UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2006
GRUPO TELEVISA, S.A.
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(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
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(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
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(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
[GRUPO TELEVISA, S.A. LOGO] FOURTH-QUARTER AND FULL-YEAR 2005 RESULTS
FOR IMMEDIATE RELEASE
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HIGHLIGHTS
>> TELEVISION BROADCASTING SALES INCREASED 7.1% IN THE FOURTH QUARTER OF
2005 AND 5.1% DURING 2005; TELEVISION BROADCASTING OIBDA MARGIN
REACHED AN ALL-TIME RECORD OF 47.7% IN 2005
>> FOURTH-QUARTER CONSOLIDATED NET SALES INCREASED 11% AND 8% PRO FORMA
IN 2005
>> CONSOLIDATED OIBDA INCREASED 18.8% IN THE FOURTH QUARTER AND 16% PRO
FORMA IN 2005; CONSOLIDATED OIBDA MARGIN REACHED AN ALL-TIME HIGH OF
40.7% IN 2005
CONSOLIDATED RESULTS
Mexico City, D.F., February 23, 2006--Grupo Televisa, S.A. (NYSE:TV; BMV:
TLEVISA CPO; "Televisa" or "the company") today announced results for the
fourth quarter and the full year 2005. The results have been prepared in
accordance with Mexican GAAP and are adjusted in millions of Mexican pesos
in purchasing power as of December 31, 2005.
The following table sets forth a condensed statement of income in millions
of Mexican pesos, as well as the percentage of net sales that each line
represents, and the percentage change when comparing 2005 with 2004:
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2005 MARGIN % PRO FORMA MARGIN % CHANGE %
2004
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Net sales(1) 32,481.0 100.0 30,080.3 100.0 8.0
Operating income before depreciation and amortization ("OIBDA")(1) 13,221.8 40.7 11,401.4 37.9 16.0
Operating income(1) 10,802.8 33.3 9,053.1 30.1 19.3
Net income 6,125.5 18.9 4,460.6 14.8 37.3
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(1) Effective October 1, 2004, we amended certain agreements in our
publishing distribution segment and changed the accounting treatment of the
recognition of sales and cost of goods sold. This change does not affect
our OIBDA results. In addition, beginning April 1, 2004, we began to
include the consolidated results of Sky Mexico in our consolidated
statements of income. Pro-forma results give effect to these events as if
they occurred beginning January 1, 2004. Please refer to page 9 for
information related to pro-forma results.
Pro-forma net sales increased 8% to Ps.32,481 million in 2005 compared with
Ps.30,080.3 million in 2004. This increase was attributable to revenue
growth in Sky Mexico, television broadcasting, publishing, pay television
networks, cable television, radio, publishing distribution, and other
businesses, and was partially offset by lower sales in our programming
exports segment.
Pro-forma consolidated OIBDA increased 16% to Ps.13,221.8 million in 2005
compared with Ps.11,401.4 million in 2004. OIBDA margin reached an all-time
high of 40.7%, up from a pro-forma margin of 37.9% reported last year due
to higher sales, which were partially offset by higher cost of sales and
operating expenses. In addition, pro-forma consolidated operating income
rose 19.3% to Ps.10,802.8 million in 2005 compared with Ps.9,053.1 million
in 2004.
Net income increased 37.3% to Ps.6,125.5 million in 2005 compared with
Ps.4,460.6 million in 2004. The net increase of Ps.1,664.9 million
reflected i) a Ps.2,234.6 million increase in OIBDA, ii) a Ps.178.5 million
decrease in restructuring and non-recurring charges, iii) a Ps.68 million
decrease in other expense, net, iv) a Ps.444.3 million decrease in income
taxes, and v) a Ps.549.5 million decrease in cumulative loss effect of
accounting change. These favorable changes were partially offset by i) a
Ps.274.8 million increase in depreciation and amortization, ii) a Ps.215.4
million increase in integral cost of financing, iii) a Ps.475.3 million
decrease in equity income of affiliates, and iv) a Ps.844.5 million
increase in minority interest.
FOURTH-QUARTER RESULTS BY BUSINESS SEGMENT
The following table presents fourth-quarter results ended December 31, 2005
and 2004, for each of our business segments. Amounts are presented in
millions of Mexican pesos in purchasing power as of December 31, 2005.
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NET SALES 4Q 2005 % 4Q 2004 % INC. %
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Television broadcasting 5,844.6 59.0 5,459.0 61.4 7.1
Pay television networks 322.7 3.2 218.8 2.5 47.5
Programming exports 492.0 5.0 507.9 5.7 (3.1)
Publishing 752.9 7.6 660.7 7.4 14.0
Publishing distribution 106.1 1.1 102.4 1.2 3.6
Sky Mexico 1,558.1 15.7 1,280.4 14.4 21.7
Cable television 389.9 3.9 304.5 3.4 28.0
Radio 107.8 1.1 96.8 1.1 11.4
Other businesses 333.0 3.4 259.2 2.9 28.5
SEGMENT NET SALES 9,907.1 100.0 8,889.7 100.0 11.4
Intersegment operations(1) (255.2) (243.8) (4.7)
Disposed operations(2) - 48.6 -
CONSOLIDATED NET SALES 9,651.9 8,694.5 11.0
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OIBDA (LOSS) 4Q 2005 MARGIN % 4Q 2004 MARGIN % INC. %
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Television broadcasting 2,899.2 49.6 2,555.9 46.8 13.4
Pay television networks 172.4 53.4 81.2 37.1 112.3
Programming exports 185.7 37.7 204.6 40.3 (9.2)
Publishing 178.6 23.7 161.7 24.5 10.5
Publishing distribution 4.3 4.1 (12.8) (12.5) -
Sky Mexico 686.5 44.1 483.5 37.8 42.0
Cable television 171.5 44.0 96.3 31.6 78.1
Radio 25.1 23.3 20.7 21.4 21.3
Other businesses (104.1) (31.3) (3.9) (1.5) -
Corporate expenses (51.1) (0.5) (41.6) (0.5) (22.8)
SEGMENT OIBDA 4,168.1 42.1 3,545.6 39.9 17.6
Disposed operations(2) - - (37.3) (76.7) -
CONSOLIDATED OIBDA 4,168.1 43.2 3,508.3 40.4 18.8
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OPERATING INCOME (LOSS) 4Q 2005 MARGIN % 4Q 2004 MARGIN % INC. %
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Television broadcasting 2,644.1 45.2 2,306.3 42.2 14.6
Pay television networks 166.3 51.5 74.5 34.0 123.2
Programming exports 184.6 37.5 202.8 39.9 (9.0)
Publishing 172.4 22.9 152.4 23.1 13.1
Publishing distribution (1.0) (0.9) (18.7) (18.3) 94.7
Sky Mexico 393.8 25.3 291.2 22.7 35.2
Cable television 83.6 21.4 (14.7) (4.8) -
Radio 20.5 19.0 15.5 16.0 32.3
Other businesses (116.6) (35.0) 12.3 4.7 -
Corporate expenses (51.1) (0.5) (41.6) (0.5) (22.8)
SEGMENT OPERATING INCOME 3,496.6 35.3 2,980.0 33.5 17.3
Disposed operations(2) - - (44.2) (90.9) -
CONSOLIDATED OPERATING INCOME 3,496.6 36.2 2,935.8 33.8 19.1
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1 For segment reporting purposes, intersegment operations are included
in each of the segment operations.
2 Reflects the results of operations of the company's nationwide paging
and sports businesses.
FULL-YEAR, PRO-FORMA RESULTS BY BUSINESS SEGMENT
The following table sets forth full-year and pro-forma results ended
December 31, 2005 and 2004, for each of our business segments. Amounts are
presented in millions of Mexican pesos in purchasing power as of December
31, 2005.
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NET SALES(1) 2005 % PRO-FORMA % INC. %
2004
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Television broadcasting 18,570.8 55.4 17,671.9 57.6 5.1
Pay television networks 1,111.2 3.3 827.5 2.7 34.3
Programming exports 1,875.9 5.6 1,981.2 6.5 (5.3)
Publishing 2,505.5 7.5 2,163.1 7.0 15.8
Publishing distribution 402.2 1.2 381.1 1.2 5.5
Sky Mexico 5,986.5 17.9 4,928.0 16.1 21.5
Cable television 1,405.1 4.2 1,165.5 3.8 20.6
Radio 344.7 1.0 305.6 1.0 12.8
Other businesses 1,324.3 3.9 1,266.3 4.1 4.6
SEGMENT NET SALES 33,526.2 100.0 30,690.2 100.0 9.2
Intersegment operations(2) (1,045.2) (891.0) (17.3)
Disposed operations(3) - 281.1 -
CONSOLIDATED NET SALES 32,481.0 30,080.3 8.0
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OIBDA (LOSS)(1) 2005 MARGIN % PRO-FORMA MARGIN % INC. %
2004
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Television broadcasting 8,852.6 47.7 8,018.8 45.4 10.4
Pay television networks 518.1 46.6 308.5 37.3 67.9
Programming exports 668.7 35.6 756.1 38.2 (11.6)
Publishing 480.1 19.2 438.9 20.3 9.4
Publishing distribution 6.6 1.6 (26.2) (6.9) 125.2
Sky Mexico 2,516.8 42.0 1,797.4 36.5 40.0
Cable television 489.6 34.8 368.4 31.6 32.9
Radio 52.2 15.1 32.8 10.7 59.1
Other businesses (180.4) (13.6) (91.9) (7.3) (96.3)
Corporate expenses (182.5) (0.5) (161.2) (0.5) (13.2)
SEGMENT OIBDA 13,221.8 39.4 11,441.6 37.3 15.6
Disposed operations(3) - - (40.2) (14.3) -
CONSOLIDATED OIBDA 13,221.8 40.7 11,401.4 37.9 16.0
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OPERATING INCOME (LOSS)(1) 2005 MARGIN % PRO-FORMA MARGIN % INC. %
2004
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Television broadcasting 7,834.9 42.2 6,945.1 39.3 12.8
Pay television networks 492.2 44.3 287.0 34.7 71.5
Programming exports 664.2 35.4 748.7 37.8 (11.3)
Publishing 454.0 18.1 414.6 19.2 9.5
Publishing distribution (15.2) (3.8) (50.0) (13.1) 69.6
Sky Mexico 1,571.8 26.3 1,007.4 20.4 56.0
Cable television 175.6 12.5 76.8 6.6 128.6
Radio 32.8 9.5 13.3 4.4 146.6
Other businesses (225.0) (17.0) (147.1) (11.6) (53.0)
Corporate expenses (182.5) (0.5) (161.2) (0.5) (13.2)
SEGMENT OPERATING INCOME 10,802.8 32.2 9,134.6 29.8 18.3
Disposed operations(3) - - (81.5) (29.0) -
CONSOLIDATED OPERATING INCOME 10,802.8 33.3 9,053.1 30.1 19.3
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1 Effective October 1, 2004, we amended certain agreements in our
publishing distribution segment and changed the accounting treatment
of the recognition of sales and cost of goods sold. This change does
not affect our OIBDA results. In addition, beginning April 1, 2004, we
began to include the consolidated results of Sky Mexico in our
consolidated statements of income. Pro-forma results give effect to
these events as if they occurred beginning January 1, 2004. Please
refer to page 9 for information related to pro-forma results.
2 For segment reporting purposes, intersegment operations are included
in each of the segment operations.
3 Reflects the results of operations of the company's nationwide paging
and sports businesses.
TELEVISION FOURTH-QUARTER SALES increased 7.1% compared with
BROADCASTING the same period of last year. FULL-YEAR SALES
increased 5.1% to Ps.18,570.8 million compared with
Ps.17,671.9 million in 2004. The annual increase was
attributable to higher advertising revenues, driven
mainly by our telenovelas and reality shows, as well
as by higher local sales.
FOURTH-QUARTER OIBDA increased 13.4%, and OIBDA
margin reached 49.6%. FULL-YEAR OIBDA increased
10.4% to Ps.8,852.6 million, and OIBDA margin
reached an all-time high of 47.7%, reflecting higher
sales and a marginal increase in cost of sales and
operating expenses.
PAY TELEVISION FOURTH-QUARTER SALES increased 47.5% compared with
NETWORKS the same period of last year. FULL-YEAR SALES
increased 34.3% to Ps.1,111.2 million compared with
Ps.827.5 million in 2004. The annual increase
reflects i) sales of Ps.81 million in TuTV, our
pay-television joint venture with Univision; ii)
higher revenues from channels sold in Mexico and
Latin America; and iii) higher advertising sales.
FOURTH-QUARTER OIBDA rose 112.3%, and OIBDA margin
reached 53.4%. FULL-YEAR OIBDA increased 67.9% to
Ps.518.1 million, and OIBDA margin reached 46.6%.
These results were driven by higher sales, which
were partially offset by an increase in cost of
sales and operating expenses. TuTV contributed
Ps.33.8 million to OIBDA in 2005.
PROGRAMMING FOURTH-QUARTER SALES decreased 3.1% compared with
EXPORTS the same period of last year. FULL-YEAR SALES
decreased 5.3% to Ps.1,875.9 million compared with
Ps.1,981.2 million in 2004. The annual decrease
reflects i) a negative translation effect on
foreign-currency-denominated sales, which amounted
to Ps.151.9 million; and ii) lower programming sales
in Europe. These decreases were partially offset by
i) a 4.6% increase in the royalties paid to the
company under the Univision Program License
Agreement, which amounted to US$109.8 million in
2005 compared with US$105 million in 2004; and ii)
higher programming sales to Asia and Africa.
FOURTH-QUARTER OIBDA decreased 9.2%, and OIBDA
margin came in at 37.7%. FULL-YEAR OIBDA decreased
11.6% to Ps.668.7 million, and OIBDA margin
decreased to 35.6% from 38.2% in 2004 due to lower
sales and higher operating expenses, which were
partially offset by lower cost of sales.
PUBLISHING FOURTH-QUARTER SALES increased 14% compared with the
same period of last year. FULL-YEAR SALES increased
15.8% to Ps.2,505.5 million compared with Ps.2,163.1
million in 2004. The annual increase reflects higher
magazine circulation and an increase in advertising
pages sold both in Mexico and abroad. These
increases were partially offset by the negative
translation effect of foreign-currency-denominated
sales amounting to Ps.59.6 million.
FOURTH-QUARTER OIBDA rose 10.5%, and OIBDA margin
reached 23.7%. FULL-YEAR OIBDA increased 9.4% to
Ps.480.1 million, and OIBDA margin was 19.2%, driven
by higher sales, which were partially offset by
higher cost of sales and operating expenses.
PUBLISHING FOURTH-QUARTER SALES increased 3.6% compared with
DISTRIBUTION the same period of last year. FULL-YEAR SALES
increased 5.5% to Ps.402.2 million compared with
Ps.381.1 million in 2004. The annual increase
reflects i) higher circulation, in Mexico and
abroad, of magazines published by the company; and
ii) higher circulation in Mexico of magazines
published by third parties. These increases were
partially offset by the negative translation effect
of foreign-currency-denominated sales, which
amounted to Ps.15.8 million.
FOURTH-QUARTER OIBDA increased to Ps.4.3 million,
and OIBDA margin reached 4.1%. FULL-YEAR OIBDA rose
to Ps.6.6 million, and OIBDA margin reached 1.6%,
driven by higher sales and lower operating expenses,
which were partially offset by higher cost of sales.
SKY MEXICO FOURTH-QUARTER SALES increased 21.7% compared with
the same period of last year. FULL-YEAR SALES
increased 21.5% to Ps.5,986.5 million compared with
Ps.4,928 million in 2004. The annual increase was
attributable to a 24.7% increase in the subscriber
base and revenues from pay-per-view, primarily from
non-recurring sports events broadcasted on an
exclusive basis. As of December 31, 2005, the number
of gross active subscribers reached 1,250,600
(including 70,100 commercial subscribers), compared
with 1,002,500 gross active subscribers (including
60,700 commercial subscribers) last year.
FOURTH-QUARTER OIBDA increased 42%, and OIBDA margin
reached 44.1%. FULL-YEAR OIBDA increased 40% to
Ps.2,516.8 million, and OIBDA margin reached 42%.
These results came from higher sales, which were
partially offset by higher cost of sales and
operating expenses.
In addition, during the fourth quarter Sky Mexico
recognized a benefit for its cumulative tax-loss
carryforwards as of December 31, 2005 (by reversing
a related valuation allowance recognized in prior
years), in connection with its expected taxable
income position for the next coming years and in
accordance with Mexican GAAP Bulletin D-4, which is
similar to Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes."
In February 2006, Sky Mexico ("Innova") and its
partners completed the previously disclosed
transactions by which affiliates of The DIRECTV
Group, Inc. (which is 34% owned by News
Corporation), acquired the direct and indirect
equity interests in Innova formerly held by News
Corporation and Liberty Media. Accordingly, Televisa
and DIRECTV currently own 52.7% and 47.3%,
respectively, of the equity of Innova. In addition,
Televisa has the right to acquire two-thirds of the
equity interest that DIRECTV acquired from Liberty
Media. If Televisa elects to acquire this interest,
then Televisa and DIRECTV would own 58.7% and 41.3%,
respectively, of Innova's equity.
CABLE FOURTH-QUARTER SALES increased 28% compared with the
TELEVISION same period of last year. FULL-YEAR SALES increased
20.6% to Ps.1,405.1 million compared with Ps.1,165.5
million in 2004. The annual increase was
attributable to i) an 18.9% increase in the
subscriber base, which, as of December 31, 2005,
reached 422,088 (including 283,207 digital
subscribers) compared with last year's subscriber
base of 355,017 (including 122,975 digital
subscribers); ii) a 130.4% increase in broadband
subscribers to 60,986 compared with 26,466 reported
last year; and iii) a 6% rate increase in
Cablevision video service packages effective March
1, 2005.
FOURTH-QUARTER OIBDA increased 78.1%, and OIBDA
margin reached 44%. FULL-YEAR OIBDA increased 32.9%
to Ps.489.6 million, and OIBDA margin reached 34.8%.
These results reflected higher sales, which were
partially offset by higher cost of sales and
operating expenses.
RADIO FOURTH-QUARTER SALES increased 11.4% compared with
the same period of last year. FULL-YEAR SALES
increased 12.8% to Ps.344.7 million compared with
Ps.305.6 million in 2004. The annual increase came
from higher advertising time sold, mainly in our
news and sports programs, as well as from sales
generated by our affiliation agreement with
Radiorama.
FOURTH-QUARTER OIBDA increased 21.3%, and OIBDA
margin reached 23.3%. FULL-YEAR OIBDA increased
59.1% to Ps.52.2 million, and OIBDA margin reached
15.1%. These results reflected higher sales, which
were partially offset by higher cost of sales and
operating expenses.
OTHER FOURTH-QUARTER SALES increased 28.5% compared with
BUSINESSES the same period of last year. FULL-YEAR SALES
increased 4.6% to Ps.1,324.3 million compared with
Ps.1,266.3 million in 2004. The annual increase was
attributable to higher sales in our sports business,
as well as in our Esmas.com internet portal,
including sales related to our SMS messaging
service. These increases were partially offset by
lower sales in our feature-film distribution
business.
FOURTH-QUARTER OPERATING LOSS before depreciation
and amortization increased to Ps.104.1 million.
FULL-YEAR OPERATING LOSS before depreciation and
amortization increased to Ps.180.4 million compared
with Ps.91.9 million in 2004. These results were
attributable to higher cost of sales and operating
expenses, which were partially offset by higher
sales.
NON-OPERATING RESULTS
INTEGRAL COST OF FINANCING
The following table sets forth full-year integral cost of financing ended
December 31, 2005 and 2004, in millions of Mexican pesos in purchasing
power as of December 31, 2005, which consisted of:
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2005 2004 INCREASE
(DECREASE)
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Interest expense 2,134.5 2,165.2 (30.7)
Interest income (932.1) (678.4) (253.7)
Foreign exchange loss, net 727.6 95.2 632.4
Gain from monetary position, net (147.9) (15.3) (132.6)
1,782.1 1,566.7 215.4
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The expense attributable to the integral cost of financing increased by
Ps.215.4 million, or 13.7%, to Ps.1,782.1 million in 2005 compared with
Ps.1,566.7 million in 2004. This increase reflected primarily a Ps.632.4
million increase in net foreign-exchange loss resulting primarily from the
difference between the spot rate and the foreign-exchange rate of the
coupon swaps entered into by us to swap into fixed Mexican pesos up to five
years of US-dollar-denominated coupons of a portion of our
US-dollar-denominated outstanding indebtedness, in conjunction with a 4.69%
appreciation of the Mexican peso against the US dollar in 2005 compared
with a 0.68% appreciation of the Mexican peso against the US dollar in
2004. This unfavorable variance was partially offset by i) a Ps.30.7
million decrease in interest expense, due primarily to a net decrease in
the average amount of our total consolidated debt; ii) a Ps.253.7 million
increase in interest income in connection with a higher average amount of
temporary investments and higher interest rates in 2005 compared with last
year; and iii) a Ps.132.6 million increase in gain from monetary position
resulting primarily from a higher net liability position in 2005 compared
with 2004, which was partially offset by lower annual inflation in 2005
(3.33%) compared with 2004 (5.19%).
RESTRUCTURING AND NON-RECURRING CHARGES
Restructuring and non-recurring charges decreased by Ps.178.5 million, or
43.7%, to Ps.229.9 million in 2005 compared with Ps.408.4 million in 2004.
This decrease reflected primarily the recognition in 2004 of non-recurring
impairment adjustments to the carrying value of certain goodwill and
trademarks, as well as a decrease in 2005 of restructuring charges in
connection with work-force reductions. These favorable variances were
partially offset by certain non-recurrent expenses incurred in connection
with the prepayment in March 2005 of a portion of our UDI-denominated Notes
due 2007 and our Senior Notes due 2011.
OTHER EXPENSE, NET
Other expense, net, decreased by Ps.68 million, or 12.8%, to Ps.464.2
million in 2005, compared with Ps.532.2 million in 2004. This decrease
reflected primarily a lower expense in donations and advisory and
professional services.
INCOME TAX
Income tax decreased by Ps.444.3 million, or 36.6%, to Ps.771.2 million in
2005 compared with Ps.1,215.5 million in 2004. This decrease reflected a
favorable effect in consolidated deferred income tax, primarily in
conjunction with the benefit for cumulative tax-loss carryforwards
recognized by Sky Mexico at December 31, 2005, as a result of the expected
taxable income position of Sky Mexico for the next few years.
EQUITY IN INCOME OF AFFILIATES
Equity in income of affiliates decreased by Ps.475.3 million, or 74.8%, to
Ps.160.2 million in 2005 compared with Ps.635.5 million in 2004. This
decrease reflected primarily the absence of the equity income recognized in
2004 due to the reversal of previous equity losses recognized in excess of
our investment in Sky Multi-Country Partners ("MCOP") in connection with
the release of our guarantee of satellite transponder payments of MCOP. The
decrease is also the result of a reduction in equity income of Univision
and Ocesa Entretenimiento, our live-entertainment joint venture with
Corporacion Interamericana de Entretenimiento, in which we have a 40%
equity participation.
CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE
In 2005, this line reflected i) the cumulative loss effect of Ps.323.7
million in connection with the accrual for share-based compensation expense
at December 31, 2005, for benefits granted to executives and employees
under the terms of our Stock Purchase Plan and Long-Term Retention Plan, as
a result of the adoption, as of that date, of the International Financial
Reporting Standard 2, "Share-based Payment," issued by the International
Accounting Standards Board; and ii) the cumulative loss effect of Ps.182.4
million, net of an income-tax benefit of Ps.78.2 million, at January 1,
2005, in connection with the adoption, as of that date, of the guidelines
for recognition of severance payments in revised Bulletin D-3, "Labor
Obligations," issued by the Mexican Institute of Public Accountants.
In 2004, this line reflected the cumulative loss effect of Ps.1,055.6
million, net of an income-tax benefit of Ps.319.4 million, in connection
with the consolidation of Sky Mexico in our financial statements beginning
April 1, 2004, as a result of the adoption, as of that date, of Financial
Accounting Standards Board Interpretation No. 46, "Consolidation of
Variable Interest Entities," issued by the US Financial Accounting
Standards Board.
MINORITY INTEREST
Minority interest in consolidated net income increased by Ps.844.5 million
to Ps.1,084 million in 2005 compared with Ps.239.5 million in 2004. This
increase reflected primarily the portion of net income attributable to the
interest held by minority shareholders in Sky Mexico, which we began
consolidating in our financial statements in April 2004.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES AND INVESTMENTS
In 2005 our capital expenditures totaled US$248.3 million, including
US$51.1 million for our cable television segment, US$109.2 million for Sky
Mexico, and US$88 million for our television broadcasting and other
business units. In addition, in the fourth quarter of 2005, we made a
capital contribution of US$25 million in Volaris, a new, low-cost-carrier
airline with a concession to operate in Mexico. Volaris will begin
operations in March 2006.
DEBT
The following table sets forth in millions of Mexican pesos our total
consolidated debt, as well as Sky Mexico's satellite transponder lease
obligation as of December 31, 2005 and 2004:
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2005 2004 INCREASE
(DECREASE)
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Current portion of long-term debt 340.5 3,407.0 (3,066.5)
Long-term debt (excluding current portion) 18,137.2 19,575.1 (1,437.9)
18,477.7 22,982.1 (4,504.4)
Current portion of satellite transponder lease obligation 75.6 73.1 2.5
Long-term satellite transponder lease obligation
(excluding current portion) 1,186.9 1,368.8 (181.9)
1,262.5 1,441.9 (179.4)
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As of December 31, 2005 and 2004, our consolidated net debt was Ps.3,698.6
million and Ps.5,786.2 million, respectively.
SHARE BUYBACK PROGRAM
From January 1 through December 31, 2005, we repurchased approximately 31.2
million CPOs for Ps.1,043.6 million in nominal terms. During 2006,
year-to-date, we have repurchased approximately 2.2 million CPOs for
Ps.95.4 million in nominal terms.
ADVERTISING SALES PLAN
As of December 31, 2005, we had received aggregate upfront advertising
deposits for television advertising of approximately Ps.14,232.7 million in
nominal terms, representing a 2% increase in real terms compared with the
prior year. Approximately 57.5% of the advance deposits as of December 31,
2005, were in the form of short-term, non-interest-bearing notes receivable
maturing the following year, with the remainder consisting of cash
deposits. The weighted-average maturity of these notes was 3.1 months.
TELEVISION RATINGS AND AUDIENCE SHARE
National urban ratings and audience share reported by IBOPE confirm that,
in 2005, Televisa continued to deliver strong ratings and audience shares.
During weekday prime time (19:00 to 23:00, Monday to Friday), audience
share amounted to 69%; in prime time (16:00 to 23:00, Monday to Sunday),
audience share amounted to 68.5%; and in sign-on to sign-off (6:00 to
24:00, Monday to Sunday), audience share amounted to 70.2%. In 2005,
Televisa aired 87% of the top-100 rated programs.
OUTLOOK FOR 2006
In our television broadcasting business, we expect high-single-digit sales
growth and OIBDA margin reaching 49% for the full-year 2006. On a
consolidated basis, we expect our OIBDA margin to exceed 40% for the
full-year 2006.
ABOUT TELEVISA
Grupo Televisa, S.A. is the largest media company in the Spanish-speaking
world and a major participant in the international entertainment business.
It has interests in television production and broadcasting, production of
pay-television networks, international distribution of television
programming, direct-to-home satellite services, publishing and publishing
distribution, cable television, radio production and broadcasting,
professional sports and live entertainment, feature-film production and
distribution, and the operation of a horizontal internet portal. Grupo
Televisa also owns an unconsolidated equity stake in Univision, the leading
Spanish-language media company in the United States.
DISCLAIMER
This press release contains forward-looking statements regarding the
Company's results and prospects. Actual results could differ materially
from these statements. The forward-looking statements in this press release
should be read in conjunction with the factors described in "Item 3. Key
Information - Forward-Looking Statements" in the Company's Annual Report on
Form 20-F, which, among others, could cause actual results to differ
materially from those contained in forward-looking statements made in this
press release and in oral statements made by authorized officers of the
Company. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
The pro-forma information is presented for informational purposes only and
does not purport to represent what our financial position or results of
operations would have been had recognition of sales and cost of goods sold
been realized during the specified periods. Furthermore, the reader should
not rely on the pro-forma information as an indication of the results of
operations of future periods.
(Please see attached tables for financial information and ratings data)
###
INVESTOR RELATIONS CONTACTS MEDIA RELATIONS CONTACT:
MICHEL BOYANCE / ALEJANDRO EGUILUZ MANUEL COMPEAN
Grupo Televisa, S.A. Grupo Televisa, S.A.
Av. Vasco de Quiroga No. 2000 Blvd. Adolfo Lopez Mateos No. 2551
Colonia Santa Fe Col. Lomas de San Angel Inn
01210 Mexico, D.F. 01790 Mexico, D.F.
Tel: (5255) 5261-2000 Tel: (5255) 5728 3815
Fax: (5255)5261-2494 Fax: (5255) 5728 3632
ir@televisa.com.mx mcompean@televisa.com.mx
------------------ ------------------------
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2005 AND 2004
(MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2005)
December 31, December 31,
2005 2004
(Unaudited) (Audited(1))
------------------------ ------------------------
ASSETS
Current:
Available:
Cash Ps. 544.6 Ps. 403.5
Temporary investments 14,234.5 16,792.4
------------------------ ------------------------
14,779.1 17,195.9
Trade notes and accounts receivable, net 13,896.3 11,604.2
Other accounts and notes receivable, net 728.2 1,171.9
Due from affiliated companies, net - 79.0
Transmission rights and programming 3,120.5 3,713.7
Inventories 638.3 684.9
Other current assets 578.1 734.7
------------------------ ------------------------
Total current assets 33,740.5 35,184.3
Transmission rights and programming(2) 3,921.0 4,641.4
Investments 7,572.0 6,982.9
Property, plant, and equipment, net 19,728.5 19,798.1
Intangible assets and deferred charges, net 10,013.3 9,461.8
Other assets 19.7 277.5
------------------------ ------------------------
Total assets Ps. 74,995.0 Ps. 76,346.0
======================== ========================
1 The December 31, 2004 amounts were taken from our audited consolidated
financial statements as of December 31, 2004, and restated to December
31, 2005 constant Mexican pesos.
2 Excluding current portion.
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2005 AND 2004
(MILLIONS OF MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2005)
December 31, December 31,
2005 2004
(Unaudited) (Audited(1))
------------------------ -----------------------
LIABILITIES
Current:
Current portion of long-term debt Ps. 340.5 Ps. 3,407.0
Current portion of satellite transponder
lease obligation 75.6 73.1
Trade accounts payable 2,954.7 2,206.4
Customer deposits and advances 15,538.2 15,427.9
Taxes payable 1,055.8 1,610.7
Accrued interest 334.6 464.4
Other accrued liabilities 1,580.9 1,313.1
Due to affiliated companies, net 455.9 -
------------------------ -----------------------
Total current liabilities 22,336.2 24,502.6
Long-term debt(2) 18,137.2 19,575.1
Satellite transponder lease obligation(2) 1,186.9 1,368.8
Customer deposits and advances(2) 2,508.2 385.3
Other long-term liabilities 461.4 611.7
Deferred taxes 323.2 1,378.5
Labor obligations 192.2 -
------------------------ -----------------------
Total liabilities 45,145.3 47,822.0
------------------------ -----------------------
STOCKHOLDERS' EQUITY
Majority interest:
Capital stock issued 9,889.5 9,889.5
Additional paid-in capital 4,212.4 4,212.4
------------------------ -----------------------
14,101.9 14,101.9
------------------------ -----------------------
Retained earnings:
Legal reserve 1,798.4 1,575.4
Reserve for repurchase of shares 5,744.6 5,744.6
Unappropriated earnings 11,834.2 11,918.0
Accumulated other comprehensive loss (3,560.7) (2,644.3)
Net income for the year 6,125.5 4,460.6
------------------------ -----------------------
21,942.0 21,054.3
------------------------ -----------------------
Shares repurchased (7,045.1) (6,507.6)
------------------------ -----------------------
Total majority interest 28,998.8 28,648.6
Minority interest 850.9 (124.6)
------------------------ -----------------------
Total stockholders' equity 29,849.7 28,524.0
------------------------ -----------------------
Total liabilities and stockholders' equity Ps. 74,995.0 Ps. 76,346.0
======================== =======================
1 The December 31, 2004 amounts were taken from our audited consolidated
financial statements as of December 31, 2004, and restated to December
31, 2005 constant Mexican pesos.
2 Excluding current portion.
GRUPO TELEVISA, S.A.
CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND
TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(Millions of Mexican pesos in purchasing power as of December 31, 2005)
Three months ended December 31, Twelve months ended December 31,
2005 2004 2005 2004
(Unaudited) (Unaudited(2)) (Unaudited) (Audited(1,2))
--------------- -------------- -------------- ---------------
Net sales Ps. 9,651.9 Ps. 8,694.5 Ps. 32,481.0 Ps. 30,291.2
Cost of sales 4,201.6 4,108.4 14,752.4 15,328.1
--------------- -------------- -------------- ---------------
Gross profit 5,450.3 4,586.1 17,728.6 14,963.1
--------------- -------------- -------------- ---------------
Operating expenses:
Selling 765.8 630.4 2,665.4 2,274.4
Administrative 516.4 447.4 1,841.4 1,701.5
--------------- -------------- -------------- ---------------
1,282.2 1,077.8 4,506.8 3,975.9
--------------- -------------- -------------- ---------------
Operating income before depreciation
and amortization 4,168.1 3,508.3 13,221.8 10,987.2
Depreciation and amortization 671.5 572.5 2,419.0 2,144.2
--------------- -------------- -------------- ---------------
Operating income 3,496.6 2,935.8 10,802.8 8,843.0
--------------- -------------- -------------- ---------------
Integral cost of financing:
Interest expense 535.0 712.1 2,134.5 2,165.2
Interest income (192.7) (191.0) (932.1) (678.4)
Foreign exchange loss, net 136.6 74.1 727.6 95.2
Gain from monetary position, net (160.7) (126.9) (147.9) (15.3)
--------------- -------------- -------------- ---------------
318.2 468.3 1,782.1 1,566.7
--------------- -------------- -------------- ---------------
Restructuring and non-recurring charges (credits) 21.8 (11.1) 229.9 408.4
--------------- -------------- -------------- ---------------
Other expense, net 96.4 74.5 464.2 532.2
--------------- -------------- -------------- ---------------
Income before taxes 3,060.2 2,404.1 8,326.6 6,335.7
--------------- -------------- -------------- ---------------
Income tax and assets tax (benefit) provision (460.0) 382.2 751.3 1,208.8
Employees' profit sharing 15.2 2.4 19.9 6.7
--------------- -------------- -------------- ---------------
(444.8) 384.6 771.2 1,215.5
--------------- -------------- -------------- ---------------
Income before equity in results of affiliates,
cumulative effect of accounting change,
and minority interest 3,505.0 2,019.5 7,555.4 5,120.2
Equity in (loss) income of affiliates, net (17.1) 53.1 160.2 635.5
Cumulative effect of accounting change, net (323.7) 5.4 (506.1) (1,055.6)
Minority interest (647.2) (179.3) (1,084.0) (239.5)
--------------- -------------- -------------- ---------------
Net income Ps. 2,517.0 Ps. 1,898.7 Ps. 6,125.5 Ps. 4,460.6
=============== ============== ============== ===============
1 Beginning April 1, 2004, we began to include the consolidated results
of Sky Mexico in our consolidated statements of income; therefore, the
figures for the twelve months ended December 31, 2004, include
consolidated results of Sky Mexico only for the nine months ended
December 31, 2004.
2 The figures for the twelve months ended December 31, 2004, were taken
from our audited consolidated financial statements as of December 31,
2004, and restated to December 31, 2005 constant Mexican pesos. As a
result, certain lines in the consolidated statements of income for the
three and twelve months ended December 31, 2004, were restated from
those previously reported.
NATIONAL URBAN RATINGS AND AUDIENCE SHARE FOR FIRST, SECOND, THIRD, AND
FOURTH QUARTERS OF 2005(1):
SIGN-ON TO SIGN-OFF - 6:00 TO 24:00, MONDAY TO SUNDAY
--------------------------------------------------------------------------------------------------------------------------
JAN FEB MAR 1Q05 APR MAY JUN 2Q05 JUL AUG SEP 3Q05 OCT NOV DEC 4Q05 2005
--------------------------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 11.3 11.6 11.3 11.4 11.3 10.8 10.6 10.9 11.0 11.3 11.8 11.4 11.9 11.7 10.7 11.4 11.3
Share (%) 30.5 30.8 30.0 30.4 30.0 28.7 28.3 29.0 29.3 30.5 32.1 30.6 31.8 31.3 30.7 31.2 30.3
TOTAL TELEVISA(2)
Rating 26.0 27.1 26.8 26.6 26.3 26.3 25.6 26.1 26.3 26.1 25.8 26.1 26.3 26.3 24.7 25.8 26.1
Share (%) 70.5 71.7 71.3 71.2 69.8 69.8 68.2 69.3 69.9 70.1 70.2 70.1 70.2 70.4 70.8 70.5 70.2
--------------------------------------------------------------------------------------------------------------------------
PRIME TIME - 16:00 TO 23:00, MONDAY TO SUNDAY(3)
------------------------------------------------------------------------------------------------------------------------------
JAN FEB MAR 1Q05 APR MAY JUN 2Q05 JUL AUG SEP 3Q05 OCT NOV DEC 4Q05 2005
------------------------------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 16.8 17.5 17.1 17.1 16.8 16.0 16.1 16.3 17.0 17.1 17.6 17.2 17.4 17.7 15.9 17.0 16.9
Share (%) 31.1 31.7 31.7 31.5 31.5 29.9 30.3 30.5 31.9 32.3 33.4 32.5 32.6 32.8 32.0 32.5 31.8
TOTAL TELEVISA(2)
Rating 37.1 38.3 37.3 37.6 36.4 36.2 35.3 36.0 36.9 36.5 36.3 36.6 36.6 36.8 34.2 35.9 36.5
Share (%) 68.7 69.5 69.2 69.1 68.1 67.6 66.4 67.3 69.1 68.7 69.0 68.9 68.5 68.5 68.7 68.6 68.5
------------------------------------------------------------------------------------------------------------------------------
WEEKDAY PRIME TIME - 19:00 TO 23:00, MONDAY TO FRIDAY(3)
---------------------------------------------------------------------------------------------------------------------------
JAN FEB MAR 1Q05 APR MAY JUN 2Q05 JUL AUG SEP 3Q05 OCT NOV DEC 4Q05 2005
---------------------------------------------------------------------------------------------------------------------------
CHANNEL 2
Rating 22.0 23.7 22.5 22.7 22.6 20.3 22.1 21.7 24.5 21.2 21.1 22.3 22.2 22.1 20.6 21.7 22.1
Share (%) 34.9 36.8 36.4 36.0 37.3 33.8 36.7 35.9 39.9 35.9 36.0 37.3 36.1 35.5 35.3 35.7 36.2
TOTAL TELEVISA(2)
Rating 43.9 45.7 44.0 44.6 43.0 42.3 41.6 42.3 43.9 40.7 39.7 41.4 41.2 40.5 38.5 40.1 42.1
Share (%) 69.6 70.8 71.2 70.5 70.8 70.4 69.2 70.1 71.5 68.8 67.7 69.3 67.1 65.1 65.8 66.0 69.0
---------------------------------------------------------------------------------------------------------------------------
(1) National urban ratings and audience share are certified by IBOPE and
are based upon IBOPE's national surveys, which are calculated seven days a
week, in Mexico City, Guadalajara, Monterrey, and 25 other cities with a
population of more than 400,000 people. "Ratings" for a period refers to
the number of television sets tuned into the company's programs as a
percentage of the total number of all television households. "Audience
share" is the number of television sets tuned into the company's programs
as a percentage of the number of households watching conventional
over-the-air television during that period, without regard to the number of
viewers.
(2) "Total Televisa" includes the company's four networks as well as all
local affiliates (including affiliates of Channel 4, most of which receive
only a portion of their daily programming from Channel 4). Programming on
affiliates of Channel 4 is generally broadcast in 12 of the 28 cities
covered by national surveys. Programming on Channel 9 affiliates is
broadcast in all of the cities covered by national surveys.
(3) "Televisa Prime Time" is the time during which the company generally
charges its highest rates for its networks.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
--------------------------------
(Registrant)
Dated: February 24, 2006 By /s/ Jorge Lutteroth Echegoyen
------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice-President