kr6kpress_grupo.htm
 
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K
 
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of July, 2018
 
GRUPO TELEVISA, S.A.B.
(Translation of registrant’s name into English)
 
 
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210, Mexico City, Mexico
(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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).)
 
Yes
 
No
  
x
 
 
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).)
 
 
Yes
 
No
  
x
          
 
 
 
TLEVISA
Consolidated
Ticker:       TLEVISA
Quarter:     2     Year:    2018
 

Quarterly Financial Information
   
[105000] Management commentary
 
2
[110000] General information about financial statements
 
11
[210000] Statement of financial position, current/non-current
 
13
[310000] Statement of comprehensive income, profit or loss, by function of expense
 
15
[410000] Statement of comprehensive income, OCI components presented net of tax
 
16
[520000] Statement of cash flows, indirect method
 
18
[610000] Statement of changes in equity - Accumulated Current
 
20
[610000] Statement of changes in equity - Accumulated Previous
 
23
[700000] Informative data about the Statement of financial position
 
26
[700002] Informative data about the Income statement
 
27
[700003] Informative data - Income statement for 12 months
 
28
[800001] Breakdown of credits
 
29
[800003] Annex - Monetary foreign currency position
 
31
[800005] Annex - Distribution of income by product
 
32
[800007] Annex - Financial derivative instruments
 
33
[800100] Notes - Subclassifications of assets, liabilities and equities
 
39
[800200] Notes - Analysis of income and expense
 
43
[800500] Notes - List of notes
 
44
[800600] Notes - List of accounting policies
 
45
[813000] Notes - Interim financial reporting
 
46
Footnotes
79
 
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[105000] Management commentary
 

Management commentary
Mexico City, July 9, 2018 — Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “Televisa” or “the Company”), today announced results for second-quarter 2018. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

The following table sets forth condensed consolidated statements of income for the quarters ended June 30, 2018 and 2017, in millions of Mexican pesos: 
 
2Q’18
Margin %
2Q’17
Margin %
Change %
Net sales
26,701.8
100.0
22,976.8
100.0
16.2
Net income
4,760.8
17.8
1,881.6
8.2
153.0
Net income attributable to stockholders of the Company
4,297.4
16.1
1,419.2
6.2
202.8
Segment net sales
27,768.5
100.0
23,764.1
100.0
16.9
Operating segment income (1)
10,752.8
38.7
9,423.3
39.7
14.1
(1) The operating segment income margin is calculated as a percentage of segment net sales.

Net sales increased 16.2% to Ps.26,701.8 million in second-quarter 2018 compared with Ps.22,976.8 million in second-quarter 2017. This increase mainly was attributable to revenue growth in the Content and Cable segments. Operating segment income increased by 14.1%, reaching Ps.10,752.8 million with a margin of 38.7%.
 
Net income attributable to stockholders of the Company increased to Ps.4,297.4 million in second-quarter 2018 compared to Ps.1,419.2 million in second-quarter 2017. The net increase of Ps.2,878.2 million mainly reflected (i) a Ps.3,623.5 million favorable change in other income or expense, net, mainly due to the sale of our investment in Imagina Media Audiovisual, S.L. (“Imagina”); (ii) a Ps.1,363.1 million increase in operating income before depreciation and amortization; and (iii) a Ps.390.2 million increase in share of income of associates and joint ventures, net. These favorable variances were partially offset by (i) a Ps.1,594.9 million increase in income taxes; (ii) a Ps.633.2 million increase in finance expense, net, mainly resulting from the depreciation of the Mexican peso against the U.S. dollar; and (iii) a Ps.269.5 million increase in depreciation and amortization.

Disclosure of nature of business
 
Televisa, is a leading media company in the Spanish-speaking world, an important cable operator in Mexico, and an operator of a leading direct-to-home satellite pay television system in Mexico. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 50 countries through 26 pay-tv brands and television networks, cable operators and over the top or “OTT” services. In the United States, Televisa´s audiovisual content is distributed through Univision, the leading media company serving the Hispanic market. Univision broadcasts Televisa’s audiovisual content through multiple platforms in exchange for a royalty payment. In addition, Televisa has equity and Warrants which upon their exercise would represent approximately 36% on a fully-diluted, as-converted basis of the equity capital in UHI, the controlling company of Univision. Televisa’s cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers through five cable multiple system operators in Mexico. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, and gaming.

 
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Disclosure of management’s objectives and its strategies for meeting those objectives
 
 
We intend to leverage our position as a leading media company in the Spanish-speaking world to continue expanding our business while maintaining profitability and financial discipline. We intend to do so by maintaining our leading position in the Mexican television market, by continuing to produce high quality programming and by improving our sales and marketing efforts while maintaining high operating margins and expanding our cable business.

By leveraging all our business segments and capitalizing on their synergies to extract maximum value from our content and our distribution channels, we also intend to continue expanding our cable business, increasing our international programming sales worldwide and strengthening our position in the growing U.S.-Hispanic market. We also intend to continue developing and expanding Sky, our DTH platform, and our cable businesses. We will continue to strengthen our position and will continue making additional investments, which could be substantial in size, in the DTH and cable industry in accordance with the consolidation of the cable market in Mexico, and we will also continue developing our publishing business and maintain our efforts to become an important player in the gaming industry.

We intend to continue to expand our business by developing new business initiatives and/or through business acquisitions and investments in Mexico, the United States and elsewhere. However, we continue to evaluate our portfolio of assets, in order to determine whether to continue plans to dispose of select non-core operations.
 
 
Disclosure of entity’s most significant resources, risks and relationships
We expect to fund our operating cash needs during 2018, other than cash needs in connection with any potential investments and acquisitions, through a combination of cash from operations and cash on hand. We intend to finance our potential investments or acquisitions in 2018 through available cash from operations, cash on hand and/or borrowings. The amount of borrowings required to fund these cash needs in 2018 will depend upon the timing of such transactions and the timing of cash payments from advertisers under our advertising sales plan.
 
The investing public should consider the risks described as follows, as well as the risks described in “Key Information Risk Factors” in the Company’s Annual Report 2017, which are not the only risks the Company faces. Risks and uncertainties unknown by the Company, as well as those that the Company currently considers as not relevant, could affect its operations and activities.
 
Risk Factors Related with Political Developments:

•
Imposition of fines by regulators and other authorities could adversely affect our financial condition and results of operations
•
Social Security Law
•
Federal Labor Law
•
Mexican tax laws
•
Elimination of the tax consolidation regime
•
Limitation of the deduction of non-taxable employee benefits
•
Increase to the border Value Added Tax rate
•
Regulations of the General Health Law on advertising
•
Weaknesses in internal controls over financial reporting
•
Changes in U.S. tax law
•
Mexican Securities Market Law
•
Renewal or revocation of our concessions
 
 
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Risk Factors Related to our Business:

•
Control of a stockholder
•
Measures for the prevention of the taking of control
•
Competition
•
Seasonal nature of our business
•
Loss of transmission or loss of the use of satellite transponders
•
Incidents affecting our network and information systems or other technologies
•
Results of operations of UHI
•
Uncertainty in global financial markets
•
Renegotiation of Trade Agreements or other changes in foreign policy by the presidential administration in the United States
•
Political events in Mexico
 
Disclosure of results of operations and prospects

The following table presents consolidated results for the second-quarters ended June 30, 2018 and 2017, for each of our business segments. Consolidated results for the second-quarter 2018 and 2017 are presented in millions of Mexican pesos.
Net Sales
2Q’18
%
2Q’17
 %
Change %
Subtotal Content
9,247.9
33.3
8,075.9
34.0
14.5
World Cup rights
1,723.5
6.2
n/a
n/a
n/a
Content
10,971.4
39.5
8,075.9
34.0
35.9
Sky
5,658.8
20.4
5,641.9
23.7
0.3
Cable
8,825.7
31.8
8,036.7
33.8
9.8
Other Businesses
2,312.6
8.3
2,009.6
8.5
15.1
Segment Net Sales
27,768.5
100.0
23,764.1
100.0
16.9
Intersegment Operations(1)
(1,066.7)
  
(787.3)
  
(35.5)
Net Sales
26,701.8
 
22,976.8
  
16.2

Operating Segment Income (2)
2Q’18
Margin %
2Q’17
Margin %
Change %
Subtotal Content
3,477.1
37.6
3,185.1
39.4
9.2
World Cup rights
817.2
47.4
n/a
n/a
n/a
Content
4,294.3
39.1
3,185.1
39.4
34.8
Sky
2,540.9
44.9
2,655.9
47.1
(4.3)
Cable
3,724.4
42.2
3,442.3
42.8
8.2
Other Businesses
193.2
8.4
140.0
7.0
38.0
Operating Segment Income
10,752.8
38.7
9,423.3
39.7
14.1
Corporate Expenses
(520.3)
(1.9)
(553.9)
(2.3)
6.1
Depreciation and Amortization
(4,848.1)
18.2
(4,578.6)
19.9
(5.9)
Other Income (expense), net
3,237.9
12.1
(385.6)
(1.7)
n/a
Operating Income
8,622.3
32.3
3,905.2
17.0 
120.8
(1) For segment reporting purposes, intersegment operations are included in each of the segment operations.
(2) Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.
 
Content
Second-quarter sales increased by 35.9% to Ps.10,971.4 million compared with Ps.8,075.9 million in second-quarter 2017. Excluding the non-recurring revenue originated in the sublicensing of certain World Cup rights, but including advertising revenue originated in the transmission of the World Cup, sales increased 14.5% to Ps.9,247.9 million.
   
 
 
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Millions of Mexican pesos
2Q’18
%
2Q’17
%
Change %
  Advertising 5,265.8 48.0 4,826.6 59.8 9.1
 
Network Subscription
1,200.8
10.9
941.1
11.6
27.6
 
Licensing and Syndication
2,781.3
25.4
2,308.2
28.6
20.5
  Subtotal Content 9,247.9 84.3  8,075.9  100.0  14.5
  World Cup rights  1,723.5 15.7  n/a  n/a  n/a
 
Net Sales
10,971.4
100.0
8,075.9
100.0
35.9
 
Advertising
Advertising revenue increased by 9.1% to Ps.5,265.8 million compared with Ps.4,826.6 million in second-quarter 2017. The increase in sales is explained by the successful transition to the new pricing methodology and by the incremental revenue originated in the transmission of the World Cup.
 
Network Subscription Revenue
Second-quarter Network Subscription Revenue increased by 27.6% to Ps.1,200.8 million compared with Ps.941.1 million in second-quarter 2017. The increase is mainly explained by repackaging of our networks which now includes additional rights that resulted in higher overall price. This came into effect in the fourth quarter of last year.

Licensing and Syndication
Second-quarter Licensing and Syndication revenue increased by 20.5% to Ps.2,781.3 million compared with Ps.2,308.2 million in second-quarter 2017. Royalties from Univision increased by 25.2% to U.S.$102.6 million in second-quarter 2018 from U.S.$81.9 million in second-quarter 2017. The increase is mainly explained by the step up in the royalty rate.
 
World Cup
This quarter, Content sales benefited from the sublicensing of certain of the broadcast and digital rights of the World Cup in Mexico and other Latin American markets, by Ps.1,723.5 million.
 
Second-quarter operating segment income increased by 34.8% to Ps.4,294.3 million compared with Ps.3,185.1 million in second-quarter 2017. The margin was 39.1%. Operating segment income includes Ps.817.2 million from the sublicensing of certain broadcast and digital rights of the World Cup. Excluding the sublicensing of this World Cup rights, operating segment income increased 9.2%
   
Sky
Second-quarter sales increased by 0.3% to Ps.5,658.8 million compared with Ps.5,641.9 million in second-quarter 2017. The number of net active subscribers increased by 51,256 during the quarter to 7,961,481 as of June 30, 2018, compared with 8,013,097 as of June 30, 2017. Sky ended the quarter with 180,482 subscribers in Central America and the Dominican Republic.

Second-quarter operating segment income decreased by 4.3% to Ps.2,540.9 million compared with Ps.2,655.9 million in second-quarter 2017. The margin remained solid at 44.9%.
Cable
Second-quarter sales increased by 9.8% to Ps.8,825.7 million compared with Ps. Ps.8,036.7 million in second-quarter 2017.

Total revenue generating units, or RGUs, reached 10.7 million. Quarterly growth was mainly driven by 136 thousand data net additions. Video net additions were 78 thousand and voice net additions were 115 thousand. Total net additions during the quarter were more than 329 thousand, the highest in the past ten quarters. Over the last twelve months, total net additions have reached over 1 million RGUs.
 
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The following table sets forth the breakdown of RGUs per service type for our Cable segment as of June 30, 2018 and 2017.
   
RGUs
2Q’18
2Q’17
  
   
Video
4,315,859
4,092,414
  
   
Broadband
4,106,599
3,495,575
  
   
Voice
2,273,073
2,075,844
  
   
Total RGUs
10,695,531
9,663,833
  
 
 
Second-quarter operating segment income increased by 8.2% to Ps.3,724.4 million compared with Ps.3,442.3 million in second-quarter 2017, and the margin was 42.2%.

The following tables set forth the breakdown of revenues and operating segment income, excluding consolidation adjustments, for our cable and enterprise operations for second-quarter 2018 and 2017.

Our cable operations include the video, voice and data services provided by Cablevisión, Cablemás, TVI, Cablecom and Telecable. Our enterprise operations include the services offered by Bestel and the enterprise operations of Cablecom.
   
 
 
2Q’18
Millions of Mexican pesos
Cable Operations (1)
Enterprise Operations (1)
Total Cable
 
Revenue
7,869.0
1,300.2
8,825.7
 
Operating Segment Income
3,405.4
414.3
3,724.4
 
Margin
43.3%
31.9%
42.2%
 
(1) These results do not include consolidation adjustments of Ps.343.5 million in revenues nor Ps.95.3 million in Operating Segment Income, which are considered in the consolidated results of the Cable segment.
         
 
2Q’17
Millions of Mexican pesos
Cable Operations (2)
Enterprise Operations (2)
Total Cable
 
Revenue
7,069.3
1,321.9
8,036.7
 
Operating Segment Income
3,060.6
494.9
3,442.3
 
Margin
43.3%
37.4%
42.8%
 
(2) These results do not include consolidation adjustments of Ps.354.5 million in revenues nor Ps.113.2 million in Operating Segment Income, which are considered in the consolidated results of the Cable segment.
 
Other Businesses
Second-quarter sales increased by 15.1% to Ps.2,312.6 million compared with Ps.2,009.6 million in second-quarter 2017. Businesses that posted higher sales include feature-film distribution, radio and soccer. This effect was partially compensated by lower revenues in our publishing business.
 
Second-quarter operating segment income increased by 38.0% to Ps.193.2 million compared with Ps.140.0 million in second-quarter 2017, reflecting an increase in the operating segment income of our feature-film distribution and our radio businesses. This was partially offset by a decline in operating segment income of our gaming businesses.
Corporate Expense

Corporate expense decreased by Ps.33.6 million, or 6.1%, to Ps.520.3 million in second-quarter 2018, from Ps.553.9 million in second-quarter 2017. The decrease reflected primarily a lower share-based compensation expense.
Share-based compensation expense in second-quarter 2018 and 2017 amounted to Ps.317.2 million and Ps.375.8 million, respectively, and was accounted for as corporate expense. Share-based compensation expense is measured at fair value at the time the equity benefits are conditionally sold to officers and employees, and is recognized over the vesting period.
 
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Other Income or Expense, Net
Other income, net, was Ps.3,237.9 million in second-quarter 2018, compared with other expense, net, of Ps.385.6 million in second-quarter 2017. Other income or expense, net, reflected a Ps.3,547.4 million pre-tax gain on disposition of our 19% stake in Imagina, a Spanish media group, which sale was closed in June 2018.

Other favorable variances included a decrease in non-recurrent severance expense in connection with dismissals of personnel, as well as a decrease in other expense related to legal and financial advisory professional services, which were partially offset by a loss on disposition of property and equipment.
 
Finance Expense, Net

The following table sets forth the finance (expense) income, net, stated in millions of Mexican pesos for the quarters ended June 30, 2018 and 2017.
 
 
2Q’18
2Q’17
(Increase) Decrease
Interest expense
(2,352.7)
(2,233.3)
(119.4)
Interest income
438.8
377.2
61.6
Foreign exchange (loss) gain, net
(487.7)
738.9
(1,226.6)
Other finance income (expense), net
626.4
(24.8)
651.2
Finance expense, net
(1,775.2)
(1,142.0)
(633.2)
 
The finance expense, net, increased by Ps.633.2 million, or 55.4%, to Ps.1,775.2 million in second-quarter 2018 from Ps.1,142.0 million in second-quarter 2017. This increase reflected primarily (i) a Ps.1,226.6 million unfavorable change in foreign exchange gain or loss resulting primarily from the effect on our average net U.S. dollar liability position of an 8.4% depreciation of the Mexican peso against the U.S. dollar in second-quarter 2018 compared with a 3.3% appreciation in second-quarter 2017, which was partially offset by a lower net U.S. dollar liability position in second quarter 2018; and (ii) a Ps.119.4 million increase in interest expense, due primarily to the depreciation of the Mexican peso against the U.S. dollar in second-quarter 2018. These unfavorable variances were partially offset by (i) a Ps.651.2 million favorable change in other finance income or expense, net, resulting primarily from a gain in fair value of our derivative contracts in second-quarter 2018; and (ii) a Ps.61.6 million increase in interest income explained primarily by an increase in interest rates applicable to our cash equivalents in second quarter 2018.

Share of Income of Associates and Joint Ventures, net

Share of income of associates and joint ventures, net, increased by Ps.390.2 million to Ps.477.2 million in second-quarter 2018 from Ps.87.0 million in second-quarter 2017. This increase reflected mainly a higher share of income of Univision Holdings, Inc., the controlling company of Univision, and Imagina, which investment we sold in June 2018.

Income Taxes

Income taxes increased by Ps.1,594.9 million to Ps.2,563.5 million in second-quarter 2018 compared with Ps.968.6 million in second-quarter 2017. This increase reflected primarily a higher income tax base, which included the gain on the disposition of Imagina in June 2018.

Net Income Attributable to Non-controlling Interests

Net income attributable to non-controlling interests stayed relatively flat, increasing by Ps.1.0 million, or 0.2%, to Ps.463.4 million in second-quarter 2018, compared with Ps.462.4 million in second-quarter 2017. This increase reflected primarily a higher portion of net income attributable to non-controlling interests in our Sky segment, which was offset by a lower portion of net income attributable to non-controlling interests in our Cable segment.

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Financial position, liquidity and capital resources
 
Capital Expenditures

During the second-quarter of 2018, we invested approximately U.S.$227.3 million in property, plant and equipment as capital expenditures, including approximately U.S.$145.5 million for our Cable segment, U.S.$56.0 million for our Sky segment, and U.S.$25.8 million for our Content and Other Businesses segments.

Debt, Finance Lease Obligations and Other Notes Payable

The following table sets forth our total consolidated debt, finance lease obligations and other notes payable as of June 30, 2018 and December 31, 2017. Amounts are stated in millions of Mexican pesos. 
 
 
June 30, 2018
Dec 31, 2017
Increase (decrease)
Current portion of long-term debt
 
471.0
307.0
164.0
Long-term debt, net of current portion
 
122,087.4
121,993.1
94.3
    Total debt 1
122,558.4
122,300.1
258.3
Current portion of long-term finance lease obligations
 
627.3
580.9
46.4
Long-term finance lease obligations, net of current portion
 
4,953.2
5,041.9
(88.7)
    Total finance lease obligations
 
5,580.5
5,622.8
(42.3)
Current portion of other notes payable
 
1,270.6
1,178.4
92.2
Long-term other notes payable, net of current portion
 
1,270.6
2,505.6
(1,235.0)
    Total other notes payable 2
2,541.2
3,684.0
(1,142.8)
1 As of June 30, 2018 and December 31, 2017, total debt is presented net of finance costs in the amount of Ps.1,201.7 million and Ps.1,250.7 million, respectively, and does not include related accrued interest payable in the amount to Ps.1,865.5 million and Ps.1,796.8 million, respectively.
2 Notes payable issued in 2016 in connection with the acquisition of a non-controlling interest in Televisión Internacional, S.A. de C.V., one of our Cable segment subsidiaries.

As of June 30, 2018, our consolidated net debt position (total debt, finance lease obligations and other notes payable, less cash and cash equivalents, temporary investments, and non-current investments in financial instruments) was Ps.72,176.9 million. As of June 30, 2018, the non-current investments in financial instruments amounted to an aggregate of Ps.13,907.2 million.

Dividend

In April 2018, our stockholders approved the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series “A”, “B”, “D” and “L” Shares, not in the form of a CPO, which was paid in cash in May 2018 in the aggregate amount of Ps.1,068.9 million.

Shares Outstanding

As of June 30, 2018, and December 31, 2017, our shares outstanding amounted to 340,827.0 million and 342,337.1 million shares, respectively, and our CPO equivalents outstanding amounted to 2,913.1 million and 2,926.0 million CPO equivalents, respectively. Not all of our shares are in the form of CPOs. The number of CPO equivalents is calculated by dividing the number of shares outstanding by 117.

As of June 30, 2018, and December 31, 2017, the GDS (Global Depositary Shares) equivalents outstanding amounted to 582.6 million and 585.2 million GDS equivalents, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.

On April 27, 2018, our stockholders approved to cancel in May 2018, an aggregate of 5,122.6 million shares of our capital stock in the form of 43.8 million CPOs, which were repurchased and/or acquired by us during 2017 and 2018.
 

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Internal control
 

Disclosure of critical performance measures and indicators that management uses to evaluate entity’s performance against stated objectives
 
 
2Q’18
Margin %
2Q’17
Margin %
Change %
Net sales
26,701.8
100.0
22,976.8
100.0
16.2
Net income
4,760.8
17.8
1,881.6
8.2
153.0
Net income attributable to stockholders of the Company
4,297.4
16.1
1,419.2
6.2
202.8
           
Segment net sales
27,768.5
100.0
23,764.1
100.0
16.9
Operating segment income (1)
10,752.8
38.7
9,423.3
39.7
14.1
 (1) The operating segment income margin is calculated as a percentage of segment net sales.

Net Sales
2Q’18
%
2Q’17
 %
Change %
Subtotal Content
9,247.9
33.3
8,075.9
34.0
14.5
World Cup rights
1,723.5
6.2
n/a
n/a
n/a
Content
10,971.4
39.5
8,075.9
34.0
35.9
Sky
5,658.8
20.4
5,641.9
23.7
0.3
Cable
8,825.7
31.8
8,036.7
33.8
9.8
Other Businesses
2,312.6
8.3
2,009.6
8.5
15.1
Segment Net Sales
27,768.5
100.0
23,764.1
100.0
16.9
Intersegment Operations(1)
(1,066.7)
  
(787.3)
  
(35.5)
Net Sales
26,701.8
 
22,976.8
  
16.2
 
Operating Segment Income (2)
2Q’18
Margin %
2Q’17
Margin %
Change %
Subtotal Content
3,477.1
37.6
3,185.1
39.4
9.2
World Cup rights
817.2
47.4
n/a
n/a
n/a
Content
4,294.3
39.1
3,185.1
39.4
34.8
Sky
2,540.9
44.9
2,655.9
47.1
(4.3)
Cable
3,724.4
42.2
3,442.3
42.8
8.2
Other Businesses
193.2
8.4
140.0
7.0
38.0
Operating Segment Income
10,752.8
38.7
9,423.3
39.7
14.1
Corporate Expenses
(520.3)
(1.9)
(553.9)
(2.3)
6.1
Depreciation and Amortization
(4,848.1)
18.2
(4,578.6)
19.9
(5.9)
Other Income (expense), net
3,237.9
12.1
(385.6)
(1.7)
n/a
Operating Income
8,622.3
32.3
3,905.2
17.0 
120.8
(1) For segment reporting purposes, intersegment operations are included in each of the segment operations.
(2) Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.
  
External Auditors
On July 5, 2018, the Audit Committee of the Company determined to recommend to the Board of Directors of the Company that KPMG Cárdenas Dosal, S.C. be engaged as the independent public accountant of the Company, starting with the review of the Company’s financial results for the year ended December 31, 2018.  The Committee made this determination taking into account best corporate practices.
 
Disclaimer
This management commentary contains forward-looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward-looking statements in these management commentary 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 these management commentary 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.
9 of 79

[110000] General information about financial statements
 
Ticker:
 
TLEVISA
Period covered by financial statements:
 
2018-01-01 to 2018-06-30
Date of end of reporting period:
 
2018-06-30
Name of reporting entity or other means of identification:
 
TLEVISA
Description of presentation currency:
 
MXN
Level of rounding used in financial statements:
 
THOUSANDS OF MEXICAN PESOS
Consolidated:
 
Yes
Number of quarter:
 
2
Type of issuer:
 
ICS
Explanation of change in name of reporting entity or other means of identification from end of preceding reporting period:
 
  
Description of nature of financial statements:
 
  

Disclosure of general information about financial statements
 
Corporate Information
Grupo Televisa, S.A.B. (the “Company”) is a limited liability public stock corporation (“Sociedad Anónima Bursátil” or “S.A.B.”), incorporated under the laws of Mexico. Pursuant to the terms of the Company’s bylaws (“Estatutos Sociales”), its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of “Certificados de Participación Ordinarios” or “CPOs” on the Mexican Stock Exchange (“Bolsa Mexicana de Valores”) under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares or GDSs, on the New York Stock Exchange, or NYSE, under the ticker symbol TV. The Company’s principal executive offices are located at Avenida Vasco de Quiroga 2000, Colonia Santa Fe, 01210 Ciudad de México, México.
Basis of Preparation and Accounting Policies
The condensed consolidated financial statements of the Group, as of June 30, 2018 and December 31, 2017, and for the six months ended June 30, 2018 and 2017, are unaudited, and have been prepared in accordance with the guidelines provided by the International Accounting Standard 34, Interim Financial Reporting. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included herein.
The unaudited condensed consolidated financial statements should be read in conjunction with the Group’s audited consolidated financial statements and notes thereto for the years ended December 31, 2017, 2016 and 2015, which have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board, and include, among other disclosures, the Group’s most significant accounting policies, which were applied on a consistent basis as of June 30, 2018, except for the guidelines provided by the IFRS 15 and IFRS 9 that became effective beginning on January 1, 2018. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2018 did not have a significant impact in these interim unaudited condensed consolidated financial statements.
 
10 of 79

Follow-up of analysis
The financial institutions that perform financial analysis on the securities of Grupo Televisa, S.A.B., are as follows:

Institution:

Evercore
Bradesco
JP Morgan
UBS
HSBC
Merrill Lynch
New Street
Citi
Itau Securities
Credit Suisse
Goldman Sachs
Morgan Stanley
Barclays


11 of 79

[210000] Statement of financial position, current/non-current

Concept
Close Current Quarter
2018-06-30
Close Previous Exercise
2017-12-31
Statement of financial position
    
Assets
    
Current assets
    
Cash and cash equivalents
44,592,993,000
38,734,949,000
Trade and other current receivables
27,421,035,000
30,357,412,000
Current tax assets, current
1,661,990,000
3,039,810,000
Other current financial assets
728,184,000
1,586,219,000
Current inventories
1,132,085,000
1,492,947,000
Current biological assets
0
0
Other current non-financial assets
[1] 8,103,179,000
5,890,866,000
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
83,639,466,000
81,102,203,000
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
0
0
Total current assets
83,639,466,000
81,102,203,000
Non-current assets
    
Trade and other non-current receivables
0
0
Current tax assets, non-current
0
0
Non-current inventories
0
0
Non-current biological assets
0
0
Other non-current financial assets
50,199,056,000
50,688,185,000
Investments accounted for using equity method
0
0
Investments in subsidiaries, joint ventures and associates
10,908,584,000
14,110,752,000
Property, plant and equipment
83,738,439,000
85,719,810,000
Investment property
0
0
Goodwill
14,112,626,000
14,112,626,000
Intangible assets other than goodwill
21,261,873,000
21,773,808,000
Deferred tax assets
20,796,215,000
21,355,044,000
Other non-current non-financial assets
[2] 11,350,185,000
8,357,673,000
Total non-current assets
212,366,978,000
216,117,898,000
Total assets
296,006,444,000
297,220,101,000
Equity and liabilities
    
Liabilities
    
Current liabilities
    
Trade and other current payables
40,257,720,000
44,353,813,000
Current tax liabilities, current
2,885,994,000
2,524,349,000
Other current financial liabilities
4,234,385,000
3,863,189,000
Other current non-financial liabilities
0
0
Current provisions
    
Current provisions for employee benefits
0
0
Other current provisions
1,165,000
23,466,000
Total current provisions
1,165,000
23,466,000
Total current liabilities other than liabilities included in disposal groups classified as held for sale
47,379,264,000
50,764,817,000
Liabilities included in disposal groups classified as held for sale
0
0
Total current liabilities
47,379,264,000
50,764,817,000
Non-current liabilities
    
Trade and other non-current payables
4,150,197,000
2,719,236,000
Current tax liabilities, non-current
3,027,383,000
4,730,620,000
Other non-current financial liabilities
128,311,233,000
129,540,643,000
Other non-current non-financial liabilities
0
0
 
 
12 of 79
 

Concept
Close Current Quarter
2018-06-30
Close Previous Exercise
2017-12-31
Non-current provisions
    
Non-current provisions for employee benefits
783,710,000
716,095,000
Other non-current provisions
54,442,000
54,263,000
Total non-current provisions
838,152,000
770,358,000
Deferred tax liabilities
8,835,947,000
9,037,513,000
Total non-current liabilities
145,162,912,000
146,798,370,000
Total liabilities
192,542,176,000
197,563,187,000
Equity
    
Issued capital
4,907,765,000
4,978,126,000
Share premium
15,889,819,000
15,889,819,000
Treasury shares
12,961,808,000
14,788,984,000
Retained earnings
77,194,859,000
74,432,547,000
Other reserves
4,065,926,000
5,150,256,000
Total equity attributable to owners of parent
89,096,561,000
85,661,764,000
Non-controlling interests
14,367,707,000
13,995,150,000
Total equity
103,464,268,000
99,656,914,000
Total equity and liabilities
296,006,444,000
297,220,101,000
 
 
13 of 79
 
[310000] Statement of comprehensive income, profit or loss, by function of expense
 
Concept
Accumulated
Current Year
2018-01-01 - 2018-06-30
Accumulated
Previous Year
2017-01-01 - 2017-06-30
Quarter Current
Year
2018-04-01 - 2018-06-30
Quarter Previous
Year
2017-04-01 - 2017-06-30
Profit or loss
        
Profit (loss)
        
Revenue
49,513,848,000
44,931,192,000
26,701,845,000
22,976,818,000
Cost of sales
28,140,361,000
25,476,303,000
15,079,753,000
12,820,791,000
Gross profit
21,373,487,000
19,454,889,000
11,622,092,000
10,156,027,000
Distribution costs
5,427,730,000
5,097,631,000
2,846,360,000
2,490,263,000
Administrative expenses
6,783,088,000
6,625,607,000
3,391,337,000
3,375,039,000
Other income
3,083,837,000
0
3,237,923,000
0
Other expense
0
796,349,000
0
385,606,000
Profit (loss) from operating activities
12,246,506,000
6,935,302,000
8,622,318,000
3,905,119,000
Finance income
1,248,959,000
2,620,944,000
1,065,149,000
1,116,156,000
Finance costs
5,224,848,000
4,544,521,000
2,840,369,000
2,258,077,000
Share of profit (loss) of associates and joint ventures accounted for using equity method
584,284,000
350,666,000
477,188,000
86,956,000
Profit (loss) before tax
8,854,901,000
5,362,391,000
7,324,286,000
2,850,154,000
Tax income (expense)
3,099,215,000
1,766,596,000
2,563,500,000
968,583,000
Profit (loss) from continuing operations
5,755,686,000
3,595,795,000
4,760,786,000
1,881,571,000
Profit (loss) from discontinued operations
0
0
0
0
Profit (loss)
5,755,686,000
3,595,795,000
4,760,786,000
1,881,571,000
Profit (loss), attributable to
        
Profit (loss), attributable to owners of parent
4,974,930,000
2,615,151,000
4,297,372,000
1,419,160,000
Profit (loss), attributable to non-controlling interests
780,756,000
980,644,000
463,414,000
462,411,000
Earnings per share
        
Earnings per share
        
Earnings per share
        
Basic earnings per share
        
Basic earnings (loss) per share from continuing operations
1.71
0.89
1.48
0.48
Basic earnings (loss) per share from discontinued operations
0
0
0
0
Total basic earnings (loss) per share
[3] 1.71
0.89
1.48
0.48
Diluted earnings per share
        
Diluted earnings (loss) per share from continuing operations
1.62
0.85
1.4
0.46
Diluted earnings (loss) per share from discontinued operations
0
0
0
0
Total diluted earnings (loss) per share
[4] 1.62
0.85
1.4
0.46
 
 
14 of 79

[410000] Statement of comprehensive income, OCI components presented net of tax
 
Concept
Accumulated
Current Year
2018-01-01 - 2018-06-30
Accumulated
Previous Year
2017-01-01 - 2017-06-30
Quarter
Current Year
2018-04-01 - 2018-06-30
Quarter
Previous Year
2017-04-01 - 2017-06-30
Statement of comprehensive income
        
Profit (loss)
5,755,686,000
3,595,795,000
4,760,786,000
1,881,571,000
Other comprehensive income
        
Components of other comprehensive income that will not be reclassified to profit or loss, net of tax
        
Other comprehensive income, net of tax, gains (losses) from investments in equity instruments
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on revaluation
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on remeasurements of defined benefit plans
0
0
0
0
Other comprehensive income, net of tax, change in fair value of financial liability attributable to change in credit risk of liability
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on hedging instruments that hedge investments in equity instruments
0
0
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss, net of tax
0
0
0
0
Total other comprehensive income that will not be reclassified to profit or loss, net of tax
0
0
0
0
Components of other comprehensive income that will be reclassified to profit or loss, net of tax
        
Exchange differences on translation
        
Gains (losses) on exchange differences on translation, net of tax
(655,812,000)
(725,833,000)
26,087,000
(128,284,000)
Reclassification adjustments on exchange differences on translation, net of tax
0
0
0
0
Other comprehensive income, net of tax, exchange differences on translation
(655,812,000)
(725,833,000)
26,087,000
(128,284,000)
Available-for-sale financial assets
        
Gains (losses) on remeasuring available-for-sale financial assets, net of tax
(463,313,000)
850,157,000
(183,174,000)
761,683,000
Reclassification adjustments on available-for-sale financial assets, net of tax
0
0
0
0
Other comprehensive income, net of tax, available-for-sale financial assets
(463,313,000)
850,157,000
(183,174,000)
761,683,000
Cash flow hedges
        
Gains (losses) on cash flow hedges, net of tax
51,030,000
(576,703,000)
463,498,000
(369,035,000)
Reclassification adjustments on cash flow hedges, net of tax
0
0
0
0
Amounts removed from equity and included in carrying amount of non-financial asset (liability) whose acquisition or incurrence was hedged highly probable forecast transaction, net of tax
0
0
0
0
Other comprehensive income, net of tax, cash flow hedges
51,030,000
(576,703,000)
463,498,000
(369,035,000)
Hedges of net investment in foreign operations
        
Gains (losses) on hedges of net investments in foreign operations, net of tax
0
0
0
0
Reclassification adjustments on hedges of net investments in foreign operations, net of tax
0
0
0
0
Other comprehensive income, net of tax, hedges of net investments in foreign operations
0
0
0
0
Change in value of time value of options
        
Gains (losses) on change in value of time value of options, net of tax
0
0
0
0
Reclassification adjustments on change in value of time value of options, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of time value of options
0
0
0
0
Change in value of forward elements of forward contracts
        
Gains (losses) on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Reclassification adjustments on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of forward elements of forward contracts
0
0
0
0
Change in value of foreign currency basis spreads
        
Gains (losses) on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Reclassification adjustments on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of foreign currency basis spreads
0
0
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss, net of tax
43,853,000
(4,829,000)
57,209,000
(47,837,000)
Total other comprehensive income that will be reclassified to profit or loss, net of tax
(1,024,242,000)
(457,208,000)
363,620,000
216,527,000
Total other comprehensive income
(1,024,242,000)
(457,208,000)
363,620,000
216,527,000
Total comprehensive income
4,731,444,000
3,138,587,000
5,124,406,000
2,098,098,000
Comprehensive income attributable to
        
Comprehensive income, attributable to owners of parent
3,890,600,000
2,267,269,000
4,551,185,000
1,691,478,000
Comprehensive income, attributable to non-controlling interests
840,844,000
871,318,000
573,221,000
406,620,000
 
 
16 of 79
 
[520000] Statement of cash flows, indirect method
 
Concept
Accumulated Current Year
2018-01-01 - 2018-06-30
Accumulated Previous Year
2017-01-01 - 2017-06-30
Statement of cash flows
    
Cash flows from (used in) operating activities
    
Profit (loss)
5,755,686,000
3,595,795,000
Adjustments to reconcile profit (loss)
    
Discontinued operations
0
0
Adjustments for income tax expense
3,099,215,000
1,766,596,000
Adjustments for finance costs
0
0
Adjustments for depreciation and amortisation expense
9,648,925,000
9,122,522,000
Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
17,282,000
0
Adjustments for provisions
780,736,000
1,287,518,000
Adjustments for unrealised foreign exchange losses (gains)
(133,880,000)
(5,358,422,000)
Adjustments for share-based payments
693,054,000
738,275,000
Adjustments for fair value losses (gains)
582,877,000
48,271,000
Adjustments for undistributed profits of associates
0
0
Adjustments for losses (gains) on disposal of non-current assets
493,718,000
549,292,000
Participation in associates and joint ventures
(584,284,000)
(350,666,000)
Adjustments for decrease (increase) in inventories
(1,422,317,000)
(1,156,136,000)
Adjustments for decrease (increase) in trade accounts receivable
5,366,415,000
8,095,822,000
Adjustments for decrease (increase) in other operating receivables
(2,278,475,000)
(835,882,000)
Adjustments for increase (decrease) in trade accounts payable
569,329,000
(936,555,000)
Adjustments for increase (decrease) in other operating payables
(3,507,179,000)
(8,391,178,000)
Other adjustments for non-cash items
0
0
Other adjustments for which cash effects are investing or financing cash flow
(3,632,387,000)
(26,000)
Straight-line rent adjustment
0
0
Amortization of lease fees
0
0
Setting property values
0
0
Other adjustments to reconcile profit (loss)
189,153,000
241,997,000
Total adjustments to reconcile profit (loss)
9,882,182,000
4,821,428,000
Net cash flows from (used in) operations
15,637,868,000
8,417,223,000
Dividends paid
0
0
Dividends received
0
0
Interest paid
(4,641,971,000)
(4,496,250,000)
Interest received
(66,911,000)
(47,261,000)
Income taxes refund (paid)
3,456,822,000
3,850,969,000
Other inflows (outflows) of cash
0
0
Net cash flows from (used in) operating activities
16,756,106,000
9,015,243,000
Cash flows from (used in) investing activities
    
Cash flows from losing control of subsidiaries or other businesses
0
0
Cash flows used in obtaining control of subsidiaries or other businesses
0
0
Other cash receipts from sales of equity or debt instruments of other entities
5,890,520,000
26,000
Other cash payments to acquire equity or debt instruments of other entities
0
0
Other cash receipts from sales of interests in joint ventures
85,000,000
0
Other cash payments to acquire interests in joint ventures
0
140,000,000
Proceeds from sales of property, plant and equipment
642,638,000
264,979,000
Purchase of property, plant and equipment
7,253,498,000
7,626,308,000
Proceeds from sales of intangible assets
0
0
Purchase of intangible assets
1,080,850,000
581,859,000
Proceeds from sales of other long-term assets
0
0
Purchase of other long-term assets
0
0
 
17 of 79
 
 
 
Concept
Accumulated Current Year
2018-01-01 - 2018-06-30
Accumulated Previous Year
2017-01-01 - 2017-06-30
     
Proceeds from government grants
0
0
Cash advances and loans made to other parties
0
0
Cash receipts from repayment of advances and loans made to other parties
0
0
Cash payments for future contracts, forward contracts, option contracts and swap contracts
0
0
Cash receipts from future contracts, forward contracts, option contracts and swap contracts
0
0
Dividends received
0
0
Interest paid
0
0
Interest received
0
0
Income taxes refund (paid)
0
0
Other inflows (outflows) of cash
408,812,000
262,283,000
Net cash flows from (used in) investing activities
(1,307,378,000)
(7,820,879,000)
Cash flows from (used in) financing activities
    
Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control
0
0
Payments from changes in ownership interests in subsidiaries that do not result in loss of control
1,184,020,000
1,292,438,000
Proceeds from issuing shares
0
0
Proceeds from issuing other equity instruments
0
0
Payments to acquire or redeem entity’s shares
1,541,181,000
0
Payments of other equity instruments
0
0
Proceeds from borrowings
0
0
Repayments of borrowings
153,744,000
72,914,000
Payments of finance lease liabilities
216,318,000
236,058,000
Proceeds from government grants
0
0
Dividends paid
1,068,868,000
1,084,192,000
Interest paid
4,457,956,000
4,547,532,000
Income taxes refund (paid)
0
0
Other inflows (outflows) of cash
(965,911,000)
(65,869,000)
Net cash flows from (used in) financing activities
(9,587,998,000)
(7,299,003,000)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
5,860,730,000
(6,104,639,000)
Effect of exchange rate changes on cash and cash equivalents
    
Effect of exchange rate changes on cash and cash equivalents
(2,686,000)
(218,723,000)
Net increase (decrease) in cash and cash equivalents
5,858,044,000
(6,323,362,000)
Cash and cash equivalents at beginning of period
38,734,949,000
47,546,083,000
Cash and cash equivalents at end of period
44,592,993,000
41,222,721,000
 
 
18 of 79
 
[610000] Statement of changes in equity - Accumulated Current
 
 
Components of equity
Sheet 1 of 3
Issued capital
 
Share premium
Treasury shares
 
Retained earnings
 
Revaluation surplus
 
Reserve of exchange differences on translation
 
Reserve of cash flow hedges
 
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
 
Reserve of change in value of time value of options
 
Statement of changes in equity
                  
Equity at beginning of period
4,978,126,000
15,889,819,000
14,788,984,000
74,432,547,000
0
2,298,822,000
561,412,000
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
4,974,930,000
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(715,900,000)
51,030,000
0
0
Total comprehensive income
0
0
0
4,974,930,000
0
(715,900,000)
51,030,000
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,068,868,000
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
1,471,967,000
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
(70,361,000)
0
(2,764,562,000)
(2,694,201,000)
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
937,386,000
78,484,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
(70,361,000)
0
(1,827,176,000)
2,762,312,000
0
(715,900,000)
51,030,000
0
0
Equity at end of period
4,907,765,000
15,889,819,000
12,961,808,000
77,194,859,000
0
1,582,922,000
612,442,000
0
0
 
 
 
19 of 79

 
 
 
Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
 
Reserve of change in value of foreign currency basis spreads
 
Reserve of gains and losses on remeasuring available-for-sale financial assets
 
Reserve of share-based payments
 
Reserve of remeasurements of defined benefit plans
 
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
 
Reserve of gains and losses from investments in equity instruments
 
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
 
Reserve for catastrophe
 
Statement of changes in equity
                  
Equity at beginning of period
0
0
2,747,704,000
0
(665,739,000)
0
0
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
(463,313,000)
0
0
0
0
0
0
Total comprehensive income
0
0
(463,313,000)
0
0
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(463,313,000)
0
0
0
0
0
0
Equity at end of period
0
0
2,284,391,000
0
(665,739,000)
0
0
0
0
 
20 of 79

 
 
 
Components of equity
Sheet 3 of 3
Reserve for equalisation
 
Reserve of discretionary participation features
 
Other comprehensive income
 
Other reserves
 
Equity attributable to owners of parent
 
Non-controlling interests
 
Equity
Statement of changes in equity
              
Equity at beginning of period
0
0
208,057,000
5,150,256,000
85,661,764,000
13,995,150,000
99,656,914,000
Changes in equity
              
Comprehensive income
              
Profit (loss)
0
0
0
0
4,974,930,000
780,756,000
5,755,686,000
Other comprehensive income
0
0
43,853,000
(1,084,330,000)
(1,084,330,000)
60,088,000
(1,024,242,000)
Total comprehensive income
0
0
43,853,000
(1,084,330,000)
3,890,600,000
840,844,000
4,731,444,000
Issue of equity
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
1,068,868,000
1,245,913,000
2,314,781,000
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
1,471,967,000
777,626,000
2,249,593,000
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
(858,902,000)
0
(858,902,000)
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
43,853,000
(1,084,330,000)
3,434,797,000
372,557,000
3,807,354,000
Equity at end of period
0
0
251,910,000
4,065,926,000
89,096,561,000
14,367,707,000
103,464,268,000
 
 
21 of 79

[610000] Statement of changes in equity - Accumulated Previous
 
 
Components of equity
Sheet 1 of 3
Issued capital
Share premium
Treasury shares
Retained earnings
Revaluation surplus
Reserve of exchange differences on translation
Reserve of cash flow hedges
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
Reserve of change in value of time value of options
 
Statement of changes in equity
                  
Equity at beginning of period
4,978,126,000
15,889,819,000
11,433,482,000
70,395,669,000
0
1,989,164,000
399,181,000
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
2,615,151,000
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(616,507,000)
(576,703,000)
0
0
Total comprehensive income
0
0
0
2,615,151,000
0
(616,507,000)
(576,703,000)
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,084,192,000
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
(231,437,000)
496,063,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(231,437,000)
2,027,022,000
0
(616,507,000)
(576,703,000)
0
0
Equity at end of period
4,978,126,000
15,889,819,000
11,202,045,000
72,422,691,000
0
1,372,657,000
(177,522,000)
0
0
 
22 of 79

 
 
Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
Reserve of change in value of foreign currency basis spreads
Reserve of gains and losses on remeasuring available-for-sale financial assets
 
Reserve of share-based payments
 
Reserve of remeasurements of defined benefit plans
 
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
 
Reserve of gains and losses from investments in equity instruments
 
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
Reserve for catastrophe
 
Statement of changes in equity
                  
Equity at beginning of period
0
0
1,686,836,000
0
(381,794,000)
0
0
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
850,157,000
0
0
0
0
0
0
Total comprehensive income
0
0
850,157,000
0
0
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
850,157,000
0
0
0
0
0
0
Equity at end of period
0
0
2,536,993,000
0
(381,794,000)
0
0
0
0
 
 
23 of 79

 
 
 
Components of equity
Sheet 3 of 3
Reserve for equalisation
 
Reserve of discretionary participation features
 
Other comprehensive income
 
Other reserves
 
Equity attributable to owners of parent
 
Non-controlling interests
 
Equity
Statement of changes in equity
              
Equity at beginning of period
0
0
268,397,000
3,961,784,000
83,791,916,000
12,492,484,000
96,284,400,000
Changes in equity
              
Comprehensive income
              
Profit (loss)
0
0
0
0
2,615,151,000
980,644,000
3,595,795,000
Other comprehensive income
0
0
(4,829,000)
(347,882,000)
(347,882,000)
(109,326,000)
(457,208,000)
Total comprehensive income
0
0
(4,829,000)
(347,882,000)
2,267,269,000
871,318,000
3,138,587,000
Issue of equity
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
1,084,192,000
39,283,000
1,123,475,000
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
(448,000)
(448,000)
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
(11,050,000)
(11,050,000)
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
727,500,000
0
727,500,000
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(4,829,000)
(347,882,000)
1,910,577,000
820,537,000
2,731,114,000
Equity at end of period
0
0
263,568,000
3,613,902,000
85,702,493,000
13,313,021,000
99,015,514,000
 
 
 
24 of 79

[700000] Informative data about the Statement of financial position

Concept
Close Current Quarter
2018-06-30
Close Previous Exercise
2017-12-31
Informative data of the Statement of Financial Position
    
Capital stock (nominal)
2,459,154,000
2,494,410,000
Restatement of capital stock
2,448,611,000
2,483,716,000
Plan assets for pensions and seniority premiums
1,605,519,000
1,652,420,000
Number of executives
71
73
Number of employees
39,433
39,915
Number of workers
0
0
Outstanding shares
340,826,981,898
342,337,098,324
Repurchased shares
16,480,289,904
20,092,788,807
Restricted cash
0
0
Guaranteed debt of associated companies
0
0
 
25 of 79

[700002] Informative data about the Income statement
 
Concept
Accumulated Current Year
2018-01-01 - 2018-06-30
Accumulated Previous Year
2017-01-01 - 2017-06-30
Quarter Current Year
2018-04-01 - 2018-06-30
Quarter Previous Year
2017-04-01 - 2017-06-30
Informative data of the Income Statement
        
Operating depreciation and amortization
9,648,925,000
9,122,522,000
4,848,124,000
4,578,689,000
 
 
26 of 79

[700003] Informative data - Income statement for 12 months
 
Concept
Current Year
2017-07-01 - 2018-06-30
Previous Year
2016-07-01 - 2017-06-30
Informative data - Income Statement for 12 months
    
Revenue
98,169,880,000
96,361,872,000
Profit (loss) from operating activities
19,554,406,000
16,070,388,000
Profit (loss)
8,186,304,000
6,369,850,000
Profit (loss), attributable to owners of parent
6,333,166,000
4,508,036,000
Operating depreciation and amortization
19,031,222,000
17,838,977,000
 
27 of 79

[800001] Breakdown of credits

Institution
Foreign institution (yes/no)
Contract signing date
Expiration date
Interest rate
Denomination
Domestic currency
Foreign currency
Time interval
Time interval
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Banks
  
Foreign trade
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Banks - secured
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Commercial banks
  
BANORTE1
NO
2015-05-15
2022-04-30
TIIE+1.0
121,076,000
121,076,000
242,152,000
242,152,000
181,614,000
549,016,000
            
HSBC 2
NO
2013-05-29
2019-05-30
TIIE+1.25
32,455,000
196,392,000
                    
HSBC 3
NO
2014-07-04
2019-07-04
TIIE+1.25
    
299,653,000
                  
BANCO SANTANDER 4
NO
2015-03-12
2020-05-07
TIIE+1.25
    
249,733,000
                  
BANCO SANTANDER 5
NO
2015-01-08
2019-09-10
TIIE+1.25
    
249,780,000
                  
HSBC 6
NO
2016-03-08
2023-03-08
7.13
        
1,250,000,000
1,250,000,000
            
SCOTIABANK INVERLAT 7
NO
2016-03-08
2023-03-08
7
      
375,000,000
1,125,000,000
1,500,000,000
            
BANCO SANTANDER 8
NO
2017-11-23
2022-10-21
TIIE+1.25
          
1,492,050,000
            
HSBC9
NO
2017-11-23
2022-11-22
TIIE+1.30
          
1,989,424,000
            
SCOTIABANK INVERLAT10
NO
2017-12-07
2023-02-03
TIIE+1.30
          
2,486,451,000
            
TOTAL
        
153,531,000
317,468,000
1,041,318,000
617,152,000
2,556,614,000
9,266,941,000
0
0
0
0
0
0
Other banks
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Total banks
  
TOTAL
        
153,531,000
317,468,000
1,041,318,000
617,152,000
2,556,614,000
9,266,941,000
0
0
0
0
0
0
Stock market
  
Listed on stock exchange - unsecured
  
SENIOR NOTES 1
YES
2007-05-09
2037-05-11
8.93
          
4,486,284,000
            
CERTIFICADOS BURSATILES 2
NO
2010-10-14
2020-10-01
7.38
      
9,983,543,000
                
SENIOR NOTES 3
YES
2013-05-14
2043-05-14
7.62
          
6,440,988,000
            
CERTIFICADOS BURSATILES 4
NO
2014-04-07
2021-04-01
TIIE+0.35
        
5,994,138,000
              
CERTIFICADOS BURSATILES 5
NO
2015-05-11
2022-05-02
TIIE+0.35
          
4,993,250,000
            
CERTIFICADOS BURSATILES 6
NO
2017-10-09
2027-10-09
8.79
          
4,477,980,000
            
SENIOR NOTES 7
YES
2005-03-18
2025-03-18
6.97
                      
11,623,331,000
SENIOR NOTES 8
YES
2002-03-11
2032-03-11
8.94
                      
5,916,675,000
SENIOR NOTES 9
YES
2009-11-23
2040-01-15
6.97
                      
11,745,512,000
SENIOR NOTES 10
YES
2014-05-13
2045-05-13
5.26
                      
19,347,950,000
SENIOR NOTES 11
YES
2015-11-24
2026-01-30
4.86
                      
5,904,117,000
SENIOR NOTES 12
YES
2015-11-24
2046-01-31
6.44
                      
17,691,627,000
TOTAL
        
0
0
0
9,983,543,000
5,994,138,000
20,398,502,000
0
0
0
0
0
[5] 72,229,212,000
Listed on stock exchange - secured
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Private placements - unsecured
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Private placements - secured
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Total listed on stock exchanges and private placements
  
TOTAL
        
0
0
0
9,983,543,000
5,994,138,000
20,398,502,000
0
0
0
0
0
72,229,212,000
 
 
 
28 of 79
 
Institution
Foreign institution (yes/no)
Contract signing date
Expiration date