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 2006
GRUPO TELEVISA, S.A.
-------------------------------------------------
(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Santa 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
------- -------
(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: 2006
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 AND 2005
(Thousands of Mexican Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF ----------------------------------------------------------------------
S Amount % Amount %
-----------------------------------------------------------------------------------------------------------------------------
S01 TOTAL ASSETS 72,423,736 100 63,863,394 100
s02 CURRENT ASSETS 39,907,169 55 21,744,622 34
s03 CASH AND SHORT-TERM INVESTMENTS 16,349,132 23 11,598,900 18
s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 5,869,729 8 4,219,220 7
s05 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 1,109,411 2 1,133,978 2
s06 INVENTORIES 3,710,261 5 3,964,917 6
s07 OTHER CURRENT ASSETS 12,868,636 18 827,607 1
S08 LONG-TERM ASSETS 2,639,436 4 6,866,620 11
s09 ACCOUNTS AND NOTES RECEIVABLE (NET) - - - -
s10 INVESTMENT IN SHARES OF NON-CONSOLIDATED 1,130,861 2 6,677,360 10
SUBSIDIARIES AND ASSOCIATES
s11 OTHER INVESTMENTS 1,508,575 2 189,260 0
S12 PROPERTY, PLANT AND EQUIPMENT (NET) 20,429,396 28 19,851,931 31
s13 LAND AND BUILDINGS 13,718,485 19 13,705,922 21
s14 MACHINERY AND INDUSTRIAL EQUIPMENT 21,471,475 30 20,342,347 32
s15 OTHER EQUIPMENT 3,333,230 5 3,150,685 5
s16 ACCUMULATED DEPRECIATION 18,972,521 26 17,759,040 28
s17 CONSTRUCTION IN PROGRESS 878,727 1 412,017 1
s18 INTANGIBLE ASSETS AND DEFERRED CHARGES (NET) 5,343,087 7 11,008,061 17
s19 OTHER ASSETS 4,104,648 6 4,392,160 7
S20 TOTAL LIABILITIES 39,187,098 100 36,033,536 100
S21 CURRENT LIABILITIES 7,200,197 18 5,771,215 16
s22 SUPPLIERS 3,436,089 9 2,394,260 7
s23 BANK LOANS 125,152 0 131,801 0
s24 STOCK MARKET LOANS 962,250 2 59,871 0
s25 TAXES PAYABLE 375,730 1 444,475 1
s26 OTHER CURRENT LIABILITIES 2,300,976 6 2,740,808 8
S27 LONG-TERM LIABILITIES 19,128,903 49 20,487,078 57
s28 BANK LOANS 7,176,030 18 3,956,177 11
s29 STOCK MARKET LOANS 10,791,625 28 15,258,489 42
s30 OTHER LOANS 1,161,248 3 1,272,412 4
s31 DEFERRED LIABILITIES 10,210,791 26 7,586,716 21
s32 OTHER NON CURRENT LIABILITIES 2,647,207 7 2,188,527 6
S33 CONSOLIDATED STOCKHOLDERS' EQUITY 33,236,638 100 27,829,858 100
s34 MINORITY INTEREST 1,455,260 4 219,773 1
S35 MAJORITY INTEREST 31,781,378 96 27,610,085 99
S36 CONTRIBUTED CAPITAL 14,288,181 43 14,449,769 52
s79 CAPITAL STOCK 9,971,827 30 10,133,415 36
s39 PREMIUM ON SALES OF SHARES 4,316,354 13 4,316,354 16
s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES - 0 - 0
S41 EARNED CAPITAL 17,493,197 53 13,160,316 47
s42 RETAINED EARNINGS AND CAPITAL RESERVE 31,369,114 94 25,913,251 93
s44 ACCUMULATED OTHER COMPREHENSIVE RESULT (6,669,715) (20) (5,777,670) (21)
s80 SHARES REPURCHASED (7,206,202) (22) (6,975,265) (25)
---------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
BREAKDOWN OF MAJOR CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF -------------------------------------------------------------------
S Amount % Amount %
------------------------------------------------------------------------------------------------------------------------------------
S03 CASH AND SHORT-TERM INVESTMENTS 16,349,132 100 11,598,900 100
s46 CASH 1,031,986 6 438,647 4
s47 SHORT-TERM INVESTMENTS 15,317,146 94 11,160,253 96
S07 OTHER CURRENT ASSETS 12,868,636 100 827,607 100
s81 DERIVATIVE FINANCIAL INSTRUMENTS - - - -
s82 DISCONTINUED OPERATIONS - - - -
s83 OTHER 12,868,636 100 827,607 100
S18 INTANGIBLE ASSETS AND DEFERRED CHARGES (NET) 5,343,087 100 11,008,061 100
s48 DEFERRED EXPENSES (NET) 2,877,354 54 3,096,959 28
s49 GOODWILL 2,465,733 46 7,911,102 72
s51 OTHER - - - -
S19 OTHER ASSETS 4,104,648 100 4,392,160 100
s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS - - - -
s85 DERIVATIVE FINANCIAL INSTRUMENTS - - - -
s50 DEFERRED TAXES - - - -
s86 DISCONTINUED OPERATIONS - - - -
s87 OTHER 4,104,648 100 4,392,160 100
S21 CURRENT LIABILITIES 7,200,197 100 5,771,215 100
s52 FOREIGN CURRENCY LIABILITIES 2,330,962 32 2,006,804 35
s53 MEXICAN PESOS LIABILITIES 4,869,235 68 3,764,411 65
S26 OTHER CURRENT LIABILITIES 2,300,976 100 2,740,808 100
s88 DERIVATIVE FINANCIAL INSTRUMENTS 241,539 10 325,862 12
s89 ACCRUED INTEREST 88,421 4 95,919 3
s68 PROVISIONS - - - -
s90 DISCONTINUED OPERATIONS - - - -
s58 OTHER 1,971,016 86 2,319,027 85
S27 LONG-TERM LIABILITIES 19,128,903 100 20,487,078 100
s59 FOREIGN CURRENCY LIABILITIES 11,986,443 63 15,963,687 78
s60 MEXICAN PESOS LIABILITIES 7,142,460 37 4,523,391 22
S31 DEFERRED LIABILITIES 10,210,791 100 7,586,716 100
s65 NEGATIVE GOODWILL - - - -
s67 OTHER 10,210,791 100 7,586,716 100
S32 OTHER NON CURRENT LIABILITIES 2,647,207 100 2,188,527 100
s66 DEFERRED TAXES 1,879,679 71 1,550,858 71
s91 LABOR OBLIGATIONS 232,468 9 185,784 8
s92 DISCONTINUED OPERATIONS - - - -
s69 OTHER LIABILITIES 535,060 20 451,885 21
S79 CAPITAL STOCK 9,971,827 100 10,133,415 100
s37 CAPITAL STOCK (NOMINAL) 2,483,923 25 2,524,174 25
s38 RESTATEMENT OF CAPITAL STOCK 7,487,904 75 7,609,241 75
S42 RETAINED EARNINGS AND CAPITAL RESERVE 31,369,114 100 25,913,251 100
s93 LEGAL RESERVE 2,026,683 6 1,842,750 7
s43 RESERVE FOR REPURCHASE OF SHARES 4,391,272 14 5,886,290 23
s94 OTHER RESERVES - - - -
s95 RETAINED EARNINGS 18,801,627 60 14,486,680 56
s45 NET INCOME 6,149,532 20 3,697,531 14
S44 ACCUMULATED OTHER COMPREHENSIVE RESULT (6,669,715) 100 (5,777,670) 100
s70 ACCUMULATED MONETARY RESULT (33,395) 1 (33,395) 1
s71 RESULT FROM HOLDING NON-MONETARY ASSETS (2,035,294) 31 (2,248,543) 39
s96 CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION (1,411,338) 21 (1,792,392) 31
s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS - - - -
s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES (3,060,242) 46 (3,060,242) 53
s99 LABOR OBLIGATIONS ADJUSTMENT - - - -
s100 OTHER (129,446) 2 1,356,902 (23)
CONSOLIDATED FINANCIAL STATEMENTS
OTHER CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
----------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF ---------------------------------------------
S Amount Amount
----------------------------------------------------------------------------------------------------
s57 OTHER CURRENT LIABILITIES WITH COST (S26) 85,090 77,475
s63 OTHER LOANS WITH COST (S32) - -
s72 WORKING CAPITAL 32,706,972 15,973,407
s73 PENSIONS AND SENIORITY PREMIUMS 1,519,047 1,349,720
s74 EXECUTIVES (*) 35 34
s75 EMPLOYEES (*) 15,968 14,852
s76 WORKERS (*) - -
s77 OUTSTANDING SHARES (*) 337,420,219,071 340,439,748,870
s78 REPURCHASED SHARES (*) 21,790,830,984 28,833,621,531
s101 RESTRICTED CASH 125,412 140,453
s102 NET DEBT OF NON CONSOLIDATED COMPANIES 14,885,115 16,468,085
----------------------------------------------------------------------------------------------------
(*) THESE CONCEPTS ARE STATED IN UNITS
CONSOLIDATED STATEMENTS OF INCOME
FROM JANUARY 1 THROUGH SEPTEMBER 30, 2006 AND 2005
(Thousands of Mexican Pesos)
FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF --------------------------------------------------------------------
R Amount % Amount %
------------------------------------------------------------------------------------------------------------------------------------
r01 NET SALES 26,776,510 100 23,392,306 100
r02 COST OF SALES 13,133,327 49 12,273,426 52
R03 GROSS PROFIT 13,643,183 51 11,118,880 48
r04 OPERATING EXPENSES 4,054,555 15 3,632,469 16
R05 OPERATING INCOME 9,588,628 36 7,486,411 32
r06 INTEGRAL FINANCING COST 687,303 3 1,499,999 6
R07 INCOME AFTER INTEGRAL FINANCING COST 8,901,325 33 5,986,412 26
r08 OTHER EXPENSE AND INCOME, NET 141,919 1 376,879 2
r44 NON-RECURRING CHARGES 545,439 2 213,212 1
R09 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT
SHARING 8,213,967 31 5,396,321 23
r10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT
SHARING 1,411,751 5 1,245,937 5
R11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT
SHARING 6,802,216 25 4,150,384 18
r12 SHARE IN NET INCOME OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES (326,436) (1) 181,634 1
R13 CONSOLIDATED NET INCOME OF CONTINUING
OPERATIONS 6,475,780 24 4,332,018 19
r14 INCOME FROM DISCONTINUED OPERATIONS 0 0 0 0
R15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
ITEMS 6,475,780 24 4,332,018 19
r16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) 0 0 0 0
r17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 0 0 186,881 1
R18 NET CONSOLIDATED INCOME 6,475,780 24 4,145,137 18
r19 NET INCOME OF MINORITY INTEREST 326,248 1 447,606 2
R20 NET INCOME OF MAJORITY INTEREST 6,149,532 23 3,697,531 16
------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF -------------------------------------------------------------------
R Amount % Amount %
-----------------------------------------------------------------------------------------------------------------------------------
R01 NET SALES 26,776,510 100 23,392,306 100
r21 DOMESTIC 23,599,965 88 20,594,571 88
r22 FOREIGN 3,176,545 12 2,797,735 12
r23 TRANSLATED INTO DOLLARS (***) 289,408 1 249,672 1
R06 INTEGRAL FINANCING COST 687,303 100 1,499,999 100
r24 INTEREST EXPENSE 1,433,511 209 1,619,948 108
r42 LOSS (GAIN) ON RESTATEMENT OF UDI'S 21,370 3 19,026 1
r45 OTHER FINANCIAL COSTS 0 0 0 0
r26 INTEREST INCOME 854,735 124 757,662 51
r46 OTHER FINANCIAL PRODUCTS 0 0 0 0
r25 FOREIGN EXCHANGE LOSS (GAIN), NET (14,801) (2) 605,531 40
r28 RESULT FROM MONETARY POSITION 101,958 15 13,156 1
R10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING 1,411,751 100 1,245,937 100
r32 INCOME TAX AND ASSET TAX, CURRENT 1,266,096 90 1,074,597 86
r33 INCOME TAX AND ASSET TAX, DEFERRED 136,449 10 166,557 13
r34 EMPLOYEES' PROFIT SHARING, CURRENT 9,206 1 4,783 0
r35 EMPLOYEES' PROFIT SHARING, DEFERRED 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
--------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF -----------------------------------
R Amount Amount
--------------------------------------------------------------------------------
r36 TOTAL SALES 28,629,434 25,290,713
r37 TAX RESULT FOR THE YEAR 6,102,568 1,752,933
r38 NET SALES (**) 36,666,488 32,301,295
r39 OPERATING INCOME (**) 13,171,487 10,494,607
r40 NET INCOME OF MAJORITY INTEREST (**) 8,728,648 5,643,040
r41 NET CONSOLIDATED INCOME (**) 9,718,052 6,274,296
r47 DEPRECIATION AND AMORTIZATION 1,950,220 1,790,625
--------------------------------------------------------------------------------
(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
FROM JULY 1 THROUGH SEPTEMBER 30, 2006 AND 2005
(Thousands of Mexican Pesos)
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF ---------------------------------------------------------------
RT Amount % Amount %
----------------------------------------------------------------------------------------------------------------------------
rt01 NET SALES 9,220,060 100 8,448,168 100
rt02 COST OF SALES 4,382,821 48 4,267,296 51
RT03 GROSS PROFIT 4,837,239 52 4,180,872 49
rt04 OPERATING EXPENSES 1,320,750 14 1,257,117 15
RT05 OPERATING INCOME 3,516,489 38 2,923,755 35
rt06 INTEGRAL FINANCING COST 669,903 7 475,070 6
RT07 INCOME AFTER INTEGRAL FINANCING COST 2,846,586 31 2,448,685 29
rt08 OTHER EXPENSE AND INCOME, NET 44,540 0 98,587 1
rt44 NON-RECURRING CHARGES 8,738 0 19,109 0
RT09 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT
SHARING 2,793,308 30 2,330,989 28
rt10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT
SHARING (60,459) (1) 446,083 5
RT11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT
SHARING 2,853,767 31 1,884,906 22
rt12 SHARE IN NET INCOME OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES (137,241) (1) 18,430 0
RT13 CONSOLIDATED NET INCOME OF CONTINUING
OPERATIONS 2,716,526 29 1,903,336 23
rt14 INCOME FROM DISCONTINUED OPERATIONS 0 0 0 0
RT15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
ITEMS 2,716,526 29 1,903,336 23
rt16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) 0 0 0 0
rt17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 0 0 0 0
RT18 NET CONSOLIDATED INCOME 2,716,526 29 1,903,336 23
rt19 NET INCOME OF MINORITY INTEREST 230,163 2 171,355 2
RT20 NET INCOME OF MAJORITY INTEREST 2,486,363 27 1,731,981 21
----------------------------------------------------------------------------------------------------------------------------
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
--------------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF ---------------------------------------------------------------
RT Amount % Amount %
--------------------------------------------------------------------------------------------------------------------------------
RT01 NET SALES 9,220,060 100 8,448,168 100
rt21 DOMESTIC 8,100,911 88 7,470,277 88
rt22 FOREIGN 1,119,149 12 977,891 12
rt23 TRANSLATED INTO DOLLARS (***) 111,288 1 88,394 1
RT06 INTEGRAL FINANCING COST 669,903 100 475,070 100
rt24 INTEREST EXPENSE 468,485 70 487,910 103
rt42 LOSS (GAIN) ON RESTATEMENT OF UDI'S 11,367 2 6,052 1
rt45 OTHER FINANCIAL COSTS 0 0 0 0
rt26 INTEREST INCOME 274,806 41 173,658 37
rt46 OTHER FINANCIAL PRODUCTS 0 0 0 0
rt25 FOREIGN EXCHANGE LOSS (GAIN), NET 425,920 64 185,472 39
rt28 RESULT FROM MONETARY POSITION 38,937 6 (30,706) (6)
RT10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING (60,459) 100 446,083 100
rt32 INCOME TAX AND ASSET TAX, CURRENT (277,507) 459 250,849 56
rt33 INCOME TAX AND ASSET TAX, DEFERRED 213,099 (352) 193,885 43
rt34 EMPLOYEES' PROFIT SHARING, CURRENT 3,949 (7) 1,349 0
rt35 EMPLOYEES' PROFIT SHARING, DEFERRED 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
--------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF ---------------------------------------
RT Amount Amount
--------------------------------------------------------------------------------
rt47 DEPRECIATION AND AMORTIZATION 642,696 645,029
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 THROUGH SEPTEMBER 30, 2006 AND 2005
(Thousands of Mexican Pesos)
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF ------------------------------------------------------
C Amount Amount
-----------------------------------------------------------------------------------------------------------------------------
c01 CONSOLIDATED NET INCOME 6,475,780 4,145,137
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE
USING RESOURCES 2,462,401 2,213,071
C03 RESOURCES FROM NET INCOME FOR THE YEAR 8,938,181 6,358,208
c04 RESOURCES PROVIDED OR USED IN OPERATION (176,531) (947,951)
C05 RESOURCES PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 8,761,650 5,410,257
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL
FINANCING ACTIVITIES 514,358 (4,182,071)
c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL
FINANCING ACTIVITIES (3,683,597) (5,083,122)
C08 RESOURCES PROVIDED BY (USED FOR) FINANCING
ACTIVITIES (3,169,239) (9,265,193)
C09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES (4,385,776) (2,166,304)
c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
INVESTMENTS 1,206,635 (6,021,240)
c11 CASH AND SHORT-TERM INVESTMENTS AT THE
BEGINNING OF PERIOD 15,142,497 17,620,140
c12 CASH AND SHORT-TERM INVESTMENTS AT THE END
OF PERIOD 16,349,132 11,598,900
-----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
FINAL PRINTING
---------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF --------------------------------------------------
C Amount Amount
---------------------------------------------------------------------------------------------------------------------------
C02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE
USING RESOURCES 2,462,401 2,213,071
c13 + DEPRECIATION AND AMORTIZATION FOR THE YEAR 1,950,220 1,790,624
c41 + (-) OTHER ITEMS 512,181 422,447
C04 RESOURCES PROVIDED OR USED IN OPERATION (176,531) (947,951)
c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 8,369,365 7,671,276
c19 + (-) DECREASE (INCREASE) IN INVENTORIES 269,303 830,277
c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS
RECEIVABLE AND OTHER ASSETS (648,270) (7,984)
c21 + (-) INCREASE (DECREASE) IN SUPPLIERS 408,479 133,420
c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES (8,575,408) (9,574,940)
C06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL
FINANCING ACTIVITIES 514,358 (4,182,071)
c23 + BANK FINANCING 3,500,000 -
c24 + STOCK MARKET FINANCING - 6,723,373
c25 + DIVIDEND RECEIVED - -
c26 + OTHER FINANCING - -
c27 (-) BANK FINANCING AMORTIZATION (124,736) (1,218,252)
c28 (-) STOCK MARKET FINANCING AMORTIZATION (3,158,780) (9,008,049)
c29 (-) OTHER FINANCING AMORTIZATION (16,199) (102,585)
c42 + (-) OTHER ITEMS 314,073 (576,558)
C07 RESOURCES PROVIDED BY (USED FOR) INTERNAL
FINANCING ACTIVITIES (3,683,597) (5,083,122)
c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK - -
c31 (-) DIVIDENDS PAID (1,102,677) (4,412,004)
c32 + PREMIUM ON SALE OF SHARES - -
c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES - -
c43 + (-) OTHER ITEMS (2,580,920) (671,118)
C09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES (4,385,776) (2,166,304)
c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS (1,145,854) 82,716
c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (2,036,650) (1,629,405)
c36 (-) INCREASE IN CONSTRUCTION IN PROGRESS - -
c37 + (-) SALE OF OTHER PERMANENT INVESTMENTS - -
c38 + SALE OF TANGIBLE FIXED ASSETS 350,874 240,435
c39 + (-) OTHER ITEMS (1,554,146) (860,050)
---------------------------------------------------------------------------------------------------------------------------
RATIOS
CONSOLIDATED
FINAL PRINTING
--------------------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
P
--------------------------------------------------------------------------------------------------------------------------
YIELD
p01 NET INCOME TO NET SALES 24.18 % 17.72 %
p02 NET INCOME TO STOCKHOLDERS' EQUITY (**) 27.46 % 20.43 %
p03 NET INCOME TO TOTAL ASSETS (**) 13.41 % 9.82 %
p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 17.57 % 96.53 %
p05 RESULT FROM MONETARY POSITION TO NET INCOME (1.57) % (0.31) %
ACTIVITY
p06 NET SALES TO NET ASSETS (**) 0.50 times 0.50 times
p07 NET SALES TO FIXED ASSETS (**) 1.79 times 1.62 times
p08 INVENTORIES TURNOVER (**) 4.85 times 4.27 times
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 51.46 days 42.34 days
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 9.69 % 11.01 %
LEVERAGE
p11 TOTAL LIABILITIES TO TOTAL ASSETS 54.10 % 56.42 %
p12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.17 times 1.29 times
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 36.53 % 49.87 %
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 93.63 % 103.19 %
p15 OPERATING INCOME TO INTEREST PAID 6.68 times 4.62 times
p16 NET SALES TO TOTAL LIABILITIES (**) 0.93 times 0.89 times
LIQUIDITY
p17 CURRENT ASSETS TO CURRENT LIABILITIES 5.54 times 3.76 times
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT
LIABILITIES 5.02 times 3.08 times
p19 CURRENT ASSETS TO TOTAL LIABILITIES 1.01 times 0.60 times
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 227.06 % 200.97 %
STATEMENTS OF CHANGES
p21 RESOURCES FROM NET INCOME TO NET SALES 33.38 % 27.18 %
p22 RESOURCES FROM CHANGES IN WORKING CAPITAL TO
NET SALES (0.65) % (4.05) %
p23 RESOURCES GENERATED (USED) IN OPERATING TO
INTEREST PAID 6.11 times 3.33 times
p24 EXTERNAL FINANCING TO RESOURCES PROVIDED BY
(USED FOR) FINANCING (16.22) % 45.13 %
p25 INTERNAL FINANCING TO RESOURCES PROVIDED BY
(USED FOR) FINANCING 116.22 % 54.86 %
p26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO
RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES 46.43 % 75.21 %
--------------------------------------------------------------------------------------------------------------------------
(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS.
DATA PER SHARE
CONSOLIDATED FINANCIAL STATEMENT
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------------
CONCEPTS CURRENT YEAR PREVIOUS YEAR
REF --------------------------------------------------------
D AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------------------------------
d01 BASIC PROFIT PER ORDINARY SHARE (**) $ .03 $ .02
d02 BASIC PROFIT PER PREFERRED SHARE (**) $ .00 $ .00
d03 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00
d04 CONTINUING OPERATING PROFIT PER COMMON SHARE (**) $ .03 $ .02
d05 EFFECT OF DISCONTINUED OPERATION ON CONTINUING
OPERATING PROFIT PER SHARE (**) $ .00 $ .00
d06 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
d07 EFFECT BY CHANGES IN ACCOUNTING POLICIES ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
d08 CARRYING VALUE PER SHARE $ .09 $ .08
d09 CASH DIVIDEND ACCUMULATED PER SHARE $ .00 $ .01
d10 DIVIDEND IN SHARES PER SHARE .00 shares .00 shares
d11 MARKET PRICE TO CARRYING VALUE 4.26 times 4.06 times
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) 15.66 times 19.94 times
d13 MARKET PRICE TO BASIC PROFIT PER PREFERRED SHARE (**) .00 times .00 times
----------------------------------------------------------------------------------------------------------------------------------
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS.
FINANCIAL STATEMENT NOTES (1)
CONSOLIDATED
FINAL PRINTING
--------------------------------------------------------------------------------
STATEMENT OF CHANGES - ANALYSIS OF MAJOR CONCEPTS
LINE C43: "OTHER ITEMS" INCLUDES PS.512,938 OF RESALE OF SHARES,
PS.(2,468,775) OF REPURCHASE OF SHARES, PS.58,740 OF SHARES COMPENSATION
PLAN, PS.365,961 OF BENEFIT DILUTION IN GRUPO INNOVA PS.(675,090) FOR
CAPITAL DISTRIBUTION IN CONNECTION WITH THE ACQUISITION OF MINORITY
INTEREST IN GRUPO INNOVA AND PS.(374,694) RELATED TO THE RECOGNITION OF
SHARES OF UNIVISION AS AN AVAILABLE-FOR-SALE INVESTMENT.
THIS PRESENTATION WAS MADE AS DISCLOSED ABOVE DUE TO THE FACT THAT THE
CURRENT FORMAT FOR THE STATEMENT OF CHANGES IN FINANCIAL POSITION IS
RESTRICTED TO CERTAIN STANDARD CONCEPTS.
ANALYSIS OF PAID CAPITAL STOCK
CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK
NUMBER OF SHARES (Thousands of Mexican Pesos)
-----------------------------------------------------------------------------------------------------
NOMINAL VALID FIXED VARIABLE FREE
SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE
------------------------------------------------------------------------------------------------------------------------------------
A 113,707,239,240 113,707,239,240 852,636
------------------------------------------------------------------------------------------------------------------------------------
B 53,496,609,979 53,496,609,979 411,974
------------------------------------------------------------------------------------------------------------------------------------
D 85,108,184,926 85,108,184,926 629,782
------------------------------------------------------------------------------------------------------------------------------------
L 85,108,184,926 85,108,184,926 629,782
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 337,420,219,071 0 252,312,034,145 85,108,184,926 2,524,174 0
------------------------------------------------------------------------------------------------------------------------------------
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE THE INFORMATION WAS SENT: 337,420,219,071
---------------
NOTES:
THE TABLE ABOVE REFLECTS OUTSTANDING SHARES PLUS THE SHARES
REPURCHASED REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS.
EFFECTIVE MARCH 22, 2006, WAS CHANGE OF 20 TO 5 CPOS, WHO REPRESENTING
ANY GDS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA DATE: 10/27/2006
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.
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: CHIEF FINANCIAL OFFICER
NAME: LIC. SALVI FOLCH VIADERO
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-80
FAX: 5261-20-39
E-MAIL: sfolch@televisa.com.mx
----------------------
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING CORPORATE INFORMATION
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL
NAME: LIC. JOAQUIN BALCARCEL SANTA CRUZ
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-33
FAX: 5261-25-46
E-MAIL: jbalcarcel@televisa.com.mx
--------------------------
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING SHARE REPURCHASE INFORMATION
POSITION: DIRECTOR FINANCIAL OFFICER
NAME: LIC. GUADALUPE PHILLIPS MARGAIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 3
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-21-35
FAX: 5261-25-24
E-MAIL: gphilips@televisa.com.mx
------------------------
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR LEGAL MATTERS
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL
NAME: LIC. JOAQUIN BALCARCEL SANTA CRUZ
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-33
FAX: 5261-25-46
E-MAIL: jbalcarcel@televisa.com.mx
--------------------------
--------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING FINANCIAL INFORMATION
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 RELEVANT EVENTS
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 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: SECRETARY 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 FOR PAYMENT
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
----------------------
--------------------------------------------------------------------------------
BOARD OF DIRECTORS
--------------------------------------------------------------------------------
POSITION: PRESIDENT
NAME: EMILIO FERNANDO AZCARRAGA JEAN
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: EMILIO FERNANDO AZCARRAGA JEAN
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOAQUIN BALCARCEL SANTA CRUZ
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ALFONSO DE ANGOITIA NORIEGA
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: SALVI RAFAEL FOLCH VIADERO
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: JULIO BARBA HURTADO
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JORGE LUTTEROTH ECHEGOYEN
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: JOSE ANTONIO BASTON PATINO
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: RAFAEL CARABIAS PRINCIPE
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: MANUEL J. CUTILLAS COVANI
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: SALVI RAFAEL FOLCH VIADERO
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: GILBERTO PEREZALONSO CIFUENTES
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: FRANCISCO JOSE CHEVEZ ROBELO
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: FERNANDO SENDEROS MESTRE
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JUAN FERNANDO CALVILLO ARMENDARIZ
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: BERNARDO GOMEZ MARTINEZ
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: LEOPOLDO GOMEZ GONZALEZ BLANCO
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: CLAUDIO X. GONZALEZ LAPORTE
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: GUILLERMO NAVA GOMEZ-TAGLE
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ENRIQUE KRAUZE KLEINBORT
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: MAXIMILIANO ARTEAGA CARLEBACH
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ALEJANDRO QUINTERO INIGUEZ
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: FELIX ARAUJO RAMIREZ
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: MARIA ASUNCION ARAMBURUZABALA LARREGUI
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JUAN PABLO ANDRADE FRICH
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: CARLOS FERNANDEZ GONZALEZ
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: LUCRECIA ARAMBURUZABALA LARREGUI
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: CARLOS SLIM DOMIT
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOSE HEREDIA BRETON
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: LORENZO H. ZAMBRANO TREVINO
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: ALEXANDRE MOREIRA PENNA DA SILVA
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: PEDRO ASPE ARMELLA
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOSE ANTONIO LARA DEL OLMO
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ALBERTO BAILLERES GONZALEZ
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: RAUL MORALES MEDRANO
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ROBERTO HERNANDEZ RAMIREZ
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: ALBERTO MONTIEL CASTELLANOS
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: GERMAN LARREA MOTA VELASCO
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOSE LUIS FERNANDEZ FERNANDEZ
--------------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ENRIQUE FRANCISCO J. SENIOR HERNANDEZ
--------------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: HERBERT ALLEN III
--------------------------------------------------------------------------------
POSITION: STATUTORY AUDITOR
NAME: MARIO SALAZAR ERDMANN
--------------------------------------------------------------------------------
POSITION: ALTERNATE STATUTORY AUDITOR
NAME: JOSE MIGUEL ARRIETA MENDEZ
--------------------------------------------------------------------------------
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 CONTAINED 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
RELEVANT INFORMATION WHICH HAS BEEN OMITTED OR UNTRUE IN THIS QUARTERLY
REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY BE MISLEADING TO
INVESTORS.
---------------------------------- ----------------------------------
EMILIO AZCARRAGA JEAN SALVI FOLCH VIADERO
PRESIDENT AND CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
OFFICER
----------------------------------
JOAQUIN BALCARCEL SANTA CRUZ
VICE PRESIDENT - LEGAL AND
GENERAL COUNSEL
MEXICO, D.F., OCTOBER 26, 2006
ANALYSIS OF INVESTMENTS IN SHARES
SUBSIDIARIES
CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
NUMBER %
COMPANY NAME MAIN ACTIVITIES OF SHARES OWNERSHIP
-----------------------------------------------------------------------------------------------------------------------------------
1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND DEVELOPMENT OF
S.A. DE C.V. COMPANIES 20,496,879 100.00
2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 15,714,444 100.00
3 DTH EUROPA, S.A. PROMOTION AND DEVELOPMENT OF
COMPANIES 1,080,182 90.25
4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 747,105,580 100.00
5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 1,381,092 100.00
6 FACTUM MAS, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 5,486,461,136 100.00
7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS
S.A. DE C.V. AND MAGAZINES 258,859,269 100.00
8 CAMPUS AMERICA, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 418,881,301 100.00
9 PROMO-INDUSTRIAS PROMOTION AND DEVELOPMENT OF
METROPOLITANAS, S.A. DE C.V. COMPANIES 1,679,739 100.00
10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF
RADIO PROGRAMMING 76,070,313 50.00
11 TELEPARABOLAS, S.L. MAINTENANCE OF PARABOLIC DISHES 1,500 100.00
12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF TELEVISION 149,442,880 100.00
13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION OF TELEVISION 1,425,000 95.00
14 TELEVISA JUEGOS, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 65,249 100.00
15 TELEVISION INDEPENDIENTE DE PROMOTION AND DEVELOPMENT OF
MEXICO, S.A. DE C.V. COMPANIES 35,272,217 100.00
16 CAPITALIZED INTEGRAL COST OF FOR THE YEARS 1994, 1995, 1996 AND 1998 - -
FINANCING
-----------------------------------------------------------------------------------------------------------------------------------
ANALYSIS OF INVESTMENTS IN SHARES
ASSOCIATES
CONSOLIDATED
FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL AMOUNT
(THOUSANDS OF MEXICAN PESOS)
NUMBER % ------------------------------
COMPANY NAME MAIN ACTIVITIES OF SHARES OWNERSHIP ACQUISITION BOOK
COST VALUE
----------------------------------------------------------------------------------------------------------------------------------
1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR
BROADCASTING OF T.V. 33,000,000 30.00 137,000 45,767
2 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF
DIAMEX, S.A. DE C.V. ANIMATED CARTOONS 1,735,560 49.00 4,384 757
3 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING
S.A. DE C.V. OF BOOKS AND MAGAZINES 3,227,050 30.00 32,270 16,481
4 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF
TELEVISION PROGRAMMING 24,500 49.00 25 18,718
5 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN
DE C.V. MEXICO 2 100.00 4,898 1,217
6 MAS FONDOS, S.A. DE C.V. MUTUAL FUND DISTRIBUTION
COMPANY 99,758 46.55 99,758 (4,407)
7 METROS CUBICOS, S.A. DE C.V. PORTAL INTERNET 2,089,343 18.65 43,031 4,123
8 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN
C.V. MEXICO 14,100,000 40.00 1,062,811 481,109
9 CONTROLADORA VUELA
COMPANIA DE AVIACION, S.A. DE C.V. CARRIER AIRLINE 15 25.00 596,708 265,859
10 GESTORA DE INVERSIONES COMMERCIALIZATION OF
AUDIOVISUALES LA SEXTA S.A. TELEVISION PROGRAMMING 2,480,405 40.00 818,222 302,147
11 TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR
BROADCASTING OF T.V. 4,124,986 15.00 412 7,005
12 PUBLICIDAD VIRTUAL TV ADVERTISING
LATINOAMERICANA, LTDA SERVICES 1 100.00 20,985 (1,089)
13 TELEVISA EMI MUSIC, S.A DE C.V. MUSIC RECORDING 25 50.00 25 (6,826)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN ASSOCIATES 2,820,529 1,130,861
----------------------------------------------------------------------------------------------------------------------------------
OTHER PERMANENT INVESTMENTS 1,508,575
----------------------------------------------------------------------------------------------------------------------------------
TOTAL 2,820,529 2,639,436
----------------------------------------------------------------------------------------------------------------------------------
CREDIT BREAK DOWN
(Thousands of Mexican Pesos)
CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS DENOMINATED IN PESOS (THOUSANDS OF $)
--------------------------------------------------------------------
AMORTIZATION INTEREST TIME INTERVAL
--------------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
------------------------------------------------------------------------------------------------------------------------------------
BANKS
------------------------------------------------------------------------------------------------------------------------------------
FOREIGN TRADE
------------------------------------------------------------------------------------------------------------------------------------
SECURED
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS
------------------------------------------------------------------------------------------------------------------------------------
BANAMEX, S.A. 4/20/2016 8.74 2,100,000
BANAMEX, S.A. 4/23/2012 10.35 1,000,000 1,000,000
SANTANDER SERFIN 4/21/2016 8.98 1,400,000
BANAMEX, S.A. 5/21/2009 9.70 1,162,460
BANAMEX, S.A. 5/1/2008 8.93 120,000 480,000
BANK OF AMERICA 3/31/2010 6.62
SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 3.52
LEASING DE COLOMBIA 6/28/2009 13.79
LEASING DE OCCIDENTE 4/29/2007 15.86
------------------------------------------------------------------------------------------------------------------------------------
OTHER
------------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 120,000 - 480,000 1,162,460 1,000,000 4,500,000
------------------------------------------------------------------------------------------------------------------------------------
STOCK MARKET
------------------------------------------------------------------------------------------------------------------------------------
LISTED STOCK EXCHANGE
------------------------------------------------------------------------------------------------------------------------------------
UNSECURED
------------------------------------------------------------------------------------------------------------------------------------
SECURED
------------------------------------------------------------------------------------------------------------------------------------
PRIVATE PLACEMENTS
------------------------------------------------------------------------------------------------------------------------------------
UNSECURED
------------------------------------------------------------------------------------------------------------------------------------
UDI-DENOMINATED NOTES 4/13/2007 8.15 962,250
HOLDERS 9/13/2011 8.41
HOLDERS 3/11/2032 8.94
HOLDERS 3/18/2025 6.97
HOLDERS 9/19/2013 9.86
------------------------------------------------------------------------------------------------------------------------------------
SECURED
------------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK MARKET 0 962,250 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
------------------------------------------------------------------------------------------------------------------------------------
VARIOUS 9/30/2006 1,654,849
------------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS - 1,654,849 - - - -
------------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES AND
OTHER CREDITS
------------------------------------------------------------------------------------------------------------------------------------
VARIOUS 9/30/2006 1,537,563
VARIOUS 9/7/2006 11.50
------------------------------------------------------------------------------------------------------------------------------------
TOTAL 120,000 4,154,662 480,000 1,162,460 1,000,000 4,500,000
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS IN FOREIGN CURRENCY (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
--------------------------------------------------------------------------------------------------------------------------
FOREIGN TRADE
--------------------------------------------------------------------------------------------------------------------------
SECURED
--------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS
--------------------------------------------------------------------------------------------------------------------------
BANAMEX, S.A.
BANAMEX, S.A.
SANTANDER SERFIN
BANAMEX, S.A.
BANAMEX, S.A.
BANK OF AMERICA 138 413 550 550 27,841
SUNTRUST BANK MIAMI, NATIONAL 4,390 4,391
LEASING DE COLOMBIA 11 33 53 185
LEASING DE OCCIDENTE 111 56
--------------------------------------------------------------------------------------------------------------------------
OTHER
--------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 260 4,892 4,994 735 27,841 -
--------------------------------------------------------------------------------------------------------------------------
STOCK MARKET
--------------------------------------------------------------------------------------------------------------------------
LISTED STOCK EXCHANGE
--------------------------------------------------------------------------------------------------------------------------
UNSECURED
--------------------------------------------------------------------------------------------------------------------------
SECURED
--------------------------------------------------------------------------------------------------------------------------
PRIVATE PLACEMENTS
--------------------------------------------------------------------------------------------------------------------------
UNSECURED
--------------------------------------------------------------------------------------------------------------------------
UDI-DENOMINATED NOTES
HOLDERS 789,734
HOLDERS 3,292,800
HOLDERS 6,585,600
HOLDERS 123,491
--------------------------------------------------------------------------------------------------------------------------
SECURED
--------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK MARKET 0 0 0 0 0 10,791,625
--------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
--------------------------------------------------------------------------------------------------------------------------
VARIOUS
VARIOUS 1,781,240
--------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS - 1,781,240 - - - -
--------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES AND
OTHER CREDITS
--------------------------------------------------------------------------------------------------------------------------
VARIOUS 20,368 413,085
VARIOUS 95,407 106,977 119,950 838,914
--------------------------------------------------------------------------------------------------------------------------
TOTAL 20,628 2,199,217 100,401 107,712 147,791 11,630,539
--------------------------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY
WERE AS FOLLOWS:
$ 10.9760 PESOS PER U.S. DOLLAR
0.0045 PESOS PER COLOMBIAN PESO
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)
CONSOLIDATED
FINAL PRINTING
-------------------------------------------------------------------------------------------------------------------------------
DOLLARS OTHER CURRENCIES
--------------------------------------------------------------------- TOTAL
TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS
OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS
-------------------------------------------------------------------------------------------------------------------------------
MONETARY ASSETS 2,390,401 26,237,041 220,683 2,422,217 28,659,258
LIABILITIES POSITION 1,298,548 14,252,863 42,740 469,114 14,721,977
SHORT-TERM LIABILITIES POSITION 170,060 1,866,579 42,309 464,383 2,330,962
LONG-TERM LIABILITIES POSITION 1,128,488 12,386,284 431 4,731 12,391,015
-------------------------------------------------------------------------------------------------------------------------------
NET BALANCE 1,091,853 11,984,178 177,943 1,953,103 13,937,281
-------------------------------------------------------------------------------------------------------------------------------
NOTES
CURRENT ASSET INCLUDES U.S.$1,094,370 THOUSAND RELATED TO A FINANCIAL ASSET
AVAILABLE FOR SALE, AS WELL AS U.S.$11,426 THOUSAND RELATED TO RESTRICTED
CASH, AND U.S.$70,325 THOUSAND OF LONG-TERM NOTES RECEIVABLE, WHICH ARE
CLASSIFIED AS NON-CURRENT ASSETS.
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS:
$ 10.9760 PESOS PER U.S. DOLLAR
13.9304 PESOS PER EURO
3.5417 PESOS PER ARGENTINEAN PESO
0.0203 PESOS PER CHILEAN PESO
10.9760 PESOS PER PANAMANIAN BALBOA
0.0045 PESOS PER COLOMBIAN PESO
3.3793 PESOS PER PERUVIAN NUEVO SOL
10.9760 PESOS PER ECUADORIAN SUCRE
0.0051 PESOS PER VENEZUELAN BOLIVAR
8.8000 PESOS PER SWISS FRANC
THE FOREIGN CURRENCY OF LONG-TERM LIABILITIES FOR PS.12,391,015 IS REPORTED
AS FOLLOWS:
REF S27 LONG-TERM LIABILITIES PS.11,986,443
REF S69 OTHER LONG-TERM LIABILITIES PS.404,572
RESULT FROM MONETARY POSITION
(Thousands of Mexican Pesos)
CONSOLIDATED
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------
(ASSET) LIABILITY MONTHLY
MONTH MONETARY MONETARY MONETARY MONTHLY PROFIT
ASSETS LIABILITIES POSITION INFLATION AND (LOSS)
----------------------------------------------------------------------------------------------------------------------------
JANUARY 27,549,670 25,566,260 1,983,410 0.58 11,631
FEBRUARY 28,738,101 25,181,438 3,556,663 0.15 5,442
MARCH 30,058,664 25,546,612 4,512,052 0.12 5,658
APRIL 30,018,302 25,540,733 4,477,569 0.14 6,564
MAY 27,646,271 27,139,452 506,819 (0.44) (2,256)
JUNE 29,316,228 27,548,286 1,767,942 0.08 1,526
JULY 27,798,817 27,123,758 675,059 0.27 1,851
AUGUST 26,658,573 26,404,947 253,626 0.51 1,294
SEPTEMBER 24,420,298 26,392,908 (1,972,610) 0.79 (15,765)
RESTATEMENT - 454
CAPITALIZATION - -
FOREIGN CORP. - 14,325
OTHER - 71,234
----------------------------------------------------------------------------------------------------------------------------
TOTAL 101,958
----------------------------------------------------------------------------------------------------------------------------
NOTES
THE AMOUNT REFLECTED IN "OTHER" INCLUDES PS. 70,990, FROM MONETARY
POSITION DERIVED FROM DEFERRED TAXES, WHICH WAS CLASSIFIED IN THE
DEFERRED INCOME TAX PROVISION IN ACCORDANCE WITH THE GUIDELINES
PROVIDED BY BULLETIN D-4 FOR DEFERRED TAXES.
DEBT INSTRUMENTS
CONSOLIDATED
FINAL PRINTING
--------------------------------------------------------------------------------
FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE
THE AGREEMENTS OF THE U.S.$300 MILLION (OF WHICH APPROXIMATELY
U.S.$71.9 MILLION ARE OUTSTANDING AS OF SEPTEMBER 30, 2006), U.S.$600
MILLION AND U.S.$300 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA,
S.A. WITH MATURITY IN 2011, 2025 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.
THE AGREEMENT OF THE U.S.$300 MILLION SENIOR NOTES (OF WHICH
APPROXIMATELY U.S.$11.3 MILLION ARE OUTSTANDING AS OF SEPTEMBER 30,
2006), ISSUED BY INNOVA, S. DE R.L. DE C.V. ("INNOVA") WITH MATURITY
IN 2013, CONTAINS CERTAIN COVENANTS THAT LIMIT THE ABILITY OF INNOVA
AND ITS RESTRICTED SUBSIDIARIES WITH RESPECT TO INDEBTEDNESS, LIENS,
SALES AND LEASEBACKS, RESTRICTED PAYMENTS, ASSET SALES, AND CERTAIN
MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
ACTUAL SITUATION OF FINANCIAL RESTRICTIONS
AT SEPTEMBER 30, 2006, THE GROUP WAS IN COMPLIANCE WITH THE FINANCIAL
RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES
DESCRIBED ABOVE.
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
CONSOLIDATED
FINAL PRINTING
--------------------------------------------------------------------------------------------------------------------------------
PLANT OR CENTER ECONOMIC ACTIVITY PLANT UTILIZATION
CAPACITY (%)
--------------------------------------------------------------------------------------------------------------------------------
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
RADIO: 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
--------------------------------------------------------------------------------------------------------------------------------
NOTES
MAIN RAW MATERIALS
CONSOLIDATED
FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------------
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
(%)
----------------------------------------------------------------------------------------------------------------------------------
PROGRAMS AND FILMS ANIME CREATIVE
CORPORATION 0.28
CINEMA INC,
S.A. DE C.V. 0.24
CINEMATOGRAFICA
RODRIGUEZ, S.A. 0.58
DIANA INTERNACIO-
NAL FILMS, S.A. 0.13
DIRSOL,
S.A. DE C.V. 0.15
DISTRIBUIDORA RO-
MARI, S.A. DE C.V. 2.60
GUSSI, S.A. DE C.V. 3.31
HERMINE KINDLE
FUTCHER 0.16
MARIA CLA-
RA MATA 0.09
MULTIFILMS
BV 0.15
NUVISION, S.A. 1.22
ORO FILMS,
S.A. DE C.V. 0.19
PELICULAS RODRI-
GUEZ, S.A. 0.45
PRODUCCIONES
AGUILA, S.A. 0.11
PRODUCCIONES
ROSAS PRIEGO 0.31
PRODUCCIONES
TOBARI, S.A. 1.22
PRODUCTORA
FILMICA REAL,
S.A. DE C.V. 0.06
QUALITY FILMS,
S.A. DE C.V. 0.41
SECINE, S.A. DE C.V. 0.82
SOLFERINO
MEDIA, S.A. DE C.V. 0.06
OTHER 0.89
PROGRAMS AND FILMS ALFRED HABER
DISTRIBUTION, INC. NO 0.15
ALLIANCE ATLAN-
TIS INTERNATIONAL NO 1.47
AMERICA PRO-
DUCCIONES, S.A. NO 2.26
BBC WORLDWIDE
AMERICA, INC. NO 0.31
BETAFILM GMBH
& CO. NO 0.14
BUENAVISTA
INTERNATIONAL,
INC. NO 0.13
CARSEY WERNER
DISTRIBUTION,
INC. NO 0.11
CONSTELLATION
PICTURES, INC. NO 1.77
CROWN MEDIA
DISTRIBUTION, NO
LLC 0.35
DIC ENTERTAIN NO
MENT CORP. 0.47
DREAMWORKS NO
LLC. 1.91
ENTERTAINMENT NO
RIGHTS
DISTRIBUTION NO
LIMITED 0.13
FIREWORKS INTER-
NATIONAL NO 0.33
FREMANTLE MEDIA
LIMITED NO 0.86
HALLMARK ENTER-
TAINMENT NO 0.47
HEARTS ENTER-
TAINMENT, INC. 0.45
INDEPENDENT NO
INTERNATIONAL NO
T.V. INC. 2.76
LIONS GATE
FILM, INC. NO 0.12
LYONS
PARTNERSHIP 0.33
MARATHON NO
INTERNATIONAL 0.45
METRO GOLDWYN NO
MAYER INTERNATI-
ONAL NO 4.93
MORGAN CREEK
INTERNATIONAL, NO
INC. 0.23
MTV NETWORKS NO 0.43
A DIVISION OF
CORP. NO 1.97
MULTIFILMS
BV NO 0.61
PANAMERICAN
WORLD
INVESTMENTS,
LLC. NO 0.15
PARAMOUNT
PICTURES,
CORP. NO 3.93
POKEMON
USA, INC. NO 0.28
RAINBOW,
S.R.L. 0.08
RCN TELEVISION,
S.A. NO 0.14
REPRESENTA
CIONES DE TELE-
VISION, INC. NO 0.08
SALSA ENTER-
TAINMENT, INC. NO 0.35
SONY PICTURES
TELEVISION
INTERNATIONAL NO 8.16
SONY CORPORA-
TION OF AMERICA NO 4.36
TELESCREEN
DISTRIBUTION NO 0.22
STUDIO CANAL
IMAGE NO 0.54
TEPUY USA COR-
PORATION NO 0.56
TOEI ANIMATION
CO., LTD NO 1.27
TWENTIETH CEN-
TURY FOX, INC. NO 4.60
UNIVERSAL
STUDIOS INTER-
NATIONAL, B.V. NO 15.54
WARNER BROS.
INTERNATIONAL
TELEVISION NO 17.72
WHILAND
INTERNATIONAL
INC. NO 0.17
ZACH MOTION
PICTURES, INC. NO 2.21
OTHER NO 2.71
COAXIAL CABLE RG
MAYA 60 NACIONAL DE
CONDUCTORES,
S.A. DE C.V. 2.90
CABLEMODEMS MOTOROLA, INC. NO 1.58
HILTI BOLT HILTI MEXICANA,
S.A. DE C.V. NO 0.01
SWITCH CABLENETWORK
MEXICO NO 0.01
TWO OUTLET DEVICE AC 200 TVC CORPORATION YES 0.02
DECODER MOTOROLA, INC. NO 75.24
COUCHE PAPER ABASTECEDORA
LUMEN, S.A. 1.76
MAG PAPER 0.17
PAPELERA
MOGHABA,
S.A. 0.02
SUMINISTROS
BROM, S.A. 0.16
TORRAS PAPEL,
S.A. 0.19
COUCHE PAPER STORAM ENSON YES 5.55
BULKLEY DUNTON YES 20.46
M REAL YES 2.40
MYLLLIKOSKI
PAPEL YES 3.63
BOWATER, INC. YES 0.37
NORKE CANADA YES 0.05
UPM YES 6.82
EDITORA
GEMINIS, LTDA. YES 0.46
INPACEL YES 3.06
EDITORES, S.A. YES 0.90
EDITORIAL LA
PATRIA YES 1.95
PRINTER
COLOMBINA,
S.A. YES 0.33
GRUPO OP
GRAFICAS, S.A. YES 0.44
PANAMERICANAS
FORMAS E
IMPRESION YES 1.70
PAPER AND IMPRESSION PRODUCTORA CO-
MERCIALIZADORA Y
EDITORES DE LI-
BROS , S.A. DE C.V. 5.72
OFFSET
MULTICOLOR
S.A. 8.85
IMPRESOS MOINO 0.84
PROCESOS IND
DE PAPEL, S.A. 1.28
BARNICES PARA
EDICIONES DE
LIBROS, S.A. 0.08
SERVICIOS PRO-
FESIONALES
DE IMPRESION,
S.A. DE C.V. 0.68
GRUPO GRAFICO
ARENAL 0.32
LITOGRAFIA
MAGNO GRAFT,
S.A. 0.49
GRAFICA LA
PRENSA, S.A. 0.13
QUEBECOR
WORDL MEXICO 0.55
REFORSA 1.05
METROCOLOR 0.44
LITOGRAFICA
INGRAMEX, S.A. 0.03
PAPER AND IMPRESSION QUEBECOR
CHILE, S.A. YES 2.68
QUEBECOR
WORLD
BOGOTA YES 5.07
EDITORA
FASUDI
LTDA. YES 0.01
GEMINIS, LTDA. YES 0.11
GRUPO OP GRA-
FICAS, S.A. YES 4.33
PRINTER COLOM-
BINA, S.A. YES 1.61
ST. IVES, INC. YES 6.51
BEST LITHO YES 0.11
EDITORES, S.A. YES 0.64
RR DONELLY YES 1.82
QUAD GRAPHICS YES 0.15
PRO-OFFSET EDI-
TORIAL, LTDA. YES 0.72
----------------------------------------------------------------------------------------------------------------------------------
NOTES
SALES DISTRIBUTION BY PRODUCT
SALES
CONSOLIDATED
FINAL PRINTING
-------------------------------------------------------------------------------
NET SALES MARKET
------------------------
MAIN PRODUCTS VOLUME AMOUNT SHARE
(%)
-------------------------------------------------------------------------------
DOMESTIC SALES
INTERSEGMENT ELIMINATIONS (798,793)
TELEVISION:
-----------
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC)
ADVERTISED TIME SOLD (HALF HOURS) 5 14,057,263
OTHER INCOME 96,086
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALE OF SIGNALS 588,105
ADVERTISED TIME SOLD 104,439
PUBLISHING:
-----------
MAGAZINE CIRCULATION 47,174 621,473
PUBLISHING 556,935
OTHER INCOME 15,234
PUBLISHING DISTRIBUTION: 7,963 145,356
-----------------------
SKY MEXICO
----------
DTH BROADCAST SATELLITE 5,208,418
PAY PER VIEW 170,315
CHANNEL COMMERCIALIZATION 94,684
CABLE TELEVISION:
-----------------
ANALOGIC AND DIGITAL SERVICE 1,177,620
INTERNET SERVICES 128,488
SERVICE INSTALLATION 29,527
PAY PER VIEW 10,451
CHANNEL COMMERCIALIZATION 27,800
OTHER 33,433
RADIO:
------
ADVERTISED TIME SOLD 314,079
OTHER BUSINESSES:
-----------------
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS 362,666
SPECIAL EVENTS AND SHOW PROMOTION 417,013
INTERNET SERVICES 211,666
GAMING 27,707
---------------------------------------------------------------
FOREIGN SALES
INTERSEGMENT ELIMINATIONS (9,707)
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD 334,827
OTHER INCOME 94,348
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS 230,204
ADVERTISING TIME SOLD 42,198
PROGRAMMING EXPORT:
-------------------
PROGRAMMING AND ROYALTIES 1,530,843
PUBLISHING:
-----------
MAGAZINE CIRCULATION 29,791 415,735
PUBLISHING 364,803
PUBLISHING DISTRIBUTION: 11,065 168,800
-----------------------
OTHER BUSINESSES:
DISTRIBUTION OF FILM MOVIES 4,494
----------------------------------------------------------------
TOTAL 26,776,510
----------------------------------------------------------------
FINAL PRINTING
----------------------------------------------------------------------------------------------------
MAIN
--------------------------------------------------------------
MAIN PRODUCTS TRADEMARKS CUSTOMERS
----------------------------------------------------------------------------------------------------
DOMESTIC SALES
INTERSEGMENT ELIMINATIONS
TELEVISION:
-----------
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC)
ADVERTISED TIME SOLD (HALF HOURS) TELEFONOS DE MEXICO, S.A. DE C.V.
COMPANIA PROCTER & GAMBLE DE MEXICO, S. DE R. L. DE C.V.
THE COCA-COLA EXPORT CORPORATION SUCURSAL EN MEXICO
BIMBO, S.A. DE C.V.
MARCAS NESTLE, S.A. DE C.V.
PEPSI COLA MEXICANA, S. DE R.L. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
DANONE DE MEXICO, S.A. DE C.V.
SABRITAS, S DE R.L. DE C.V.
KELLOGG COMPANY MEXICO, S. DE R.L. DE C.V.
COMPANIA CERVECERA DEL TROPICO, S.A. DE C.V.
S.C. JOHNSON AND SON, S.A. DE C.V.
OTHER INCOME VARIOUS
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALE OF SIGNALS T.V. CABLE, S.A. DE C.V.
OPERADORA CENTRAL DE CABLE, S.A. DE C.V.
CABLEVISION RED, S.A. DE C.V.
OPERADORA DEL PACIFICO DE CABLE, S.A. DE C.V.
TELEVISION INTERNACIONAL, S.A. DE C.V.
OPERADORA DE CABLE DE OCCIDENTE, S.A. DE C.V.
TELEVICABLE DEL CENTRO, S.A. DE C.V.
SERVICIOS DE COMUNICACION POR CABLE, S.A. DE C.V.
CABLE OPERADORA DE LA COMARCA, S.A. DE C.V.
TELECABLE DE CHIHUAHUA, S.A. DE C.V.
ADVERTISED TIME SOLD CERVECERIA MODELO, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
COMUNICACIONES NEXTEL DE MEXICO, S.A. DE C.V.
SUAVE Y FACIL, S.A. DE C.V.
OPERADORA DEFINITE, S.A. DE C.V.
EL PALACIO DE HIERRO, S.A. DE C.V.
ALESTRA, S. DE R.L. DE C.V.
VOLKSWAGEN DE MEXICO, S.A. DE C.V.
MARCAS NESTLE, S.A. DE C.V.
PUBLISHING:
-----------
MAGAZINE CIRCULATION TV Y NOVELAS MAGAZINE, GENERAL PUBLIC (AUDIENCE)
TELEGUIA MAGAZINE, DEALERS
VANIDADES MAGAZINE COMMERCIAL CENTERS (MALLS)
COSMOPOLITAN MAGAZINE
NATIONAL GEOGRAPHIC MAGAZINE
TU MAGAZINE
REBELDE MAGAZINE
SOY AGUILA MAGAZINE
MEN'S HEALTH MAGAZINE
MUY INTERESANTE MAGAZINE
BIG BANG MAGAZINE
SOCCER EN ESPANOL MAGAZINE
COCINA FACIL MAGAZINE
PUBLISHING FRABEL, S.A. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
DILTEX, S.A. DE C.V.
FABRICAS DE CALZADO ANDREA, S.A. DE C.V.
ESPACIO PREFERENTE MEXICO, S.A. DE C.V.
COMERCIALIZADORA DE CONTENIDOS A MOVILES, S.A. DE C.V.
MEDIA PLANNING, S.A. DE C.V.
BIMBO, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
COMPANIA PROCTER & GAMBLE DE MEXICO, S. DE R.L DE C.V.
OTHER INCOME VARIOUS
PUBLISHING DISTRIBUTION: MAGAZINE: GENERAL PUBLIC (AUDIENCE)
------------------------ "MAESTRA DE PREESCOLAR" DEALERS
"EL SOLITARIO" COMMERCIAL CENTERS (MALLS)
"CINEMANIA"
"REVISTA DEL CONSUMIDOR"
"ENTREPRENEUR"
SKY MEXICO
----------
DTH BROADCAST SATELLITE SKY SUBSCRIBERS
PAY PER VIEW
CHANNEL COMMERCIALIZATION LG ELECTRONIC, S.A. DE C.V.
COMUNICACIONES NEXTEL DE MEXICO, S.A. DE C.V.
SOCIEDAD DE LA PUBLICIDAD DE DISTRIBUIDORES MITSUBISHI, S.C.
PRODUCTORA IMAGEN, S.A. DE C.V.
CABLE TELEVISION:
-----------------
ANALOGIC AND DIGITAL SERVICE CABLEVISION SUBSCRIBERS
INTERNET SERVICES
SERVICE INSTALLATION
PAY PER VIEW
CHANNEL COMMERCIALIZATION TELEFONOS DE MEXICO, S.A. DE C.V.
OTHER BANCO MERCANTIL DEL NORTE, S.A.
UNIVERSIDAD TECNOLOGICA DE MEXICO, S.C.
RADIO:
------
ADVERTISED TIME SOLD PEGASO, PCS, S.A. DE C.V.
COMPANIA CERVECERA DEL TROPICO, S.A. DE C.V.
COOPERATIVA LA CRUZ AZUL, S.C.L.
PROPIMEX, S.A. DE C.V.
UNILEVER DE MEXICO, S DE R.L. DE C.V.
CERVECERIA CUAUHTEMOC MOCTEZUMA, S.A. DE C.V.
CORPORACION NORTEAMERICANA, S.A. DE C.V.
FARMACIAS GI, S.A. DE C.V.
BANCO MERCANTIL DEL NORTE, S.A.
MARCAS NESTLE, S.A. DE C.V.
OTHER BUSINESSES:
-----------------
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS CINEPOLIS DEL PAIS, S.A. DE C.V.
CINEMAS DE LA REPUBLICA, S.A. DE C.V.
OPERADORA DE CINEMAS, S.A. DE C.V.
MULTIMEDIOS CINEMAS, S.A. DE C.V.
CINEMARK DE MEXICO, S.A. DE C.V.
QUALITY FILMS, S. DE R.L. DE C.V.
GENERAL PUBLIC (AUDIENCE)
SPECIAL EVENTS AND SHOW PROMOTION AMERICA GENERAL PUBLIC (AUDIENCE)
REAL SAN LUIS FEDERACION MEXICANA DE FUTBOL, A.C.
INTERNET SERVICES ESMAS.COM RADIOMOVIL DIPSA, S.A. DE C.V.
PEGASO PCS, S.A. DE C.V.
MYALERCOM, S.A.
IUSACELL, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A DE C.V.
OPERADORA UNEFON, S.A. DE C.V.
GAMING PLAY CITY GENERAL PUBLIC (AUDIENCE)
-------------------------------------------------------------------------------------------------------------------------
FOREIGN SALES
INTERSEGMENT ELIMINATIONS
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD MCCANN ERICKSON, INC
BBD&O
SAATCHI & SAATCHI
MEDIAEDGE, CIA.
GSD&M ADVERTISING
STARCOM
OTHER INCOME VARIOUS
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS DIRECTV ARGENTINA
GALAXY ENTERTAINMENT DE VZLA, C.A. DIRECTV.
SKY CHILE TELEVISION
SUPER CABLE, AKL.
ECHOSTAR
ADVERTISING TIME SOLD MEDIA NETWORKS PERU, S.A.C.
CAPITAL MEDIA
LA KD ENTETAINMENT
NRD MEDIA
PROGRAMMING EXPORT:
-------------------
PROGRAMMING AND ROYALTIES TELEVISA CORPORACION VENEZOLANA DE TELEVISION
TELEVISA ANTENA 3 DE TELEVISION, S.A.
TELEVISA CORPORACION TELEVEN, S.A.
TELEVISA PROCTER & GAMBLE HELLAS, LTD
TELEVISA ILLIMANI DE COMUNICACIONES, S.A.
TELEVISA TELEARTE, S.A. EMPRESA DE RADIO COMUNICACION
TELEVISA
PUBLISHING:
-----------
MAGAZINE CIRCULATION T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
NATIONAL GEOGRAPHIC MAGAZINE DEALERS
REBELDE MAGAZINE COMMERCIAL CENTERS (MALLS)
VANIDADES MAGAZINE
COSMOPOLITAN MAGAZINE
TU MAGAZINE
CARAS MEGAZINE
MAXIM MEGAZINE
CONDORITO MEGAZINE
PUBLISHING PROCTER & GAMBLE
P & G PRESTIGE
PARLUX INT'L
ESTEE LAUDER
JOHNSON & JOHNSON
CINGULAR WIRELESS
PUBLISHING DISTRIBUTION: SELECCIONES MAGAZINE GENERAL PUBLIC (AUDIENCE)
------------------------ HOLA MAGAZINE DEALERS
VEA MAGAZINE COMMERCIAL CENTERS (MALLS)
SOHO MAGAZINE
CROMOS MAGAZINE
JET SET MAGAZINE
SEMANA MAGAZINE
DINERO MAGAZINE
OTHER BUSINESSES:
-----------------
DISTRIBUTION OF FILM MOVIES WARNER HOME VIDEO, INC.
NATIONAL AMUSEMENTS
LOEWS THEATRE MANAGEMENT CORP.
SALES DISTRIBUTION BY PRODUCT
FOREIGN SALES
CONSOLIDATED
FINAL PRINTING
------------------------------------------------------------------------------------------
NET SALES
------------------------
MAIN PRODUCTS VOLUME AMOUNT DESTINATION
------------------------------------------------------------------------------------------
FOREIGN SALES
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD 64,580 UNITED STATES OF AMERICA
OTHER INCOME 80,049 UNITED STATES OF AMERICA
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS 167,441 SPAIN
ARGENTINA
CHILE
GUATEMALA
COLOMBIA
UNITED STATES OF AMERICA
PROGRAMMING EXPORT:
-------------------
PROGRAMMING AND ROYALTIES 1,530,843 UNITED STATES OF AMERICA
CENTRAL AMERICA
CARIBBEAN
EUROPE
SOUTH AMERICA
AFRICA
ASIA
OTHER BUSINESSES:
DISTRIBUTION OF FILM MOVIES 4,494 UNITED STATES OF AMERICA
-------------------------------------------------------------------------------------------
SUBSIDIARIES ABROAD
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD 270,247 UNITED STATES OF AMERICA
OTHER INCOME 14,299 UNITED STATES OF AMERICA
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS 62,763 SPAIN
ARGENTINA
CHILE
GUATEMALA
COLOMBIA
UNITED STATES OF AMERICA
ADVERTISING TIME SOLD 42,198
PUBLISHING:
-----------
MAGAZINE CIRCULATION 29,791 415,735 GUATEMALA AND COSTA RICA
UNITED STATES OF AMERICA
PANAMA
SOUTH AMERICA
CENTRAL AMERICA
PUBLISHING 364,803
PUBLISHING DISTRIBUTION: 11,065 168,800 PANAMA
------------------------ SOUTH AMERICA
INTERSEGMENT ELIMINATIONS (9,707)
------------------------------------------------------------------------------------------
TOTAL 40,856 3,176,545
------------------------------------------------------------------------------------------
FOREIGN SALES
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD MCCANN ERICKSON, INC
BBD&O
SAATCHI & SAATCHI
MEDIAEDGE, CIA.
GSD&M ADVERTISING
STARCOM
OTHER INCOME VARIOUS
PROGRAMMING FOR PAY TELEVISION:
SALES OF SIGNALS DIRECTV ARGENTINA
GALAXY ENTERTAINMENT DE VZLA, C.A. DIRECTV.
SKY CHILE TELEVISION
SUPER CABLE, AKL.
ECHOSTAR
PROGRAMMING EXPORT:
PROGRAMMING AND ROYALTIES TELEVISA CORPORACION VENEZOLANA DE TELEVISION
TELEVISA ANTENA 3 DE TELEVISION, S.A.
TELEVISA CORPORACION TELEVEN, S.A.
TELEVISA PROCTER & GAMBLE HELLAS, LTD
TELEVISA ILLIMANI DE COMUNICACIONES, S.A.
TELEVISA TELEARTE, S.A. EMPRESA DE RADIO COMUNICACION
TELEVISA
OTHER BUSINESSES:
DISTRIBUTION OF FILM MOVIES WARNER HOME VIDEO, INC.
NATIONAL AMUSEMENTS
LOEWS THEATRE MANAGEMENT CORP.
----------------------------------------------------------------------------------------------------------------
SUBSIDIARIES ABROAD
TELEVISION BROADCASTING:
ADVERTISING TIME SOLD MCCANN ERICKSON, INC
BBD&O
SAATCHI & SAATCHI
MEDIAEDGE, CIA.
GSD&M ADVERTISING
STARCOM
OTHER INCOME VARIOUS
PROGRAMMING FOR PAY TELEVISION:
SALES OF SIGNALS DIRECTV ARGENTINA
GALAXY ENTERTAINMENT DE VZLA, C.A. DIRECTV
SKY CHILE TELEVISION
SUPER CABLE, AKL.
ECHOSTAR
ADVERTISING TIME SOLD MEDIA NETWORKS PERU, S.A.C.
CAPITAL MEDIA
LA KD ENTERTAINMENT
NRD MEDIA
PUBLISHING:
MAGAZINE CIRCULATION T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
NATIONAL GEOGRAPHIC
MAGAZINE DEALERS
REBELDE MAGAZINE COMMERCIAL CENTERS (MALLS)
VANIDADES MAGAZINE
COSMOPOLITAN MAGAZINE
TU MAGAZINE
CARAS MAGAZINE
MAXIM MAGAZINE
CONDORITO MAGAZINE
PUBLISHING PROCTER & GAMBLE
P & G PRESTIGE
PARLUX INT'L
ESTEE LAUDER
JOHNSON & JOHNSON
CINGULAR WIRELESS
PUBLISHING DISTRIBUTION: SELECCIONES MAGAZINE GENERAL PUBLIC (AUDIENCE)
HOLA MAGAZINE DEALERS
VEA MAGAZINE COMMERCIAL CENTERS (MALLS)
SOHO MAGAZINE
CROMOS MAGAZINE
JET SET MAGAZINE
SEMANA MAGAZINE
DINERO MAGAZINE
INTERSEGMENT ELIMINATIONS
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TOTAL
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PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE
CONSOLIDATED
FINAL PRINTING
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MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT
SEPTEMBER 30, 2006, INCLUDE THE FOLLOWING (MILLIONS OF U.S. DOLLARS AND
MEXICAN PESOS):
DESCRIPTION AUTHORIZED AMOUNT EXERCISED AMOUNT PROGRESS %
--------------------------------------- ------------------- ----------------- -----------
U.S. DOLLAR DENOMINATED PROJECTS:
---------------------------------
DIGITALIZATION OF THE CABLE TELEVISION
NETWORK U.S.$ 155.6 U.S.$ 140.7 90%
GAMING BUSINESS PROJECTS 37.8 19.1 51%
INFORMATION TECHNOLOGY PROJECTS OF
CABLE TELEVISION 19.0 17.7 93%
TECHNICAL EQUIPMENT FOR T.V. STATIONS 13.3 11.0 83%
MEXICAN PESOS DENOMINATED PROJECTS:
-----------------------------------
INFORMATION TECHNOLOGY PROJECTS PS. 38.3 PS. 31.9 83%
WALT MART PROJECT 206.4 129.9 63%
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INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION)
CONSOLIDATED
FINAL PRINTING
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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 FRS, 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 FRS 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.
THROUGH JUNE 30, 2006, THE GROUP DESIGNATED ITS NET INVESTMENT IN UNIVISION
AS AN EFFECTIVE HEDGE OF ITS OUTSTANDING SENIOR NOTES DUE IN 2011 AND 2032,
AND A PORTION OF ITS SENIOR NOTES DUE 2025 IN THE AMOUNT OF U.S.$400
MILLION. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO
THIS U.S. DOLLAR LONG-TERM DEBT WAS CREDITED OR CHARGED DIRECTLY TO EQUITY
(OTHER COMPREHENSIVE INCOME OR LOSS). BEGINNING JULY 1, 2006, THE GROUP'S
INVESTMENT IN SHARES OF UNIVISION IS ACCOUNTED FOR AS AN AVAILABLE-FOR-
SALE FINANCIAL ASSET WHOSE FAIR VALUE IS BEING HEDGED IN RESPECT OF ANY
FOREIGN CURRENCY FLUCTUATION WITH A DESIGNATED PORTION OF THE GROUP'S
SENIOR NOTES DUE 2011, 2025 AND 2032, IN THE AGGREGATE AMOUNT OF
APPROXIMATELY U.S.$771.9 MILLION. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN
OR LOSS ATTRIBUTABLE TO THIS U.S. DOLLAR LONG TERM DEBT IS CREDITED OR
CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS).
THE GROUP'S FINANCIAL STATEMENTS FOR SEPTEMBER 30, 2005 HAVE BEEN RESTATED
TO MEXICAN PESOS IN PURCHASING POWER AS OF SEPTEMBER 30, 2006 BY USING A
RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE NCPI, WHICH FOR 2005 WAS
1.04093. HAD THE ALTERNATIVE WEIGHTED AVERAGE FACTOR ALLOWED UNDER MEXICAN
FRS BEEN APPLIED TO RESTATE THE GROUP'S FINANCIAL STATEMENTS FOR SEPTEMBER
30, 2005, WHICH INCLUDED THE RESULTS OF MEXICAN AND NON-MEXICAN
SUBSIDIARIES, THE RESTATEMENT FACTOR FOR SEPTEMBER 2005 WOULD HAVE BEEN
1.04128.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CONSOLIDATED
FINAL PRINTING
-------------------------------------------------------------------------------
MEXICO CITY, D.F., OCTOBER 26, 2006--GRUPO TELEVISA, S.A. (NYSE:TV;
BMV:TLEVISA CPO; "TELEVISA" OR "THE COMPANY"), TODAY ANNOUNCED RESULTS FOR
THE THIRD QUARTER OF 2006. THE RESULTS HAVE BEEN PREPARED IN ACCORDANCE
WITH MEXICAN FINANCIAL REPORTING STANDARDS AND ARE ADJUSTED IN MILLIONS OF
MEXICAN PESOS IN PURCHASING POWER AS OF SEPTEMBER 30, 2006.
NET SALES
CONSOLIDATED NET SALES INCREASED 9.1% TO PS.9,220.1 MILLION IN THIRD
QUARTER 2006 COMPARED WITH PS.8,448.2 MILLION IN THIRD QUARTER 2005. THIS
INCREASE WAS ATTRIBUTABLE TO REVENUE GROWTH IN SKY MEXICO, TELEVISION
BROADCASTING, CABLE TELEVISION, PROGRAMMING EXPORTS, PAY-TELEVISION
NETWORKS, OTHER BUSINESSES, PUBLISHING, AND RADIO SEGMENTS. THESE INCREASES
WERE PARTIALLY OFFSET BY LOWER SALES IN OUR PUBLISHING DISTRIBUTION
SEGMENT.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION (OIBDA)
CONSOLIDATED OIBDA INCREASED 16.5% TO PS.4,159.2 MILLION IN THIRD QUARTER
2006 COMPARED WITH PS.3,568.8 MILLION IN THIRD QUARTER 2005. CONSOLIDATED
OIBDA MARGIN REACHED A THIRD-QUARTER RECORD OF 45.1%, UP FROM A MARGIN OF
42.2% REPORTED LAST YEAR. THE INCREASE IN CONSOLIDATED OIBDA REFLECTS
HIGHER SALES PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING
EXPENSES. IN ADDITION, CONSOLIDATED OPERATING INCOME ROSE 20.3% TO
PS.3,516.5 MILLION IN THIRD QUARTER 2006 COMPARED WITH PS.2,923.8 MILLION
IN THIRD QUARTER 2005.
THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS OF PS.642.7
MILLION AND PS.645 MILLION IN THIRD QUARTER OF 2006 AND 2005, RESPECTIVELY.
NET INCOME
NET INCOME INCREASED 43.6% TO PS.2,486.4 MILLION IN THIRD QUARTER 2006
COMPARED WITH PS.1,732 MILLION IN THIRD QUARTER 2005. THE NET INCREASE OF
PS.754.4 MILLION REFLECTED I) A PS.590.4 MILLION INCREASE IN OIBDA, II) A
PS.2.3 MILLION DECREASE IN DEPRECIATION AND AMORTIZATION, III) A PS.10.4
MILLION DECREASE IN RESTRUCTURING AND NON-RECURRING CHARGES, IV) A PS.54.1
MILLION DECREASE IN OTHER EXPENSE, AND V) A PS.506.4 MILLION DECREASE IN
INCOME TAXES. THESE FAVORABLE CHANGES WERE PARTIALLY OFFSET BY I) A
PS.194.9 MILLION INCREASE IN INTEGRAL COST OF FINANCING, II) A PS.155.6
MILLION INCREASE IN EQUITY IN LOSSES OF AFFILIATES, AND III) A PS.58.7
MILLION INCREASE IN MINORITY INTEREST.
THIRD-QUARTER RESULTS BY BUSINESS SEGMENT
THE FOLLOWING INFORMATION PRESENTS THIRD-QUARTER RESULTS ENDED SEPTEMBER
30, 2006 AND 2005, FOR EACH OF OUR BUSINESS SEGMENTS. AMOUNTS ARE PRESENTED
IN MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF SEPTEMBER 30, 2006.
TELEVISION BROADCASTING
THIRD-QUARTER SALES INCREASED 4.5% TO PS.4,992.3 MILLION COMPARED WITH
PS.4,777.3 MILLION IN THIRD QUARTER 2005. THIS INCREASE WAS DRIVEN BY
HIGHER ADVERTISING REVENUES RELATED TO I) HIGHER RATINGS IN OUR TELENOVELAS
AND REALITY SHOWS, AND II) THE BROADCAST OF CERTAIN GAMES OF THE 2006 FIFA
WORLD CUP DURING THE MONTH OF JULY.
THIRD-QUARTER OIBDA INCREASED 8.8% TO PS.2,530.3 MILLION COMPARED WITH
PS.2,325.7 MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED A
THIRD-QUARTER RECORD OF 50.7% COMPARED WITH 48.7% IN THIRD QUARTER 2005.
THESE RESULTS REFLECT HIGHER SALES AND LOWER COST OF SALES, WHICH WERE
PARTIALLY OFFSET BY HIGHER OPERATING EXPENSES
PAY TELEVISION NETWORKS
THIRD-QUARTER SALES INCREASED 14.6% TO PS.338.4 MILLION COMPARED WITH
PS.295.4 MILLION IN THIRD QUARTER 2005. THIS INCREASE WAS ATTRIBUTABLE TO
I) HIGHER REVENUES FROM CHANNELS SOLD TO PAY-TELEVISION SYSTEMS IN MEXICO
AND TO DIRECTV LATIN AMERICA'S BASIC PACKAGE; II) AN INCREASE IN SALES OF
TUTV, OUR PAY-TELEVISION JOINT VENTURE WITH UNIVISION; AND III) HIGHER
ADVERTISING SALES.
THIRD-QUARTER OIBDA INCREASED 21.7% TO PS.179.7 MILLION COMPARED WITH
PS.147.7 MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED 53.1%
COMPARED WITH 50% IN THIRD QUARTER 2005, DRIVEN BY HIGHER SALES AND LOWER
OPERATING EXPENSES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES.
PROGRAMMING EXPORT
THIRD-QUARTER SALES INCREASED 18.9% TO PS.575.4 MILLION COMPARED WITH
PS.484.1 MILLION IN THIRD QUARTER 2005. THIS INCREASE REFLECTS HIGHER
ROYALTIES PAID TO THE COMPANY UNDER THE UNIVISION PROGRAM LICENSE
AGREEMENT, AS WELL AS HIGHER PROGRAMMING SALES TO LATIN AMERICA AND EUROPE,
WHICH WERE PARTIALLY OFFSET BY LOWER PROGRAMMING SALES IN ASIA AND AFRICA
AND BY A NEGATIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY-DENOMINATED SALES,
WHICH AMOUNTED TO PS.11.7 MILLION. ROYALTIES FROM UNIVISION TOTALED US$34.6
MILLION IN THIRD QUARTER 2006 AND INCLUDED US$1.6 MILLION FROM PUERTO RICO
AND A POSITIVE ADJUSTMENT OF US$2.3 MILLION FROM THE MONTH OF JUNE,
COMPARED WITH A TOTAL OF US$27.8 MILLION RECEIVED DURING LAST YEAR'S THIRD
QUARTER.
THIRD-QUARTER OIBDA INCREASED 55.7% TO PS.278.4 MILLION COMPARED WITH
PS.178.8 MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED 48.4%
COMPARED WITH 36.9% IN THIRD QUARTER 2005, REFLECTING HIGHER SALES AND
LOWER COST OF SALES PARTIALLY OFFSET BY HIGHER OPERATING EXPENSES.
PUBLISHING
THIRD-QUARTER SALES INCREASED 4.6% TO PS.678.1 MILLION COMPARED WITH
PS.648.2 MILLION IN THIRD QUARTER 2005. THIS INCREASE REFLECTS I) SALES OF
PS.34.4 MILLION IN EDITORA CINCO, WHICH WE BEGAN CONSOLIDATING IN OUR
FINANCIAL STATEMENTS DURING THE FIRST QUARTER OF 2006; II) AN INCREASE IN
ADVERTISING PAGES SOLD BOTH IN MEXICO AND ABROAD; AND III) HIGHER MAGAZINE
CIRCULATION ABROAD. THESE INCREASES WERE PARTIALLY OFFSET BY LOWER MAGAZINE
CIRCULATION IN MEXICO AND BY A NEGATIVE TRANSLATION EFFECT OF
FOREIGN-CURRENCY-DENOMINATED SALES, WHICH AMOUNTED TO PS.30.4 MILLION.
THIRD-QUARTER OIBDA INCREASED 8.6% TO PS.140.8 MILLION COMPARED WITH
PS.129.7 MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED 20.8%
COMPARED WITH 20% IN THIRD QUARTER 2005, REFLECTING HIGHER SALES THAT WERE
PARTIALLY OFFSET BY HIGHER COST OF SALES AND A MARGINAL INCREASE IN
OPERATING EXPENSES, BOTH OF RESULTED PRIMARILY FROM THE CONSOLIDATION OF
EDITORA CINCO AND HIGHER PAPER AND PRINTING COSTS.
PUBLISHING DISTRIBUTION
THIRD-QUARTER SALES DECREASED 9% TO PS.99.7 MILLION COMPARED WITH PS.109.6
MILLION IN THIRD QUARTER 2005. THIS DECREASE REFLECTS I) LOWER CIRCULATION
IN MEXICO AND ABROAD OF MAGAZINES PUBLISHED BY THIRD PARTIES, AND II) THE
NEGATIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY-DENOMINATED SALES, WHICH
AMOUNTED TO PS.7.5 MILLION. THESE DECREASES WERE PARTIALLY OFFSET BY HIGHER
CIRCULATION IN MEXICO AND ABROAD OF MAGAZINES PUBLISHED BY THE COMPANY.
THIRD-QUARTER OIBDA DECREASED 29.5% TO PS.3.1 MILLION COMPARED WITH PS.4.4
MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN DECREASED TO 3.1% COMPARED
WITH 4% IN THIRD QUARTER 2005, REFLECTING LOWER SALES PARTIALLY OFFSET BY
LOWER COST OF SALES AND OPERATING EXPENSES.
SKY MEXICO
THIRD-QUARTER SALES INCREASED 13.8% TO PS.1,880.8 MILLION, COMPARED WITH
PS.1,653 MILLION IN THIRD QUARTER 2005. THE INCREASE IS ATTRIBUTABLE TO A
16% INCREASE IN THE SUBSCRIBER BASE, WHICH, AS OF SEPTEMBER 30, 2006,
REACHED 1,411,600 GROSS ACTIVE SUBSCRIBERS (INCLUDING 86,150 COMMERCIAL
SUBSCRIBERS), COMPARED WITH 1,216,600 GROSS ACTIVE SUBSCRIBERS (INCLUDING
69,200 COMMERCIAL SUBSCRIBERS) AS OF THE END OF THE THIRD QUARTER OF LAST
YEAR.
THIRD-QUARTER OIBDA INCREASED 30% TO PS.939.9 MILLION COMPARED WITH PS.723
MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED 50% COMPARED WITH
43.7% IN THIRD QUARTER 2005, REFLECTING HIGHER SALES AND LOWER COST OF
SALES PARTIALLY OFFSET BY HIGHER OPERATING EXPENSES.
CABLE TELEVISION
THIRD-QUARTER SALES INCREASED 33.2% TO PS.497.5 MILLION COMPARED WITH
PS.373.4 MILLION IN THIRD QUARTER 2005. THIS INCREASE WAS ATTRIBUTABLE TO
I) A 17% INCREASE IN THE SUBSCRIBER BASE, WHICH, AS OF SEPTEMBER 30, 2006,
REACHED 475,506 SUBSCRIBERS (INCLUDING 411,015 DIGITAL SUBSCRIBERS),
COMPARED WITH 406,262 SUBSCRIBERS (INCLUDING 233,649 DIGITAL SUBSCRIBERS)
AS OF THE END OF THE THIRD QUARTER OF LAST YEAR; II) A 67% INCREASE IN
BROADBAND SUBSCRIBERS TO 86,470 IN THE THIRD QUARTER OF 2006 COMPARED WITH
51,779 REPORTED IN THE SAME PERIOD LAST YEAR; AND III) A 6% RATE INCREASE
IN CABLEVISION VIDEO SERVICE PACKAGES EFFECTIVE MARCH 1, 2006.
THIRD-QUARTER OIBDA INCREASED 60.8% TO PS.208.5 MILLION COMPARED WITH
PS.129.7 MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED 41.9%
COMPARED WITH 34.7% IN THIRD QUARTER 2005, REFLECTING HIGHER SALES THAT
WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES.
RADIO
THIRD-QUARTER SALES INCREASED 14.8% TO PS.99 MILLION COMPARED WITH PS.86.2
MILLION IN THIRD QUARTER 2005. THIS INCREASE WAS ATTRIBUTABLE TO I) AN
INCREASE IN ADVERTISING TIME SOLD, AND II) HIGHER SALES GENERATED BY OUR
AFFILIATION AGREEMENT WITH RADIORAMA.
THIRD-QUARTER OIBDA INCREASED 95.7% TO PS.22.9 MILLION COMPARED WITH
PS.11.7 MILLION IN THIRD QUARTER 2005, AND OIBDA MARGIN REACHED 23.1%
COMPARED WITH 13.6% IN THIRD QUARTER 2005, REFLECTING HIGHER SALES AND
LOWER COST OF SALES PARTIALLY OFFSET BY HIGHER OPERATING EXPENSES.
OTHER BUSINESSES
THIRD-QUARTER SALES INCREASED 18.7% TO PS.368.5 MILLION COMPARED WITH
PS.310.4 MILLION IN THIRD QUARTER 2005. THIS INCREASE WAS ATTRIBUTABLE TO
HIGHER SALES IN OUR FEATURE-FILM PRODUCTION AND DISTRIBUTION AND GAMING
BUSINESSES AND IN THE SMS SERVICES OF OUR INTERNET BUSINESS.
THIRD-QUARTER OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION INCREASED
TO PS.38.2 MILLION IN THIRD QUARTER 2006 COMPARED WITH A LOSS OF PS.13.5
MILLION IN THIRD QUARTER 2005. THE LOSS WAS ATTRIBUTABLE TO HIGHER COST OF
SALES AND OPERATING EXPENSES, PRIMARILY RELATED TO OUR GAMING BUSINESS,
WHICH WERE PARTIALLY OFFSET BY HIGHER SALES.
INTERSEGMENT SALES
INTERSEGMENT SALES FOR THE THIRD QUARTER 2006 AND 2005, AMOUNTED TO
PS.310.1 MILLION AND PS.310.5 MILLION, RESPECTIVELY.
CORPORATE EXPENSES
IN 2005, WE ADOPTED THE GUIDELINES OF THE INTERNATIONAL FINANCIAL REPORTING
STANDARD 2, "SHARE-BASED PAYMENT," ISSUED BY THE INTERNATIONAL ACCOUNTING
STANDARDS BOARD, WHICH REQUIRES ACCRUING IN STOCKHOLDERS' EQUITY THE
SHARE-BASED COMPENSATION EXPENSE MEASURED AT FAIR VALUE AT THE TIME THE
EQUITY BENEFITS ARE GRANTED TO OUR OFFICERS AND EMPLOYEES. IN THE THIRD
QUARTER 2006, WE RECOGNIZED A SHARE-BASED COMPENSATION OF APPROXIMATELY
PS.41.6 MILLION AS CORPORATE EXPENSE.
NON-OPERATING RESULTS
INTEGRAL RESULT OF FINANCING
THE EXPENSE ATTRIBUTABLE TO THE INTEGRAL COST OF FINANCING INCREASED BY
PS.194.9 MILLION TO PS.670 MILLION IN THIRD QUARTER 2006 FROM PS.475.1
MILLION IN THIRD QUARTER 2005. THIS INCREASE REFLECTED I) AN INCREASE IN
NET FOREIGN EXCHANGE LOSS OF PS.240.4 MILLION RESULTING PRIMARILY FROM A
3.26% APPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR IN THIRD
QUARTER 2006 COMPARED WITH A 0.21% DEPRECIATION OF THE MEXICAN PESO AGAINST
THE U.S. DOLLAR IN LAST YEAR'S THIRD QUARTER, IN CONJUNCTION WITH A HIGHER
AVERAGE AMOUNT OF NET FOREIGN CURRENCY ASSET POSITION IN THIRD QUARTER
2006; AND II) A PS.69.7 MILLION INCREASE IN LOSS FROM MONETARY POSITION
RESULTING PRIMARILY FROM HIGHER INFLATION IN MEXICO IN THIRD QUARTER 2006
(1.80%) COMPARED WITH THIRD QUARTER 2005 (0.91%). THESE UNFAVORABLE
VARIANCES IN INTEGRAL COST OF FINANCING WERE PARTIALLY OFFSET BY I) A
PS.14.1 MILLION DECREASE IN INTEREST EXPENSE RESULTING FROM BOTH A LOWER
AMOUNT OF OUTSTANDING DEBT AND A REDUCTION IN THE WEIGHTED-AVERAGE INTEREST
RATE; AND II) A PS.101.1 MILLION INCREASE IN INTEREST INCOME PRIMARILY IN
CONNECTION WITH A HIGHER AVERAGE AMOUNT OF TEMPORARY INVESTMENTS IN THIRD
QUARTER 2006.
RESTRUCTURING AND NON-RECURRING CHARGES
RESTRUCTURING AND NON-RECURRING CHARGES DECREASED BY PS.10.4 MILLION, OR
54.5%, TO PS.8.7 MILLION IN THIRD QUARTER 2006 COMPARED WITH PS.19.1
MILLION IN THIRD QUARTER 2005. THIS FAVORABLE EFFECT PRIMARILY REFLECTED A
DECREASE IN RESTRUCTURING CHARGES IN CONNECTION WITH WORK-FORCE REDUCTIONS.
OTHER EXPENSE, NET
OTHER EXPENSE, NET, DECREASED BY PS.54.1 MILLION, OR 54.9%, TO PS.44.5
MILLION IN THIRD QUARTER 2006 COMPARED WITH PS.98.6 MILLION IN THIRD
QUARTER 2005. THIS DECREASE REFLECTED PRIMARILY THE ABSENCE OF LOSS ON
DISPOSITION OF NON-CURRENT ASSETS AND A DECREASE IN DONATIONS IN THIRD
QUARTER 2006, WHICH WAS PARTIALLY OFFSET BY AN INCREASE IN FINANCIAL
ADVISORY AND PROFESSIONAL FEES.
INCOME TAX
INCOME TAXES DECREASED BY PS.506.4 MILLION TO A NET FAVORABLE INCOME TAX
EFFECT OF PS.60.4 MILLION IN THIRD QUARTER 2006 COMPARED WITH AN INCOME TAX
PROVISION OF PS.446 MILLION IN THIRD QUARTER 2005. THIS DECREASE REFLECTED
PRIMARILY THE EFFECT IN THIRD QUARTER 2006 OF AN ESTIMATED LOWER EFFECTIVE
INCOME TAX RATE FOR THE YEAR 2006.
EQUITY IN RESULTS OF AFFILIATES, NET
EQUITY IN LOSS OF AFFILIATES INCREASED BY PS.155.6 MILLION TO PS.137.2
MILLION IN THIRD QUARTER 2006 COMPARED WITH AN EQUITY IN INCOME OF
AFFILIATES OF PS.18.4 MILLION IN THIRD QUARTER 2005. THIS INCREASE
REFLECTED PRIMARILY EQUITY IN LOSS OF LA SEXTA, A FREE-TO-AIR TELEVISION
CHANNEL IN SPAIN IN WHICH WE HAVE A 40% INTEREST.
MINORITY INTEREST
MINORITY INTEREST INCREASED BY PS.58.7 MILLION, OR 34.2%, TO PS.230.1
MILLION IN THIRD QUARTER 2006 COMPARED WITH PS.171.4 MILLION IN THIRD
QUARTER 2005. THIS INCREASE REFLECTED PRIMARILY THE PORTION OF NET INCOME
ATTRIBUTABLE TO THE INTEREST HELD BY MINORITY STOCKHOLDERS IN THE CABLE
TELEVISION, RADIO, AND SKY MEXICO SEGMENTS.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES AND INVESTMENTS
IN THIRD QUARTER 2006 OUR CAPITAL EXPENDITURES TOTALED US$76 MILLION,
INCLUDING US$16.1 MILLION FOR OUR CABLE TELEVISION SEGMENT, US$20.5 MILLION
FOR SKY MEXICO, US$4 MILLION FOR GAMING, AND US$35.4 MILLION FOR OUR
TELEVISION BROADCASTING AND OTHER BUSINESS SEGMENTS.
IN ADDITION, DURING THIRD QUARTER 2006 WE MADE INVESTMENTS RELATED TO OUR
40% INTEREST IN LA SEXTA FOR AN AGGREGATE AMOUNT OF (euro)32.1 MILLION.
DEBT
THE TOTAL CONSOLIDATED DEBT AMOUNTED TO PS.19,055 MILLION AND PS.19,406.4
MILLION AS OF SEPTEMBER 30, 2006 AND 2005, RESPECTIVELY, WHICH INCLUDED A
CURRENT PORTION OF LONG-TERM DEBT IN THE AMOUNT OF PS.1,087.4 MILLION AND
PS.191.7 MILLION, RESPECTIVELY.
ADDITIONALLY, SKY MEXICO HAD A SATELLITE TRANSPONDER LEASE OBLIGATION IN
THE AMOUNT OF PS.1,246.3 MILLION AND PS.1,349.9 MILLION AS OF SEPTEMBER 30,
2006 AND 2005, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION OF PS.85.1
MILLION AND PS.77.5 MILLION, RESPECTIVELY.
AS OF SEPTEMBER 30, 2006 AND 2005, OUR CONSOLIDATED NET DEBT WAS PS.2,705.9
MILLION AND PS.7,807.5 MILLION, RESPECTIVELY.
UNIVISION
IN THE THIRD QUARTER 2006, WE ANNOUNCED OUR INTENTION TO HAVE OUR SHARES OF
UNIVISION CASHED OUT IN CONNECTION WITH THE MERGER CONTEMPLATED BY A MERGER
AGREEMENT ENTERED INTO BY UNIVISION AND AN ACQUIRING INVESTOR GROUP. AT THE
EFFECTIVE TIME OF THE PROPOSED MERGER, WHICH IS STILL SUBJECT TO REGULATORY
APPROVALS IN THE UNITED STATES AND WHICH UNIVISION HAS STATED IS EXPECTED
TO BE CONSUMMATED IN THE FIRST HALF OF 2007, SHARES OF UNIVISION COMMON
STOCK, INCLUDING 30,187,534 SHARES OWNED BY US, WILL BE CONVERTED INTO THE
RIGHT TO RECEIVE US$36.25 IN CASH PER SHARE PLUS INTEREST AT A RATE OF 8%
PER YEAR IF THE MERGER IS NOT COMPLETED BY APRIL 26, 2007. ALSO, UNDER THE
TERMS OF THIS MERGER AGREEMENT, ALL OF OUR WARRANTS TO ACQUIRE SHARES OF
UNIVISION COMMON STOCK WILL BE EITHER CASHED OUT OR CANCELLED DEPENDING
WHETHER THEY ARE IN OR OUT OF THE MONEY.
ACCORDINGLY, BEGINNING JULY 1, 2006, WE I) CLASSIFIED THE INVESTMENT IN
SHARES OF UNIVISION AS A CURRENT AVAILABLE-FOR-SALE FINANCIAL ASSET IN OUR
CONSOLIDATED BALANCE SHEET; II) DISCONTINUED THE RECOGNITION OF ANY EQUITY
RESULT RELATED TO THIS INVESTMENT SUBSEQUENT TO JUNE 30, 2006 (UNTIL THAT
DATE, OUR INVESTMENT IN SHARES OF UNIVISION WAS DEEMED PERMANENT AND
ACCOUNTED FOR BY USING THE EQUITY METHOD); III) RECOGNIZED THIS FINANCIAL
ASSET AT FAIR VALUE WITH ANY RELATED GAIN OR LOSS, NET OF APPLICABLE INCOME
TAX, ACCOUNTED FOR AS OTHER ACCUMULATED COMPREHENSIVE RESULT IN OUR
CONSOLIDATED STOCKHOLDERS' EQUITY; AND IV) DESIGNATED THIS FINANCIAL ASSET
AS BEING HEDGED BY A PORTION OF OUR US-DOLLAR-DENOMINATED LONG-TERM DEBT IN
THE AMOUNT OF APPROXIMATELY US$771.9 MILLION. THE FAIR VALUE OF OUR
FINANCIAL INVESTMENT IN SHARES OF UNIVISION AT SEPTEMBER 30, 2006 AMOUNTED
TO APPROXIMATELY US$1.1 BILLION.
CONVERGENCE AGREEMENT
IN EARLY OCTOBER, MEXICO'S MINISTRY OF COMMUNICATION AND TRANSPORTATION
PUBLISHED IN THE OFFICIAL GAZETTE WHAT IS CALLED THE "CONVERGENCE RULES OF
FIXED LOCAL TELEPHONY AND RESTRICTED TELEVISION AND/OR AUDIO SERVICES
OFFERED THROUGH PUBLIC FIXED LINE AND WIRELESS NETWORKS," ALSO KNOWN AS THE
"TECHNOLOGICAL CONVERGENCE RULES," WHICH IS INTENDED TO, AMONG OTHER
THINGS, INCREASE THE DIVERSITY OF SERVICES AND INTRODUCE LEADING TECHNOLOGY
BY TAKING ADVANTAGE OF THE CONVERGENCE OF TELECOMMUNICATIONS WITH DIGITAL
TECHNOLOGY. THE TECHNOLOGICAL CONVERGENCE RULES ARE ALSO INTENDED TO
PROMOTE THE TRANSMISSION OF TEXT, DATA AND, VOICE THROUGH MEXICO'S PUBLIC
NETWORKS. THESE RULES ARE EXPECTED TO CREATE NEW BUSINESS OPPORTUNITIES FOR
THE COMPANY AND TO HELP SERVE TO DIVERSIFY THE COMPANY'S OPERATIONS. FOR
THESE REASONS, THE COMPANY INTENDS TO PURSUE OPPORTUNITIES TO ACQUIRE
INTERESTS IN CONCESSIONAIRES THAT PROVIDE THESE SERVICES, AND/OR TO PROVIDE
FINANCING TO SUCH COMPANIES. THE COMPANY BELIEVES SUCH OPPORTUNITIES COULD
ENTAIL INVESTMENTS, IN THE AGGREGATE, OF BETWEEN APPROXIMATELY US$250
MILLION AND US$500 MILLION DURING THE NEXT THREE YEARS.
SHARE REPURCHASE PROGRAM
DURING THE THIRD QUARTER OF 2006, WE REPURCHASED APPROXIMATELY 44,096.6
MILLION CPOS FOR PS.1,875.9 MILLION IN NOMINAL TERMS.
TELEVISION RATINGS AND AUDIENCE SHARE
NATIONAL URBAN RATINGS AND AUDIENCE SHARE REPORTED BY IBOPE CONFIRM THAT,
IN THE THIRD QUARTER OF 2006, 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 72.8%; IN PRIME TIME (16:00 TO 23:00,
MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 70.6%; AND IN SIGN-ON TO
SIGN-OFF (6:00 TO 24:00, MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO
71.7%.
OUTLOOK FOR 2006
WE CONTINUE TO EXPECT OUR TELEVISION BROADCASTING BUSINESS TO ACHIEVE SALES
GROWTH IN THE HIGH-SINGLE-DIGITS AND OIBDA MARGIN IN EXCESS OF 50% FOR THE
FULL YEAR 2006; ON A CONSOLIDATED BASIS, WE EXPECT OUR OIBDA MARGIN TO
REACH 42%.
ABOUT TELEVISA
GRUPO TELEVISA, S.A., IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING
WORLD AND A MAJOR PARTICIPANT IN THE INTERNATIONAL ENTERTAINMENT BUSINESS.
IT HAS INTERESTS IN TELEVISION PRODUCTION AND BROADCASTING, PRODUCTION OF
PAY TELEVISION NETWORKS, INTERNATIONAL DISTRIBUTION OF TELEVISION
PROGRAMMING, DIRECT-TO-HOME SATELLITE SERVICES, PUBLISHING AND PUBLISHING
DISTRIBUTION, CABLE TELEVISION, RADIO PRODUCTION AND BROADCASTING,
PROFESSIONAL SPORTS AND LIVE ENTERTAINMENT, FEATURE FILM PRODUCTION AND
DISTRIBUTION, GAMING, AND THE OPERATION OF A HORIZONTAL INTERNET PORTAL.
GRUPO TELEVISA ALSO OWNS AN UNCONSOLIDATED EQUITY STAKE IN UNIVISION, THE
LEADING SPANISH-LANGUAGE MEDIA COMPANY IN THE UNITED STATES, AND IN LA
SEXTA, A FREE-TO-AIR TELEVISION VENTURE IN SPAIN.
DISCLAIMER
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
CONSOLIDATED
FINAL PRINTING
-------------------------------------------------------------------------------
GRUPO TELEVISA, S.A.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS
OF SEPTEMBER 30, 2006, EXCEPT PER CPO, PER SHARE, AND PER UDI AMOUNTS)
1. ACCOUNTING POLICIES:
THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF GRUPO TELEVISA,
S.A. (THE "COMPANY"), ITS CONSOLIDATED SUBSIDIARIES, AND THOSE CONSOLIDATED
VARIABLE INTEREST ENTITIES WHERE THE GROUP IS DEEMED THE PRIMARY
BENEFICIARY (COLLECTIVELLY, THE "GROUP"), AS OF SEPTEMBER 30, 2006 AND
2005, AND FOR THE NINE 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 FINANCIAL REPORTING
STANDARDS ("MEXICAN FRS"), 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
YEAR ENDED DECEMBER 31, 2005, WHICH INCLUDE, AMONG OTHER DISCLOSURES, THE
GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE BEEN APPLIED ON A
CONSISTENT BASIS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006.
2. PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT AS OF SEPTEMBER 30, CONSISTED OF:
2006 2005
------------------- -----------------
BUILDINGS Ps. 8,204,260 Ps. 8,160,796
BUILDING IMPROVEMENTS 1,604,927 1,621,806
TECHNICAL EQUIPMENT 19,712,200 18,615,629
SATELLITE TRANSPONDERS 1,759,275 1,726,718
FURNITURE AND FIXTURES 526,974 516,109
TRANSPORTATION EQUIPMENT 1,257,543 1,167,381
COMPUTER EQUIPMENT 1,548,713 1,467,195
------------------- ------------------
34,613,892 33,275,634
ACCUMULATED DEPRECIATION (18,972,521) (17,759,040)
------------------- ------------------
15,641,371 15,516,594
LAND 3,909,298 3,923,320
CONSTRUCTION AND PROJECTS IN PROGRESS 878,727 412,017
------------------- ------------------
Ps. 20,429,396 Ps. 19,851,931
=================== ==================
DEPRECIATION CHARGED TO INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2006 AND 2005, WAS PS.1,713,501 AND PS.1,590,525, RESPECTIVELY.
3. LONG-TERM DEBT SECURITIES:
AS OF SEPTEMBER 30, THE GROUP'S CONSOLIDATED LONG-TERM DEBT SECURITIES
OUTSTANDING WERE AS FOLLOWS:
2006 2005
---------------------------------- -----------------------------
U.S. DOLLAR U.S. DOLLAR
PRINCIPAL PRINCIPAL
AMOUNTS MEXICAN AMOUNTS MEXICAN
LONG-TERM DEBT SECURITIES (THOUSANDS) PESOS (THOUSANDS) PESOS
---------------------------------------- -------------- ---------------- ------------ ---------------
11.875% SERIES "B" SENIOR NOTES DUE
2006 (A) $ - Ps. - $ 5,343 Ps. 59,871
8.000% SENIOR NOTES DUE 2011 (A) (B) 71,951 789,734 75,484 845,845
6.625% SENIOR NOTES DUE 2025 (A) (B) 600,000 6,585,600 600,000 6,723,373
8.500% SENIOR NOTES DUE 2032 (A) 300,000 3,292,800 300,000 3,361,687
9.375% SENIOR NOTES DUE 2013 (C)
11,251 123,491 300,000 3,361,687
-------------- ---------------- ------------ ---------------
$ 983,202 10,791,625 $ 1,280,827 14,352,463
============== ===========
8.15% UDI-DENOMINATED NOTES DUE 2007
(B) (D) 962,250 965,897
---------------- ---------------
Ps. 11,753,875 Ps. 15,318,360
================ ===============
(A) THESE SENIOR NOTES 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. INTEREST ON SENIOR NOTES DUE 2011, 2025 AND 2032, INCLUDING
ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES,
IS 8.41%, 6.97% AND 8.94% PER ANNUM, RESPECTIVELY, AND IS PAYABLE
SEMI-ANNUALLY. THESE SENIOR NOTES 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 2011 AND 2032 WERE PRICED AT
98.793% AND 99.431%, RESPECTIVELY, FOR A YIELD TO MATURITY OF 8.179% AND
8.553%, RESPECTIVELY. THE AGREEMENT OF THESE SENIOR NOTES CONTAINS CERTAIN
COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED
SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PAY TELEVISION NETWORKS
AND PROGRAMMING EXPORTS, TO INCUR OR ASSUME LIENS, PERFORM SALE AND
LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND
SIMILAR TRANSACTIONS. SUBSTANTIALLY ALL OF THESE SENIOR NOTES ARE
REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
(B) IN MARCH AND MAY 2005, THE COMPANY ISSUED SENIOR NOTES DUE 2025 IN THE
AGGREGATE AMOUNT OF U.S.$400 MILLION AND U.S.$200 MILLION, RESPECTIVELY,
WHICH WERE PRICED AT 98.081% AND 98.632%, RESPECTIVELY, FOR A YIELD TO
MATURITY OF 6.802% AND 6.787%, RESPECTIVELY. THE NET PROCEEDS OF THE
U.S.$400 MILLION OFFERING, TOGETHER WITH CASH ON HAND, WERE USED TO FUND
THE GROUP'S TENDER OFFERS MADE AND EXPIRED IN MARCH 2005 FOR ANY OR ALL OF
THE SENIOR NOTES DUE 2011 AND THE MEXICAN PESOS EQUIVALENT OF
UDI-DENOMINATED NOTES DUE 2007, AND PREPAID PRINCIPAL AMOUNT OF THESE
SECURITIES IN THE AMOUNT OF APPROXIMATELY U.S.$222.0 MILLION AND
PS.2,935,097 (NOMINAL), RESPECTIVELY, REPRESENTING APPROXIMATELY 74% AND
76% OF THE OUTSTANDING PRINCIPAL AMOUNT OF THESE SECURITIES, RESPECTIVELY.
THE NET PROCEEDS OF THE U.S.$200 MILLION ISSUANCE WERE USED FOR CORPORATE
PURPOSES, INCLUDING THE PREPAYMENT OF SOME OF THE GROUP'S OUTSTANDING
INDEBTEDNESS.
(C) THESE SENIOR NOTES ARE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF SKY
MEXICO. INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS
PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.8580%, AND IS
PAYABLE SEMI-ANNUALLY. SKY MEXICO MAY, AT ITS OWN OPTION, REDEEM THESE
SENIOR NOTES, IN WHOLE OR IN PART, AT ANY TIME ON OR AFTER SEPTEMBER 19,
2008 AT REDEMPTION PRICES FROM 104.6875% TO 101.5625% BETWEEN SEPTEMBER 19,
2008 THROUGH SEPTEMBER 18, 2011, OR 100% COMMENCING ON SEPTEMBER 19, 2011,
PLUS ACCRUED AND UNPAID INTEREST, IF ANY. IN APRIL 2006, SKY MEXICO
CONCLUDED AN OFFER TO PURCHASE ALL OF THESE SENIOR NOTES WITH THE TENDER OF
96.25% OF THE OUTSTANDING PRINCIPAL AMOUNT OF THESE SENIOR NOTES IN THE
AGGREGATE AMOUNT OF APPROXIMATELY U.S.$324.3 MILLION. THIS TRANSACTION
TOGETHER WITH RELATED FEES AND EXPENSES WERE FINANCED WITH TWO 10-YEAR BANK
LOANS ENTERED INTO BY SKY MEXICO AND GUARANTEED BY THE COMPANY IN THE
AGGREGATE PRINCIPAL AMOUNT OF PS.3,500,000, AND THE REMAINING WITH CASH ON
HAND. ANNUAL INTEREST ON THIS MEXICAN PESO INDEBTEDNESS IS AT THE WEIGHTED
AVERAGE OF 8.836% FOR THE FIRST THREE YEARS, AND FLUCTUATES BETWEEN 8.74%
AND THE MEXICAN INTERBANK RATE PLUS 24 BASIS POINTS FOR THE LAST SEVEN
YEARS, AND IS PAYABLE ON A MONTHLY BASIS.
(D) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION"
OR "UDIS"), REPRESENTING 258,711,400 UDIS AS OF SEPTEMBER 30, 2006 AND
2005, RESPECTIVELY. INTEREST ON THESE NOTES IS PAYABLE SEMI-ANNUALLY. THE
BALANCE AS OF SEPTEMBER 30, 2006 AND 2005 INCLUDES RESTAMENT OF PS.247,583
AND PS.221,979, RESPECTIVELY. THE UDI VALUE AS OF SEPTEMBER 30, 2006, WAS
OF PS. 3.719397 PER UDI.
THROUGH JUNE 30, 2006, THE GROUP DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF ITS OUTSTANDING SENIOR NOTES DUE IN 2011
AND 2032, AND A PORTION OF ITS SENIOR NOTES DUE 2025 IN THE AMOUNT OF
U.S.$400 MILLION. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN OR LOSS
ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT WAS CREDITED OR CHARGED
DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS). BEGINNING JULY 1,
2006, THE GROUP'S INVESTMENT IN SHARES OF UNIVISION IS ACCOUNTED FOR AS AN
AVAILABLE-FOR-SALE FINANCIAL ASSET WHOSE FAIR VALUE IS BEING HEDGED IN
RESPECT OF ANY FOREIGN CURRENCY FLUCTUATION WITH A DESIGNATED PORTION OF
THE GROUP'S SENIOR NOTES DUE 2011, 2025 AND 2032, IN THE AGGREGATE AMOUNT
OF APPROXIMATELY U.S.$771.9 MILLION. CONSEQUENTLY, ANY FOREIGN EXCHANGE
GAIN OR LOSS ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT IS CREDITED OR
CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS) (SEE NOTES
7 AND 16).
IN JANUARY 2006, THE COMPANY REPURCHASED APPROXIMATELY U.S.$3.5
MILLION, OF THE OUTSTANDING PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2011 IN
THE AGGREGATE AMOUNT OF APPROXIMATELY U.S.$4.0 MILLION.
4. CONTINGENCIES:
IN JUNE 2003, THE COMPANY WAS NOTIFIED BY THE MEXICAN TAX AUTHORITY OF
A FEDERAL TAX CLAIM MADE AGAINST THE COMPANY FOR APPROXIMATELY PS.960,700,
INCLUDING PENALTIES AND SURCHARGES, FOR AN ALLEGED ASSETS TAX LIABILITY FOR
THE YEAR 1994. THE COMPANY BELIEVES IT HAS MERITORIOUS DEFENSE AGAINST THIS
CLAIM.
THERE ARE OTHER 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 SEPTEMBER 30 IS ANALYZED AS
FOLLOWS:
2006 2005
----------------------------- ------------------------------
NOMINAL RESTATED NOMINAL RESTATED
PESOS PESOS PESOS PESOS
------------- -------------- --------------- -------------
CAPITAL STOCK ISSUED Ps.2,524,174 Ps. 9,971,827 Ps. 2,524,174 Ps.10,133,415
ADDITIONAL PAID-IN CAPITAL 3,841,792 4,316,354 3,841,792 4,316,354
LEGAL RESERVE 1,197,574 2,026,683 1,018,068 1,842,750
RESERVE FOR REPURCHASE OF SHARES 1,682,757 4,391,272 2,255,655 5,886,290
UNAPPROPRIATED EARNINGS 7,585,874 16,553,757 2,961,418 11,781,298
CUMULATIVE GAIN ON EQUITY OF ASSOCIATES 3,443,516 4,005,965 3,454,442 4,062,284
CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (3,060,242) (2,197,681) (3,060,242)
ACCUMULATED OTHER COMPREHENSIVE LOSS -- (5,367,568) -- (4,074,330)
NET INCOME FOR THE NINE MONTHS -- 6,149,532 3,552,138 3,697,531
SHARES REPURCHASED (6,172,135) (7,206,202) (6,700,987) (6,975,265)
-------------- -------------
TOTAL MAJORITY STOCKHOLDERS' EQUITY Ps.31,781,378 Ps.27,610,085
============== =============
IN APRIL 2006, THE COMPANY'S STOCKHOLDERS APPROVED (I) THE PAYMENT OF
A DIVIDEND IN THE AGGREGATE AMOUNT OF PS.1,102,677 (PS.1,087,049 NOMINAL),
WHICH CONSISTED OF NOMINAL PS.0.35 PER CPO AND NOMINAL PS.0.00299145 PER
SHARE, NOT IN THE FORM OF A CPO, AND WAS PAID IN CASH IN MAY 2006; AND (II)
THE CANCELLATION OF APPROXIMATELY 5,888.5 MILLION SHARES OF CAPITAL STOCK
IN THE FORM OF APPROXIMATELY 50.3 MILLION CPOS, WHICH WERE REPURCHASED BY
THE COMPANY IN 2004, 2005 AND 2006.
AS OF SEPTEMBER 30, 2006, THE NUMBER OF SHARES ISSUED, REPURCHASED AND
OUTSTANDING IS PRESENTED AS FOLLOWS:
ISSUED REPURCHASED OUTSTANDING
------------------ ---------------- ----------------
SERIES "A" SHARES 123,478,023,925 9,770,784,685 113,707,239,240
SERIES "B" SHARES 59,162,448,976 5,665,838,997 53,496,609,979
SERIES "D" SHARES 90,372,213,365 5,264,028,439 85,108,184,926
SERIES "L" SHARES 90,372,213,365 5,264,028,439 85,108,184,926
------------------ ---------------- -----------------
363,384,899,631 25,964,680,560 337,420,219,071
================== ================ =================
THE COMPANY'S SHARES REPURCHASED, AS WELL AS THEIR NET COST, AS OF
SEPTEMEBER 30, 2006, ARE PRESENTED AS A CHARGE TO STOCKHOLDERS' EQUITY, AS
FOLLOWS:
A, B, D, AND L SHARES
-----------------------------------------
IN THE FORM NOT IN THE
OF CPOS FORM OF CPOS TOTAL NET COST
---------------------------------------------------------------
REPURCHASE PROGRAM (1) 5,159,302,200 - 5,159,302,200 PS. (1,889,806)
OWNED BY A COMPANY'S SUBSIDIARY (2) (3) 3,525,838,875 537,563,559 4,063,402,434 (906,614)
ACQUIRED BY A COMPANY'S TRUST (4) 8,911,753,812 7,830,222,114 16,741,975,926 (4,026,137)
ADVANCE FOR ACQUISITION OF SHARES (2) - - - (383,645)
==============================================================
17,596,894,887 8,367,785,673 25,964,680,560 PS. (7,206,202)
==============================================================
(1) IN THE FIRST AND THIRD QUARTERS OF 2006, THE COMPANY REPURCHASED
5,589,675,000 SHARES IN THE FORM OF 47,775,000 CPOS, IN THE AMOUNT OF
PS.2,047,245 (PS.2,030,712 NOMINAL). IN APRIL 2006, THE COMPANY
CANCELLED 5,888,469,600 SHARES IN THE FORM OF 50,328,800 CPOS IN THE
AMOUNT OF PS.1,656,606 (PS.1,570,121 NOMINAL).
(2) IN CONNECTION WITH THE COMPANY'S STOCK PURCHASE PLAN.
(3) IN MARCH AND JULY 2006, THE GROUP RELEASED 2,159,501,058 SHARES AND
1,272,976,263 SHARES, RESPECTIVELY, IN THE FORM OF 18,457,274 AND
10,880,139 CPOS, RESPECTIVELY, IN THE AMOUNT OF APPROXIMATELY
PS.170,597 AND PS.191,259, RESPECTIVELY, IN CONNECTION WITH THE
COMPANY'S STOCK PURCHASE PLAN.
(4) IN CONNECTION WITH THE COMPANY'S LONG-TERM RETENTION PLAN. IN APRIL
2006, THE GROUP RELEASED 40,018,680 SHARES IN THE FORM OF 342,040
CPOS, IN THE AMOUNT OF PS.4,600 IN CONNECTION WITH THIS PLAN.
THE GROUP RECOGNIZED A SHARE-BASED COMPENSATION EXPENSE OF PS.134,979
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006, WHICH AMOUNT WAS REFLECTED IN
CONSOLIDATED INCOME AS CORPORATE EXPENSE, AND ACCRUED IN MAJORITY
STOCKHOLDERS' EQUITY (SEE NOTE 11).
ON MARCH 22, 2006, THE COMPANY CHANGED FROM 20 TO FIVE CPOS
REPRESENTING EACH GDS.
6. RESERVE FOR REPURCHASE OF SHARES:
AS OF SEPTEMBER 30, 2006, THE COMPANY MAINTAINS A RESERVE FOR
REPURCHASE OF SHARES, WHICH WAS APPROVED BY THE SHAREHOLDERS OF THE COMPANY
IN PRIOR YEARS BY APPROPRIATING FROM ACCUMULATED EARNINGS THE AMOUNT OF
PS.7,369,205. THIS RESERVE WAS USED IN 1999, 2000, 2003 AND 2006, IN THE
AMOUNT OF PS.302,996, PS.677,317, PS.503,602 AND PS.1,495,018,
RESPECTIVELY, IN CONNECTION WITH THE CANCELLATION OF SHARES REPURCHASED BY
THE COMPANY.
IN ACCORDANCE WITH THE MEXICAN SECURITIES LAW, ANY AMOUNT OF SHARES
REPURCHASED AND HELD BY THE COMPANY SHOULD BE RECOGNIZED AS A CHARGE TO
STOCKHOLDERS' EQUITY, AND ANY CANCELLATION OF SHARES REPURCHASED SHOULD BE
RECOGNIZED AS A REDUCTION OF THE COMPANY'S CAPITAL STOCK ISSUED FOR AN
AMOUNT PROPORTIONATE TO THE SHARES CANCELLED.
7. INTEGRAL COST OF FINANCING:
INTEGRAL COST OF FINANCING FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSISTED OF:
2006 2005
--------------- ---------------
INTEREST EXPENSE (1) Ps. 1,454,881 Ps. 1,638,974
INTEREST INCOME (854,735) (757,662)
FOREIGN EXCHANGE (GAIN) LOSS, NET (2) (14,801) 605,531
LOSS FROM MONETARY POSITION, NET (3) 101,958 13,156
--------------- ---------------
Ps. 687,303 Ps. 1,499,999
=============== ================
(1) INCLUDES RESTATEMENT OF UDI-DENOMINATED DEBT SECURITIES OF PS.21,370
AND PS.19,026 NET IN THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND
2005, RESPECTIVELY.
(2) NET OF FOREIGN EXCHANGE GAIN IN 2006 INCLUDES A NET GAIN FROM FOREIGN
CURRENCY OPTION CONTRACTS OF PS.23,725 AND NET FOREIGN EXCHANGE LOSS
IN 2005 INCLUDES A NET LOSS FOREIGN CURRENCY DERIVATIVE CONTRACT OF
PS.587,230. A FOREIGN EXCHANGE LOSS IN 2006 AND A FOREIGN EXCHANGE
GAIN IN 2005 OF PS.273,049 AND PS.316,565, RESPECTIVELY, WERE HEDGED
BY THE GROUP'S NET INVESTMENT IN UNIVISION AND RECOGNIZED IN
STOCKHOLDERS' EQUITY AS OTHER COMPREHENSIVE LOSS.
(3) THE LOSS FROM MONETARY POSITION REPRESENTS THE EFFECTS OF INFLATION,
AS MEASURED BY THE NCPI IN THE CASE OF MEXICAN COMPANIES, OR THE
GENERAL INFLATION INDEX OF EACH COUNTRY IN THE CASE OF FOREIGN
SUBSIDIARIES, ON THE MONETARY ASSETS AND LIABILITIES AT THE BEGINNING
OF EACH MONTH. INCLUDES MONETARY LOSS IN 2006 AND 2005 OF PS.70,990
AND PS.72,614, RESPECTIVELY, ARISING FROM TEMPORARY DIFFERENCES OF
NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX.
8. DEFERRED TAXES:
THE DEFERRED INCOME TAX LIABILITY AS OF SEPTEMBER 30, WAS DERIVED
FROM:
2006 2005
-------------- ----------------
ASSETS:
ACCRUED LIABILITIES Ps. 800,691 Ps. 599,083
GOODWILL 801,307 887,938
TAX LOSS CARRYFORWARDS 1,245,149 1,037,180
ALLOWANCE FOR DOUBTFUL ACCOUNTS 358,021 432,085
CUSTOMER ADVANCES 1,347,853 1,440,136
OTHERS ITEMS 191,568 -
-------------- ----------------
4,744,589 4,396,422
-------------- ----------------
LIABILITIES:
INVENTORIES (280,480) (804,597)
PROPERTY, PLANT AND EQUIPMENT - NET (1,225,147) (1,352,335)
OTHER ITEMS (2,817,038) (1,276,718)
INNOVA (1,098,582) (1,632,720)
-------------- ----------------
(5,421,247) (5,066,370)
-------------- ----------------
DEFERRED INCOME TAX OF MEXICAN COMPANIES (676,658) (669,948)
DEFERRED TAX OF FOREIGN SUBSIDIARIES (64,273) (318,704)
ASSETS TAX 1,384,233 1,485,969
VALUATION ALLOWANCE (2,555,530) (2,531,722)
RECOVERABLE INCOME TAX FROM REPURCHASE OF SHARES - 292,618
-------------- ----------------
DEFERRED INCOME TAX LIABILITY (1,912,228) (1,741,787)
EFFECT ON CHANGE OF INCOME TAX RATES 32,549 190,929
-------------- ----------------
DEFERRED TAX LIABILITY OF CONTINUING OPERATIONS Ps.(1,879,679) Ps. (1,550,858)
============== ================
9. EXTRAORDINARY ITEMS:
NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2006 AND 2005.
10. DISCONTINUED OPERATIONS:
NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN C-15
"IMPAIRMENT IN THE VALUE OF LONG-LIVED ASSETS AND THEIR DISPOSAL," WERE
RECOGNIZED IN INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005.
11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES:
IN 2005, IN CONNECTION WITH THE ADOPTION OF THE GUIDELINES OF IFRS 2,
"SHARE-BASED PAYMENT", THE GROUP RECOGNIZED A NON-TAXABLE CUMULATIVE LOSS
EFFECT OF ACCOUNTING CHANGE, IN THE AMOUNT OF PS.331,515, WHICH WAS
REFLECTED IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED
DECEMBER 31, 2005 (SEE NOTE 5).
EFFECTIVE JANUARY 1, 2005, IN CONNECTION WITH THE ADOPTION OF CERTAIN
PROVISIONS OF REVISED BULLETIN D-3 RELATED TO RECOGNITION OF SEVERANCE
INDEMNITIES, THE GROUP RECOGNIZED A CUMULATIVE LOSS EFFECT OF ACCOUNTING
CHANGE IN THE AMOUNT OF PS.187,048, NET OF A RELATED INCOME TAX BENEFIT OF
PS.80,164 IN ITS CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED
DECEMBER 31, 2005.
12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED):
THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED SEPTEMBER 30,
2006, ARE AS FOLLOWS:
HISTORICAL NET RESULT (1) RESTATED NET RESULT
-------------------------------- ---------------------------------
INDEX AT END
QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER
-------------------- ----------------- -------------- -------------- --------------- ---------------
4 / 05 Ps. 6,125,542 Ps. 2,517,026 116.301 Ps. 6,276,647 Ps. 2,579,116
1 / 06 1,293,608 1,293,608 117.309 1,314,130 1,314,130
2 / 06 3,598,281 2,307,431 117.059 3,663,169 2,349,041
3 / 06 6,149,532 2,486,361 119.170 6,149,532 2,486,361
(1) AS REPORTED IN EACH QUARTER.
13. INFORMATION BY SEGMENTS:
INFORMATION BY SEGMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006
AND 2005, WERE AS FOLLOWS:
TOTAL INTERSEGMENT CONSOLIDATED OPERATING
REVENUES REVENUES REVENUES INCOME (LOSS)
------------- ------------- -------------- --------------
SEPTEMBER 2006:
TELEVISION BROADCASTING Ps. 14,582,524 Ps. 388,799 Ps. 14,193,725 Ps. 6,533,060
PAY TELEVISION NETWORKS 964,946 203,571 761,375 468,843
PROGRAMMING EXPORTS 1,530,843 - 1,530,843 622,304
PUBLISHING 1,974,180 15,550 1,958,630 314,387
PUBLISHING DISTRIBUTION 314,156 8,618 305,538 1,382
SKY MEXICO 5,473,417 107,152 5,366,265 1,782,725
CABLE TELEVISION 1,407,319 3,383 1,403,936 316,757
RADIO 314,079 25,216 288,863 43,094
OTHER BUSINESSES 1,023,546 56,211 967,335 (213,422)
ELIMINATIONS AND CORPORATE
EXPENSES (808,500) (808,500) - (280,502)
-------------- -------------- -------------- --------------
CONSOLIDATED TOTAL Ps. 26,776,510 Ps. - Ps. 26,776,510 Ps. 9,588,628
============== ============== ============== ==============
SEPTEMBER 2005:
TELEVISION BROADCASTING Ps. 13,040,089 Ps. 422,417 Ps. 12,617,672 Ps. 5,318,805
PAY TELEVISION NETWORKS 807,942 229,098 578,844 333,849
PROGRAMMING EXPORTS 1,418,012 - 1,418,012 491,390
PUBLISHING 1,795,853 32,013 1,763,840 288,514
PUBLISHING DISTRIBUTION 303,423 7,512 295,911 (14,477)
SKY MEXICO 4,537,630 24,014 4,513,616 1,207,023
CABLE TELEVISION 1,040,271 2,055 1,038,216 94,231
RADIO 242,761 40,067 202,694 12,592
OTHER BUSINESSES 1,015,735 52,234 963,501 (110,954)
ELIMINATIONS AND CORPORATE
EXPENSES (809,410) (809,410) - (134,562)
CONSOLIDATED TOTAL -------------- -------------- -------------- --------------
Ps. 23,392,306 Ps. - Ps. 23,392,306 Ps. 7,486,411
============== ============== ============== ==============
14. SKY MEXICO
IN THE FIRST QUARTER OF 2006, AFFILIATES OF DIRECTV COMPLETED THE
ACQUISITION OF EQUITY INTERESTS IN SKY MEXICO, WHICH WERE FORMERLY HELD BY
NEWS CORP, AND LIBERTY MEDIA. THIS ACQUISITION INCLUDED THE CAPITALIZATION
OF THE PURCHASE PRICE OF THE LIST OF SUBSCRIBERS SOLD BY DIRECTV MEXICO TO
SKY MEXICO IN THE AGGREGATE AMOUNT OF PS.631,757. AS A RESULT OF THESE
TRANSACTIONS, THE GROUP'S EQUITY STAKE IN SKY MEXICO WAS REDUCED FROM 60%
TO 52.7%, AND DIRECTV BECAME THE OWNER OF THE REMAINING 47.3% STAKE.
IN THE SECOND QUARTER OF 2006, THE GROUP EXERCISED ITS OPTION TO
ACQUIRE TWO-THIRDS OF THE EQUITY INTEREST IN SKY MEXICO THAT DIRECTV
ACQUIRED FROM LIBERTY MEDIA. THIS MINORITY INTEREST ACQUISITION AMOUNTED TO
APPROXIMATELY U.S.$58.7 MILLION, AND WAS FINANCED WITH CASH ON HAND. AFTER
THIS TRANSACTION, THE GROUP'S INTEREST IN SKY MEXICO IS 58.7%, AND THE
REMAINING 41.3% IS OWNED BY DIRECTV. UNDER MEXICAN FRS, THE GROUP
RECOGNIZED THIS MINORITY INTEREST ACQUISITION AS A TRANSACTION BETWEEN
MINORITY AND MAJORITY EQUITY OWNERS, AND THE EXCESS OF THE PURCHASE PRICE
PAID OVER THE CARRYING VALUE OF THE NET ASSETS ACQUIRED WAS ACCOUNTED FOR
AS A CAPITAL DISTRIBUTION.
15. INVESTMENTS
IN THE NINE MONTHS ENDED SEPTEMBER 30, 2006, THE GROUP MADE EQUITY
INVESTMENTS IN CONNECTION WITH ITS 40% INTEREST IN LA SEXTA, THE
BROADCASTING TELEVISION VENTURE IN SPAIN, IN THE AMOUNT OF APPROXIMATELY
56.9 MILLION EUROS (PS.795,379).
16. UNIVISION:
IN THE THIRD QUARTER 2006, THE GROUP ANNOUNCED ITS INTENTION TO HAVE
ITS SHARES OF UNIVISION CASHED OUT IN CONNECTION WITH THE MERGER
CONTEMPLATED BY A MERGER AGREEMENT ENTERED INTO BY UNIVISION AND AN
ACQUIRING INVESTOR GROUP. AT THE EFFECTIVE TIME OF THE PROPOSED MERGER,
WHICH IS STILL SUBJECT TO REGULATORY APPROVALS IN THE UNITED STATES AND
WHICH UNIVISION HAS STATED IS EXPECTED TO BE CONSUMMATED IN THE FIRST HALF
OF 2007, SHARES OF UNIVISION COMMON STOCK, INCLUDING APPROXIMATELY 30.2
MILLION SHARES OWNED BY THE GROUP, WILL BE CONVERTED INTO THE RIGHT TO
RECEIVE U.S.$36.25 IN CASH PER SHARE PLUS INTEREST AT A RATE OF 8% PER YEAR
IF THE MERGER IS NOT COMPLETED BY APRIL 26, 2007. ALSO, UNDER THE TERMS OF
THIS MERGER AGREEMENT, ALL OF THE GROUP'S WARRANTS TO ACQUIRE SHARES OF
UNIVISION COMMON STOCK WILL BE EITHER CASHED OUT OR CANCELLED DEPENDING
WHETHER THEY ARE IN OR OUT OF THE MONEY.
ACCORDINGLY, BEGINNING JULY 1, 2006, THE GROUP (I) CLASSIFIED ITS
INVESTMENT IN SHARES OF UNIVISION AS A CURRENT AVAILABLE-FOR-SALE FINANCIAL
ASSET IN ITS CONSOLIDATED BALANCE SHEET; (II) DISCONTINUED THE RECOGNITION
OF ANY EQUITY RESULT RELATED TO THIS INVESTMENT SUBSEQUENT TO JUNE 30, 2006
(UNTIL THAT DATE, THE GROUP'S INVESTMENT IN SHARES OF UNIVISION WAS DEEMED
PERMANENT AND ACCOUNTED FOR BY USING THE EQUITY METHOD); (III) RECOGNIZED
THIS FINANCIAL ASSET AT FAIR VALUE WITH ANY RELATED GAIN OR LOSS, NET OF
APPLICABLE INCOME TAX, ACCOUNTED FOR AS OTHER ACCUMULATED COMPREHENSIVE
RESULT IN ITS CONSOLIDATED STOCKHOLDERS' EQUITY; AND (IV) DESIGNATED THIS
FINANCIAL ASSET AS BEING HEDGED BY A PORTION OF THE GROUP'S
U.S.-DOLLAR-DENOMINATED LONG-TERM DEBT IN THE AMOUNT OF APPROXIMATELY
U.S.$771.9 MILLION (SEE NOTE 3). THE FAIR VALUE OF THE GROUP'S FINANCIAL
INVESTMENT IN SHARES OF UNIVISION AT SEPTEMBER 30, 2006 AMOUNTED TO
APPROXIMATELY U.S.$1.1 BILLION.
- - - - - - - - -
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
--------------------------------
(Registrant)
Dated: October 31, 2006 By /s/ Jorge Lutteroth Echegoyen
------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President