 
0.0243
 
PESOS PER CHILEAN PESO
 
0.0062
 
PESOS PER COLOMBIAN PESO
 
4.9385
 
PESOS PER PERUVIAN NUEVO SOL
 
14.8460
 
PESOS PER SWISS FRANC
 
2.3431
 
PESOS PER STRONG BOLIVAR
 
5.5556
 
PESOS PER BRAZILIAN REAL
 
22.9963
 
PESOS PER STERLING LIBRA
 
2.3791
 
PESOS PER CHINESE YUAN
 
1.8978
 
PESOS PER SWEDISH KRONA
 

 
DEBT INSTRUMENTS
CONSOLIDATED
AUDITED INFORMATION Final Printing

 
FINANCIAL RESTRICTIONS OF LONG - TERM DEBT SECURITIES
 
THE AGREEMENTS OF THE  U.S.$500 MILLION, U.S.$600 MILLION, U.S.$300 MILLION, PS.4,500 MILLION, U.S.$600 MILLION, PS.6,500 MILLION AND U.S.$1,000 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A.B. WITH MATURITY IN 2018, 2025, 2032, 2037, 2040, 2043 AND 2045, RESPECTIVELY, CONTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.

THE AGREEMENTS OF NOTES ("CERTIFICADOS BURSÁTILES") DUE 2020 IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.10,000 MILLION AND DUE 2021 IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.6,000 MILLION, CONTAINS COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.

UNDER THE TERMS OF THE AGREEMENTS OF LONG-TERM CREDITS ENTERED INTO BY THE COMPANY WITH TWO MEXICAN BANKS IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.4,100 MILLION, AND MATURITIES BETWEEN 2016 AND 2021, THE COMPANY IS REQUIRED TO (A) MAINTAIN CERTAIN FINANCIAL COVERAGE RATIOS RELATED TO INDEBTEDNESS AND INTEREST EXPENSE; AND (B) COMPLY WITH A RESTRICTIVE COVENANT ON SPIN-OFFS, MERGERS AND SIMILAR TRANSACTIONS.

UNDER THE TERMS OF THE LONG-TERM LOANS ENTERED INTO BY SKY WITH TWO MEXICAN BANKS IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.3,500 MILLION, WITH A MATURITY IN 2016, AND GUARANTEED BY THE COMPANY, SKY IS REQUIRED TO MAINTAIN (A) CERTAIN FINANCIAL COVERAGE RATIOS RELATED TO INDEBTEDNESS AND INTEREST EXPENSE; AND (B) CERTAIN RESTRICTIVE COVENANTS ON INDEBTEDNESS, LIENS, ASSET SALES, AND CERTAIN MERGERS AND CONSOLIDATIONS.

UNDER THE TERMS OF THE AGREEMENTS OF LONG-TERM CREDITS ENTERED INTO BY A SUBSIDIARY OF THE COMPANY WITH TWO MEXICAN BANKS FOR  AN AMOUNT PAYABLE OF $1,600 MILLION AS OF  DECEMBER 31, 2014 AND MATURITIES BETWEEN 2015 AND 2019, THIS SUBSIDIARY IS REQUIRED TO COMPLY WITH CERTAIN FINANCIAL RATIOS AND SOME RESTRICTIVE COVENANTS.


COMPLIANCE WITH FINANCIAL RESTRICTIONS

AT DECEMBER 31, 2014, THE GROUP WAS IN COMPLIANCE WITH THE FINANCIAL RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES DESCRIBED ABOVE.
 
 
 

 
 
SALES DISTRIBUTION BY PRODUCT
TOTAL SALES
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
AUDITED INFORMATION Final Printing
MAIN PRODUCTS
NET SALES
MARKET
SHARE
(%)
MAIN
VOLUME
AMOUNT
TRADEMARKS
CUSTOMERS
DOMESTIC SALES
         
INTERSEGMENT ELIMINATIONS
 
(1,377,239)
     
           
CONTENT:
         
ADVERTISING
 
25,011,190
   
GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V.
         
HAVAS MEDIA, S.A. DE C.V.
         
UNILEVER DE MÉXICO, S. DE R.L. DE C.V.
         
KIMBERLY CLARK DE MÉXICO, S.A.B. DE C.V.
         
COMERCIALIZADORA PEPSICO MÉXICO, S. DE R.L. DE C.V.
         
COMPAÑÍA PROCTER & GAMBLE MÉXICO, S. DE R.L. DE C.V.
         
BIMBO, S.A. DE C.V.
         
THE COCA COLA EXPORT CORPORATION SUCURSAL EN MÉXICO
         
MATTEL DE MÉXICO, S.A. DE C.V.
         
MARCAS NESTLÉ, S.A. DE C.V.
NETWORK SUBSCRIPTION REVENUE
 
2,046,746
   
MEGA CABLE, S.A. DE C.V.
         
CABLEVISIÓN RED, S.A. DE C.V.
LICENSING AND SYNDICATIONS
 
708,276
   
VARIOUS
           
SKY :
         
DTH BROADCAST SATELLITE
 
15,822,175
 
SKY
SUBSCRIBERS
PAY PER VIEW
 
203,379
     
CHANNEL COMMERCIALIZATION
 
346,151
   
COMPAÑÍA INTERNACIONAL DE RADIO Y TELEVISIÓN, S.A.
         
WDC MÉXICO S. DE R.L. DE C.V.
TELECOMMUNICATIONS:
         
DIGITAL SERVICE
 
8,911,651
 
CABLEVISIÓN, CABLEMÁS, TVI Y
SUBSCRIBERS
INTERNET SERVICES
 
4,911,088
 
CABLECOM, IZZI
 
SERVICE INSTALLATION
 
112,507
     
PAY PER VIEW
 
47,745
     
CHANNEL COMMERCIALIZATION
 
506,387
   
MULTILMEDIOS S.A. DE C.V.
         
TENEDORA DE CINES, S.A. DE C.V.
         
TELEVISORA FRONTERIZA, S.A. DE C.V.
         
CANAL DE NOTICIAS DE ROSARITO, S.A. DE C.V.
TELEPHONY
 
2,613,903
     
TELECOMMUNICATIONS
 
3,085,756
 
BESTEL Y CABLECOM
SUBSCRIBERS
OTHER
 
265,880
     
           
OTHER BUSINESSES:
         
PUBLISHING:
         
MAGAZINE CIRCULATION
25,492
522,860
 
TV Y NOVELAS MAGAZINE,
GENERAL PUBLIC (AUDIENCE)
       
MEN´S HEALTH MAGAZINE,
DEALERS
       
VANIDADES MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
COSMOPOLITAN MAGAZINE
 
       
NATIONAL GEOGRAPHIC MAGAZINE
 
       
AUTOMÓVIL PANAMERICANO MAGAZINE
 
       
TÚ MAGAZINE
 
       
SKY VIEW MAGAZINE
 
       
MUY INTERESANTE MAGAZINE
 
       
COCINA FÁCIL MAGAZINE
 
ADVERTISING
 
707,531
   
FÁBRICAS DE CALZADO ANDREA, S.A. DE C.V.
         
KIMBERLY CLARK DE MÉXICO, S.A.B. DE C.V.
         
DILTEX, S.A. DE C.V.
         
COMPAÑÍA PROCTER & GAMBLE DE MÉXICO, S. DE R.L DE C.V.
         
UNILEVER DE MÉXICO, S. DE R.L. DE C.V.
         
WATA GROUP, S.A. DE C.V.
         
COLGATE PALMOLIVE, S.A. DE C.V.
         
ORIONTWORLDWIDE, S.A. DE C.V.
OTHER INCOME
 
18,202
   
VARIOUS
           
DISTRIBUTION, RENTALS, AND SALE
         
OF MOVIE RIGHTS
 
467,403
   
CINE VIDEO Y TV, S.A. DE C.V.
         
OPERADORA DE CINEMAS, S.A. DE C.V.
         
CINEMARK DE MÉXICO, S.A. C.V.
         
TENEDORA DE CINES, S.A. DE C.V.
         
EN PANTALLA PRODUCCIONES INTERNACIONALES, S.A. DE C.V.
SPECIAL EVENTS AND SHOW PROMOTION
 
1,103,527
 
CLUB DE FÚTBOL AMÉRICA
GENERAL PUBLIC (AUDIENCE)
       
IMPULSORA DEL DEPORTIVO NECAXA
FEDERACIÓN MEXICANA DE FÚTBOL ASOCIACIÓN, A.C.
       
ESTADIO AZTECA
AFICIÓN FUTBOL, S.A. DE C.V.
GAMING
 
2,198,714
 
PLAY CITY
GENERAL PUBLIC (AUDIENCE)
       
MULTIJUEGOS
 
ADVERTISED TIME SOLD IN RADIO
 
717,467
   
HAVAS MEDIA, S.A DE C.V.
         
TIENDAS SORIANA, S.A. DE C.V.
         
OPTIMUM MEDIA DIRECTION DE MÉXICO, S.A. DE C.V.
         
ARENA COMMUNICATIONS, S.A. DE C.V.
         
TIENDAS CHEDRAUI, S.A. DE C.V.
         
IPG MEDIA BRANDS COMMUNICATIONS, S.A. DE C.V.
         
DEPORTES Y MEDIOS PANAMERICANA, S.A. DE C.V.
PUBLISHING DISTRIBUTION
8,907
212,048
 
HOLA MÉXICO MAGAZINE
VARIOUS
       
ENTREPRENEUR MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
MINIREVISTA MINA MAGAZINE
DEALERS
       
REVISTA DEL CONSUMIDOR MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
BRAVO POR TI MAGAZINE
 
       
SELECCIONES MAGAZINE
 
           
EXPORT SALES
         
CONTENT:
         
ADVERTISING
 
283,611
   
CC MEDIOS Y COMUNICACIONES, C.A.
NETWORK SUBSCRIPTION REVENUE
 
807,683
   
INTERESES EN EL ITSMO, S.A.
         
DIRECTV ARGENTINA SOCIEDAD ANÓNIMA
         
GALAXY ENTERTAINMENT DE VZLA, C.A. DIRECTV
           
LICENSING AND SYNDICATIONS
 
5,839,739
 
TELEVISA
NETFLIX, INC
       
TELEVISA
CORPORACIÓN VENEZOLANA DE TELEVISIÓN, C.A.
       
TELEVISA
COMPAÑÍA PERUANA DE RADIODIFUSIÓN, S.A.
       
TELEVISA
RED TELEVISIVA MEGAVISION, S.A.
       
TELEVISA
RCN TELEVISIÓN, S.A.
OTHER BUSINESSES:
         
SPECIAL EVENTS AND SHOW PROMOTION
 
142,711
 
CLUB AMÉRICA
 
DISTRIBUTION, RENTALS, AND SALE
         
OF MOVIE RIGHTS
 
61,397
   
NETFLIX, INC
           
SUBSIDIARIES SALES ABROAD
         
CONTENT:
         
ADVERTISING
 
170,835
   
INITIATIVE MEDIA, INC.
         
OPTIMUM MEDIA DIRECTION, INC.
         
GROUP M MATRIX
SKY:
         
DTH BROADCAST SATELLITE
 
1,126,881
 
SKY
SUBSCRIBERS
TELECOMMUNICATIONS:
         
TELECOMMUNICATIONS
 
482,333
 
BESTEL
SUBSCRIBERS
           
OTHER BUSINESS:
         
PUBLISHING:
         
MAGAZINE CIRCULATION
38,579
653,554
 
T.V. Y NOVELAS MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
GENTE MAGAZINE
DEALERS
       
PAPARAZZI MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
VANIDADES MAGAZINE
 
       
COSMOPOLITAN MAGAZINE
 
       
TÚ MAGAZINE
 
       
MUY INTERESANTE  MAGAZINE
 
       
BILINKEN MAGAZINE
 
       
PARA TI MAGAZINE
 
       
CONDORITO MAGAZINE
 
ADVERTISING
 
872,517
   
MCCANN ERICKSON N.Y.
         
ESPACIOS, S.A.
         
R.C.N. TELEVISIÓN S.A.
         
MEDIACOM MIAMI
PUBLISHING DISTRIBUTION:
5,026
98,078
 
SELECCIONES MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
MAGALY TV MAGAZINE
DEALERS
       
VOGUE MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
HOLA MAGAZINE
 
       
EL CUERPO HUMANO MAGAZINE
 
       
HELLO KITTY MAGAZINE
 
       
15 MINUTOS MAGAZINE
 
       
TEJER FÁCIL MAGAZINE
 
RENTALS OF MOVIE FILMS
 
428,051
   
LIONS GATES FILMS, INC.
INTERSEGMENT ELIMINATIONS
 
(12,385)
     
           
TOTAL
78,004
80,118,352
     
 
 
 

 
 
ANALYSIS OF PAID CAPITAL STOCK CHARACTERISTIC OF THE SHARES
CONSOLIDATED
AUDITED INFORMATION Final Printing
SERIES
NOMINAL VALUE (PS.)
VALID COUPON
NUMBER OF SHARES
CAPITAL STOCK
FIXED PORTION
VARIABLE PORTION
MEXICAN
FREE
SUBSCRIPTION
FIXED
VARIABLE
A
0.00000
0
115,036,546,966
0
115,036,546,966
0
848,428
0
B
0.00000
0
53,330,818,793
0
53,330,818,793
0
405,948
0
D
0.00000
0
84,844,426,221
0
84,844,426,221
0
620,017
0
L
0.00000
0
84,844,426,221
0
0
84,844,426,221
620,017
0
TOTAL
   
338,056,218,201
0
253,211,791,980
84,844,426,221
2,494,410
0
 
TOTAL NUMBER OF SHARES REPRESENTING THE PAID CAPITAL STOCK ON THE DATE OF THE INFORMATION:
338,056,218,201
 
 
 
NOTES:
 
THE NUMBER OF OUTSTANDING SHARES PRESENTED IN THE TABLE ABOVE PLUS THE SHARES REPURCHASED REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE NOTE 5 TO CONSOLIDATED FINANCIAL STATEMENTS.
 

 
 
FINANCIAL STATEMENT NOTES
CONSOLIDATED
AUDITED INFORMATION Final Printing
 
 
11060060: AS OF DECEMBER 31, 2014 AND 2013, INCLUDES TRANSMISSION RIGHTS AND PROGRAMMING FOR PS.4,851,722 AND PS.4,970,603, RESPECTIVELY.

12080050: AS OF DECEMBER 31, 2014 AND 2013, INCLUDES TRANSMISSION RIGHTS AND PROGRAMMING FOR PS.8,994,398 AND PS.9,064,845, RESPECTIVELY.

91000010: AT DECEMBER 31, 2014 DOESN´T INCLUDE TAX LIABILITIES IN FOREIGN CURRENCY FOR PS.85,970 (SEE ATTACHED BREAKDOWN OF CREDITS).

CUM40180000: THIS INFORMATION IS RELATED TO EARNINGS PER CPO. THE CPOS ARE THE SECURITIES TRADED IN THE MEXICAN STOCK EXCHANGE.

CUM40190000: THIS INFORMATION IS RELATED TO EARNINGS PER DILUTED CPO.

40180000: THIS INFORMATION IS RELATED TO EARNINGS PER CPO. THE CPOS ARE THE SECURITIES TRADED IN THE MEXICAN STOCK EXCHANGE.

40190000: THIS INFORMATION IS RELATED TO EARNINGS PER DILUTED CPO.
 

THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER CONCEPTS.
 
 
 

 
 
AUDITED INFORMATION
EXHIBIT 1
TO THE ELECTRONIC FORM TITLED “PREPARATION, FILING, DELIVERY AND DISCLOSURE OF QUARTERLY ECONOMIC, ACCOUNTING AND ADMINISTRATIVE INFORMATION BY ISSUERS”

III. QUALITATIVE AND QUANTITATIVE INFORMATION
 
i.           Management’s discussion of the policies concerning the use of financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes. The discussion must include a general description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party. If applicable, provide information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.
 
Management’s discussion of the policies concerning the use of financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes.
 
In accordance with the policies and procedures implemented by the Finance and Risk area and the Vice President and Corporate Controller, along with the Vice President of Internal Audit, the Company has entered into certain financial derivative transactions for hedging purposes in both the Mexican and international markets so as to manage its exposure to the market risks associated with the changes in interest and foreign exchange rates and inflation. In addition, the Company’s Investments Committee has established guidelines for the investment in structured notes or deposits associated with other derivatives, which by their nature may be considered as derivative transactions for trading purposes. It should be noted that in the fourth quarter of 2014, no such financial derivatives were outstanding. Pursuant to the provisions of International Financial Reporting Standards Board, certain financial derivative transactions originally intended to serve as a hedge and in effect until December 31, 2014, are not within the scope of hedge accounting as specified in such Standards and, consequently, are recognized in the accounting based on the provisions included in the aforementioned Standards.
 
General description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party.
 
The Company’s principal objective when entering into financial derivative transactions is to mitigate the effects of unforeseen changes in interest and foreign exchange rates and inflation, so as to reduce the volatility in its results and cash flows as a result of such changes.
 
The Company monitors its exposure to the interest rate risk by: (i) assessing the difference between the interest rates applicable to its debt and temporary investments, and the prevailing market rates for similar instruments; (ii) reviewing its cash flow requirements and financial ratios (interest coverage); (iii) assessing the actual and budgeted-for trends in the principal markets; and (iv) assessing the prevailing industry practices and other similar companies. This approach enables the Company to determine the optimum mix between fixed- and variable-rate interest for its debt.
 
Foreign exchange risk is monitored by assessing the Company’s monetary position in U.S. dollars and its budgeted cash flow requirements for investments anticipated to be denominated in U.S. dollars and the service of its U.S. dollar-denominated debt.
 
Financial derivative transactions are reported from time to time to the Audit and Corporate Practices Committee.
 
The Company has entered into master derivatives agreements with both domestic and foreign financial institutions, that are internationally recognized institutions with which the Company, from time to time, has entered into financial transactions involving corporate and investment banking, as well as treasury services. The form agreement used in connection with financial derivatives transactions with foreign financial institutions is the Master Agreement published by the International Swaps and Derivatives Association, Inc. (“ISDA”) and with local institutions is the Master Agreement published by ISDA and the form agreement recommended by Banco de México. In both cases, the main terms and conditions are standard for these types of transactions and include mechanisms for the appointment of calculation or valuation agents.
 
In addition, the Company enters into standard guaranty agreements that set forth the margins, collateral and lines of credit applicable in each instance. These agreements establish the credit limits granted by the financial institutions with whom the Company enters into master financial derivative agreements, which specify the margin implications in the case of potential negative changes in the market value of its open financial derivative positions. Pursuant to the agreements entered into by the Company, financial institutions are entitled to make margin calls if certain thresholds are exceeded. In the event of a change in the credit rating issued to the Company by a recognized credit rating agency, the credit limit granted by each counterparty would be modified.
 
As of the date hereof, the Company has never experienced a margin call with respect to its financial derivative transactions.
 
In compliance with its risk management objectives and hedging strategies, the Company generally utilizes the following financial derivative transactions:
 
 
1.
 
Cross-currency interest rate swaps (i.e., coupon swaps);
 
 
2.
 
Interest rate and inflation-indexed swaps;
 
 
3.
 
Cross-currency principal and interest rate swaps;
 
 
4.
 
Swaptions;
 
 
5.
 
Forward exchange rate contracts;
 
 
6.
 
FX options;
 
 
7.
 
Interest Rate Caps and Floors contracts;
 
 
8.
 
Fixed-price contracts for the acquisition of government securities (i.e., Treasury locks); and
 
 
9.
 
Credit Default Swaps.
 
 
The strategies for the acquisition of financial derivatives transactions are approved by the Risk Management Committee in accordance with the Policies and Objectives for the Use of Financial Derivatives.
 
During the quarter from October to December 2014, there were no defaults or margin calls under the aforementioned financial derivative transactions.
 
The Company monitors on a weekly basis the flows generated by the fair market value of and the potential for margin calls under its open financial derivative transactions. The calculation or valuation agent designated in the relevant Master Agreement, which is always the counterparty, issues monthly reports as to the fair market value of the Company’s open positions.
 
The Risk Management area is responsible for measuring, at least once a month, the Company’s exposure to the financial market risks associated with its financings and investments, and for submitting a report with respect to the Company’s risk position and the valuation of its financial derivatives to the Finance Committee on a monthly basis, and to the Risk Management Committee on a quarterly basis. The Company monitors the credit rating assigned to its counterparties in its outstanding financial derivative transactions on a regular basis.
 
The office of the Comptroller is responsible for the validation of the Company’s accounting records as related to its financial derivative transactions, based upon the confirmations received from the relevant financial intermediaries, and for obtaining from such intermediaries, on a monthly basis, confirmations or account statements supporting the market valuation of its open financial derivative positions.
 
As a part of the yearly audit on the Company, the aforementioned procedures are reviewed by the Company’s external auditors. As of the date hereof, the Company’s auditors have not raised any observation or identified any deficiency therein.
 
Information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.
 
The Company has a Risk Management Committee, which is responsible for monitoring the Company’s risk management activities and approving the hedging strategies used to mitigate the financial market risks to which the Company is exposed. The assessment and hedging of the financial market risks are subject to the policies and procedures applicable to the Company’s Risk Management Committee, the Finance and Risk Management areas and the Comptroller that form the Risk Management Manual of the Company. In general terms, the Risk Management Committee is comprised of members of the Corporate Management, Corporate Comptroller, Tax Control and Advice, Information to the Stock Exchange, Finance and Risk, Legal, Administration and Finance, Financial Planning and Corporate Finance areas.
 
ii.           General description of the valuation methods, indicating whether the instruments are valued at cost or at their fair value pursuant to the applicable accounting principles, the relevant reference valuation methods and techniques, and the events taken into consideration. Describe the policies for and frequency of the valuation, as well as the actions taken in light of the values obtained therefrom. Clarify whether the valuation is performed by an independent third party, and indicate if such third party is the structurer, seller or counterparty of the financial instrument. As with respect to financial derivative transactions for hedging purposes, explain the method used to determine the effectiveness thereof and indicate the level of coverage provided thereby.

The Company values its financial derivative instruments based upon the standard models and calculators provided by recognized market makers. In addition, the Company uses the relevant market variables available from online sources. The financial derivative instruments are valued at a reasonable value pursuant to the applicable accounting provisions.
 
In the majority of cases, the valuation at a reasonable value is carried out on a monthly basis based on valuations of the counterparties and the verification of such reasonable value with internal valuations prepared by the Risk Management area of the Company. Accounting wise, the valuation of the counterparty is registered.
 
The Company performs its valuations without the participation of any independent third party.
 
The method used by the Company to determine the effectiveness of an instrument depends on the hedging strategy and on whether the relevant transaction is intended as a fair-value hedge or a cash-flow hedge. The Company’s methods take into consideration the prospective cash flows generated by or the changes in the fair value of the financial derivative, and the cash flows generated by or the changes in the fair value of the underlying position that it seeks to hedge to determine, in each case, the hedging ratio.
 
iii.           Management’s discussion of the internal and external sources of liquidity that could be used to satisfy the Company’s requirements in connection with its financial derivatives.

As of the date hereof, the Company’s management has not discussed internal and external sources of liquidity so as to satisfy its requirements in connection with its financial derivatives since, based upon the aggregate amount of the Company’s financial derivative transactions, management is of the opinion that the Company’s significant positions of cash, cash equivalents and temporary investments, and the substantial cash flows generated by the Company, would enable the Company to respond adequately to any such requirements.
 
iv.           Explanation as to any change in the issuer’s exposure to the principal risks identified thereby and in their management, and any contingency or event known to or anticipated by the issuer’s management, which could affect any future report. Description of any circumstance or event, such as any change in the value of the underlying assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Issuer to assume new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the issuer’s results or cash flows. Description and number of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.

Changes in the Company’s exposure to the principal risks identified thereby and in their management, and contingencies or events known to or anticipated by the Company’s management, which could affect any future report.
 
Since a significant portion of the Company’s debt and costs are denominated in U.S. dollars, while its revenues are primarily denominated in Mexican pesos, depreciation in the value of the Mexican peso against the U.S. dollar and any future depreciation could have a negative effect on the Company’s results due to exchange rate losses. However, the significant amount of U.S. dollars in the Company’s treasury, and the hedging strategies adopted by the Company in recent years, have enabled it to avoid significant foreign exchange losses.
 
Circumstances or events, such as changes in the value of the underlying assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Company to assume new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the Company’s results or cash flows.
 
As of the date hereof, no circumstance or event has given rise to a significant change in the structure of a financial derivative transaction, caused it to be used other than as originally intended, or resulted in a partial or total loss of the relevant hedge requiring that the Company assume new obligations, commitments or variations in its cash flow such that its liquidity is affected.
 
Description and number of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.

 
1.
During the relevant quarter, one “Knock-out Option Call” agreement through which Televisa hedged against severe Mexican Peso depreciation for a notional amount of U.S.$15,000,000.00 (Fifteen Million Dollars 00/100) by paying a premium, expired. This option was entered in December 2011, and expired with Televisa not exercising it in November 2014.
 
Likewise there were no defaults or margin calls under financial derivative transactions.

v.           Quantitative Information. Attached hereto as Table 1 is a summary of the financial derivative instruments purchased by Televisa, Corporación Novavisión, S. de R.L. de C.V. and Televisión Internacional, S.A. de C.V., whose aggregate fair value represents or could represent one of the reference percentages set forth in Section III (v) of the Official Communication.
 
IV. SENSITIVITY ANALYSIS
 
Considering that the Company has entered into financial derivative transactions for hedging purposes, and given the low amount of the financial derivative instruments that proved ineffective as a hedge, the Company has determined that such transactions are not material and, accordingly, the sensitivity analysis referred to in Section IV of the Official Communication is not applicable.
 
In those cases where the derivative instruments of the Company are for hedging purposes, for a material amount and where the effectiveness measures were sufficient, the measures are justified when the standard deviation of the changes in cash flow as a result of changes in the variables of exchange rate and interest rates of the derivative instruments used jointly with the underlying position is lower than the standard deviation of the changes in cash flow of the underlying position valued in pesos and the effective measures are defined by the correlation coefficient between both positions for the effective measures to be sufficient.
 
 
 

 
 
AUDITED INFORMATION
TABLE 1
 
GRUPO TELEVISA, S.A.B.
Summary of Financial Derivative Instruments as of
December 31, 2014
(In thousands of pesos/dollars)

 
Type of Derivative, Securities or Contract
 
 
Purpose (e.g., hedging, trading or other)
 
 
Notional Amount/Face Value
 
 
Value of the Underlying Asset / Reference Variable
 
 
Fair Value
 
Maturing per Year
 
 
Collateral/Lines of Credit/Securities Pledged
 
Current Quarter (4)
 
 
Previous Quarter (5)
 
 
Current Quarter D(H) (4)
 
 
Previous Quarter D(H) (5)
 
Interest Rate Swap (2)
Hedging
Ps. 1,400,000
TIIE 28 days + 24bps / 8.415%
 
TIIE 28 days + 24bps / 8.415%
 
(79,939)
 
(93,890)
 
Monthly interest
2015-2016
Does not exist (6)
Interest Rate Swap (1)
Hedging
Ps. 2,500,000
TIIE 28 days / 7.4325%
 
TIIE 28 days / 7.4325%
 
(175,025)
 
(190,117)
 
Monthly interest
2015-2018
Does not exist (6)
Interest Rate Swap (1)
Hedging
Ps. 3,000,000
TIIE 28 days / 6.0833%
 
TIIE 28 days / 6.0833%
 
(69,762)
 
(40,592)
 
Monthly interest
2015-2021
Does not exist (6)
FX Options (1)
Hedging
USD 135,000
USD 135,000
 
USD 150,000
 
2,894
 
669
 
2015
Does not exist (6)
Interest Rate Swap (3)
Hedging
Ps.1,567,607
TIIE 28 days   /  5.063%
 
TIIE 28 days   /  5.074%
 
(10,376)
 
(13,900)
 
Monthly Interest
2015-2019
Does not exist (6)
Forward (3)
Hedging
-
-
 
USD 6,000
   / Ps.78,455
 
-
 
2,286
 
-
-
         
(332,208)
 
(335,544)
 
   
 
(1)
Acquired by Grupo Televisa, S.A.B.
(2)
Acquired by Corporación Novavisión, S. de R.L. de C.V.
(3)
Acquired by Televisión Internacional, S.A. de C.V.
(4)
The aggregate amount of the derivatives reflected in the consolidated statement of financial position of Grupo Televisa, S.A.B. as December 31, 2014, included in the relevant SIFIC, is as follows:
 
 
11060020
 
FINANCIAL DERIVATIVE INSTRUMENTS
Ps. 
2,894
 
 
12080010
 
FINANCIAL DERIVATIVE INSTRUMENTS
 
(335,102)
 
 
22050010
 
FINANCIAL DERIVATIVE INSTRUMENTS
Ps.
-
 
           (332,208)  
 
(5)
Information as of September 30, 2014.
(6)
Applies only to implicit financing in the ISDA ancillary agreements identified as “Credit Support Annex”.
 
 
 

 
 
 
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 REPORT FOR THE FOURTH QUARTER OF 2014, 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 THAT HAS BEEN OMITTED OR UNTRUE IN THIS QUARTERLY REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY BE MISLEADING TO INVESTORS.
 
 

 
 

  /s/ EMILIO FERNANDO AZCÁRRAGA JEAN
  /s/ SALVI RAFAEL FOLCH VIADERO
EMILIO FERNANDO AZCÁRRAGA JEAN
PRESIDENT AND CHIEF EXECUTIVE OFFICER
SALVI RAFAEL FOLCH VIADERO
CHIEF FINANCIAL OFFICER

 


    /s/ JOAQUÍN BALCÁRCEL SANTA CRUZ   
JOAQUÍN BALCÁRCEL SANTA CRUZ
VICE PRESIDENT  -  LEGAL AND
GENERAL COUNSEL
 
 

 
MÉXICO, D.F., MAY 5, 2015
 
 
 

 
 
GENERAL DATA
 
DATE:  05/05/2015
MEXICAN STOCK EXCHANGE, REPORTS:
 
  GENERAL DATA OF ISSUER  
 
STOCK EXCHANGE CODE:
 
     
 
TLEVISA
 
     
 
COMPANY'S NAME:
 
     
 
GRUPO TELEVISA, S.A.B.
 
     
 
STATE:
 
     
 
DISTRITO FEDERAL
 
     
 
CITY:
 
     
 
MÉXICO, D.F.
 
     
     
 
TELEPHONE:
ADDRESS:
     
 
01 (55) 52612000
AV. VASCO DE QUIROGA # 2000
     
 
FAX:
NEIGHBORHOOD:
     
 
01 (55) 52612494
SANTA FE
     
 
INTERNET ADDRESS:
 
     
 
www.televisa.com.mx
ZIP CODE:
     
   
01210
     
 
TAX DATA OF THE ISSUER
 
 
ADDRESS:
MUNICIPALITY:
     
 
AV. VASCO DE QUIROGA # 2000
ÁLVARO OBREGÓN
     
 
NEIGHBORHOOD:
STATE:
     
 
SANTA FE
DISTRITO FEDERAL
     
 
CITY AND STATE:
ZIP CODE:
     
 
MÉXICO, D.F.
01210
     
 
COMPANY TAX CODE:
 
     
 
GTE901219GK3
 
 
 
 

 
 
EXECUTIVES DATA

BMV POSITION
MR./MS.
FIRST NAME
LAST NAME
GENERAL DIRECTOR
MR.
EMILIO FERNANDO
AZCÁRRAGA JEAN
FINANCE DIRECTOR
LIC.
SALVI RAFAEL
FOLCH VIADERO
RESPONSIBLE FOR SENDING CORPORATE INFORMATION
LIC.
JOAQUÍN
BALCÁRCEL SANTA CRUZ
RESPONSIBLE FOR SENDING SHARE REPURCHASE INFORMATION
LIC.
GUADALUPE
PHILLIPS MARGAIN
RESPONSIBLE FOR INFORMATION TO INVESTORS
LIC.
CARLOS
MADRAZO VILLASEÑOR
RESPONSIBLE FOR PAYMENT
C.P.C.
JOSÉ RAÚL
GONZÁLEZ LIMA
RESPONSIBLE FOR SENDING FINANCIAL INFORMATION
C.P.C.
JOSÉ RAÚL
GONZÁLEZ LIMA
RESPONSIBLE FOR SENDING RELEVANT EVENTS
LIC.
CARLOS
MADRAZO VILLASEÑOR
RESPONSIBLE FOR LEGAL MATTERS
LIC.
JOAQUÍN
BALCÁRCEL SANTA CRUZ

BOARD OF DIRECTORS

POSITION
TYPE
MR./MS.
FIRST NAME
LAST NAME
PRESIDENT
RELATED
MR.
EMILIO FERNANDO
AZCÁRRAGA JEAN
DIRECTOR
INDEPENDENT
MR.
ALBERTO
BAILLERES GONZÁLEZ
DIRECTOR
RELATED
MR.
JULIO
BARBA HURTADO
DIRECTOR
RELATED
MR.
JOSÉ ANTONIO
BASTÓN PATIÑO
DIRECTOR
INDEPENDENT
MR.
FRANCISCO JOSÉ
CHÉVEZ ROBELO
DIRECTOR
RELATED
MR.
ALFONSO
DE ANGOITIA NORIEGA
DIRECTOR
INDEPENDENT
MR.
JON
FELTHEIMER
DIRECTOR
INDEPENDENT
MR.
JOSÉ ANTONIO VICENTE
FERNÁNDEZ CARBAJAL
DIRECTOR
INDEPENDENT
MR.
JOSÉ LUIS
FERNÁNDEZ FERNÁNDEZ
 DIRECTOR
RELATED
MR.
SALVI RAFAEL
FOLCH VIADERO
DIRECTOR
INDEPENDENT
MR.
MICHAEL T.
FRIES
DIRECTOR
RELATED
MR.
BERNARDO
GÓMEZ MARTÍNEZ
DIRECTOR
INDEPENDENT
MR.
ROBERTO
HERNÁNDEZ RAMÍREZ
DIRECTOR
RELATED
MR.
ENRIQUE
KRAUZE KLEINBORT
DIRECTOR
RELATED
MR.
JORGE AGUSTÍN
LUTTEROTH ECHEGOYEN
DIRECTOR
INDEPENDENT
MR.
LORENZO ALEJANDRO
MENDOZA GIMÉNEZ
DIRECTOR
INDEPENDENT
MR.
FERNANDO
SENDEROS MESTRE
DIRECTOR
INDEPENDENT
MR.
ENRIQUE    FRANCISCO JOSÉ
SENIOR HERNÁNDEZ
DIRECTOR
INDEPENDENT
MR.
EDUARDO
TRICIO HARO
DIRECTOR
INDEPENDENT
MR.
DAVID M.
ZASLAV
ALTERNATE DIRECTOR
INDEPENDENT
MR.
HERBERT
ALLEN III
ALTERNATE DIRECTOR
RELATED
MR.
FÉLIX JOSÉ
ARAUJO RAMÍREZ
ALTERNATE DIRECTOR
RELATED
MR.
JOAQUÍN
BALCÁRCEL SANTA CRUZ
ALTERNATE DIRECTOR
RELATED
MR.
LEOPOLDO
GÓMEZ GONZÁLEZ BLANCO
ALTERNATE DIRECTOR
INDEPENDENT
MR.
ALBERTO JAVIER
MONTIEL CASTELLANOS
ALTERNATE DIRECTOR
INDEPENDENT
MR.
RAÚL
MORALES MEDRANO
ALTERNATE DIRECTOR
RELATED
MS.
GUADALUPE
PHILLIPS MARGAIN
SECRETARY OF THE BOARD OF DIRECTORS
NA
MR.
RICARDO
MALDONADO YAÑEZ
 
COMPANY HISTORY

TELEVISA IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING WORLD BASED ON ITS MARKET CAPITALIZATION AND A MAJOR PARTICIPANT IN THE INTERNATIONAL ENTERTAINMENT BUSINESS. IT OPERATES FOUR BROADCAST CHANNELS IN MEXICO CITY, PRODUCES AND DISTRIBUTES 25 PAY-TV BRANDS FOR DISTRIBUTION IN MEXICO AND THE REST OF THE WORLD, AND EXPORTS ITS PROGRAMS AND FORMATS TO THE U.S. THROUGH UNIVISION COMMUNICATIONS INC. (“UNIVISION”) AND TO OTHER TELEVISION NETWORKS IN OVER 50 COUNTRIES. TELEVISA IS ALSO AN ACTIVE PARTICIPANT IN MEXICO’S TELECOMMUNICATIONS INDUSTRY. IT HAS A MAJORITY INTEREST IN SKY, A LEADING DIRECT-TO-HOME SATELLITE TELEVISION SYSTEM OPERATING IN MEXICO, THE DOMINICAN REPUBLIC AND CENTRAL AMERICA. TELEVISA ALSO PARTICIPATES IN MEXICO´S TELECOMMUNICATIONS INDUSTRY IN MANY REGIONS OF THE COUNTRY WHERE IT OFFERS VIDEO, VOICE, AND BROADBAND SERVICES. TELEVISA ALSO HAS INTERESTS IN MAGAZINE PUBLISHING AND DISTRIBUTION, RADIO PRODUCTION AND BROADCASTING, PROFESSIONAL SPORTS AND LIVE ENTERTAINMENT, FEATURE-FILM PRODUCTION AND DISTRIBUTION, THE OPERATION OF A HORIZONTAL INTERNET PORTAL, AND GAMING. IN THE UNITED STATES, TELEVISA HAS EQUITY AND DEBENTURES THAT, UPON CONVERSION AND SUBJECT TO ANY NECESSARY APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION (“FCC”) IN THE UNITED STATES, WILL REPRESENT APPROXIMATELY 38% ON A FULLY DILUTED, AS-CONVERTED BASIS OF THE EQUITY CAPITAL IN BROADCASTING MEDIA PARTNERS, INC. (“BMP”), THE CONTROLLING COMPANY OF UNIVISION, THE LEADING MEDIA COMPANY SERVING THE UNITED STATES HISPANIC MARKET.
 
 
 

 
 
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.B.
 
(Registrant)
     
     
Dated: May 7, 2015
By:
/s/  Joaquín Balcárcel Santa Cruz
 
Name:
Joaquín Balcárcel Santa Cruz
 
Title:
General Counsel