UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2003
GRUPO TELEVISA, S.A.
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(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Sante Fe 01210 Mexico, D.F.
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(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No X
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(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
[Logo] SECOND QUARTER 2003 RESULTS
FOR IMMEDIATE RELEASE
Grupo Televisa Reports Second Quarter 2003 Results
Highlights
>> Net Sales Increased 5.9% and EBITDA Grew 34.0%.
>> Highest Consolidated EBITDA in the Company's History.
>> Television Broadcasting EBITDA Margin Increased to 45.1%.
>> Operating Income Rose 43.0%.
>> Net Income Improved to Ps.1,265.3 Million.
Consolidated Results
Mexico City, D.F., July 16, 2003 -- Grupo Televisa, S.A. (NYSE:TV; BMV:
TLEVISA CPO) today announced results for the second quarter of 2003.
Results, which are attached, are in millions of Mexican pesos and have been
prepared in accordance with Mexican GAAP, and adjusted to pesos in
purchasing power as of June 30, 2003.
The following table sets forth a condensed Statement of Income in millions
of Mexican pesos, the percentage that each line represents from net sales,
and the percentage change for the second quarter of 2003 as compared with
the second quarter of 2002.
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2Q Margin 2Q Margin Change
2003 % 2002 % %
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Net Sales(1) 5,727.8 100.0 5,408.6 100.0 5.9
EBITDA(2) 1,996.1 34.8 1,489.6 27.5 34.0
Operating Income 1,624.6 28.4 1,136.2 21.0 43.0
Income from Continuing Operations 1,277.0 22.3 76.5 1.4 1,569.3
Net Income 1,265.3 22.1 1,237.0 22.9 2.3
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(1) See "Results by Business Segment" for information regarding segment
results.
(2) EBITDA is defined as operating income before depreciation and
amortization
The increase in net sales was attributable to: i) an 8.2% revenue growth in
the Television Broadcasting segment mainly due to the political advertising
campaigns for the mid-term elections in Mexico, the success of Big Brother
II, and a 22.2% increase in local sales; ii) a 12.5% revenue growth in the
Programming Licensing segment, reflecting higher royalties paid to the
Company by Univision under the Univision Program License Agreement, iii)
higher sales in the Programming for Pay Television segment; and iv) an
increase in sales in the Other Businesses and Radio segments. These
increases were partially offset by lower revenues in the Cable Television,
Publishing and Publishing Distribution segments.
The Company's EBITDA in the second quarter of 2003 increased 34.0% as
compared to the second period of last year, and EBITDA margin increased to
34.8%. Additionally, operating income increased 43.0%. These increases
primarily resulted from revenue growth and lower costs of sales and
operating expenses.
The Company generated income from continuing operations in the amount of
Ps.1,277.0 million in the second quarter of 2003 as compared to an income
from continuing operations of Ps.76.5 million in last year's comparable
period. The net increase of Ps.1,200.5 million reflected a Ps.488.4 million
increase in operating income; a Ps.417.6 million increase in equity in
results of affiliates; a Ps.408.0 million increase in other
income/expense-net; a Ps.345.1 million decrease in restructuring and
non-recurring charges; and a decrease in integral cost of financing of
Ps.53.2 million.
The Company generated net income in the amount of Ps.1,265.3 million in the
second quarter of 2003, as compared to a net income of Ps.1,237.0 million
in last year's comparable period. The net increase of Ps.28.3 million
reflects a Ps.1,200.5 million increase in income from continuing
operations, which was partially offset by a Ps.1,161.4 million decrease in
income from discontinued operations, reflecting the disposition of the
Company's Music Recording business in the second quarter of 2002.
Results by Business Segments
The following tables set forth the net sales, EBITDA and operating income
(loss) in millions of Mexican pesos for each of the Company's business
segments for the second quarters ended June 30, 2003 and 2002:
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Net Sales 2Q % 2Q % Change
2003 2002 %
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Television Broadcasting 3,726.5 64.4 3,444.0 62.8 8.2
Programming for Pay Television 168.0 2.9 150.9 2.7 11.3
Programming Licensing 424.5 7.3 377.4 6.9 12.5
Publishing 436.3 7.6 444.7 8.1 (1.9)
Publishing Distribution 369.6 6.4 387.0 7.1 (4.5)
Cable Television 239.4 4.1 298.2 5.4 (19.7)
Radio 62.2 1.1 46.0 0.8 35.2
Other Businesses 355.6 6.2 338.7 6.2 5.0
SEGMENT REVENUES 5,782.1 100.0 5,486.9 100.0 5.4
Intersegment Operations1 (54.3) (78.3) N/A
CONSOLIDATED REVENUES 5,727.8 5,408.6 5.9
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EBITDA 2Q Margin 2Q Margin Change
2003 % 2002 % %
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Television Broadcasting 1,681.2 45.1 1,343.8 39.0 25.1
Programming for Pay Television 33.0 19.6 18.0 11.9 83.3
Programming Licensing 167.6 39.5 70.4 18.7 138.1
Publishing 109.9 25.2 96.2 21.6 14.2
Publishing Distribution 4.7 1.3 15.8 4.1 (70.3)
Cable Television 69.3 28.9 75.4 25.3 (8.1)
Radio 7.3 11.7 (11.8) (25.7) N/A
Other Businesses (31.5) (8.9) (71.1) (21.0) N/A
Corporate Expenses (45.4) (0.8) (47.1) (0.9) N/A
SEGMENT EBITDA 1,996.1 34.5 1,489.6 27.1 34.0
CONSOLIDATED EBITDA 1,996.1 34.8 1,489.6 27.5 34.0
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Operating Income (Loss) 2Q Margin 2Q Margin Change
2003 % 2002 % %
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Television Broadcasting 1,452.6 39.0 1,118.2 32.5 29.9
Programming for Pay Television 22.1 13.2 7.3 4.8 202.7
Programming Licensing 165.9 39.1 68.1 18.0 143.6
Publishing 105.4 24.2 89.4 20.1 17.9
Publishing Distribution 0.2 0.1 11.6 3.0 (98.3)
Cable Television 26.8 11.2 41.4 13.9 (35.3)
Radio 3.6 5.8 (16.0) (34.8) N/A
Other Businesses (106.6) (30.0) (136.7) (40.4) N/A
Corporate Expenses (45.4) (0.8) (47.1) (0.9) N/A
SEGMENT OPERATING INCOME 1,624.6 28.1 1,136.2 20.7 43.0
CONSOLIDATED OPERATING INCOME 1,624.6 28.4 1,136.2 21.0 43.0
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(1) Intersegment operations: For segment reporting purposes, intersegment
operations are included in each of the segment operations.
Television The increase of 8.2% in Television Broadcasting
Broadcasting sales in the second quarter of 2003 is mainly
attributable to three factors: i) the political
advertising campaigns for the mid-term elections
in Mexico; ii) the success of the program Big
Brother II; and iii) an increase of 22.2% in
local sales driven mainly by Channel 4TV.
Excluding revenues generated from both the World
Cup during the second quarter of last year and
political advertising campaigns in the second
quarter of 2003, Television Broadcasting sales
increased 4.9%.
Television Broadcasting EBITDA increased 25.1% to
Ps.1,681.2 million. This increase was driven by
higher sales and a 4.2% reduction in cost of
sales, partially offset by a 5.4% increase in
operating expenses from sales commissions.
Operating income increased 29.9% due to higher
sales and lower costs of sales, partially offset
by higher operating expenses.
Programming The 11.3% increase in Programming for Pay
for Pay Television Television sales resulted from higher revenues
from signals sold to pay television systems in
Mexico. This increase was partially offset by a
reduction in advertising revenues in Mexico, as
well as a reduction in signals sold in Latin
America.
Operating income increased 202.7% due to higher
sales and lower operating expenses partially
offset by higher signal costs.
Programming The 12.5% increase in Programming Licensing sales
Licensing in the second quarter of 2003 is attributable to
an increase in the royalties paid to the Company
by Univision under the Univision Program License
Agreement, which amounted to U.S.$24.9 million,
including the royalty from the TeleFutura
network. This increase was partially offset by
lower export sales to Europe and Asia.
Operating income increased 143.6%, reflecting
higher sales, lower cost of sales and a reduction
in operating expenses, due to a reduction of
doubtful trade accounts in Latin America.
Publishing Publishing sales decreased marginally 1.9%, or
Ps.8.4 million, mainly from the translation
effect on foreign-currency denominated sales,
which amounted to Ps.12.8 million, considering
depreciation of local currencies in Chile,
Argentina, Venezuela and Colombia; a 39.3%
decrease in Venezuelan sales; and to a lesser
degree, a small decrease in circulation and
advertising sales abroad. These negative effects
were partially offset by a higher advertising
revenues in Mexico.
Publishing operating income increased 17.9% due
to a reduction in cost of sales and an
optimization in the number of magazines printed,
partially offset by lower sales and higher
operating expenses.
Publishing Publishing Distribution sales decreased by 4.5%
Distribution due to a reduction of magazines sold, as well as
a reduction in third party owned magazines sold,
as well as by the translation effect on
foreign-currency denominated sales, which
amounted to Ps.14.7 million.
Operating income decreased by Ps.11.4 million due
to lower sales, partially offset by lower cost of
sales.
Cable Cable Television sales decreased 19.7% due to a
Television decrease of subscribers as compared to the second
quarter of the previous year, driven mostly by
price increases derived from the 10%
telecommunication tax and the resulting increase
in subscriber piracy. The subscriber base
decreased to approximately 392,000, of which over
63,200 subscribers have digital service, as of
the end of the second quarter of 2003.
Operating income decreased 35.3% due to lower
sales and higher depreciation and amortization
costs, relating to the acquisition of computer
equipment, partially offset by lower cost of
sales and operating expenses.
Radio Radio sales increased 35.2% related to improved
programming and ratings and political advertising
campaigns for the mid-term elections in Mexico.
Operating income increased to Ps.3.6 million in
the second quarter of 2003 from a loss of Ps.16
million in last year's comparable period. This
favorable variance is attributable to higher
sales, lower cost of sales and operating
expenses.
Other
Businesses The 5.0% increase in Other Businesses sales was
primarily due to higher sales in the distribution
of feature films business, partially offset by
lower sales in the sports events and nationwide
paging businesses
Operating loss decreased to Ps.106.6 million in
the second quarter of 2003 from a loss of
Ps.136.7 million in last year's comparable
period. This favorable variance was led by higher
sales and lower cost of sales.
SKY Innova, S. de R.L. de C.V., is a non-consolidated
business of Grupo Televisa and the pay-TV market
leader in Mexico. It provides direct-to-home
satellite television services under the SKY brand
name. Financial and operating unaudited
highlights of Innova, of which Televisa owns 60%,
News Corp. 30%, and Liberty Media 10%, are as
follows:
o The number of gross active subscribers
increased 11.9% to 809,000, including
46,000 commercial subscribers, as of
June 30, 2003, as compared to 723,200,
including 27,900 commercial subscribers,
in the second quarter of 2002.
o Revenues increased 5.7% in the second
quarter of 2003 as compared to the same
period of 2002.
o EBITDA for the second quarter of 2003
increased 34.3% to Ps.297.3 million from
Ps.221.4 million for the same period of
2002. As a result, EBITDA margin
increased 27.0% from 24.8% to 31.5%.
o EBIT for the second quarter of 2003
improved Ps.126.9 million to an
operating income of Ps.103.0 million
from an operating loss of Ps.24.0
million for the same period of 2002. As
a result, EBIT margin increased from a
negative 2.7% to a positive 10.9%.
o Sky has not required shareholder funding
for the past five quarters and does not
expect to require loans or cash equity
contributions from its shareholders in
the second half of 2003.
Non-operating Results
Integral Cost of Financing
The following table sets forth the Integral Cost of Financing for the three
months ended June 30, 2003 and 2002, in millions of Mexican pesos:
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2Q 2Q Increase Change
2003 2002 (decrease) %
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Interest expense 302.8 359.1 (56.3) (15.7)
Interest income (188.6) (173.5) (15.1) (8.7)
Foreign exchange (gain) loss - net (112.4) 500.0 (612.4) N/A
Foreign exchange loss (gain) - hedged 211.3 (519.9) 731.2 140.6
(Gain) loss from monetary position - net (40.7) 59.9 (100.6) N/A
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172.4 225.6 (53.2) (23.6)
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The expense attributable to the integral cost of financing decreased by
Ps.53.2 million, or 23.6%, to Ps.172.4 million for the second quarter ended
June 30, 2003 from Ps.225.6 million for last year's comparable period. This
variance reflects: i) a Ps.56.3 million decrease in the interest expense,
primarily as result of a decrease in the interest rates in the second
quarter of 2003 as compared to second quarter of 2002, which includes a
decrease in the restatement of the UDIs, as well as a net gain attributable
to interest swap contracts outstanding in the second quarter of 2003; ii) a
Ps.15.1 million increase in interest income, primarily as a result of a
higher average amount of temporary investments during the second quarter of
2003 as compared to the second quarter of 2002, which was partially offset
by a decrease in the interest rates applicable to these temporary
investments in the second quarter of 2003 as compared to the second quarter
of 2002; iii) a Ps.612.4 million favorable change resulting from a net
foreign exchange gain in the second quarter of 2003 versus a net foreign
exchange loss in the second quarter of 2002, primarily due to the 3.3%
appreciation of the Mexican peso as compared to the U.S. dollar during the
second quarter ended June 30, 2003, versus a 10.4 % depreciation of the
Mexican peso as compared to the U.S. dollar during the second quarter ended
June 30, 2002; and iv) a Ps.100.6 million favorable change resulting from a
gain from monetary position in the second quarter of 2003 as compared to a
loss from monetary position in the second quarter of 2002, primarily as a
result of the Company's net liability monetary position during the second
quarter of 2003 as compared to the Company's net asset monetary position
during the second quarter of 2002. These decreases in the integral cost of
financing were partially offset by a Ps.731.2 million unfavorable change in
the hedge effect from the foreign exchange gain or loss derived from the
Company's U.S.$600 million long-term debt securities maturing in 2011 and
2032, which is being hedged by the Company's net investment in Univision.
Restructuring and Non-recurring Charges
Restructuring and non-recurring charges decreased by Ps.345.1 million, or
88.9%, to Ps.43.1 million for the second quarter of 2003 from Ps.388.2
million for last year's comparable period. This decrease primarily reflects
the non-recurring charge taken in the second quarter of 2002 in connection
with both the write-off of exclusive rights letters for soccer players and
the drawdown by DirecTV under a letter of credit that the Company posted in
connection with certain arrangements with DirecTV related to our rights to
broadcast last's years World Cup. The decrease in restructuring and
non-recurring charges also reflects a decrease in charges related to work
force lay-offs in the second quarter of 2003 as compared to the second
quarter of 2002. The entire amount registered in the second quarter of 2003
in restructuring and non-recurring charges refers only to personnel
layoffs.
Other Income/Expense-Net
Other income-net increased by Ps.408.0 million to a net income of Ps.141.6
million for the second quarter of 2003 from a net expense of Ps.266.4
million in last year's comparable period. This increase primarily reflects
an increase in gain on disposition of assets, primarily in connection with
the sale of a portion of the Company's minority interest in the capital
stock of its DTH venture in Spain, a reduction in a write-off of goodwill
taken in the second quarter of 2002, as well as a decrease in the reserve
for doubtful non-trade accounts.
Income Taxes
Income tax, assets tax and employees' profit sharing increased by Ps.511.8
million to a tax provision of Ps.403.3 million for the second quarter of
2003 from a tax benefit of Ps.108.5 million for the second quarter of 2002.
The provision for current income taxes primarily reflected the effect of
recognizing assets tax which is higher than income tax, as a consequence of
an increase in the assets tax base for 2003 as compared to 2002. In
addition, this increase was helped by a higher minority income tax, and in
2002 the Company recognized a deferred income tax benefit from an annual
decrease in the corporate income tax rate from 35% starting in 2003 and
continuing through 2005 when the corporate rate will be 32%.
Equity in Income/Losses of Affiliates-Net
Equity in income/losses of affiliates increased by Ps.417.6 million to a
net income of Ps.129.6 million for the second quarter of 2003 from a net
loss of Ps.288.0 million in last year's comparable periods. This increase
primarily reflects the discontinuation of the equity method in recognizing
additional equity losses in excess of the Company's guaranteed commitments
for certain indebtedness of its DTH joint ventures in Latin America, as
well as an increase in the equity income of Univision.
Minority Interest
The minority interest reflects the portion of the operating results
attributable to the interest held by third parties in the businesses which
are not wholly-owned by the Company, including the Company's cable
television, radio and nationwide paging businesses.
Minority interest increased by Ps.10.8 million to Ps.11.7 million for the
second quarter of 2003 from Ps.0.9 million for the second quarter of 2002.
This increase primarily reflects both an increase in the net income of the
Company's Cable Television segment and a decrease in the net loss of the
Company's Radio segment for the second quarter of 2003, as compared to the
second quarter of 2002.
Other Relevant Information
Capital Expenditures, Acquisitions and Investments
In the second quarter of 2003, the Company invested approximately U.S.$27.9
million in property, plant and equipment as capital expenditures, of which
approximately U.S.$2.0 million is related to Cablevision. Additionally, in
the second quarter of 2003 the Company invested approximately U.S.$7.3
million in long-term loans provided to its Multi-Country DTH joint venture
operating in Colombia and Chile (U.S.$1.8 million) and its DTH joint
venture providing technical services to DTH ventures in Latin America
(U.S.$5.5 million). Innova has not required shareholder funding for the
past five quarters and does not expect to require loans or cash equity
contributions from its shareholders in the second half of 2003.
Debt
As of June 30, 2003, the Company's long-term debt amounted to Ps.14,012.4
million, and its short-term debt was Ps.282.4 million, as compared to
Ps.13,424.0 million and Ps.1,267.2 million, respectively, as of June 30,
2002.
In the second quarter of 2003, the Company entered into a long-term credit
agreement with a Mexican bank for an aggregate amount of Ps.800 million
with an annual interest rate of 8.925% (weighted average) plus additional
basis points from 0 to 45 based on the maintenance of certain financial
coverage ratios related to indebtedness. The maturities of this
indebtedness are as follows: Ps.80 million in 2004, Ps.240 million in 2006
and Ps.480 million in 2008. The net proceeds of this indebtedness were
primarily used to pay all of the amounts outstanding under the Series "A"
Senior Notes, which matured in May 2003.
In the second quarter of 2003, the Company paid all of the amounts
outstanding under a bank loan for approximately (euro)23.6 million Euros.
This payment was made with the cash proceeds from the sale of a portion of
the Company's minority interest in the capital stock of DTS Distribuidora
de Televison Digital, S.A., a DTH venture in Spain. The net cash proceeds
from this divestiture amounted to approximately (euro)27.5 million Euros.
Share Buyback Program
Since the implementation of our most recently announced share repurchase
program through July 16, 2003, the Company had repurchased approximately
69.6 million shares in the form of 23.2 million CPOs for approximately
Ps.352.3 million.
Television Ratings and Audience share
National urban ratings and audience share reported by IBOPE confirm that in
the second 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 72.6%; in prime time (16:00 to 23:00 -
Monday to Sunday), audience share amounted to 69.6%; and in sign-on to
sign-off (6:00 to 24:00 - Monday to Sunday), audience share amounted to
71.6%.
Additionally, during the second quarter of 2003, Televisa aired 85 of the
100 most popular programs. Channel 2 continues to be the leader in Mexican
television largely due to the success of the telenovelas: "Las Vias del
Amor," "Nina, Amada Mia," "Velo de Novia" and "Amor Real."
Outlook for 2003
Considering the first and second quarter results, the Company continues to
believe it is on track to deliver for the full year 2003: i) EBITDA margin
at 40% in the Television Broadcasting segment; and ii) Consolidated EBITDA
margin at 30%.
Grupo Televisa S.A., is the largest media company in the Spanish-speaking
world, and a major player in the international entertainment business. It
has interests in television production and broadcasting, programming for
pay television, international distribution of television programming,
direct-to-home satellite services, publishing and publishing distribution,
cable television, radio production and broadcasting, professional sports
and show business promotions, paging services, feature film production and
distribution, dubbing, and the operation of a horizontal Internet portal.
Grupo Televisa also has an unconsolidated equity stake in Univision, the
leading Spanish-language television company in the United States.
This press release contains forward-looking statements regarding the
Company's results and prospects. Actual results could differ materially
from these statements. The forward-looking statements in this press release
should be read in conjunction with the factors described in "Item 3. Key
Information - Forward-Looking Statements" in the Company's Annual Report on
Form 20-F, which, among others, could cause actual results to differ
materially from those contained in forward-looking statements made in this
press release and in oral statements made by authorized officers of the
Company. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
(Please see attached tables for financial information and ratings data)
###
Contacts:
Investor Relations:
Michel Boyance / Alejandro Eguiluz
Grupo Televisa, S.A.
Av. Vasco de Quiroga No. 2000
Colonia Santa Fe
01210 Mexico, D.F.
(5255) 5261-2000
GRUPO TELEVISA, S. A.
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2003 AND DECEMBER 31, 2002
(Millions of Mexican pesos in purchasing power as of June 30, 2003)
June 30, December 31,
2003 2002
(Unaudited) (Audited)
--------------------- ---------------------
ASSETS
Current:
Available:
Cash Ps. 283.5 Ps. 1,633.3
Temporary investments 9,750.1 7,263.1
--------------------- ---------------------
10,033.6 8,896.4
Trade notes and accounts receivable-net 4,524.5 9,683.0
Other accounts and notes receivable-net 656.7 878.7
Transmission rights, programs,
production talent advances and films 3,519.3 3,462.8
Inventories 497.8 515.0
Other current assets 417.6 435.5
--------------------- ---------------------
Total current assets 19,649.5 23,871.4
Transmission rights, programs, literary works and films 5,281.2 4,897.8
Investments 3,292.7 3,070.9
Property, plant and equipment-net 15,329.2 15,534.7
Goodwill and trademarks-net 7,855.2 8,065.6
Deferred costs-net 1,207.8 1,374.7
Other assets 332.0 363.0
--------------------- ---------------------
Total assets Ps. 52,947.6 Ps. 57,178.1
===================== =====================
GRUPO TELEVISA, S. A.
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2003 AND DECEMBER 31, 2002
(Millions of Mexican pesos in purchasing power as of June 30, 2003)
June 30, December 31,
2003 2002
(Unaudited) (Audited)
----------------- ---------------
LIABILITIES
Current:
Current portion of long-term debt Ps. 282.4 Ps. 1,255.4
Trade accounts payable 1,912.1 2,256.3
Customer deposits and advances 7,791.8 11,693.5
Taxes payable 436.6 897.5
Accrued interest 304.2 311.3
Other accrued liabilities 996.3 827.5
Due to affiliated companies and related parties-net 545.2 59.5
---------------- ----------------
Total current liabilities 12,268.6 17,301.0
Long-term debt 14,012.4 13,511.7
Customer deposits and advances 454.4 206.2
Other long-term liabilities 1,181.8 769.9
Deferred taxes 1,033.7 2,061.3
DTH joint ventures 1,606.8 1,665.8
Pension plans and seniority premiums 110.2 71.7
---------------- ----------------
Total liabilities 30,667.9 35,587.6
---------------- ----------------
STOCKHOLDERS' EQUITY
Majority interest:
Capital stock, no par value:
Issued 7,680.9 7,708.8
Repurchased (266.8) (248.1)
---------------- ----------------
Outstanding 7,414.1 7,460.7
Additional paid-in capital 219.1 219.1
---------------- ----------------
7,633.2 7,679.8
---------------- ----------------
Retained earnings:
Legal reserve 1,236.2 1,198.8
Reserve for repurchase of shares 5,340.8 5,585.7
Unappropriated earnings 10,444.2 10,324.2
Accumulated other comprehensive loss (5,055.8) (5,098.8)
Net income for the period 1,515.2 747.0
---------------- ----------------
13,480.6 12,756.9
---------------- ----------------
Total majority interest 21,113.8 20,436.7
Minority interest 1,165.9 1,153.8
---------------- ----------------
Total stockholders' equity 22,279.7 21,590.5
---------------- ----------------
Total liabilities and stockholders' equity Ps. 52,947.6 Ps. 57,178.1
================ ================
GRUPO TELEVISA, S. A.
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Millions of Mexican pesos in purchasing power as of June 30, 2003)
Three months ended June 30, Six months ended June 30,
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------- --------------- --------------- ---------------
Net sales Ps. 5,727.8 Ps. 5,408.6 Ps. 10,536.3 Ps. 9,998.1
Cost of sales 2,988.1 3,149.5 5,797.9 5,899.0
--------------- --------------- --------------- ---------------
Gross profit 2,739.7 2,259.1 4,738.4 4,099.1
--------------- --------------- --------------- ---------------
Operating expenses:
Selling 386.1 420.4 741.4 786.4
Administrative 357.5 349.1 697.1 688.9
--------------- --------------- --------------- ---------------
743.6 769.5 1,438.5 1,475.3
--------------- --------------- --------------- ---------------
EBITDA(1) 1,996.1 1,489.6 3,299.9 2,623.8
Depreciation and amortization 371.5 353.4 749.1 713.3
--------------- --------------- --------------- ---------------
Operating income 1,624.6 1,136.2 2,550.8 1,910.5
--------------- --------------- --------------- ---------------
Integral cost of financing:
Interest expense 302.8 359.1 650.9 659.6
Interest income (188.6) (173.5) (354.9) (322.5)
Foreign exchange (gain) loss - net (112.4) 500.0 (4.5) 395.4
Foreign exchange result - hedged 211.3 (519.9) 12.1 (494.2)
(Gain) loss from monetary position-net (40.7) 59.9 49.9 138.4
--------------- --------------- --------------- ---------------
172.4 225.6 353.5 376.7
--------------- --------------- --------------- ---------------
Restructuring and non-recurring charges 43.1 388.2 95.4 490.9
--------------- --------------- --------------- ---------------
Other (income) expense-net (141.6) 266.4 12.7 423.5
--------------- --------------- --------------- ---------------
Income before taxes 1,550.7 256.0 2,089.2 619.4
--------------- --------------- --------------- ---------------
Income tax and assets tax-current 365.6 229.1 809.8 513.6
Employees' profit sharing-current 1.4 7.5 3.1 15.3
Deferred income taxes 36.3 (345.1) (224.9) (516.8)
--------------- --------------- --------------- ---------------
403.3 (108.5) 588.0 12.1
--------------- --------------- --------------- ---------------
Equity in income (losses) of affiliates 129.6 (288.0) 6.5 (390.6)
--------------- --------------- --------------- ---------------
Income from continuing operations 1,277.0 76.5 1,507.7 216.7
Income from discontinued operations-net - 1,161.4 - 1,103.2
Minority interest (11.7) (0.9) 7.5 (12.8)
--------------- --------------- --------------- ---------------
Net income Ps. 1,265.3 Ps. 1,237.0 Ps. 1,515.2 Ps. 1,307.1
=============== =============== =============== ===============
(1) EBITDA is defined as operating income before depreciation and
amortization.
NATIONAL URBAN RATINGS AND AUDIENCE SHARE FOR 2ND, 3RD AND 4TH QUARTERS OF
2002 AND 1ST AND 2ND QUARTER OF 2003(1):
SIGN-ON TO SIGN-OFF -- 6:00 TO 24:00, MONDAY TO SUNDAY
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Apr May Jun Jul Aug Sep Oct Nov Dec 2002 Jan Feb Mar 1Q03 Apr May Jun 2Q03
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CHANNEL 2
Rating 12.2 12.0 12.3 12.2 11.8 11.6 11.5 11.3 10.5 11.8 11.5 11.3 11.8 11.5 11.4 11.2 11.4 11.3
Share (%) 32.4 32.3 33.1 31.8 31.3 31.0 30.8 29.7 29.6 31.5 30.9 30.1 30.6 30.5 30.6 30.9 30.6 30.7
TOTAL TELEVISA(2)
Rating 28.7 29.1 28.4 29.7 27.6 27.3 26.9 27.3 25.6 27.9 27.0 26.7 27.5 27.1 26.6 26.1 26.5 26.4
Share (%) 76.5 78.0 76.1 77.6 73.5 72.9 72.1 71.5 72.3 74.4 72.6 70.9 71.5 71.7 71.4 72.0 71.5 71.6
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PRIME TIME - 16:00 TO 23:00, MONDAY TO SUNDAY(3)
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Apr May Jun Jul Aug Sep Oct Nov Dec 2002 Jan Feb Mar 1Q03 Apr May Jun 2Q03
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CHANNEL 2
Rating 17.6 18.2 18.3 18.2 17.9 17.8 17.5 17.6 15.6 17.9 18.1 17.7 17.9 17.9 17.6 17.3 18.0 17.7
Share (%) 32.2 33.6 34.7 33.0 33.1 32.6 31.6 30.9 30.1 32.7 32.7 32.0 32.1 32.2 32.9 33.1 33.2 33.1
TOTAL TELEVISA(2)
Rating 40.9 41.6 39.7 42.3 38.4 38.5 38.2 39.5 36.5 39.6 39.9 38.8 38.7 39.2 37.3 36.6 37.6 37.2
Share (%) 74.6 76.9 75.2 76.5 71.3 70.7 69.2 69.2 70.6 72.4 72.0 69.9 69.6 70.5 69.8 69.9 69.2 69.6
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WEEKDAY PRIME TIME--19:00 TO 23:00, MONDAY TO FRIDAY(3)
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Apr May Jun Jul Aug Sep Oct Nov Dec 2002 Jan Feb Mar 1Q03 Apr May Jun 2Q03
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CHANNEL 2
Rating 21.5 21.6 21.9 20.8 22.3 22.8 21.4 21.0 19.4 21.8 22.0 23.0 24.2 23.1 24.0 23.6 24.3 24.0
Share (%) 34.1 35.2 36.7 33.6 37.2 37.2 34.7 32.6 33.2 35.2 34.6 35.7 37.6 36.0 39.4 39.6 38.8 39.3
TOTAL TELEVISA(2)
Rating 46.5 47.9 45.5 48.0 43.5 43.7 42.3 45.2 42.6 45.0 47.2 46.6 46.2 46.7 44.7 43.4 44.9 44.3
Share (%) 73.9 77.9 76.4 77.5 72.5 71.2 68.4 70.1 73.0 72.5 74.4 72.2 71.8 72.8 73.4 72.8 71.7 72.6
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NOTES:
1) National urban ratings and audience share are certified by IBOPE and are
based upon IBOPE's national surveys, which are calculated, seven days a
week, in Mexico City, Guadalajara, Monterrey and 24 other cities with a
population of over 400,000 people. "Ratings" for a period refers to the
number of television sets tuned into the Company's programs as a percentage
of the total number of all television households. "Audience share" is the
number of television sets tuned into the Company's programs as a percentage
of the number of households watching conventional over-the-air television
during that period, without regard to the number of viewers.
2) "Total Televisa" includes the Company's four networks as well as all
local affiliates (including affiliates of Channel 4, most of which receive
only a portion of their daily programming from Channel 4). Programming on
affiliates of Channel 4 is generally broadcast in 12 of the 27 cities that
are covered by national surveys. Programming on Channel 9 affiliates is
broadcast in all of the cities that are covered by national surveys.
3) "Televisa Prime Time" is the time during which the Company generally
charges its highest rates for its networks.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
------------------------------------
(Registrant)
Dated: July 17, 2003 By /s/ Jorge Lutteroth Echegoyen
---------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President