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 October, 2003
GRUPO TELEVISA, S.A.
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(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Sante Fe 01210 Mexico, D.F.
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(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No X
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(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
[Logo] THIRD QUARTER 2003 RESULTS
FOR IMMEDIATE RELEASE
GRUPO TELEVISA REPORTS THIRD QUARTER 2003 RESULTS
HIGHLIGHTS
>> Net Sales Increased 3.3% and EBITDA Grew 15.9%.
>> CONSOLIDATED AND TELEVISION BROADCASTING EBITDA MARGINS REACHED RECORD
THIRD QUARTER LEVELS OF 32.6% AND 43.0%, RESPECTIVELY
>> OPERATING INCOME INCREASED 19.3%
>> NET INCOME ROSE 74.3%
>> FITCH UPGRADED GRUPO TELEVISA'S LOCAL CURRENCY RATING TO "BBB" AND THE
NATIONAL SCALE RATING TO "AA+(MEX)"; FOREIGN CURRENCY RATING AFFIRMED
AT "BBB-"
>> INNOVA SUCCESSFULLY ISSUED U.S.$300 MILLION 10-YEAR SENIOR NOTES WITH
A COUPON RATE OF 9.375%, GENERATING U.S.$9.3 MILLION ANNUAL CASH
INTEREST EXPENSE SAVINGS
CONSOLIDATED RESULTS
Mexico City, D.F., October 22, 2003 -- Grupo Televisa, S.A. (NYSE:TV; BMV:
TLEVISA CPO) today announced results for the third quarter of 2003. The
results, shown in the attached tables on pages 9-11 are in millions of
Mexican pesos, have been prepared in accordance with Mexican GAAP and are
adjusted to pesos in purchasing power as of September 30, 2003.
The following table sets forth a condensed Statement of Income in millions
of Mexican pesos, the percentage that each line represents of net sales,
and the percentage change for the third quarter of 2003 compared with the
third quarter of 2002:
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3Q Margin 3Q Margin Change
2003 % 2002 % %
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Net Sales(1) 5,626.1 100.0 5,444.0 100.0 3.3
EBITDA(2) 1,832.8 32.6 1,581.3 29.0 15.9
Operating Income 1,436.1 25.5 1,203.9 22.1 19.3
Net Income 686.0 12.2 393.5 7.2 74.3
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(1) See "Results by Business Segment" for information regarding
segment results.
(2) EBITDA is defined as earnings before interest, taxes,
depreciation and amortization.
The 3.3% increase in net sales was attributable to several factors: i) 5.7%
revenue growth in the Television Broadcasting segment; ii) 19.8% revenue
increase in the Publishing Distribution segment; iii) 64.4% increase in
Radio sales; iv) 11.2% sales increase in the Programming for Pay Television
segment; v) 6.4% increase in the Programming Licensing segment revenues;
and vi) 3.7% sales increase in the Publishing segment. These increases were
partially offset by a 14.0% revenue reduction in the Cable Television
segment and a 28.6% sales decrease in the Other Businesses segment.
EBITDA increased 15.9%, a record for any third quarter in the Company's
history and the second consecutive quarter in which the Company reported
record EBITDA. Consolidated EBITDA margin increased to 32.6%, reflecting
EBITDA growth in most of our business segments, including Television
Broadcasting, Programming Licensing, Radio, Publishing and Programming for
Pay Television, partially offset by EBITDA declines in the Other
Businesses, Cable Television and Publishing Distribution segments. In
addition, operating income increased 19.3%, reflecting higher sales and
reductions of 1.9% in cost of sales and 1.4% in operating expenses.
Net income increased to Ps.686.0 million in the third quarter of 2003
compared with Ps.393.5 million in last year's comparable period. The net
increase of Ps.292.5 million, or 74.3%, reflected a Ps.232.2 million
increase in operating income; a Ps.86.7 million decrease in integral cost
of financing; a Ps.79.3 million decrease in restructuring and non-recurring
charges; a Ps.54.5 million decrease in other expense-net; and a Ps.12.0
million decrease in income taxes. These favorable changes were partially
offset by a Ps.177.2 million increase in equity in losses of affiliates.
RESULTS BY BUSINESS SEGMENTS
The following tables set forth the net sales, EBITDA and operating income
(loss) in millions of Mexican pesos for each of the Company's business
segments for the third quarters ended September 30, 2003 and 2002:
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Net Sales 3Q % 3Q % Change
2003 2002 %
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Television Broadcasting 3,687.6 64.7 3,488.3 63.5 5.7
Programming for Pay Television 174.9 3.1 157.3 2.9 11.2
Programming Licensing 394.6 6.9 371.0 6.8 6.4
Publishing 444.1 7.8 428.1 7.8 3.7
Publishing Distribution 448.8 7.9 374.5 6.8 19.8
Cable Television 236.5 4.1 275.1 5.0 (14.0)
Radio 56.4 1.0 34.3 0.6 64.4
Other Businesses 258.9 4.5 362.8 6.6 (28.6)
SEGMENT REVENUES 5,701.8 100.0 5,491.4 100.0 3.8
Intersegment Operations1 (75.7) (47.4) (59.7)
CONSOLIDATED REVENUES 5,626.1 5,444.0 3.3
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EBITDA 3Q Margin 3Q Margin Change
2003 % 2002 % %
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Television Broadcasting 1,586.7 43.0 1,396.2 40.0 13.6
Programming for Pay Television 51.7 29.6 34.5 21.9 49.9
Programming Licensing 126.7 32.1 70.3 18.9 80.2
Publishing 84.5 19.0 67.0 15.7 26.1
Publishing Distribution (0.2) 0.0 9.6 2.6 (102.1)
Cable Television 72.0 30.4 88.1 32.0 (18.3)
Radio 2.8 5.0 (22.0) (64.1) 112.7
Other Businesses (56.3) (21.7) (28.9) (8.0) (94.8)
Corporate Expenses (35.1) (0.6) (33.5) (0.6) (4.8)
SEGMENT EBITDA 1,832.8 32.1 1,581.3 28.8 15.9
CONSOLIDATED EBITDA 1,832.8 32.6 1,581.3 29.0 15.9
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Operating Income (Loss) 3Q Margin 3Q Margin Change
2003 % 2002 % %
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Television Broadcasting 1,345.9 36.5 1,151.5 33.0 16.9
Programming for Pay Television 40.7 23.3 23.6 4.8 72.5
Programming Licensing 124.7 31.6 67.7 18.2 84.2
Publishing 79.7 17.9 60.8 14.2 31.1
Publishing Distribution (5.4) (1.2) 4.6 1.2 (217.4)
Cable Television 26.8 11.3 52.0 18.9 (48.5)
Radio (1.1) (2.0) (26.6) (77.6) 95.9
Other Businesses (140.1) (54.1) (96.2) (26.5) (45.6)
Corporate Expenses (35.1) (0.6) (33.5) (0.6) (4.8)
SEGMENT OPERATING INCOME 1,436.1 25.2 1,203.9 21.9 19.3
CONSOLIDATED OPERATING INCOME 1,436.1 25.5 1,203.9 22.1 19.3
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(1) Intersegment operations: For segment reporting purposes, intersegment
operations are included in each of the segment operations.
TELEVISION The 5.7% sales increase in the Television Broadcasting
BROADCASTING segment during the third quarter of 2003 compared with the
same period last year was mainly attributable to two
factors: i) an increase in advertising time sold; and ii) an
increase of 11.9% in local sales, driven mainly by Channel
4TV.
Television Broadcasting EBITDA increased 13.6% to an
unprecedented third quarter EBITDA of Ps.1,586.7 million.
This growth was achieved through higher sales and a slight
decrease in cost of sales, partially offset by higher
operating expenses. In addition, operating income rose 16.9%
due to a 1.6% reduction in depreciation and amortization
costs.
PROGRAMMING The 11.2% increase in sales for Programming for Pay
FOR PAY Television resulted from both higher revenues from signals
TELEVISION sold to pay television systems in Mexico and higher
advertising sales in Mexico.
Operating income climbed 72.5% due to higher sales, lower
operating expenses primarily reflecting a decrease in
commissions, and a reduction of doubtful trade accounts in
Latin America, partially offset by higher costs of signals
bought from third parties.
PROGRAMMING The third quarter's 6.4% increase in Programming Licensing
LICENSING sales was attributable to an increase in the royalties paid
to the Company by Univision under the Univision Program
License Agreement, which amounted to U.S.$24.8 million. This
increase was partially offset by lower export sales mainly
to Latin America and Europe.
Operating income grew 84.2% reflecting higher sales, lower
cost of sales, and lower operating expenses, due to a
reduction of doubtful trade accounts in Latin America.
PUBLISHING Publishing sales increased 3.7% due to higher circulation of
magazines sold in Mexico, as well as the positive
translation effect on foreign-currency denominated sales,
which amounted to Ps.12.4 million. These increases were
partially offset by lower circulation of magazines sold
abroad, and fewer advertising pages sold in Mexico and
abroad.
Publishing operating income increased 31.1% due to higher
sales and a reduction in cost of sales resulting from
reduced magazine returns that in turn reflected effective
advertising campaigns and point of sales promotions,
partially offset by higher operating expenses.
PUBLISHING The 19.8% increase in Publishing Distribution sales was
DISTRIBUTION driven by: i) higher distribution sales abroad; ii) the
positive translation effect on foreign-currency denominated
sales, which amounted to Ps.25.0 million; and iii) increased
circulation of magazines published by the Company and sold
in Mexico. These increases were partially offset by lower
sales of magazines published by third parties and sold in
Mexico.
The operating result decreased by Ps.10.0 million to an
operating loss of Ps.5.4 million due to higher cost of sales
and operating expenses, related to an increase in doubtful
trade accounts, partially offset by higher sales.
CABLE Cable Television sales decreased 14.0% due to a decrease in
TELEVISION subscribers during the third quarter of 2003. The subscriber
base decreased to approximately 383,000, of which more than
63,100 had digital service as of September 30, 2003.
Cablevision will start implementing a phased program to
digitalize its service over the next two years.
Operating income decreased 48.5% due to lower sales and
higher depreciation and amortization costs related to the
network upgrade and related equipment. This decrease was
partially offset by a 15.5% decrease in cost of sales.
RADIO Radio sales increased 64.4% over last year's third quarter
due to higher advertising time sold especially during
newscasts. The Radio segment, already showing positive signs
of last year's restructuring initiatives, is benefiting from
improved ratings and increased sales efforts by its new
advertising sales force.
Operating losses decreased to Ps.1.1 million in the third
quarter from Ps.26.6 million in the 2002 comparable period.
The improvement reflected higher sales and a decrease in
costs of sales due to a reduction in headcount, partially
offset by higher operating expenses related to higher
commissions paid to its sales force.
OTHER The 28.6% decrease in Other Businesses sales was primarily
BUSINESS due to lower sales in the feature film distribution and
nationwide paging businesses, partially offset by higher
sales from the sporting events production business.
Operating losses increased to Ps.140.1 million in the third
quarter from Ps.96.2 million in last year's comparable
period, reflecting lower sales and higher operating
expenses, partially offset by lower cost of sales.
SKY Innova, S. de R.L. de C.V., is a non-consolidated business
of Grupo Televisa and the pay-TV market leader in Mexico. It
provides direct-to-home satellite television services under
the SKY brand name. Financial and operating unaudited
highlights of Innova, of which Televisa owns 60%, News Corp.
30%, and Liberty Media 10%, are as follows:
o The number of gross active subscribers increased
12.7% to 826,100, including 46,850 commercial
subscribers, as of September 30, 2003, compared
with 732,700, including 33,700 commercial
subscribers, as of September 30, 2002.
o Revenues increased 5.3% to Ps.931.8 million in the
third quarter of 2003 compared with the same
period of 2002, mainly due to the growth of its
subscriber base.
o EBITDA for the third quarter of 2003 increased
10.8% to Ps.293.6 million compared with the same
period of 2002. As a result, EBITDA margin
increased 150 basis points to 31.5%.
o EBIT (operating income) for the third quarter of
2003 improved 106.7% to Ps.92.0 million compared
with the same period of 2002. As a result, EBIT
(operating income) margin increased 490 basis
points to 9.9% in the third quarter of 2003.
o Innova did not require additional funding from its
shareholders during the third quarter of 2003 as a
result of its positive cash flow from operations
and the current balance of cash resources
available. This marks six straight quarters that
Innova has not required shareholder funding, and
it does not expect to require shareholder funding
in the fourth quarter of 2003.
o Standard & Poor's and Moody's upgraded Innova from
B-/B3 (Stable/Stable) to B+/B2 (Positive/Stable).
o Shareholder loans of approximately U.S.$310
million plus accrued interest of approximately
U.S.$81 million were capitalized.
o Innova successfully issued U.S.$300 million
10-year Senior Notes at 9.375%. The net proceeds
of the offering were used to redeem U.S.$287.0
million in aggregate principal amount of its 12
7/8% Senior Notes due 2007, and to pay a
redemption premium, taxes, fees and expenses
related to the transaction. This transaction
improved Innova's debt profile, generating
U.S.$9.3 million annual gross cash interest
expense savings, and extends the maturity of its
debt.
NON-OPERATING RESULTS
INTEGRAL COST OF FINANCING
The following table sets forth the Integral Cost of Financing for the three
months ended September 30, 2003 and 2002, in millions of Mexican pesos:
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3Q 3Q INCREASE CHANGE
2003 2002 (DECREASE) %
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Interest expense 320.7 358.8 (38.1) (10.6)
Interest income (155.8) (145.6) 10.2 7.0
Foreign exchange loss - net 229.8 102.5 127.3 124.2
Foreign exchange loss - hedged (344.1) (169.9) (174.2) N/A
Gain from monetary position - net (14.3) (22.8) 8.5 37.3
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36.3 123.0 (86.7) (70.5)
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The expense attributable to the integral cost of financing decreased by
Ps.86.7 million, or 70.5%, to Ps.36.3 million for the third quarter ended
September 30, 2003, from Ps.123.0 million for last year's comparable
period. This variance reflects: i) a Ps.38.1 million decrease in interest
expense, primarily as a result of a decrease in interest rates in the third
quarter of 2003 compared with the third quarter of 2002, a decrease in the
restatement of UDI's as a result of lower inflation in the third quarter of
2003, as well as a net gain attributable to interest swap contracts
outstanding in the third quarter of 2003; ii) a Ps.10.2 million increase in
interest income, primarily as a result of a higher average amount of
temporary investments during the third quarter of 2003 compared with the
third quarter of 2002, which was partially offset by a decrease in interest
rates applicable to these temporary investments in the third quarter of
2003 compared with the same period of last year; and iii) a Ps.174.2
million favorable hedge effect in the third quarter of 2003 compared with
the third quarter of 2002, resulting from an increase in the foreign
exchange loss related to the Company's U.S.$600 million long-term debt
maturing in 2011 and 2032, which is being hedged by the Company's net
investment in Univision. These decreases in the integral cost of financing
were partially offset by a Ps.127.3 million increase in net foreign
exchange loss in the third quarter of 2003 compared with the third quarter
of 2002, primarily due to the 5.46% depreciation of the Mexican peso
compared with the U.S. dollar during the third quarter ended September 30,
2003, versus a 2.74% depreciation of the Mexican peso compared with the
U.S. dollar during the third quarter ended September 30, 2002, and a Ps.8.5
million decrease in the gain from monetary position in the third quarter of
2003 compared with the third quarter of 2002, primarily as a result of a
reduction in the Company's net liability monetary position in the third
quarter of 2003 compared with the same period of last year.
RESTRUCTURING AND NON-RECURRING CHARGES
Restructuring and non-recurring charges decreased by Ps.79.3 million, or
65.6%, to Ps.41.6 million for the third quarter of 2003 from Ps.120.9
million for last year's comparable period. This decrease primarily reflects
the non-recurring charge taken in the third quarter of 2002 in connection
with the write-off of exclusive rights letters for soccer players and a
decrease in charges related to work force lay-offs in the third quarter of
2003 compared with the third quarter of 2002.
OTHER EXPENSE-NET
Other expense-net decreased by Ps.54.5 million to Ps.203.0 million for the
third quarter of 2003 from Ps.257.5 million in last year's comparable
period. The decrease primarily reflects a gain on exchange of the remaining
shares held by the Company in its former DTH venture in Spain and a
reduction in financial advisory and professional services. This decrease
was partially offset by an increase in donations made by the Company in the
third quarter of 2003.
INCOME TAXES
Income tax, assets tax and employees' profit sharing decreased by Ps.12.0
million to a tax provision of Ps.155.9 million for the third quarter of
2003 from Ps.167.9 million for last year's comparable period. This decrease
primarily reflected the use of tax loss carry-forwards in the second half
of 2003, which effect was partially offset by an increase in consolidated
assets tax, which is higher than consolidated income tax, as a result of an
increased assets tax base for 2003 compared with 2002.
EQUITY IN LOSSES OF AFFILIATES-NET
Equity in losses of affiliates increased by Ps.177.2 million to Ps.310.3
million for the third quarter of 2003 from Ps.133.1 million for the third
quarter of 2002. This change primarily reflects the recognition of
additional equity losses in Innova to maintain the Company's liability
position up to the amount of guarantees made by the Company in connection
with certain capital lease obligations of this DTH joint venture; as well
as the recognition in the third quarter of 2003 of equity losses in DTH
TechCo Partners ("TechCo") as a result of economic and financial
difficulties of certain DTH related parties in Latin America to which
TechCo provides technical services, including Sky Multi-Country Partners
("MCOP"). These unfavorable variances were partially offset by the
discontinuation in December 2002 of recognizing additional equity losses in
excess of the Company's guaranteed commitments for certain indebtedness of
MCOP, the DTH joint venture with current operations in Colombia and Chile;
as well as higher equity in income of Univision.
On September 9, 2003, Innova capitalized all of the amounts due to the
Company for an amount of Ps.2,560.9 million in connection with long-term
loans provided to Innova by the Company in prior years and related accrued
interest.
MINORITY INTEREST
Minority interest decreased by Ps.15.9 million to Ps.3.0 million for the
third quarter of 2003 from Ps.18.9 million for the third quarter of 2002.
This decrease primarily reflects a decrease in the net income of the
Company's Cable Television segment, partially offset by a decrease in the
net loss of the Company's Radio segment for the third quarter of 2003
compared with the third quarter of 2002.
OTHER RELEVANT INFORMATION
CREATION OF THE EXECUTIVE OFFICE OF THE CHAIRMAN
Televisa announced today that its Board of Directors approved the creation
of an Executive Office of the Chairman that will consist of Mr. Emilio
Azcarraga Jean, Chairman of the Board and Chief Executive Officer, and
Messrs. Alfonso de Angoitia and Bernardo Gomez, Executive Vice-Presidents.
The Executive Office of the Chairman will be responsible for overseeing all
Televisa operations, strategic planning, new business initiatives in Mexico
and abroad, and setting operating policies for the companies of the Group.
Mr. Jose Baston, Corporate Vice President of Television, will continue to
operate the Television business as a whole, including production,
programming, sales and exports, and will assume responsibility over the
local television stations and the Programming for Pay Television segment.
In addition, Mr. de Angoitia will be Chairman of the Finance Committee, in
charge of defining and implementing the financial and administrative
policies of the companies of the Group.
The Board of Directors also appointed Mr. Salvi Folch as Televisa's Chief
Financial Officer, who will report directly to Mr. de Angoitia. Mr. Folch
has been with Grupo Televisa since year 2000. For the past 2 years he has
served as Vice President of Financial Planning and Budget Control. Before
he served as Vice Chairman of the Mexican Banking and Securities
Commission. He has a degree in Economics and an MBA from London Business
School.
The aforementioned appointments will become effective January 1, 2004.
CAPITAL EXPENDITURES, ACQUISITIONS AND INVESTMENTS
In the third quarter of 2003, the Company invested approximately U.S.$12.3
million in property, plant and equipment as capital expenditures, of which
approximately U.S.$3.0 million is related to Cablevision. Additionally, in
the third quarter of 2003 the Company made capital contributions of
approximately U.S.$2.5 million in "TuTv", a 50% joint venture with
Univision for distribution of the Company's Spanish-speaking programming
packages in the United States, and provided funding of approximately
U.S.$3.6 million in long-term loans to its Latin American DTH joint
ventures. Innova has not required shareholder funding for the past six
quarters and does not expect to require loans or cash equity contributions
from its shareholders in the fourth quarter of 2003.
DEBT
As of September 30, 2003, the Company's long-term debt maturities amounted
to Ps.14,500.2 million, and the current portion of long-term debt was
Ps.284.3 million, compared with Ps.13,634.7 million and Ps.1,276.2 million,
respectively, as of September 30, 2002.
On September 18, 2003 Fitch Ratings upgraded Grupo Televisa, S.A.'s
international scale local currency rating to "BBB" from "BBB-" and the
national scale rating to "AA+(mex)" from "AA(mex)". Additionally, Fitch
affirmed Grupo Televisa's international scale foreign currency unsecured
debt ratings of "BBB-". The outlook on all three ratings is "Stable".
MERGER OF UNIVISION AND HISPANIC BROADCASTING CORPORATION
On September 22, 2003, Univision Communications Inc. ("Univision") and
Hispanic Broadcasting Corporation ("HBC"), the leading Spanish-language
radio group in the United States, announced that they received clearance
from the U.S. Federal Communications Commission to complete a proposed
merger of their businesses. Following this approval, the HBC common stock
was converted into 0.85 shares of Univision Class A common stock, giving
HBC shareholders approximately 26.5% of Univision's fully diluted economic
ownership.
As a result of this merger, the Group's ownership in Univision was diluted
to 10.9% on a fully diluted basis (and to 9.4% on a current ownership
basis). However, the Group will increase the carrying value of its
investment in Univision by recognizing a net comprehensive income from this
merger in the fourth quarter of 2003, following the reporting by Univision
of the merger effects on its stockholders' equity as of September 30, 2003.
Based on Univision's preliminary estimates using June 30, 2003 as the
merger date, the increase in the Group's investment in Univision on a pro
forma basis would have been approximately U.S.$252 million.
SHARE BUYBACK PROGRAM
Since the implementation of our most recently announced share repurchase
program, through October 22, 2003, the Company has repurchased
approximately 94.8 million shares in the form of 31.6 million CPOs for
approximately Ps.520.3 million.
TELEVISION RATINGS AND AUDIENCE SHARE
National urban ratings and audience share reported by IBOPE confirm that in
the third quarter of 2003, Televisa continued to deliver strong ratings and
audience shares. During weekday prime time (19:00 to 23:00 - Monday to
Friday), audience share amounted to 71.5%; in prime time (16:00 to 23:00 -
Monday to Sunday), audience share amounted to 70.0%; and in sign-on to
sign-off (6:00 to 24:00 - Monday to Sunday), audience share amounted to
71.4%.
Additionally, during the third quarter of 2003, Televisa aired 88 of the
100 most popular programs. Channel 2 continues to be the leader in Mexican
television largely due to the success of the telenovelas: "Amor Real,"
"Velo de Novia," and "Clase 406." Moreover, Televisa continues to
successfully air "reality shows" such as "Fear Factor," and on September
28, 2003, launched its second edition of "Big Brother VIP."
OUTLOOK FOR 2003
Considering our year to date results, we expect to exceed our initial
guidance for the year. We now expect our 2003 Television Broadcasting
segment and Consolidated EBITDA margins to reach 41.5% and 31.5%,
respectively.
Grupo Televisa S.A., is the largest media company in the Spanish-speaking
world, and a major player in the international entertainment business. It
has interests in television production and broadcasting, programming for
pay television, international distribution of television programming,
direct-to-home satellite services, publishing and publishing distribution,
cable television, radio production and broadcasting, professional sports
and show business promotions, paging services, feature film production and
distribution, dubbing, and the operation of a horizontal Internet portal.
Grupo Televisa also has an unconsolidated equity stake in Univision, the
leading Spanish-language television company in the United States.
This press release contains forward-looking statements regarding the
Company's results and prospects. Actual results could differ materially
from these statements. The forward-looking statements in this press release
should be read in conjunction with the factors described in "Item 3. Key
Information - Forward-Looking Statements" in the Company's Annual Report on
Form 20-F, which, among others, could cause actual results to differ
materially from those contained in forward-looking statements made in this
press release and in oral statements made by authorized officers of the
Company. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
(Please see attached tables for financial information and ratings data)
###
CONTACTS:
INVESTOR RELATIONS:
Michel Boyance / Alejandro Eguiluz
Grupo Televisa, S.A.
Av. Vasco de Quiroga No. 2000
Colonia Santa Fe
01210 Mexico, D.F.
(5255) 5261-2000
[OBJECT OMITTED]
GRUPO TELEVISA, S. A.
CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
(Millions of Mexican pesos in purchasing power as of September 30, 2003)
September 30, December 31,
2003 2002
(Unaudited) (Audited)
--------------- -------------
ASSETS
Current:
Available:
Cash Ps. 245.5 Ps. 1,650.3
Temporary investments 9,441.7 7,338.9
----------------- ---------------
9,687.2 8,989.2
Trade notes and accounts receivable-net 3,303.4 9,784.0
Other accounts and notes receivable-net 940.3 887.8
Due from affiliated companies-net 366.6 -
Transmission rights, programs,
production talent advances and films 3,488.5 3,498.9
Inventories 480.2 520.4
Other current assets 372.8 440.1
----------------- ---------------
Total current assets 18,639.0 24,120.4
Transmission rights, programs, literary works 5,068.7 4,948.9
Investments 3,379.6 3,103.0
Property, plant and equipment-net 15,324.6 15,696.7
Goodwill and trademarks-net 8,112.5 8,149.7
Deferred costs-net 1,146.5 1,389.0
Other assets 334.5 366.8
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Total assets Ps. 52,005.4 Ps. 57,774.5
================= ===============
[OBJECT OMITTED]
GRUPO TELEVISA, S. A.
CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
(Millions of Mexican pesos in purchasing power as of September 30, 2003)
September 30, December 31,
2003 2002
(Unaudited) (Audited)
--------------- -------------
LIABILITIES
Current:
Current portion of long-term debt Ps. 284.3 Ps. 1,268.4
Trade accounts payable 1,956.6 2,279.9
Customer deposits and advances 6,197.9 11,815.5
Taxes payable 273.0 906.8
Accrued interest 204.1 314.6
Other accrued liabilities 1,144.9 836.2
Due to affiliated companies and related - 60.0
parties-net
---------------- ---------------
Total current liabilities 10,060.8 17,481.4
Long-term debt 14,500.2 13,652.7
Customer deposits and advances 214.8 208.4
Other long-term liabilities 893.9 778.0
Deferred taxes 1,296.5 2,082.8
DTH joint ventures 1,674.6 1,683.1
Pension plans and seniority premiums 159.5 72.4
---------------- ---------------
Total liabilities 28,800.3 35,958.8
---------------- ---------------
STOCKHOLDERS' EQUITY
Majority interest:
Capital stock, no par value:
Issued 7,761.0 7,789.3
Repurchased (283.8) (250.8)
---------------- ---------------
Outstanding 7,477.2 7,538.5
Additional paid-in capital 221.4 221.4
---------------- ---------------
7,698.6 7,759.9
---------------- ---------------
Retained earnings:
Legal reserve 1,249.1 1,211.3
Reserve for repurchase of shares 5,219.1 5,644.0
Unappropriated earnings 10,610.9 10,431.9
Accumulated other comprehensive loss (4,976.5) (5,152.0)
Net income for the period 2,217.0 754.8
---------------- ---------------
14,319.6 12,890.0
---------------- ---------------
Total majority interest 22,018.2 20,649.9
Minority interest 1,186.9 1,165.8
---------------- ---------------
Total stockholders' equity 23,205.1 21,815.7
---------------- ---------------
Total liabilities and stockholders' Ps. 52,005.4 Ps. 57,774.5
equity ================ ===============
[OBJECT OMITTED]
GRUPO TELEVISA, S. A.
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Millions of Mexican pesos in purchasing power as of September 30, 2003)
Three months ended September 30, Nine months ended September 30,
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------- --------------- --------------- ---------------
Net sales Ps. 5,626.1 Ps. 5,444.0 Ps. 16,272.3 Ps. 15,546.4
Cost of sales 3,065.1 3,124.0 8,923.4 9,084.6
--------------- --------------- --------------- ---------------
Gross profit 2,561.0 2,320.0 7,348.9 6,461.8
--------------- --------------- --------------- ---------------
Operating expenses:
Selling 397.6 409.3 1,146.8 1,203.9
Administrative 330.6 329.4 1,035.0 1,025.4
--------------- --------------- --------------- ---------------
728.2 738.7 2,181.8 2,229.3
--------------- --------------- --------------- ---------------
EBITDA(1) 1,832.8 1,581.3 5,167.1 4,232.5
Depreciation and amortization 396.7 377.4 1,153.6 1,098.1
--------------- --------------- --------------- ---------------
Operating income 1,436.1 1,203.9 4,013.5 3,134.4
--------------- --------------- --------------- ---------------
Integral cost of financing:
Interest expense 320.7 358.8 978.3 1,025.3
Interest income (155.8) (145.6) (514.3) (471.5)
Foreign exchange (gain) loss - net 229.8 102.5 225.3 501.9
Foreign exchange result - hedged (344.1) (169.9) (331.9) (669.2)
(Gain) loss from monetary
position-net (14.3) (22.8) 36.1 117.1
-------------- -------------- -------------- --------------
36.3 123.0 393.5 503.6
-------------- -------------- -------------- --------------
Restructuring and non-recurring charges 41.6 120.9 138.1 617.0
--------------- --------------- --------------- ---------------
Other expense-net 203.0 257.5 215.7 685.4
--------------- --------------- --------------- ---------------
Income before taxes 1,155.2 702.5 3,266.2 1,328.4
--------------- --------------- --------------- ---------------
Income tax and assets tax 154.8 161.9 745.9 158.8
Employees' profit sharing 1.1 6.0 4.2 21.4
--------------- --------------- --------------- ---------------
155.9 167.9 750.1 180.2
--------------- --------------- --------------- ---------------
Income before equity in results
of affiliates, income from
discontinued operations and
minority interest 999.3 534.6 2,516.1 1,148.2
Equity in losses of affiliates-net (310.3) (133.1) (303.7) (527.7)
Income from discontinued operations-net - 10.9 - 1,125.6
Minority interest (3.0) (18.9) 4.6 (31.8)
--------------- --------------- --------------- ---------------
Net income Ps. 686.0 Ps. 393.5 Ps. 2,217.0 Ps. 1,714.3
=============== =============== =============== ===============
(1) EBITDA is defined as earnigns before interest, taxes, depreciation and amortization.
NATIONAL URBAN RATINGS AND AUDIENCE SHARE FOR 3RD AND 4TH QUARTERS OF 2002
AND 1ST, 2ND AND 3RD QUARTERS OF 2003(1):
SIGN-ON TO SIGN-OFF -- 6:00 TO 24:00, MONDAY TO SUNDAY
------------------------------------------------------------------------------------------
JUL AUG SEP OCT NOV DEC 2002 JAN FEB
------------------------------------------------------------------------------------------
Channel 2
Rating 12.2 11.8 11.6 11.5 11.3 10.5 11.8 11.5 11.3
Share (%) 31.8 31.3 31.0 30.8 29.7 29.6 31.5 30.9 30.1
Total
Televisa(2)
Rating 29.7 27.6 27.3 26.9 27.3 25.6 27.9 27.0 26.7
Share (%) 77.6 73.5 72.9 72.1 71.5 72.3 74.4 72.6 70.9
SIGN-ON TO SIGN-OFF -- 6:00 TO 24:00, MONDAY TO SUNDAY
-------------------------------------------------------------------------------------------
MAR APR MAY JUN 2Q03 JUL AUG SEP 3Q03
-------------------------------------------------------------------------------------------
Channel 2
Rating 11.8 11.4 11.2 11.4 11.3 11.5 11.9 12.2 11.9
Share (%) 30.6 30.6 30.9 30.6 30.7 30.6 31.7 32.2 31.5
Total
Televisa(2)
Rating 27.5 26.6 26.1 26.5 26.4 27.1 26.7 27.0 26.9
Share (%) 71.5 71.4 72.0 71.5 71.6 71.8 71.1 71.3 71.4
PRIME TIME - 16:00 TO 23:00, MONDAY TO SUNDAY(3)
------------------------------------------------------------------------------------------
JUL AUG SEP OCT NOV DEC 2002 JAN FEB
------------------------------------------------------------------------------------------
Channel 2
Rating 18.2 17.9 17.8 17.5 17.6 15.6 17.9 18.1 17.7
Share (%) 33.0 33.1 32.6 31.6 30.9 30.1 32.7 32.7 32.0
Total
Televisa(2)
Rating 42.3 38.4 38.5 38.2 39.5 36.5 39.6 39.9 38.8
Share (%) 76.5 71.3 70.7 69.2 69.2 70.6 72.4 72.0 69.9
------------------------------------------------------------------------------------------
PRIME TIME - 16:00 TO 23:00, MONDAY TO SUNDAY(3)
------------------------------------------------------------------------------------------
MAR APR MAY JUN 2Q03 JUL AUG SEP 3Q03
------------------------------------------------------------------------------------------
Channel 2
Rating 17.9 17.6 17.3 18.0 17.7 17.9 18.5 18.5 18.3
Share (%) 32.1 32.9 33.1 33.2 33.1 33.1 34.4 34.0 33.8
Total
Televisa(2)
Rating 38.7 37.3 36.6 37.6 37.2 38.2 37.6 37.9 37.9
Share (%) 69.6 69.8 69.9 69.2 69.6 70.4 69.7 69.8 70.0
------------------------------------------------------------------------------------------
WEEKDAY PRIME TIME - 19:00 TO 23:00, MONDAY TO FRIDAY(3)
------------------------------------------------------------------------------------------
JUL AUG SEP OCT NOV DEC 2002 JAN FEB
------------------------------------------------------------------------------------------
Channel 2
Rating 20.8 22.3 22.8 21.4 21.0 19.4 21.8 22.0 23.0
Share (%) 33.6 37.2 37.2 34.7 32.6 33.2 35.2 34.6 35.7
Total
Televisa(2)
Rating 48.0 43.5 43.7 42.3 45.2 42.6 45.0 47.2 46.6
Share (%) 77.5 72.5 71.2 68.4 70.1 73.0 72.5 74.4 72.2
------------------------------------------------------------------------------------------
WEEKDAY PRIME TIME - 19:00 TO 23:00, MONDAY TO FRIDAY(3)
------------------------------------------------------------------------------------------
MAR APR MAY JUN 2Q03 JUL AUG SEP 3Q03
------------------------------------------------------------------------------------------
Channel 2
Rating 24.2 24.0 23.6 24.3 24.0 22.8 24.7 23.8 23.7
Share (%) 37.6 39.4 39.6 38.8 39.3 36.9 39.5 37.9 38.1
Total
Televisa(2)
Rating 46.2 44.7 43.4 44.9 44.3 44.0 44.8 44.8 44.5
Share (%) 71.8 73.4 72.8 71.7 72.6 71.3 71.7 71.4 71.5
------------------------------------------------------------------------------------------
1) National urban ratings and audience share are certified by IBOPE and are
based upon IBOPE's national surveys, which are calculated, seven days a
week, in Mexico City, Guadalajara, Monterrey and 25 other cities with a
population of over 400,000 people. "Ratings" for a period refers to the
number of television sets tuned into the Company's programs as a percentage
of the total number of all television households. "Audience share" is the
number of television sets tuned into the Company's programs as a percentage
of the number of households watching conventional over-the-air television
during that period, without regard to the number of viewers.
2) "Total Televisa" includes the Company's four networks as well as all
local affiliates (including affiliates of Channel 4, most of which receive
only a portion of their daily programming from Channel 4). Programming on
affiliates of Channel 4 is generally broadcast in 12 of the 28 cities that
are covered by national surveys. Programming on Channel 9 affiliates is
broadcast in all of the cities that are covered by national surveys.
3) "Televisa Prime Time" is the time during which the Company generally
charges its highest rates for its networks.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
------------------------------------
(Registrant)
Dated: October 23, 2003 By /s/ Jorge Lutteroth Echegoyen
---------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President