UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2004
GRUPO TELEVISA, S.A.
-------------------------------------------------
(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F.
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(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
------- -------
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No X
----- -----
(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2004 AND 2003
(Thousands of Mexican Pesos)
Final Printing
-----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-----------------------------------------------------------
S Amount % Amount %
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1 TOTAL ASSETS 59,794,730 100 54,636,864 100
2 CURRENT ASSETS 20,055,961 34 19,582,147 36
3 CASH AND SHORT-TERM INVESTMENTS 10,540,858 18 10,177,416 19
4 ACCOUNTS AND NOTES RECEIVABLE (NET) 3,703,725 6 3,382,109 6
5 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 1,045,802 2 1,461,412 3
6 INVENTORIES 4,138,502 7 4,169,523 8
7 OTHER CURRENT ASSETS 627,074 1 391,687 1
8 LONG-TERM 6,880,752 12 3,550,631 6
9 ACCOUNTS AND NOTES RECEIVABLE (NET) 0 0 0 0
10 INVESTMENT IN SHARES OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES 6,607,290 11 3,340,193 6
11 OTHER INVESTMENTS 273,462 0 210,438 0
12 PROPERTY, PLANT AND EQUIPMENT (NET) 18,733,087 31 16,100,002 29
13 LAND AND BUILDINGS 12,777,929 21 12,555,338 23
14 MACHINERY AND INDUSTRIAL EQUIPMENT 14,938,870 25 10,913,771 20
15 OTHER EQUIPMENT 2,893,700 5 2,515,461 5
16 ACCUMULATED DEPRECIATION 12,612,290 21 10,883,532 20
17 CONSTRUCTION IN PROGRESS 734,878 1 998,964 2
18 DEFERRED ASSETS (NET) 9,396,868 16 9,727,468 18
19 OTHER ASSETS 4,728,062 8 5,676,616 10
20 TOTAL LIABILITIES 33,828,417 100 30,257,533 100
21 CURRENT LIABILITIES 6,823,105 20 4,058,368 13
22 SUPPLIERS 2,079,468 6 2,046,569 7
23 BANK LOANS 127,393 0 298,647 1
24 STOCK MARKET LOANS 2,279,200 7 0 0
25 TAXES PAYABLE 395,340 1 286,860 1
26 OTHER CURRENT LIABILITIES 1,941,704 6 1,426,292 5
27 LONG-TERM LIABILITIES 19,182,212 57 16,173,061 53
28 BANK LOANS 2,012,710 6 2,159,530 7
29 STOCK MARKET LOANS 15,075,977 45 13,074,352 43
30 OTHER LOANS 2,093,525 6 939,179 3
31 DEFERRED LIABILITIES 7,823,100 23 8,099,289 27
32 OTHER LIABILITIES 0 0 1,926,815 6
33 CONSOLIDATED STOCKHOLDERS' EQUITY 25,966,313 100 24,379,331 100
34 MINORITY INTEREST (196,690) (1) 1,246,952 5
35 MAJORITY INTEREST 26,163,003 101 23,132,379 95
36 CONTRIBUTED CAPITAL 13,410,890 52 8,386,361 34
37 CAPITAL STOCK (NOMINAL) 2,524,174 10 1,555,065 6
38 RESTATEMENT OF CAPITAL STOCK 6,880,690 26 6,598,675 27
39 PREMIUM ON SALES OF SHARES 4,006,026 15 232,621 1
40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0
41 EARNED CAPITAL 12,752,113 49 14,746,018 60
42 RETAINED EARNINGS AND CAPITAL RESERVE 6,711,560 26 12,161,938 50
43 RESERVE FOR REPURCHASE OF SHARES 5,463,090 21 5,483,196 22
44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK-
HOLDERS' EQUITY (1,809,933) (7) (5,228,319) (21)
45 NET INCOME FOR THE YEAR 2,387,396 9 2,329,203 10
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MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS
BREAKDOWN OF MAJOR CONCEPTS
(Thousands of Mexican Pesos)
Final Printing
-----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
------------------------------------------------------------
S Amount % Amount %
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3 CASH AND SHORT-TERM INVESTMENTS 10,540,858 100 10,177,416 100
46 CASH 398,356 4 257,940 3
47 SHORT-TERM INVESTMENTS 10,142,502 96 9,919,476 97
18 DEFERRED ASSETS (NET) 9,396,868 100 9,727,468 100
48 DEFERRED EXPENSES (NET) 1,613,847 17 1,661,460 17
49 GOODWILL 7,783,021 83 8,066,008 83
50 DEFERRED TAXES 0 0 0 0
51 OTHER 0 0 0 0
21 CURRENT LIABILITIES 6,823,105 100 4,058,368 100
52 FOREIGN CURRENCY LIABILITIES 4,109,283 60 2,139,121 53
53 MEXICAN PESOS LIABILITIES 2,713,822 40 1,919,247 47
24 STOCK MARKET LOANS 2,279,200 100 0 100
54 COMMERCIAL PAPER 2,279,200 100 0 0
55 CURRENT MATURITIES OF MEDIUM-TERM NOTES 0 0 0 0
56 CURRENT MATURITIES OF BONDS 0 0 0 0
26 OTHER CURRENT LIABILITIES 1,941,704 100 1,426,292 100
57 OTHER CURRENT LIABILITIES WITH COST 70,271 4 0 0
58 OTHER CURRENT LIABILITIES WITHOUT COST 1,871,433 96 1,426,292 100
27 LONG-TERM LIABILITIES 19,182,212 100 16,173,061 100
59 FOREIGN CURRENCY LIABILITIES 13,311,155 69 11,394,305 70
60 MEXICAN PESOS LIABILITIES 5,871,057 31 4,778,756 30
29 STOCK MARKET LOANS 15,075,977 100 13,074,352 100
61 BONDS 15,075,977 100 13,074,352 100
62 MEDIUM-TERM NOTES 0 0 0 0
30 OTHER LOANS 2,093,525 100 939,179 100
63 OTHER LOANS WITH COST 1,372,822 66 0 0
64 OTHER LOANS WITHOUT COST 720,703 34 939,179 100
31 DEFERRED LIABILITIES 7,823,100 100 8,099,289 100
65 NEGATIVE GOODWILL 0 0 0 0
66 DEFERRED TAXES 1,279,226 16 1,362,078 17
67 OTHER 6,543,874 84 6,737,211 83
32 OTHER LIABILITIES 0 100 1,926,815 100
68 RESERVES 0 0 167,529 9
69 OTHERS LIABILITIES 0 0 1,759,286 91
44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK- (1,809,923) 100 (5,228,319) 100
HOLDERS' EQUITY
70 ACCUMULATED MONETARY RESULT (30,994) (2) (30,994) (1)
71 RESULT FROM HOLDING NON-MONETARY ASSETS (1,778,929) (98) (5,197,325) (99)
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MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED FINANCIAL STATEMENTS
OTHER CONCEPTS
(Thousands of Mexican Pesos)
Final Printing
-----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
--------------------------------------------------------
S Amount Amount
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72 WORKING CAPITAL 13,232,856 15,523,779
73 PENSIONS AND SENIORITY PREMIUMS 1,055,501 928,150
74 EXECUTIVES (*) 35 36
75 EMPLOYEES (*) 14,000 12,377
76 WORKERS (*) 0 0
77 OUTSTANDING SHARES (*) 341,815,028,451 8,767,126,225
78 REPURCHASED SHARES (*) 27,458,341,950 332,785,180
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(*) THESE CONCEPTS ARE STATED IN UNITS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
FROM JANUARY 1 THROUGH SEPTEMBER 30, 2004 AND 2003
(Thousands of Mexican Pesos)
Final Printing
------------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------------------------------------
R Amount % Amount %
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1 NET SALES 20,538,428 100 17,095,643 100
2 COST OF SALES 11,832,045 58 10,265,630 60
3 GROSS PROFIT 8,706,383 42 6,830,013 40
4 OPERATING EXPENSES 3,088,582 15 2,613,386 15
5 OPERATING INCOME 5,617,801 27 4,216,627 25
6 INTEGRAL FINANCING COST 1,044,587 5 413,418 2
7 INCOME AFTER INTEGRAL FINANCING COST 4,573,214 22 3,803,209 22
8 OTHER FINANCIAL OPERATIONS 604,230 3 371,768 2
9 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT
SHARING 3,968,984 19 3,431,441 20
10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT
SHARING 1,069,211 5 788,008 5
11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT
SHARING 2,899,773 14 2,643,433 15
12 SHARE IN NET INCOME OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES 553,881 3 (319,070) (2)
13 CONSOLIDATED NET INCOME OF CONTINUING
OPERATIONS 3,453,654 17 2,324,363 14
14 INCOME FROM DISCONTINUED OPERATIONS 0 0 0 0
15 CONSOLIDATED NET INCOME BEFORE
EXTRAORDINARY ITEMS 3,453,654 17 2,324,363 14
16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) 0 0 0 0
17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 1,008,965 5 0 0
18 NET CONSOLIDATED INCOME 2,444,689 12 2,324,363 14
19 NET INCOME OF MINORITY INTEREST 57,293 0 (4,840) (0)
20 NET INCOME OF MAJORITY INTEREST 2,387,396 12 2,329,203 14
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MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
Final Printing
------------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------------------------------------
R Amount % Amount %
------------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 20,538,428 100 17,095,643 100
21 DOMESTIC 17,039,079 83 14,015,864 82
22 FOREIGN 3,499,349 17 3,079,779 18
23 TRANSLATED INTO DOLLARS (***) 307,068 1 266,302 2
6 INTEGRAL FINANCING COST 1,044,587 100 413,418 100
24 INTEREST EXPENSE 1,273,433 122 947,047 229
25 FOREIGN EXCHANGE LOSS 20,025 2 0 0
26 INTEREST INCOME 463,498 44 540,365 131
27 FOREIGN EXCHANGE GAIN 0 0 111,992 27
28 RESULT FROM MONETARY POSITION 106,135 10 37,945 9
42 LOSS ON RESTATEMENT OF UDI'S 108,492 10 80,783 20
43 GAIN ON RESTATEMENT OF UDI'S 0 0 0 0
8 OTHER FINANCIAL OPERATIONS 604,230 100 371,768 100
29 OTHER EXPENSE (INCOME) NET 604,230 100 371,768 100
30 (GAIN) LOSS ON SALE OF OWN SHARES 0 0 0 0
31 (GAIN) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0
10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING 1,069,211 100 788,008 100
32 INCOME TAX 584,609 55 783,719 99
33 DEFERRED INCOME TAX 480,518 45 (111) (0)
34 EMPLOYEES' PROFIT SHARING 4,084 0 4,400 1
35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0
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(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Mexican Pesos)
Final Printing
------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
----------------------------------------
R Amount Amount
------------------------------------------------------------------------------------------------------------------------
36 TOTAL SALES 21,869,888 18,539,237
37 TAX RESULT FOR THE YEAR 0 725,130
38 NET SALES (**) 27,800,125 23,934,653
39 OPERATING INCOME (**) 7,650,871 5,921,868
40 NET INCOME OF MAJORITY INTEREST (**) 3,776,009 1,321,213
41 NET CONSOLIDATED INCOME (**) 3,713,012 1,208,976
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(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
FROM JULY 1 THROUGH SEPTEMBER 30, 2004 AND 2003
(Thousands of Mexican Pesos)
Final Printing
------------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------------------------------------
R Amount % Amount %
------------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 7,630,297 100 5,910,765 100
2 COST OF SALES 4,342,404 57 3,578,820 61
3 GROSS PROFIT 3,287,893 43 2,331,945 39
4 OPERATING EXPENSES 1,110,390 15 823,195 14
5 OPERATING INCOME 2,177,503 29 1,508,750 26
6 INTEGRAL FINANCING COST 517,550 7 38,102 1
7 INCOME AFTER INTEGRAL FINANCING COST 1,659,953 22 1,470,648 25
8 OTHER FINANCIAL OPERATIONS 124,075 2 256,997 4
9 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT
SHARING 1,535,878 20 1,213,651 21
10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT
SHARING 435,994 6 163,756 3
11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT
SHARING 1,099,884 14 1,049,895 18
12 SHARE IN NET INCOME OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES 403,312 5 (326,011) (6)
13 CONSOLIDATED NET INCOME OF CONTINUING
OPERATIONS 1,503,196 20 723,884 12
14 INCOME FROM DISCONTINUED OPERATIONS 0 0 0 0
15 CONSOLIDATED NET INCOME BEFORE
EXTRAORDINARY ITEMS 1,503,196 20 723,884 12
16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) 0 0 0 0
17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 0 0 0 0
18 NET CONSOLIDATED INCOME 1,503,196 20 723,884 12
19 NET INCOME OF MINORITY INTEREST 65,700 1 3,148 0
20 NET INCOME OF MAJORITY INTEREST 1,437,496 19 720,736 12
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MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
Final Printing
----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
------------------------------------------------
R Amount % Amount %
----------------------------------------------------------------------------------------------------------------------------------
1 NET SALES 7,630,297 100 5,910,765 100
21 DOMESTIC 6,476,617 85 4,764,126 81
22 FOREIGN 1,153,680 15 1,146,639 19
23 TRANSLATED INTO DOLLARS (***) 107,179 1 91,840 2
6 INTEGRAL FINANCING COST 517,550 100 38,102 100
24 INTEREST EXPENSE 526,370 102 309,254 812
25 FOREIGN EXCHANGE LOSS 85,292 16 0 0
26 INTEREST INCOME 137,901 27 163,655 430
27 FOREIGN EXCHANGE GAIN 0 0 120,102 315
28 RESULT FROM MONETARY POSITION (29,880) (6) (15,021) (39)
42 LOSS ON RESTATEMENT OF UDI'S 73,669 14 27,626 73
43 GAIN ON RESTATEMENT OF UDI'S 0 0 0
8 OTHER FINANCIAL OPERATIONS 124,075 100 256,997 100
29 OTHER EXPENSE (INCOME) NET 124,075 100 256,997 100
30 (GAIN) LOSS ON SALE OF OWN SHARES 0 0 0 0
31 (GAIN) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0 0 0
10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING 435,994 100 163,756 100
32 INCOME TAX (34,137) (8) (75,950) (46)
33 DEFERRED INCOME TAX 468,859 108 238,577 146
34 EMPLOYEES' PROFIT SHARING 1,272 0 1,129 1
35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0
----------------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 THROUGH SEPTEMBER 30, 2004 AND 2003
(Thousands of Mexican Pesos)
Final Printing
-----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------------------------------------
C Amount Amount
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1 CONSOLIDATED NET INCOME 2,444,689 2,324,363
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT
REQUIRE USING RESOURCES 1,557,667 1,524,381
3 RESOURCES FROM NET INCOME FOR THE YEAR 4,002,356 3,848,744
4 RESOURCES FROM CHANGE IN WORKING CAPITAL (1,544,276) (497,491)
5 RESOURCES PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 2,458,080 3,351,253
6 CASH FLOW FROM EXTERNAL FINANCING 4,140,732 (97,553)
7 CASH FLOW FROM INTERNAL FINANCING (3,944,115) (1,076,063)
8 RESOURCES PROVIDED BY (USED FOR) FINANCING
ACTIVITIES 196,617 (1,173,616)
9 RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES (4,790,672) (1,444,335)
10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
INVESTMENTS (2,135,975) 733,302
11 CASH AND SHORT-TERM INVESTMENTS AT THE
BEGINNING OF PERIOD 12,676,833 9,444,114
12 CASH AND SHORT-TERM INVESTMENTS AT THE END
OF PERIOD 10,540,858 10,177,416
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MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
Final Printing
----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------------------------------------
Amount Amount
-----------------------------------------------------------------------------------------------------------------------------------
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT
REQUIRE USING RESOURCES 1,557,667 1,524,381
13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 1,494,621 1,211,895
14 + (-) NET INCREASE (DECREASE) IN PENSIONS
AND SENIORITY PREMIUMS 0 0
15 + (-) NET LOSS (GAIN) IN FOREIGN EXCHANGE 0 0
16 + (-) NET LOSS (GAIN) IN ASSETS AND LIABILITIES
RESTATEMENT 0 0
17 + (-) OTHER ITEMS 0 0
40 + (-) OTHER NON-EBITDA ITEMS 63,046 312,486
4 RESOURCES FROM CHANGE IN WORKING CAPITAL (1,544,276) (497,491)
18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 7,399,829 6,808,585
19 + (-) DECREASE (INCREASE) IN INVENTORIES 546,445 (27,589)
20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS
RECEIVABLE (39,255) 15,530
21 + (-) INCREASE (DECREASE) IN SUPPLIERS (546,074) (339,613)
22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES (8,905,221) (6,954,404)
6 CASH FLOW FROM EXTERNAL FINANCING 4,140,732 (97,553)
23 + SHORT-TERM BANK AND STOCK MARKET FINANCING 2,279,200 0
24 + LONG-TERM BANK AND STOCK MARKET FINANCING (2,011,222) 1,213,399
25 + DIVIDEND RECEIVED 0 0
26 + OTHER FINANCING 4,041,789 0
27 (-) BANK FINANCING AMORTIZATION (169,035) (239,688)
28 (-) STOCK MARKET FINANCING AMORTIZATION 0 (756,868)
29 (-) OTHER FINANCING AMORTIZATION 0 (314,396)
7 CASH FLOW FROM INTERNAL FINANCING (3,944,115) (1,076,063)
30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 920,816 (484,919)
31 (-) DIVIDENDS PAID (3,912,470) (591,144)
32 + PREMIUM ON SALE OF SHARES 0 0
33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES (952,461) 0
9 RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES (4,790,672) (1,444,335)
34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS (258,763) (228,824)
35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (1,258,494) (615,625)
36 (-) INCREASE IN CONSTRUCTION IN PROGRESS 0 0
37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0
38 + SALE OF TANGIBLE FIXED ASSETS 132,819 230,189
39 + (-) OTHER ITEMS (3,406,234) (830,075)
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MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
RATIOS
CONSOLIDATED
Final Printing
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REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------------------------------------
P Amount Amount
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YIELD
1 NET INCOME TO NET SALES 11.90 % 13.60 %
2 NET INCOME TO STOCKHOLDERS' EQUITY (**) 14.43 % 5.71 %
3 NET INCOME TO TOTAL ASSETS (**) 6.21 % 2.21 %
4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00 % 0.00 %
5 RESULT FROM MONETARY POSITION TO NET INCOME (4.34) % (1.63) %
ACTIVITY
6 NET SALES TO NET ASSETS (**) 0.46 times 0.44 times
7 NET SALES TO FIXED ASSETS (**) 1.48 times 1.49 times
8 INVENTORIES TURNOVER (**) 3.89 times 3.44 times
9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 42 days 48 days
10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 7.66 % 8.20 %
LEVERAGE
11 TOTAL LIABILITIES TO TOTAL ASSETS 56.57 % 55.38 %
12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.30 times 1.24 times
13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 51.50 % 44.73 %
14 LONG-TERM LIABILITIES TO FIXED ASSETS 102.40 % 100.45 %
15 OPERATING INCOME TO INTEREST PAID 4.41 times 4.45 times
16 NET SALES TO TOTAL LIABILITIES (**) 0.82 times 0.79 times
LIQUIDITY
17 CURRENT ASSETS TO CURRENT LIABILITIES 2.94 times 4.83 times
18 CURRENT ASSETS LESS INVENTORY TO CURRENT
LIABILITIES 2.33 times 3.80 times
19 CURRENT ASSETS TO TOTAL LIABILITIES 0.59 times 0.65 times
20 AVAILABLE ASSETS TO CURRENT LIABILITIES 154.49 % 250.78 %
CASH FLOW
21 RESOURCES FROM NET INCOME TO NET SALES 19.49 % 23.73 %
22 RESOURCES FROM CHANGES IN WORKING CAPITAL
TO NET SALES (7.52) % (4.13) %
23 RESOURCES GENERATED (USED) IN OPERATING TO
INTEREST PAID 1.93 times 3.54 times
24 EXTERNAL FINANCING TO RESOURCES PROVIDED BY
(USED FOR) FINANCING 2,105.99 % 8.31 %
25 INTERNAL FINANCING TO RESOURCES PROVIDED BY
(USED FOR) FINANCING (2,005.99) % 91.69 %
26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
TO RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES 26.27 % 42.62 %
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(**) THESE RATIOS TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
DATA PER SHARE
CONSOLIDATED FINANCIAL STATEMENT
Final Printing
----------------------------------------------------------------------------------------------------------------------------------
REF
CONCEPTS CURRENT YEAR PREVIOUS YEAR
--------------------------------------------------------
D Amount Amount
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----------------------------------------------------------------------------------------------------------------------------------
1 BASIC PROFIT PER ORDINARY SHARE (**) $ .01 $ .15
2 BASIC PROFIT PER PREFERRED SHARE (**) $ .00 $ .15
3 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00
4 CONTINUING OPERATING PROFIT PER COMMON
SHARE (**) $ .02 $ .14
5 EFFECT OF DISCONTINUED OPERATION ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
7 EFFECT OF CHANGES IN ACCOUNTING POLICIES ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
8 CARRYING VALUE PER SHARE $ .08 $ 2.51
9 CASH DIVIDEND ACCUMULATED PER SHARE $ .41 $ .00
10 DIVIDEND IN SHARES PER SHARE .10 shares .00 shares
11 MARKET PRICE TO CARRYING VALUE 3.34 times 2.53 times
12 MARKET PRICE TO BASIC PROFIT PER ORDINARY
SHARE (**) 19.97 times 44.61 times
13 MARKET PRICE TO BASIC PROFIT PER PREFERRED
SHARE (**) .00 times 44.32 times
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(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE
MONTHS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
FINANCIAL STATEMENT NOTES (1)
CONSOLIDATED
Final Printing
-------------------------------------------------------------------------------
CONSOLIDATED FINANCIAL STATEMENTS - BREAKDOWN OF MAIN CONCEPTS -
LINE S53 MEXICAN PESOS LIABILITIES. THIS CAPTION INCLUDES, IN THE THIRD
QUARTER OF 2004, LIABILITIES IN FOREIGN CURRENCY (TAXES PAYABLE) FOR AN
AMOUNT OF PS.40,536, WHICH CANNOT BE PRESENTED IN S 52 (FOREIGN CURRENCY
LIABILITIES) SINCE THE SYSTEM DOES NOT ALLOW A RELATED VALIDATION WITH
ANNEX 5 (ANALYSIS OF CREDITS).
STATEMENT OF CHANGES - ANALYSIS OF MAJOR CONCEPTS
LINE C22 "INCREASE (DECREASE) IN OTHER LIABILITIES" INCLUDES PS.124,398 OF
NET ASSETS AND LIABILITIES RELATED TO THE CUMULATIVE EFFECT OF
CONSOLIDATING INNOVA BEGINNING APRIL 1, 2004.
LINE C26 "OTHER FINANCING" INCLUDES PS.4,406,922 OF STOCK MARKET CREDITS,
PS.1,470,412 OF CAPITAL LEASE ABLIGATION, AND PS.(1,408,878) OF MINORITY
INTEREST RELATED TO THE CUMULATIVE EFFECT OF CONSOLIDATING INNOVA BEGINNING
APRIL 1, 2004.
LINE C33 "CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES" INCLUDES PS.(920,816)
OF STOCK DIVIDENDS, PS.578,478 OF RESALE OF SHARES REPURCHASED,
PS.(738,621) OF REPURCHASE OF SHARES, AND PS.128,498 OF ADDITIONAL PAID-IN
CAPITAL.
LINE C39 "OTHER ITEMS" INCLUDES PS.(2,570,233) OF PROPERTY AND EQUIPMENT,
PS.(882,247) OF CANCELLATION OF DTH GUARANTEE, PS.417,471 OF ACCOUNTS WITH
AFFILIATES, AND PS.(81,451) OF DEFERRED AND OTHER ASSETS, RELATED TO THE
CUMULATIVE EFFECT OF CONSOLIDATING INNOVA BEGINNING APRIL 1, 2004.
THESE CLASSIFICATIONS WERE MADE AS DISCLOSED ABOVE DUE TO THE FACT THAT THE
CURRENT FORMAT FOR THE STATEMENT OF CHANGES IN FINANCIAL POSITION IS
RESTRICTED TO CERTAIN STANDARD CONCEPTS.
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(1) THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT
AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER
CONCEPTS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
ANALYSIS OF PAID CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
CONSOLIDATED
Final Printing
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CAPITAL STOCK
NUMBER OF SHARES (Thousands of Mexican Pesos)
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NOMINAL VALID FIXED VARIABLE FREE
SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE
-----------------------------------------------------------------------------------------------------------------------------------
A 0 114,646,387,740 114,646,387,740 852,636
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B 0 54,322,967,059 54,322,967,059 411,974
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D 0 86,422,836,826 86,422,836,826 629,782
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L 0 86,422,836,826 86,422,836,826 629,782
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TOTAL 341,815,028,451 0 255,392,191,625 86,422,836,826 2,524,174 0
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TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE
THE INFORMATION WAS SENT.
341,815,028,451
SHARES REPRESENTED BY:
CPO's : 117 SHARES (25 SERIES A, 22 SERIES B, 35 SERIES D AND 35 SERIES L)
UNITS : 0
ADRS's : 0
GDRS's : 0
ADS's : 0
GDS's : TWENTY CPO's
SHARE REPURCHASE
MARKET VALUE OF THE SHARE
NUMBER OF AT REPURCHASE AT END OF THE
SERIES SHARES AVERAGE PRICE QUARTER PRICE
--------------------------------------------------------------------------------
A 10,089,856,435 0.18293 0.25598
B 5,946,715,737 0.18293 0.25598
D 5,710,884,889 0.18293 0.25598
L 5,710,884,889 0.18293 0.25598
NOTES:
THE TABLE ABOVE REFLECTS OUTSTANDING SHARES PLUS THE SHARES
REPURCHASED REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE
NOTE 5 TO CONSOLIDATED FINANCIAL STATEMENTS.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
GRUPO TELEVISA, S.A.
DECLARATION OF THE REGISTRANT'S OFFICERS, RESPONSIBLE FOR THE INFORMATION.
WE HEREBY DECLARE THAT, TO THE EXTENT OF OUR FUNCTIONS, WE PREPARED
THE INFORMATION RELATED TO THE REGISTRANT CONTAINED IN THIS QUARTERLY
REPORT, AND BASED ON OUR KNOWLEDGE, THIS INFORMATION FAIRLY PRESENTS
THE REGISTRANT'S CONDITION. WE ALSO DECLARE THAT WE ARE NOT AWARE OF
ANY RELEVANT INFORMATION WHICH HAS BEEN OMITTED OR UNTRUE IN THIS
QUARTERLY REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY
BE MISLEADING TO INVESTORS.
--------------------------------- ----------------------------------
EMILIO AZCARRAGA JEAN SALVI FOLCH VIADERO
PRESIDENT AND CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
OFFICER
MEXICO, D.F., OCTOBER 21, 2004
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ANNEX 1
CONSOLIDATED
Final Printing
-------------------------------------------------------------------------------
MEXICO CITY, D.F., OCTOBER 21, 2004 - GRUPO TELEVISA, S.A. (NYSE:TV; BMV:
TLEVISA CPO) TODAY ANNOUNCED RESULTS FOR THE THIRD QUARTER 2004. THE
RESULTS HAVE BEEN PREPARED IN ACCORDANCE WITH MEXICAN GAAP AND ARE ADJUSTED
IN MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF SEPTEMBER 30, 2004.
AS DESCRIBED BELOW, EFFECTIVE APRIL 1, 2004, WE ADOPTED THE GUIDELINES OF
THE FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46 IN
ACCORDANCE WITH MEXICAN GAAP BULLETIN A-8. THEREFORE, THIRD QUARTER 2003
RESULTS DO NOT INCLUDE SKY MEXICO.
THIRD QUARTER 2004 RESULTS INCLUDE SKY MEXICO. EFFECTIVE APRIL 1, 2004, WE
ADOPTED THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD
INTERPRETATION NO. 46 "CONSOLIDATION OF VARIABLE INTEREST ENTITIES" (FIN
46) IN ACCORDANCE WITH MEXICAN GAAP BULLETIN A-8 "SUPPLEMENTARY APPLICATION
OF INTERNATIONAL ACCOUNTING STANDARDS." BEFORE ADOPTING FIN 46, WE
ACCOUNTED FOR OUR INVESTMENT IN SKY MEXICO BY APPLYING THE EQUITY METHOD,
AND RECOGNIZED EQUITY IN LOSSES IN EXCESS OF OUR INVESTMENT UP TO THE
AMOUNT OF THE GUARANTEES MADE BY US IN CONNECTION WITH CERTAIN CAPITAL
LEASE OBLIGATIONS OF SKY MEXICO.
THIRD QUARTER 2003 RESULTS DO NOT INCLUDE SKY MEXICO. FOR FURTHER
INFORMATION, SEE "PRO FORMA RESULTS BY BUSINESS SEGMENTS."
NET SALES
CONSOLIDATED NET SALES INCREASED 29.1% TO PS.7,630.3 MILLION IN THE THIRD
QUARTER OF 2004 FROM PS.5,910.8 MILLION IN THE THIRD QUARTER OF 2003. THIS
INCREASE REFLECTS: I) THE CONSOLIDATION OF THE NET SALES FROM SKY MEXICO;
AND II) REVENUE GROWTH IN ALL OF OUR BUSINESS SEGMENTS. ON A PRO FORMA
BASIS, INCLUDING SKY MEXICO, NET SALES INCREASED 12.9%.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
CONSOLIDATED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
INCREASED 44.3% TO PS.2,779.2 MILLION IN THE THIRD QUARTER OF 2004 COMPARED
WITH PS.1,925.5 MILLION REPORTED IN THE LAST YEAR'S THIRD QUARTER.
CONSOLIDATED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN
INCREASED TO 36.4% FROM 32.6% IN THE SAME PERIOD OF 2003, THE HIGHEST
MARGIN EVER REPORTED IN ANY THIRD QUARTER IN THE COMPANY'S HISTORY. ON A
PRO FORMA BASIS, INCLUDING SKY MEXICO, OPERATING INCOME BEFORE DEPRECIATION
AND AMORTIZATION GREW 24.4%. ADDITIONALLY, OPERATING INCOME INCREASED
44.3%.
THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS OF PS.601.7
MILLION AND PS.416.7 MILLION IN THE THIRD QUARTER OF 2004 AND 2003,
RESPECTIVELY.
NET INCOME
THE COMPANY GENERATED NET INCOME OF PS.1,437.5 MILLION IN THE THIRD QUARTER
OF 2004 COMPARED TO NET INCOME OF PS.720.7 MILLION IN LAST YEAR'S THIRD
QUARTER. THE NET INCREASE OF PS.716.8 MILLION REFLECTS PRIMARILY: I) A
PS.853.7 MILLION INCREASE IN OPERATING INCOME BEFORE DEPRECIATION AND
AMORTIZATION; II) A PS.140.8 MILLION DECREASE IN OTHER EXPENSE; AND III) A
PS.729.3 MILLION INCREASE IN EQUITY INCOME OF AFFILIATES. THESE FAVORABLE
CHANGES WERE PARTIALLY OFFSET BY: I) A PS.479.5 MILLION INCREASE IN
INTEGRAL COST OF FINANCING; II) A PS.272.2 MILLION INCREASE IN INCOME
TAXES; III) A PS.62.5 MILLION INCREASE IN MINORITY INTEREST; AND IV) A
PS.7.8 MILLION INCREASE IN RESTRUCTURING AND NON-RECURRING CHARGES.
TELEVISION BROADCASTING
THE RECORD THIRD-QUARTER 11.1% INCREASE IN SALES TO PS.4,304.8 MILLION AND
PS.3,874.1 MILLION FOR THE THIRD QUARTER OF 2004 AND 2003, RESPECTIVELY,
WAS ATTRIBUTABLE TO FOUR FACTORS: I) AN INCREASE OF ADVERTISING TIME SOLD,
DRIVEN MAINLY BY AN OVERALL PICK-UP IN THE MEXICAN ECONOMY; II) THE
BROADCAST OF THE OLYMPIC GAMES, WHICH GENERATED REVENUES OF APPROXIMATELY
PS.262 MILLION; III) THE COPA AMERICA TRANSMISSION; AND IV) A 12.3%
INCREASE IN LOCAL SALES.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 21.2% TO A
RECORD THIRD-QUARTER OF PS.2,019.6 MILLION IN THE THIRD QUARTER OF 2004
FROM PS.1,666.9 MILLION REPORTED IN THE SAME PERIOD OF 2003, ATTRIBUTABLE
TO HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY A 3.8% INCREASE IN COST OF
SALES AND A 2.0% INCREASE IN OPERATING EXPENSES, REFLECTING MAINLY THE
PRODUCTION AND TRANSMISSION COSTS OF THE OLYMPICS OF APPROXIMATELY PS.177.1
MILLION. AS A RESULT, OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
MARGIN INCREASED TO A THIRD-QUARTER RECORD OF 46.9% COMPARED WITH 43.0%
REPORTED IN LAST YEAR'S THIRD QUARTER.
PROGRAMMING FOR PAY TELEVISION
THE 14.6% INCREASE IN SALES (PS.210.6 MILLION AND PS.183.8 MILLION FOR THE
THIRD QUARTER OF 2004 AND 2003, RESPECTIVELY), RESULTED FROM HIGHER
REVENUES FROM SIGNALS SOLD TO PAY TELEVISION SYSTEMS AND HIGHER ADVERTISING
SALES IN MEXICO. THESE INCREASES WERE PARTIALLY OFFSET BY LOWER REVENUES
FROM SIGNALS SOLD TO PAY TELEVISION SYSTEMS IN SPAIN.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 72.2%
(PS.93.5 MILLION AND PS.54.3 MILLION FOR THE THIRD QUARTER OF 2004 AND
2003, RESPECTIVELY), DUE TO INCREASED SALES AND LOWER COST OF SALES AND
OPERATING EXPENSES, WHICH INCLUDED A LOWER PROVISION FOR DOUBTFUL TRADE
ACCOUNTS.
PROGRAMMING LICENSING
THE 7.9% INCREASE IN SALES (PS.447.2 MILLION AND PS.414.6 MILLION FOR THE
THIRD QUARTER OF 2004 AND 2003, RESPECTIVELY), IS ATTRIBUTABLE TO HIGHER
ROYALTIES PAID TO THE COMPANY BY UNIVISION UNDER THE UNIVISION PROGRAM
LICENSE AGREEMENT, WHICH AMOUNTED TO U.S.$25.7 MILLION, AND BY HIGHER
EXPORT SALES TO LATIN AMERICA, EUROPE, ASIA AND AFRICA. THESE INCREASES
WERE PARTIALLY OFFSET BY A TRANSLATION EFFECT OF FOREIGN-CURRENCY
DENOMINATED SALES, WHICH AMOUNTED TO PS.5.2 MILLION.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 15.9%
(PS.154.3 MILLION AND PS.133.1 MILLION FOR THE THIRD QUARTER OF 2004 AND
2003, RESPECTIVELY), REFLECTING HIGHER SALES THAT WERE PARTIALLY OFFSET BY
HIGHER COST OF SALES AND OPERATING EXPENSES.
PUBLISHING
THE 9.6% INCREASE IN SALES (PS.511.5 MILLION AND PS.466.6 MILLION FOR THE
THIRD QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER
MAGAZINE CIRCULATION AND ADVERTISING PAGES SOLD BOTH IN MEXICO AND ABROAD.
THESE INCREASES WERE PARTIALLY OFFSET BY A TRANSLATION EFFECT OF
FOREIGN-CURRENCY DENOMINATED SALES, WHICH AMOUNTED TO PS.23.9 MILLION.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 15.0%
(PS.102.1 MILLION AND PS.88.8 MILLION FOR THE THIRD QUARTER OF 2004 AND
2003, RESPECTIVELY), REFLECTING HIGHER SALES THAT WERE PARTIALLY OFFSET BY
HIGHER COST OF SALES AND OPERATING EXPENSES.
PUBLISHING DISTRIBUTION
THE 9.4% INCREASE IN SALES (PS.515.9 MILLION AND PS.471.5 MILLION FOR THE
THIRD QUARTER AND 2003, RESPECTIVELY), RESULTED FROM HIGHER DISTRIBUTION
SALES ABROAD AND HIGHER CIRCULATION OF MAGAZINES PUBLISHED BY THE COMPANY
IN MEXICO AND ABROAD. THESE INCREASES WERE PARTIALLY OFFSET BY A LOWER
CIRCULATION OF MAGAZINES PUBLISHED BY THIRD PARTIES IN MEXICO, AS WELL AS
BY THE TRANSLATION EFFECT OF FOREIGN-CURRENCY DENOMINATED SALES, WHICH
AMOUNTED TO PS.47.4 MILLION.
OPERATING LOSSES BEFORE DEPRECIATION AND AMORTIZATION INCREASED TO PS.7.3
MILLION IN THE THIRD QUARTER OF 2004 COMPARED WITH PS.0.2 MILLION IN LAST
YEAR'S THIRD QUARTER. THIS INCREASE REFLECTS HIGHER COST OF SALES AND
OPERATING EXPENSES, PARTIALLY OFFSET BY HIGHER SALES.
SKY MEXICO
THE 18.7% INCREASE IN SALES (PS.1,162.0 MILLION AND PS.979.0 MILLION FOR
THE THIRD QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS MAINLY ATTRIBUTABLE
TO TWO FACTORS: I) A 14.1% GROWTH OF OUR SUBSCRIBER BASE WHICH AS OF
SEPTEMBER 30, 2004 REACHED 942,500 GROSS ACTIVE SUBSCRIBERS, INCLUDING
54,800 COMMERCIAL SUBSCRIBERS, COMPARED WITH 826,100 GROSS ACTIVE
SUBSCRIBERS, INCLUDING 46,900 COMMERCIAL SUBSCRIBERS AS OF SEPTEMBER 30,
2003; AND II) THE ELIMINATION OF THE 10% EXCISE TAX ON TELECOMMUNICATIONS
SERVICES.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 37.2% TO
PS.423.2 MILLION IN THE THIRD QUARTER OF 2004 COMPARED WITH PS.308.4
MILLION IN LAST YEAR'S THIRD QUARTER, WHICH REFLECT HIGHER SALES THAT WERE
PARTIALLY OFFSET BY HIGHER COST OF SALES, AND OPERATING EXPENSES. OPERATING
INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN INCREASED TO 36.4% IN
THE THIRD QUARTER OF 2004 FROM 31.5% REPORTED IN THE SAME PERIOD OF LAST
YEAR.
CABLE TELEVISION
THE 6.7% INCREASE IN SALES TO PS.265.2 MILLION IN THE THIRD QUARTER OF 2004
COMPARED WITH PS.248.5 MILLION IN LAST YEAR'S THIRD QUARTER, WAS PRIMARILY
ATTRIBUTABLE TO THE ELIMINATION OF THE 10% EXCISE TAX ON TELECOMMUNICATIONS
SERVICES, AS WELL AS HIGHER ADVERTISING SALES AND BROADBAND SUBSCRIPTION
FEES.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION DECREASED 13.0% TO
PS.65.8 MILLION IN THE THIRD QUARTER OF 2004 COMPARED WITH PS.75.6 MILLION
IN LAST YEAR'S THIRD QUARTER, REFLECTING HIGHER COST OF SALES DUE TO HIGHER
PROGRAMMING AND INSTALLATION COST AND HIGHER OPERATING EXPENSES DUE TO AN
INCREASE IN ADVERTISING EXPENSES, THAT WERE PARTIALLY OFFSET BY HIGHER
SALES.
DUE TO A CHANGE IN OUR SUBSCRIBER'S CANCELLATION POLICY, THE SUBSCRIBER
BASE DECREASED TO APPROXIMATELY 340,600, OF WHICH MORE THAN 74,600 HAD
DIGITAL SERVICE AS OF SEPTEMBER 30, 2004.
RADIO
RADIO SALES INCREASED 28.4% TO PS.76.0 MILLION COMPARED WITH PS.59.2
MILLION IN LAST YEAR'S THIRD QUARTER, DUE TO HIGHER ADVERTISING TIME SOLD,
WHICH WAS MAINLY DRIVEN BY OUR NEWSCASTS AND SPORTS PROGRAMMING.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION INCREASED 86.2% TO
PS.5.4 MILLION COMPARED WITH PS.2.9 MILLION REPORTED IN THE SAME PERIOD A
YEAR AGO. THIS INCREASE WAS ATTRIBUTABLE TO HIGHER SALES AND WAS PARTIALLY
OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES.
OTHER BUSINESSES
THE 52.3% REVENUE INCREASE (PS.308.5 MILLION AND PS.202.6 MILLION FOR THE
THIRD QUARTER OF 2004 AND 2003, RESPECTIVELY), WAS RELATED TO HIGHER SALES
IN THE DISTRIBUTION OF FEATURE FILMS AND INTERNET BUSINESSES, BUT PARTIALLY
OFFSET BY LOWER SALES IN THE SPORTING BUSINESS.
OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION DECREASED TO PS.48.0
MILLION FROM PS.74.4 MILLION IN LAST YEAR'S COMPARABLE PERIOD. THIS
FAVORABLE VARIANCE WAS LED BY HIGHER SALES AND LOWER OPERATING EXPENSES,
WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES.
INTERSEGMENT SALES
INTERSEGMENT SALES FOR THE THIRD QUARTER OF 2004 AND 2003, AMOUNTED TO
PS.209.4 MILLION AND PS.211.7 MILLION, RESPECTIVELY.
CORPORATE EXPENSES
CORPORATE EXPENSES FOR THE THIRD QUARTER OF 2004 AND 2003, AMOUNTED TO
PS.35.9 MILLION AND PS.36.8 MILLION, RESPECTIVELY.
DISPOSED OPERATIONS
THE RESULTS OF OPERATIONS OF THE COMPANY'S NATIONWIDE PAGING AND DUBBING
BUSINESSES ARE PRESENTED AS DISPOSED OPERATIONS.
SALES OF DISPOSED OPERATIONS IN THE THIRD QUARTER OF 2004 AMOUNTED TO
PS.38.0 MILLION AS COMPARED TO PS.69.4 MILLION IN LAST YEAR'S THIRD
QUARTER.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION OF DISPOSED
OPERATIONS AMOUNTED TO PS.6.5 MILLION IN THE THIRD QUARTER OF 2004 AS
COMPARED TO PS.15.3 MILLION IN LAST YEAR'S THIRD QUARTER.
NON-OPERATING RESULTS
EFFECTIVE APRIL 1, 2004, WE BEGAN CONSOLIDATING SKY MEXICO INTO OUR
CONSOLIDATED FINANCIAL STATEMENTS. THEREFORE, THIRD QUARTER 2003 RESULTS DO
NOT INCLUDE SKY MEXICO.
INTEGRAL COST OF FINANCING
INTEGRAL COST OF FINANCING INCREASED BY PS.479.5 MILLION TO PS.517.6
MILLION IN THE THIRD QUARTER OF 2004 FROM PS.38.1 MILLION IN THE THIRD
QUARTER OF 2003. THIS INCREASE REFLECTS: I) AN UNFAVORABLE PS.205.4 MILLION
CHANGE RESULTING FROM A NET FOREIGN EXCHANGE LOSS COMPARED TO A NET FOREIGN
EXCHANGE GAIN, RELATED TO THE 1.22% APPRECIATION OF THE MEXICAN PESO
AGAINST THE U.S. DOLLAR DURING THE THIRD QUARTER OF 2004 COMPARED TO A
5.46% DEPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR DURING THE
THIRD QUARTER OF 2003; II) A PS.263.2 MILLION INCREASE IN INTEREST EXPENSE,
PRIMARILY AS A RESULT OF AN INCREASE IN THE AVERAGE AMOUNT OF OUR DEBT,
RESULTING FROM THE CONSOLIDATION OF SKY MEXICO'S DEBT; AND III) A PS.25.8
MILLION DECREASE IN INTEREST INCOME REFLECTING SKY MEXICO'S CAPITALIZATION
IN SEPTEMBER 2003 OF ALL AMOUNTS DUE TO US IN CONNECTION WITH CERTAIN
FINANCING PROVIDED TO THIS JOINT VENTURE, WHICH WAS PARTIALLY OFFSET BY AN
INCREASE IN INTEREST INCOME IN CONNECTION WITH A HIGHER AVERAGE AMOUNT OF
TEMPORARY INVESTMENTS DURING THE THIRD QUARTER OF 2004. THESE UNFAVORABLE
VARIANCES WERE OFFSET BY A PS.14.9 MILLION INCREASE IN GAIN FROM MONETARY
POSITION PRIMARILY AS A RESULT OF A HIGHER NET LIABILITY MONETARY POSITION,
AS WELL AS A HIGHER INFLATION IN THE THIRD QUARTER OF 2004 (1.72%) COMPARED
TO THE THIRD QUARTER OF 2003 (1.04%).
RESTRUCTURING AND NON-RECURRING CHARGES
RESTRUCTURING AND NON-RECURRING CHARGES INCREASED BY PS.7.8 MILLION, OR
17.8%, TO PS.51.6 MILLION FOR THE THIRD QUARTER OF 2004 AS COMPARED TO
PS.43.8 MILLION FOR THE THIRD QUARTER OF 2003. THIS INCREASE PRIMARILY
REFLECTS RESTRUCTURING CHARGES IN CONNECTION WITH WORK FORCE REDUCTIONS.
OTHER EXPENSE-NET
OTHER EXPENSE-NET DECREASED BY PS.140.8 MILLION, OR 66.0%, TO PS.72.4
MILLION FOR THE THIRD QUARTER OF 2004 AS COMPARED TO PS.213.2 MILLION FOR
THE THIRD QUARTER OF 2003. THIS DECREASE PRIMARILY REFLECTS A REDUCTION IN
GOODWILL AMORTIZATION AS WE CEASED AMORTIZING THIS INTANGIBLE ASSET
BEGINNING JANUARY 1, 2004 IN ACCORDANCE WITH MEXICAN GAAP BULLETIN B-7
RELATED TO BUSINESS ACQUISITIONS, AS WELL AS A REDUCTION IN DONATIONS AND A
DECREASE IN LOSS ON DISPOSITION OF FIXED ASSETS. THIS DECREASE IN OTHER
EXPENSE WAS PARTIALLY OFFSET BY A GAIN ON DISPOSITION OF OUR REMAINING
MINORITY INTEREST IN A DTH VENTURE IN SPAIN IN THE THIRD QUARTER OF 2003.
INCOME TAX
INCOME TAX INCREASED BY PS.272.2 MILLION, OR 166.2%, TO PS.436.0 MILLION
FOR THE THIRD QUARTER OF 2004 FROM PS.163.8 MILLION FOR THE THIRD QUARTER
OF 2003. THIS INCREASE REFLECTS AN INCREASED INCOME TAX BASE FOR 2004
COMPARED WITH 2003, AS WELL AS AN INCREASE IN OUR EFFECTIVE INCOME TAX
RATE.
EQUITY IN RESULTS OF AFFILIATES
EQUITY IN RESULTS OF AFFILIATES INCREASED BY PS.729.3 MILLION TO AN EQUITY
IN INCOME OF AFFILIATES OF PS.403.3 MILLION FOR THE THIRD QUARTER OF 2004
COMPARED TO AN EQUITY IN LOSSES OF AFFILIATES OF PS.326.0 MILLION IN THE
THIRD QUARTER OF 2003. THIS INCREASE PRIMARILY REFLECTS: I) THE REVERSAL OF
PREVIOUS RESERVES OF APPROXIMATELY PS.360.0 MILLION PESOS DUE TO RELEASE OF
THE COMPANY FROM ITS PAS 6B SATELLITE TRANSPONDER GUARANTEE IN CONNECTION
WITH SKY MULTI-COUNTRY PARTNERS IN OCTOBER 2004; II) THE ABSENCE OF EQUITY
LOSS OF SKY MEXICO; III) A REDUCTION IN OUR EQUITY LOSS OF DTH TECHCO
PARTNERS; AND IV) AN INCREASE IN OUR EQUITY INCOME OF UNIVISION.
MINORITY INTEREST
MINORITY INTEREST INCREASED BY PS.62.5 MILLION TO PS.65.7 MILLION IN THE
THIRD QUARTER OF 2004 AS COMPARED TO PS.3.2 MILLION IN THE THIRD QUARTER OF
2003. THIS INCREASE PRIMARILY REFLECTS THE PORTION OF NET INCOME
ATTRIBUTABLE TO THE INTEREST HELD BY THIRD PARTIES IN THE SKY MEXICO
BUSINESS BEGINNING THE SECOND QUARTER OF 2004.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES AND INVESTMENTS
IN THE THIRD QUARTER OF 2004, WE INVESTED APPROXIMATELY U.S.$48.6 MILLION
IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES, OF WHICH
APPROXIMATELY U.S.$8.5 AND U.S.$9.3 MILLION ARE RELATED TO OUR CABLE
TELEVISION AND SKY MEXICO SEGMENTS, RESPECTIVELY. ADDITIONALLY, WE INVESTED
APPROXIMATELY U.S.$1.8 MILLION IN LONG-TERM LOANS MADE TO OUR LATIN
AMERICAN DTH JOINT VENTURES.
DEBT
AS OF SEPTEMBER 30, 2004, OUR CONSOLIDATED LONG-TERM PORTION OF DEBT
AMOUNTED TO PS.17,088.7 MILLION, INCLUDING PS.4,421.6 MILLION FROM SKY
MEXICO WHICH IS NOT GUARANTEED BY THE COMPANY, AND OUR CONSOLIDATED CURRENT
PORTION OF DEBT WAS PS.2,406.6 MILLION. ADDITIONALLY, AS OF SEPTEMBER 30,
2004, SKY MEXICO HAD LONG-TERM AND CURRENT PORTIONS OF A CAPITAL LEASE
OBLIGATION TOTALING PS.1,372.8 MILLION AND PS.70.3 MILLION, RESPECTIVELY.
AS OF SEPTEMBER 30, 2003, OUR CONSOLIDATED LONG-TERM PORTION OF DEBT
AMOUNTED TO PS.15,233.9 MILLION, AND OUR CONSOLIDATED CURRENT PORTION OF
DEBT WAS PS.298.6 MILLION.
ON SEPTEMBER 8, 2004, STANDARD & POOR'S RATINGS SERVICES RAISED TELEVISA'S
LOCAL CURRENCY CORPORATE CREDIT RATING TO "BBB" FROM "BBB-" AND AFFIRMED
ITS OUTLOOK AT STABLE. STANDARD & POOR'S ALSO AFFIRMED TELEVISA'S FOREIGN
CURRENCY CORPORATE CREDIT RATING AT "BBB-/STABLE", WHICH REFLECTS THE
FOREIGN CURRENCY SOVEREIGN RATING ON THE UNITED MEXICAN STATES.
IN OCTOBER 2004, WE OBTAINED A COMMITTED CREDIT FACILITY FOR A SEVEN AND A
HALF-YEAR LOAN WITH A MEXICAN BANK FOR AN AGGREGATE PRINCIPAL AMOUNT OF $2
BILLION PESOS. NET PROCEEDS WILL BE USED TO REFINANCE OUR $200 MILLION
DOLLAR BOND DUE IN AUGUST 2005. WITH THIS TRANSACTION, TELEVISA'S FOREIGN
CURRENCY DENOMINATED DEBT EXPOSURE WILL BE REDUCED FROM 70% TO 59%.
TELEVISION RATINGS AND AUDIENCE SHARE
NATIONAL URBAN RATINGS AND AUDIENCE SHARE REPORTED BY IBOPE CONFIRM THAT IN
THE THIRD QUARTER OF 2004 TELEVISA CONTINUE TO DELIVER STRONG RATINGS AND
AUDIENCE SHARES. DURING WEEKDAY PRIME TIME (19:00 TO 23:00 - MONDAY TO
FRIDAY), AUDIENCE SHARE AMOUNTED TO 70.2%; IN PRIME TIME (16:00 TO 23:00 -
MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 69.6%; AND IN SIGN-ON TO
SIGN-OFF (6:00 TO 24:00 - MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO
71.7%.
DURING THE 2004 SUMMER OLYMPIC GAMES, TELEVISA ACHIEVED AN AVERAGE OF 67.9%
AUDIENCE SHARE, REFLECTING OUR DOMINANT POSITION IN BROADCASTING MAJOR
SPORTING EVENTS. OUR PROGRAM IN PRIME-TIME "LA JUGADA OLIMPICA" WAS THE
MOST WATCHED SPORTS PROGRAM IN MEXICO DURING THE OLYMPICS, ACHIEVING THE
HIGHEST NUMBER OF SPORTS VIEWERS DURING THE EVENT.
OUTLOOK FOR 2004
WE ARE RAISING OUR GUIDANCE FOR THE YEAR. WE NOW EXPECT OUR TELEVISION
BROADCASTING REVENUE TO INCREASE OVER 5.5%. IN ADDITION, WE REMAIN
COMMITTED TO KEEPING COSTS AND EXPENSES OF OUR TELEVISION BROADCASTING
SEGMENT FLAT DURING THE YEAR, DESPITE THE PRODUCTION AND TRANSMISSION OF
THE OLYMPIC GAMES. THEREFORE, WE EXPECT OUR TELEVISION BROADCASTING
SEGMENT'S OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION MARGIN TO
EXCEED 45%.
GRUPO TELEVISA, S.A. IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING
WORLD, AND A MAJOR PLAYER IN THE INTERNATIONAL ENTERTAINMENT BUSINESS. IT
HAS INTERESTS IN TELEVISION PRODUCTION AND BROADCASTING, PROGRAMMING FOR
PAY TELEVISION, INTERNATIONAL DISTRIBUTION OF TELEVISION PROGRAMMING,
DIRECT-TO-HOME SATELLITE SERVICES, PUBLISHING AND PUBLISHING DISTRIBUTION,
CABLE TELEVISION, RADIO PRODUCTION AND BROADCASTING, PROFESSIONAL SPORTS
AND SHOW BUSINESS PROMOTIONS, FEATURE FILM PRODUCTION AND DISTRIBUTION, AND
THE OPERATION OF A HORIZONTAL INTERNET PORTAL. GRUPO TELEVISA ALSO HAS AN
UNCONSOLIDATED EQUITY STAKE IN UNIVISION, THE LEADING SPANISH-LANGUAGE
TELEVISION COMPANY IN THE UNITED STATES.
THIS ANNEX CONTAINS FORWARD-LOOKING STATEMENTS REGARDING THE COMPANY'S
RESULTS AND PROSPECTS. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THESE
STATEMENTS. THE FORWARD-LOOKING STATEMENTS IN THIS ANNEX SHOULD BE READ IN
CONJUNCTION WITH THE FACTORS DESCRIBED IN "ITEM 3. KEY INFORMATION -
FORWARD-LOOKING STATEMENTS" IN THE COMPANY'S ANNUAL REPORT ON FORM 20-F,
WHICH, AMONG OTHERS, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS MADE IN THIS ANNEX AND IN
ORAL STATEMENTS MADE BY AUTHORIZED OFFICERS OF THE COMPANY. READERS ARE
CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS,
WHICH SPEAK ONLY AS OF THEIR DATES. THE COMPANY UNDERTAKES NO OBLIGATION TO
PUBLICLY UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A
RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2003
GRUPO TELEVISA, S.A.
FINANCIAL STATEMENT NOTES (1)
ANNEX 2
CONSOLIDATED
Final Printing
------------------------------------------------------------------------------
GRUPO TELEVISA, S.A.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS
OF SEPTEMBER 30, 2004, EXCEPT PER SHARE, PER CPO AND PER UDI VALUES)
1. ACCOUNTING POLICIES:
THE CONDENSED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A. (THE
"COMPANY") AND ITS CONSOLIDATED SUBSIDIARIES (COLLECTIVELLY, THE "GROUP"),
AS OF SEPTEMBER 30, 2004 AND 2003, AND FOR THE NINE MONTHS ENDED ON THOSE
DATES, ARE UNAUDITED. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS
(CONSISTING PRINCIPALLY OF NORMAL RECURRING ADJUSTMENTS) NECESSARY FOR A
FAIR PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS HAVE
BEEN INCLUDED THEREIN.
FOR PURPOSES OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS,
CERTAIN INFORMATION AND DISCLOSURES, NORMALLY INCLUDED IN FINANCIAL
STATEMENTS PREPARED IN ACCORDANCE WITH MEXICAN GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ("MEXICAN GAAP"), HAVE BEEN CONDENSED OR OMITTED.
THESE CONDENSED CONSOLIDATED STATEMENTS SHOULD BE READ IN CONJUNCTION WITH
THE GROUP'S CONSOLIDATED AND AUDITED FINANCIAL STATEMENTS AND NOTES THERETO
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002, WHICH INCLUDE, AMONG OTHER
DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE
BEEN APPLIED ON A CONSISTENT BASIS FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2004, EXCEPT FOR THE MATTER DISCUSSED IN THE FOLLOWING PARAGRAPH.
EFFECTIVE JANUARY 1, 2004, IN CONNECTION WITH THE ADOPTION OF MEXICAN
GAAP BULLETIN B-7, "BUSINESS ACQUISITIONS," GOODWILL IS DEEMED AN
INTANGIBLE ASSET WITH AN INDEFINITE USEFUL LIFE, AND ACCORDINGLY, THE GROUP
NO LONGER AMORTIZES GOODWILL EFFECTIVE FROM THAT DATE. BEFORE 2004,
GOODWILL WAS AMORTIZED OVER A PERIOD OF 20 YEARS.
BEGINNING APRIL 1, 2004, THE GROUP BEGAN TO INCLUDE IN ITS
CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS OF
OPERATIONS OF INNOVA, S. DE R.L. DE C.V. ("INNOVA"), A JOINT VENTURE
ENGAGED IN DIRECT-TO-HOME ("DTH") BROADCAST SATELLITE PAY TELEVISION IN
WHICH THE GROUP HAS A 60% INTEREST. INNOVA'S FINANCIALS ARE CONSOLIDATED IN
ACCORDANCE WITH THE GUIDELINES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD
INTERPRETATION NO. 46 ("FIN 46"), "CONSOLIDATION OF VARIABLE INTEREST
ENTITIES," WHICH WAS ADOPTED BY THE GROUP ON APRIL 1, 2004 (SEE NOTE 11).
2. PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT AS OF SEPTEMBER 30, CONSISTED OF:
2004 2003
------------------- ----------------
BUILDINGS Ps. 7,429,588 Ps. 7,206,090
BUILDING IMPROVEMENTS 1,698,394 1,686,414
TECHNICAL EQUIPMENT 14,938,870 10,913,771
FURNITURE AND FIXTURES 598,273 571,419
TRANSPORTATION EQUIPMENT 1,104,180 1,075,077
COMPUTER EQUIPMENT 1,191,247 868,965
------------------- -----------------
26,960,552 22,321,736
ACCUMULATED DEPRECIATION (12,612,290) (10,883,532)
------------------- -----------------
14,348,262 11,438,204
LAND 3,649,947 3,662,834
CONSTRUCTION AND PROJECTS IN PROGRESS 734,878 998,964
------------------- -----------------
Ps. 18,733,087 Ps. 16,100,002
=================== =================
DEPRECIATION CHARGED TO INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2004 AND 2003, WAS PS.1,318,696 AND PS.882,217, RESPECTIVELY.
3. LONG-TERM DEBT SECURITIES:
AS OF SEPTEMBER 30, THE COMPANY'S LONG-TERM DEBT SECURITIES
OUTSTANDING WERE AS FOLLOWS:
2004 2003
--------------------------------------- -----------------------------------
U.S. DOLLAR U.S. DOLLAR
PRINCIPAL PRINCIPAL
AMOUNTS MEXICAN AMOUNTS MEXICAN
LONG-TERM DEBT SECURITIES (THOUSANDS) PESOS (THOUSANDS) PESOS
------------------------------------------------ ----------------- -------------------- --------------- ------------------
11.875% SERIES "B" SENIOR NOTES DUE 2006(A) $ 5,343 Ps. 60,889 $ 5,343 Ps. 61,792
8.625% SENIOR NOTES DUE 2005 (B) 200,000 2,279,200 200,000 2,313,001
8.000% SENIOR NOTES DUE 2011 (C) 300,000 3,418,800 300,000 3,469,501
8.500% SENIOR NOTES DUE 2032 (D) 300,000 3,418,800 300,000 3,469,501
12.875% SENIOR NOTES DUE 2007 (E) 88,000 1,002,848 - -
9.375% SENIOR NOTES DUE 2013 (F) 300,000 3,418,800 - -
----------------- -------------------- --------------- ------------------
$ 1,193,343 13,599,337 $ 805,343 9,313,795
================= ===============
UDI-DENOMINATED NOTES DUE 2007 (G) 3,755,840 3,760,557
-------------------- ------------------
Ps. 17,355,177 Ps. 13,074,352
==================== ==================
(A) INTEREST ON THE SERIES "B" SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS
PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 12.49% PER
ANNUM, AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNSECURED,
UNSUBORDINATED OBLIGATIONS OF THE COMPANY, RANK PARI PASSU IN RIGHT OF
PAYMENT WITH ALL EXISTING AND FUTURE UNSECURED, UNSUBORDINATED
OBLIGATIONS OF THE COMPANY, AND ARE SENIOR IN RIGHT OF PAYMENT TO ALL
FUTURE SUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE EFFECTIVELY
SUBORDINATED TO ALL EXISTING AND FUTURE LIABILITIES OF THE COMPANY'S
SUBSIDIARIES.
(B) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.07% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(C) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.41% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(D) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 8.94% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY.
(E) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 13.54% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNCOLLATERALIZED,
UNSUBORDINATED OBLIGATIONS OF INNOVA AND CONTAIN CERTAIN COVENANTS
RELATING TO INNOVA SIMILAR TO THOSE OF THE SENIOR NOTES DUE 2013.
(F) INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.86% PER ANNUM,
AND IS PAYABLE SEMI-ANNUALLY. THESE SECURITIES ARE UNSECURED AND
UNSUBORDINATED OBLIGATIONS OF INNOVA AND CONTAIN CERTAIN COVENANTS
RELATING TO INNOVA, INCLUDING COVENANTS WITH RESPECT TO: (I)
LIMITATIONS ON ADDITIONAL INDEBTEDNESS; (II) LIMITATIONS ON LIENS;
(III) LIMITATIONS ON SALES AND LEASEBACKS; (IV) LIMITATIONS ON
RESTRICTED PAYMENTS; (V) LIMITATIONS ON ASSETS SALES; AND (VI)
LIMITATIONS ON CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR
TRANSACTIONS. INNOVA MAY, AT ITS OWN OPTION, REDEEM THESE SECURITIES,
IN WHOLE OR IN PART, AT ANY TIME IN OR AFTER SEPTEMBER 2008 AT
REDEMTION PRICES (EXPRESSED IN PERCENTAGES OF THE PRINCIPAL AMOUNT),
PLUS ACCRUED AND UNPAID INTEREST, IF ANY, IN THE RANGE OF 104.6875% TO
100%. ADDITIONALLY, IN OR BEFORE SEPTEMBER 2006, INNOVA MAY, AT ITS
OWN OPTION AND SUBJECT TO CERTAIN REQUIREMENTS, USE THE PROCEEDS FROM
ONE OR MORE QUALIFIED EQUITY OFFERING TO REDEEM UP TO 35% OF THE
AGGREGATE PRINCIPAL AMOUNT OF THESE SENIOR NOTES AT 109.375% OF THEIR
PRINCIPAL AMOUNT, PLUS ACCRUED AND UNPAID INTEREST.
(G) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION"
OR "UDIS") FOR A NOMINAL AMOUNT OF PS.3,000,000, REPRESENTING
1,086,007,800 UDIS, WITH AN ANNUAL INTEREST RATE OF 8.15% AND MATURITY
IN 2007. INTEREST ON THESE NOTES IS PAYABLE SEMI-ANNUALLY. THE BALANCE
AS OF SEPTEMBER 30, 2004 AND 2003 INCLUDES RESTAMENT OF PS.755,840 AND
PS.608,757, RESPECTIVELY. THE UDI VALUE AS OF SEPTEMBER 30, 2004, WAS
OF PS. 3.458391 PER ONE UDI.
THE SENIOR NOTES DUE IN 2005, 2006, 2011 AND 2032 MAY NOT BE REEDEMED
PRIOR TO MATURITY, EXCEPT IN THE EVENT OF CERTAIN CHANGES IN LAW AFFECTING
THE MEXICAN WITHHOLDING TAX TREATMENT OF CERTAIN PAYMENTS ON THE
SECURITIES, IN WHICH CASE THE SECURITIES WILL BE REDEEMABLE, AS A WHOLE BUT
NOT IN PART, AT THE OPTION OF THE COMPANY.
THE SENIOR NOTES DUE IN 2005, 2011 AND 2032 ARE UNSECURED OBLIGATIONS
OF THE COMPANY, RANK EQUALLY IN RIGHT OF PAYMENT WITH ALL EXISTING AND
FUTURE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF THE COMPANY, AND ARE
JUNIOR IN RIGHT OF PAYMENT TO ALL OF THE EXISTING AND FUTURE LIABILITIES OF
THE COMPANY'S SUBSIDIARIES.
THE AGREEMENT OF THE SENIOR NOTES DUE 2005, 2011 AND 2032 CONTAINS
CERTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND ITS RESTRICTED
SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PROGRAMMING FOR PAY
TELEVISION AND PROGRAMMING LICENSING, TO INCUR OR ASSUME LIENS, PERFORM
SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS,
CONSOLIDATIONS AND SIMILAR TRANSACTIONS. SUBSTANTIALLY ALL OF THE SENIOR
NOTES DUE 2005, 2011 AND 2032 ARE REGISTERED WITH THE U.S. SECURITIES AND
EXCHANGE COMMISSION.
EFFECTIVE MARCH 1, 2002, THE GROUP DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF THE PRINCIPAL AMOUNT OF ITS SENIOR NOTES
DUE IN 2011 AND 2032. CONSEQUENTLY, BEGINNING MARCH 2002, ANY FOREIGN
EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT IS
CREDITED OR CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS)
(SEE NOTE 7).
4. CONTINGENCIES:
PAYMENTS TO BE MADE BY CERTAIN MEXICAN COMPANIES IN THE GROUP TO
EMPLOYEES IN CASE OF DISMISSAL AND UNDER CERTAIN CIRCUMSTANCES PROVIDED BY
THE MEXICAN LABOR LAW WILL BE EXPENSED AS INCURRED.
IN JUNE 2003, THE COMPANY WAS NOTIFIED BY THE MEXICAN TAX AUTHORITY OF
A FEDERAL TAX CLAIM MADE AGAINST THE COMPANY FOR APPROXIMATELY PS.960,700,
INCLUDING PENALTIES AND SURCHARGES, FOR AN ALLEGED ASSETS TAX LIABILITY FOR
THE YEAR 1994. THE COMPANY BELIEVES IT HAS MERITORIOUS DEFENSE AGAINST THIS
CLAIM.
THERE ARE VARIOUS LEGAL ACTIONS AND OTHER CLAIMS PENDING AGAINST THE
GROUP INCIDENTAL TO ITS BUSINESSES AND OPERATIONS. IN THE OPINION OF THE
GROUP'S MANAGEMENT, NONE OF THESE PROCEEDINGS WILL HAVE A MATERIAL ADVERSE
EFFECT ON THE GROUP'S FINANCIAL POSITION OR RESULTS OF OPERATIONS.
5. STOCKHOLDERS' EQUITY:
THE MAJORITY STOCKHOLDERS' EQUITY AS OF SEPTEMBER 30, IS ANALYZED AS
FOLLOWS:
2004 2003
----------------------------------- ------------------------------------
NOMINAL PESOS RESTATED PESOS NOMINAL PESOS RESTATED PESOS
---------------- -------------------------------------- ---------------
CAPITAL STOCK ISSUED Ps. 2,524,174 Ps. 9,404,864 Ps. 1,555,065 Ps. 8,153,740
ADDITIONAL PAID-IN CAPITAL 3,841,792 4,006,026 191,412 232,621
LEGAL RESERVE 802,231 1,498,162 622,401 1,312,271
RESERVE FOR REPURCHASE OF SHARES 2,255,655 5,463,090 2,274,863 5,483,196
UNAPPROPRIATED EARNINGS 3,671,071 11,336,505 5,276,914 13,232,576
CUMULATIVE GAIN ON ISSUANCE OF SHARES OF ASSOCIATES 3,486,635 3,760,742 735,027 772,219
CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (2,840,223) (2,197,681) (2,840,223)
ACUMULATED OTHER COMPREHENSIVE LOSS -- (2,730,452) -- (3,160,315)
NET INCOME FOR THE NINE MONTHS -- 2,387,396 2,217,022 2,329,203
SHARES REPURCHASED (5,760,937) (6,123,107) (2,102,135) (2,382,909)
------------------ ----------------
EQUITY Ps. 26,163,003 Ps.23,132,379
================== ================
ON APRIL 16, 2004, THE SHAREHOLDERS OF THE COMPANY APPROVED A DIVIDEND
PAYMENT IN THE AMOUNT OF PS.3,850,000 (NOMINAL), WHICH WAS PAID IN CASH ON
MAY 21 2004, AS FOLLOWS: A DIVIDEND OF PS.1.21982800845 PER CPO, AND A
DIVIDEND OF PS.0.40660933615 PER FORMER SERIES "A" SHARE (NOT IN THE FORM
OF A CPO AND BEFORE THE RECAPITALIZATION).
ON APRIL 16, 2004, THE SHAREHOLDERS OF THE COMPANY APROVED A
RESTRUCTURING OF THE COMPANY'S CAPITAL STOCK ("RECAPITALIZATION"), WHICH
COMPRISES THE FOLLOWING: (I) A STOCK SPLIT IN WHICH EACH OUTSTANDING SHARE
WILL BE DIVIDED INTO 25 SHARES OF THE SAME CLASS; (II) THE CREATION OF A
NEW CLASS OF COMMON OR ORDINARY SHARES, THE SERIES "B" SHARES; (III) A
STOCK DIVIDEND IN THE AMOUNT OF PS.906,114 (NOMINAL), IN THE COMPANY
DISTRIBUTED TO HOLDERS OF OUTSTANDING SHARES, 14 NEW SHARES (OF VARIOUS
CLASSES DEPENDING ON THE CLASS HELD) FOR EVERY 25 SHARES OUTSTANDING AFTER
THE STOCK SPLIT; AND (IV) AN INCREASE IN THE NUMBER OF SHARES REPRESENTED
BY EACH OUSTANDING CPO, FROM THREE SHARES TO 117 SHARES. THE
RECAPITALIZATION INCREASED THE NUMBER OF THE COMPANY'S SHARES BY A FACTOR
OF 39 BUT DID NOT AFFECT THE COMPANY'S TOTAL EQUITY OR DILUTE THE EQUITY
INTEREST OF ANY SHAREHOLDER.
THE FOLLOWING TABLE SUMMARIZES THE EFFECT OF THE STOCK SPLIT AND THE
STOCK DIVIDEND ON A HOLDER OF ONE FORMER SHARE OF EACH CLASS OF THE
COMPANY'S CAPITAL STOCK:
STOCK
BEFORE THE STOCK "SPLIT" DIVIDEND AFTER THE
RECAPITALIZATION (25 PER ONE SHARE) (14 PER 25 SHARES) RECAPITALIZATION
------------------------ -------------------------- -------------------------- -----------------------
ONE "A" SHARE 25 "A" SHARES FOUR "B" SHARES 25 "A" SHARES
FIVE "D" SHARES FOUR "B" SHARES
FIVE "L" SHARES FIVE "D" SHARES
FIVE "L" SHARES
ONE "D" SHARE 25 "D" SHARES NINE "B" SHARES NINE "B" SHARES
FIVE "D" SHARES 30 "D" SHARES
ONE "L" SHARE 25 "L" SHARES NINE "B" SHARES NINE "B" SHARES
FIVE "L" SHARES 30 "L" SHARES
THE NUMBER OF SHARES DISCLOSED IN THESE NOTES REFLECT THE
RECAPITALIZATION OF THE COMPANY'S CAPITAL STOCK, WHICH BECAME EFFECTIVE ON
JULY 26, 2004, THROUGH THE EXCHANGE OF OLD AND NEW SHARES.
AS OF SEPTEMBER 30, 2004, THE NUMBER OF SHARES AUTHORIZED AND ISSUED,
REPURCHASED AND OUTSTANDING IS PRESENTED AS FOLLOWS:
AUTHORIZED
SHARES AND ISSUED REPURCHASED OUTSTANDING
-------------------------- ---------------------- -------------------- ---------------------
SERIES "A" 124,736,244,175 10,089,856,435 114,646,387,740
SERIES "B" 60,269,682,796 5,946,715,737 54,322,967,059
SERIES "D" 92,133,721,715 5,710,884,889 86,422,836,826
SERIES "L" 92,133,721,715 5,710,884,889 86,422,836,826
---------------------- -------------------- ---------------------
369,273,370,401 27,458,341,950 341,815,028,451
====================== ==================== =====================
CPOS 2,239,549,096 83,212,086 2,156,337,010
====================== ==================== ======================
THE COMPANY'S SHARES REPURCHASED, AS WELL AS THEIR NET COST, AS OF
SEPTEMBER 30, 2004, ARE PRESENTED AS A CHARGE TO STOCKHOLDERS' EQUITY AS
FOLLOWS:
A, B, D, AND L SHARES
-----------------------------------------------------
IN THE FORM NOT IN THE
OF CPOS FORM OF CPOS TOTAL NET COST
-------------------------------------------------------------------
REPURCHASE PROGRAM 1,812,634,200 - 1,812,634,200 (378,413)
OWNED BY A COMPANY'S SUBSIDIARY 7,923,179,862 940,533,282 8,863,713,144 (1,757,240)
ACQUIRED BY A COMPANY'S TRUST - 16,781,994,606 16,781,994,606 (3,981,165)
ADVANCE FOR ACQUISITION OF SHARES - - - (6,289)
--------------------------------------------------------------------
9,735,814,062 17,722,527,888 27,458,341,950 (6,123,107)
====================================================================
IN CONNECTION WITH THE COMPANY'S PROGRAM FOR REPURCHASE OF SHARES, IN
THE NINE MONTHS ENDED SEPTEMER 30, 2004, THE COMPANY REPURCHASED
1,813,102,200 SHARES IN THE FORM OF 15,496,600 CPOS IN THE AMOUNT OF
PS.383,354 (PS.379,618 NOMINAL), AND RESOLD 468,000 SHARES IN THE FORM OF
4,000 CPOS IN THE AMOUNT OF PS.99.
IN THE NINE MONTHS ENDED SEPTEMBER 30, 2004, THE GROUP SOLD
4,975,807,356 SHARES, IN THE FORM OF 42,528,268 CPOS, IN THE AMOUNT OF
PS.578,454 (PS.569,028 NOMINAL) IN CONNECTION WITH THE COMPANY'S STOCK
OPTION PLAN.
6. REPURCHASE OF SHARES:
AS OF SEPTEMBER 30, 2004, THE COMPANY MAINTAINS A RESERVE FOR
REPURCHASE OF SHARES, WHICH WAS APPROVED BY THE SHAREHOLDERS OF THE COMPANY
IN PRIOR YEARS BY APPROPRIATING FROM ACCUMULATED EARNINGS THE AMOUNT OF
PS.6,839,388. THIS RESERVE WAS USED IN 1999, 2000 AND 2003 IN THE AMOUNT OF
PS.281,212, PS.628,620 AND PS.466,466, RESPECTIVELY, IN CONNECTION WITH THE
REPURCHASE OF SHARES IN THOSE YEARS.
IN ACCORDANCE WITH THE MEXICAN SECURITIES LAW, ANY AMOUNT OF SHARES
REPURCHASED AND HELD BY THE COMPANY SHOULD BE RECOGNIZED AS A CHARGE TO
STOCKHOLDERS' EQUITY, AND ANY CANCELLATION OF SHARES REPURCHASED SHOULD BE
RECOGNIZED AS A REDUCTION OF THE COMPANY'S CAPITAL STOCK ISSUED FOR AN
AMOUNT PROPORTIONATE TO THE SHARES CANCELLED.
7. INTEGRAL COST OF FINANCING:
INTEGRAL COST OF FINANCING FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSISTED OF:
2004 2003
----------------- -----------------
INTEREST EXPENSE (1) Ps. 1,381,925 Ps. 1,027,830
INTEREST INCOME (463,498) (540,365)
FOREIGN EXCHANGE LOSS (GAIN), NET (2) (20,025) (111,992)
LOSS FROM MONETARY POSITION (3) 106,135 37,945
----------------- -----------------
Ps. 1,044,587 Ps. 413,418
================= =================
(1) INCLUDES RESTATEMENT OF UDIS OF PS.108,492 AND PS.80,783 NET IN 2004
AND 2003, RESPECTIVELY.
(2) NET OF THE GAIN OF PS.103,241 IN 2004 AND OF PS.348,683 IN 2003
RESULTING FROM THE FOREIGN EXCHANGE RESULT ATTRIBUTABLE TO CERTAIN
LONG-TERM DEBT SECURITIES WHICH ARE HEDGED BY THE GROUP'S NET
INVESTMENT IN UNIVISION.
(3) THE GAIN OR LOSS FROM MONETARY POSITION REPRESENTS THE EFFECTS OF
INFLATION, AS MEASURED BY THE NPCI IN THE CASE OF MEXICAN COMPANIES,
OR THE GENERAL INFLATION INDEX OF EACH COUNTRY IN THE CASE OF FOREIGN
SUBSIDIARIES, ON THE MONETARY ASSETS AND LIABILITIES AT THE BEGINNING
OF EACH MONTH. INCLUDES MONETARY LOSS IN 2004 AND 2003 OF PS.126,963
AND PS.97,822, RESPECTIVELY, ARISING FROM TEMPORARY DIFFERENCES OF
NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX.
8. DEFERRED TAXES:
THE DEFERRED INCOME TAX LIABILITY AS OF SEPTEMBER 30, WAS DERIVED
FROM:
2004 2003
---------------- ---------------
ASSETS:
ACCRUED LIABILITIES Ps. 697,293 Ps. 632,485
GOODWILL 833,197 981,452
TAX LOSS CARRYFORWARDS 1,672,058 813,832
ALLOWANCE FOR DOUBTFUL ACCOUNTS 340,284 278,236
CUSTOMER ADVANCES 1,584,721 1,222,331
---------------- --------------
5,127,553 3,928,336
---------------- --------------
LIABILITIES:
INVENTORIES (1,584,755) (1,933,653)
PROPERTY, PLANT AND EQUIPMENT - NET (1,304,696) (1,041,490)
OTHER ITEMS (295,591) (412,872)
INNOVA (1,579,306) (1,267,896)
---------------- ---------------
(4,764,348) (4,655,911)
---------------- ---------------
DEFERRED-INCOME TAX OF MEXICAN COMPANIES 363,205 (727,575)
DEFERRED TAX OF FOREIGN SUBSIDIARIES (370,984) (356,907)
ASSETS TAX 1,295,989 1,643,542
VALUATION ALLOWANCE (2,656,215) (2,203,725)
---------------- ---------------
DEFERRED INCOME TAX LIABILITY (1,368,005) (1,644,665)
EFFECT ON CHANGE OF INCOME TAX RATES 88,779 282,587
---------------- ---------------
DEFERRED TAX LIABILITY OF CONTINUING
OPERATIONS Ps. (1,279,226) Ps. (1,362,078)
================ ===============
9. EXTRAORDINARY ITEMS:
NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2004 AND 2003.
10. DISCONTINUED OPERATIONS:
NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2004 AND 2003.
11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES:
EFFECTIVE APRIL 1, 2004, THE GROUP ADOPTED THE GUIDELINES OF FIN 46,
"CONSOLIDATION OF VARIABLE INTEREST ENTITIES," AS PERMITTED BY MEXICAN GAAP
BULLETIN A-8, "SUPPLEMENTARY APPLICATION OF INTERNATIONAL ACCOUNTING
STANDARDS." FIN 46, WHICH BECAME EFFECTIVE IN 2004, ADDRESSES CONSOLIDATION
BY BUSINESS ENTERPRISES OF VARIABLE INTEREST ENTITIES, OR "VIES". UNDER
PREVIOUS GUIDANCE, A COMPANY GENERALLY INCLUDED ANOTHER ENTITY IN ITS
CONSOLIDATED FINANCIAL STATEMENTS ONLY IF IT CONTROLLED THE ENTITY THROUGH
VOTING INTERESTS. FIN 46 REQUIRES A VARIABLE INTEREST ENTITY TO BE
CONSOLIDATED BY A COMPANY IF THAT COMPANY IS THE "PRIMARY BENEFICIARY" OF
THE ENTITY. THE PRIMARY BENEFICIARY IS SUBJECT TO A MAJORITY OF THE RISK OF
LOSS FROM THE VIES ACTIVITIES, OR IS ENTITLED TO RECEIVE A MAJORITY OF THE
VIES RESIDUAL RETURN, OR BOTH. THE GROUP IDENTIFIED INNOVA AS A VARIABLE
INTEREST ENTITY, AND THE GROUP AS THE PRIMARY BENEFICIARY OF THE INVESTMENT
IN INNOVA, UNDER THE SCOPE OF FIN 46, AND THEREFORE, BEGINNING APRIL 1,
2004, THE GROUP BEGAN TO INCLUDE IN ITS CONSOLIDATED FINANCIAL STATEMENTS
THE ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF INNOVA. BEFORE
ADOPTING FIN 46, THE GROUP ACCOUNTED FOR ITS INVESTMENT IN INNOVA BY
APPLYING THE EQUITY METHOD, AND RECOGNIZED EQUITY IN LOSSES IN EXCESS OF
ITS INVESTMENT UP TO THE AMOUNT OF THE GUARANTEES MADE BY THE GROUP IN
CONNECTION WITH CERTAIN CAPITAL LEASE OBLIGATIONS OF INNOVA.
AS A RESULT OF THIS ACCOUNTING CHANGE, THE GROUP RECOGNIZED AT APRIL
1, 2004, A CONSOLIDATED CUMULATIVE LOSS EFFECT OF PS.1,008,965, NET OF
INCOME TAX IN THE AMOUNT OF PS.298,681, IN ITS CONSOLIDATED STATEMENT OF
INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004, IN CONNECTION WITH
INNOVA'S ACCUMULATED LOSSES NOT RECOGNIZED BY THE GROUP IN 2001, 2002, 2003
AND THE FIRST QUARTER OF 2004.
NO CUMULATIVE EFFECT OF ACCOUNTING CHANGE WAS RECOGNIZED IN INCOME FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2003.
12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED):
THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED SEPTEMBER 30,
2004, ARE AS FOLLOWS:
HISTORICAL NET RESULT (1) RESTATED NET RESULT
---------------------------------------- ------------------------------------
INDEX AT END
QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER
------------------------ --------------------- ----------------- ------------------ ------------------ ----------------
4/03 Ps. 3,596,603 Ps. 1,343,339 106.996 Ps. 3,717,816 Ps. 1,388,613
1/04 472,041 472,041 108.672 480,424 480,424
2/04 933,883 461,560 108.737 949,900 469,476
3/04 2,387,396 1,437,496 110.602 2,387,396 1,437,496
(1) AS REPORTED IN EACH QUARTER.
13. INFORMATION BY SEGMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
AND 2003, WERE AS FOLLOWS:
TOTAL INTERSEGMENT CONSOLIDATED OPERATING
REVENUES REVENUES REVENUES INCOME (LOSS)
--------------- ----------------- ----------------- ------------------
2004:
TELEVISION BROADCASTING Ps. 11,614,433 Ps. 234,019 Ps. 11,380,414 Ps. 4,411,427
PROGRAMING FOR PAY TELEVISION 578,841 105,597 473,244 202,127
PROGRAMING LICENSING 1,401,091 - 1,401,091 519,117
PUBLISHING 1,428,813 1,411 1,427,402 249,391
PUBLISHING DISTRIBUTION 1,449,368 6,096 1,443,272 (29,762)
SKY MEXICO 2,356,308 22,965 2,333,343 481,429
CABLE TELEVISION 818,838 2,295 816,543 87,025
RADIO 198,580 36,500 162,080 (2,130)
OTHER BUSINESSES 1,178,950 77,911 1,101,039 (187,122)
ELIMINATIONS AND CORPORATE EXPENSES
(486,794) (486,794) - (113,701)
---------------- --------------- ---------------- ---------------
CONSOLIDATED TOTAL Ps. 20,538,428 Ps. - Ps. 20,538,428 Ps. 5,617,801
================ =============== ================ ===============
2003:
TELEVISION BROADCASTING Ps. 10,946,251 Ps. 45,610 Ps. 10,900,641 Ps. 3,817,914
PROGRAMING FOR PAY TELEVISION 527,583 43,553 484,030 90,778
PROGRAMING LICENSING 1,296,600 - 1,296,600 436,630
PUBLISHING 1,293,285 1,273 1,292,012 221,327
PUBLISHING DISTRIBUTION 1,252,315 5,110 1,247,205 (9,349)
SKY MEXICO - - - -
CABLE TELEVISION 757,675 4,160 753,515 87,654
RADIO 184,349 36,339 148,010 234
OTHER BUSINESSES 1,061,763 88,133 973,630 (311,184)
ELIMINATIONS AND CORPORATE EXPENSES
(224,178) (224,178) - (117,377)
---------------- --------------- ---------------- ---------------
CONSOLIDATED TOTAL Ps. 17,095,643 Ps. - Ps. 17,095,643 Ps. 4,216,627
================ =============== ================ ===============
14. REFINANCING:
IN MAY 2004, THE COMPANY ENTERED INTO A LONG-TERM CREDIT AGREEMENT
WITH A MEXICAN BANK IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.1,162.5
MILLION, WHICH MATURES IN 2009. THE ANNUAL INTEREST RATE OF THIS
INDEBTEDNESS EQUALS 9.70% AND IS PAYABLE ON A MONTHLY BASIS. THE PROCEEDS
OF THIS LOAN WERE USED BY THE COMPANY TO PREPAY ALL OF THE OUTSTANDING
AMOUNTS OF THE U.S.$100 MILLION SYNDICATED LONG-TERM LOAN, WHICH ORIGINALLY
MATURED IN 2005 AND 2006.
15. DIVESTITURE OF MINORITY INTEREST INVESTMENT:
IN APRIL 2004, THE COMPANY SOLD ITS 30% MINORITY INTEREST IN GRUPO
EUROPRODUCCIONES, S.A., A TELEVISION PROGRAMMING PRODUCER IN SPAIN, IN THE
AGGREGATE AMOUNT OF APPROXIMATELY 7,505 MILLION EUROS (PS.107,029) IN CASH.
AS A RESULT OF THIS DISPOSAL, THE COMPANY RECOGNIZED A NET LOSS OF
APPROXIMATELY 8,030 MILLION EUROS (PS.112,844) AS OTHER EXPENSE IN ITS
CONSOLIDATED STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2004.
16. SUBSEQUENT EVENT:
ON OCTOBER 11, 2004, IN CONJUNCTION WITH A SERIES OF AGREEMENTS
ENTERED INTO BY THE GROUP WITH DIRECTV GROUP, INC. ("DIRECTV") AND NEWS
CORPORATION ("NEWS"), THE GROUP ANNOUNCED, AMONG OTHER MATTERS, THAT (A)
DIRECTV MEXICO SOLD ITS SUBSCRIBER LIST TO SKY MEXICO; (B) NEWS RECEIVED AN
OPTION TO PURCHASE AN EQUITY STAKE IN SKY MEXICO; (C) THE GROUP WILL
ACQUIRE 2/3 OF LIBERTY MEDIA'S 10% EQUITY INTEREST IN SKY MEXICO FOR A NET
AMOUNT OF APPROXIMATELY U.S.$48.0 MILLION, WHILE NEWS HAS AGREED TO ACQUIRE
THE REMAINING PORTION; AND (D) THE GROUP SOLD, SUBJECT TO CERTAIN
CONDITIONS, ITS 30% EQUITY INTEREST IN SKY MULTI-COUNTRY PARTNERS ("SMCP"),
RELEASING THE GROUP FROM ITS SATELLITE TRANSPONDER GUARANTEE. AS A RESULT
OF THESE TRANSACTIONS, THE GROUP'S EQUITY STAKE IN SKY MEXICO COULD BE
MARGINALLY REDUCED FROM 60% TO 57%, AND NEWS' STAKE COULD INCREASE FROM 30%
TO 43%. ADDITIONALLY, THE GROUP EXECUTED NEW AGREEMENTS FOR THE CARRIAGE OF
THE GROUP'S CHANNELS ON SKY MEXICO AND DIRECTV LATIN AMERICA, AND SKY
MEXICO HAS THE OPTION TO EXPLOIT THE DTH BUSINESS IN CENTRAL AMERICA AND
CERTAIN CARIBBEAN COUNTRIES. AS A RESULT OF THIS SUBSEQUENT EVENT, THE
GROUP CANCELLED AS OF SEPTEMBER 30, 2004, THE PROVISION FOR ITS GUARANTEE
IN CONNECTION WITH SATELLITE TRANSPONDERS OF SMCP IN THE AMOUNT OF
APPROXIMATELY PS.353,299, AND RECOGNIZED A RELATED INCOME AS EQUITY IN
EARNINGS OF AFFILIATES IN THE THIRD QUARTER OF 2004.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
ANALYSIS OF INVESTMENTS IN SHARES
ANNEX 3
CONSOLIDATED
Final Printing
--------------------------------------------------------------------------------------------------------------------------------
TOTAL AMOUNT
% (Thousands of Mexican Pesos)
NUMBER OWNERSHIP ----------------------------
COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION BOOK
COST VALUE (3)
--------------------------------------------------------------------------------------------------------------------------------
SUBSIDIARIES
1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND 19,509,544 100.00 1,836,819 1,910,012
S.A. DE C.V. DEVELOPMENT OF
COMPANIES
2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND 10,660,871 100.00 1,367,744 617,576
DEVELOPMENT OF
COMPANIES
3 DTH EUROPA, S.A. PROMOTION AND 1,080,182 90.25 780,220 938
DEVELOPMENT OF
COMPANIES
4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND 527,908,167 100.00 1,765,630 1,754,629
DEVELOPMENT OF
COMPANIES
5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND 1,037,498 100.00 823,582 1,837,870
DEVELOPMENT OF
COMPANIES
6 FACTUM MAS, S.A. DE C.V. PROMOTION AND 5,271,100,701 100.00 4,585,127 (414,771)
DEVELOPMENT OF
COMPANIES
7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS 349,470,905 100.00 822,778 612,409
S.A. DE C.V. AND MAGAZINES
8 CAMPUS AMERICA, S.A. DE C.V. PROMOTION AND 418,881,301 100.00 342,274 8,760,497
DEVELOPMENT OF
COMPANIES
9 PROMO-INDUSTRIAS PROMOTION AND 782,855 100.00 26,835 89,722
METROPOLITANAS, S.A. DE C.V. DEVELOPMENT OF
COMPANIES
10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF 76,070,313 50.00 764,739 215,663
RADIO PROGRAMMING
11 TELEPARABOLAS, S.L. MAINTENANCE OF 1,500 100.00 750 822
PARABOLIC DISHES
12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF 169,773,895 100.00 12,806,397 21,031,620
TELEVISION
13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION 6,920,920 100.00 115,371 49,202
OF TELEVISION
15 TELEVISION INDEPENDIENTE DE PROMOTION AND 32,240,629 99.98 2,790,056 6,935,179
MEXICO, S.A. DE C.V. DEVELOPMENT OF
COMPANIES
16 CAPITALIZED INTEGRAL COST OF 1 210,245
FINANCING, 1994
17 CAPITALIZED INTEGRAL COST OF 1 392,948
FINANCING, 1995
18 CAPITALIZED INTEGRAL COST OF 1 27,192
FINANCING, 1996
19 CAPITALIZED INTEGRAL COST OF 1 21,609
FINANCING, 1998
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SUBSIDIARIES 28,828,322 44,053,362
-----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
TOTAL AMOUNT
% (Thousands of Mexican Pesos)
NUMBER OWNERSHIP ----------------------------
COMPANY NAME (1) MAIN ACTIVITIES OF SHARES (2) ACQUISITION BOOK
COST VALUE (3)
--------------------------------------------------------------------------------------------------------------------------------
ASSOCIATEDS
1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR 33,000,000 15.30 137,000 24,182
BROADCASTING OF T.V.
2 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF 1,735,560 49.00 4,384 739
DIAMEX, S.A. DE C.V. ANIMATED CARTOONS
3 DTH TECHCO PARTNERS SERVICES FOR SATELLITE 1 30.00 117,900 148,083
PAY TELEVISION
4 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING 2,627,050 30.00 26,270 12,412
S.A. DE C.V. OF BOOKS AND
MAGAZINES.
5 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF 1,635,000 50.00 1,635 24,816
TELEVISION
PROGRAMMING
6 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN 2 100.00 25 (4,542)
DE C.V. MEXICO
7 MAS FONDOS, S.A. DE C.V. MUTUAL FUND DISTRIBUTION 99,758 46.55 99,758 68,183
COMPANY
8 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN 14,100,000 40.00 1,095,581 489,554
C.V. MEXICO
9 SKY LATIN AMERICA PARTNERS ADMINISTRATIVE SERV. 1 30.00 1,974 11,060
FOR THE DTH VENTURES
10 TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR 4,124,986 15.00 412 6,998
BROADCASTING OF T.V.
11 TUTV, LLC COMMERCIALIZATION OF 1 50.00 25,752 24,166
TELEVISION PROGRAMMING
12 UNIVISION COMMUNICATIONS, INC. BROADCASTING OF T.V. 30,187,534 9.36 5,602,976 5,801,639
SPANISH PROGRAMS
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN ASSOCIATES 7,113,667 6,607,290
-----------------------------------------------------------------------------------------------------------------------------------
OTHER PERMANENT INVESTMENTS 273,462
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL 50,934,114
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA ANNEX 5 QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CREDIT BREAK DOWN
(Thousands of Mexican Pesos)
CONSOLIDATED
Final Printing
-----------------------------------------------------------------------------------------------------------------------------------
Amortization of Credits in Foreign Currency With
National Entities (Thousands of $)
Denominated -------------------------------------------------------
In Pesos Time Interval
------------------------------------------------------------------------
More
Amortization Interest Until 1 Than Current Until 1 Until 2 Until 3 Until 4 Until 5
Credit Type / Institution Date Rate Year 1 Year Year Year Year Year Year Year
-----------------------------------------------------------------------------------------------------------------------------------
BANKS
-----------------------------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL ENTITIES
BANAMEX, S.A. 5/21/2009 9.70 1,162,460
BANAMEX, S.A. 5/1/2008 8.93 40,000 720,000
BANCA SERFIN, S.A. 5/15/2006 8.64 64,000 48,000
BNP PARIBAS 1/20/2009 2.55
BANK OF AMERICA 3/31/2010 3.09
SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.53
BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86
LEASING DE COLOMBIA 9/23/2006 13.21
LEASING DE OCCIDENTE 3/19/2005 13.87
LEASING DE OCCIDENTE 4/29/2007 17.62
SANTANDER CENTRAL HISPANO
LEASING, S.A. 1/24/2006 14.74
LEASING DEL VALLE 1/14/2005 13.53
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 104,000 1,930,460 - - - - - -
-----------------------------------------------------------------------------------------------------------------------------------
STOCK EXCHANGE
PRIVATE PLACEMENTS
-----------------------------------------------------------------------------------------------------------------------------------
UNSECURED DEBT
---------------------------
HOLDERS 5/13/2006 12.49
HOLDERS 8/8/2005 9.07
HOLDERS 9/13/2011 8.41
HOLDERS 3/11/2032 8.94
HOLDERS 4/1/2007 13.54
HOLDERS 9/19/2013 9.86
UDI DENOMINATED-NOTES 4/13/2007 8.15 3,755,840
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK EXCHANGE - 3,755,840 - - - -
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 741,714 979,042
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS 741,714 - - 979,042 - -
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES
AND OTHER CREDITS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 1,472,768 184,757 0 316,543 445,248 0
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER CURRENT LIABILITIES
AND OTHER CREDITS 1,472,768 184,757 316,543 445,248
-----------------------------------------------------------------------------------------------------------------------------------
2,318,482 5,871,057 - 1,295,585 445,248 -
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Amortization of Credits in Foreign Currency With Foreign
Entities (Thousands of $)
-----------------------------------------------------------------------------------------------------------------------------------
Time Interval
-----------------------------------------------------------------------------------------------------------------------------------
Current Until 1 Until 2 Until 3 Until 4 Until 5
Credit Type / Institution Year Year Year Year Year Year
-----------------------------------------------------------------------------------------------------------------------------------
BANKS
-----------------------------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL ENTITIES
BANAMEX, S.A.
BANAMEX, S.A.
BANCA SERFIN, S.A.
BNP PARIBAS 2,720 11,391 12,157 12,157 7,591 3,805
BANK OF AMERICA 143 428 572 572 572 29,475
SUNTRUST BANK MIAMI, NATIONAL 214 4,558 4,558 4,558 4,345
BANCO DE BILBAO VIZCAYA, S.A. 596 2,161 456
LEASING DE COLOMBIA 165 338 445 282
LEASING DE OCCIDENTE 244 212
LEASING DE OCCIDENTE 45 134 171 125
SANTANDER CENTRAL HISPANO LEASING 5 29 39
LEASING DEL VALLE 3 7
---------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 4,135 19,258 18,398 18,064 12,508 33,280
---------------------------------------------------------------------------------------------------------------------------------
STOCK EXCHANGE
PRIVATE PLACEMENTS
---------------------------------------------------------------------------------------------------------------------------------
UNSECURED DEBT
-------------------------------
HOLDERS 60,889
HOLDERS 2,279,200
HOLDERS 3,418,800
HOLDERS 3,418,800
HOLDERS 1,002,848
HOLDERS 3,418,800
UDI DENOMINATED-NOTES
----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK EXCHANGE - 2,279,200 60,889 1,002,848 0 10,256,400
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 358,712
----------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS 358,712 - - - -
----------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES
AND OTHER CREDITS
----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 16,821 135,572 169,490 88,346 99,059 1,106,625
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER CURRENT LIABILITIES
AND OTHER CREDITS 16,821 135,572 169,490 88,346 99,059 1,106,625
----------------------------------------------------------------------------------------------------------------------------------
20,956 2,792,742 248,777 1,109,258 111,567 11,396,305
-----------------------------------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY
WERE AS FOLLOWS:
$ 11.3960 PESOS PER U.S. DOLLAR
0.0044 PESOS PER COLOMBIAN PESO
14.2608 PESOS PER EURO
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)
ANNEX 6
CONSOLIDATED
Final Printing
----------------------------------------------------------------------------------------------------------------------------
DOLLARS (1) OTHER CURRENCIES (1) TOTAL
---------------------------------------------------------------------
TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS
OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS
----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 567,714 6,469,669 39,574 450,985 6,920,654
LIABILITIES POSITION 1,508,426 17,190,023 23,776 270,951 17,460,974
SHORT-TERM LIABILITIES POSITION 340,632 3,881,842 23,515 267,977 4,149,819
LONG-TERM LIABILITIES POSITION 1,167,794 13,308,181 261 2,974 13,311,155
----------------------------------------------------------------------------------------------------------------------------
NET BALANCE (940,712) (10,720,354) 15,798 180,034 (10,540,320)
----------------------------------------------------------------------------------------------------------------------------
NOTES
(1) THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS:
$ 11.3960 PESOS PER U.S. DOLLAR
14.2608 PESOS PER EURO
3.7735 PESOS PER ARGENTINEAN PESO
0.0185 PESOS PER CHILEAN PESO
0.0044 PESOS PER COLOMBIAN PESO
3.4007 PESOS PER PERUVIAN NUEVO SOL
20.7285 PESOS PER POUNDS STERLING
11.3960 PESOS PER ECUADORIAN SUCRE
11.3960 PESOS PER PANAMANIAN BALBOA
0.0059 PESOS PER VENEZUELAN BOLIVAR
THIS INFORMATION IS REPRESENTED ON A CONSOLIDATED BASIS AND INCLUDES,
ACCORDINGLY, INFORMATION OF FOREIGN SUBSIDIARIES.
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
RESULT FROM MONETARY POSITION (1)
(Thousands of Mexican Pesos)
ANNEX 7
CONSOLIDATED
Final Printing
----------------------------------------------------------------------------------------------------------------------
(ASSET) LIABILITY MONTHLY
MONTH MONETARY MONETARY MONETARY MONTHLY PROFIT
ASSETS LIABILITIES POSITION INFLATION AND (LOSS)
----------------------------------------------------------------------------------------------------------------------
JANUARY 28,435,606 22,176,571 (6,259,035) 0.01 (38,900)
FEBRUARY 27,713,141 20,084,504 (7,628,637) 0.01 (45,627)
MARCH 26,256,111 21,431,109 (4,825,002) 0.00 (16,347)
APRIL 28,415,500 34,291,191 5,875,691 0.00 8,866
MAY 28,545,301 37,296,282 8,750,981 0.00 (21,947)
JUNE 22,597,252 32,956,030 10,358,778 0.00 16,595
JULY 26,701,265 32,468,519 5,767,254 0.00 15,116
AUGUST 26,457,440 32,371,531 5,914,091 0.00 36,508
SEPTEMBER 27,670,998 33,415,941 5,744,943 0.00 40,169
RESTATEMENT: - (1,723)
CAPITALIZATION: - -
FOREIGN CORP.: - 28,289
OTHER - (127,134)
---------------------------------------------------------------------------------------------------------------------
TOTAL (106,135)
---------------------------------------------------------------------------------------------------------------------
NOTES
THE AMOUNT REFLECTED IN "OTHER" INCLUDES A LOSS FROM
MONETARY POSITION DERIVED FROM DEFERRED TAXES, WHICH WAS
CLASSIFIED IN THE DEFERRED INCOME TAX PROVISION IN
ACCORDANCE WITH THE GUIDELINES PROVIDED BY BULLETIN D-4 FOR
DEFERRED TAXES.
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
CONVENANTS ON BONDS AND MEDIUM TERM NOTES LISTED IN STOCK MARKET
ANNEX 8
CONSOLIDATED
Final Printing
-------------------------------------------------------------------------------
FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE
-------------------------------------------------------------------------------
THE AGREEMENTS OF THE U.S.$200 MILLION, U.S.$300 MILLION AND U.S.$300
MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A. WITH MATURITY IN 2005,
2011 AND 2032, RESPECTIVELY, CONTAIN CERTAIN COVENANTS THAT LIMIT THE
ABILITY OF THE COMPANY AND ITS SUBSIDIARIES ENGAGED IN TELEVISION
OPERATIONS TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK
TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS OR SIMILAR
TRANSACTIONS.
THE AGREEMENTS OF THE U.S.$88 MILLION SENIOR NOTES AND THE U.S.$300 MILLION
SENIOR NOTES ISSUED BY INNOVA, S. DE R.L. DE C.V. ("INNOVA") WITH MATURITY
IN 2007 AND 2013, RESPECTIVELY, CONTAIN CERTAIN COVENANTS THAT LIMIT THE
ABILITY OF INNOVA AND ITS RESTRICTED SUBSIDIARIES WITH RESPECT TO
INDEBTEDNESS, LIENS, SALES AND LEASEBACKS, RESTRICTED PAYMENTS, ASSET
SALES, AND CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
-------------------------------------------------------------------------------
ACTUAL SITUATION OF FINANCIAL LIMITED
-------------------------------------------------------------------------------
AT SEPTEMBER 30, 2004, THE GROUP WAS IN COMPLIANCE WITH THE FINANCIAL
RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES
DESCRIBED ABOVE.
---------------------------------------------
C.P. JORGE LUTTEROTH ECHEGOYEN
CONTROLLER, VICE-PRESIDENT
MEXICO, D.F. OCTOBER 21, 2004
-------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9
CONSOLIDATED
Final Printing
--------------------------------------------------------------------------------------------------------------------------
PLANT OR CENTER ECONOMIC ACTIVITY PLANT UTILIZATION
CAPACITY (1) (%)
--------------------------------------------------------------------------------------------------------------------------
TELEVISION: 0 0
CORPORATIVO SANTA FE HEADQUARTERS 0 0
TELEVISA SAN ANGEL PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
TELEVISA CHAPULTEPEC PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
REAL ESTATE LAND AND UNOCCUPIED, BUILDING, 0 0
PARKING LOTS, ADMINISTRATIVE 0 0
OFFICES, RADIO ANTENNAS, 0 0
TELEVISION STATIONS FACILITIES. 0 0
TRANSMISSION STATIONS BROADCASTER STATIONS. 0 0
PUBLISHING: 0 0
EDITORIALS ADMINISTRATION, SALES, PRODUCTION, 0 0
STORAGE AND DISTRIBUTION OF 0 0
MAGAZINES AND NEWSPAPERS. 0 0
AUDIO: 0 0
SISTEMA RADIOPOLIS, S.A. DE C.V. BROADCASTER STATIONS. 0 0
CABLE TELEVISION: 0 0
CABLEVISION, S.A. DE C.V. CABLE TELEVISION, SIGNAL CONDUCTION 0 0
AND TRANSMISSION EQUIPMENT. 0 0
OTHER BUSINESSES: 0 0
IMPULSORA DEL DEPORTIVO SOCCER, SOCCER TEAMS, TRAINING 0 0
NECAXA, S.A. DE C.V. AND CLUB FACILITIES, ADMINISTRATIVE OFFICES AND 0 0
DE FUTBOL AMERICA, S.A. DE C. THE AZTECA STADIUM. 0 0
COMUNICACIONES MTEL, S.A. DE NATIONWIDE PAGING. 0 0
0 0
0 0
0 0
--------------------------------------------------------------------------------------------------------------------------
NOTES
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
MAIN RAW MATERIALS
ANNEX 10
CONSOLIDATED
Final Printing
--------------------------------------------------------------------------------------------------------------------------
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
(%)
--------------------------------------------------------------------------------------------------------------------------
PROGRAMS AND FILMS ANIME CREATIVE
CORPORATION 0.08
CIMA FILMS, S.A.
DE C.V. 0.06
CINEMAS LUMIERE,
S.A. DE C.V. 0.06
CINEMATOGRAFICA
RODRIGUEZ, S.A. 0.21
COMAREX, S.A.
DE C.V. 0.14
CHURUBUSCO, S.A. 0.65
DIANA INTERNACIO-
NAL FILMS, S.A. 0.11
DISTRIBUIDORA RO-
MARI, S.A. DE C.V. 1.59
FILMADORA MEXI-
CANA, S.A. 0.08
GRUPO GALINDO,
S.A. DE C.V. 0.08
GUIAS, S.A. DE C.V. 0.25
GUSSI, S.A. DE C.V. 3.72
NUVISION, S.A. 0.97
ORO FILMS,
S.A. DE C.V. 0.23
PELICULAS RODRI-
GUEZ, S.A. 0.69
PELICULAS Y VI-
DEOS INTERNACIO-
NALES, S.A. 0.08
PRODUCCIONES
AGUILA,S.A. 0.18
PRODUCCIONES
ALFA AUDIOVISUAL 0.05
PRODUCCIONES
GONZALO ELVIRA 0.13
QUALITY FILMS, S.A. 0.07
SECINE, S.A. DE C.V. 0.85
TELE ALIANZA,
S.A. DE C.V. 0.07
UNION INTERNACIO-
NAL, S.A. DE C.V. 0.05
OTHER 0.58
PROGRAMS AND FILMS 4KIDS ENTERTAINMENT NO 0.21
ABC DISTRIBUTION
COMPANY NO 0.48
ALFRED HABER
DISTRIBUTION, INC. NO 0.46
ALLIANCE ATLAN-
TIS INTERNATIONAL NO 0.98
AMERICA PRO-
DUCCIONES, S.A. NO 2.31
BETAFILM GMBH
& CO. NO 1.05
BEVERLY HILLS
ENTERTAINMENT NO 0.19
BKN INTERNA-
CIONAL,INC. NO 0.14
BUENAVISTA
INTERNATIONAL
INC. NO 0.16
CANAL + DA NO 0.16
CARSEY WERNER
DISTRIBUTION,INC. NO 0.32
CBS BROADCAST
INTERNATIONAL NO 1.62
CDC UNITED
NETWORK NO 0.10
CINAR FILMS, INC. NO 0.12
CONSTELLATION
PICTURES, INC. NO 3.31
CROWN MEDIA
DISTRIBUTION NO 0.42
DREAMWORKS NO 1.76
EVERGREEN ENTER-
TAINMENT GLOBAL NO 0.14
FIREWORKS INTER-
NATIONAL NO 0.32
FREMANTLE INTER-
NATIONAL DISTRI-
BUTION, LTD. NO 0.18
GLOBAL PROGRA-
MMING NETWORK NO 0.24
GMD GLOBAL
MEDIA DISTRIBU-
TIONS NO 0.85
HALLMARK ENTER-
TAINMENT DISTRI-
BUTIONS NO 0.29
HARMONY GOLD
USA, INC. NO 0.13
HEARTS ENTER-
TAINMENT, INC. NO 0.43
HIGHPOINT PRODUC-
TIONS, INC. NO 0.18
HIT ENTERTAIN-
MENT PLC. NO 0.13
INDEPENDENT
INTERNATIONAL
T.V. INC. NO 2.60
ITSY BITSY
ENTERTAINMENT NO 1.13
KUSHNER-LOCKE
INTERNATIONAL NO 0.34
MGM/UA TELECOM-
MUNICATIONS, INC. NO 2.59
MORGAN CREEK
INTERNATIONAL NO 0.12
MTV NETWORKS A
DIVISION OF VIACOM
INT. NO 0.80
MULTIMEDIA GROUP
OF CANADA NO 0.22
NBC INTERNATIONAL NO 0.10
NELVANA INTER-
NATIONAL NO 0.48
NEW LATIN IMAGE
CORPORATION NO 0.09
NU IMAGE INCORPO-
RATED NO 0.14
PARAMOUNT
PICTURES, CORP. NO .76
POKEMON USA,
INC. NO 0.12
PROTELE, INC. NO 4.81
RCN TELEVISION,
S.A. NO 1.00
REPRESENTA-
CIONES DE TELE-
VISION NO 0.45
ROSE ENTERTAIN-
MENT, INC. NO 0.43
RYSHER ENTER-
TAINMENT, INC. NO 0.41
SALSA
DISTRIBUTION NO 0.32
SALSA ENTER-
TAINMENT,INC. NO 1.10
SONY CORPORA-
TION OF AMERICA NO 7.62
STUDIO CANAL
IMAGE NO 0.81
SUNBOW ENTER-
TAINMENT NO 0.15
TELEVISION FILM
DISTRIBUTION NO 0.45
TELEVIX ENTER-
TAINMENT NO 0.19
TEPUY USA COR-
PORATION NO 0.24
TOEI ANIMATION
CO., LTD NO 0.55
TOP ENTERTAINMENT
PRODUCTS, INC. NO 0.17
TRIMARK TELEVISION NO 0.17
TWENTIETH CEN-
TURY FOX, INC. NO 5.53
UNIVERSAL STUDIOS
INTERNATIONAL, B.V. NO 2.29
VENTURA FILM
DISTRIBUTORS BV NO 1.00
WARNER BROS.
INTERNATIONAL
TELEVISION NO 2.96
WHILAND COMPANY NO 3.98
WORDLDIVISION
ENTERPRISES, INC. NO 2.43
XYSTUS, LLC. NO 0.70
OTHER 1.09
COAXIAL CABLE RG
MAYA 60 NACIONAL DE
CONDUCTORES,
S.A. DE C.V. 3.30
SINGLE TELEGRIP CORPODISENO DE
HERRAJES, S.A. 0.01
IDENTIFICATION PLAQUE RIVANDI, S.A. DE C.V. 0.11
CABLEMODEMS MOTOROLA, INC. NO 0.61
HILTI BOLT HILTI MEXICANA,
S.A. DE C.V. NO 0.06
SWITCH CABLENETWORK
MEXICO NO 0.03
SWITCH DISTRIBUIDORA Y
COMERCIALIZADORA YES 0.15
TWO OUTLET DEVICE AC TVC CORPORATION YES 0.05
200 DECODER MOTOROLA, INC. NO 8.52
COUCHE PAPER PAPELERA MOHGA-
BBA, S.A. 0.92
SUMINISTROS Y
SERVICIOS BROM 0.58
REPRESENTACIONES
MREAL 0.02
PRODUCTORA
COMERCIALIZA
DORA Y EDITORA 0.61
ROOSSEVELT PAPEL 0.32
COUCHE PAPER STORAM ENSON YES 7.32
UPM KYMMENE SEAS YES 7.57
BULKLEY DUNKE YES 2.35
M REAL YES 1.32
MYLLLIKOSKI
PAPEL YES 3.34
TEMBEC, INC. YES 0.44
BULKLEY DUNTON YES 5.85
FINNIPAP YES 8.53
WEB SOURCE YES 0.28
BOWATER, INC. YES 1.29
NORKE CANADA YES 0.65
PAPER AND IMPRESSION PRODUCTORA CO-
MERCIALIZADORA Y
EDITORES DE LI
BROS , S.A. DE C.V. 1.56
OFFSET
MULTICOLOR 6.05
IMPRESOS MOINO 1.12
PROCESOS IND
DE PAPEL, S.A. 2.38
LABORATORIO LITO
COLOR, S.A. 0.05
SERVICIOS PROFE-
SSIONALES, S.A. 0.44
PAPER AND IMPRESSION QUEBECOR
CHILE, S.A. YES 2.77
QUEBECOR
WORLD, INC. YES 0.07
GRUPO OP GRAFICAS
S.A. YES 0.40
PRINTER COLOMBIA-
NA, S.A. YES 0.60
ST. IVES, INC. YES 7.41
BEST LITHO YES 0.40
EDITORES, S.A. YES 0.14
RR DONELLY YES 2.58
QUAD GRAPHICS YES 2.10
PRO-OFFSET EDI-
TORIAL, LTDA. YES 0.05
--------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
SALES DISTRIBUTION BY PRODUCT
ANNEX 11
DOMESTIC SALES
CONSOLIDATED
Final Printing
--------------------------------------------------------------------------------------------
TOTAL PRODUCTION NET SALES
---------------------------------------- MARKET
MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT SHARE
(%)
--------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS (481,153)
TELEVISION:
-----------
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC) 82
ADVERTISED TIME SOLD (HALF HOURS) 5 11,126,369
OTHER INCOME 73,747
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALE OF SIGNALS 429,525
ADVERTISED TIME SOLD 70,414
PUBLISHING:
-----------
MAGAZINE CIRCULATION 91,578 820,120 41,559 515,064
PUBLISHING 414,625
PUBLISHING DISTRIBUTION: 11,352 355,806
------------------------
SKY MEXICO:
-----------
DTH BROADCAST SATELLITE
PAY TELEVISION 2,225,192
PAY PER VIEW 106,508
CHANNEL COMMERCIALIZATION 24,608
CABLE TELEVISION:
-----------------
ANALOGIC AND DIGITAL SERVICE 770,050
SERVICE INSTALLATION 18,610
PAY PER VIEW 1,276
CHANNEL COMMERCIALIZATION 20,118
OTHER 8,784
RADIO:
------
ADVERTISED TIME SOLD 198,580
OTHER BUSINESSES:
-----------------
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS 531,933
SPECIAL EVENTS AND SHOW PROMOTION 413,879
NATIONWIDE PAGING SERVICE 128,469
INTERNET SERVICES 86,675
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL 820,120 17,039,079
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
MAIN
----------------------------------------------------
MAIN PRODUCTS TRADEMARKS CUSTOMERS
-----------------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS
TELEVISION:
-----------
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC)
ADVERTISED TIME SOLD (HALF HOURS) PROCTER & GAMBLE DE MEXICO, S.A. DE C.V.
THE COCA-COLA EXPORT COMPANY.
UNILEVER DE MEXICO, S.A. DE C.V.
SABRITAS, S. DE R.L. DE C.V.
BIMBO, S.A. DE C.V.
PEPSI COLA MEXICANA, S.A. DE C.V.
CERVECERIA MODELO, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
DANONE DE MEXICO, S.A. DE C.V.
NESTLE MEXICO, S.A. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
PRODUCCIONES INFOVISION, S.A. DE C.V.
KELLOGG COMPANY MEXICO, S. DE R.L. DE C.V.
GENERAL MOTORS DE MEXICO, S. DE R.L. DE C.V.
FRABEL, S.A. DE C.V.
OTHER INCOME
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALE OF SIGNALS
ADVERTISED TIME SOLD
PUBLISHING:
-----------
MAGAZINE CIRCULATION TV Y NOVELAS MAGAZINE, GENERAL PUBLIC (AUDIENCE)
TELEGUIA MAGAZINE, DEALERS
VANIDADES MAGAZINE COMMERCIAL CENTERS (MALLS)
COSMOPOLITAN MAGAZINE
BIOGRAPHICAL BOOKS
SOCCERMANIA MAGAZINE
TU MAGAZINE
MEN'S HEALTH MAGAZINE
CARAS MAGAZINE
MUY INTERESANTE MAGAZINE
PUBLISHING VARIOUS
PUBLISHING DISTRIBUTION: MAGAZINE:
------------------------
"MAESTRA PREESCOLAR"
"EL EGIPTO DE LOS FARAONES"
"FABULA DISNEY"
"REVISTA DEL CONSUMIDOR"
"MAESTRA DE PRIMARIA"
SKY MEXICO:
-----------
DTH BROADCAST SATELLITE
PAY TELEVISION SKY GENERAL PUBLIC
PAY PER VIEW
CHANNEL COMMERCIALIZATION
CABLE TELEVISION:
-----------------
ANALOGIC AND DIGITAL SERVICE GENERAL PUBLIC
SERVICE INSTALLATION OPERADORA MEGACABLE, S.A. DE C.V.
PAY PER VIEW CERVECERIA MODELO, S.A. DE C.V.
CHANNEL COMMERCIALIZATION GRUPO WARNER LAMBERT MEXICO, S. DE R.L. DE C.V.
OTHER TELEFONOS DE MEXICO, S.A. DE C.V.
DAIMLERCHRYSLER DE MEXICO, S.A. DE C.V.
FORD MOTOR COMPANY, S.A. DE C.V.
BRISTOL MYERS SQUIBB DE MEXICO, S. DE R.L. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
BANCO NACIONAL DE MEXICO, S.A.
ARENA COMMUNICATIONS, S.A. DE C.V.
BAYER DE MEXICO, S.A. DE C.V.
SONY DE MEXICO, S.A. DE C.V.
RADIO:
------
ADVERTISED TIME SOLD CERVECERIA MODELO, S.A. DE C.V.
ARENA COMMUNICATIONS, S.A. DE C.V.
VENTAS Y SERVICIOS AL CONSUMIDOR, S.A. DE C.V.
PEGASO PCS, S.A. DE C.V.
GIGANTE, S.A. DE C.V.
NEXTEL DE MEXICO, S.A. DE C.V.
COMERCIAL MEXICANA
GENERAL MOTORS DE MEXICO, S. DE R.L. DE C.V.
ALESTRA, S. DE R.L. DE C.V.
DISTRIBUIDORA KROMA, S.A. DE C.V.
OTHER BUSINESSES:
-----------------
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS CINEMAS DE LA REPUBLICA, S.A. DE C.V.
CINEMEX, S.A. DE C.V.
CINEMARK DE MEXICO, S.A. DE C.V.
CINEPOLIS DEL PAIS, S.A. DE C.V.
MULTIMEDIOS CINEMAS, S.A. DE C.V.
GENERAL PUBLIC (AUDIENCE)
SPECIAL EVENTS AND SHOW PROMOTION AMERICA GENERAL PUBLIC (AUDIENCE)
NECAXA FEDERACION MEXICANA DE FUTBOL, A.C.
REAL SAN LUIS
NATIONWIDE PAGING SERVICE SKYTEL FERROCARRIL MEXICANO, S.A. DE C.V.
BANCO NACIONAL DE MEXICO, S.A.
HEWLETT PACKARD DE MEXICO, S. DE R.L. DE C.V.
COMISION FEDERAL DE ELECTRICIDAD
EDS DE MEXICO, S.A. DE C.V.
AVANTEL, S.A.
FERROSUR, S.A. DE C.V.
SECRETARIA DE GOBERNACION
SCHERING PLOUGH, S.A. DE C.V.
BBVA BANCOMER, S.A.
GRUPO NACIONAL PROVINCIAL, S.A.
I.B.M. DE MEXICO, S.A.
INTERNET SERVICES ESMAS.COM MEDIA CONTACTS, S.A. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
MOTOROLA DE MEXICO, S.A.
NESTLE MEXICO, S.A. DE C.V.
-----------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
SALES DISTRIBUTION BY PRODUCT
ANNEX 11A
FOREIGN SALES
CONSOLIDATED
Final Printing
---------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION NET SALES
---------------------------------------------
MAIN PRODUCTS VOLUME AMOUNT VOLUME AMOUNT DESTINATION
---------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS (5,641)
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD 342,198 UNITED STATES OF AMERICA
OTHER INCOME 72,119 UNITED STATES OF AMERICA
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS 78,902 SPAIN
ARGENTINA
CHILE
GUATEMALA
COLOMBIA
PROGRAM LICENSING:
------------------
PROGRAMMING AND ROYALTIES 1,401,091 UNITED STATES OF AMERICA
CENTRAL AMERICA
CARIBBEAN
EUROPE
SOUTH AMERICA
AFRICA
ASIA .
PUBLISHING:
-----------
MAGAZINE CIRCULATION, BOOKS AND
ADVERTISING 18,979 295,522 GUATEMALA AND COSTA RICA
UNITED STATES OF AMERICA
PANAMA
SOUTH AMERICA
CENTRAL AMERICA
PUBLISHING 203,602
PUBLISHING DISTRIBUTION: 11,224 1,093,562 PANAMA
------------------------ SOUTH AMERICA
OTHER BUSINESSES: 17,994
-----------------
----------------------------------------------------------------------------------------------------------------------------
TOTAL 3,499,349
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
MAIN
--------------------------------------------------------------------------------
MAIN PRODUCTS TRADEMARKS CUSTOMERS
----------------------------------------------------------------------------------------------------------------------------
INTERSEGMENT ELIMINATIONS
TELEVISION BROADCASTING:
------------------------
ADVERTISING TIME SOLD RCN TELEVISION
POWERCORP B.V.
THOMSON BROADCASTING AND MEDIA SOLUTIONS
MASTER CARD INTERNATIONAL GLOBAL MARKETING
CHEIL COMMUNICATIONS, INC.
REYNOLDS CONSUMER PRODUCTS
OTHER INCOME
PROGRAMMING FOR PAY TELEVISION:
-------------------------------
SALES OF SIGNALS
PROGRAM LICENSING:
------------------
PROGRAMMING AND ROYALTIES TELEVISA MCCANN ERICKSON, INC.
TELEVISA MINDSHARE
TELEVISA DAILY AND ASSOCIATES
TELEVISA SPOTPLUS
TELEVISA CARAT, INC.
TELEVISA HORIZON MEDIA, INC.
TELEVISA GREY ADVERTISING, INC.
INITIATIVE MEDIA, INC.
GSD&M ADVERTISING
TBWA CHIAT
PUBLISHING:
-----------
MAGAZINE CIRCULATION, BOOKS AND
ADVERTISING T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
BIOGRAPHICAL BOOKS DEALERS
VANIDADES MAGAZINE
COSMOPOLITAN MAGAZINE
TU MAGAZINE
PUBLISHING
PUBLISHING DISTRIBUTION: BARNEY MAGAZINE GENERAL PUBLIC (AUDIENCE)
------------------------ FUTBOL TOTAL MAGAZINE
ARMONIA LA NAVIDAD MAGAZINE
HECHO EN CASA MAGAZINE
DIGIMON MAGAZINE
OTHER BUSINESSES:
-----------------
-------------------------------------------------------------------------------
TOTAL
-------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE
ANNEX 13
CONSOLIDATED
Final Printing
-----------------------------------------------------------------------------------------------
MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT
SEPTEMBER 30, 2004, INCLUDE THE FOLLOWING (MILLIONS OF U.S. DOLLARS AND
MEXICAN PESOS):
DESCRIPTION AUTHORIZED AMOUNT EXERCISED AMOUNT PROGRESS %
----------- ----------------- ---------------- ----------
U.S. DOLLAR DENOMINATED PROJECTS:
---------------------------------
DIGITALIZATION OF THE CABLE
TELEVISION NETWORK U.S.$ 95.0 U.S.$ 37.1 39%
INFORMATION TECHNOLOGY
PROJECTS OF CABLE TELEVISION 13.5 10.2 76%
TECHNICAL EQUIPMENT FOR
T.V. STATIONS 13.3 10.0 75%
INFORMATION TECHNOLOGY
PROJECTS 11.3 5.5 49%
MEXICAN PESOS DENOMINATED PROJECTS:
-----------------------------------
INFORMATION TECHNOLOGY
PROJECTS PS. 34.1 PS. 28.3 83%
SOCCER FACILITIES AND
IMPROVEMENTS 27.6 16.3 59%
TECHNICAL EQUIPMENT FOR
T.V. STATIONS 17.1 14.4 84%
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 3 YEAR: 2004
GRUPO TELEVISA, S.A.
INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION)
ANNEX 14
CONSOLIDATED
Final Printing
--------------------------------------------------------------------------------
MONETARY ASSETS AND LIABILITIES OF MEXICAN COMPANIES DENOMINATED IN
FOREIGN CURRENCIES ARE TRANSLATED AT THE PREVAILING EXCHANGE RATE AT
THE BALANCE SHEET DATE. RESULTING EXCHANGE RATE DIFFERENCES ARE
RECOGNIZED IN INCOME FOR THE YEAR, WITHIN INTEGRAL COST OF FINANCING.
ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF NON-MEXICAN
SUBSIDIARIES ARE FIRST CONVERTED TO MEXICAN GAAP, INCLUDING RESTATING
TO RECOGNIZE THE EFFECTS OF INFLATION BASED ON THE INFLATION OF EACH
FOREIGN COUNTRY, AND THEN TRANSLATED TO MEXICAN PESOS UTILIZING THE
EXCHANGE RATE AS OF THE BALANCE SHEET DATE AT YEAR-END. RESULTING
TRANSLATION DIFFERENCES ARE RECOGNIZED IN EQUITY AS PART OF THE OTHER
COMPREHENSIVE INCOME OR LOSS. FINANCIAL STATEMENTS OF NON-MEXICAN
OPERATIONS THAT ARE INTEGRAL TO MEXICAN OPERATIONS ARE CONVERTED TO
MEXICAN GAAP AND TRANSLATED TO MEXICAN PESOS BY UTILIZING THE EXCHANGE
RATE OF THE BALANCE SHEET DATE AT YEAR-END FOR MONETARY ASSETS AND
LIABILITIES, WITH THE RELATED ADJUSTMENT INCLUDED IN NET INCOME, AND
HISTORICAL EXCHANGE RATES FOR NON-MONETARY ITEMS.
EFFECTIVE MARCH, 2002, THE COMPANY DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF ITS SENIOR NOTES DUE 2011 AND 2032
FOR AN AGGREGATE AMOUNT OF U.S.$600 MILLION (Ps.6,837,600).
CONSEQUENTLY, BEGINNING MARCH 2002, ANY FOREIGN EXCHANGE GAIN OR LOSS
ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT, BEING HEDGED BY THE
COMPANY'S NET INVESTMENT IN SHARES OF UNIVISION, IS CREDITED OR
CHARGED DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS).
THE GROUP'S FINANCIAL STATEMENTS FOR SEPTEMBER 30, 2003, HAVE BEEN
RESTATED TO MEXICAN PESOS IN PURCHASING POWER AS OF SEPTEMBER 30,
2004, BY USING A RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE
NCPI, WHICH FOR 2004 WAS 1.0506. HAD THE ALTERNATIVE WEIGHTED AVERAGE
FACTOR ALLOWED UNDER MEXICAN GAAP BEEN APPLIED TO RESTATE THE GROUP'S
FINANCIAL STATEMENTS FOR SEPTEMBER 30, 2003, WHICH INCLUDED THE
RESULTS OF MEXICAN AND NON-MEXICAN SUBSIDIARIES, THE RESTATEMENT
FACTOR FOR SEPTEMBER 2003 WOULD HAVE BEEN 1.0569.
MEXICAN STOCK EXCHANGE ("BMV")
STOCK EXCHANGE CODE: TLEVISA DATE: 10/22/2004
GRUPO TELEVISA, S.A.
GENERAL DATA OF ISSUER
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
COMPANY'S NAME: GRUPO TELEVISA, S.A.
ADDRESS: AV. VASCO DE QUIROGA # 2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-20-00
FAX: 5261-24-94
INTERNET ADDRESS: www.televisa.com.mx
-------------------
TAX DATA OF THE ISSUER
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
COMPANY TAX CODE: GTE901219GK3
ADDRESS: AV. VASCO DE QUIROGA # 2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
RESPONSIBLE FOR PAYMENT
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
----------------------
EXECUTIVES DATA
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
BMV POSITION: CHAIRMAN OF THE BOARD
POSITION: CHAIRMAN OF THE BOARD
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC # 28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
----------------------
--------------------------------------------------------------------------------------------------------
BMV POSITION: GENERAL DIRECTOR
POSITION: PRESIDENT AND CHIEF EXECUTIVE OFFICER
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC # 28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
----------------------
--------------------------------------------------------------------------------------------------------
BMV POSITION: FINANCE DIRECTOR
POSITION: CHIEF FINANCIAL OFFICER
NAME: LIC. SALVI FOLCH VIADERO
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-80
FAX: 5261-20-39
E-MAIL: sfolch@televisa.com.mx
----------------------
--------------------------------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING CORPORATE INFORMATION THROUGH EMISNET
POSITION: DIRECTOR OF CORPORATE FINANCIAL INFORMATION
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
----------------------
--------------------------------------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING SHARE REPURCHASE INFORMATION THROUGH EMISNET
POSITION: VICE PRESIDENT OF CORPORATE FINANCE
NAME: LIC. ALEXANDRE MOREIRA PENNA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 3
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-58
FAX: 5261-25-24
E-MAIL: apenna@televisa.com.mx
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BMV POSITION: RESPONSIBLE FOR LEGAL MATTERS
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL OF GRUPO TELEVISA
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
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BMV POSITION: SECRETARY OF THE BOARD OF DIRECTORS
POSITION: SECRETARY OF THE BOARD OF DIRECTORS
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
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BMV POSITION: PROSECRETARY OF THE BOARD OF DIRECTORS
POSITION: EXTERNAL GENERAL COUNSEL
NAME: LIC. RICARDO MALDONADO YANEZ
ADDRESS: MONTES URALES # 505, PISO 3
NEIGHBORHOOD: LOMAS DE CHAPULTEPEC
ZIP CODE: 11000
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5201-74-47
FAX: 5520-10-65
E-MAIL: rmaldonado@macf.com.mx
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BMV POSITION: RESPONSIBLE OF INFORMATION TO INVESTORS
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
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BMV POSITION: RESPONSIBLE FOR SENDING INFORMATION THROUGH EMISNET
POSITION: SECRETARY OF THE BOARD OF DIRECTORS
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
------------------------
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BMV POSITION: RESPONSIBLE FOR SENDING RELEVANT EVENTS THROUGH EMISNET
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
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BOARD OF DIRECTORS
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POSITION: PRESIDENT(S)
NAME: EMILIO FERNANDO AZCARRAGA JEAN
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POSITION: VICE PRESIDENT(S)
NAME: MARIA ASUNCION ARAMBURUZABALA LARREGUI
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POSITION: DIRECTOR(S)
NAME: PEDRO ASPE ARMELLA
NAME: JULIO BARBA HURTADO
NAME: JOSE ANTONIO BASTON PATINO
NAME: ANA PATRICIA BOTIN O'SHEA
NAME: MANUEL JORGE CUTILLAS COVANI
NAME: ALFONSO DE ANGOITIA NORIEGA
NAME: CARLOS FERNANDEZ GONZALEZ
NAME: BERNARDO GOMEZ MARTINEZ
NAME: CLAUDIO X. GONZALEZ LAPORTE
NAME: ROBERTO HERNANDEZ RAMIREZ
NAME: ENRIQUE KRAUZE KLEINBORT
NAME: GERMAN LARREA MOTA VELAZCO
NAME: GILBERTO PEREZALONSO CIFUENTES
NAME: ALEJANDRO QUINTERO INIGUEZ
NAME: FERNANDO SENDEROS MESTRE
NAME: ENRIQUE FRANCISCO J. SENIOR HERNANDEZ
NAME: CARLOS SLIM DOMIT
NAME: LORENZO H. ZAMBRANO TREVINO
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POSITION: ALTERNATE DIRECTOR(S)
NAME: HERBERT ALLEN III
NAME: JUAN PABLO ANDRADE FRICH
NAME: LUCRECIA ARAMBURUZABALA LARREGUI
NAME: FELIX ARAUJO RAMIREZ
NAME: MAXIMILIANO ARTEAGA CARLEBACH
NAME: JOAQUIN BALCARCEL SANTA CRUZ
NAME: JUAN FERNANDO CALVILLO ARMENDARIZ
NAME: RAFAEL CARABIAS PRINCIPE
NAME: FRANCISCO JOSE CHEVEZ ROBELO
NAME: JOSE LUIS FERNANDEZ FERNANDEZ
NAME: SALVI FOLCH VIADERO
NAME: LEOPOLDO GOMEZ GONZALEZ BLANCO
NAME: JOSE HEREDIA BRETON
NAME: JOSE ANTONIO LARA DEL OLMO
NAME: JORGE LUTTEROTH ECHEGOYEN
NAME: ALBERTO MONTIEL CASTELLANOS
NAME: RAUL MORALES MEDRANO
NAME: ALEXANDRE MOREIRA PENNA DA SILVA
NAME: GUILLERMO NAVA GOMEZ-TAGLE
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POSITION: STATUTORY AUDITOR(S)
NAME: MARIO SALAZAR ERDMANN
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POSITION: ALTERNATE STATUTORY AUDITOR(S)
NAME: JOSE MIGUEL ARRIETA MENDEZ
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POSITION: SECRETARY(IES) OF THE BOARD
NAME: JUAN SEBASTIAN MIJARES ORTEGA
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
--------------------------------
(Registrant)
Dated: October 26, 2004 By /s/ Jorge Lutteroth Echegoyen
------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President