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, 2004
GRUPO TELEVISA, S.A.
-------------------------------------------------
(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F.
---------------------------------------------------------------------
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
------- -------
(Indicate by check mark 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 .)
-------------------------------------------------------------------------------
Grupo Televisa, S.A. SECOND QUARTER 2004 RESULTS
FOR IMMEDIATE RELEASE
HIGHLIGHTS
>> RECORD SECOND-QUARTER CONSOLIDATED AND TELEVISION BROADCASTING SEGMENT
NET SALES, OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION AND
MARGINS
>> ALL BUSINESS SEGMENTS EXPERIENCED REVENUE GROWTH DURING THE SECOND
QUARTER
>> ON APRIL 1, 2004, WE BEGAN CONSOLIDATING INNOVA ("SKY MEXICO") INTO
OUR FINANCIAL STATEMENTS
>> NET SALES INCREASED 24.7% AND OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION GREW 32.4%; ON A PRO FORMA BASIS, INCLUDING SKY MEXICO,
NET SALES ROSE 9.4% AND OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION GREW 15.2%
>> FITCH UPGRADED OUR LONG-TERM FOREIGN CURRENCY RATING TO "BBB" FROM
"BBB-," ONE LEVEL ABOVE MEXICO'S SOVEREIGN LONG-TERM FOREIGN CURRENCY
RATING
>> WE ARE RAISING OUR TELEVISION BROADCASTING FULL-YEAR 2004 REVENUE AND
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION GUIDANCE
CONSOLIDATED RESULTS
Mexico City, D.F., July 26 2004 - Grupo Televisa, S.A. (NYSE:TV; BMV:
TLEVISA CPO) today announced results for the second quarter 2004. The
results, shown in the attached tables on pages 9-11, have been prepared in
accordance with Mexican GAAP, and adjusted in millions of Mexican pesos in
purchasing power as of June 30, 2004. As described below, effective April
1, 2004, we adopted the guidelines of the Financial Accounting Standards
Board Interpretation No. 46, in accordance with Mexican GAAP Bulletin A-8.
As a result, during the second quarter, we began consolidating Sky Mexico
into our financial statements.
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 when comparing the second quarter of 2004 with
the second quarter of 2003:
----------------------------------------------------------------------------------------------
2Q MARGIN 2Q MARGIN CHANGE
2004(1) % 2003(2) % %
----------------------------------------------------------------------------------------------
NET SALES 7,456.5 100.0 5,977.9 100.0 24.7
Operating Income Before
Depreciation and Amortization 2,758.3 37.0 2,083.2 34.8 32.4
Operating Income 2,221.2 29.8 1,695.5 28.4 31.0
Net Income (3) 461.6 6.2 1,320.5 22.1 (65.0)
----------------------------------------------------------------------------------------------
(1) Second quarter 2004 results include Sky Mexico. Effective April 1,
2004, we adopted the guidelines of the Financial Accounting Standards
Board Interpretation No. 46 "Consolidation of Variable Interest
Entities" (FIN 46), in accordance with Mexican GAAP Bulletin A-8
"Supplementary Application of International Accounting Standards." FIN
46, which became effective in 2004, addresses consolidation by
business enterprises of variable interest entities, or VIEs. Under
previous guidance, a company generally included another entity in its
consolidated financial statements only if it controlled the entity
through voting interests. FIN 46 requires a variable interest entity
to be consolidated by a company if that company is the "primary
beneficiary" of the entity. The primary beneficiary is subject to a
majority of the risk of loss from the VIEs activities, or is entitled
to receive a majority of the VIEs residual returns, or both. We
identified Sky Mexico as a variable interest entity and us as the
primary beneficiary of the investment in Sky Mexico, under the scope
of FIN 46, and therefore, beginning April 1, 2004, we began to include
in our consolidated financial statements the assets, liabilities and
results from operations of Sky Mexico. Before adopting FIN 46, we
accounted for our investment in Sky Mexico by applying the equity
method, and recognized equity in losses in excess of our investment up
to the amount of the guarantees made by us in connection with certain
capital lease obligations of Sky Mexico.
(2) Second quarter 2003 results do not include Sky Mexico. For further
information, see "Pro forma Results by Business Segments."
(3) Second quarter 2004 net income reflects a non-cash, one-time Ps.992.0
million charge, related to the consolidation of Sky Mexico. For
further information, see "Cumulative Loss Effect of Accounting
Change."
Consolidated net sales increased 24.7% to Ps.7,456.5 million in the second
quarter of 2004 from Ps.5,977.9 million in the second quarter of 2003. This
increase reflects: i) the consolidation of the net sales from Sky Mexico;
and ii) revenue growth in all of our business segments, including six out
of nine segments presenting double-digit revenue growth. On a pro forma
basis, including the consolidation of Sky Mexico, net sales increased 9.4%.
Second quarter 2004 consolidated operating income before depreciation and
amortization increased 32.4% to Ps.2,758.3 million compared with last
year's second quarter. Consolidated operating income before depreciation
and amortization margin increased to 37.0%, the highest margin level ever
reported in any second quarter in the Company's history. Additionally,
operating income increased 31.0%. These increases primarily resulted in
revenue growth which was partially offset by higher cost of sales,
operating expenses and depreciation and amortization costs. On a pro forma
basis, including the consolidation of Sky Mexico, operating income before
depreciation and amortization grew 15.2%.
The Company generated net income of Ps.461.6 million in the second quarter
of 2004 compared to net income of Ps.1,320.5 million in last year's second
quarter. The net decrease of Ps.858.9 million reflected primarily: i) a
Ps.992.0 million cumulative loss effect of accounting change, net of
related minority interest, in connection with Sky Mexico's accumulated
losses not recognized in the years 2001, 2002, 2003 and the first quarter
of 2004; ii) a Ps.382.5 million increase in other expense-net; iii) a
Ps.31.6 million decrease in equity in income of affiliates; and iv) a
Ps.41.8 million increase in income taxes. These unfavorable changes were
partially offset by: i) a Ps.675.1 million increase in operating income
before depreciation and amortization; ii) a Ps.31.3 million decrease in
integral cost of financing; and iii) a Ps.30.7 million decrease in
restructuring and non-recurring charges.
PRO FORMA RESULTS BY BUSINESS SEGMENTS
The following tables set forth the pro forma net sales, operating income
(loss) before depreciation and amortization, and operating income (loss) in
millions of Mexican pesos for each of the Company's business segments for
the second quarters ended June 30, 2004 and 2003, both including Sky
Mexico:
--------------------------------------------------------------------------------------------------
NET SALES 2Q % PRO FORMA % CHANGE
2004 2Q 2003 %
--------------------------------------------------------------------------------------------------
Television Broadcasting 3,990.6 52.5 3,889.1 56.0 2.6
Programming for Pay Television 193.6 2.5 175.3 2.5 10.4
Programming Licensing 523.1 6.9 443.0 6.4 18.1
Publishing 530.7 7.0 455.3 6.6 16.6
Publishing Distribution 472.4 6.2 385.8 5.6 22.4
Sky Mexico 1,174.2 15.4 985.3 14.2 19.2
Cable Television 274.5 3.6 249.8 3.6 9.9
Radio 67.7 0.9 65.0 0.9 4.2
Other Businesses 377.3 5.0 295.5 4.2 27.7
SEGMENT NET SALES 7,604.1 100.0 6,944.1 100.0 9.5
Intersegment Operations (1) (190.5) (202.3) -
Disposed Operations (2) 42.9 75.7 -
CONSOLIDATED NET SALES 7,456.5 6,817.5 9.4
--------------------------------------------------------------------------------------------------
(1) For segment reporting purposes, intersegment operations are included
in each of the segment operations.
(2) Reflects the results of operations of the Company's nationwide paging
and dubbing businesses.
--------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 2Q MARGIN PRO FORMA MARGIN CHANGE
BEFORE DEPRECIATION AND 2004 % 2Q 2003 % %
AMORTIZATION
--------------------------------------------------------------------------------------------------
Television Broadcasting 1,852.8 46.4 1,754.5 45.1 5.6
Programming for Pay Television 76.0 39.3 34.4 19.6 120.9
Programming Licensing 239.9 45.9 174.9 39.5 37.2
Publishing 128.4 24.2 114.7 25.2 11.9
Publishing Distribution (2.1) (0.4) 5.0 1.3 -
Sky Mexico 425.1 36.2 310.3 31.5 37.0
Cable Television 104.8 38.2 72.3 28.9 45.0
Radio 8.8 13.0 7.6 11.7 15.8
Other Businesses (37.5) (9.9) (53.1) (18.0) 29.4
Corporate Expenses (44.3) (0.6) (47.4) (0.7) 6.5
SEGMENT OPERATING INCOME
BEFORE DEPRECIATION AND
AMORTIZATION 2,751.9 36.2 2,373.2 34.2 16.0
Disposed Operations (1) 6.4 14.9 20.3 26.8 (68.5)
CONSOLIDATED OPERATING INCOME
BEFORE DEPRECIATION AND
AMORTIZATION 2,758.3 37.0 2,393.5 35.1 15.2
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 2Q MARGIN PRO FORMA MARGIN CHANGE
2004 % 2Q 2003 % %
--------------------------------------------------------------------------------------------------
Television Broadcasting 1,598.2 40.0 1,515.9 39.0 5.4
Programming for Pay Television 71.5 36.9 23.1 13.2 209.5
Programming Licensing 238.1 45.5 173.1 39.1 37.6
Publishing 123.0 23.2 110.0 24.2 11.8
Publishing Distribution (7.6) (1.6) 0.2 0.1 -
Sky Mexico 236.8 20.2 107.4 10.9 120.5
Cable Television 54.0 19.7 28.0 11.2 92.9
Radio 4.3 6.4 3.8 5.8 13.2
Other Businesses (48.2) (12.8) (120.9) (40.9) 60.1
Corporate Expenses (44.3) (0.6) (47.4) (0.7) 6.5
SEGMENT OPERATING INCOME 2,225.8 29.3 1,793.2 25.8 24.1
Disposed Operations (1) (4.6) (10.7) 9.7 12.8 -
CONSOLIDATED OPERATING INCOME 2,221.2 29.8 1,802.9 26.4 23.2
--------------------------------------------------------------------------------------------------
(1) Reflects the results of operations of the Company's nationwide paging
and dubbing businesses.
TELEVISION The 2.6% increase in sales to record second quarter
BROADCASTING results of Ps.3,990.6 million was mainly
attributable to: i) an increase of advertising
revenues, driven mainly by an overall pick-up in the
Mexican economy, combined with the broadcast of
certain sporting events throughout the quarter,
including the Euro Cup and the Mexican Soccer
Premier League final; and ii) our continuing success
on reality shows. Excluding the political
advertising received during the second quarter of
last year, Television Broadcasting sales increased
18.5%.
Operating income before depreciation and
amortization increased 5.6% to a record second
quarter of Ps.1,852.8 million. This increase
reflects higher sales, a 2.1% reduction in operating
expenses, which was partially offset by a marginal
0.6% increase in cost of sales. As a result,
operating income before depreciation and
amortization margin increased to a historic record
of 46.4% compared with 45.1% in the second quarter
of last year.
PROGRAMMING The 10.4% increase in sales resulted from higher
FOR revenues from signals sold to pay television systems
PAY TELEVISION in Mexico and Latin America, as well as higher
advertising sales in Mexico.
Operating income before depreciation and
amortization increased 120.9% due to increased sales
coupled with a lower cost of sales and operating
expenses that included a lower provision for
doubtful trade accounts and a reduction of sales
commissions.
PROGRAMMING The 18.1% increase in sales is attributable to a
LICENSING 19.2% increase in royalties paid to the Company by
Univision under the Univision Program License
Agreement, which amounted to U.S.$29.7 million, as
well as by a positive translation effect of
foreign-currency denominated sales, which amounted
to Ps.25.6 million.
Operating income before depreciation and
amortization increased 37.2%, reflecting higher
sales that were partially offset by higher cost of
sales and operating expenses.
PUBLISHING The 16.6% increase in sales was related to higher
magazine circulation and advertising pages sold both
in Mexico and abroad, as well as by a positive
translation effect of foreign-currency denominated
sales, which amounted to Ps.17.2 million.
Publishing operating income before depreciation and
amortization increased 11.9% reflecting higher
sales, partially offset by higher cost of sales and
operating expenses.
PUBLISHING The 22.4% increase in sales was related to higher
DISTRIBUTION distribution sales abroad and higher circulation of
magazines published by the Company in Mexico, as
well as by a positive translation effect of
foreign-currency denominated sales, which amounted
to Ps.34.2 million, but was partially offset by
lower circulation of magazines published by third
parties in Mexico.
Operating result before depreciation and
amortization decreased to a loss of Ps.2.1 million
in the second quarter of 2004 compared with an
income of Ps.5.0 million in last year's second
quarter. This decrease reflects higher cost of sales
and operating expenses, partially offset by higher
sales.
SKY MEXICO The 19.2% increase in sales was attributable to
three factors: i) an increase of 16.0% in our
subscriber base; ii) the elimination of the 10%
excise tax on telecommunications services; and iii)
additional revenues from pay-per-view.
Sky Mexico added 52,500 subscribers during the
second quarter reaching 938,600 gross active
subscribers that include 52,000 commercial
subscribers. Compared to last year's second quarter,
gross active subscribers increased 16.0% from
809,000 including 46,000 commercial subscribers.
Operating income before depreciation and
amortization increased 37.0% to Ps.425.1 million in
the second quarter of 2004 compared with Ps.310.3
million in last year's second quarter, reflecting
higher sales, which were partially offset by higher
cost of services and sales, and operating expenses.
As a result, operating income before depreciation
and amortization margin increased to 36.2% from
31.5%.
CABLE The 9.9% increase in sales to Ps.274.5 million was
TELEVISION primarily attributable to the elimination of the 10%
excise tax on telecommunications services. Our cable
television segment added 6,800 gross active
subscribers during the second quarter, reaching
372,700 gross active subscribers, of which over
73,800 are digital subscribers.
Operating income before depreciation and
amortization increased 45.0% to Ps.104.8 million due
to higher sales and lower cost of sales that were
partially offset by higher operating expenses. As a
result, operating income before depreciation and
amortization margin increased to 38.2% from 28.9%.
RADIO Radio sales increased 4.2% to Ps.67.7 million
compared to last year's second quarter, due to
higher advertising time sold, which was mainly
driven by our newscasts and sporting programs.
Operating income before depreciation and
amortization increased 15.8% to Ps.8.8 million
compared with Ps.7.6 million reported in the same
period a year ago. This increase was attributable to
higher sales and was partially offset by higher cost
of sales and operating expenses.
In June 2004, our radio segment affiliated 41 new
radio stations (22 AM and 19 FM), expanding its
network to 71 stations, reaching 33 cities in
Mexico.
OTHER The 27.7% increase in sales was related to higher
BUSINESSES sales in the distribution of feature films, Internet
and sport businesses.
Operating loss before depreciation and amortization
decreased to Ps.37.5 million from Ps.53.1 million in
last year's comparable period. This favorable
variance was led by higher sales and lower operating
expenses and was partially offset by higher cost of
sales, related to our distribution of feature films
and sport businesses.
NON-OPERATING RESULTS
Effective April 1, 2004, we began consolidating Sky Mexico into our
consolidated financial statements. Therefore, second quarter 2003 results
do not include Sky Mexico.
INTEGRAL COST OF FINANCING
The following table sets forth the Integral Cost of Financing for the three
months ended June 30, 2004 and 2003, in millions of Mexican pesos, which
consisted of:
---------------------------------------------------------------------------------------------
2Q 2Q INCREASE CHANGE
2004(1) 2003 (DECREASE) %
---------------------------------------------------------------------------------------------
Interest expense 413.6 316.0 97.6 30.9
Interest income (168.4) (196.9) 28.5 14.5
Foreign exchange loss (gain) - net 146.1 (117.3) 263.4 -
(Gain) loss on hedge effect (217.6) 220.5 (438.1) -
Gain from monetary position - net (25.1) (42.4) 17.3 40.8
148.6 179.9 (31.3) (17.4)
---------------------------------------------------------------------------------------------
(1) Includes Sky Mexico.
Integral cost of financing decreased by Ps.31.3 million, or 17.4%, to
Ps.148.6 million in the second quarter of 2004 from Ps.179.9 million in the
second quarter of 2003. This decrease reflects primarily a favorable
Ps.438.1 million change resulting from a positive hedge effect on our
U.S.$600 million long-term debt hedged by our net investment in Univision
in the second quarter of 2004 compared to a negative hedge effect in the
second quarter of 2003. The hedge effect was positively affected by a 3.25%
depreciation of the Mexican peso against the U.S. dollar during the second
quarter of 2004, compared to a 3.28% appreciation of the Mexican peso
against the U.S. dollar during the second quarter of 2003. This favorable
variance was offset by: i) a Ps.97.6 million increase in interest expense,
primarily as a result of an increase in the average amount of our debt
during the second quarter of 2004 compared to the second quarter of 2003,
in connection with the consolidation of Sky Mexico's debt at the beginning
of the second quarter of 2004; ii) a Ps.28.5 million decrease in interest
income in the second quarter of 2004 compared to last year's second
quarter, reflecting Sky Mexico's capitalization in September 2003 of all of
the amounts due to us in connection with certain financing provided to this
joint venture, which effect was partially offset by an increase in interest
income in connection with a higher average amount of temporary investments
during the second quarter of 2004 compared to the second quarter of 2003;
iii) a Ps.263.4 million unfavorable change resulting from a net foreign
exchange loss in the second quarter of 2004 compared to a net foreign
exchange gain in the second quarter of 2003, primarily due to a higher
foreign currency liability position in connection with the consolidation of
the Sky Mexico's foreign currency debt beginning in the second quarter of
2004, as well as a result of the Mexican peso depreciation in the second
quarter of 2004 and the Mexican peso appreciation in the second quarter of
2003; and iv) a Ps.17.3 million decrease in gain from monetary position as
a result of a higher monetary loss arising in calculating our deferred
income tax provision, which effect was partially offset by a higher net
liability monetary position during the second quarter of 2004 compared to
the second quarter of 2003.
RESTRUCTURING AND NON-RECURRING CHARGES
Restructuring and non-recurring charges decreased by Ps.30.7 million, or
68.4%, to Ps.14.2 million for the second quarter of 2004 compared to
Ps.44.9 million for the second quarter of 2003. This decrease primarily
reflects lower restructuring charges in connection with work force
reductions.
OTHER EXPENSE/INCOME-NET
Other expense increased by Ps.382.5 million to Ps.234.7 million for the
second quarter of 2004 from other income of Ps.147.8 million for the second
quarter of 2003. This increase primarily reflects a loss on disposition of
our 30.0% minority interest in the capital stock of Grupo Europroducciones,
a television programming production company in Spain, in the second quarter
of 2004, versus a gain on disposition of a portion of our minority interest
in a DTH venture in Spain in the second quarter of 2003. This loss was
partially offset by a reduction in amortization of goodwill in the second
quarter of 2004 as we ceased amortizing this intangible asset beginning
January 1, 2004, in accordance with Mexican GAAP Bulletin B-7 related to
business acquisitions.
INCOME TAX
Income tax increased by Ps.41.8 million, or 9.9%, to Ps.462.7 million for
the second quarter of 2004 from Ps.420.9 million for the second quarter of
2003. This increase reflects an increased income tax base for 2004 compared
with 2003.
EQUITY IN INCOME OF AFFILIATES
Equity in income of affiliates decreased by Ps.31.6 million, or 23.4%, to
Ps.103.5 million for the second quarter of 2004 compared to Ps.135.1
million in the second quarter of 2003. This decrease primarily reflects the
absence of equity income of Sky Mexico in the second quarter of 2004
compared to the second quarter of 2003, which was partially offset by an
increase in our equity income of Univision in the second quarter of 2004
compared to the second quarter of 2003.
CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE
We recognized approximately a Ps.992.0 million cumulative loss effect of
accounting change, net of minority interest in our consolidated statement
of income in connection with Sky Mexico's accumulated losses not recognized
in the years 2001, 2002, 2003 and the first quarter of 2004.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES, ACQUISITIONS AND INVESTMENTS
In the second quarter of 2004, we invested approximately U.S.$48.6 million
in property, plant and equipment as capital expenditures, of which
approximately U.S.$4.0 million is related to the Cable Television segment
and U.S.$16.8 million is related to Sky Mexico. Additionally, we invested
approximately U.S.$2.7 million in long-term loans made to our Latin
American DTH joint-ventures.
DEBT
As of June 30, 2004, our long-term debt amounted to Ps.19,499.4 million,
including Ps.4,476.3 million from Sky Mexico which is not guaranteed by
Grupo Televisa, and our current portion of debt was Ps.163.0 million. As of
June 30, 2003, our long-term debt amounted to Ps.14,919.0 million, and our
current portion of debt was Ps.294.8 million.
In May 2004, we entered into a five-year credit agreement with a Mexican
bank for an aggregate principal amount of Ps.1,162.5 million, which net
proceeds were used to repay any outstanding amounts under the U.S.$100.0
million syndicated term loan.
On June 17, 2004, Fitch Ratings upgraded our long-term foreign currency
rating to "BBB" from "BBB-" and affirmed its outlook at stable. This
followed the announcement that Fitch had assigned country-ceiling ratings
above the long-term foreign currency rating of the sovereign for certain
countries, including Mexico. As a result of this announcement, Televisa is
one rating level above Mexico's sovereign long-term foreign currency
rating.
SHARE BUYBACK PROGRAM
During the second quarter of 2004, the Company repurchased approximately
46.5 million shares in the form of 15.5 million CPOs for a net amount of
approximately Ps.371.8 million in nominal terms.
DIVIDEND PAYMENT
On May 21, 2004, the Company made a Ps.3,850 million cash distribution to
shareholders, equivalent to Ps.1.219 per CPO, which includes a dividend
corresponding to the Series A and L shares and the cumulative preferred
dividend corresponding to Series D shares. Under our recently announced
dividend policy, we expect to continue paying dividends annually.
TELEVISION RATINGS AND AUDIENCE SHARE
National urban ratings and audience share reported by IBOPE confirm that in
the second quarter of 2004 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 70.5%; in prime time (16:00 to 23:00 -
Monday to Sunday), audience share amounted to 69.5%; and in sign-on to
sign-off (6:00 to 24:00 - Monday to Sunday), audience share amounted to
71.8%.
In June 2004, two of the nine teams, in which the Company has exclusive
rights to broadcast its home games, played the final games of the Mexican
Soccer Premier League, held in Guadalajara and in Mexico City. During the
latter, the transmission reached on average 72.5% audience share from 11:45
to 15:00, reaching its audience peak at 79.7%.
OUTLOOK FOR 2004
We are raising our guidance for the year. We now expect our Television
Broadcasting revenue to increase between 3% and 4% for the year. Despite
the production and transmission of the Olympic Games, we remain committed
to keeping costs and expenses of our Television Broadcasting segment flat
during the year. We therefore expect our Television Broadcasting segment to
exceed last year's operating income before depreciation and amortization
margin.
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, feature film production and distribution, 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, 2004 AND DECEMBER 31, 2003
(Millions of Mexican pesos in purchasing power as of June 30, 2004)
ASSETS
June 30, December 31,
2004 (1) 2003
(Unaudited) (Audited)
--------------- --------------
Current:
Available:
Cash Ps. 567.4 Ps. 377.8
Temporary investments 11,197.2 12,085.3
--------------- --------------
11,764.6 12,463.1
Trade notes and accounts receivable-net 4,114.3 10,775.6
Other accounts and notes receivable-net 806.6 907.8
Due from affiliated companies-net 163.3 449.6
Transmission rights and programming 3,172.4 3,592.6
Inventories 542.4 521.8
Other current assets 730.5 515.6
--------------- --------------
Total current assets 21,294.1 29,226.1
Transmission rights and programming 4,771.5 4,746.6
Investments 6,878.5 6,424.6
Property, plant and equipment-net 18,512.6 15,854.5
Goodwill and other intangible assets-net 9,495.3 9,349.8
Other assets 424.2 211.3
--------------- --------------
Total assets Ps. 61,376.2 Ps. 65,812.9
=============== ==============
(1) Includes assets of Sky Mexico as of June 30, 2004.
GRUPO TELEVISA, S. A.
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2004 AND DECEMBER 31, 2003
(Millions of Mexican pesos in purchasing power as of June 30, 2004)
LIABILITIES
June 30, December 31,
2004 (1) 2003
(Unaudited) (Audited(2))
--------------- --------------
Current:
Current portion of long-term debt Ps. 163.0 Ps. 289.8
Current portion of capital lease 69.1 -
Trade accounts payable 2,184.2 2,386.8
Customer deposits and advances 8,799.8 13,805.7
Taxes payable 735.1 1,308.0
Accrued interest 449.2 320.3
Other accrued liabilities 1,556.6 1,149.9
--------------- --------------
Total current liabilities 13,957.0 19,260.5
Long-term debt 19,499.4 14,943.5
Capital lease 1,408.4 -
Customer deposits and advances 414.8 426.4
Other long-term liabilities 671.8 720.0
Deferred taxes 780.8 1,173.2
DTH joint ventures 380.4 1,315.1
--------------- --------------
Total liabilities 37,112.6 37,838.7
--------------- --------------
STOCKHOLDERS' EQUITY
Majority interest:
Capital stock issued 9,246.2 8,341.0
Additional paid-in capital 3,938.5 3,938.5
--------------- --------------
13,184.7 12,279.5
--------------- --------------
Retained earnings:
Legal reserve 1,472.9 1,290.1
Reserve for repurchase of shares 5,371.0 5,371.0
Unappropriated earnings 11,273.2 13,009.4
Accumulated other comprehensive
loss (1,634.3) (2,280.0)
Net income for the period 933.9 3,655.1
--------------- --------------
17,416.7 21,045.6
--------------- --------------
Shares repurchased (6,098.3) (6,447.1)
--------------- --------------
Total majority interest 24,503.1 26,878.0
Minority interest (239.5) 1,096.2
--------------- --------------
Total stockholders' equity 24,263.6 27,974.2
--------------- --------------
Total liabilities and
stockholders' equity Ps. 61,376.2 Ps. 65,812.9
=============== ==============
(1) Includes liabilities, accumulated results and minority interest of Sky
Mexico as of June 30, 2004.
(2) Certain reclassifications have been made to the 2003 Audited Financial
Statements to conform to classifications used in the 2004 Unaudited
Financial Statements.
GRUPO TELEVISA, S. A.
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(Millions of Mexican pesos in purchasing power as of June 30, 2004)
Three months ended June 30, Six months ended June 30,
2004 (1) 2003 2004 (1) 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------- -------------- -------------- ---------------
Net sales Ps. 7,456.5 Ps. 5,977.9 Ps. 12,690.5 Ps. 10,996.3
Cost of sales 3,705.9 3,118.7 6,690.9 6,051.1
--------------- -------------- -------------- ---------------
Gross profit 3,750.6 2,859.2 5,999.6 4,945.2
--------------- -------------- -------------- ---------------
Operating expenses:
Selling 566.5 402.9 956.7 773.7
Administrative 425.8 373.1 782.8 727.6
--------------- -------------- -------------- ---------------
992.3 776.0 1,739.5 1,501.3
--------------- -------------- -------------- ---------------
Operating income before depreciation
and amortization 2,758.3 2,083.2 4,260.1 3,443.9
Depreciation and amortization 537.1 387.7 877.8 781.7
--------------- -------------- -------------- ---------------
Operating income 2,221.2 1,695.5 3,382.3 2,662.2
--------------- -------------- -------------- ---------------
Integral cost of financing:
Interest expense 413.6 316.0 768.7 679.3
Interest income (168.4) (196.9) (320.1) (370.3)
Foreign exchange loss (gain) - net 146.1 (117.3) 121.9 (4.6)
Foreign exchange result - hedged (217.6) 220.5 (186.0) 12.6
(Gain) loss from monetary position-net (25.1) (42.4) 133.7 52.1
--------------- -------------- -------------- ---------------
148.6 179.9 518.2 369.1
--------------- -------------- -------------- ---------------
Restructuring and non-recurring charges 14.2 44.9 115.3 99.6
--------------- -------------- -------------- ---------------
Other expense (income)-net 234.7 (147.8) 356.7 13.2
--------------- -------------- -------------- ---------------
Income before taxes 1,823.7 1,618.5 2,392.1 2,180.3
--------------- -------------- -------------- ---------------
Income tax and assets tax 460.6 419.4 619.8 610.5
Employees' profit sharing 2.1 1.5 2.7 3.2
--------------- -------------- -------------- ---------------
462.7 420.9 622.5 613.7
--------------- -------------- -------------- ---------------
Income before equity in income of
affiliates, cumulative effect of accounting
change and minority interest 1,361.0 1,197.6 1,769.6 1,566.6
Equity in income of affiliates - net 103.5 135.1 148.0 6.8
Cummulative loss effect of acounting change - net (992.0) - (992.0) -
Minority interest (10.9) (12.2) 8.3 7.9
--------------- -------------- -------------- ---------------
Net income Ps. 461.6 Ps. 1,320.5 Ps. 933.9 Ps. 1,581.3
=============== ============== ============== ===============
(1) Includes results of Sky Mexico for the three months ended June 30, 2004.
NATIONAL URBAN RATINGS AND AUDIENCE SHARE FOR 2ND, 3RD AND 4TH QUARTERS OF
2003 AND 1ST AND 2ND QUARTERS OF 2004(1):
SIGN-ON TO SIGN-OFF -- 6:00 TO 24:00, MONDAY TO SUNDAY
-------------------------------------------------------------------------------------------------------------------------
APR MAY JUN JUL AUG SEP OCT NOV DEC 2003 JAN FEB MAR APR MAY JUNE 2Q04
-------------------------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 11.4 11.2 11.4 11.5 11.9 12.2 12.3 11.7 10.8 11.6 11.5 11.3 12.2 11.4 11.3 11.5 11.4
Share (%) 30.6 30.9 30.6 30.6 31.7 32.2 32.0 30.8 29.8 30.9 29.7 28.9 30.9 30.2 30.1 30.8 30.3
TOTAL TELEVISA(2)
Rating 26.6 26.1 26.5 27.1 26.7 27.0 28.3 27.8 25.8 26.9 27.3 27.7 28.5 27.3 26.9 26.7 27.0
Share (%) 71.4 72.0 71.5 71.8 71.1 71.3 73.3 73.1 71.1 71.8 70.5 70.9 72.0 72.1 71.9 71.5 71.8
-------------------------------------------------------------------------------------------------------------------------
PRIME TIME - 16:00 TO 23:00, MONDAY TO SUNDAY(3)
------------------------------------------------------------------------------------------------------------------------------------
APR MAY JUN JUL AUG SEP OCT NOV DEC 2003 JAN FEB MAR APR MAY JUNE 2Q04
------------------------------------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 17.6 17.3 18.0 17.9 18.5 18.5 18.2 16.9 15.4 17.7 17.2 16.7 18.4 16.9 16.4 16.2 16.5
Share (%) 32.9 33.1 33.2 33.1 34.4 34.0 33.0 30.6 29.3 32.5 30.3 29.7 32.2 31.5 30.9 30.7 31.1
TOTAL TELEVISA(2)
Rating 37.3 36.6 37.6 38.2 37.6 37.9 39.9 38.7 35.7 38.1 38.6 38.6 40.0 37.5 36.8 36.5 36.9
Share (%) 69.8 69.9 69.2 70.4 69.7 69.8 72.2 70.3 68.1 70.1 68.0 68.4 70.0 69.9 69.3 69.4 69.5
------------------------------------------------------------------------------------------------------------------------------------
WEEKDAY PRIME TIME--19:00 TO 23:00, MONDAY TO FRIDAY(3)
------------------------------------------------------------------------------------------------------------------------------------
APR MAY JUN JUL AUG SEP OCT NOV DEC 2003 JAN FEB MAR APR MAY JUNE 2Q04
------------------------------------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 24.0 23.6 24.3 22.8 24.7 23.8 23.2 19.6 18.9 22.8 21.0 20.9 22.4 20.8 18.0 17.9 18.9
Share (%) 39.4 39.6 38.8 36.9 39.5 37.9 36.0 30.7 31.7 36.5 32.2 31.7 33.8 33.8 30.2 30.4 31.5
TOTAL TELEVISA(2)
Rating 44.7 43.4 44.9 44.0 44.8 44.8 47.8 45.0 40.7 45.0 44.8 45.9 47.1 44.0 41.8 41.2 42.3
Share (%) 73.4 72.8 71.7 71.3 71.7 71.4 74.4 70.7 68.0 72.0 68.7 69.6 71.1 71.6 70.0 70.1 70.5
------------------------------------------------------------------------------------------------------------------------------------
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 25 other cities with a
population of over 400,000 people. "Ratings" for a period refers to the
number of television sets tuned into the Company's programs as a percentage
of the total number of all television households. "Audience share" is the
number of television sets tuned into the Company's programs as a percentage
of the number of households watching conventional over-the-air television
during that period, without regard to the number of viewers.
2) "Total Televisa" includes the Company's four networks as well as all
local affiliates (including affiliates of Channel 4, most of which receive
only a portion of their daily programming from Channel 4). Programming on
affiliates of Channel 4 is generally broadcast in 12 of the 28 cities that
are covered by national surveys. Programming on Channel 9 affiliates is
broadcast in all of the cities that are covered by national surveys.
3) "Televisa Prime Time" is the time during which the Company generally
charges its highest rates for its networks.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
--------------------------------
(Registrant)
Dated: July 27, 2004 By /s/ Jorge Lutteroth Echegoyen
------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President