Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F.
|
(Address of principal executive offices)
|
Form 20-F
|
x
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Form 40-F
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Yes
|
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No
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x
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Yes
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No
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x
|
INVESTOR RELATIONS
FOURTH-QUARTER AND FULL YEAR 2015 RESULTS
FOR IMMEDIATE RELEASE
|
Ø | Solid full year growth in Consolidated Net Sales of 9.9% with an operating segment income margin of 39.6% |
Ø | Sky revenues reached Ps.19.3 billion surpassing 7.2 million subscribers |
Ø | Strong revenue and operating segment income growth in our Telecommunications segment of 36.1% and 44.7%, respectively |
Ø | Strong growth in Network Subscription Revenue of 26.0% and in Licensing and Syndication Revenue of 17.7% |
2015
|
Margin %
|
2014
|
Margin %
|
Change %
|
|
Net sales
|
88,051.8
|
100.0
|
80,118.4
|
100.0
|
9.9
|
Net income
|
12,325.4
|
14.0
|
6,659.8
|
8.3
|
85.1
|
Net income attributable to stockholders of the Company
|
10,899.1
|
12.4
|
5,386.9
|
6.7
|
102.3
|
Segment net sales
|
90,198.7
|
100.0
|
81,508.0
|
100.0
|
10.7
|
Operating segment income (1)
|
35,695.3
|
39.6
|
32,279.7
|
39.6
|
10.6
|
Net Sales
|
2015
|
%
|
2014
|
%
|
Change %
|
Content
|
34,332.6
|
38.1
|
34,868.1
|
42.8
|
(1.5)
|
Sky
|
19,253.5
|
21.3
|
17,498.6
|
21.5
|
10.0
|
Telecommunications
|
28,488.3
|
31.6
|
20,937.3
|
25.7
|
36.1
|
Other Businesses
|
8,124.3
|
9.0
|
8,204.0
|
10.0
|
(1.0)
|
Segment Net Sales
|
90,198.7
|
100.0
|
81,508.0
|
100.0
|
10.7
|
Intersegment Operations1
|
(2,146.9)
|
(1,389.6)
|
(54.5)
|
||
Net Sales
|
88,051.8
|
80,118.4
|
9.9
|
Operating Segment Income2
|
2015
|
Margin %
|
2014
|
Margin %
|
Change %
|
Content
|
14,564.2
|
42.4
|
15,534.3
|
44.6
|
(6.2)
|
Sky
|
8,972.3
|
46.6
|
8,211.3
|
46.9
|
9.3
|
Telecommunications
|
11,405.6
|
40.0
|
7,882.9
|
37.7
|
44.7
|
Other Businesses
|
753.2
|
9.3
|
651.2
|
7.9
|
15.7
|
Operating Segment Income
|
35,695.3
|
39.6
|
32,279.7
|
39.6
|
10.6
|
Corporate Expenses
|
(1,960.8)
|
(2.2)
|
(1,478.5)
|
(1.8)
|
(32.6)
|
Depreciation and Amortization
|
(14,660.9)
|
(16.7)
|
(11,563.1)
|
(14.4)
|
(26.8)
|
Other Expense, net
|
(328.5)
|
(0.4)
|
(5,281.7)
|
(6.6)
|
93.8
|
Operating Income
|
18,745.1
|
21.3
|
13,956.4
|
17.4
|
34.3
|
Content
|
Fourth quarter sales decreased by 3.3% to Ps.10,763.4 million compared with Ps.11,128.9 million in fourth quarter 2014.
Full year sales decreased by 1.5% to Ps.34,332.6 million compared with Ps.34,868.1 million in 2014.
|
||||||||||||
Millions of Mexican pesos
|
2015
|
%
|
2014
|
%
|
Change %
|
||||||||
Advertising
|
23,029.3
|
67.1
|
25,465.7
|
73.0
|
(9.6)
|
||||||||
Network Subscription Revenue
|
3,595.4
|
10.5
|
2,854.4
|
8.2
|
26.0
|
||||||||
Licensing and Syndication
|
7,707.9
|
22.4
|
6,548.0
|
18.8
|
17.7
|
||||||||
Net Sales
|
34,332.6
|
100.0
|
34,868.1
|
100.0
|
(1.5)
|
||||||||
Advertising
Advertising fourth quarter revenue decreased by 11.0% to Ps.7,687.3 million compared with Ps.8,633.0 million in fourth quarter 2014. During the quarter we continued with our efforts to restructure our advertising sales business, which consist mainly of repricing our advertising inventory.
|
|||||||||||||
Advertising full year revenue decreased by 9.6% also as a result of the restructuring of our advertising sales business.
Network Subscription Revenue
Fourth-quarter Network Subscription Revenue increased by 27.0% to Ps.984.9 million compared to Ps.775.8 million in fourth-quarter 2014.
Full year Network Subscription Revenue increased by 26.0%. The growth in the fourth quarter and in the full year was driven mainly by the sustained addition of pay-TV subscribers, both in Mexico and Latin America and a positive translation effect on foreign-currency denominated revenues. During the year, Televisa continued to produce and transmit several of the leading pay-TV networks in Mexico in key categories, including general entertainment, music and lifestyle, and movies. Ten of the top 30 pay-TV networks in Mexico were produced by Televisa.
Licensing and Syndication
Fourth-quarter Licensing and Syndication revenue increased by 21.6% to Ps.2,091.2 million compared to Ps.1,720.1 million in fourth-quarter 2014. Fourth-quarter royalties from Univision increased by 4.4% to US$80.9 million in the fourth-quarter 2015 from US$77.5 million in the fourth-quarter 2014 and for the full year royalties from Univision reached US$311.1 million.
|
|||||||||||||
The full year increase in Licensing and Syndication revenue of 17.7% is mainly explained by 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.1,369.5 million.
|
|||||||||||||
Fourth quarter operating segment income for our Content segment decreased by 11.3% to Ps.4,555.0 million compared with Ps.5,134.6 million in fourth quarter 2014; the margin was 42.3%.
Full-year operating segment income for our Content segment decreased by 6.2% to Ps.14,564.2 million compared with Ps.15,534.3 million in 2014. The margin was 42.4%. The decrease in the margin by 220 basis points from 2014 is mainly explained by lower advertising revenues as a result of the restructuring of this business.
|
|||||||||||||
Sky
|
Fourth quarter sales increased by 11.7% to Ps.5,012.5 million compared with Ps.4,489.4 million in fourth quarter 2014. During the quarter, Sky added a total of 230,431 subscribers.
Full year sales increased by 10.0% to Ps.19,253.5 million compared with Ps.17,498.6 million in 2014. The annual increase was driven by solid growth in the subscriber base of more than 646 thousand, which is explained by the continued success of Sky’s low-cost offering. As of December 31, 2015, the number of net active subscribers increased to 7,284,162 (including 178,915 commercial subscribers), compared with 6,638,032 (including 174,986 commercial subscribers) as of December 31, 2014. Sky closed the year with 192,024 subscribers in Central America and the Dominican Republic.
|
||||||||||||
Fourth quarter operating segment income increased by 8.4% to Ps.2,217.1 million compared with Ps.2,044.7 million in fourth quarter 2014, and the margin was 44.2%.
Full year operating segment income increased by 9.3% to Ps.8,972.3 million compared with Ps.8,211.3 million in 2014, and the margin was 46.6%, in line with the margin from last year. The increase in revenues was partially compensated by higher programming costs mainly as a result of the depreciation of the Mexican peso, and by higher maintenance and leasing costs, as well as higher promotional expenses.
|
|||||||||||||
Telecommunications
|
Fourth quarter sales increased by 21.6% to Ps.7,569.9 million compared with Ps.6,227.8 million in fourth quarter 2014 driven by growth in all of our cable platforms and the consolidation, for the full quarter, of Ps.559.7 million in revenues from Telecable. Excluding Telecable, fourth quarter sales from our cable and network operations increased by 12.6%.
Full year sales increased by 36.1% to Ps.28,488.3 million compared with Ps.20,937.3 million in 2014. This increase primarily reflected the consolidation of Cablecom starting on September 1st, 2014 and of Telecable starting on January 1st, 2015. Excluding Cablecom and Telecable, full year sales experienced a growth of 12.5%.
Voice and data revenue generating units, or RGUs, grew by 54.0% and 34.0% compared with 2014, respectively, and video RGUs grew by 21.0%. Excluding the acquisition of Telecable, Voice and Data RGUs, grew by 46.6% and 25.4% compared with 2014, respectively, while Video RGUs grew by 6.3%.
|
||||||||||||
The following table sets forth the breakdown of RGUs per service type for our Telecommunications segment as of December 31, 2015 and 2014.
|
|||||||||||||
RGUs
|
2015
|
2014
|
|||||||||||
Video
|
4,061,655
|
3,356,732
|
|||||||||||
Broadband
|
3,066,699
|
2,288,709
|
|||||||||||
Voice
|
1,891,026
|
1,228,182
|
|||||||||||
Total RGUs
|
9,019,380
|
6,873,623
|
|||||||||||
Fourth quarter operating segment income increased by 20.6% to Ps.3,010.1 million compared with Ps.2,495.9 million in fourth quarter 2014, and the margin reached 39.8%. These results reflected the consolidation of Telecable, which contributed with Ps.251.0 million to operating segment income, and the continued growth of all of our cable and network operations. This effect was partially compensated by higher personnel, maintenance and programming expenses. Excluding Telecable, fourth quarter operating segment income increased by 10.5%.
Full year operating segment income increased by 44.7% to Ps.11,405.6 million compared with Ps.7,882.9 million in 2014, and the margin reached 40.0%, an increase of 230 basis points from 2014. These results primarily reflected the consolidation of Cablecom starting on September 1st, 2014 and of Telecable starting on January 1st, 2015, and continued growth in the cable and network platforms. These favorable variances were partially offset by higher programming costs mainly as a result of the depreciation of the Mexican peso and by higher maintenance, personnel and leasing costs and expenses. Excluding Cablecom and Telecable, full year operating segment income increased by 14.9%.
|
|||||||||||||
The following tables set forth the breakdown of revenues and operating segment income, excluding consolidation adjustments, for our cable and network operations for 2015 and 2014.
Our cable operations include the video, voice and data services provided by Cablevisión, Cablemás, TVI, Cablecom and Telecable. Our network operations include the services offered by Bestel and the network operations of Cablecom.
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|||||||||||||
2015
Millions of Mexican pesos
|
Cable Operations (1)
|
Network Operations (1)
|
Total Telecom
|
||||||||||
Revenue
|
24,279.5
|
5,072.6
|
28,488.3
|
||||||||||
Operating Segment Income
|
9,781.9
|
1,944.4
|
11,405.6
|
||||||||||
Margin
|
40.3%
|
38.3%
|
40.0%
|
||||||||||
(1) These results do not include consolidation adjustments of Ps.863.8 million in revenues nor Ps.320.7 million in Operating Segment Income, which are considered in the consolidated results of the Telecommunications segment.
|
|||||||||||||
2014
Millions of Mexican pesos
|
Cable Operations (2)
|
Network Operations (2)
|
Total Telecom
|
||||||||||
Revenue
|
17,497.0
|
3,987.0
|
20,937.3
|
||||||||||
Operating Segment Income
|
6,798.5
|
1,315.9
|
7,882.9
|
||||||||||
Margin
|
38.9%
|
33.0%
|
37.7%
|
||||||||||
(2) These results do not include consolidation adjustments of Ps.546.7 million in revenues nor Ps.231.5 million in Operating Segment Income, which are considered in the consolidated results of the Telecommunications segment.
|
|||||||||||||
Other Businesses
|
Fourth quarter sales decreased by 9.2% to Ps.2,300.5 million compared with Ps.2,533.2 million in fourth quarter 2014. The decrease is mainly explained by a drop in revenues from our feature-film distribution and publishing businesses, which was partially compensated by an increase in the revenues of our radio business.
Full year sales decreased by 1.0% to Ps.8,124.3 million compared with Ps.8,204.0 million in 2014. Businesses that performed well include gaming and radio. 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.144.5 million compared with Ps.197.0 million in fourth quarter 2014.
Full year operating segment income increased by 15.7% to Ps.753.2 million compared with Ps.651.2 million in 2014, reflecting i) an increase in the operating segment income of gaming and radio; ii) a decrease in the operating segment income of our soccer and feature-film distribution businesses; and iii) a change from operating segment income to operating segment loss in our publishing business.
|
2015
|
2014
|
(Increase) decrease
|
|
Interest expense
|
(6,239.4)
|
(5,551.5)
|
(687.9)
|
Interest income
|
1,027.8
|
1,327.7
|
(299.9)
|
Foreign exchange loss, net
|
(2,426.0)
|
(1,391.2)
|
(1,034.8)
|
Other finance income, net
|
7,514.7
|
1,286.1
|
6,228.6
|
Finance expense, net
|
(122.9)
|
(4,328.9)
|
4,206.0
|
Dec 31, 2015
|
Dec 31, 2014
|
Increase (decrease)
|
|
Current portion of long-term debt
|
2,979.8
|
337.1
|
2,642.7
|
Long-term debt, net of current portion
|
107,430.8
|
80,660.5
|
26,770.3
|
Total debt 1
|
110,410.6
|
80,997.6
|
29,413.0
|
Current portion of finance lease obligations
|
511.6
|
502.2
|
9.4
|
Long-term finance lease obligations
|
5,293.6
|
4,807.4
|
486.2
|
Total finance lease obligations
|
5,805.2
|
5,309.6
|
495.6
|
December 31,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
ASSETS
|
(Unaudited)
|
(Audited)
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
Ps.
|
49,397.1
|
Ps.
|
29,729.3
|
||||
Temporary investments
|
5,330.5
|
4,788.6
|
||||||
Trade notes and accounts receivable, net
|
21,702.1
|
21,087.2
|
||||||
Other accounts and notes receivable, net
|
4,296.1
|
2,724.7
|
||||||
Account receivable related to former investment in GSF
|
-
|
10,583.9
|
||||||
Derivative financial instruments
|
-
|
2.9
|
||||||
Due from related parties
|
98.4
|
903.2
|
||||||
Transmission rights and programming
|
5,389.1
|
4,851.7
|
||||||
Inventories
|
1,628.3
|
3,336.7
|
||||||
Other current assets
|
2,096.5
|
1,794.0
|
||||||
Total current assets
|
89,938.1
|
79,802.2
|
||||||
Non-current assets:
|
||||||||
Transmission rights and programming
|
9,139.1
|
8,994.4
|
||||||
Investments in financial instruments
|
41,081.4
|
34,709.9
|
||||||
Investments in associates and joint ventures
|
9,271.9
|
5,032.4
|
||||||
Property, plant and equipment, net
|
76,089.3
|
62,009.5
|
||||||
Intangible assets, net
|
38,106.3
|
28,778.4
|
||||||
Deferred income tax assets
|
17,665.1
|
16,080.3
|
||||||
Other assets
|
182.5
|
144.8
|
||||||
Total non-current assets
|
191,535.6
|
155,749.7
|
||||||
Total assets
|
Ps.
|
281,473.7
|
Ps.
|
235,551.9
|
||||
December 31,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
LIABILITIES
|
(Unaudited)
|
(Audited)
|
||||||
Current liabilities:
|
||||||||
Current portion of long-term debt and interest payable
|
Ps.
|
4,164.0
|
Ps.
|
1,312.0
|
||||
Current portion of finance lease obligations
|
511.6
|
502.2
|
||||||
Trade accounts payable and accrued expenses
|
17,361.5
|
17,142.1
|
||||||
Customer deposits and advances
|
20,470.4
|
20,150.7
|
||||||
Income taxes payable
|
1,632.8
|
1,389.3
|
||||||
Other taxes payable
|
1,246.0
|
1,108.4
|
||||||
Employee benefits
|
1,034.5
|
1,005.2
|
||||||
Due to related parties
|
443.0
|
8.6
|
||||||
Derivative financial instruments
|
1.4
|
-
|
||||||
Other current liabilities
|
2,112.8
|
1,751.6
|
||||||
Total current liabilities
|
48,978.0
|
44,370.1
|
||||||
Non-current liabilities:
|
||||||||
Long-term debt, net of current portion
|
107,430.8
|
80,660.5
|
||||||
Finance lease obligations, net of current portion
|
5,293.6
|
4,807.4
|
||||||
Derivative financial instruments
|
225.7
|
335.1
|
||||||
Customer deposits and advances
|
514.5
|
284.0
|
||||||
Income taxes payable
|
6,338.1
|
6,628.1
|
||||||
Deferred income tax liabilities
|
10,000.0
|
7,763.0
|
||||||
Post-employment benefits
|
407.2
|
287.2
|
||||||
Other long-term liabilities
|
2,764.1
|
2,501.4
|
||||||
Total non-current liabilities
|
132,974.0
|
103,266.7
|
||||||
Total liabilities
|
181,952.0
|
147,636.8
|
||||||
EQUITY
|
||||||||
Capital stock
|
4,978.1
|
4,978.1
|
||||||
Additional paid-in-capital
|
15,889.8
|
15,889.8
|
||||||
20,867.9
|
20,867.9
|
|||||||
Retained earnings:
|
||||||||
Legal reserve
|
2,139.0
|
2,139.0
|
||||||
Unappropriated earnings
|
60,101.5
|
55,379.5
|
||||||
Net income for the year
|
10,899.1
|
5,386.9
|
||||||
73,139.6
|
62,905.4
|
|||||||
Accumulated other comprehensive income, net
|
5,257.6
|
5,679.1
|
||||||
Shares repurchased
|
(11,882.2
|
)
|
(12,647.4
|
)
|
||||
66,515.0
|
55,937.1
|
|||||||
Equity attributable to stockholders of the Company
|
87,382.9
|
76,805.0
|
||||||
Non-controlling interests
|
12,138.8
|
11,110.1
|
||||||
Total equity
|
99,521.7
|
87,915.1
|
||||||
Total liabilities and equity
|
Ps.
|
281,473.7
|
Ps.
|
235,551.9
|
Three months ended December 31,
|
Twelve months ended December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Net sales
|
Ps.
|
24,951.1
|
Ps.
|
24,020.2
|
Ps.
|
88,051.8
|
Ps.
|
80,118.4
|
||||||||
Cost of sales
|
13,329.8
|
12,663.0
|
47,226.5
|
42,908.7
|
||||||||||||
Selling expenses
|
2,897.4
|
2,436.8
|
9,716.2
|
8,561.9
|
||||||||||||
Administrative expenses
|
3,258.2
|
2,851.8
|
12,035.5
|
9,409.7
|
||||||||||||
Income before other expense
|
5,465.7
|
6,068.6
|
19,073.6
|
19,238.1
|
||||||||||||
Other expense, net
|
(363.4
|
)
|
(521.9
|
)
|
(328.5
|
)
|
(5,281.7
|
)
|
||||||||
Operating income
|
5,102.3
|
5,546.7
|
18,745.1
|
13,956.4
|
||||||||||||
Finance expense
|
(2,208.7
|
)
|
(2,519.8
|
)
|
(8,665.4
|
)
|
(6,942.7
|
)
|
||||||||
Finance income
|
261.6
|
983.1
|
8,542.5
|
2,613.8
|
||||||||||||
Finance expense, net
|
(1,947.1
|
)
|
(1,536.7
|
)
|
(122.9
|
)
|
(4,328.9
|
)
|
||||||||
Share of income (loss) of associates and joint ventures, net
|
303.7
|
(34.3
|
)
|
35.4
|
13.2
|
|||||||||||
Income before income taxes
|
3,458.9
|
3,975.7
|
18,657.6
|
9,640.7
|
||||||||||||
Income taxes
|
1,471.7
|
1,314.0
|
6,332.2
|
2,980.9
|
||||||||||||
Net income
|
Ps.
|
1,987.2
|
Ps.
|
2,661.7
|
Ps.
|
12,325.4
|
Ps.
|
6,659.8
|
||||||||
Net income attributable to:
|
||||||||||||||||
Stockholders of the Company
|
Ps.
|
1,571.2
|
Ps.
|
2,504.3
|
Ps.
|
10,899.1
|
Ps.
|
5,386.9
|
||||||||
Non-controlling interests
|
416.0
|
157.4
|
1,426.3
|
1,272.9
|
||||||||||||
Net income
|
Ps.
|
1,987.2
|
Ps.
|
2,661.7
|
Ps.
|
12,325.4
|
Ps.
|
6,659.8
|
||||||||
Basic earnings per CPO attributable to stockholders of the Company
|
Ps.
|
0.55
|
Ps.
|
0.87
|
Ps.
|
3.77
|
Ps.
|
1.87
|
||||||||
Net Sales
|
4Q 2015
|
%
|
4Q 2014
|
%
|
Change %
|
Content
|
10,763.4
|
42.0
|
11,128.9
|
45.7
|
(3.3)
|
Sky
|
5,012.5
|
19.5
|
4,489.4
|
18.4
|
11.7
|
Telecommunications
|
7,569.9
|
29.5
|
6,227.8
|
25.5
|
21.6
|
Other Businesses
|
2,300.5
|
9.0
|
2,533.2
|
10.4
|
(9.2)
|
Segment Net Sales
|
25,646.3
|
100.0
|
24,379.3
|
100.0
|
5.2
|
Intersegment Operations1
|
(695.2)
|
(359.1)
|
(93.6)
|
||
Net Sales
|
24,951.1
|
24,020.2
|
3.9
|
Operating Segment Income2
|
4Q 2015
|
Margin %
|
4Q 2014
|
Margin %
|
Change %
|
Content
|
4,555.0
|
42.3
|
5,134.6
|
46.1
|
(11.3)
|
Sky
|
2,217.1
|
44.2
|
2,044.7
|
45.5
|
8.4
|
Telecommunications
|
3,010.1
|
39.8
|
2,495.9
|
40.1
|
20.6
|
Other Businesses
|
144.5
|
6.3
|
197.0
|
7.8
|
(26.6)
|
Operating Segment Income
|
9,926.7
|
38.7
|
9,872.2
|
40.5
|
0.6
|
Corporate Expenses
|
(539.9)
|
(2.1)
|
(421.8)
|
(1.7)
|
(28.0)
|
Depreciation and Amortization
|
(3,921.1)
|
(15.7)
|
(3,381.8)
|
(14.1)
|
(15.9)
|
Other Expense, net
|
(363.4)
|
(1.5)
|
(521.9)
|
(2.2)
|
30.4
|
Operating Income
|
5,102.3
|
20.4
|
5,546.7
|
23.1
|
(8.0)
|
GRUPO TELEVISA, S.A.B.
|
|||
(Registrant)
|
|||
Dated: February 26, 2016
|
By:
|
/s/ Joaquín Balcárcel Santa Cruz
|
|
Name:
|
Joaquín Balcárcel Santa Cruz
|
||
Title:
|
General Counsel
|