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.
-------------------------------------------------
(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Sante Fe 01210 Mexico, D.F.
---------------------------------------------------------------------
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
------- -------
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No X
----- -----
(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENTS
AT SEPTEMBER 30 OF 2003 AND 2002
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- -------------------
S AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------------
1 TOTAL ASSETS 52,005,391 100 50,934,287 100
2 CURRENT ASSETS 18,639,013 36 16,913,859 33
3 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 9,687,242 19 7,188,432 14
4 OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE 3,303,319 6 3,625,835 7
5 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 1,306,924 3 1,498,575 3
6 INVENTORIES 3,968,706 8 4,142,810 8
7 OTHER CURRENT ASSETS 372,822 1 458,207 1
8 LONG-TERM 3,379,622 6 3,376,537 7
9 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 0 0 5,827 0
10 INVESTMENT IN SHARES OF SUBSIDIARIES
AND NON-CONSOLIDATED 3,179,319 6 3,210,606 6
11 OTHER INVESTMENTS 200,303 0 160,104 0
12 PROPERTY, PLANT AND EQUIPMENT 15,324,578 29 15,684,181 31
13 PROPERTY 11,950,635 23 11,946,216 23
14 MACHINERY AND INDUSTRIAL 10,388,132 20 9,956,852 20
15 OTHER EQUIPMENT 2,394,309 5 2,183,335 4
16 ACCUMULATED DEPRECIATION 10,359,349 20 9,318,377 18
17 CONSTRUCTION IN PROGRESS 950,851 2 916,155 2
18 DEFERRED ASSETS (NET) 9,258,964 18 9,581,154 19
19 OTHER ASSETS 5,403,214 10 5,378,556 11
20 TOTAL LIABILITIES 28,800,241 100 27,476,232 100
21 CURRENT LIABILITIES 3,862,905 13 5,058,764 18
22 SUPPLIERS 1,956,596 7 2,216,022 8
23 BANK LOANS 284,263 1 529,199 2
24 STOCK MARKET LOANS 0 0 732,594 3
25 TAXES TO BE PAID 273,044 1 241,832 1
26 OTHER CURRENT LIABILITIES 1,349,002 5 1,339,117 5
27 LONG-TERM LIABILITIES 15,394,119 53 14,274,881 52
28 BANK LOANS 2,055,521 7 1,487,204 5
29 STOCK MARKET LOANS 12,444,653 43 12,147,468 44
30 OTHER LOANS 893,945 3 640,209 2
31 DEFERRED LOANS 7,709,203 27 6,909,862 25
32 OTHER LIABILITIES 1,834,014 6 1,232,725 4
33 CONSOLIDATED STOCKHOLDERS' EQUITY 23,205,150 100 23,458,055 100
34 MINORITY INTEREST 1,186,895 5 1,125,255 5
35 MAJORITY INTEREST 22,018,255 95 22,332,800 95
36 CONTRIBUTED CAPITAL 7,698,646 33 7,760,076 33
37 PAID-IN CAPITAL STOCK (NOMINAL) 1,498,196 6 1,512,301 6
38 RESTATEMENT OF PAID-IN CAPITAL STOCK 5,979,005 26 6,026,330 26
39 PREMIUM ON SALES OF SHARES 221,445 1 221,445 1
40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0
41 CAPITAL INCREASE (DECREASE) 14,319,609 62 14,572,724 62
42 RETAINED EARNINGS AND CAPITAL RESERVE 12,595,026 54 11,946,023 51
43 REPURCHASE FUNDS OF SHARES 5,219,102 22 5,643,964 24
44 EXCESS (SHORTFALL) IN RESTATEMENT OF
STOCKHOLDERS' EQUITY (5,711,541) (25) (4,731,542) (20)
45 NET INCOME FOR THE YEAR 2,217,022 10 1,714,279 7
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENTS
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- -------------------
S AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------------
3 CASH AND SHORT-TERM INVESTMENTS 9,687,242 100 7,188,432 100
46 CASH 245,517 3 578,392 8
47 SHORT-TERM INVESTMENTS 9,441,725 97 6,610,040 92
18 DEFERRED ASSETS (NET) 9,258,964 100 9,581,154 100
48 AMORTIZED OR REDEEMED EXPENSES 1,581,439 17 1,931,371 20
49 GOODWILL 7,677,525 83 7,649,783 80
50 DEFERRED TAXES 0 0 0 0
51 OTHERS 0 0 0 0
21 CURRENT LIABILITIES 3,862,905 100 5,058,764 100
52 FOREIGN CURRENCY LIABILITIES 2,036,095 53 3,039,094 60
53 MEXICAN PESOS LIABILITIES 1,826,810 47 2,019,670 40
24 STOCK MARKET LOANS 0 0 732,594 100
54 COMMERCIAL PAPER 0 0 732,594 100
55 CURRENT MATURITIES OF MEDIUM-TERM NOTES 0 0 0 0
56 CURRENT MATURITIES OF BONDS 0 0 0 0
26 OTHER CURRENT LIABILITIES 1,349,002 100 1,339,117 100
57 OTHER CURRENT LIABILITIES WITH COST 0 0 14,382 1
58 OTHER CURRENT LIABILITIES WITHOUT COST 1,349,002 100 1,324,735 99
27 LONG-TERM LIABILITIES 15,394,119 100 14,274,881 100
59 FOREIGN CURRENCY LIABILITIES 10,845,522 70 10,172,174 71
60 MEXICAN PESOS LIABILITIES 4,548,597 30 4,102,707 29
29 STOCK MARKET LOANS 12,444,653 100 12,147,468 100
61 BONDS 12,444,653 100 12,147,468 100
62 MEDIUM TERM NOTES 0 0 0 0
30 OTHER LOANS 893,945 100 640,209 100
63 OTHER LOANS WITH COST 0 0 0 0
64 OTHER LOANS WITHOUT COST 893,945 100 640,209 100
31 DEFERRED LOANS 7,709,203 100 6,909,862 100
65 NEGATIVE GOODWILL 0 0 0 0
66 DEFERRED TAXES 1,296,476 17 2,030,074 29
67 OTHERS 6,412,727 83 4,879,788 71
32 OTHER LIABILITIES 1,834,014 100 1,232,725 100
68 RESERVES 159,460 9 71,300 6
69 OTHERS LIABILITIES 1,674,554 91 1,161,425 94
44 EXCESS (SHORTFALL) IN RESTATEMENT OF (5,711,541) 100 (4,731,542) 100
STOCKHOLDERS' EQUITY
70 ACCUMULATED INCOME DUE TO MONETARY POSITION (29,501) (1) (29,501) (1)
71 INCOME FROM NON-MONETARY POSITION ASSETS (5,682,040) (99) (4,702,041) (99)
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENTS
OTHER CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- --------------------
S AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------
72 WORKING CAPITAL 14,776,108 11,855,095
73 PENSIONS FUND AND SENIORITY PREMIUMS 883,448 603,834
74 EXECUTIVES (*) 36 36
75 EMPLOYERS (*) 12,377 12,721
76 WORKERS (*) 0 0
77 CIRCULATION SHARES (*) 8,767,126,225 8,849,664,574
78 REPURCHASED SHARES (*) 332,785,180 283,378,543
(*) THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
FROM JANUARY 1 TO SEPTEMBER 30, 2003 AND 2002
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- -------------------
R AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------------
1 NET SALES 16,272,266 100 15,546,372 100
2 COST OF SALES 9,771,207 60 9,825,925 63
3 GROSS INCOME 6,501,059 40 5,720,447 37
4 OPERATING 2,487,517 15 2,586,084 17
5 OPERATING INCOME 4,013,542 25 3,134,363 20
6 TOTAL FINANCING COST 393,506 2 503,619 3
7 INCOME AFTER FINANCING COST 3,620,036 22 2,630,744 17
8 OTHER FINANCIAL OPERATIONS 353,863 2 1,302,395 8
9 INCOME BEFORE TAXES AND WORKERS' PROFIT
SHARING 3,266,173 20 1,328,349 9
10 RESERVE FOR TAXES AND WORKERS' PROFIT
SHARING 750,055 5 180,203 1
11 NET INCOME AFTER TAXES AND WORKERS' PROFIT
SHARING 2,516,118 15 1,148,146 7
12 SHARE IN NET INCOME OF SUBSIDIARIES AND
NON-CONSOLIDATED ASSOCIATES (303,703) (2) (527,697) (3)
13 CONSOLIDATED NET INCOME OF CONTINUOUS
OPERATIONS 2,212,415 14 620,449 4
14 INCOME OF DISCONTINUOUS OPERATIONS 0 0 (1,125,635) (7)
15 CONSOLIDATED NET INCOME BEFORE
EXTRAORDINARY ITEMS 2,212,415 14 1,746,084 11
16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0 0 0
17 NET EFFECT AT THE BEGINNING OF THE YEAR BY
CHANGES IN ACCOUNTING PRINCIPLES 0 0 0 0
18 NET CONSOLIDATED INCOME 2,212,415 14 1,746,084 11
19 NET INCOME OF MINORITY INTEREST (4,607) (0) 31,805 0
20 NET INCOME OF MAJORITY INTEREST 2,217,022 14 1,714,279 11
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- -------------------
R AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------------
1 NET SALES 16,272,266 100 15,546,372 100
21 DOMESTIC 13,340,818 82 13,094,275 84
22 FOREIGN 2,931,448 18 2,452,097 16
23 TRANSLATED INTO DOLLARS (***) 266,302 2 230,441 1
6 TOTAL FINANCING COST 393,506 100 503,619 100
24 INTEREST PAID 901,434 229 897,175 178
25 EXCHANGE LOSSES 700,388 178 954,906 190
26 INTEREST EARNED 514,339 131 471,458 94
27 EXCHANGE PROFITS 806,986 205 1,122,195 223
28 GAIN DUE TO MONETARY POSITION 36,117 9 117,130 23
42 LOSS ON RESTATEMENT OF UDI'S 76,892 20 128,061 25
43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0
8 OTHER FINANCIAL OPERATIONS 353,863 100 1,302,395 100
29 OTHER NET EXPENSES (INCOME) NET 353,863 100 1,302,395 100
30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0 0 0
31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 750,055 100 180,203 100
32 INCOME TAX 745,973 99 637,165 354
33 DEFERRED INCOME TAX (106) (0) (478,403) (265)
34 WORKERS' PROFIT SHARING 4,188 1 21,441 12
35 DEFERRED WORKERS' PROFIT SHARING 0 0 0 0
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- ---------------------
R AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------
36 TOTAL SALES 17,646,333 16,899,256
37 NET INCOME OF THE YEAR 690,206 (990,172)
38 NET SALES (**) 22,781,889 21,669,071
39 OPERATION INCOME (**) 5,636,653 4,658,632
40 NET INCOME OF MAJORITY INTEREST (**) 1,257,579 2,690,306
41 NET CONSOLIDATED INCOME (**) 1,150,748 2,674,229
(**) THE RESTATED INFORMATION ON THE LAST TWELVE MONTHS SHOULD BE USED
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
FROM JULY 1 TO SEPTEMBER 30, 2003 AND 2002
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- -------------------
R AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------------
1 NET SALES 5,626,083 100 5,443,990 100
2 COST OF SALES 3,406,452 61 3,366,513 62
3 GROSS INCOME 2,219,631 39 2,077,477 38
4 OPERATING 783,547 14 873,590 16
5 OPERATING INCOME 1,436,084 26 1,203,887 22
6 TOTAL FINANCING COST 36,265 1 122,950 2
7 INCOME AFTER FINANCING COST 1,399,819 25 1,080,937 20
8 OTHER FINANCIAL OPERATIONS 244,620 4 378,435 7
9 INCOME BEFORE TAXES AND WORKERS' PROFIT
SHARING 1,155,199 21 702,502 13
10 RESERVE FOR TAXES AND WORKERS' PROFIT
SHARING 155,869 3 167,938 3
11 NET INCOME AFTER TAXES AND WORKERS' PROFIT
SHARING 999,330 18 534,564 10
12 SHARE IN NET INCOME OF SUBSIDIARIES AND
NON-CONSOLIDATED ASSOCIATES (310,310) (6) (133,060) (2)
13 CONSOLIDATED NET INCOME OF CONTINUOUS
OPERATIONS 689,020 12 401,504 7
14 INCOME OF DISCONTINUOUS OPERATIONS 0 0 (10,890) (0)
15 CONSOLIDATED NET INCOME BEFORE
EXTRAORDINARY ITEMS 689,020 12 412,394 8
16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0 0 0
17 NET EFFECT AT THE BEGINNING OF THE YEAR BY
CHANGES IN ACCOUNTING PRINCIPLES 0 0 0 0
18 NET CONSOLIDATED INCOME 689,020 12 412,394 8
19 NET INCOME OF MINORITY INTEREST 2,996 0 18,867 0
20 NET INCOME OF MAJORITY INTEREST 686,024 12 393,527 7
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- -------------------
R AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------------
1 NET SALES 5,626,083 100 5,443,990 100
21 DOMESTIC 4,534,670 81 4,548,090 84
22 FOREIGN 1,091,413 19 895,900 16
23 TRANSLATED INTO DOLLARS (***) 91,840 2 82,074 2
6 TOTAL FINANCING COST 36,265 100 122,950 100
24 INTEREST PAID 294,358 812 315,658 257
25 EXCHANGE LOSSES 325,730 898 214,025 174
26 INTEREST EARNED 155,773 430 145,617 118
27 EXCHANGE PROFITS 440,047 1,213 281,432 229
28 GAIN DUE TO MONETARY POSITION (14,298) (39) (22,755) (19)
42 LOSS ON RESTATEMENT OF UDI'S 26,295 73 43,071 35
43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0
8 OTHER FINANCIAL OPERATIONS 244,620 100 378,435 100
29 OTHER NET EXPENSES (INCOME) NET 244,620 100 378,435 100
30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0 0 0
31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 155,869 100 167,938 100
32 INCOME TAX (72,293) (46) 118,165 70
33 DEFERRED INCOME TAX 227,087 146 43,754 26
34 WORKERS' PROFIT SHARING 1,075 1 6,019 4
35 DEFERRED WORKERS' PROFIT SHARING 0 0 0 0
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 TO SEPTEMBER 30, 2003 AND 2002
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- ----------------------
C AMOUNT AMOUNT
------------------------------------------------------------------------------------------------------
1 CONSOLIDATED NET INCOME 2,212,415 1,746,084
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT
REQUIRE USING CASH 1,649,189 711,928
3 CASH FLOW FROM NET INCOME OF THE YEAR 3,861,604 2,458,012
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL (671,757) (308,467)
5 CASH GENERATED (USED) IN OPERATING ACTIVITIES 3,189,847 2,149,545
6 CASH FLOW FROM EXTERNAL FINANCING (92,854) 1,234,877
7 CASH FLOW FROM INTERNAL FINANCING (1,024,237) (31,876)
8 CASH FLOW GENERATED (USED) BY FINANCING (1,117,091) 1,203,001
9 CASH FLOW GENERATED (USED) IN INVESTMENT
ACTIVITIES (1,374,772) (2,246,882)
10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
INVESTMENTS 697,984 1,105,664
11 CASH AND SHORT-TERM INVESTMENTS AT THE
BEGINNING OF PERIOD 8,989,258 6,082,768
12 CASH AND SHORT-TERM INVESTMENTS AT THE END
OF PERIOD 9,687,242 7,188,432
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
------------------- ----------------------
C AMOUNT AMOUNT
------------------------------------------------------------------------------------------------------
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT
REQUIRE USING CASH 1,649,189 711,928
13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 1,153,526 1,098,121
14 + (-) NET INCREASE (DECREASE) IN PENSIONS FUND
AND SENIORITY PREMIUMS
15 + (-) NET LOSS (PROFIT) IN MONEY EXCHANGE
16 + (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES
ACTUALIZATION
17 + (-) OTHER ITEMS 190,597 275,126
40 + (-) OTHER NON - EBITDA ITEMS 305,066 (661,319)
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL (671,757) (308,467)
18 + (-) DECREASE (INCREASE) IN ACCOUNTING RECEIVABLE 6,291,156 5,581,353
19 + (-) DECREASE (INCREASE) IN INVENTORIES (27,350) (72,365)
20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNT
RECEIVABLE 7,152 266,662
21 + (-) INCREASE (DECREASE) IN SUPPLIER ACCOUNT (323,256) 84,446
22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES (6,619,459) (6,168,563)
6 CASH FLOW FROM EXTERNAL FINANCING (92,854) 1,234,877
23 + SHORT-TERM BANK AND STOCK MARKET FINANCING 926,803
24 + LONG-TERM BANK AND STOCK MARKET FINANCING 1,154,959 3,212,815
25 + DIVIDEND RECEIVED
26 + OTHER FINANCING
27 (-) BANK FINANCING AMORTIZATION (228,144) (2,908,940)
28 (-) STOCK MARKET AMORTIZATION (720,415)
29 (-) OTHER FINANCING AMORTIZATION (299,254) 4,199
7 CASH FLOW FROM INTERNAL FINANCING (1,024,237) (31,876)
30 + (-) INCREASE (DECREASE) IN CAPITAL STOCKS (461,564) (31,876)
31 (-) DIVIDENDS PAID (562,673)
32 + PREMIUM ON SALE OF SHARES
33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES
9 CASH FLOW GENERATED (UTILIZED) IN INVESTMENT
ACTIVITIES (1,374,772) (2,246,882)
34 + (-) DECREASE (INCREASE) IN STOCK INVESTMENTS
OF A PERMANENT NATURE (486,685) (1,843,038)
35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (585,975) (1,131,796)
36 (-) INCREASE IN CONSTRUCTIONS IN PROGRESS
37 + SALE OF OTHER PERMANENT INVESTMENTS
38 + SALE OF TANGIBLE FIXED ASSETS 219,102 127,841
39 + (-) OTHER ITEMS (521,214) 600,111
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
RATIOS
CONSOLIDATED
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
P
------------------------------------------------------------------------------------------------------
YIELD
1 NET INCOME TO NET SALES 13.60 % 11.23 %
2 NET INCOME TO STOCKHOLDERS' EQUITY (**) 5.71 % 12.05 %
3 NET INCOME TO TOTAL ASSETS (**) 2.21 % 5.25 %
4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00 % 0.00 %
5 INCOME DUE TO MONETARY POSITION TO NET INCOME (1.63) % (6.71) %
ACTIVITY
6 NET SALES TO NET ASSETS (**) 0.44 times 0.43 times
7 NET SALES TO FIXED ASSETS (**) 1.49 times 1.38 times
8 INVENTORIES ROTATION (**) 3.44 times 3.25 times
9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 48 days 55 days
10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 8.20 % 7.66 %
LEVERAGE
11 TOTAL LIABILITIES TO TOTAL ASSETS 55.38 % 53.94 %
12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.24 times 1.17 times
13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 44.73 % 48.08 %
14 LONG-TERM LIABILITIES TO FIXED ASSETS 100.45 % 91.01 %
15 OPERATING INCOME TO INTEREST PAID 4.45 times 3.49 times
16 NET SALES TO TOTAL LIABILITIES (**) 0.79 times 0.79 times
LIQUIDITY
17 CURRENT ASSETS TO CURRENT LIABILITIES 4.83 times 3.34 times
18 CURRENT ASSETS LESS INVENTORY TO CURRENT
LIABILITIES 3.80 times 2.52 times
19 CURRENT ASSETS TO TOTAL LIABILITIES 0.65 times 0.62 times
20 AVAILABLE ASSETS TO CURRENT LIABILITIES 250.78 % 142.10 %
CASH FLOW
21 CASH FLOW FROM NET INCOME TO NET SALES 23.73 % 15.81 %
22 CASH FLOW FROM CHANGES IN WORKING CAPITAL
TO NET SALES (4.13) % (1.98) %
23 CASH GENERATED (USED) IN OPERATING TO
INTEREST PAID 3.54 times 2.40 times
24 EXTERNAL FINANCING TO CASH GENERATED (USED)
IN FINANCING 8.31 % 102.65 %
25 INTERNAL FINANCING TO CASH GENERATED (USED)
IN FINANCING 91.69 % (2.65) %
26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
TO CASH GENERATED (USED) IN INVESTMENT
ACTIVITIES 42.62 % 50.37 %
(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
DATA PER SHARE
CONSOLIDATED FINANCIAL STATEMENT
FINAL PRINTING
REF QUARTER OF PRESENT QUARTER OF PREVIOUS
CONCEPTS FINANCIAL YEAR FINANCIAL YEAR
--------------------- ----------------------
D AMOUNT AMOUNT
------------------------------------------------------------------------------------------------------
1 BASIC PROFIT PER ORDINARY SHARE (**) $ .14 $ .30
2 BASIC PROFIT PER PREFERRED SHARE (**) $ .14 $ .31
3 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00
4 CONTINUOUS OPERATING PROFIT PER COMUN
SHARE (**) $ .13 $ .17
5 EFFECT OF DISCONTINUOUS OPERATING ON
CONTINUOUS OPERATING PROFIT PER SHARE (**) $ .00 $ .13
6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON
CONTINUOUS OPERATING PROFIT PER SHARE (**) $ .00 $ .00
7 EFFECT BY CHANGES IN ACCOUNTING POLICIES ON
CONTINUOUS OPERATING PROFIT PER SHARE (**) $ .00 $ .00
8 CARRYING VALUE PER SHARE $ 2.51 $ 2.52
9 CASH DIVIDEND ACUMULATED PER SHARE $ .00 $ .00
10 DIVIDEND IN SHARES PER SHARE .00 shares .00 shares
11 MARKET PRICE TO CARRYING VALUE 2.66 times 1.71 times
12 MARKET PRICE TO BASIC PROFIT PER ORDINARY
SHARE (**) 46.87 times 14.21 times
13 MARKET PRICE TO BASIC PROFIT PER PREFERENT
SHARE (**) 46.57 times 14.09 times
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
FINANCIAL STATEMENT NOTES(1)
CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------------------------
CONSOLIDATED FINANCIAL STATEMENTS - BREAKDOWN OF MAIN CONCEPTS -
S 53 MEXICAN PESOS LIABILITIES. THIS CAPTION INCLUDES, IN THE THIRD QUARTER
OF 2003, LIABILITIES IN FOREIGN CURRENCY (TAXES PAYABLE) FOR AN AMOUNT OF
PS.52,332, WHICH CANNOT BE PRESENTED IN S 52 (FOREIGN CURRENCY LIABILITIES)
SINCE THE SYSTEM DOES NOT ALLOW A RELATED VALIDATION WITH ANNEX 5 (ANALYSIS
OF CREDITS).
------------------------------------------------------------------------------
(1) THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL
STATEMENT AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER
CONCEPTS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
CONSOLIDATED
FINAL PRINTING
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
CAPITAL STOCK
NUMBER OF SHARES (Thousands of Pesos)
-------------------------------------------------------------------------------------------
NOMINAL VALID FIXED VARIABLE
SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE
------------------------------------------------------------------------------------------------------------------------------
A - 4,452,710,141 4,452,710,141 760,914
D - 2,157,208,042 2,157,208,042 368,641
L - 2,157,208,042 2,157,208,042 368,641
TOTAL - 8,767,126,225 - 6,609,918,183 2,157,208,042 1,498,196 -
------------------------------------------------------------------------------------------------------------------------------
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION
8,767,126,225
SHARES PROPORTION BY :
CPO's : THREE SHARES (ONE SERIES A, ONE SERIES D AND ONE SERIES L)
UNITS :
ADRS's :
GDRS's :
ADS's :
GDS's : TWENTY CPO's
REPURCHASED OWN SHARES
NUMBER OF MARKET VALUE OF THE SHARE
SERIES SHARES AT REPURCHASE AT QUARTER
-------------------------------------------------------------------------
A 126,989,072 6.35603 6.71305
D 102,898,054 6.35603 6.71305
L 102,898,054 6.35603 6.71305
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A. CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------
THE SHARES REPRESENTING THE COMPANY'S CAPITAL STOCK CONSISTED OF:
ISSUED 9,099,911,405
REPURCHASED (332,785,180)
-------------
OUTSTANDING 8,767,126,225
=============
THE COMPANY'S SHARES REPURCHASED BY THE GROUP CONSISTED OF:
SHARES REPURCHASED BY GRUPO TELEVISA, S.A. 189,345,300
SHARES ACQUIRED BY TELEVISA COMERCIAL, S.A. DE C.V. 496,750,068
SHARES ACQUIRED BY TELESPECIALIDADES, S.A. DE C.V. 4,773,849
RESALE OF SHARES (30,000)
CANCELATION OF SHARES (343,054,037)
STOCK OPTION PLAN (15,000,000)
------------
332,785,180
============
NOTE: THE AVERAGE REPURCHASE AND THE MARKET VALUE OF THE SHARE
AT QUARTER ARE HISTORICAL.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
GRUPO TELEVISA, S.A.
DECLARATION OF THE REGISTRANT'S OFFICERS, RESPONSIBLE FOR THE INFORMATION.
WE HEREBY DECLARE THAT, TO THE EXTENT OF OUR FUNCTIONS, WE PREPARED THE
INFORMATION RELATED TO THE REGISTRANT WHICH IS INCLUDED IN THIS QUARTERLY
REPORT, AND, BASED ON OUR KNOWLEDGE, THIS INFORMATION FAIRLY PRESENTS THE
REGISTRANT'S CONDITION. WE ALSO DECLARE THAT WE ARE NOT AWARE OF ANY
OMITTED OR UNTRUE STATEMENT OF A MATERIAL FACT IN THIS QUARTERLY REPORT, OR
ANY STATEMENT MADE IN THIS REPORT WHICH INCLUDES MISLEADING INFORMATION.
/s/ Emilio Azcarrage Jean /a/ Alfonso de Angoitia Noriega
------------------------------- ----------------------------------
EMILIO AZCARRAGA JEAN ALFONSO DE ANGOITIA NORIEGA
PRESIDENT AND CHIEF EXECUTIVE EXECUTIVE VICE PRESIDENT
OFFICER AND CHIEF FINANCIAL OFFICER
MEXICO, D.F., OCTOBER 22, 2003
GENERAL DATA OF ISSUER
--------------------------------------------------------------------------------
COMPANY'S NAME: GRUPO TELEVISA, S.A.
ADDRESS: AV. VASCO DE QUIROGA # 2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-20-00
FAX: 5261-24-94
INTERNET ADDRESS: www.televisa.com.mx
TAX DATA OF THE ISSUER
--------------------------------------------------------------------------------
COMPANY TAX CODE: GTE901219GK3
ADDRESS: AV. VASCO DE QUIROGA # 2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
RESPONSIBLE FOR PAYMENT
--------------------------------------------------------------------------------
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
EXECUTIVES DATA
--------------------------------------------------------------------------------
BMV POSITION: CHAIRMAN OF THE BOARD
POSITION: CHAIRMAN OF THE BOARD
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC # 28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: GENERAL DIRECTOR
POSITION: PRESIDENT AND CHIEF EXECUTIVE OFFICER
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC # 28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: FINANCE DIRECTOR
POSITION: EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL
OFFICER
NAME: LIC. ALFONSO DE ANGOITIA NORIEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-52
FAX: 5261-24-54
E-MAIL: aangoitia@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING CORPORATE INFORMATION
THROUGH EMISNET
POSITION: DIRECTOR OF CORPORATE FINANCIAL INFORMATION
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING SHARE REPURCHASE
INFORMATION THROUGH EMISNET
POSITION: VICE PRESIDENT OF CORPORATE FINANCE
NAME: LIC. ALEXANDRE MOREIRA PENNA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 3
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-58
FAX: 5261-25-24
E-MAIL: apenna@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR LEGAL MATTERS
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL OF
GRUPO TELEVISA
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: SECRETARY OF THE BOARD OF DIRECTORS
POSITION: SECRETARY OF THE BOARD OF DIRECTORS
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: PROSECRETARY OF THE BOARD OF DIRECTORS
POSITION: EXTERNAL GENERAL COUNSEL
NAME: LIC. RICARDO MALDONADO YANEZ
ADDRESS: MONTES URALES # 505, PISO 3
NEIGHBORHOOD: LOMAS DE CHAPULTEPEC
ZIP CODE: 11000
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5201-74-47
FAX: 5520-10-65
E-MAIL: rmaldonado@macf.com.mx
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE OF INFORMATION TO INVESTORS
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING INFORMATION THROUGH EMISNET
POSITION: SECRETARY OF THE BOARD OF DIRECTORS
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING RELEVANT EVENTS THROUGH
EMISNET
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
--------------------------------------------------------------------------------
BOARD OF DIRECTORS
--------------------------------------------------------------------------------
POSITION : PRESIDENT(S)
NAME : EMILIO FERNANDO AZCARRAGA JEAN
--------------------------------------------------------------------------------
POSITION : VICE PRESIDENT(S)
NAME : MARIA ASUNCION ARAMBURUZABALA LARREGUI
--------------------------------------------------------------------------------
POSITION : DIRECTOR (S)
NAME : PEDRO ASPE ARMELLA
NAME : JULIO BARBA HURTADO
NAME : JOSE ANTONIO BASTON PATINO
NAME : ANA PATRICIA BOTIN O'SHEA
NAME : MANUEL JORGE CUTILLAS COVANI
NAME : ALFONSO DE ANGOITIA NORIEGA
NAME : CARLOS FERNANDEZ GONZALEZ
NAME : BERNARDO GOMEZ MARTINEZ
NAME : CLAUDIO X. GOZALEZ LAPORTE
NAME : ROBERTO HERNANDEZ RAMIREZ
NAME : ENRIQUE KRAUZE KLEINBORT
NAME : GERMAN LARREA MOTA VELAZCO
NAME : GILBERTO PEREZALONSO CIFUENTES
NAME : ALEJANDRO QUINTERO INIGUEZ
NAME : FERNANDO SENDEROS MESTRE
NAME : ENRIQUE FRANCISCO J. SENIOR HERNANDEZ
NAME : LORENZO H. ZAMBRANO TREVINO
--------------------------------------------------------------------------------
POSITION : ALTERNATE DIRECTOR (S)
NAME : HERBERT ALLEN III
NAME : JUAN PABLO ANDRADE FRICH
NAME : LUCRECIA ARAMBURUZABALA LARREGUI
NAME : FELIX ARAUJO RAMIREZ
NAME : MAXIMILIANO ARTEAGA CARLEBACH
NAME : JOAQUIN BALCARCEL SANTA CRUZ
NAME : JUAN FERNANDO CALVILLO ARMENDARIZ
NAME : RAFAEL CARABIAS PRINCIPE
NAME : FRANCISCO JOSE CHEVEZ ROBELO
NAME : JOSE LUIS FERNANDEZ FERNANDEZ
NAME : SALVI FOLCH VIADERO
NAME : LEOPOLDO GOMEZ GONZALEZ BLANCO
NAME : JOSE ANTONIO LARA DEL OLMO
NAME : JORGE LUTTEROTH ECHEGOYEN
NAME : ALBERTO MONTIEL CASTELLANOS
NAME : RAUL MORALES MEDRANO
NAME : ALEXANDRE MOREIRA PENNA DA SILVA
NAME : GUILLERMO NAVA GOMEZ-TAGLE
--------------------------------------------------------------------------------
POSITION : STATUTORY AUDITOR (S)
NAME : MARIO SALAZAR ERDMANN
--------------------------------------------------------------------------------
POSITION : ALTERNATE STATUTORY AUDITOR (S)
NAME : JOSE MIGUEL ARRIETA MENDEZ
--------------------------------------------------------------------------------
POSITION : SECRETARY (IES) OF THE BOARD
NAME : JUAN SEBASTIAN MIJARES ORTEGA
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
ANNEX 1
CONSOLIDATED
FINAL PRINTING
-------------------------------------------------------------------------------
MEXICO CITY, D.F., OCTOBER 22, 2003 -- GRUPO TELEVISA, S.A. (NYSE:TV; BMV:
TLEVISA CPO) TODAY ANNOUNCED RESULTS FOR THE THIRD QUARTER OF 2003. THE
RESULTS, 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.
NET SALES
NET SALES INCREASED 3.3% TO PS.5,626.1 MILLION IN THE THIRD QUARTER OF 2003
FROM PS.5,444.0 MILLION IN THE THIRD QUARTER OF 2002.
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
EBITDA IS DEFINED AS OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION.
EBITDA INCREASED 15.9% TO PS.1,832.8 MILLION FROM PS.1,581.3 MILLION
REPORTED IN THE SAME PERIOD OF 2002, 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% FROM
29.0% IN THE SAME PERIOD OF 2002, 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% TO PS.1,436.1 MILLION IN THE THIRD QUARTER OF 2003 FROM PS.1,203.9
MILLION REPORTED IN THE SAME PERIOD OF 2002, REFLECTING HIGHER SALES AND
REDUCTIONS OF 1.9% IN COST OF SALES AND 1.4% IN OPERATING EXPENSES.
THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS OF PS.396.7
MILLION AND PS.377.4 MILLION IN THE THIRD QUARTER OF 2003 AND 2002,
RESPECTIVELY.
NET INCOME
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
TELEVISION BROADCASTING
THE 5.7% SALES INCREASE IN THE TELEVISION BROADCASTING SEGMENT (PS.3,687.6
MILLION AND PS.3,488.3 MILLION FOR THE THIRD QUARTER OF 2003 AND 2002,
RESPECTIVELY), 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 IN THE THIRD QUARTER OF 2003 FROM
PS.1,396.2 MILLION REPORTED IN THE SAME PERIOD OF 2002. 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% (PS.1,345.9 MILLION AND PS.1,151.5 MILLION FOR THE THIRD
QUARTER OF 2003 AND 2002, RESPECTIVELY), DUE TO A 1.6% REDUCTION IN
DEPRECIATION AND AMORTIZATION COSTS.
PROGRAMMING FOR PAY TELEVISION
THE 11.2% INCREASE IN SALES FOR PROGRAMMING FOR PAY TELEVISION (PS.174.9
MILLION AND PS.157.3 MILLION FOR THE THIRD QUARTER OF 2003 AND 2002,
RESPECTIVELY), RESULTED FROM BOTH HIGHER REVENUES FROM SIGNALS SOLD TO PAY
TELEVISION SYSTEMS IN MEXICO AND HIGHER ADVERTISING SALES IN MEXICO.
OPERATING INCOME CLIMBED 72.5% (PS.40.7 MILLION AND PS.23.6 MILLION FOR THE
THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), 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 LICENSING
THE THIRD QUARTER'S 6.4% INCREASE IN PROGRAMMING LICENSING SALES (PS.394.6
MILLION AND PS.371.0 MILLION FOR THE THIRD QUARTER OF 2003 AND 2002,
RESPECTIVELY), 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% (PS.124.7 MILLION AND PS.67.7 MILLION FOR THE
THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), 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% (PS.444.1 MILLION AND PS.428.1 MILLION FOR
THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), 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% (PS.79.7 MILLION AND PS.60.8
MILLION FOR THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), 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 DISTRIBUTION
THE 19.8% INCREASE IN PUBLISHING DISTRIBUTION SALES (PS.448.8 MILLION AND
PS.374.5 MILLION FOR THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), WAS
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 IN THE THIRD QUARTER OF 2003 TO AN OPERATING INCOME OF
PS.4.6 MILLION REPORTED IN THE SAME PERIOD OF 2002; DUE TO HIGHER COST OF
SALES AND OPERATING EXPENSES, RELATED TO AN INCREASE IN DOUBTFUL TRADE
ACCOUNTS, PARTIALLY OFFSET BY HIGHER SALES.
CABLE TELEVISION
CABLE TELEVISION SALES DECREASED 14.0% (PS.236.5 MILLION AND PS.275.1
MILLION FOR THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), DUE TO A
DECREASE IN 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% (PS.26.8 MILLION AND PS.52.0 MILLION FOR
THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), 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 (PS.56.4 MILLION
AND PS.34.3 MILLION FOR THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY),
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 BUSINESSES
THE 28.6% DECREASE IN OTHER BUSINESSES SALES (PS.258.9 MILLION AND PS.362.8
MILLION FOR THE THIRD QUARTER OF 2003 AND 2002, RESPECTIVELY), WAS
PRIMARILY 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.
INTERSEGMENT SALES
INTERSEGMENT SALES FOR THE THIRD QUARTER OF 2003 AND 2002, AMOUNTED TO
PS.75.7 MILLION AND PS.47.4 MILLION, RESPECTIVELY.
CORPORATE EXPENSES
CORPORATE EXPENSES FOR THE THIRD QUARTER OF 2003 AND 2002, AMOUNTED TO
PS.35.1 MILLION AND PS.33.5 MILLION, RESPECTIVELY.
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:
- 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.
- 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.
- 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%.
- 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.
- 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.
- STANDARD & POOR'S AND MOODY'S UPGRADED INNOVA FROM B-/B3 (STABLE/STABLE)
TO B+/B2 (POSITIVE/STABLE).
- SHAREHOLDER LOANS OF APPROXIMATELY U.S.$310 MILLION PLUS ACCRUED INTEREST
OF APPROXIMATELY U.S.$81 MILLION WERE CAPITALIZED.
- 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.
INTEGRAL COST OF FINANCING
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 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.
FINANCIAL STATEMENT NOTES (1)
ANNEX 2
-------------------------------------------------------------------------------
GRUPO TELEVISA, S.A.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS
OF JUNE 30, 2003, EXCEPT PER SHARE, PER CPO AND PER UDI VALUES)
1. ACCOUNTING POLICIES:
THE CONDENSED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A. (THE
"COMPANY") AND ITS CONSOLIDATED SUBSIDIARIES (COLLECTIVELLY, THE "GROUP"),
AS OF JUNE 30, 2003 AND 2002, AND FOR THE SIX MONTHS ENDED ON THOSE DATES,
ARE UNAUDITED. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS (CONSISTING
PRINCIPALLY OF NORMAL RECURRING ADJUSTMENTS) NECESSARY FOR A FAIR
PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN
INCLUDED THEREIN.
FOR PURPOSES OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS,
CERTAIN INFORMATION AND DISCLOSURES, NORMALLY INCLUDED IN FINANCIAL
STATEMENTS PREPARED IN ACCORDANCE WITH MEXICAN GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ("MEXICAN GAAP"), HAVE BEEN CONDENSED OR OMITTED.
THESE CONDENSED CONSOLIDATED STATEMENTS SHOULD BE READ IN CONJUNCTION WITH
THE GROUP'S CONSOLIDATED AND AUDITED FINANCIAL STATEMENTS AND NOTES THERETO
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001, WHICH INCLUDE, AMONG OTHER
DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE
BEEN APPLIED ON A CONSISTENT BASIS FOR THE SIX-MONTH PERIOD ENDED JUNE 30,
2003.
2. PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT AS OF JUNE 30, CONSISTED OF:
2003 2002
------------------ ----------------
BUILDINGS Ps. 6,610,644 Ps. 6,652,421
BUILDINGS IMPROVEMENTS 1,588,980 1,631,930
TECHNICAL EQUIPMENT 9,997,332 9,561,293
FURNITURE AND FIXTURES 536,459 529,177
TRANSPORTATION EQUIPMENT 986,263 493,590
COMPUTER EQUIPMENT 793,721 708,094
------------------ ----------------
20,513,399 19,576,505
ACCUMULATED DEPRECIATION (9,886,699) (8,831,735)
------------------ ----------------
10,626,700 10,744,770
3,447,426 3,516,504
LAND 1,255,041 1,164,624
CONSTRUCTION IN PROGRESS ------------------ ----------------
Ps. 15,329,167 Ps. 15,425,898
================== ================
DEPRECIATION CHARGED TO INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2003
AND 2002, WAS PS.549,809 AND PS.513,537, RESPECTIVELY.
3. LONG-TERM DEBT SECURITIES:
AS OF JUNE 30, THE COMPANY'S LONG-TERM DEBT SECURITIES OUTSTANDING
WERE AS FOLLOWS:
2003 2002
------------------------------ ------------------------------
U.S. DOLLAR U.S. DOLLAR
PRINCIPAL PRINCIPAL
AMOUNTS MEXICAN AMOUNTS MEXICAN
(THOUSANDS) PESOS (THOUSANDS) PESOS
------------ --------------- -------------- ---------------
11.375% SERIES "A" SENIOR NOTES DUE
2003 (SEE NOTE 13) $ - Ps. - $ 68,847 Ps. 714,668
11.875% SERIES "B" SENIOR NOTES DUE
2006 (A) 5,343 55,770 5,343 55,463
8.625% SENIOR NOTES DUE 2005 (B) 200,000 2,087,600 200,000 2,076,105
8.000% SENIOR NOTES DUE 2011 (C) 300,000 3,131,400 300,000 3,114,158
8.500% SENIOR NOTES DUE 2032 (D) 300,000 3,131,400 300,000 3,114,158
----------- ---------------- ------------- ---------------
$ 805,343 8,406,170 $ 874,190 9,074,552
============ =============
UDI-DENOMINATED NOTES DUE 2007 (E) 3,553,201 3,543,124
---------------- ----------------
Ps. 11,959,371 Ps. 12,617,676
================ ================
(A) INTEREST ON THE SERIES "B" SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS
PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 12.49% PER
ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNSECURED,
UNSUBORDINATED OBLIGATIONS OF THE COMPANY, RANK PARI PASSU IN RIGHT OF
PAYMENT WITH ALL EXISTING AND FUTURE UNSECURED, UNSUBORDINATED
OBLIGATIONS OF THE COMPANY, AND ARE SENIOR IN RIGHT OF PAYMENT TO ALL
FUTURE SUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE EFFECTIVELY
SUBORDINATED TO ALL EXISTING AND FUTURE LIABILITIES OF THE COMPANY'S
SUBSIDIARIES.
(B) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.07% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(C) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.41% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(D) IN MARCH 2002, THE COMPANY ISSUED U.S.$300 MILLION 30-YEAR SENIOR
NOTES WITH A COUPON RATE OF 8.5%. THE SENIOR NOTES WERE PRICED AT
99.431% FOR A YIELD TO MATURITY OF 8.553%. A PORTION OF THE NET
PROCEEDS OF THIS OFFERING WERE USED TO REPAY ALL OF THE AMOUNTS THEN
OUTSTANDING UNDER A U.S.$276 MILLION BRIDGE LOAN FACILITY WITH AN
ORIGINAL MATURITY IN DECEMBER 2002. INTEREST ON THESE SENIOR NOTES,
INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN
WITHHOLDING TAXES, IS 8.94% PER ANNUM, AND IS PAYABLE SEMI-ANNUALLY.
(E) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION"
OR "UDIS") FOR A NOMINAL AMOUNT OF PS.3,000,000, REPRESENTING
1,086,007,800 UDIS, WITH AN ANNUAL INTEREST RATE OF 8.15% AND MATURITY
IN 2007. INTEREST ON THESE NOTES IS PAYABLE SEMI-ANNUALLY. THE BALANCE
AS OF JUNE 30, 2003 AND 2002 INCLUDES RESTAMENT OF PS.553,201 AND
PS.414,889, RESPECTIVELY. THE UDI VALUE AS OF JUNE 30, 2003, WAS OF
PS. 3.271800 PER ONE UDI.
THE SENIOR NOTES DUE IN 2005, 2006, 2011 AND 2032 MAY NOT BE REDEEMED
PRIOR TO MATURITY, EXCEPT IN THE EVENT OF CERTAIN CHANGES IN LAW AFFECTING
THE MEXICAN WITHHOLDING TAX TREATMENT OF CERTAIN PAYMENTS ON THE
SECURITIES, IN WHICH CASE THE SECURITIES WILL BE REDEEMABLE, AS A WHOLE BUT
NOT IN PART, AT THE OPTION OF THE COMPANY.
THE SENIOR NOTES DUE IN 2005, 2011 AND 2032 ARE UNSECURED OBLIGATIONS
OF THE COMPANY, RANK EQUALLY IN RIGHT OF PAYMENT WITH ALL EXISTING AND
FUTURE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE
JUNIOR IN RIGHT OF PAYMENT TO ALL OF THE EXISTING AND FUTURE LIABILITIES OF
THE COMPANY'S SUBSIDIARIES.
THE AGREEMENT OF THE SENIOR NOTES DUE 2005, 2011 AND 2032 CONTAINS
CERTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND ITS RESTRICTED
SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PROGRAMMING FOR PAY
TELEVISION AND PROGRAMMING LICENSING, TO INCUR OR ASSUME LIENS, PERFORM
SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS,
CONSOLIDATIONS AND SIMILAR TRANSACTIONS. SUBSTANTALLY ALL OF THE SENIOR
NOTES DUE 2005, 2011 AND 2032 ARE REGISTERED WITH THE U.S. SECURITIES AND
EXCHANGE COMMISSION.
EFFECTIVE MARCH 1, 2002, THE GROUP DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF ITS U.S.$300 MILLION SENIOR NOTES DUE IN
2011 AND ITS U.S.$300 MILLION SENIOR NOTES DUE IN 2032. CONSEQUENTLY,
BEGINNING MARCH 2002, ANY FOREIGN EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO
THIS U.S. DOLLAR LONG-TERM DEBT, BEING HEDGED BY THE GROUP'S NET INVESTMENT
IN UNIVISION, IS CREDITED OR CHARGED DIRECTLY TO EQUITY (OTHER
COMPREHENSIVE INCOME OR LOSS ) (SEE NOTE 7).
4. CONTINGENCIES:
PAYMENTS TO BE MADE BY CERTAIN MEXICAN COMPANIES IN THE GROUP TO
EMPLOYEES IN CASE OF DISMISSAL AND UNDER CERTAIN CIRCUMSTANCES PROVIDED BY
THE MEXICAN LABOR LAW ARE EXPENSED AS INCURRED.
IN CONJUNCTION WITH THE GROUP'S DISPOSAL OF ITS FORMER MUSIC RECORDING
BUSINESS IN 2002, THE GROUP MAY HAVE TO PAY CERTAIN ADJUSTMENTS TO
UNIVISION IN CONNECTION WITH AN AUDIT OF THE MUSIC RECORDING BUSINESS BY
UNIVISION, WHICH IS EXPECTED TO BE RESOLVED BY THE PARTIES IN 2003. WHILE
THE GROUP'S MANAGEMENT BELIEVES THAT THE OUTCOME OF THIS AUDIT WILL NOT
HAVE A MATERIAL ADVERSE EFFECT ON ITS FINANCIAL POSITION OR FUTURE
OPERATING RESULTS, NO ASSSURANCE CAN BE GIVEN IN THIS REGARD.
IN JUNE 2003, THE COMPANY WAS NOTIFIED BY THE MEXICAN TAX AUTHORITY OF
A FEDERAL TAX CLAIM MADE AGAINST THE COMPANY FOR APPROXIMATELY PS.302,000
PLUS PENALTIES AND SURCHARGES (A GROSS AMOUNT OF APPROXIMATELY PS.960,700).
THE CLAIM, WHICH RELATES TO AN ALLEGED ASSETS TAX LIABILITY FOR THE YEAR
ENDED DECEMBER 31, 1994, WAS ORIGINALLY BROUGHT BY THE MEXICAN TAX
AUTHORITY IN 1999, BUT WAS DISMISSED IN 2002 ON PROCEDURAL GROUNDS. THE
COMPANY BELIEVES THAT THIS CLAIM IS WITHOUT MERIT, AND INTENDS TO
VIGOROUSLY DEFEND THIS CLAIM, ALTHOUGH NO ASSURANCES CAN BE GIVEN AS TO THE
OUTCOME OF THIS DISPUTE.
THERE ARE VARIOUS LEGAL ACTIONS AND OTHER CLAIMS PENDING AGAINST THE
GROUP INCIDENTAL TO ITS BUSINESSES AND OPERATIONS. IN THE OPINION OF THE
GROUP'S MANAGEMENT, NONE OF THESE PROCEEDINGS WILL HAVE A MATERIAL ADVERSE
EFFECT ON THE GROUP'S FINANCIAL POSITION OR RESULTS OF OPERATIONS.
5. STOCKHOLDERS' EQUITY:
THE MAJORITY STOCKHOLDERS' EQUITY AS OF JUNE 30, IS ANALYZED AS
FOLLOWS:
2003 2002
----------------------------- ---------------------------
NOMINAL RESTATED NOMINAL RESTATED
PESOS PESOS PESOS PESOS
------------- -------------- -------------- -----------
CAPITAL STOCK Ps. 1,501,045 Ps. 7,414,046 Ps. 1,513,427 Ps. 7,467,308
------------- -------------
ADDITIONAL PAID-IN CAPITAL 187,824 219,158 187,428 218,750
------------- --------------
LEGAL RESERVE 621,921 1,236,170 585,029 1,198,818
------------- --------------
RESERVE FOR REPURCHASE OF SHARES 2,451,331 5,340,797 2,695,761 5,585,689
------------- --------------
UNAPPROPRIATED EARNINGS 6,220,481 11,163,562 6,094,422 10,638,189
------------- --------------
CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (2,675,513) (2,197,681) (2,675,513)
------------- --------------
NET INCOME FOR THE PERIOD -- 1,515,190 1,253,533 1,307,115
------------- --------------
DEFICIT FROM RESTATEMENT -- (3,099,622) -- (2,495,715)
------------- -------------- -------------- -------------
TOTAL MAJORITY STOCKHOLDERS' EQUITY Ps. 21,113,788 Ps.21,244,641
============== =============
IN SEPTEMBER 2002, IN CONNECTION WITH THE APPROVAL OF THE COMPANY'S
SHAREHOLDERS TO ISSUE ADDITIONAL SERIES "A" SHARES IN AN AGGREGATE AMOUNT
OF UP TO 4.5% OF THE COMPANY'S OUTSTANDING CAPITAL STOCK (430,350,671
SERIES "A" SHARES) ON APRIL 30, 2002, AND IN CONJUNCTION WITH PREEMPTIVE
RIGHTS EXERCISED BY CERTAIN EXISTING HOLDERS OF SERIES "A" SHARES, THE
COMPANY INCREASED ITS CAPITAL STOCK IN THE AMOUNT OF PS.415 BY ISSUING
ADDITIONAL 43,117 SERIES "A" SHARES (NOT IN THE FORM OF CPOS), OF WHICH
PS.408 WERE RECOGNIZED AS ADDITIONAL PAID-IN CAPITAL. FOLLOWING THIS
CAPITAL STOCK INCREASE, A REMAINING OF 430,307,554 UNISSUED AUTHORIZED
SERIES "A" MAY BE USED BY THE COMPANY FOR ONE OR TWO SPECIAL PURPOSE
TRUSTS.
ON APRIL 30, 2003, THE COMPANY'S STOCKHOLDERS APPROVED (I) A PAYMENT
OF DIVIDENDS FOR AN AMOUNT OF PS.550,000, WHICH ARE PAYABLE BEGINNING JUNE
30, 2003 AS FOLLOWS: A DIVIDEND OF PS.0.18936540977 PER CPO AND A DIVIDEND
OF PS.0.05260150265 PER SERIES "A" SHARE (NOT IN THE FORM OF A CPO UNIT);
AND (II) THE CANCELLATION OF 33,131,712 SHARES OF CAPITAL STOCK IN THE FORM
OF 11,043,904 CPOS, WHICH WERE PART OF THE REPURCHASES OF SHARES MADE BY
THE COMPANY IN 2000 AND 2003.
AS OF JUNE 30, 2003 AND 2002, CAPITAL STOCK IS NET OF SHARES
REPURCHASED OF PS.556,399 (NOMINAL PS.83,085) AND PS.495,205 (NOMINAL
PS.70,703), RESPECTIVELY.
AT JUNE 30, 2003, THE COMPANY'S NUMBER OF SHARES OF CAPITAL STOCK
AUTHORIZED, ISSUED, REPURCHASED AND OUTSTANDING CONSISTED OF:
SHARES AUTHORIZED ISSUED REPURCHASED (*) OUTSTANDING
------------------------------------------ ------------------ -------------------- ------------------
SERIES "A" 5,010,006,767 4,579,699,213 121,429,672 4,458,269,541
SERIES "L" 2,260,106,096 2,260,106,096 97,338,654 2,162,767,442
SERIES "D" 2,260,106,096 2,260,106,096 97,338,654 2,162,767,442
-------------------- ------------------ -------------------- ------------------
9,530,218,959 9,099,911,405 316,106,980 8,783,804,425
==================== ================== ==================== ==================
(*) SHARES REPURCHASED INCLUDE 265,329,162 SHARES IN THE FORM OF 88,443,054
CPOS AND ADDITIONAL 24,091,018 SERIES "A" SHARES (NOT IN THE FORM OF CPOS)
THAT ARE BENEFICIALLY OWNED BY TWO OF THE COMPANY'S WHOLLY-OWNED
SUBSIDIARIES (SEE NOTE 14).
6. REPURCHASE OF SHARES:
AS OF JUNE 30, 2003, THE COMPANY'S STOCKHOLDERS HAD APPROVED
APPROPRIATING FROM RETAINED EARNINGS A RESERVE AMOUNTING TO PS.6,442,755,
FOR THE REPURCHASE OF SHARES AT THE DISCRETION OF MANAGEMENT. THE RESERVE
FOR REPURCHASE OF SHARES WAS USED IN 1999, 2000 AND THE SIX MONTHS ENDED
JUNE 30, 2003 IN CONNECTION WITH REPURCHASE OF SHARES IN THOSE PERIODS.
IN ACCORDANCE WITH THE MEXICAN SECURITIES LAW, ANY AMOUNT OF SHARES
REPURCHASED AND HELD BY THE COMPANY ARE RECOGNIZED AS A CHARGE TO
STOCKHOLDERS' EQUITY, AND ANY CANCELLATION OF SHARES REPURCHASED ARE
RECOGNIZED BY REDUCING THE COMPANY'S CAPITAL STOCK ISSUED FOR AN AMOUNT
PROPORTIONATE TO THE SHARES CANCELLED.
DURING THE SIX MONTHS ENDED JUNE 30, 2003, THE COMPANY REPURCHASED
SHARES FOR THE AMOUNT OF PS.295,380, OF WHICH PS.244,891 WERE CHARGED TO
THE RESERVE FOR REPURCHASE OF SHARES.
THE 316,106,980 SHARES REPURCHASED AND HELD BY THE GROUP AS OF JUNE
30, 2003, ARE REFLECTED AS A CHARGE TO THE STOCKHOLDERS' EQUITY, AS
FOLLOWS:
SHARES
SHARES REPURCHASED BY SHARES
REPURCHASED BY TWO COMPANY'S REPURCHASED BY
STOCKHOLDERS' EQUITY THE COMPANY SUBSIDIARIES THE GROUP
------------------------------------------------------------ ------------------ ----------------
CAPITAL STOCK Ps. 105,115 Ps. 161,702 Ps. 266,817
RESERVE FOR REPURCHASE OF SHARES 1,101,958 -- 1,101,958
UNAPPROPRIATED EARNINGS -- 1,947,575 1,947,575
--------------- ------------------ ----------------
TOTAL Ps. 1,207,073 Ps. 2,109,277 Ps. 3,316,350
================ ================== =================
IN SEPTEMBER 2002, THE COMPANY ANNOUNCED A SHARE REPURCHASE PROGRAM OF
UP TO U.S.$400 MIILION (PS.4,175,200) OVER THE NEXT THREE YEARS. THE
COMPANY STARTED REPURCHASING SHARES IN 2003 UNDER THIS REPURCHASE PROGRAM,
AND FROM JANUARY 1, THROUGH JUNE 30, 2003, THE COMPANY REPURCHASED
59,816,100 SHARES IN THE FORM OF 19,938,700 CPOS FOR PS.295,380, OF WHICH
26,686,800 SHARES IN THE FORM OF 8,895,600 CPOS WERE HELD IN TREASURY AS OF
JUNE 30, 2003 (SEE NOTE 5).
7. INTEGRAL COST OF FINANCING:
INTEGRAL COST OF FINANCING FOR THE SIX MONTHS ENDED JUNE 30, CONSISTED
OF:
2003 2002
--------------- --------------
INTEREST EXPENSE (1) Ps. 650,882 Ps. 659,625
INTEREST INCOME (354,864) (322,477)
FOREIGN EXCHANGE GAIN, NET (2) 7,639 (98,851)
LOSS FROM MONETARY POSITION (3) 49,895 138,441
-------------- --------------
Ps. 353,552 Ps. 376,738
=============== ==============
(1) INCLUDES RESTATEMENT OF UDIS OF PS.50,075 AND PS.84,112 IN 2003 AND
2002, RESPECTIVELY.
(2) NET OF THE LOSS OF PS.12,071 IN 2003 AND THE GAIN OF PS.494,196 IN
2002 RESULTING FROM THE FOREIGN EXCHANGE RESULT ATTRIBUTABLE TO
CERTAIN LONG-TERM DEBT SECURITIES WHICH ARE HEDGED BY THE GROUP'S NET
INVESTMENT IN UNIVISION.
(3) THE GAIN OR LOSS FROM MONETARY POSITION REPRESENTS THE EFFECTS OF
INFLATION, AS MEASURED BY THE NPCI IN THE CASE OF MEXICAN COMPANIES,
OR THE GENERAL INFLATION INDEX OF EACH COUNTRY IN THE CASE OF FOREING
SUBSIDIARIES, ON THE MONETARY ASSETS AND LIABILITIES AT THE BEGINNING
OF EACH MONTH. INCLUDES MONETARY LOSS IN 2003 AND 2002 OF PS.50,423
AND PS.90,530, RESPECTIVELY, ARISING FROM TEMPORARY DEFFERENCES OF
NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX.
8. DEFERRED TAXES:
THE DEFERRED INCOME TAX LIABILITY AS OF JUNE 30, WAS DERIVED FROM:
2003 2002
-------------- ----------------
ASSETS:
ACCRUED LIABILITIES Ps. 587,023 Ps. 500,330
834,182 185,921
GOODWILL 1,124,635 605,946
TAX LOSS CARRYFORWARDS 254,835 63,596
ALLOWANCE FOR DOUBTFUL ACCOUNTS 1,188,460 856,742
CUSTOMER ADVANCES - 366
OTHER ITEMS --------------- ---------------
3,989,135 2,212,901
--------------- ---------------
LIABILITIES:
(1,815,523) (1,908,750)
INVENTORIES (976,329) (916,808)
PROPERTY, PLANT AND EQUIPMENT - NET (382,987) (125,282)
OTHER ITEMS (1,332,830) (1,095,058)
INNOVA --------------- ---------------
(4,507,669) (4,045,898)
--------------- ---------------
(518,534) (1,832,997)
DEFERRED-INCOME TAX OF MEXICAN COMPANIES (360,717) 183,507
DEFERRED TAX OF FOREIGN SUBSIDIARIES 1,564,384 1,387,281
ASSETS TAX (1,987,836) (1,089,958)
VALUATION ALLOWANCE --------------- ---------------
(1,302,703) (1,352,167)
DEFERRED INCOME TAX LIABILITY - 549,219
DEFERRED TAX ASSETS OF DISCONTINUED OPERATIONS 268,978 -
EFFECT ON CHANGE OF INCOME TAX RATES --------------- ----------------
Ps (1,033,725) Ps. (1,901,386)
DEFERRED TAX LIABILITY OF CONTINUING OPERATIONS =============== ================
9. EXTRAORDINARY ITEMS:
NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE
30, 2003 AND 2002.
10. DISCONTINUED OPERATIONS:
IN DECEMBER 2001, IN CONNECTION WITH A SERIES OF TRANSACTIONS THE
GROUP REACHED AN AGREEMENT WITH UNIVISION TO SELL ITS MUSIC RECORDING
BUSINESS IN THE UNITED STATES AND LATIN AMERICA, WHICH SALE WAS CONSUMMATED
IN APRIL 2002. ACCORDINGLY, THE RESULTS OF OPERATIONS OF THE MUSIC
RECORDING BUSINESS ARE REPORTED AS DISCONTINUED OPERATIONS FOR 2002.
DISCONTINUED OPERATIONS OF THE MUSIC RECORDING SEGMENT FOR THE SIX
MONTHS ENDED JUNE 30, 2002, ARE PRESENTED AS FOLLOWS:
2002
----------------
LOSS FROM MUSIC RECORDING OPERATIONS FOR THE SIX MONTHS
ENDED JUNE 30, 2002 Ps. (36,613)
GAIN ON DISPOSAL OF MUSIC RECORDING OPERATIONS, NET OF INCOME
TAXES OF Ps.518,666. Ps. 1,139,848
-----------------
Ps. 1,103,235
=================
SUMMARIZED INFORMATION ON RESULTS OF THE DISCONTINUED MUSIC RECORDING
OPERATIONS FOR THE PERIOD FROM JANUARY 1, THROUGH JUNE 30, 2002, IS AS
FOLLOWS:
2002
-----------------
NET SALES Ps. 187,232
COST OF SALES 141,189
OPERATING EXPENSES 38,835
DEPRECIATION AND AMORTIZATION 788
OPERATING INCOME 6,420
INCOME BEFORE INCOME TAX (25,857)
INCOME TAXES 10,756
NET LOSS FROM DISCONINUED OPERATIONS (36,613)
NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE SIX MONTHS ENDED JUNE
30, 2003.
11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES:
NO CUMULATIVE EFFECT OF ACCOUNTING CHANGE WAS RECOGNIZED IN INCOME FOR
THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002.
12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED):
THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED JUNE 30, 2003,
ARE AS FOLLOWS:
INDEX AT END
QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER
-------------------- ----------------- -------------- -------------- --------------- ---------------
3(degree)/ 02 Ps. 1,647,761 Ps. 378,258 101.190 Ps. 1,696,579 Ps. 389,465
4(degree)/ 02 737,836 (937,835) 102.904 747,042 (949,536)
1(degree)/ 03 250,079 250,079 104.261 249,904 249,904
2(degree)/ 03 1,515,190 1,265,286 104.188 1,515,190 1,265,286
(1) AS REPORTED IN EACH QUARTER.
13. REFINANCING
ON MAY 7, 2003 THE COMPANY ENTERED INTO A LONG-TERM CREDIT AGGREEMENT
WITH A MEXICAN BANK FOR AN AGGREGATE AMOUNT OF PS.800,000, WITH TWO
TRANCHES OF PS.400,000 EACH. THE ANNUAL INTEREST RATE FOR THE FIRST TRANCHE
EQUALS 9.35% PLUS ADDITIONAL BASIS POINTS FROM 0 TO 45 BASED ON THE
MAINTENANCE OF CERTAIN FINANCIAL COVERAGE RATIOS RELATED TO INDEBTEDNESS
(THE "ADDITIONAL BASIS POINTS"), AND AN ANNUAL INTEREST RATE FOR THE SECOND
TRANCHE EQUAL TO THE MEXICAN INTERBANK RATE PLUS 40 BASIS POINTS PLUS
ADDITIONAL BASIS POINTS. INTEREST DUE IN CONNECTION WITH THIS CREDIT
AGREEMENT IS PAYABLE ON A 28-DAY BASIS. THIS INDEBTEDNESS HAS TWO
SEMIANNUAL MATURITIES OF PS.40,000 EACH IN 2004, TWO SEMIANNUAL MATURITIES
OF PS.120,000 EACH IN 2006 AND TWO QUARTELY MATURITIES OF PS.240,000 EACH
IN 2008. THE NET PROCEEDS OF THIS CREDIT AGREEMENT WERE PRIMARILY USED TO
PAY AMOUNTS OUTSTANDING UNDER THE SERIES "A" SENIOR NOTES WHICH MATURED ON
MAY 15, 2003. UNDER THE TERMS OF THIS CREDIT AGREEMENT, THE COMPANY AND ITS
RESTRICTED SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PROGRAMMING FOR
PAY TELEVISION AND PROGRAMMING LICENSING ARE REQUIRED TO MAINTAIN CERTAIN
FINANCIAL COVERAGE RATIOS AND ARE SUBJECT TO CERTAIN RESTRICTIVE COVENANTS
SIMILAR TO THE RATIOS AND COVENANTS OF THE U.S.$100 MILLION SYNDICATED TERM
LOAN. THIS CREDIT AGREEMENT WAS SUBSEQUENTLY AMENDED TO REFLECT A FIXED
ANNUAL INTEREST RATE OF 8.50% PLUS ADDITIONAL BASIS POINTS FOR THE SECOND
TRANCHE BEGINNING IN THE THIRD QUARTER OF 2003.
14. ACQUISITION OF TELESPECIALIDADES AND PARTIAL DISPOSAL OF VIA DIGITAL
IN JUNE 2003, THE COMPANY SUBSTANTIALLY COMPLETED THE ACQUISITION OF
ALL THE OUTSTANDING EQUITY OF TELESPECIALIDADES, S.A. DE C.V.
("TELESPECIALIDADES"), A COMPANY WHICH WAS OWNED BY ALL OF THE SHAREHOLDERS
OF GRUPO TELEVICENTRO, S.A. DE C.V. ("TELEVICENTRO"), THE GROUP'S
CONTROLLING COMPANY. THE TOTAL CONSIDERATION TO BE PAID IN THE THIRD
QUARTER OF 2003 IN CONNECTION WITH THIS ACQUISITION WILL BE APPROXIMATELY
U.S.$83 MILLION (PS.871,500), WHICH WILL BE FINANCED WITH CASH ON HAND. AT
THE TIME OF THE ACQUISITION, TELESPECIALIDADES'S NET ASSETS CONSISTED
PRINCIPALLY OF 4,773,849 SHARES OF THE COMPANY'S CAPITAL STOCK IN THE FORM
OF 1,591,283 CPOS, WHICH SECURITIES WERE PREVIOUSLY OWNED BY TELEVICENTRO,
AND TAX LOSS CARRYFORWARDS FOR APPROXIMATELY PS.6,457,000. THE TERMS OF
THIS ACQUISITION WERE APPROVED BY THE COMPANY'S BOARD OF DIRECTORS AND
AUDIT COMMITTEE. BEGINNING JUNE 30, 2003, THE GROUP RECOGNIZED THE
ACQUISITION OF SHARES OF THE COMPANY IN CONNECTION WITH THE
TELESPECIALIDADES ACQUISITION AS A SHARE REPURCHASE.
IN APRIL 2003, THE GROUP SOLD A PORTION OF ITS MINORITY INTEREST IN
THE CAPITAL STOCK OF DTS DISTRIBUIDORA DE TELEVISION DIGITAL, S.A. ("VIA
DIGITAL"), A DTH VENTURE IN SPAIN. FOR AN AGGREGATE AMOUNT OF APPROXIMATELY
27.5 MILLION EUROS (PS.338,812) IN CASH. THE GROUP RECOGNIZED A PRE-TAX
GAIN OF SUCH AMOUNT ON THIS SALE, WHICH REPRESENTED THE EXCESS OF THE CASH
PROCEEDS OVER THE CARRYING VALUE OF THE RELATED NET INVESTMENT IN VIA
DIGITAL AT THE TRANSACTION DATE. A PORTION OF THE NET PROCEEDS FROM THIS
DIVESTITURE WERE USED TO PREPAY ALL OF THE AMOUNTS THEN OUTSTANDING UNDER A
LONG-TERM LOAN FOR APPROXIMATELY 23.6 MILLION EUROS WITH AN ORIGINAL
MATURITY IN JUNE 2003
- - - - - - - - -
RELATION OF SHARES INVESTMENTS
ANNEX 3 CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------
% TOTAL AMOUNT
NUMBER OWNERSHIP (Thousands of Pesos)
COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION PRESENT
COST VALUE (3)
------------------------------------------------------------------------------------------------------------------------------------
SUBSIDIARIES
1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND 19,509,544 100.00 1,836,819 1,820,193
S.A. DE C.V. DEVELOPMENT OF
COMPANIES
2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND 10,175,900 100.00 1,319,247 517,126
DEVELOPMENT OF
COMPANIES
3 DTH EUROPA, S.A. PROMOTION AND 465,711 79.95 264,460 (622,186)
DEVELOPMENT OF
COMPANIES
4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND 440,289,567 100.00 1,674,850 1,631,566
DEVELOPMENT OF
COMPANIES
5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND 1,037,498 100.00 823,582 1,576,451
DEVELOPMENT OF
COMPANIES
6 FACTUM MAS, S.A. DE C.V. PROMOTION AND 2,710,159,002 100.00 2,024,185 (3,169,997)
DEVELOPMENT OF
COMPANIES
7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS 349,470,905 100.00 822,778 726,321
S.A. DE C.V. AND MAGAZINES
8 GRUPO RADIOPOLIS, S.A. DE C.V. PROMOTION AND 418,881,301 100.00 342,274 3,104,035
DEVELOPMENT OF
COMPANIES
9 PROMO-INDUSTRIAS PROMOTION AND 515,523 100.00 102 60,538
METROPOLITANAS, S.A. DE C.V. DEVELOPMENT OF
COMPANIES
10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF 76,070,313 50.00 764,739 201,901
RADIO PROGRAMMING
11 TELEPARABOLAS, S.L. MAINTENANCE OF 1,500 100.00 750 783
PARABOLIC DISHES
12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF 132,009,215 100.00 9,901,180 20,919,059
TELEVISION
13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION 6,920,920 100.00 115,371 45,403
OF TELEVISION
14 TELEVISA, S.A. DE C.V. PRODUCTION AND 7,406,667 36.34 7,555,759 8,923,786
BROADCASTING OF T.V.
PROGRAMMING
15 TELEVISION INDEPENDIENTE DE PROMOTION AND 16,997,306 99.96 1,265,724 5,026,123
MEXICO, S.A. DE C.V. DEVELOPMENT OF
COMPANIES
16 CAPITALIZED INTEGRAL COST OF 1 215,687
FINANCING, 1994
17 CAPITALIZED INTEGRAL COST OF 1 384,446
FINANCING, 1995
18 CAPITALIZED INTEGRAL COST OF 1 26,646
FINANCING, 1996
19 CAPITALIZED INTEGRAL COST OF 1 22,164
FINANCING, 1998
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SUBSIDIARIES 28,711,820 41,410,045
====================================================================================================================================
RELATION OF SHARES INVESTMENTS
ANNEX 3 CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------
% TOTAL AMOUNT
NUMBER OWNERSHIP (Thousands of Pesos)
COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION PRESENT
COST VALUE (3)
------------------------------------------------------------------------------------------------------------------------------------
ASSOCIATEDS
1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR 33,000,000 15.30 137,000 14,116
BROADCASTING OF T.V.
2 BOUNCYNET, INC. INTERNET PORTAL 4,700 44.76 158,265 13,233
3 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF 1,735,560 49.00 4,384 735
DIAMEX, S.A. DE C.V. ANIMATED CARTOONS
4 DISTRIBUIDORA DE REVISTAS BERTRAN, DISTRIBUTION OF BOOKS 59,990 99.99 599,990 (309)
S.A.C. AND MAGAZINES
5 DTH TECHCO PARTNERS SERVICES FOR SATELLITE 1 30.00 117,900 119,495
PAY TELEVISION
6 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING 2,627,050 30.00 26,270 12,728
S.A. DE C.V. OF BOOKS AND
MAGAZINES.
7 EDITORIAL TELEVISA ARGENTINA, S.A. DISTRIBUTION OF BOOKS 7,812,999 99.99 7,812,999 (8,291)
AND MAGAZINES
8 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF 1,635,000 50.00 1,635 9,453
TELEVISION
PROGRAMMING
9 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN 2 100.00 25 (2,126)
DE C.V. MEXICO
10 GRUPO EUROPRODUCCIONES, S.A. PROMOTION AND 7,275 30.00 93,407 104,778
DEVELOPMENT OF
COMPANIES
11 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN 14,100,000 40.00 1,095,581 481,603
C.V. MEXICO
12 SKY LATIN AMERICA, PARTNERS ADMINISTRATIVE SERV. 1 30.00 1,974 10,251
FOR THE DTH VENTURES
13 TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR 4,124,986 15.00 412 5,158
BROADCASTING OF T.V.
14 TUTV, LLC COMMERCIALIZATION OF 1 50.00 25,752 19,318
TELEVISION PROGRAMMING
15 UNIVISION COMMUNICATIONS, INC. BROADCASTING OF T.V. 30,187,534 13.22 5,602,976 2,399,177
SPANISH PROGRAMS
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN ASSOCIATEDS 15,678,570 3,179,319
====================================================================================================================================
OTHER PERMANENT INVESTMENTS 200,303
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 44,789,667
====================================================================================================================================
ANNEX 5
CREDITS BREAK DOWN
(Thousands of Pesos)
CONSOLIDATED
FINAL PRINTING
Denominated Amortization of Credits in Foreign Currency With
In Pesos National Entities (Thousands of $)
------------------------------------------------------
Time Interval
-------------------- ------------------------------------------------------
Credit Type/Institution Amortization Rate of Until 1 More Than Current Until 1 Until 2 Until 3 Until 4 Until 5
Date Interest Year 1 Year Year Year Year Year Year Year
====================================================================================================================================
BANKS
====================================================================================================================================
OTHER FINANCIAL ENTITIES
SINDICADO 12/21/2006 2.06
BANAMEX, S.A. 5/1/2008 8.93 40,000 760,000
BANCA SERFIN, S.A. 5/15/2006 5.75 64,000 112,000
BANAMEX, S.A. 7/24/2004 5.48 152,625
BANK OF AMERICA 3/31/2010 2.37
BNP PARIBAS 3/28/2008 1.53
SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.58
INBURSA, S.A. 11/1/2006 5.93 7,854 12,051
BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86
LEASING DE OCCIDENTE 3/19/2005 13.87
LEASING DEL VALLE 2/8/2004 13.53
LEASING DE COLOMBIA 3/21/2005 14.53
====================================================================================================================================
TOTAL BANKS 264,479 884,051 - - - - - -
====================================================================================================================================
STOCK EXCHANGE
PRIVATE PLACEMENTS
====================================================================================================================================
UNSECURED DEBT
------------------------------------------------------------------------------------------------------------------------------------
HOLDERS 5/13/2006 12.49
HOLDERS 8/8/2005 9.07
HOLDERS 9/13/2011 8.41
HOLDERS 3/11/2032 8.94
UDI DENOMINATED-NOTES 4/13/2007 8.15 3,579,437
====================================================================================================================================
TOTAL STOCK EXCHANGE - 3,579,437 - - - - - -
====================================================================================================================================
SUPPLIERS
====================================================================================================================================
VARIOUS 350,342 1,234,943
====================================================================================================================================
TOTAL SUPPLIERS 350,342 - - 1,234,943 - - - -
====================================================================================================================================
OTHER CURRENT LIABILITIES
AND OTHER CREDITS
====================================================================================================================================
VARIOUS 938,945 85,109 320,190 752,837
====================================================================================================================================
TOTAL OTHER CURRENT LIABILITIES
AND OTHER CREDITS 938,945 85,109 - 320,190 752,837 - - -
====================================================================================================================================
1,553,766 4,548,597 - 1,555,133 752,837 - - -
====================================================================================================================================
CREDITS BREAK DOWN
(Thousands of Pesos)
Amortization of Credits in Foreign Currency With
National Entities (Thousands of $)
-------------------------------------------------------------
Time Interval
-------------------------------------------------------------
Credit Type/Institution Current Until 1 Until 2 Until 3 Until 4 Until 5
Year Year Year Year Year Year
===================================================================================================
BANKS
===================================================================================================
OTHER FINANCIAL ENTITIES
SINDICADO 440,320 660,480
BANAMEX, S.A.
BANCA SERFIN, S.A.
BANAMEX, S.A.
BANK OF AMERICA 138 414 552 552 552 28,940
BNP PARIBAS 2,840 4,973 5,920 5,564 5,921 1,154
SUNTRUST BANK MIAMI, NATIONAL 1,118 3,354 4,788 4,788 4,788 3,592
INBURSA, S.A.
BANCO DE BILBAO VIZCAYA, S.A. 1,083 5,068 2,664 440
LEASING DE OCCIDENTE 115 370 396
LEASING DEL VALLE 52 154 9
LEASING DE COLOMBIA 26 79 50
===================================================================================================
TOTAL BANKS 5,372 14,412 454,699 671,824 11,261 33,686
===================================================================================================
STOCK EXCHANGE
PRIVATE PLACEMENTS
===================================================================================================
UNSECURED DEBT
---------------------------------------------------------------------------------------------------
HOLDERS 58,816
HOLDERS 2,201,600
HOLDERS 3,302,400
HOLDERS 3,302,400
UDI DENOMINATED-NOTES
===================================================================================================
TOTAL STOCK EXCHANGE - - 2,201,600 58,816 0 6,604,800
===================================================================================================
SUPPLIERS
===================================================================================================
VARIOUS 371,311
===================================================================================================
TOTAL SUPPLIERS - 371,311 - - - -
===================================================================================================
OTHER CURRENT LIABILITIES
AND OTHER CREDITS
===================================================================================================
VARIOUS - 89,867 55,999
===================================================================================================
TOTAL OTHER CURRENT LIABILITIES
AND OTHER CREDITS - 89,867 55,999 - - -
===================================================================================================
5,372 475,590 2,712,298 730,640 11,261 6,638,486
===================================================================================================
NOTES
THE BANCO NACIONAL DE MEXICO LOAN WAS REFINACED IN JULY 2000, AND THE
MATURITY OF SUCH LOAN AND INTEREST PAYABLE WERE CHANGED AS REFLECTED IN
THIS SCHEDULE.
THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY WERE AS
FOLLOWS :
$ 11.0080 PESOS PER U.S. DOLLAR
0.0038 PESOS PER COLOMBIAN PESO
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Pesos)
ANNEX 6 CONSOLIDATED
FINAL PRINTING
DOLLARS (1) OTHER CURRENCIES
----------------------------- --------------------------------- TOTAL
TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS
OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS
---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 360,713 3,970,729 56,288 619,618 4,590,347
LIABILITIES POSITION 1,148,004 12,637,228 26,955 296,721 12,933,949
SHORT-TERM LIABILITIES POSITION 162,933 1,793,566 26,786 294,861 2,088,427
LONG-TERM LIABILITIES POSITION 985,071 10,843,662 169 1,860 10,845,522
---------------------------------------------------------------------------------------------------------------------------
NET BALANCE (787,291) (8,666,499) 29,333 322,897 (8,343,602)
===========================================================================================================================
NOTES
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS :
$ 11.0080 PESOS PER U.S. DOLLAR
12.9600 PESOS PER EURO
3.7698 PESOS PER ARGENTINEAN PESO
11.0080 PESOS PER PANAMANIAN BALBOA
0.0167 PESOS PER CHILEAN PESO
0.0038 PESOS PER COLOMBIAN PESO
3.1641 PESOS PER PERUVIAN NUEVO SOL
18.5900 PESOS PER POUNDS STERLING
11.0080 PESOS PER ECUADORIAN SUCRE
THIS INFORMATION IS REPRESENTED ON A CONSOLIDATED BASIS AND INCLUDES,
ACCORDINGLY, INFORMATION OF FOREIGN SUBSIDIARIES.
INTEGRATION AND INCOME
CALCULATION BY MONETARY POSITION (1)
(Thousands of Pesos)
ANNEX 7 CONSOLIDATED
FINAL PRINTING
(ASSET) LIABILITIES MONTHLY
MONTH MONETARY MONETARY MONETARY MONTHLY (PROFIT)
ASSETS LIABILITIES POSITION INFLATION AND LOSS
---------------------------------------------------------------------------------------------------------------------------
JANUARY 20,592 20,999 407 0.00 1,643
FEBRUARY 20,893 19,276 (1,617) 0.00 (4,489)
MARCH 19,330 21,199 1,869 0.01 11,796
APRIL 19,051 21,537 2,486 0.00 4,245
MAY 18,955 21,320 2,365 0.00 (7,630)
JUNE 18,504 21,587 3,083 0.00 2,547
JULY 16,651 20,412 3,761 0.00 5,449
AUGUST 16,593 20,277 3,684 0.00 11,050
SEPTEMBER 20,552 21,033 481 0.01 2,647
OCTOBER - 0.00 -
NOVEMBER - 0.00 -
DECEMBER - 0.00 -
ACTUALIZATION: - 152
CAPITALIZATION: - -
FOREIGN CORP.: - 29,913
OTHER - (93,440)
---------------------------------------------------------------------------------------------------------------------------
TOTAL (36,117)
===========================================================================================================================
NOTES
THE AMOUNT REFLECTED IN "OTHER" INCLUDES A GAIN FROM MONETARY
POSITION DERIVED FROM DEFERRED TAXES FOR PS. 93,111 WHICH WAS
CLASSIFIED IN THE DEFERRED INCOME TAX PROVISION IN ACCORDANCE
WITH THE GUIDELINES PROVIDED BY BULLETIN D-4 FOR DEFERRED
TAXES.
CONVENANTS ON BONDS AND MEDIUM-TERM NOTES LISTED IN STOCK MARKET
ANNEX 8 CONSOLIDATED
FINAL PRINTING
FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE
THE AGREEMENTS OF THE U.S.$200 MILLION, U.S.$300 MILLION AND
U.S.$300 MILLION SENIOR NOTES WITH MATURITY IN 2005, 2011 AND 2032,
RESPECTIVELY, CONTAIN CERTAIN COVENANTS THAT LIMIT THE ABILITY OF
THE COMPANY AND ITS SUBSIDIARIES ENGAGED IN TELEVISION OPERATIONS
TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS,
AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS OR SIMILAR
TRANSACTIONS.
CONVENANT COMPLIANCE REPRESENTATION
AT SEPTEMBER 30, 2003, THE GROUP WAS IN COMPLIANCE WITH THE
FINANCIAL RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM
SENIOR NOTES DESCRIBED ABOVE.
/s/ C.P. Jorge Lutteroth Echegoyen
--------------------------------------
C.P. JORGE LUTTEROTH ECHEGOYEN
CONTROLLER, VICE-PRESIDENT
MEXICO, D.F. OCTOBER 22, 2003
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 CONSOLIDATED
FINAL PRINTING
PLANT OR CENTER ECONOMIC ACTIVITY PLANT UTILIZATION
CAPACITY (1) (%)
-------------------------------------------------------------------------------------------------------------------------
TELEVISION: 0 0
CORPORATIVO SANTA FE HEADQUARTERS 0 0
TELEVISA SAN ANGEL PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
TELEVISA CHAPULTEPEC PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
REAL ESTATE LAND AND UNOCCUPIED, BUILDING, 0 0
PARKING LOTS, ADMINISTRATIVE 0 0
OFFICES, RADIO ANTENNAS, 0 0
TELEVISION STATIONS FACILITIES. 0 0
TRANSMISSION STATIONS BROADCASTER STATIONS. 0 0
PUBLISHING: 0 0
EDITORIALS ADMINISTRATION, SALES, PRODUCTION, 0 0
STORAGE AND DISTRIBUTION OF 0 0
MAGAZINES AND NEWSPAPERS. 0 0
AUDIO: 0 0
SISTEMA RADIOPOLIS, S.A. DE C.V. BROADCASTER STATIONS. 0 0
CABLE TELEVISION: 0 0
CABLEVISION, S.A. DE C.V. CABLE TELEVISION, SIGNAL CONDUCTION 0 0
AND TRANSMISSION EQUIPMENT. 0 0
OTHER BUSINESSES: 0 0
IMPULSORA DEL DEPORTIVO SOCCER, SOCCER TEAMS, TRAINING 0 0
NECAXA, S.A. DE C.V. AND CLUB FACILITIES, ADMINISTRATIVE OFFICES AND 0 0
DE FUTBOL AMERICA, S.A. DE C.V. THE AZTECA STADIUM. 0 0
COMUNICACIONES MTEL, S.A. DE C.V. NATIONWIDE PAGING. 0 0
AUDIOMASTER 3000, S.A. DE C.V. DUBBING, DUBBING EQUIPMENT AND 0 0
STUDIOS, AND ADMINISTRATIVE 0 0
OFFICES. 0 0
10/23/2003
NOTES
MAIN RAW MATERIALS
ANNEX 10 CONSOLIDATED
FINAL PRINTING
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
(%)
---------------------------------------------------------------------------------------------------------------------------------
TAPES AND VIDEOCASSETTE HEWLETT PACKARD,
FOR RECORDING S.A. DE C.V. 0.22
FUJI FILM, S.A. DE C.V. 0.03
VIDEOCASSETTE
FOR RECORDING COLOR CASSETES YES 0.40
PROGRAMS AND FILMS ALAMEDA FILMS,
S.A. 0.16
CIMA FILMS, S.A.
DE C.V. 0.22
CINEMATOGRAFICA
CALDERON, S.A. 0.17
CINEMATOGRAFICA
FILMEX, S.A. DE C.V. 0.14
CINEMATOGRAFICA
RODRIGUEZ, S.A. 0.48
CHURUBUSCO, S.A. 0.46
DIANA INTERNACIO
NAL FILMS, S.A. 1.91
DISTRIBUIDORA RO
MARI, S.A. DE C.V. 1.42
GRUPO GALINDO,
S.A. DE C.V. 0.25
GUIAS, S.A. DE C.V. 0.27
GUSSI, S.A. DE C.V. 2.64
NUVISION, S.A. 0.80
PELICULAS RODRI
GUEZ, S.A. 0.67
PELICULAS Y VI
DEOS INTERNACIO
NALES, S.A. 0.40
PRODUCCIONES
ALFA AUDIOVISUAL
S.A. DE C.V. 0.14
PRODUCCIONES
GALUBI, S.A. 0.13
PRODUCCIONES
GONZALO ELVIRA 0.13
QUALITY FILMS, S.A. 0.15
SECINE, S.A. DE C.V. 0.44
UNION INTERNACIONAL
S.A. DE C.V. 0.04
OTHERS 1.93
PROGRAMS AND FILMS ABC DISTRIBUTION
COMPANY NO 1.04
ALFRED HABER
DISTRIBUTION, INC. NO 0.68
ALLIANCE
INTERNATIONAL NO 0.69
ARGENTINA SONO
FILMS, S.A. NO 0.06
B.R.B. INTERNA
CIONAL, S.A. NO 0.45
BKN INTERNA
CIONA,INC. NO 0.25
BKN TELEVISION
SALES,S.A. NO 0.27
BUENAVISTA
INTERNATIONAL
INC. NO 0.32
CANAL + DISTRI
BUTION NO 0.56
CARSEY WERNER
DISTRIBUTION,INC. NO 0.13
CBS BROADCAST
INTERNATIONAL NO 1.92
CINAR FILMS, INC. NO 0.56
CLOVERWAY, INC. NO 0.14
CONSTELLATION
PICTURES, INC. NO 2.13
DARGAUD MARINA NO 0.14
DREAMWORKS NO 0.86
ENOKI FILMS,
LTD. NO 0.37
ENTHEOS GROUP,
LLC. NO 0.19
EVERGREEN ENTER
TAINMENT CORP. NO 0.32
FIREWORKS INTER
NATIONAL NO 0.89
FREMANTLE INTER
NATIONAL DISTRI
BUTION, LTD. NO 0.74
HALLMARK ENTER
TAINMENT DISTRI
BUTION, CO. NO 0.32
HASBRO, INC. NO 0.16
HEARTS
ENTERTAINMENT,
INC. NO 0.35
HIGHPOINT
PRODUCTIONS INC. NO 0.44
INDEPENDENT
INTERNATIONAL
T.V. INC. NO 3.17
LUCASFILM, LTD. NO 0.73
MAYFAIR ENTER
TAINMENT INC. NO 0.19
MGM/UA TELECOM
MUNICATIONS, INC. NO 1.79
MORGAN CREEK
INTERNATIONAL NO 0.86
MOVIEMEX INTER
NATIONAL, INC. NO 0.13
MTV NETWORKS A
DIVISION OF VIACOM
INT. NO 1.09
MULTIMEDIA GROUP
OF CANADA NO 0.25
NBC INTERNATIONAL NO 0.99
NELVANA INTERNA
TIONAL, LIMITED NO 0.53
NEW LATIN IMAGE
CORPORATION NO 0.51
NGTV INTERNATIO
NAL, LTD. NO 0.23
UN IMAGE INCOR
PORATED NO 0.21
PARAMOUNT
PICTURES , CORP. NO 7.87
RCN TELEVISION,
S.A. NO 0.94
RYSHER ENTER
TAINMENT, INC. NO 0.69
SABAN INTERNA
TIONAL, N.V. NO 0.14
SALSA
DISTRIBUTION NO 0.45
SALSA
ENTERTAINMENT NO 0.55
SESAME WORKSHOP NO 0.28
SONY CORPORA
TION OF AMERICA NO 11.36
SPI INTERNATIO
NAL, INC. NO 0.44
STUDIOCANAL IMAGE NO 0.13
SUNBOW ENTER
TAINMENT NO 0.30
TELEVISION FILM
DISTRIBUTION NO 0.70
TELEVIX ENTERTAIN
MENT NO 0.14
TEPUY INTER
NATIONAL, INC. NO 2.24
TF1 INTERNATIONAL NO 0.11
THE FREMANTLE
CORPORATION NO 0.23
TOEI ANIMATION
CO., LTD NO 0.81
TOP ENTERTAINMENT
PRODUCTS, INC. NO 0.34
TURNER INTER
NATIONAL,INC. NO 0.25
TWENTIETH CEN
TURY FOX, INC. NO 4.73
UNIVERSAL STUDIOS
INTERNATIONAL, B.V. NO 9.23
VENEVISION INTER
NATIONAL, LTD. NO 1.27
VENTURA FILM
DISTRIBUTORS BV NO 0.97
WARNER BROS.
INTERNATIONAL
TELEVISION NO 12.19
WHILAND COMPANY NO 1.41
WORLD EVENTS
LLC. NO 0.06
WORDLDIVISION
ENTERPRISES, INC. NO 1.93
XYSTUS, LLC. NO 0.44
ZACH MOTION
PICTURES,INC. NO 0.42
AMERICA PRO
DUCCIONES, S.A. NO 0.22
GLOBAL PROGRA
MING NETWORK NO 0.11
OTHERS 1.56
COAXIAL CABLE RG NACIONAL DE
CONDUCTORES,
S.A. DE C.V. 40.00
PLASTIC STAPLE TV CABLE DE
COLOTLAN, S.A. C.V. 0.33
SINGLE TELEGRIP CORPODISENO DE
HERRAJES, S.A. 0.73
IDENTIFICATION PLAQUE RIBANDI, S.A. DE C.V. 0.54
HILTI BOLT HILTI MEXICANA,
S.A. DE C.V. NO 0.31
SWITCH CABLENETWORK
MEXICO NO 0.16
SWITCH DISTRIBUIDORA Y
COMERCIALIZADORA YES 5.53
TWO OUTLET DEVICE AC 200 TVC CORPORATION YES 0.59
COUCHE PAPER DISTRIBUIDORA DE
PAPEL 0.55
PRODUCTORA NAL.
DE PAPEL 0.42
COUCHE PAPER BOWATER INCOR
PORATED YES 1.29
WEB SOURCE YES 3.98
FINNIPAP YES 16.91
TEMBEC, INC. YES 5.71
BULKLEY DUNTON YES 21.89
FOREST QUEST INC YES 0.53
MYLLLIKOSKI
PAPEL YES 24.00
M REAL YES 3.00
NORKE CANADA YES 0.13
UPM KYMMENE SEAS YES 1.27
STORAENSO INTE YES 0.27
PAPER AND IMPRESSION PRODUCTORA CO
MERCIALIZADORA Y
EDITORES DE LI
BROS , S.A. DE C.V. 7.27
OFFSET
MULTICOLOR 14.20
GRAFICAS LA
PRENSA, SA DE CV 0.12
PAPER AND EDITORIAL ANTAR
IMPRESSION TICA QUEBEC, S.A. YES 2.83
GRUPO OP GRAFICAS
S.A. YES 0.27
PRINTER COLOMBIA
NA, S.A. YES 1.18
GRUPO EDITORIAL
MOLINA, S.A. YES 0.02
ST. IVES, INC. YES 7.74
BEST LITHO YES 0.46
EDITORES, S.A. YES 0.14
RR DONELLY YES 5.59
GUAD GRAPHICS YES 1.85
SALES DISTRIBUTION BY PRODUCT
ANNEX 11
DOMESTIC SALES
CONSOLIDATED
FINAL PRINTING
TOTAL PRODUCTION NET SALES MARKET
-------------------- --------------------- SHARE
MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT (%)
-----------------------------------------------------------------------------------------------
TELEVISION:
-----------
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC) 76
ADVERTISED TIME SOLD (HALF HOURS) 4 9,672,243
OTHER INCOME 330,818
PROGRAMMING FOR PAY TELEVISION:
SALE OF SIGNALS 340,257
ADVERTISED TIME SOLD 45,660
PUBLISHING:
MAGAZINE CIRCULATION 94,574 710,644 42,164 475,322
PUBLISHING 340,141
PUBLISHING DISTRIBUTION: 14,171 378,922
------------------------
CABLE TELEVISION:
ANALOGIC AND DIGITAL SERVICE 676,745
SERVICE INSTALLATION 6,947
PAY PER VIEW 1,277
CHANNEL COMMERCIALIZATION 15,351
OTHER 16,903
RADIO:
ADVERTISED TIME SOLD 140,881
.
OTHER BUSINESSES:
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS 338,537
SPECIAL EVENTS AND SHOW PROMOTION 325,121
NATIONWIDE PAGING SERVICE 183,422
INTERNET SERVICES 48,573
DUBBING SERVICES 3,698
===============================================================================================
TOTAL 710,644 13,340,818
===========================================================================================----
SALES DISTRIBUTION BY PRODUCT
ANNEX 11
DOMESTIC SALES
CONSOLIDATED
FINAL PRINTING
MAIN
------------------------------------------------------------------------------------
TRADEMARKS CUSTOMERS
------------------------------------------------------------------------------------------------------------------------------------
TELEVISION:
-----------
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC)
ADVERTISED TIME SOLD (HALF HOURS) PROCTER & GAMBLE DE MEXICO, S.A. DE C.V.
THE COCA-COLA EXPORT COMPANY.
UNILEVER DE MEXICO, S.A. DE C.V.
SABRITAS, S. DE R.L. DE C.V.
GRUPO BIMBO, S.A. DE C.V.
PEPSI COLA MEXICANA, S.A DE C.V.
CERVECERIA MODELO, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
DANONE DE MEXICO, S.A. DE C.V.
NESTLE MEXICO, S.A. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
CENTRAL IMPULSORA , S.A. DE C.V.
COSBEL, S.A. DE C.V.
OTHER INCOME FRUGOSA, S.A. DE C.V.
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALE OF SIGNALS
ADVERTISED TIME SOLD
PUBLISHING:
-----------
MAGAZINE CIRCULATION TV Y NOVELAS MAGAZINE, GENERAL PUBLIC (AUDIENCE)
TELEGUIA MAGAZINE, DEALERS
VANIDADES MAGAZINE COMMERCIAL CENTERS (MALLS)
COSMOPOLITAN MAGAZINE
BIOGRAPHICAL BOOKS
SOCCERMANIA MAGAZINE
MEN'S HEALTH MAGAZINE
CARAS MAGAZINE
MUY INTERESANTE MAGAZINE
PUBLISHING VARIOUS
PUBLISHING DISTRIBUTION: MAGAZINE:
------------------------ "SELECCIONES" "BIBLIOTECA
TOLKIEN" "PRINCESAS DE
PORCELANA" "GRANDES
OBRAS DE LITERATURA"
"REVISTA DEL CONSUMIDOR"
CABLE TELEVISION:
-----------------
ANALOGIC AND DIGITAL SERVICE GENERAL PUBLIC
SERVICE INSTALLATION OPERADORA MEGACABLE, S.A. DE C.V.
PAY PER VIEW CERVECERIA MODELO, S.A. DE C.V.
CHANNEL COMMERCIALIZATION GRUPO WARNER LAMBERT MEXICO, S. DE R.L DE C.V.
OTHER DAIMLERCHRYSLER DE MEXICO, S.A. DE C.V.
FORD MOTOR COMPANY, S.A. DE C.V.
THE COCA COLA EXPORT COMPANY.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
BANCO NACIONAL DE MEXICO, S.A.
ARENA COMMUNICATIONS, S.A. DE C.V.
BAYER DE MEXICO, S.A. DE C.V.
BURGER KING MEXICANA, S.A. DE C.V.
EL PALACIO DE HIERRO, S.A. DE C.V.
RADIO:
------
ADVERTISED TIME SOLD CERVECERIA MODELO, S.A. DE C.V.
ARENA COMMUNICATIONS, S.A. DE C.V.
VENTAS Y SERVICIOS AL CONSUMIDOR, S.A. DE C.V
PUBLICIDAD EN MASA, S.A. DE C.V.
GIGANTE, S.A. DE C.V.
PARTIDOS POLITICOS
COMERCIAL MEXICANA
EMBOTELLADORA MEXICANA, S.A. DE C.V.
RR PRODUCCIONES, S.A. DE C.V.
BURGER KING MEXICANA, S.A. DE C.V.
OTHER BUSINESSES:
-----------------
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS VIDEOVISA, S.A. DE C.V.
CINEMEX, S.A. DE C.V.
CINEMARK DE MEXICO, S.A. DE C.V.
ORGANIZACION RAMIREZ, S.A. DE C.V.
COMPANIA OPERADORA DE TEATROS, S.A. DE C.V.
GENERAL PUBLIC (AUDIENCE)
SPECIAL EVENTS AND SHOW PROMOTION AMERICA GENERAL PUBLIC (AUDIENCE)
NECAXA FEDERACION MEXICANA DE FUTBOL, A.C.
REAL SAN LUIS
NATIONWIDE PAGING SERVICE SKYTEL FERROCARRILES NACIONALES DE MEXICO, S.A.
BANCO NACIONAL DE MEXICO, S.A.
HEWLETT PACKARD DE MEXICO, S.A. DE C.V.
COMISION FEDERAL DE ELECTRICIDAD
EDS DE MEXICO, S.A. DE C.V.
INTEGER, S.A. DE C.V.
FERROSUR, S.A. DE C.V.
SECRETARIA DE GOBERNACION
SCHERING PLOUGH, S.A. DE C.V..
BBVA BANCOMER, S.A.
UNILEVER, S.A. DE C.V.
I.B.M. DE MEXICO, S.A.
INTERNET SERVICES ESMAS.COM MEDIA CONTACTS, S.A. DE C.V.
NIKE DE MEXICO, S.A. DE C.V.
MOTOROLA DE MEXICO, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
DUBBING SERVICES DISTRIBUIDORA ROMARI, S.A. DE C.V.
====================================================================================================================================
TOTAL
====================================================================================================================================
SALES DISTRIBUTION BY PRODUCT
ANNEX 11A
FOREIGN SALES
TOTAL PRODUCTION NET SALES
-------------------- ---------------------
MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT
-----------------------------------------------------------------------------------
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD 313,353
OTHER INCOME 59,220
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS 74,801
PROGRAM LICENSING:
------------------
PROGRAMMING AND ROYALTIES 1,234,152
PUBLISHING:
-----------
MAGAZINE CIRCULATION, BOOKS AND
ADVERTISING 17,493 266,152
PUBLISHING 148,170
PUBLISHING DISTRIBUTION: 8,822 808,214
------------------------
OTHER BUSINESSES:
-----------------
DUBBING SERVICES 27,386
====================================================================================
TOTAL 2,931,448
====================================================================================
SALES DISTRIBUTION BY PRODUCT
ANNEX 11A
FOREIGN SALES
CONSOLIDATED
FINAL PRINTING
MAIN
------------------------------------------------------------------------
MAIN PRODUCTS DESTINATION TRADEMARKS CUSTOMERS
------------------------------------------------------------------------------------------------------------------------------------
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD UNITED STATES OF AMERICA CPIF VENTURE, INC.
VISA INTERNATIONAL SERVICE ASSOCIATION
NISSIN FOOD PRODUCTS, CO LTD.
MASTER CARD INTERNATIONAL GLOBAL MARKETING
CHEIL COMMUNICATIONS,INC.
REYNOLDS CONSUMER PRODUCTS
OTHER INCOME UNITED STATES OF AMERICA
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS SPAIN
ARGENTINA
CHILE
GUATEMALA
PROGRAM LICENSING: COLOMBIA
------------------
PROGRAMMING AND ROYALTIES UNITED STATES OF AMERICA TELEVISA MCCANN ERICKSON
CENTRAL AMERICA TELEVISA MINDSHARE
CARIBBEAN TELEVISA BBDO WORLDWIDE
EUROPE TELEVISA SPOTPLUS
SOUTH AMERICA TELEVISA CARAT, INC.
AFRICA TELEVISA OPTIMUM MEDIA, INC.
ASIA TELEVISA GREY ADVERTISING, INC.
INITIATIVE MEDIA, INC.
GSD&M
DAILEY & ASSOCIATES
PUBLISHING:
-----------
MAGAZINE CIRCULATION, BOOKS AND
ADVERTISING GUATEMALA AND COSTA RICA T.V.Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
UNITED STATES OF AMERICA BIOGRAPHICAL BOOKS DEALERS
PANAMA VANIDADES MAGAZINE
SOUTH AMERICA COSMOPOLITAN MAGAZINE
CENTRAL AMERICA TU MAGAZINE
PUBLISHING
PUBLISHING DISTRIBUTION: PANAMA SEMANA MAGAZINE GENERAL PUBLIC (AUDIENCE)
------------------------ SOUTH AMERICA SELECCIONES MAGAZINE
CROMOS MAGAZINE
CAMBIO 16 MAGAZINE
SOHO MAGAZINE
OTHER BUSINESSES:
-----------------
DUBBING SERVICES UNITED STATES OF AMERICA VIDEX INTERNATIONAL, S.A
COLUMBIA TRISTAR INTERNATIONAL TELEVISION
C.B.S. BROADCAST INTERNATIONAL
TWENTIETH CENTURY FOX INTERNATIONAL TELEVISION
TELEVIX ENTERTAINMENT
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TOTAL
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PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE
ANNEX 13
CONSOLIDATED
FINAL PRINTING
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MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT SEPTEMBER 30, 2003,
INCLUDE THE FOLLOWING (MILLIONS OF U.S. DOLLARS AND MEXICAN PESOS):
DESCRIPTION AUTHORIZED AMOUNT EXERCISED AMOUNT PROGRESS %
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U.S. DOLLAR DENOMINATED PROJECTS:
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NEWS CENTER U.S. $ 16.2 U.S. $ 14.0 86%
DIGITALIZATION OF THE CABLE
TELEVISION NETWORK 15.0 - -
TECHNICAL EQUIPMENT FOR
T.V. STATIONS 13.4 5.5 41%
CAPITAL CONTRIBUTIONS TO
"TUTV", A JOINT VENTURE
WITH UNIVISION IN THE
UNITED STATES 5.0 2.5 50%
MEXICAN PESOS DENOMINATED PROJECTS:
INSTALLATION AND CONSTRUCTION
OF T.V. STUDIOS PS. 88.5 PS. 81.4 92%
TECHNICAL EQUIPMENT FOR
T.V. STATIONS 17.1 7.0 41%
ACQUISITION OF COMPUTER
EQUIPMENT 17.5 5.6 32%
INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION)
ANNEX 14
CONSOLIDATED
FINAL PRINTING
INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION)
MONETARY ASSETS AND LIABILITIES OF MEXICAN COMPANIES DENOMINATED IN FOREIGN
CURRENCIES ARE TRANSLATED AT THE PREVAILING EXCHANGE RATE AT THE BALANCE
SHEET DATE. RESULTING EXCHANGE RATE DIFFERENCES ARE RECOGNIZED IN INCOME
FOR THE YEAR, WITHIN INTEGRAL COST OF FINANCING.
ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF NON-MEXICAN SUBSIDIARIES
ARE FIRST CONVERTED TO MEXICAN GAAP, INCLUDING RESTATING TO RECOGNIZE THE
EFFECTS OF INFLATION BASED ON THE INFLATION OF EACH FOREIGN COUNTRY, AND
THEN TRANSLATED TO MEXICAN PESOS UTILIZING THE EXCHANGE RATE AS OF THE
BALANCE SHEET DATE AT YEAR-END. RESULTING TRANSLATION DIFFERENCES ARE
RECOGNIZED IN EQUITY AS PART OF THE OTHER COMPREHENSIVE INCOME OR LOSS.
FINANCIAL STATEMENTS OF NON-MEXICAN OPERATIONS THAT ARE INTEGRAL TO MEXICAN
OPERATIONS ARE CONVERTED TO MEXICAN GAAP AND TRANSLATED TO MEXICAN PESOS BY
UTILIZING THE EXCHANGE RATE OF THE BALANCE SHEET DATE AT YEAR-END FOR
MONETARY ASSETS AND LIABILITIES, WITH THE RELATED ADJUSTMENT INCLUDED IN
NET INCOME, AND HISTORICAL EXCHANGE RATES FOR NON-MONETARY ITEMS.
EFFECTIVE MARCH 1, 2002, THE COMPANY DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF ITS U.S.$300 MILLION SENIOR NOTES DUE
2011 AND ITS U.S.$300 MILLION SENIOR NOTES DUE 2032. CONSEQUENTLY,
BEGINNING MARCH 2002, ANY FOREIGN EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO
THIS U.S. DOLLAR LONG-TERM DEBT, BEING HEDGED BY THE COMPANY'S NET
INVESTMENT IN SHARES OF UNIVISION, IS CREDITED OR CHARGED DIRECTLY TO
EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS).
THE GROUP'S FINANCIAL STATEMENTS FOR SEPTEMBER 30, 2002, HAVE BEEN RESTATED
TO MEXICAN PESOS IN PURCHASING POWER AS OF SEPTEMBER 30, 2003, BY USING A
RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE NCPI, WHICH FOR 2002 WAS
1.0404. HAD THE ALTERNATIVE WEIGHTED AVERAGE FACTOR ALLOWED UNDER MEXICAN
GAAP BEEN APPLIED TO RESTATE THE GROUP'S FINANCIAL STATEMENTS FOR SEPTEMBER
30, 2002, WHICH INCLUDED THE RESULTS OF MEXICAN AND NON-MEXICAN
SUBSIDIARIES, THE RESTATEMENT FACTOR FOR 2002 WOULD HAVE BEEN 1.0495.
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.
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(Registrant)
Dated: October 24, 2003 By /s/ Jorge Lutteroth Echegoyen
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Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President