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 November, 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:     3     Year:    2018
 

 
Quarterly Financial Information
 
 
 
 
 
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[105000] Management commentary
 
Management commentary
 
 
Mexico City, October 25, 2018 — Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “Televisa” or the “Company”), today announced results for the third-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 September 30, 2018 and 2017, in millions of Mexican pesos, as well as the percentage that each line represents of net sales and the percentage change when comparing 2018 with 2017:

 
3Q’18
Margin %
3Q’17
Margin %
Change %
Net sales
25,033.2
100.0
22,663.0
100.0
10.5
Net income
1,479.6
5.9
1,520.6
6.7
(2.7)
Net income attributable to stockholders of the Company
978.0
3.9
1,014.9
4.5
(3.6)
           
Segment net sales
26,283.8
100.0
23,594.3
100.0
11.4
Operating segment income (1)
10,308.1
39.2
9,338.1
39.6
10.4
(1) The operating segment income margin is calculated as a percentage of segment net sales.

Net sales increased by 10.5% to Ps.25,033.2 million in the third-quarter 2018 compared with Ps.22,663.0 million in the third-quarter 2017. This increase was mainly attributable to revenue growth in the Content and Cable segments. Operating segment income increased by 10.4%, reaching Ps.10,308.1 million with a margin of 39.2%.

Net income attributable to stockholders of the Company amounted to Ps.978.0 million in third-quarter 2018 compared to Ps.1,014.9 million in third-quarter 2017. The net decrease of Ps.36.9 million, or 3.6%, reflected (i) a Ps.567.7 million increase in finance expense, net; (ii) a Ps.428.6 million increase in depreciation and amortization; and (iii) a Ps.343.4 million decrease in share of income of associates and joint ventures, net. These unfavorable variances were partially offset by (i) a Ps.1,024.2 million increase in operating income before depreciation and amortization; (ii) a Ps.206.5 million decrease in income taxes; and (iii) a Ps.68.0 million decrease in other expense.

Televisa maintains a conservative policy towards its foreign exchange exposure. As a result, Televisa has entered into a number of derivative contracts to cover its 2018 and 2019 interest expense, certain operating expenses in 2018, and certain U.S. denominated capital expenditures planned for 2018 and part of 2019. This resulted in a net loss in fair value of our derivate contracts in third-quarter 2018, and explains the increase in finance income or expense, net, mentioned above.
 
 
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 third-quarter consolidated results for the three months ended September 30, 2018 and 2017, for each of our business segments. Consolidated results for the third-quarter 2018 and 2017 are presented in millions of Mexican pesos.

Net Sales
3Q’18
%
3Q’17
 %
Change %
Subtotal Content
8,700.0
33.1
8,024.9
34.0
8.4
World Cup rights
1,010.1
3.8
n/a
n/a
n/a
Content
9,710.1
36.9
8,024.9
34.0
21.0
Sky
5,407.3
20.6
5,445.2
23.1
(0.7)
Cable
9,219.9
35.1
8,322.5
35.3
10.8
Other Businesses
1,946.5
7.4
1,801.7
7.6
8.0
Segment Net Sales
26,283.8
100.0
23,594.3
100.0
11.4
Intersegment Operations(1)
(1,250.6)
  
(931.3)
  
(34.3)
Net Sales
25,033.2
  
22,663.0
  
10.5


Operating Segment Income(2)
3Q’18
Margin  %
3Q’17
Margin %
Change %
Subtotal Content
3,110.7
35.8
3,102.1
38.7
0.3
World Cup rights
593.3
58.7
n/a
n/a
n/a
Content
3,704.0
38.1
3,102.1
38.7
19.4
Sky
2,569.9
47.5
2,660.4
48.9
(3.4)
Cable
3,907.5
42.4
3,523.5
42.3
10.9
Other Businesses
126.7
6.5
52.1
2.9
143.2
Operating Segment Income
10,308.1
39.2
9,338.1
39.6
10.4
Corporate Expenses
(496.0)
(1.9)
(550.2)
(2.3)
9.9
Depreciation and Amortization
(5,037.8)
(20.1)
(4,609.2)
(20.3)
(9.3)
Other Expense, net
(432.5)
(1.7)
(500.5)
(2.2)
13.6
Operating Income
4,341.8
17.3
3,678.2
16.2
18.0
(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
Third-quarter sales increased by 21.0% to Ps.9,710.1 million compared with Ps.8,024.9 million in the third-quarter 2017. Excluding the non-recurring revenue originated in the sublicensing of certain World Cup rights, sales increased 8.4% to Ps.8,700.0 million.
 
Millions of Mexican pesos
3Q’18
%
3Q’17
%
Change %
Advertising
5,051.2
52.0
4,943.8
61.6
2.2
Network Subscription Revenue
1,182.8
12.2
929.7
11.6
27.2
Licensing and Syndication
2,466.0
25.4
2,151.4
26.8
14.6
Subtotal Content
8,700.0
89.6
8,024.9
100.0
8.4
World Cup rights
1,010.1
10.4
n/a
n/a
n/a
Net Sales
9,710.1
100.0
8,024.9
100.0
21.0


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Advertising
Third-quarter Advertising revenue increased by 2.2% to Ps.5,051.2 million compared with Ps.4,943.8 million in the third-quarter 2017. This is the third consecutive quarter with growth in advertising sales. Year to date, advertising sales growth is 5.0%, which has resulted primarily from the change in the pricing mechanism for our advertising inventory.
 
Network Subscription
Third-quarter Network Subscription revenue increased by 27.2% to Ps.1,182.8 million compared with Ps.929.7 million in the third-quarter 2017. This 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, which means that the following quarter will not have this incremental effect anymore.

Licensing and Syndication
Third-quarter Licensing and Syndication revenue increased by 14.6% to Ps.2,466.0 million compared with Ps.2,151.4 million in the third-quarter 2017. Royalties from Univision increased by 21.0% to U.S.$97.6 million in third-quarter 2018 from U.S.$80.6 million in third-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 2018 Soccer World Cup in Mexico and other Latin American markets, by Ps.1,010.1 million.

Third-quarter operating segment income increased by 19.4% to Ps.3,704.0 million compared with Ps.3,102.1 million in the third-quarter 2017; the margin was 38.1%.

Sky
Third-quarter sales decreased by 0.7% to Ps.5,407.3 million compared to Ps.5,445.2 million in the third-quarter 2017. The number of net active subscribers decreased by 125,824 during the quarter to 7,835,657 as of September 30, 2018. Sky ended the quarter with 159,894 subscribers in Central America and the Dominican Republic.

The loss in video subscribers is primarily explained by the delayed disconnection by certain customers and the temporary subscription of the service in second quarter 2018 as a result of the transmission of the 2018 Soccer World Cup.

Last March Sky launched an offer for broadband services under the brand Blue Telecomm, which consists of a fixed plug-in wireless broadband solution offering 5 Mbps and 10 Mbps in speed. During third quarter 2018, Sky added 40 thousand new Blue Telecomm subscribers reaching 51 thousand.

Third-quarter operating segment income decreased by 3.4% to Ps.2,569.9 million compared with Ps.2,660.4 million in the third-quarter 2017, and the margin was 47.5%.

Cable
Third-quarter sales increased by 10.8% to Ps.9,219.9 million compared with Ps.8,322.5 million in the third-quarter 2017 driven by the addition of 62 thousand broadband Revenue Generating Units (“RGUs”) and 247 thousand voice RGUs.

The number of video RGUs dropped by 35 thousand. As it was the case with Sky, the loss is attributed to the transmission of the 2018 Soccer World Cup in the prior quarter.

The following table sets forth the breakdown of RGUs per service type for our Cable segment as of September 30, 2018 and 2017.

RGUs
3Q’18
3Q’17
Video
4,281,125
4,123,373
Broadband
4,168,248
3,640,132
Voice
2,519,972
2,099,065
Total RGUs
10,969,345
9,862,570
 
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In our Enterprise business, third-quarter sales increased by 4.2%. This is the fastest pace of growth in seven quarters.

The Enterprise business was re-launched at the beginning of 2018 under a new management team. As a result of the turn-around of this operation, during third-quarter 2018, the Enterprise business was successful in the renewal of some existing key contracts and secured new contracts with many private sector clients.

Third-quarter operating segment income increased by 10.9% to Ps.3,907.5 million compared with Ps.3,523.5 million in the third-quarter 2017, and the margin reached 42.4%, similar to the same quarter last year.

The following tables set forth the breakdown of revenues and operating segment income, excluding consolidation adjustments, for our MSO and enterprise operations for third-quarter 2018 and 2017.
 
MSO Operations (1)
Millions of Mexican pesos
3Q’18
3Q’17
Change %
Revenue
8,220.9
7,303.4
12.6
Operating Segment Income
3,548.5
3,141.2
13.0
Margin (%)
43.2
43.0
  
       
Enterprise Operations (1)
Millions of Mexican pesos
3Q’18
3Q’17
Change %
Revenue
1,358.2
1,303.4
4.2
Operating Segment Income
492.3
492.1
0.0
Margin (%)
36.2
37.8
  
 
(1) These results do not include consolidation adjustments of Ps.359.2 million in revenues nor Ps.133.3 million in Operating Segment Income for the third quarter 2018, neither the consolidation adjustments of Ps.284.3 million in revenues nor Ps.109.8 million in Operating Segment Income for the third quarter 2017. Consolidation adjustments are considered in the consolidated results of the Cable segment.   
 
Other  Businesses
Third-quarter sales increased by 8.0% to Ps.1,946.5 million compared with Ps.1,801.7 million in the third-quarter 2017. This increase is explained mainly by (i) an increase in the revenues of our feature-film distribution business; and (ii) an increase in the revenues of our gaming business. This effect was partially compensated by a decrease in the revenues of our publishing business.
 
Third-quarter operating segment income increased by 143.2% to Ps.126.7 million compared with Ps.52.1 million in the third-quarter 2017, and the margin reached 6.5%. These results are mainly explained by a decrease in the operating segment loss related to soccer and publishing businesses.

Corporate Expense

Corporate expense decreased by Ps.54.2 million, or 9.9%, to Ps.496.0 million in third-quarter 2018, from Ps.550.2 million in third-quarter 2017. Corporate expense reflected primarily a share-based compensation expense.

Share-based compensation expense in third quarter 2018 decreased by Ps.58.6 million, or 15.6%, to Ps.317.2 million, 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.

Other Expense, Net

Other expense, net, decreased by Ps.68.0 million, or 13.6%, to Ps.432.5 million in third-quarter 2018, from Ps.500.5 million in third-quarter 2017. This decrease reflected primarily a lower non-recurrent severance expense; as well as a reduction in donations, which effect was partially offset by a loss on disposition of investment in a joint venture.

In third-quarter 2018, other expense, net, was comprised primarily of severance expense, loss on disposition of investment in a joint venture, loss on disposition of property and equipment, and legal and financial advisory professional services. Severance expense in third-quarter 2018 accounted for approximately half of Other expense, net, and resulted from the dismissal of personnel in our Content segment as part of the recent restructuring of Televisa Studios.
 
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Finance Expense, Net

The following table sets forth the finance (expense) income, net, stated in millions of Mexican pesos for the quarters ended September 30, 2018 and 2017.

 
3Q’18
3Q’17
(Increase) Decrease
Interest expense
(2,395.1)
(2,194.1)
(201.0)
Interest income
419.3
334.7
84.6
Foreign exchange gain (loss), net
17.0
(119.7)
136.7
Other finance (expense) income, net
(530.5)
57.5
(588.0)
Finance expense, net
(2,489.3)
(1,921.6)
(567.7)

The finance expense, net, increased by Ps.567.7 million, or 29.5%, to Ps.2,489.3 million in third-quarter 2018 from Ps.1,921.6 million in third-quarter 2017. This increase reflected (i) an unfavorable change of Ps.588.0 million in other finance income or expense, net; and (ii) a Ps.201.0 million increase in interest expense, due primarily to an average annual depreciation of the Mexican peso against the U.S. dollar in connection with our U.S. dollar debt position, which effect was partially offset by a lower average principal amount of debt, finance lease obligations and other notes payable in third-quarter 2018. These unfavorable variances were partially offset by (i) a Ps.136.7 million favorable change in foreign exchange gain or loss, net, resulting primarily from a 5.7% appreciation of the Mexican peso against the U.S. dollar in comparison to a 0.6% depreciation in third quarter 2017, on a lower average net U.S. dollar liability position in third-quarter 2018; and (ii) a Ps.84.6 million increase in interest income explained primarily by a higher average amount of cash equivalents as well as an increase in applicable interest rates in third-quarter 2018.

Televisa maintains a conservative policy towards its foreign exchange exposure. As a result, Televisa has entered into a number of derivative contracts to cover its 2018 and 2019 interest expense, certain operating expenses in 2018, and certain U.S. denominated capital expenditures planned for 2018 and part of 2019. This resulted in a net loss in fair value of our derivate contracts in third-quarter 2018, and explains the increase in finance income or expense, net, mentioned above.

Share of Income of Associates and Joint Ventures, Net

Share of income of associates and joint ventures, net, decreased by Ps.343.4 million, or 51.3%, to Ps.326.6 million in third-quarter 2018 from Ps.670.0 million in third-quarter 2017. This decrease reflected mainly (i) the absence of share of income of Imagina Media Audiovisual, S.L., a communications company in Spain, which investment we sold in June 2018; and (ii) a lower share of income of Univision Holdings, Inc., the controlling company of Univision Communications Inc.

Income Taxes

Income taxes decreased by Ps.206.5 million, or 22.8%, to Ps.699.5 million in third-quarter 2018 compared with Ps.906.0 million in third-quarter 2017. This decrease reflected primarily a lower tax base.

Net Income Attributable to Non-controlling Interests

Net income attributable to non-controlling interests decreased by Ps.4.1 million, or 0.8%, to Ps.501.6 million in third-quarter 2018, compared with Ps.505.7 million in third-quarter 2017. This decrease reflected primarily a lower portion of net income attributable to non-controlling interests in our Sky segment, which was partially offset by a higher 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 third-quarter 2018, we invested approximately U.S.$289.6 million in property, plant and equipment as capital expenditures. These capital expenditures included approximately U.S.$207.6 million in our Cable segment, U.S.$45.3 million in our Sky segment, and U.S.$36.7 million in 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 September 30, 2018 and December 31, 2017. Amounts are stated in millions of Mexican pesos.

 
Sep 30, 2018
Dec 31, 2017
Increase (decrease)
Current portion of long-term debt
1,004.4
307.0
697.4
Long-term debt, net of current portion
117,354.0
121,993.1
(4,639.1)
    Total debt (1)
118,358.4
122,300.1
(3,941.7)
Current portion of long-term finance lease obligations
683.5
580.9
102.6
Long-term finance lease obligations, net of current portion
4,523.4
5,041.9
(518.5)
    Total finance lease obligations
5,206.9
5,622.8
(415.9)
Current portion of other notes payable
1,279.5
1,178.4
101.1
Other notes payable, net of current portion
1,279.5
2,505.6
(1,226.1)
    Total other notes payable (2)
2,559.0
3,684.0
(1,125.0)

 (1)    As of September 30, 2018 and December 31, 2017, total debt is presented net of finance costs in the amount of Ps. 1,177.2 million and Ps.1,250.7 million, respectively, and does not include related accrued interest payable in the amount of Ps. 1,644.0 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 September 30, 2018, our consolidated net debt position (total debt, finance lease obligations and other notes payable less cash and cash equivalents, temporary investments, and certain non-current investments in financial instruments) was Ps.68,630.4 million. The aggregate amount of non-current investments in financial instruments included in our consolidated net debt position as of September 30, 2018, amounted to Ps.15,025.8 million.
 
Shares Outstanding

As of September 30, 2018, and December 31, 2017, our shares outstanding amounted to 340,417.5 million and 342,337.1 million shares, respectively, and our CPO equivalents outstanding amounted to 2,909.6 million and 2,926.0 million, 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 September 30, 2018, and December 31, 2017, the GDS (Global Depositary Shares) equivalents outstanding amounted to 581.9 million and 585.2 million, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five. 
 

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Internal control
 
Disclosure of critical performance measures and indicators that management uses to evaluate entity's performance against stated objectives
 
 
3Q’18
Margin %
3Q’17
Margin %
Change %
Net sales
25,033.2
100.0
22,663.0
100.0
10.5
Net income
1,479.6
5.9
1,520.6
6.7
(2.7)
Net income attributable to stockholders of the Company
978.0
3.9
1,014.9
4.5
(3.6)
Segment net sales
26,283.8
100.0
23,594.3
100.0
11.4
Operating segment income (1)
10,308.1
39.2
9,338.1
39.6
10.4
(1) The operating segment income margin is calculated as a percentage of segment net sales.

Net Sales
3Q’18
%
3Q’17
 %
Change %
Subtotal Content
8,700.0
33.1
8,024.9
34.0
8.4
World Cup rights
1,010.1
3.8
n/a
n/a
n/a
Content
9,710.1
36.9
8,024.9
34.0
21.0
Sky
5,407.3
20.6
5,445.2
23.1
(0.7)
Cable
9,219.9
35.1
8,322.5
35.3
10.8
Other Businesses
1,946.5
7.4
1,801.7
7.6
8.0
Segment Net Sales
26,283.8
100.0
23,594.3
100.0
11.4
Intersegment Operations(1)
(1,250.6)
  
(931.3)
  
(34.3)
Net Sales
25,033.2
  
22,663.0
  
10.5


Operating Segment Income(2)
3Q’18
Margin  %
3Q’17
Margin %
Change %
Subtotal Content
3,110.7
35.8
3,102.1
38.7
0.3
World Cup rights
593.3
58.7
n/a
n/a
n/a
Content
3,704.0
38.1
3,102.1
38.7
19.4
Sky
2,569.9
47.5
2,660.4
48.9
(3.4)
Cable
3,907.5
42.4
3,523.5
42.3
10.9
Other Businesses
126.7
6.5
52.1
2.9
143.2
Operating Segment Income
10,308.1
39.2
9,338.1
39.6
10.4
Corporate Expenses
(496.0)
(1.9)
(550.2)
(2.3)
9.9
Depreciation and Amortization
(5,037.8)
(20.1)
(4,609.2)
(20.3)
(9.3)
Other Expense, net
(432.5)
(1.7)
(500.5)
(2.2)
13.6
Operating Income
4,341.8
17.3
3,678.2
16.2
18.0
(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.
 
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 2018-09-30
Date of end of reporting period:
2018-09-30
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:
3
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 September 30, 2018 and December 31, 2017, and for the nine months ended September 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 September 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
2018-09-30
Close Previous Exercise
2017-12-31
Statement of financial position
    
Assets
    
Current assets
    
Cash and cash equivalents
42,426,757,000.00
38,734,949,000.00
Trade and other current receivables
23,687,944,000.00
30,357,412,000.00
Current tax assets, current
1,890,313,000.00
3,039,810,000.00
Other current financial assets
114,221,000.00
1,586,219,000.00
Current inventories
1,045,297,000.00
1,492,947,000.00
Current biological assets
0
0
Other current non-financial assets
[1] 7,328,131,000.00
5,890,866,000.00
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
76,492,663,000.00
81,102,203,000.00
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
0
0
Total current assets
76,492,663,000.00
81,102,203,000.00
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
49,140,989,000.00
50,688,185,000.00
Investments accounted for using equity method
0
0
Investments in subsidiaries, joint ventures and associates
10,605,898,000.00
14,110,752,000.00
Property, plant and equipment
84,265,782,000.00
85,719,810,000.00
Investment property
0
0
Goodwill
14,112,626,000.00
14,112,626,000.00
Intangible assets other than goodwill
20,901,164,000.00
21,773,808,000.00
Deferred tax assets
20,766,784,000.00
21,355,044,000.00
Other non-current non-financial assets
[2] 11,679,594,000.00
8,357,673,000.00
Total non-current assets
211,472,837,000.00
216,117,898,000.00
Total assets
287,965,500,000.00
297,220,101,000.00
Equity and liabilities
    
Liabilities
    
Current liabilities
    
Trade and other current payables
35,628,110,000.00
44,353,813,000.00
Current tax liabilities, current
3,073,280,000.00
2,524,349,000.00
Other current financial liabilities
4,741,374,000.00
3,863,189,000.00
Other current non-financial liabilities
0
0
Current provisions
    
Current provisions for employee benefits
0
0
Other current provisions
840,000.00
23,466,000.00
Total current provisions
840,000.00
23,466,000.00
Total current liabilities other than liabilities included in disposal groups classified as held for sale
43,443,604,000.00
50,764,817,000.00
Liabilities included in disposal groups classified as held for sale
0
0
Total current liabilities
43,443,604,000.00
50,764,817,000.00
Non-current liabilities
    
Trade and other non-current payables
3,807,557,000.00
2,719,236,000.00
Current tax liabilities, non-current
3,027,383,000.00
4,730,620,000.00
Other non-current financial liabilities
123,168,336,000.00
129,540,643,000.00
Other non-current non-financial liabilities
0
0
 
12 of 79
 
Concept
Close Current Quarter
2018-09-30
Close Previous Exercise
2017-12-31
Non-current provisions
    
Non-current provisions for employee benefits
808,362,000.00
716,095,000.00
Other non-current provisions
53,685,000.00
54,263,000.00
Total non-current provisions
862,047,000.00
770,358,000.00
Deferred tax liabilities
8,090,659,000.00
9,037,513,000.00
Total non-current liabilities
138,955,982,000.00
146,798,370,000.00
Total liabilities
182,399,586,000.00
197,563,187,000.00
Equity
    
Issued capital
4,907,765,000.00
4,978,126,000.00
Share premium
15,889,819,000.00
15,889,819,000.00
Treasury shares
12,955,769,000.00
14,788,984,000.00
Retained earnings
78,487,499,000.00
74,432,547,000.00
Other reserves
4,484,698,000.00
5,150,256,000.00
Total equity attributable to owners of parent
90,814,012,000.00
85,661,764,000.00
Non-controlling interests
14,751,902,000.00
13,995,150,000.00
Total equity
105,565,914,000.00
99,656,914,000.00
Total equity and liabilities
287,965,500,000.00
297,220,101,000.00
 
 
13 of 79

 
[310000] Statement of comprehensive income, profit or loss, by function of expense
 

Concept
Accumulated Current Year
2018-01-01 - 2018-09-30
Accumulated Previous Year
2017-01-01 - 2017-09-30
Quarter Current Year
2018-07-01 - 2018-09-30
Quarter Previous Year
2017-07-01 - 2017-09-30
Profit or loss
        
Profit (loss)
        
Revenue
74,547,082,000.00
67,594,221,000.00
25,033,234,000.00
22,663,029,000.00
Cost of sales
42,348,862,000.00
38,068,328,000.00
14,208,501,000.00
12,592,025,000.00
Gross profit
32,198,220,000.00
29,525,893,000.00
10,824,733,000.00
10,071,004,000.00
Distribution costs
8,037,409,000.00
7,570,152,000.00
2,609,679,000.00
2,472,521,000.00
Administrative expenses
10,223,839,000.00
10,045,411,000.00
3,440,751,000.00
3,419,804,000.00
Other income
2,651,374,000.00
0
0
0
Other expense
0
1,296,850,000.00
432,463,000.00
500,501,000.00
Profit (loss) from operating activities
16,588,346,000.00
10,613,480,000.00
4,341,840,000.00
3,678,178,000.00
Finance income
1,685,154,000.00
2,845,185,000.00
436,195,000.00
392,160,000.00
Finance costs
8,150,386,000.00
6,690,433,000.00
2,925,538,000.00
2,313,831,000.00
Share of profit (loss) of associates and joint ventures accounted for using equity method
910,893,000.00
1,020,707,000.00
326,609,000.00
670,041,000.00
Profit (loss) before tax
11,034,007,000.00
7,788,939,000.00
2,179,106,000.00
2,426,548,000.00
Tax income (expense)
3,798,702,000.00
2,672,602,000.00
699,487,000.00
906,006,000.00
Profit (loss) from continuing operations
7,235,305,000.00
5,116,337,000.00
1,479,619,000.00
1,520,542,000.00
Profit (loss) from discontinued operations
0
0
0
0
Profit (loss)
7,235,305,000.00
5,116,337,000.00
1,479,619,000.00
1,520,542,000.00
Profit (loss), attributable to
        
Profit (loss), attributable to owners of parent
5,952,941,000.00
3,630,051,000.00
978,011,000.00
1,014,900,000.00
Profit (loss), attributable to non-controlling interests
1,282,364,000.00
1,486,286,000.00
501,608,000.00
505,642,000.00
Earnings per share
        
Earnings per share
        
Earnings per share
        
Basic earnings per share
        
Basic earnings (loss) per share from continuing operations
2.05
1.24
0.34
0.35
Basic earnings (loss) per share from discontinued operations
0
0
0
0
Total basic earnings (loss) per share
[3] 2.05
1.24
0.34
0.35
Diluted earnings per share
        
Diluted earnings (loss) per share from continuing operations
1.94
1.18
0.32
0.33
Diluted earnings (loss) per share from discontinued operations
0
0
0
0
Total diluted earnings (loss) per share
[4] 1.94
1.18
0.32
0.33
 
14 of 79

 
[410000] Statement of comprehensive income, OCI components presented net of tax
 

Concept
Accumulated Current Year
2018-01-01 - 2018-09-30
Accumulated Previous Year
2017-01-01 - 2017-09-30
Quarter Current Year
2018-07-01 - 2018-09-30
Quarter Previous Year
2017-07-01 - 2017-09-30
Statement of comprehensive income
        
Profit (loss)
7,235,305,000.00
5,116,337,000.00
1,479,619,000.00
1,520,542,000.00
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
(1,135,041,000.00)
(537,629,000.00)
(479,229,000.00)
188,204,000.00
Reclassification adjustments on exchange differences on translation, net of tax
0
0
0
0
Other comprehensive income, net of tax, exchange differences on translation
(1,135,041,000.00)
(537,629,000.00)
(479,229,000.00)
188,204,000.00
Available-for-sale financial assets
        
Gains (losses) on remeasuring available-for-sale financial assets, net of tax
576,873,000.00
1,428,108,000.00
1,040,186,000.00
577,951,000.00
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
576,873,000.00
1,428,108,000.00
1,040,186,000.00
577,951,000.00
Cash flow hedges
        
Gains (losses) on cash flow hedges, net of tax
(215,390,000.00)
(453,660,000.00)
(266,420,000.00)
123,043,000.00
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
(215,390,000.00)
(453,660,000.00)
(266,420,000.00)
123,043,000.00
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
 
 
15 of 79
 
 
Concept
Accumulated Current Year
2018-01-01 - 2018-09-30
Accumulated Previous Year
2017-01-01 - 2017-09-30
Quarter Current Year
2018-07-01 - 2018-09-30
Quarter Previous Year
2017-07-01 - 2017-09-30
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
64,068,000.00
1,432,000.00
20,215,000.00
6,261,000.00
Total other comprehensive income that will be reclassified to profit or loss, net of tax
(709,490,000.00)
438,251,000.00
314,752,000.00
895,459,000.00
Total other comprehensive income
(709,490,000.00)
438,251,000.00
314,752,000.00
895,459,000.00
Total comprehensive income
6,525,815,000.00
5,554,588,000.00
1,794,371,000.00
2,416,001,000.00
Comprehensive income attributable to
        
Comprehensive income, attributable to owners of parent
5,287,383,000.00
4,177,606,000.00
1,396,783,000.00
1,910,337,000.00
Comprehensive income, attributable to non-controlling interests
1,238,432,000.00
1,376,982,000.00
397,588,000.00
505,664,000.00
 

 
16 of 79
 
[520000] Statement of cash flows, indirect method
 

Concept
Accumulated Current Year
2018-01-01 - 2018-09-30
Accumulated Previous Year
2017-01-01 - 2017-09-30
Statement of cash flows
    
Cash flows from (used in) operating activities
    
Profit (loss)
7,235,305,000.00
5,116,337,000.00
Adjustments to reconcile profit (loss)
    
Discontinued operations
0
0
Adjustments for income tax expense
3,798,702,000.00
2,672,602,000.00
Adjustments for finance costs
0
0
Adjustments for depreciation and amortisation expense
14,686,728,000.00
13,731,734,000.00
Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
34,564,000.00
73,390,000.00
Adjustments for provisions
1,285,309,000.00
1,956,439,000.00
Adjustments for unrealised foreign exchange losses (gains)
(1,585,924,000.00)
(5,111,371,000.00)
Adjustments for share-based payments
1,010,302,000.00
1,114,078,000.00
Adjustments for fair value losses (gains)
1,113,426,000.00
(9,164,000.00)
Adjustments for undistributed profits of associates
0
0
Adjustments for losses (gains) on disposal of non-current assets
676,356,000.00
819,080,000.00
Participation in associates and joint ventures
(910,893,000.00)
(1,020,707,000.00)
Adjustments for decrease (increase) in inventories
(734,812,000.00)
(329,655,000.00)
Adjustments for decrease (increase) in trade accounts receivable
8,270,566,000.00
10,045,329,000.00
Adjustments for decrease (increase) in other operating receivables
(2,516,177,000.00)
(1,425,324,000.00)
Adjustments for increase (decrease) in trade accounts payable
(248,312,000.00)
(3,779,525,000.00)
Adjustments for increase (decrease) in other operating payables
(7,335,641,000.00)
(11,643,828,000.00)
Other adjustments for non-cash items
0
0
Other adjustments for which cash effects are investing or financing cash flow
(3,582,681,000.00)
(26,000.00)
Straight-line rent adjustment
0
0
Amortization of lease fees
0
0
Setting property values
0
0
Other adjustments to reconcile profit (loss)
301,347,000.00
681,141,000.00
Total adjustments to reconcile profit (loss)
14,262,860,000.00
7,774,193,000.00
Net cash flows from (used in) operations
21,498,165,000.00
12,890,530,000.00
Dividends paid
0
0
Dividends received
0
0
Interest paid
(7,036,960,000.00)
(6,690,433,000.00)
Interest received
(95,395,000.00)
(73,750,000.00)
Income taxes refund (paid)
5,396,951,000.00
5,333,484,000.00
Other inflows (outflows) of cash
0
0
Net cash flows from (used in) operating activities
23,042,779,000.00
14,173,729,000.00
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
5,890,520,000.00
26,000.00
Other cash payments to acquire equity or debt instruments of other entities
0
0
Other cash receipts from sales of interests in joint ventures
95,161,000.00
0
Other cash payments to acquire interests in joint ventures
0
182,500,000.00
Proceeds from sales of property, plant and equipment
956,727,000.00
563,186,000.00
Purchase of property, plant and equipment
12,740,872,000.00
11,497,184,000.00
Proceeds from sales of intangible assets
0
0
Purchase of intangible assets
1,540,012,000.00
1,205,043,000.00
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 - 2018-09-30
Accumulated Previous Year
2017-01-01 - 2017-09-30
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
416,189,000.00
283,660,000.00
Net cash flows from (used in) investing activities
(6,922,287,000.00)
(12,037,855,000.00)
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
1,184,020,000.00
1,292,438,000.00
Proceeds from issuing shares
0
0
Proceeds from issuing other equity instruments
0
0
Payments to acquire or redeem entity's shares
1,541,180,000.00
0
Payments of other equity instruments
0
0
Proceeds from borrowings
0
0
Repayments of borrowings
230,617,000.00
774,787,000.00
Payments of finance lease liabilities
334,638,000.00
450,509,000.00
Proceeds from government grants
0
0
Dividends paid
1,068,868,000.00
1,084,192,000.00
Interest paid
7,014,365,000.00
6,688,340,000.00
Income taxes refund (paid)
0
0
Other inflows (outflows) of cash
(952,377,000.00)
(515,298,000.00)
Net cash flows from (used in) financing activities
(12,326,065,000.00)
(10,805,564,000.00)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
3,794,427,000.00
(8,669,690,000.00)
Effect of exchange rate changes on cash and cash equivalents
    
Effect of exchange rate changes on cash and cash equivalents
(102,619,000.00)
(217,837,000.00)
Net increase (decrease) in cash and cash equivalents
3,691,808,000.00
(8,887,527,000.00)
Cash and cash equivalents at beginning of period
38,734,949,000.00
47,546,083,000.00
Cash and cash equivalents at end of period
42,426,757,000.00
38,658,556,000.00
 
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
4,978,126,000.00
15,889,819,000.00
14,788,984,000.00
74,432,547,000.00
0
2,298,822,000.00
561,412,000.00
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
5,952,941,000.00
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(1,091,109,000.00)
(215,390,000.00)
0
0
Total comprehensive income
0
0
0
5,952,941,000.00
0
(1,091,109,000.00)
(215,390,000.00)
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,068,868,000.00
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
1,480,774,000.00
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
(70,361,000.00)
0
(2,764,562,000.00)
(2,694,201,000.00)
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
931,347,000.00
384,306,000.00
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
(70,361,000.00)
0
(1,833,215,000.00)
4,054,952,000.00
0
(1,091,109,000.00)
(215,390,000.00)
0
0
Equity at end of period
4,907,765,000.00
15,889,819,000.00
12,955,769,000.00
78,487,499,000.00
0
1,207,713,000.00
346,022,000.00
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
2,747,704,000.00
0
(665,739,000.00)
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
576,873,000.00
0
0
0
0
0
0
Total comprehensive income
0
0
576,873,000.00
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
576,873,000.00
0
0
0
0
0
0
Equity at end of period
0
0
3,324,577,000.00
0
(665,739,000.00)
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
208,057,000.00
5,150,256,000.00
85,661,764,000.00
13,995,150,000.00
99,656,914,000.00
Changes in equity
              
Comprehensive income
              
Profit (loss)
0
0
0
0
5,952,941,000.00
1,282,364,000.00
7,235,305,000.00
Other comprehensive income
0
0
64,068,000.00
(665,558,000.00)
(665,558,000.00)
(43,932,000.00)
(709,490,000.00)
Total comprehensive income
0
0
64,068,000.00
(665,558,000.00)
5,287,383,000.00
1,238,432,000.00
6,525,815,000.00
Issue of equity
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
1,068,868,000.00
1,265,512,000.00
2,334,380,000.00
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
1,480,774,000.00
783,832,000.00
2,264,606,000.00
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
(547,041,000.00)
0
(547,041,000.00)
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
64,068,000.00
(665,558,000.00)
5,152,248,000.00
756,752,000.00
5,909,000,000.00
Equity at end of period
0
0
272,125,000.00
4,484,698,000.00
90,814,012,000.00
14,751,902,000.00
105,565,914,000.00
 
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
4,978,126,000.00
15,889,819,000.00
11,433,482,000.00
70,395,669,000.00
0
1,989,164,000.00
399,181,000.00
0
0
Changes in equity
                  
Comprehensive income
                  
Profit (loss)
0
0
0
3,630,051,000.00
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(428,325,000.00)
(453,660,000.00)
0
0
Total comprehensive income
0
0
0
3,630,051,000.00
0
(428,325,000.00)
(453,660,000.00)
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,084,192,000.00
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
406,201,000.00
846,712,000.00
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
406,201,000.00
3,392,571,000.00
0
(428,325,000.00)
(453,660,000.00)
0
0
Equity at end of period
4,978,126,000.00
15,889,819,000.00
11,839,683,000.00
73,788,240,000.00
0
1,560,839,000.00
(54,479,000.00)
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
1,686,836,000.00
0
(381,794,000.00)
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
1,428,108,000.00
0
0
0
0
0
0
Total comprehensive income
0
0
1,428,108,000.00
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
1,428,108,000.00
0
0
0
0
0
0
Equity at end of period
0
0
3,114,944,000.00
0
(381,794,000.00)
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
268,397,000.00
3,961,784,000.00
83,791,916,000.00
12,492,484,000.00
96,284,400,000.00
Changes in equity
              
Comprehensive income
              
Profit (loss)
0
0
0
0
3,630,051,000.00
1,486,286,000.00
5,116,337,000.00
Other comprehensive income
0
0
1,432,000.00
547,555,000.00
547,555,000.00
(109,304,000.00)
438,251,000.00
Total comprehensive income
0
0
1,432,000.00
547,555,000.00
4,177,606,000.00
1,376,982,000.00
5,554,588,000.00
Issue of equity
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
1,084,192,000.00
452,617,000.00
1,536,809,000.00
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
(193,000.00)
(193,000.00)
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
(11,050,000.00)
(11,050,000.00)
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
440,511,000.00
0
440,511,000.00
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
1,432,000.00
547,555,000.00
3,533,925,000.00
913,122,000.00
4,447,047,000.00
Equity at end of period
0
0
269,829,000.00
4,509,339,000.00
87,325,841,000.00
13,405,606,000.00
100,731,447,000.00
 
24 of 79

 
[700000] Informative data about the Statement of financial position
 

Concept
Close Current Quarter
2018-09-30
Close Previous Exercise
2017-12-31
Informative data of the Statement of Financial Position
    
Capital stock (nominal)
2,459,154,000.00
2,494,410,000.00
Restatement of capital stock
2,448,611,000.00
2,483,716,000.00
Plan assets for pensions and seniority premiums
1,602,746,000.00
1,652,420,000.00
Number of executives
71
73
Number of employees
39,225
39,915
Number of workers
0
0
Outstanding shares
340,417,522,731
342,337,098,324
Repurchased shares
16,889,749,071
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 - 2018-09-30
Accumulated Previous Year
2017-01-01 - 2017-09-30
Quarter Current Year
2018-07-01 - 2018-09-30
Quarter Previous Year
2017-07-01 - 2017-09-30
Informative data of the Income Statement
        
Operating depreciation and amortization
14,686,728,000.00
13,731,734,000.00
5,037,803,000.00
4,609,212,000.00
 
26 of 79
 
[700003] Informative data - Income statement for 12 months
 

Concept
Current Year
2017-10-01 - 2018-09-30
Previous Year
2016-10-01 - 2017-09-30
Informative data - Income Statement for 12 months
    
Revenue
100,540,085,000.00
95,471,770,000.00
Profit (loss) from operating activities
20,218,068,000.00
15,334,512,000.00
Profit (loss)
8,145,381,000.00
6,653,677,000.00
Profit (loss), attributable to owners of parent
6,296,277,000.00
4,604,610,000.00
Operating depreciation and amortization
19,459,813,000.00
18,228,808,000.00
 
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
60,540,000.00
181,619,000.00
242,159,000.00
242,159,000.00
670,111,000.00
              
HSBC 2
NO
2013-05-29
2019-05-30
TIIE+1.25
16,231,000.00
196,440,000.00
                    
HSBC 3
NO
2014-07-04
2019-07-04
TIIE+1.25
  
299,757,000.00
                    
BANCO SANTANDER 4
NO
2015-03-12
2020-05-07
TIIE+1.25
    
249,783,000.00
                  
BANCO SANTANDER 5
NO
2015-01-08
2019-09-10
TIIE+1.25
  
249,810,000.00
                    
HSBC 6
NO
2016-03-08
2023-03-08
7.13
      
625,000,000.00
1,250,000,000.00
625,000,000.00
            
SCOTIABANK INVERLAT 7
NO
2016-03-08
2023-03-08
7
      
750,000,000.00
1,500,000,000.00
750,000,000.00
            
BANCO SANTANDER 8
NO
2017-11-23
2022-10-21
TIIE+1.25
          
1,492,500,000.00
            
HSBC9
NO
2017-11-23
2022-11-22
TIIE+1.30
          
1,990,034,000.00
            
SCOTIABANK INVERLAT10
NO
2017-12-07
2023-02-03
TIIE+1.30
          
2,487,177,000.00
            
TOTAL
        
76,771,000.00
927,626,000.00
491,942,000.00
1,617,159,000.00
3,420,111,000.00
7,344,711,000.00
0
0
0
0
0
0
Other banks
  
TOTAL
        
0
0
0
0
0
0
0
0
0
0
0
0
Total banks
  
TOTAL
        
76,771,000.00
927,626,000.00
491,942,000.00
1,617,159,000.00
3,420,111,000.00
7,344,711,000.00
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
          
4,486,466,000.00
            
NOTES 2
NO
2010-10-14
2020-10-01
7.38
      
9,985,306,000.00
                
SENIOR NOTES 3
YES
2013-05-14
2043-05-14
7.62
          
6,441,580,000.00
            
NOTES 4
NO
2014-04-07
2021-04-01
TIIE+0.35
      
5,994,655,000.00
                
NOTES 5
NO
2015-05-11
2022-05-02
TIIE+0.35
        
4,993,680,000.00
              
NOTES 6
NO
2017-10-09
2027-09-09
8.79
          
4,478,570,000.00
            
SENIOR NOTES 7
YES
2005-03-18
2025-03-18
6.97
                      
10,960,309,000.00
SENIOR NOTES 8
YES
2002-03-11
2032-03-11
8.94
                      
5,580,816,000.00
SENIOR NOTES 9
YES