kr6kpress_grupo.htm
 
 

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

FORM 6-K
 
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of February, 2016
 
GRUPO TELEVISA, S.A.B.
(Translation of registrant’s name into English)
 
 
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F.
(Address of principal executive offices)
 
 
(Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.)
 
Form 20-F
x
Form 40-F
    
 
 
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).)
 
Yes
 
No
  
x
 
 
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).)
 
 
Yes
 
No
  
x
          
 
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE:  TLEVISA
QUARTER: 04
YEAR: 2015
GRUPO TELEVISA, S.A.B.
 
 
 
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2014
(THOUSANDS OF MEXICAN PESOS)
 
 
CONSOLIDATED
 
Final Printing
 
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
END OF PREVIOUS YEAR
AMOUNT
AMOUNT
10000000
TOTAL ASSETS
281,473,754
235,551,941
11000000
CURRENT ASSETS
89,938,076
79,802,176
11010000
CASH AND CASH EQUIVALENTS
49,397,126
29,729,350
11020000
SHORT-TERM INVESTMENTS
5,330,448
4,788,585
11020010
 
FINANCIAL INSTRUMENTS AVAILABLE FOR SALE
0
0
11020020
 
FINANCIAL INSTRUMENTS FOR NEGOTIATION
0
0
11020030
 
FINANCIAL INSTRUMENTS HELD TO MATURITY
5,330,448
4,788,585
11030000
CUSTOMER (NET)
21,702,128
21,087,163
11030010
 
CUSTOMER
25,381,633
24,115,607
11030020
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-3,679,505
-3,028,444
11040000
OTHER ACCOUNTS RECEIVABLE (NET)
4,394,456
3,627,944
11040010
 
OTHER ACCOUNTS RECEIVABLE
4,640,463
3,807,705
11040020
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-246,007
-179,761
11050000
INVENTORIES
1,628,276
3,336,667
11051000
BIOLOGICAL ASSETS CURRENT
0
0
11060000
OTHER CURRENT ASSETS
7,485,642
17,232,467
11060010
 
ADVANCE PAYMENTS
1,448,627
1,403,526
11060020
 
DERIVATIVE FINANCIAL INSTRUMENTS
0
2,894
11060030
 
ASSETS AVAILABLE FOR SALE
0
10,583,852
11060050
 
RIGHTS AND LICENSING
0
0
11060060
 
OTHER
6,037,015
5,242,195
12000000
NON-CURRENT ASSETS
191,535,678
155,749,765
12010000
ACCOUNTS RECEIVABLE (NET)
0
8,000
12020000
INVESTMENTS
50,353,375
39,742,319
12020010
 
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
9,271,901
5,032,447
12020020
 
HELD-TO-MATURITY DEBT SECURITIES
134,034
461,047
12020030
 
OTHER AVAILABLE- FOR- SALE INVESTMENTS
40,915,820
34,217,140
12020040
 
OTHER
31,620
31,685
12030000
PROPERTY, PLANT AND EQUIPMENT (NET)
76,089,277
62,009,508
12030010
 
BUILDINGS
15,793,905
15,073,870
12030020
 
MACHINERY AND INDUSTRIAL EQUIPMENT
108,023,203
87,791,190
12030030
 
OTHER EQUIPMENT
10,240,540
8,924,050
12030040
 
ACCUMULATED DEPRECIATION
-67,907,362
-57,539,568
12030050
 
CONSTRUCTION IN PROGRESS
9,938,991
7,759,966
12040000
INVESTMENT PROPERTIES
0
0
12050000
NON-CURRENT BIOLOGICAL ASSETS
0
0
12060000
INTANGIBLE ASSETS (NET)
38,106,325
28,778,414
12060010
 
GOODWILL
14,112,626
9,322,773
12060020
 
TRADEMARKS
2,522,959
2,501,227
12060030
 
RIGHTS AND LICENSING
1,877,769
1,998,695
12060031
 
CONCESSIONS
15,719,572
11,345,717
12060040
 
OTHER
3,873,399
3,610,002
12070000
DEFERRED TAX ASSETS
17,665,086
16,080,292
12080000
OTHER NON-CURRENT ASSETS
9,321,615
9,131,232
12080001
 
ADVANCE PAYMENTS
0
0
12080010
 
DERIVATIVE FINANCIAL INSTRUMENTS
0
0
12080020
 
EMPLOYEE BENEFITS
0
0
12080021
 
ASSETS AVAILABLE FOR SALE
0
0
12080040
 
DEFERRED ASSETS (NET)
0
0
12080050
 
OTHER
9,321,615
9,131,232
20000000
TOTAL LIABILITIES
181,951,977
147,636,860
21000000
CURRENT LIABILITIES
48,978,050
44,370,122
21010000
BANK LOANS
2,979,847
337,148
21020000
STOCK MARKET LOANS
0
0
21030000
OTHER INTEREST BEARING LIABILITIES
511,556
502,166
21040000
SUPPLIERS
17,361,484
17,142,044
21050000
TAXES PAYABLE
2,878,836
2,497,697
21050010
 
INCOME TAXES PAYABLE
1,632,795
1,389,321
21050020
 
OTHER TAXES PAYABLE
1,246,041
1,108,376
21060000
OTHER CURRENT LIABILITIES
25,246,327
23,891,067
21060010
 
INTEREST PAYABLE
1,184,221
974,904
21060020
 
DERIVATIVE FINANCIAL INSTRUMENTS
1,402
0
21060030
 
DEFERRED INCOME
20,470,380
20,150,744
21060050
 
EMPLOYEE BENEFITS
1,034,446
1,005,255
21060060
 
PROVISIONS
570,772
245,962
21060061
 
LIABILITIES RELATED TO CURRENT AVAILABLE FOR SALE ASSETS
0
0
21060080
 
OTHER
1,985,106
1,514,202
22000000
NON-CURRENT LIABILITIES
132,973,927
103,266,738
22010000
BANK LOANS
4,501,843
10,633,627
22020000
STOCK MARKET LOANS
102,928,921
70,026,876
22030000
OTHER INTEREST BEARING LIABILITIES
5,293,559
4,807,379
22040000
DEFERRED TAX LIABILITIES
10,000,048
7,763,024
22050000
OTHER NON-CURRENT LIABILITIES
10,249,556
10,035,832
22050010
 
DERIVATIVE FINANCIAL INSTRUMENTS
225,660
335,102
22050020
 
DEFERRED INCOME
514,531
284,000
22050040
 
EMPLOYEE BENEFITS
407,179
287,159
22050050
 
PROVISIONS
52,884
54,462
22050051
 
LIABILITIES RELATED TO NON-CURRENT AVAILABLE FOR SALE ASSETS
0
0
22050070
 
OTHER
9,049,302
9,075,109
30000000
STOCKHOLDERS' EQUITY
99,521,777
87,915,081
30010000
CONTROLLING INTEREST
87,382,935
76,804,977
30030000
SOCIAL CAPITAL
4,978,126
4,978,126
30040000
SHARES REPURCHASED
-11,882,248
-12,647,475
30050000
PREMIUM ON ISSUANCE OF SHARES
15,889,819
15,889,819
30060000
CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
0
0
30070000
OTHER CAPITAL CONTRIBUTED
0
0
30080000
RETAINED EARNINGS (ACCUMULATED LOSSES)
73,139,684
62,905,444
30080010
 
LEGAL RESERVE
2,139,007
2,139,007
30080020
 
OTHER RESERVES
0
0
30080030
 
RETAINED EARNINGS
63,148,332
58,845,619
30080040
 
NET INCOME FOR THE YEAR
10,899,135
5,386,905
30080050
 
OTHER
-3,046,790
-3,466,087
30090000
OTHER ACCUMULATED COMPREHENSIVE RESULTS (NET OF TAX)
5,257,554
5,679,063
30090010
 
EARNINGS PER PROPERTY REASSESSMENT
0
0
30090020
 
ACTUARIAL EARNINGS (LOSS) FOR LABOR OBLIGATIONS
-126,845
35,422
30090030
 
RESULT FOR FOREIGN CURRENCY CONVERSION
972,154
348,429
30090040
 
CHANGES IN THE VALUATION OF AVAILABLE FOR SALE FINANCIAL ASSETS
1,942,053
1,998,313
30090050
 
CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS
-153,264
-171,351
30090060
 
CHANGES IN FAIR VALUE OF OTHER ASSETS
2,312,227
3,176,726
30090070
 
PARTICIPATION IN OTHER COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES
311,229
291,524
30090080
 
OTHER COMPREHENSIVE RESULT
0
0
30020000
NON-CONTROLLING INTEREST
12,138,842
11,110,104
 
DATA INFORMATION
AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2014
(THOUSANDS OF MEXICAN PESOS)
 
     
CONSOLIDATED
     
Final Printing
REF
CONCEPTS
CURRENT YEAR
END OF PREVIOUS YEAR
AMOUNT
AMOUNT
91000010
FOREIGN CURRENCY LIABILITIES SHORT-TERM
7,121,880
8,809,573
91000020
FOREIGN CURRENCY LIABILITIES LONG-TERM
77,625,963
49,578,152
91000030
CAPITAL STOCK NOMINAL
2,494,410
2,494,410
91000040
RESTATEMENT OF CAPITAL STOCK
2,483,716
2,483,716
91000050
PENSIONS  AND SENIORITY PREMIUMS
6,116,095
2,107,375
91000060
NUMBER OF EXECUTIVES (*)
77
70
91000070
NUMBER OF EMPLOYEES (*)
43,887
39,545
91000080
NUMBER OF WORKERS (*)
0
0
91000090
NUMBER OF OUTSTANDING SHARES (*)
338,468,382,759
338,056,218,201
91000100
NUMBER OF REPURCHASED SHARES (*)
23,961,504,372
24,373,668,930
91000110
RESTRICTED CASH (1)
0
0
91000120
DEBT OF NON-CONSOLIDATED COMPANIES GUARANTEED
0
0
 
(1) THIS CONCEPT MUST BE COMPLETED WHEN GUARANTEES HAVE BEEN PROVIDED AFFECTING CASH AND CASH EQUIVALENTS
(*) DATA IN UNITS
 
 



STATEMENTS OF COMPREHENSIVE INCOME
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2015 AND 2014
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
40010000
NET INCOME
88,051,829
24,951,128
80,118,352
24,020,205
40010010
 
SERVICES
67,452,100
19,444,320
61,764,168
19,152,459
40010020
 
SALE OF GOODS
2,415,371
706,514
2,204,680
604,251
40010030
 
INTEREST
0
0
0
0
40010040
 
ROYALTIES
7,097,435
1,942,197
6,058,932
1,631,619
40010050
 
DIVIDENDS
0
0
0
0
40010060
 
LEASE
11,086,923
2,858,097
10,090,572
2,631,876
40010061
 
CONSTRUCTION
0
0
0
0
40010070
 
OTHER
0
0
0
0
40020000
COST OF SALES
47,226,544
13,329,830
42,908,647
12,663,069
40021000
GROSS PROFIT (LOSS)
40,825,285
11,621,298
37,209,705
11,357,136
40030000
GENERAL EXPENSES
21,751,683
6,155,597
17,971,608
5,288,565
40040000
INCOME (LOSS) BEFORE OTHER INCOME AND EXPENSES, NET
19,073,602
5,465,701
19,238,097
6,068,571
40050000
OTHER INCOME AND (EXPENSE), NET
-328,477
-363,435
-5,281,690
-521,852
40060000
OPERATING INCOME (LOSS)
18,745,125
5,102,266
13,956,407
5,546,719
40070000
FINANCE INCOME
8,542,542
261,867
2,613,705
983,005
40070010
 
INTEREST INCOME
1,027,758
261,567
1,327,691
435,747
40070020
 
FOREIGN EXCHANGE GAIN, NET
0
0
0
0
40070030
 
DERIVATIVES GAIN, NET
116,464
0
515,073
547,258
40070040
 
EARNINGS FROM CHANGES IN FAIR VALUE OF FINANCIAL INSTRUMENTS
5,262,577
300
770,941
0
40070050
 
OTHER
2,135,743
0
0
0
40080000
FINANCE EXPENSE
8,665,398
2,208,849
6,942,630
2,519,746
40080010
 
INTEREST EXPENSE
6,239,387
1,673,878
5,551,461
1,494,565
40080020
 
FOREIGN EXCHANGE LOSS, NET
2,426,011
458,381
1,391,169
1,025,181
40080030
 
DERIVATIVES LOSS, NET
0
76,590
0
0
40080050
 
LOSS FROM CHANGES IN FAIR VALUE OF FINANCIAL INSTRUMENTS
0
0
0
0
40080060
 
OTHER
0
0
0
0
40090000
FINANCE INCOME (EXPENSE) NET
-122,856
-1,946,982
-4,328,925
-1,536,741
40100000
PARTICIPATION IN THE RESULTS OF ASSOCIATES AND JOINT VENTURES
35,399
303,636
13,173
-34,366
40110000
INCOME (LOSS) BEFORE INCOME TAXES
18,657,668
3,458,920
9,640,655
3,975,612
40120000
INCOME TAXES
6,332,218
1,471,752
2,980,883
1,313,995
40120010
 
INCOME TAX, CURRENT
7,380,430
1,600,370
5,043,053
1,928,123
40120020
 
INCOME TAX, DEFERRED
-1,048,212
-128,618
-2,062,170
-614,128
40130000
INCOME (LOSS) FROM CONTINUING OPERATIONS
12,325,450
1,987,168
6,659,772
2,661,617
40140000
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,   NET
0
0
0
0
40150000
NET INCOME (LOSS)
12,325,450
1,987,168
6,659,772
2,661,617
40160000
NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
1,426,315
415,963
1,272,867
157,363
40170000
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
10,899,135
1,571,205
5,386,905
2,504,254
           
40180000
NET INCOME (LOSS) PER BASIC SHARE  
3.77
0.54
1.87
0.87
40190000
NET INCOME (LOSS) PER DILUTED SHARE  
3.52
0.51
1.74
0.81
 
 
 
STATEMENTS OF COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME (NET OF INCOME TAXES)
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2015 AND 2014
(THOUSANDS OF MEXICAN PESOS)
 
 
CONSOLIDATED
Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
40200000
NET INCOME (LOSS) 
12,325,450
1,987,168
6,659,772
2,661,617
 
ITEMS NOT TO BE RECLASSIFIED INTO RESULTS 
 
 
 
 
40210000
EARNINGS PER PROPERTY REASSESSMENT 
0
0
0
0
40220000
ACTUARIAL EARNINGS (LOSS) FOR LABOR OBLIGATIONS  
-166,044
-166,044
-27,811
-27,811
40220100
PARTICIPATION IN RESULTS FOR REVALUATION OF PROPERTIES OF ASSOCIATES AND JOINT VENTURES
0
0
0
0
 
ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED INTO RESULTS
 
 
 
 
40230000
RESULT FOR FOREIGN CURRENCY CONVERSION 
705,474
171,358
340,906
339,870
40240000
CHANGES IN THE VALUATION OF AVAILABLE FOR SALE FINANCIAL ASSETS
-56,260
-588
835,191
-258,997
40250000
CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS
18,087
20,590
-30,407
-9,855
40260000
CHANGES IN FAIR VALUE OF OTHER ASSETS 
-864,499
2,241,151
1,178,760
482,220
40270000
PARTICIPATION IN OTHER COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES
19,705
17,313
25,664
20,660
40280000
OTHER COMPREHENSIVE INCOME 
0
0
0
0
40290000
TOTAL OTHER COMPREHENSIVE INCOME 
-343,537
2,283,780
2,322,303
546,087
 
  
 
 
 
 
40300000
COMPREHENSIVE INCOME (LOSS) 
11,981,913
4,270,948
8,982,075
3,207,704
40320000
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
1,504,287
424,565
1,310,158
205,500
40310000
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
10,477,626
3,846,383
7,671,917
3,002,204
 
STATEMENTS OF COMPREHENSIVE INCOME
DATA INFORMATION
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2015 AND 2014
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
92000010
OPERATING DEPRECIATION AND AMORTIZATION
14,660,929
3,921,106
11,563,085
3,381,788
 
 
 
STATEMENTS OF COMPREHENSIVE INCOME
DATA INFORMATION (TWELVE MONTHS)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014
(THOUSANDS OF MEXICAN PESOS)


CONSOLIDATED
Final Printing
REF
ACCOUNT / SUBACCOUNT
YEAR
CURRENT
PREVIOUS
92000030
NET INCOME (**)
88,051,829
80,118,352
92000040
OPERATING INCOME (LOSS) (**)
18,745,125
13,956,407
92000060
NET INCOME (LOSS) (**)
12,325,450
6,659,772
92000050
CONTROLLING INTEREST NET INCOME (LOSS) (**)
10,899,135
5,386,905
92000070
OPERATING DEPRECIATION AND AMORTIZATION (**)
14,660,929
11,563,085
 
(**) INFORMATION FOR THE LAST TWELVE MONTHS
 
STATEMENTS OF CASH FLOWS (INDIRECT METHOD)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2014
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
AMOUNT
AMOUNT
OPERATING ACTIVITIES
50010000
INCOME (LOSS) BEFORE INCOME TAXES
18,657,668
9,640,655
50020000
 + (-) ITEMS NOT REQUIRING CASH
1,683,275
1,198,465
50020010
  
 + ESTIMATES FOR THE PERIOD
1,644,904
1,040,954
50020020
 
 + PROVISIONS FOR THE PERIOD
0
0
50020030
 
 + (-) OTHER UNREALIZED ITEMS
38,371
157,511
50030000
 + (-) ITEMS RELATED TO INVESTING ACTIVITIES
8,440,647
13,108,401
50030010
  
 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD
14,660,929
11,563,085
50030020
 
 (-) + GAIN OR LOSS ON SALE OF PROPERTY, PLANT AND EQUIPMENT
688,706
715,786
50030030
 
 + (-) LOSS (REVERSION) IMPAIRMENT
131,065
253,279
50030040
 
 (-) + EQUITY IN RESULTS OF AFFILIATES AND JOINT VENTURES
(35,399)
(13,173)
50030050
 
 (-) DIVIDENDS RECEIVED
0
0
50030060
 
 (-) INTEREST INCOME
(678,912)
(417,777)
50030070
 
 (-) FOREIGN EXCHANGE FLUCTUATION
(4,359,325)
(3,374,483)
50030080
 
 (-) + OTHER ITEMS
(1,966,417)
4,381,684
50040000
 + (-) ITEMS RELATED TO FINANCING ACTIVITIES
10,811,445
10,618,223
50040010
 
 (+) ACCRUED INTEREST
6,239,387
5,551,461
50040020
 
 (+) FOREIGN EXCHANGE FLUCTUATION
8,392,196
5,507,988
50040030
 
 (+) FINANCIAL OPERATIONS OF DERIVATIVES
(5,319,803)
(1,286,014)
50040040
 
 + (-) OTHER ITEMS
1,499,665
844,788
50050000
CASH FLOW BEFORE INCOME TAX
39,593,035
34,565,744
50060000
CASH FLOWS PROVIDED OR USED IN OPERATION
(8,307,459)
(6,102,805)
50060010
 
 + (-) DECREASE (INCREASE) IN CUSTOMERS
(2,120,569)
(1,213,774)
50060020
 
 + (-) DECREASE (INCREASE) IN INVENTORIES
1,169,751
(1,244,721)
50060030
 
 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLES AND OTHER ASSETS
(349,801)
(224,752)
50060040
 
 + (-) INCREASE (DECREASE) IN SUPPLIERS
63,873
4,795,769
50060050
 
 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES
752,946
(4,097,970)
50060060
 
 + (-) INCOME TAXES PAID OR RETURNED
(7,823,659)
(4,117,357)
50070000
NET CASH FLOWS FROM OPERATING ACTIVITIES
31,285,576
28,462,939
INVESTING ACTIVITIES
50080000
NET CASH FLOWS FROM INVESTING ACTIVITIES
(23,781,560)
(22,739,509)
50080010
 
 (-) PERMANENT INVESTMENTS IN SHARES
(450,460)
0
50080020
 
 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES
76,335
0
50080030
 
 (-) INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT
(25,524,145)
(17,004,358)
50080040
 
 + SALE OF PROPERTY, PLANT AND EQUIPMENT
107,215
480,601
50080050
 
 (-) TEMPORARY INVESTMENTS
(89,552)
(447,117)
50080060
 
 + DISPOSITION OF TEMPORARY INVESTMENTS
378,499
513,134
50080070
 
 (-) INVESTMENT IN INTANGIBLE ASSETS
(1,095,464)
(794,476)
50080080
 
 + DISPOSITION OF INTANGIBLE ASSETS
0
0
50080090
 
 (-) BUSINESS ACQUISITIONS
0
0
50080100
 
 + BUSINESS DISPOSITIONS
10,335,813
0
50080110
 
 + DIVIDEND RECEIVED
0
0
50080120
 
 + INTEREST RECEIVED
0
0
50080130
 
 + (-) DECREASE (INCREASE) IN ADVANCES AND LOANS TO THIRD PARTIES
0
0
50080140
 
 + (-) OTHER ITEMS
(7,519,801)
(5,487,293)
FINANCING ACTIVITIES
50090000
NET CASH FLOWS FROM FINANCING ACTIVITIES
12,032,925
7,230,849
50090010
 
 + BANK FINANCING
2,487,936
2,078,433
50090020
 
 + STOCK MARKET FINANCING
24,609,131
18,388,714
50090030
 
 + OTHER FINANCING
0
0
50090040
 
 (-) BANK FINANCING AMORTIZATION
(6,788,941)
(6,836,043)
50090050
 
 (-) STOCK MARKET FINANCING AMORTIZATION
0
0
50090060
 
 (-) OTHER FINANCING AMORTIZATION
(405,151)
(446,944)
50090070
 
 + (-) INCREASE (DECREASE) IN CAPITAL STOCK
0
0
50090080
 
 (-) DIVIDENDS PAID
(1,084,192)
0
50090090
 
 + PREMIUM ON ISSUANCE OF SHARES
0
0
50090100
 
 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
0
0
50090110
 
 (-) INTEREST EXPENSE
(5,938,679)
(5,200,696)
50090120
 
 (-) REPURCHASE OF SHARES
(733,831)
(1,064,602)
50090130
 
 +  (-) OTHER ITEMS
(113,348)
311,987
 
 
 
 
 
50100000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
19,536,941
12,954,279
50110000
CHANGES IN THE VALUE OF CASH AND CASH EQUIVALENTS
130,835
83,038
50120000
CASH AND CASH EQUIVALENTS AT BEGINING OF PERIOD
29,729,350
16,692,033
50130000
CASH AND CASH EQUIVALENTS AT END OF PERIOD
49,397,126
29,729,350
 
 
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
 Final Printing
 
CONCEPTS
CAPITAL STOCK
SHARES REPURCHASED
ADDITIONAL PAID-IN CAPITAL
CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
OTHER CAPITAL CONTRIBUTED
RETAINED EARNINGS OR ACCUMULATED LOSSES
ACCUMULATED OTHER COMPREHENSIVE INCOME (NET OF INCOME TAX)
CONTROLLING INTEREST
NON-CONTROLLING INTEREST
TOTAL STOCKHOLDERS' EQUITY
  
RESERVES
RETAINED EARNINGS (ACCUMULATED LOSSES)
  
BALANCE AT JANUARY 1, 2014
4,978,126
-12,848,448
15,889,819
0
0
2,139,007
54,758,879
3,394,051
68,311,434
10,267,999
78,579,433
  
 
 
 
 
 
 
 
 
 
 
 
 
  
RETROSPECTIVE ADJUSTMENT
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
APPLICATION OF OTHER COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
 
 
 
  
TO RETAINED EARNINGS
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
ESTABLISHMENT OF RESERVES
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
DIVIDENDS DECLARED
0
0
0
0
0
0
0
0
0
-468,248
-468,248
  
 
 
 
 
 
 
 
 
 
 
 
 
  
(DECREASE) INCREASE OF CAPITAL
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
REPURCHASE OF SHARES
0
-1,064,602
0
0
0
0
0
0
-1,064,602
0
-1,064,602
  
 
 
 
 
 
 
 
 
 
 
 
 
  
(DECREASE) INCREASE IN ADDITIONAL PAID-IN
    
 
 
 
 
 
 
 
 
 
  
CAPITAL
0
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
(DECREASE) INCREASE IN NON-CONTROLLING
 
 
 
 
 
 
 
 
 
 
 
  
INTEREST
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
OTHER
0
1,265,575
0
0
0
0
620,653
0
1,886,228
195
1,886,423
  
 
 
 
 
 
 
 
 
 
 
 
 
  
COMPREHENSIVE INCOME
0
0
0
0
0
0
5,386,905
2,285,012
7,671,917
1,310,158
8,982,075
  
 
 
 
 
 
 
 
 
 
 
 
 
  
BALANCE AT  DECEMBER 31, 2014
4,978,126
-12,647,475
15,889,819
0
0
2,139,007
60,766,437
5,679,063
76,804,977
11,110,104
87,915,081
  
BALANCE AT JANUARY 1, 2015
4,978,126
-12,647,475
15,889,819
0
0
2,139,007
60,766,437
5,679,063
76,804,977
11,110,104
87,915,081
  
 
 
 
 
 
 
 
 
 
 
 
 
  
RETROSPECTIVE ADJUSTMENT
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
APPLICATION OF OTHER COMPREHENSIVE
 
 
 
 
 
 
 
 
 
 
 
  
INCOME TO RETAINED EARNINGS
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
 0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
ESTABLISHMENT OF RESERVES
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
  
DIVIDENDS DECLARED
0
0
0
0
0
0
-1,084,192
0
-1,084,192
-379,639
-1,463,831
  
 
 
 
 
 
 
 
 
 
 
 
 
  
(DECREASE) INCREASE OF CAPITAL
0
0
0
0
0
0
0
0
0
-95,500
-95,500
  
 
 
 
 
 
 
 
 
 
 
 
 
  
REPURCHASE OF SHARES
0
-733,831
0
0
0
0
0
0
-733,831
0
-733,831
  
 
 
 
 
 
 
 
 
 
 
 
 
  
(DECREASE) INCREASE IN ADDITIONAL PAID-IN
CAPITAL
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
(DECREASE) INCREASE IN NON-CONTROLLING
INTEREST
0
0
0
0
0
0
0
0
0
0
0
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
OTHER
0
1,499,058
0
0
0
0
419,297
0
1,918,355
-410
1,917,945
  
 
 
 
 
 
 
 
 
 
 
 
 
  
COMPREHENSIVE INCOME
0
0
0
0
0
0
10,899,135
-421,509
10,477,626
1,504,287
11,981,913
  
 
 
 
 
 
 
 
 
 
 
 
 
  
BALANCE AT  DECEMBER 31, 2015
4,978,126
-11,882,248
15,889,819
0
0
2,139,007
71,000,677
5,257,554
87,382,935
12,138,842
99,521,777
  
 
 
 
MEXICAN STOCK EXCHANGE

STOCK EXCHANGE CODE: TLEVISA
 
QUARTER: 04
YEAR: 2015
       
GRUPO TELEVISA, S.A.B.      
                                                                                                                      
 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
CONSOLIDATED
Final Printing

MEXICO CITY, D.F., FEBRUARY 25, 2016—GRUPO TELEVISA, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “TELEVISA” OR “THE COMPANY”), TODAY ANNOUNCED RESULTS FOR FULL YEAR AND FOURTH QUARTER 2015. THE RESULTS HAVE BEEN PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”).

THE FOLLOWING INFORMATION SETS FORTH CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014, IN MILLIONS OF MEXICAN PESOS, AS WELL AS THE PERCENTAGE THAT EACH LINE REPRESENTS OF NET SALES AND THE PERCENTAGE CHANGE WHEN COMPARING 2015 WITH 2014:

NET SALES

NET SALES INCREASED BY 9.9% TO PS.88,051.8 MILLION IN 2015 COMPARED WITH PS.80,118.4 MILLION IN 2014. THIS INCREASE WAS ATTRIBUTABLE TO STRONG GROWTH IN OUR SKY AND TELECOMMUNICATIONS SEGMENTS. OPERATING SEGMENT INCOME INCREASED 10.6%, REACHING PS.35,695.3 MILLION WITH A MARGIN OF 39.6% IN 2015 COMPARED WITH PS.32,279.7 MILLION WITH A MARGIN OF 39.6% IN 2014.

NET INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY

NET INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY AMOUNTED TO PS.10,899.1 MILLION FOR THE YEAR ENDED DECEMBER 31, 2015, COMPARED WITH A NET INCOME OF PS.5,386.9 MILLION FOR THE YEAR ENDED DECEMBER 31, 2014. THE NET INCREASE OF PS.5,512.2 MILLION REFLECTED (I) A PS.4,953.2 MILLION DECREASE IN OTHER EXPENSE, NET; AND (II) A PS.4,206.0 MILLION DECREASE IN FINANCE EXPENSE, NET. THESE FAVORABLE VARIANCES WERE PRIMARILY OFFSET BY A PS.3,351.3 MILLION INCREASE IN INCOME TAXES.

FULL YEAR RESULTS AND FOURTH QUARTER RESULTS  BY BUSINESS SEGMENT

THE FOLLOWING INFORMATION PRESENTS FULL YEAR CONSOLIDATED RESULTS ENDED DECEMBER 31, 2015 AND 2014, AND FOURTH QUARTER CONSOLIDATED RESULTS ENDED DECEMBER 31, 2015 AND 2014  FOR EACH OF OUR BUSINESS SEGMENTS.  CONSOLIDATED RESULTS ARE PRESENTED IN MILLIONS OF MEXICAN PESOS:

CONTENT

FOURTH QUARTER SALES DECREASED BY 3.3% TO PS.10,763.4 MILLION COMPARED WITH PS.11,128.9 MILLION IN FOURTH QUARTER 2014.

FULL YEAR SALES DECREASED BY 1.5% TO PS.34,332.6 MILLION COMPARED WITH PS.34,868.1 MILLION IN 2014.

ADVERTISING

ADVERTISING FOURTH QUARTER REVENUE DECREASED BY 11.0% TO PS.7,687.3 MILLION COMPARED WITH PS.8,633.0 MILLION IN FOURTH QUARTER 2014. DURING THE QUARTER WE CONTINUED WITH OUR EFFORTS TO RESTRUCTURE OUR ADVERTISING SALES BUSINESS, WHICH CONSIST MAINLY OF REPRICING OUR ADVERTISING INVENTORY.

ADVERTISING FULL YEAR REVENUE DECREASED BY 9.6% TO PS.23,029.3 MILLION COMPARED WITH PS.25,465.7 MILLION IN 2014 ALSO AS A RESULT OF THE RESTRUCTURING OF OUR ADVERTISING SALES BUSINESS.

NETWORK SUBSCRIPTION REVENUE

FOURTH QUARTER NETWORK SUBSCRIPTION REVENUE INCREASED BY 27.0% TO PS.984.9 MILLION COMPARED TO PS.775.8 MILLION IN FOURTH QUARTER 2014.

FULL YEAR NETWORK SUBSCRIPTION REVENUE INCREASED BY 26.0% TO PS.3,595.4 MILLION COMPARED WITH PS.2,854.4 MILLION IN 2014. THE GROWTH IN THE FOURTH QUARTER AND IN THE FULL YEAR WAS DRIVEN MAINLY BY THE SUSTAINED ADDITION OF PAY-TV SUBSCRIBERS, BOTH IN MEXICO AND LATIN AMERICA AND A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY DENOMINATED REVENUES. DURING THE YEAR, TELEVISA CONTINUED TO PRODUCE AND TRANSMIT SEVERAL OF THE LEADING PAY-TV NETWORKS IN MEXICO IN KEY CATEGORIES, INCLUDING GENERAL ENTERTAINMENT, MUSIC AND LIFESTYLE, AND MOVIES. TEN OF THE TOP 30 PAY-TV NETWORKS IN MEXICO WERE PRODUCED BY TELEVISA.

LICENSING AND SYNDICATION

FOURTH QUARTER LICENSING AND SYNDICATION REVENUE INCREASED BY 21.6% TO PS.2,091.2 MILLION COMPARED TO PS.1,720.1 MILLION IN FOURTH QUARTER 2014. FOURTH QUARTER ROYALTIES FROM UNIVISION INCREASED BY 4.4% TO US$80.9 MILLION IN THE FOURTH QUARTER 2015 FROM US$77.5 MILLION IN THE FOURTH QUARTER 2014 AND FOR THE FULL YEAR ROYALTIES FROM UNIVISION REACHED US$311.1 MILLION.

THE FULL YEAR INCREASE IN LICENSING AND SYNDICATION REVENUE OF 17.7% TO PS.7,707.9 MILLION COMPARED WITH PS.6,548.0 MILLION IN 2014, IS MAINLY EXPLAINED BY A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED REVENUES.

IN THE AGGREGATE FOR THE FULL YEAR, THE CONTENT SEGMENT RESULTS REFLECT A POSITIVE TRANSLATION EFFECT ON FOREIGN-CURRENCY-DENOMINATED SALES THAT AMOUNTED TO PS.1,369.5 MILLION.

FOURTH QUARTER OPERATING SEGMENT INCOME FOR OUR CONTENT SEGMENT DECREASED BY 11.3% TO PS.4,555.0 MILLION COMPARED WITH PS.5,134.6 MILLION IN FOURTH QUARTER 2014; THE MARGIN WAS 42.3%.

FULL-YEAR OPERATING SEGMENT INCOME FOR OUR CONTENT SEGMENT DECREASED BY 6.2% TO PS.14,564.2 MILLION COMPARED WITH PS.15,534.3 MILLION IN 2014. THE MARGIN WAS 42.4%. THE DECREASE IN THE MARGIN BY 220 BASIS POINTS FROM 2014 IS MAINLY EXPLAINED BY LOWER ADVERTISING REVENUES AS A RESULT OF THE RESTRUCTURING OF THIS BUSINESS.

SKY

FOURTH QUARTER SALES INCREASED BY 11.7% TO PS.5,012.5 MILLION COMPARED WITH PS.4,489.4 MILLION IN FOURTH QUARTER 2014. DURING THE QUARTER, SKY ADDED A TOTAL OF 230,431 SUBSCRIBERS.

FULL YEAR SALES INCREASED BY 10.0% TO PS.19,253.5 MILLION COMPARED WITH PS.17,498.6 MILLION IN 2014. THE ANNUAL INCREASE WAS DRIVEN BY SOLID GROWTH IN THE SUBSCRIBER BASE OF MORE THAN 646 THOUSAND, WHICH IS EXPLAINED BY THE CONTINUED SUCCESS OF SKY’S LOW-COST OFFERING. AS OF DECEMBER 31, 2015, THE NUMBER OF NET ACTIVE SUBSCRIBERS INCREASED TO 7,284,162 (INCLUDING 178,915 COMMERCIAL SUBSCRIBERS), COMPARED WITH 6,638,032 (INCLUDING 174,986 COMMERCIAL SUBSCRIBERS) AS OF DECEMBER 31, 2014. SKY CLOSED THE YEAR WITH 192,024 SUBSCRIBERS IN CENTRAL AMERICA AND THE DOMINICAN REPUBLIC.

FOURTH QUARTER OPERATING SEGMENT INCOME INCREASED BY 8.4% TO PS.2,217.1 MILLION COMPARED WITH PS.2,044.7 MILLION IN FOURTH QUARTER 2014, AND THE MARGIN WAS 44.2%.

FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 9.3% TO PS.8,972.3 MILLION COMPARED WITH PS.8,211.3 MILLION IN 2014, AND THE MARGIN WAS 46.6%, IN LINE WITH THE MARGIN FROM LAST YEAR. THE INCREASE IN REVENUES WAS PARTIALLY COMPENSATED BY HIGHER PROGRAMMING COSTS MAINLY AS A RESULT OF THE DEPRECIATION OF THE MEXICAN PESO, AND BY HIGHER MAINTENANCE AND LEASING COSTS, AS WELL AS HIGHER PROMOTIONAL EXPENSES.

TELECOMMUNICATIONS

FOURTH QUARTER SALES INCREASED BY 21.6% TO PS.7,569.9 MILLION COMPARED WITH PS.6,227.8 MILLION IN FOURTH QUARTER 2014 DRIVEN BY GROWTH IN ALL OF OUR CABLE PLATFORMS AND THE CONSOLIDATION, FOR THE FULL QUARTER, OF PS.559.7 MILLION IN REVENUES FROM TELECABLE. EXCLUDING TELECABLE, FOURTH QUARTER SALES FROM OUR CABLE AND NETWORK OPERATIONS INCREASED BY 12.6%.

FULL YEAR SALES INCREASED BY 36.1% TO PS.28,488.3 MILLION COMPARED WITH PS.20,937.3 MILLION IN 2014. THIS INCREASE PRIMARILY REFLECTED THE CONSOLIDATION OF CABLECOM STARTING ON SEPTEMBER 1ST, 2014 AND OF TELECABLE STARTING ON JANUARY 1ST, 2015. EXCLUDING CABLECOM AND TELECABLE, FULL YEAR SALES EXPERIENCED A GROWTH OF 12.5%.

VOICE AND DATA REVENUE GENERATING UNITS, OR RGUS, GREW BY 54.0% AND 34.0% COMPARED WITH 2014, RESPECTIVELY, AND VIDEO RGUS GREW BY 21.0%. EXCLUDING THE ACQUISITION OF TELECABLE, VOICE AND DATA RGUS, GREW BY 46.6% AND 25.4% COMPARED WITH 2014, RESPECTIVELY, WHILE VIDEO RGUS GREW BY 6.3%.

THE FOLLOWING INFORMATION SETS FORTH THE BREAKDOWN OF RGUS PER SERVICE TYPE FOR OUR TELECOMMUNICATIONS SEGMENT AS OF DECEMBER 31, 2015 AND 2014:

THE RGUS OF VIDEO, BROADBAND AND VOICE AS OF DECEMBER 31, 2015 AMOUNTED TO 4,061,655, 3,066,699  AND 1,891,026 RGUS, RESPECTIVELY, AND A TOTAL OF 9,019,380 RGUS.

THE RGUS OF VIDEO, BROADBAND AND VOICE AS OF DECEMBER 31, 2014 AMOUNTED TO 3,356,732, 2,288,709 AND 1,228,182 RGUS, RESPECTIVELY, AND A TOTAL OF 6,873,623 RGUS.

FOURTH QUARTER OPERATING SEGMENT INCOME INCREASED BY 20.6% TO PS.3,010.1 MILLION COMPARED WITH PS.2,495.9 MILLION IN FOURTH QUARTER 2014, AND THE MARGIN REACHED 39.8%. THESE RESULTS REFLECTED THE CONSOLIDATION OF TELECABLE, WHICH CONTRIBUTED WITH PS.251.0 MILLION TO OPERATING SEGMENT INCOME, AND THE CONTINUED GROWTH OF ALL OF OUR CABLE AND NETWORK OPERATIONS. THIS EFFECT WAS PARTIALLY COMPENSATED BY HIGHER PERSONNEL, MAINTENANCE AND PROGRAMMING EXPENSES. EXCLUDING TELECABLE, FOURTH QUARTER OPERATING SEGMENT INCOME INCREASED BY 10.5%.

FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 44.7% TO PS.11,405.6 MILLION COMPARED WITH PS.7,882.9 MILLION IN 2014, AND THE MARGIN REACHED 40.0%, AN INCREASE OF 230 BASIS POINTS FROM 2014. THESE RESULTS PRIMARILY REFLECTED THE CONSOLIDATION OF CABLECOM STARTING ON SEPTEMBER 1ST, 2014 AND OF TELECABLE STARTING ON JANUARY 1ST, 2015, AND CONTINUED GROWTH IN THE CABLE AND NETWORK PLATFORMS. THESE FAVORABLE VARIANCES WERE PARTIALLY OFFSET BY HIGHER PROGRAMMING COSTS MAINLY AS A RESULT OF THE DEPRECIATION OF THE MEXICAN PESO AND BY HIGHER MAINTENANCE, PERSONNEL AND LEASING COSTS AND EXPENSES. EXCLUDING CABLECOM AND TELECABLE, FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 14.9%.

THE FOLLOWING INFORMATION SET FORTH THE BREAKDOWN OF REVENUES AND OPERATING SEGMENT INCOME, EXCLUDING CONSOLIDATION ADJUSTMENTS, FOR OUR CABLE AND NETWORK OPERATIONS FOR 2015 AND 2014.

OUR CABLE OPERATIONS INCLUDE THE VIDEO, VOICE AND DATA SERVICES PROVIDED BY CABLEVISIÓN, CABLEMÁS, TVI, CABLECOM AND TELECABLE. OUR NETWORK OPERATIONS INCLUDE THE SERVICES OFFERED BY BESTEL AND THE NETWORK OPERATIONS OF CABLECOM:

THE REVENUES FOR 2015 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.24,279.5 MILLION AND PS.5,072.6 MILLION, RESPECTIVELY.

THE REVENUES FOR 2014 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.17,497.0 MILLION AND PS.3,987.0 MILLION, RESPECTIVELY.

THE OPERATING SEGMENT INCOME FOR 2015 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.9,781.9 MILLION AND PS.1,944.4 MILLION, RESPECTIVELY.

THE OPERATING SEGMENT INCOME FOR 2014 OF CABLE OPERATIONS  AND NETWORK OPERATIONS AMOUNTED TO PS.6,798.5 MILLION AND PS.1,315.9 MILLION, RESPECTIVELY.

THESE RESULTS DO NOT INCLUDE CONSOLIDATION ADJUSTMENTS OF PS.863.8 MILLION AND PS.546.7 MILLION IN REVENUES IN 2015 AND 2014, RESPECTIVELY, OR PS.320.7 MILLION AND PS.231.5 MILLION IN OPERATING SEGMENT INCOME IN 2015 AND 2014, RESPECTIVELY, WHICH ARE CONSIDERED IN THE CONSOLIDATED RESULTS OF THE TELECOMMUNICATIONS SEGMENT.

OTHER BUSINESSES

FOURTH QUARTER SALES DECREASED BY 9.2% TO PS.2,300.5 MILLION COMPARED WITH PS.2,533.2 MILLION IN FOURTH QUARTER 2014. THE DECREASE IS MAINLY EXPLAINED BY A DROP IN REVENUES FROM OUR FEATURE-FILM DISTRIBUTION AND PUBLISHING BUSINESSES, WHICH WAS PARTIALLY COMPENSATED BY AN INCREASE IN THE REVENUES OF OUR RADIO BUSINESS.

FULL YEAR SALES DECREASED BY 1.0% TO PS.8,124.3 MILLION COMPARED WITH PS.8,204.0 MILLION IN 2014. BUSINESSES THAT PERFORMED WELL INCLUDE GAMING AND RADIO. THE GAMING BUSINESS BENEFITED FROM HIGHER REVENUES FROM OUR ELECTRONIC GAMING MACHINES, WHILE THE RADIO BUSINESS SAW AN INCREASE IN ADVERTISING REVENUES.

FOURTH QUARTER OPERATING SEGMENT INCOME REACHED PS.144.5 MILLION COMPARED WITH PS.197.0 MILLION IN FOURTH QUARTER 2014.

FULL YEAR OPERATING SEGMENT INCOME INCREASED BY 15.7% TO PS.753.2 MILLION COMPARED WITH PS.651.2 MILLION IN 2014, REFLECTING I) AN INCREASE IN THE OPERATING SEGMENT INCOME OF GAMING AND RADIO; II) A DECREASE IN THE OPERATING SEGMENT INCOME OF OUR SOCCER AND FEATURE-FILM DISTRIBUTION BUSINESSES; AND III) A CHANGE FROM OPERATING SEGMENT INCOME TO OPERATING SEGMENT LOSS IN OUR PUBLISHING BUSINESS.

INTERSEGMENT OPERATIONS

INTERSEGMENT OPERATIONS FOR 2015 AND 2014 AMOUNTED TO PS.2,146.9 MILLION AND PS.1,389.6 MILLION, RESPECTIVELY.

INTERSEGMENT OPERATIONS FOR THE FOURTH QUARTER 2015 AND 2014 AMOUNTED TO PS.695.2 MILLION AND PS.359.1 MILLION, RESPECTIVELY.

CORPORATE EXPENSE

CORPORATE EXPENSE INCREASED BY PS.482.3 MILLION, OR 32.6%, TO PS.1,960.8 MILLION IN 2015, FROM PS.1,478.5 MILLION IN 2014. THE INCREASE REFLECTED PRIMARILY A HIGHER SHARE-BASED COMPENSATION EXPENSE.

SHARE-BASED COMPENSATION EXPENSE IN 2015 AND 2014 AMOUNTED TO PS.1,199.5 MILLION AND PS.844.8 MILLION, RESPECTIVELY, AND WAS ACCOUNTED FOR AS CORPORATE EXPENSE. SHARE-BASED COMPENSATION EXPENSE IS MEASURED AT FAIR VALUE AT THE TIME THE EQUITY BENEFITS ARE CONDITIONALLY SOLD TO OFFICERS AND EMPLOYEES, AND IS RECOGNIZED OVER THE VESTING PERIOD. THE INCREASE OF PS.354.7 MILLION REFLECTED PRIMARILY A HIGHER NUMBER OF OUR CPOS CONDITIONALLY SOLD TO OFFICERS AND EMPLOYEES IN OUR TELECOMMUNICATIONS SEGMENT.

OTHER EXPENSE, NET

OTHER EXPENSE, NET, DECREASED BY PS.4,953.2 MILLION TO PS.328.5 MILLION IN 2015, FROM PS.5,281.7 MILLION IN 2014. THIS DECREASE REFLECTED PRIMARILY THE ABSENCE OF A ONE-TIME NON-CASH LOSS OF PS.4,168.5 MILLION ON DISPOSITION OF OUR FORMER 50% JOINT VENTURE IN THE IUSACELL TELECOM BUSINESS IN THE THIRD QUARTER OF 2014, AS WELL AS A NON-RECURRING CASH INCOME OF US$67.6 MILLION (PS.1,038.3 MILLION) AS A RESULT OF THE EARLY TERMINATION OF A TECHNICAL ASSISTANCE AGREEMENT WITH UNIVISION IN THE FIRST QUARTER OF 2015. THESE FAVORABLE EFFECTS WERE PARTIALLY OFFSET BY A HIGHER EXPENSE RELATED TO FINANCIAL ADVISORY AND PROFESSIONAL SERVICES, A NON-RECURRENT SEVERANCE EXPENSE IN CONNECTION WITH DISMISSALS OF PERSONNEL IN OUR CONTENT, TELECOMMUNICATIONS AND OTHER BUSINESSES SEGMENTS, AND A HIGHER LOSS ON DISPOSITION OF PROPERTY AND EQUIPMENT.

NON-OPERATING RESULTS

FINANCE EXPENSE, NET

THE FOLLOWING INFORMATION SETS FORTH THE FINANCE EXPENSE OR INCOME, NET, STATED IN MILLIONS OF MEXICAN PESOS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014:

FINANCE EXPENSE, NET, DECREASED BY PS.4,206.0 MILLION TO PS.122.9 MILLION IN 2015 FROM PS.4,328.9 MILLION IN 2014. THIS DECREASE REFLECTED A PS.6,228.6 MILLION INCREASE IN OTHER FINANCE INCOME, NET, TO PS.7,514.7 MILLION IN 2015 COMPARED WITH PS.1,286.1 MILLION IN 2014, RESULTING  PRIMARILY FROM (I) OUR EXCHANGE IN JULY 2015 OF CONVERTIBLE DEBENTURES ISSUED BY UNIVISION HOLDINGS, INC. OR “UHI” (FORMERLY, BROADCASTING MEDIA PARTNERS, INC.), THE CONTROLLING COMPANY OF UNIVISION, FOR WARRANTS THAT ARE EXERCISABLE FOR UHI’S COMMON STOCK, WHICH INCLUDED, AS A CONSIDERATION FOR SUCH EXCHANGE, A CASH AMOUNT OF US$135.1 MILLION (PS.2,195 MILLION) RECEIVED FROM UHI; AND (II) A PS.4,718.2 MILLION RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME IN CONSOLIDATED EQUITY IN CONNECTION WITH A CUMULATIVE GAIN RELATED TO CHANGES IN FAIR VALUE OF SUCH CONVERTIBLE DEBENTURES, WHICH EFFECT WAS PARTIALLY OFFSET BY THE ABSENCE OF A FAVORABLE CHANGE IN FAIR VALUE IN 2014 RESULTING OF AN EMBEDDED DERIVATIVE RELATED TO OUR FORMER OPTION OF CONVERTING SUCH DEBENTURES INTO AN EQUITY STAKE OF UHI. THIS FAVORABLE VARIANCE IN OTHER FINANCE INCOME NET, WAS PARTIALLY OFFSET BY (I) A PS.687.9 MILLION INCREASE IN INTEREST EXPENSE TO PS.6,239.4 MILLION IN 2015 COMPARED WITH PS.5,551.5 MILLION IN 2014, DUE PRIMARILY TO A HIGHER AVERAGE PRINCIPAL AMOUNT OF DEBT AND FINANCE LEASE OBLIGATIONS IN 2015; (II) A PS.299.9 MILLION DECREASE IN INTEREST INCOME TO PS.1,027.8 MILLION IN 2015 COMPARED WITH PS.1,327.7 MILLION IN 2014, EXPLAINED PRIMARILY BY THE ABSENCE OF INTEREST INCOME FROM OUR FORMER INVESTMENTS IN CONVERTIBLE DEBENTURES ISSUED BY UHI AS THESE SECURITIES WERE EXCHANGED IN JULY 2015 FOR WARRANTS THAT ARE EXERCISABLE FOR UHI’S COMMON STOCK, AND CONVERTIBLE DEBT INSTRUMENTS ISSUED BY TENEDORA ARES, S.A.P.I. DE C.V. AS THESE SECURITIES WERE CONVERTED IN AUGUST 2014 IN CONNECTION WITH THE ACQUISITION OF CABLECOM, AS WELL AS A REDUCTION IN APPLICABLE INTEREST RATES ON CASH EQUIVALENTS AND TEMPORARY INVESTMENTS; AND (III) A PS.1,034.8 MILLION INCREASE IN FOREIGN EXCHANGE LOSS TO PS.2,426.0 MILLION IN 2015 COMPARED WITH PS.1,391.2 MILLION IN 2014, RESULTING PRIMARILY FROM THE EFFECT OF A 16.6% DEPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR ON OUR AVERAGE NET UNHEDGED U.S. DOLLAR LIABILITY POSITION IN 2015 COMPARED WITH A 12.9% DEPRECIATION AND A LOWER U.S. DOLLAR LIABILITY POSITION IN 2014.
 
SHARE OF INCOME OF ASSOCIATES AND JOINT VENTURES, NET

SHARE OF INCOME OF ASSOCIATES AND JOINT VENTURES, NET, INCREASED BY PS.22.2 MILLION TO PS.35.4 MILLION IN 2015 FROM PS.13.2 MILLION IN 2014. THIS INCREASE REFLECTED MAINLY (I) OUR SHARE IN THE INCOME OF IMAGINA, A COMMUNICATIONS COMPANY IN SPAIN; AND (II) THE ABSENCE OF SHARE OF LOSS OF OUR FORMER IUSACELL TELECOM BUSINESS, AS WE DISPOSED OF THIS 50% JOINT VENTURE IN SEPTEMBER 2014. THESE FAVORABLE EFFECTS WERE PARTIALLY OFFSET BY A HIGHER SHARE OF LOSS OF UHI, THE CONTROLLING COMPANY OF UNIVISION.

INCOME TAXES

INCOME TAXES INCREASED BY PS.3,351.3 MILLION TO PS.6,332.2 MILLION IN 2015 COMPARED WITH PS.2,980.9 MILLION IN 2014. THIS INCREASE REFLECTED PRIMARILY A HIGHER TAX BASE.

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS INCREASED BY PS.153.4 MILLION, OR 12.1%, TO PS.1,426.3 MILLION IN 2015, COMPARED WITH PS.1,272.9 MILLION IN 2014. THIS INCREASE REFLECTED PRIMARILY A HIGHER PORTION OF NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS IN OUR SKY AND TELECOMMUNICATIONS SEGMENTS.

OTHER RELEVANT INFORMATION

CAPITAL EXPENDITURES

DURING 2015, WE INVESTED APPROXIMATELY US$1,605.4 MILLION IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES. THESE CAPITAL EXPENDITURES INCLUDED APPROXIMATELY US$1,077.2 MILLION FOR OUR TELECOMMUNICATIONS SEGMENT, US$361.6 MILLION FOR OUR SKY SEGMENT, AND US$166.6 MILLION FOR OUR CONTENT AND OTHER BUSINESSES SEGMENTS.

DEBT AND FINANCE LEASE OBLIGATIONS

THE FOLLOWING INFORMATION SETS FORTH OUR TOTAL DEBT AND FINANCE LEASE OBLIGATIONS AS OF DECEMBER 31, 2015 AND 2014. AMOUNTS ARE STATED IN MILLIONS OF MEXICAN PESOS:

THE TOTAL CONSOLIDATED DEBT AMOUNTED TO PS.110,410.6 MILLION AND PS.80,997.6 MILLION AS OF DECEMBER 31, 2015 AND 2014, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION  OF LONG-TERM DEBT IN THE AMOUNT OF PS.2,979.8 MILLION AND PS.337.1 MILLION, RESPECTIVELY.

ADDITIONALLY,  WE HAD FINANCE LEASE OBLIGATIONS IN THE AMOUNT OF PS.5,805.2 MILLION AND PS.5,309.6 MILLION AS OF DECEMBER 31, 2015 AND 2014, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION OF PS.511.6 MILLION  AND PS.502.2 MILLION, RESPECTIVELY.

AS OF DECEMBER 31, 2015 AND 2014, TOTAL DEBT IS PRESENTED NET OF FINANCE COSTS IN THE AMOUNT OF PS.1,387.9 MILLION AND PS.1,268.8 MILLION, RESPECTIVELY, AND DOES NOT INCLUDE RELATED ACCRUED INTEREST PAYABLE IN THE AMOUNT OF PS.1,184.2 MILLION AND PS.974.9 MILLION, RESPECTIVELY.

AS OF DECEMBER 31, 2015, OUR CONSOLIDATED NET DEBT POSITION (TOTAL DEBT LESS CASH AND CASH EQUIVALENTS, TEMPORARY INVESTMENTS, AND NONCURRENT HELD-TO-MATURITY AND AVAILABLE-FOR-SALE INVESTMENTS) WAS PS.49,675.8 MILLION. THE AGGREGATE AMOUNT OF NONCURRENT HELD-TO-MATURITY AND AVAILABLE-FOR-SALE INVESTMENTS AS OF DECEMBER 31, 2015, AMOUNTED TO PS.6,007.2 MILLION.

IN NOVEMBER 2015, WE ISSUED U.S.$300 MILLION AGGREGATE PRINCIPAL AMOUNT OF 4.625% SENIOR NOTES DUE 2026 AND U.S.$900 MILLION AGGREGATE PRINCIPAL AMOUNT OF 6.125% SENIOR NOTES DUE 2046 REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.

SHARES OUTSTANDING

AS OF DECEMBER 31, 2015 AND 2014, OUR SHARES OUTSTANDING AMOUNTED TO 338,468.4 MILLION AND 338,056.2 MILLION SHARES, RESPECTIVELY, AND OUR CPO EQUIVALENTS OUTSTANDING AMOUNTED TO 2,892.9 MILLION AND 2,889.4 MILLION CPO EQUIVALENTS, RESPECTIVELY. NOT ALL OF OUR SHARES ARE IN THE FORM OF CPOS. THE NUMBER OF CPO EQUIVALENTS IS CALCULATED BY DIVIDING THE NUMBER OF SHARES OUTSTANDING BY 117.

AS OF DECEMBER 31, 2015 AND 2014, THE GDS (GLOBAL DEPOSITARY SHARES) EQUIVALENTS OUTSTANDING AMOUNTED TO 578.6 MILLION AND 577.9 MILLION GDS EQUIVALENTS, RESPECTIVELY. THE NUMBER OF GDS EQUIVALENTS IS CALCULATED BY DIVIDING THE NUMBER OF CPO EQUIVALENTS BY FIVE.

ABOUT TELEVISA

TELEVISA IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING WORLD BASED ON ITS MARKET CAPITALIZATION AND A MAJOR PARTICIPANT IN THE INTERNATIONAL ENTERTAINMENT BUSINESS. IT OPERATES FOUR BROADCAST CHANNELS IN MEXICO CITY, PRODUCES AND DISTRIBUTES 26 PAY-TV BRANDS FOR DISTRIBUTION IN MEXICO AND THE REST OF THE WORLD, AND EXPORTS ITS PROGRAMS AND FORMATS TO THE U.S. THROUGH UNIVISION COMMUNICATIONS INC. (“UNIVISION”) AND TO OTHER TELEVISION NETWORKS IN OVER 50 COUNTRIES. TELEVISA IS ALSO AN ACTIVE PARTICIPANT IN MEXICO’S TELECOMMUNICATIONS INDUSTRY. IT HAS A MAJORITY INTEREST IN SKY, A LEADING DIRECT-TO-HOME SATELLITE TELEVISION SYSTEM OPERATING IN MEXICO, THE DOMINICAN REPUBLIC AND CENTRAL AMERICA. TELEVISA ALSO PARTICIPATES IN MEXICO’S TELECOMMUNICATIONS INDUSTRY IN MANY REGIONS OF THE COUNTRY WHERE IT OFFERS VIDEO, VOICE AND BROADBAND SERVICES. TELEVISA ALSO HAS INTERESTS IN MAGAZINE PUBLISHING AND DISTRIBUTION, RADIO PRODUCTION AND BROADCASTING, PROFESSIONAL SPORTS AND LIVE ENTERTAINMENT, FEATURE-FILM PRODUCTION AND DISTRIBUTION, THE OPERATION OF A HORIZONTAL INTERNET PORTAL AND GAMING. IN THE UNITED STATES, TELEVISA HAS EQUITY AND WARRANTS WHICH UPON ITS EXERCISE AND SUBJECT TO ANY NECESSARY APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION (“FCC”) IN THE UNITED STATES, WOULD REPRESENT APPROXIMATELY 36% ON A FULLY DILUTED, AS-CONVERTED BASIS OF THE EQUITY CAPITAL IN UNIVISION HOLDINGS INC. (F/K/A BROADCASTING MEDIA PARTNERS, INC.), THE CONTROLLING COMPANY OF UNIVISION, THE LEADING MEDIA COMPANY SERVING THE UNITED STATES HISPANIC MARKET.

DISCLAIMER

THIS ANNEX CONTAINS FORWARD-LOOKING STATEMENTS REGARDING THE COMPANY’S RESULTS AND PROSPECTS. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THESE STATEMENTS. THE FORWARD-LOOKING STATEMENTS IN THIS ANNEX SHOULD BE READ IN CONJUNCTION WITH THE FACTORS DESCRIBED IN “ITEM 3. KEY INFORMATION – FORWARD-LOOKING STATEMENTS” IN THE COMPANY’S ANNUAL REPORT ON FORM 20-F, WHICH, AMONG OTHERS, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS MADE IN THIS ANNEX AND IN ORAL STATEMENTS MADE BY AUTHORIZED OFFICERS OF THE COMPANY. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THEIR DATES. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

THE FINANCIAL INSTITUTIONS THAT PERFORM FINANCIAL ANALYSIS ON THE SECURITIES OF GRUPO TELEVISA, S.A.B. ARE AS FOLLOWS:

INSTITUTION:
   BARCLAYS
   BBVA BANCOMER
   BTG PACTUAL
   CITI
   CREDIT SUISSE
   EVERCORE
   GABELLI & CO.
   GBM CASA DE BOLSA
   GOLDMAN SACHS
   HSBC
   INVEX
   ITAÚ SECURITIES
   JPMORGAN
   MERRILL LYNCH
   MORGAN STANLEY
   NEW STREET
   SANTANDER
   SCOTIABANK
   UBS
 
 
 
MEXICAN STOCK EXCHANGE

STOCK EXCHANGE CODE: TLEVISA     
 
QUARTER: 04
YEAR: 2015
GRUPO TELEVISA, S.A.B.      
                                                                                                                      
 

FINANCIAL STATEMENT NOTES
 
CONSOLIDATED
Final Printing

GRUPO TELEVISA, S.A.B. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements
For the years ended December 31, 2015 and 2014
(In thousands of Mexican Pesos, except per CPO, per share, par value and exchange rate amounts)
 
1.
Corporate Information
   
 
Grupo Televisa, S.A.B. (the “Company”) is a limited liability public stock corporation (“Sociedad Anónima Bursátil” or “S.A.B.”), incorporated under the laws of Mexico. Pursuant to the terms of the Company’s bylaws (“Estatutos Sociales”) its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of “Certificados de Participación Ordinarios” or “CPOs” on the Mexican Stock Exchange (“Bolsa Mexicana de Valores”) under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares or GDSs, on the New York Stock Exchange, or NYSE, under the ticker symbol TV. The Company’s principal executive offices are located at Avenida Vasco de Quiroga 2000, Colonia Santa Fe, 01210 Ciudad de México.
 
Grupo Televisa, S.A.B. together with its subsidiaries (collectively, the “Group”) is the largest media company in the Spanish-speaking world based on its market capitalization and a major participant in the international entertainment business. It operates four broadcast channels in Mexico City, produces and distributes 26 pay-TV brands for distribution in Mexico and the rest of the world, and exports its programs and formats to the United States through Univision Communications Inc. (“Univision”) and to other television networks in over 50 countries. It has a majority interest in Sky, a leading direct-to-home satellite television system operating in Mexico, the Dominican Republic and Central America. The Group also participates in Mexico’s telecommunications industry in many regions of the country where it offers video, voice and broadband services. The Group also has interests in magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, the operation of a horizontal Internet portal, and gaming. In the United States, the Group has equity and Warrants which upon its exercise and subject to any necessary approval from the Federal Communications Commission in the United States, would represent approximately 36% on a fully diluted basis of the equity capital in Univision Holdings, Inc. or “UHI” (formerly, Broadcasting Media Partners, Inc. or “BMP”), the controlling company of Univision, the leading media company serving the United States Hispanic market.
   
2.
Basis of Preparation and Accounting Policies
   
 
These condensed consolidated financial statements of the Group, as of December 31, 2015 and 2014, and for the years ended December 31, 2015 and 2014, are unaudited, and have been prepared in accordance with the guidelines provided by the International Accounting Standard 34, Interim Financial Reporting. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included herein.
 
These unaudited condensed consolidated financial statements should be read in conjunction with the Group’s audited consolidated financial statements and notes thereto for the years ended December 31, 2014 and 2013, which have been prepared in accordance with International Financial
Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board, and include, among other disclosures, the Group’s most significant accounting policies, which were applied on a consistent basis as of December 31, 2015.
 
These interim unaudited condensed consolidated financial statements were authorized for issuance on February 22, 2016, by the Group’s Chief Financial Officer.
 
The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
 
In preparing these unaudited condensed interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31, 2014, with the exception of the change in the useful life of trademarks as mentioned in Note 7, the derecognition of Convertible Debentures and the classification of Warrants as available-for-sale financial assets, as mentioned in Notes 4 and 9.
   
3.
Acquisitions, Investments and Disposition
   
 
In August 2014, the Group acquired, pursuant to applicable regulations, all of the equity interest of Cablecom through the conversion of the debt instruments issued by Tenedora Ares, S.A.P.I. de C.V. (“Ares”) in the amount of Ps.7,297,292, including accrued interest at the acquisition date, and an additional consideration of Ps.8,550,369, comprised of (i) the capitalization of an outstanding long-term debt issued by Ares in the amount of U.S.$200.2 million (Ps.2,642,367), including accrued interest at the acquisition date; and (ii) cash in the amount of Ps.5,908,002. The total fair value consideration for this acquisition amounted to Ps.15,847,661, and the Group recognized goodwill, other intangible assets and related deferred income tax liability based on a final purchase price allocation at the acquisition date. The Group began to consolidate the net assets of Cablecom in its consolidated statement of financial position as of August 31, 2014, and therefore, the Group’s consolidated statement of income for the year ended December 31, 2014, included net income of Cablecom for the four months ended on that date. Through the acquisition of Cablecom, the Group increased its presence in the telecommunications Mexican market, not only by maintaining customers of Cablecom at the date of the acquisition, but also by increasing the number of users of Cablecom services in connection with new market strategies. The following table summarizes the allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over those fair values and the related deferred income tax liability was allocated to goodwill in the Telecommunications segment.
 
     
Acquisition in August 2014
  
 
Cash and cash equivalents
  
Ps.
371,353
  
 
Trade and other receivables
    
269,868
  
 
Other current assets
    
169,841
  
 
Total current assets
    
811,062
  
 
Property, plant and equipment, net
    
2,762,363
  
 
Goodwill
    
6,913,684
  
 
Concessions
    
7,650,430
  
 
Other intangible assets, net
    
3,635,767
  
 
Other non-current assets
    
161,169
  
 
Total assets
    
21,934,475
  
 
Trade and other payables
    
528,177
  
 
Short-term debt and current portion of long-term debt
    
443,475
  
 
Other current liabilities
    
94,309
  
 
Total current liabilities
    
1,065,961
  
 
Long-term debt
    
1,454,046
  
 
Post-employment benefits
    
61,823
  
 
Deferred income tax liabilities
    
3,491,066
  
 
Other non-current liabilities
    
13,918
  
 
Total non-current liabilities
    
5,020,853
  
 
Total liabilities
    
6,086,814
  
 
Total net assets
  
Ps.
15,847,661
  
 
 
In January 2015, the Group acquired, through a series of transactions, the net assets of Cablevisión Red, S.A. de C.V. and other related companies (collectively, “Telecable”) for an aggregate consideration of Ps.10,001,838 in cash. Telecable is a telecommunications business that provides video, data and telephone services primarily in six states of Mexico. In connection with this acquisition, the Group recognized an excess of purchase price over the carrying value of the acquired net assets of Telecable in the aggregate amount of Ps.8,975,068, net of deferred taxes, which consisted primarily of goodwill, other intangible assets and deferred tax liabilities, based on a purchase price allocation at the acquisition date that was completed in the last quarter of 2015. The Group began to consolidate the net assets and results of operations of Telecable beginning in the first quarter of 2015. Through the acquisition of Telecable, the Group continues with its strategy to establish a telecommunications company with national coverage that delivers more and better services through state of the art technology and internationally competitive prices for the benefit of end users. The following table summarizes the allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over those estimated fair values and the deferred income tax liability related to certain intangible assets was allocated to goodwill in the Telecommunications segment.
 
     
Acquisition in January 2015
  
 
Cash and cash equivalents
  
Ps.
270,447
  
 
Trade and other receivables
    
57,687
  
 
Other current assets
    
34,118
  
 
     Total current assets
    
362,252
  
 
Property, plant and equipment, net
    
4,885,331
  
 
Goodwill
    
4,373,855
  
 
Concessions
    
1,233,808
  
 
List of subscribers
    
218,578
  
 
Trademarks
    
16,240
  
 
Other intangible assets
    
1,724,757
  
 
Other non-current assets
    
4,582
  
 
     Total assets
    
12,819,403
  
 
Trade and other payables
    
135,920
  
 
Other current liabilities
    
78,753
  
 
     Total current liabilities
    
214,673
  
 
Long-term debt
    
505,425
  
 
Deferred income tax liability
    
2,090,269
  
 
Other non-current liabilities
    
7,198
  
 
     Total non-current liabilities
    
2,602,892
  
 
Total liabilities
    
2,817,565
  
 
Total net assets
  
Ps.
10,001,838
  

 
In January 2015, the Group received proceeds in the aggregate amount of U.S.$717 million (Ps.10,632,393) in connection with the disposal in 2014 of its investment in GSF Telecom Holdings, S.A.P.I. de C.V. (“GSF”), of which U.S.$697 million were in cash and U.S.$20 million were held in escrow for certain contingent litigation costs. As of December 31, 2015, the amount held in escrow was of U.S.$11.9 million (Ps.204,954). As a result of this disposal, the Group recognized a non-cash loss of Ps.4,168,468 in consolidated other expense in the year ended December 31, 2014.
 
In July 2015, the Group exchanged its investment in U.S.$1,125 million principal amount of Debentures issued by UHI (formerly,  BMP) for an investment in Warrants that are exercisable for UHI’s common stock. As a result of this transaction, the Group (i) received from UHI a cash amount of US$135.1 million (Ps.2,194,981) as a consideration for such conversion, which was accounted for as other finance income in the consolidated statement of income for the year ended December 31, 2015; and (ii) reclassified a Ps.4,718,175 cumulative gain related to changes in fair value of such Debentures from accumulated other comprehensive income in consolidated equity to other finance income in the consolidated statement of income for the year ended December 31, 2015. In July 2015, the Group exercised a portion of these Warrants to increase its equity stake in UHI from 7.8% to 10% (see Notes 4 and 5).
 
In July 2015, the Company made an additional capital contribution in Imagina Media Audiovisual, S.L. (together with its subsidiaries, “Imagina”) in the aggregate cash amount of €19.2 million (Ps.341,710) in connection with a reorganization of stockholders of this investee, by which the Company increased its equity stake in Imagina from 14.5% to 19.9% (see Notes 4 and 5).
   
4.
Investments in Financial Instruments
   
 
At December 31, 2015 and 2014, the Group had the following investments in financial instruments:
 
   
December 31, 2015
    
December 31, 2014
  
Available-for-sale financial assets:
        
     Convertible Debentures due 2025 issued by UHI (1)
  
Ps.
 -
    
Ps.
10,421,478
  
     Embedded derivative in Convertible Debentures issued by UHI (1)-
    
-
      
17,447,857
  
     Warrants issued by UHI (1)
    
35,042,577
      
-
  
     Shares of common stock of Imagina (2)
    
-
      
836,037
  
     Available-for-sale investments (3)
    
5,873,243
      
5,511,768
  
     
40,915,820
      
34,217,140
  
Held-to-maturity investments (4)
    
134,034
      
461,047
  
Other
    
31,620
      
31,685
  
   
Ps.
41,081,474
    
Ps.
34,709,872
  

(1) Through July 2015, the Group held an investment in Convertible Debentures due 2025 issued by UHI in the principal amount of U.S.$1,125 million (Ps.17,634,375), with an annual interest rate of 1.5% receivable on a quarterly basis, which were convertible at the Company’s option into additional shares equivalent to approximately 30% equity stake of UHI, subject to existing laws and regulations in the United States, and other conditions. These Convertible Debentures were classified as available-for-sale financial assets with changes in fair value recognized in other comprehensive income or loss in consolidated equity. The Group’s option of converting these debentures into an equity stake of UHI was accounted for as an embedded derivative with changes in fair value recognized in consolidated income. In July 2015, the Group exchanged its investment in these Debentures into an investment in Warrants that are exercisable for UHI’s common stock subject to the U.S. Federal Communications Commission’s restrictions on foreign ownership, in whole or in part, at an exercise price of U.S.$0.01 per Warrant share. The Warrants shall expire and no longer be exercisable after the tenth anniversary of the date of issuance (the “Expiration Date”); provided, however, the Expiration Date shall automatically be extended for nine successive ten-year periods unless the Group provides written notice to UHI of its election not to so extend the Expiration Date. The Warrants do not bear interest. The fair value of these Warrants at the date of conversion was U.S.$1,951 million (Ps.30,582,427). The Group recycled Ps.4,718,175 from accumulated other comprehensive income in consolidated equity to other finance income in the consolidated statement of income as a result of derecognizing the Convertible Debentures. In July 2015, the Group exercised a portion of these Warrants in the amount of U.S$107.4 million (Ps.1,695,524) to increase its equity stake in UHI from 7.8% to 10%. These Warrants are classified as available-for-sale financial assets with changes in fair value recognized in accumulated other comprehensive income or loss in consolidated equity  (see Notes 3 and 5).
(2) Through June 2015, the Company’s investment in common stock of Imagina was accounted for as an available-for-sale equity financial asset with changes in fair value recognized in consolidated other comprehensive income or loss. In July 2015, the Company made an additional capital contribution and increased its equity stake in Imagina from 14.5% to 19.9%. As a result of this transaction, beginning in the third quarter of 2015, (i) the Company classified the carrying value of this investee as an investment in associate and began to recognize its share in income or loss of Imagina; (ii) holds two of 10 seats on the Board of Directors of Imagina; (iii) reclassified a cumulative gain of Ps.544,402, related to changes in fair value of the investment in Imagina from accumulated other comprehensive income in consolidated equity to consolidated other finance income for the year  ended December 31, 2015; and (iv) recognized its investment in Imagina using the fair value at the transaction date (see Notes 3 and 5).
(3) The Group has an investment in an open ended fund that has as a primary objective to achieve capital appreciation by using a broad range of strategies through investments and transactions in telecom, media and other sectors across global markets, including Latin America and other emerging markets. Shares may be redeemed on a quarterly basis at the Net Asset Value (“NAV”) per share as of such redemption date. The fair value of this fund is determined by using the NAV per share. The NAV per share is calculated by determining the value of the fund assets and subtracting all of the fund liabilities and dividing the result by the total number of issued shares.
(4) Held-to-maturity investments represent corporate fixed income securities with long-term maturities. These investments are stated at amortized cost. Maturities of these investments subsequent to December 31, 2015, are as follows: Ps.60,683 in 2017, Ps.13,365 in 2018 and Ps.59,986 thereafter. Held-to-maturity financial assets as of December 31, 2015 and 2014 are denominated primarily in Mexican pesos.

A roll forward of available-for-sale financial assets for the year ended December 31, 2015 is presented as follows:

At January 1, 2015
  
Ps.
34,217,140
  
Changes in fair value in other comprehensive income
    
3,947,250
  
Changes in fair value in other finance income
    
409,196
  
Foreign exchange differences
    
4,307,772
  
Additional investment in Imagina
    
341,710
  
Exchange of Debentures, reclassification of investment in Imagina and exercise of Warrant
    
(32,889,675
)
Warrants
    
30,582,427
  
At December 31, 2015
  
Ps.
40,915,820
  

The maximum exposure to credit risk of the investments in financial instruments as of December 31, 2015 is the carrying value of the financial assets mentioned above.

5.
Investments in Associates and Joint Ventures
   
 
At December 31, 2015 and 2014, the Group had the following investments in associates and joint ventures accounted for by the equity method:
 
    
Ownership as of
  
    
December 31, 2015
    
December 31, 2015
    
December 31, 2015
  
             
Associates:
  
 UHI (1)
  
 
10%
    
Ps.
5,685,748
    
Ps.
3,507,390
  
Imagina (see Notes 3 and 4)
    
19.9%
      
1,921,590
      
-
  
Ocesa Entretenimiento, S.A. de C.V. and subsidiaries (collectively, “OCEN”) (2)
    
40%
      
938,995
      
867,362
  
Other
            
83,220
      
81,516
  
Joint ventures:
  
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. (“GTAC”) (3)
    
33.3%
      
574,480
      
576,179
  
Televisa CJ Grand, S.A. de C.V.
    
50%
      
67,868
      
-
  
           
Ps.
9,271,901
    
Ps.
5,032,447
  
 
(1) The Group accounts for its investment in common stock of UHI, the parent company of Univision, under the equity method due to the Group’s ability to exercise significant influence, as defined under IFRS, over UHI’s operations. The Group has determined it has the ability to exercise significant influence over the operating and financial policies of UHI because as of December 31, 2015 , the Group (i) owned 1,110,382 Class C shares of common stock of UHI, representing 10% of the outstanding total shares of UHI as of that date; (ii) held Warrants exercisable for common stock of UHI  equivalent to approximately 26% equity stake of UHI on a fully diluted basis, subject to certain conditions, laws and regulations; (iii)  had three of 18 members of the Board of Directors of UHI; and (iv) held program license agreements, as amended, with Univision, an indirect wholly-owned subsidiary of UHI, pursuant to which Univision has the right to broadcast certain Televisa content in the United States (“Program License Agreement”), and the Group has the right to broadcast certain Univision’s content in Mexico (“Mexican License Agreement”), through the later of 2025 (2030 upon consummation of qualified public offering of shares of UHI) or seven and one-half years after the Group has sold two-thirds of its initial investment in UHI made in December 2010.
(2) OCEN is a majority-owned subsidiary of Corporación Interamericana de Entretenimiento, S.A.B. de C.V., and is engaged in the live entertainment business in Mexico. The investment in OCEN includes a goodwill of Ps.359,613 as of December 31, 2015 and 2014.
(3) A subsidiary of the Company entered into a long-term credit facility agreement to provide financing to GTAC for up to Ps.688,217, with an annual interest rate of the Mexican Interbank Interest Rate (“Tasa de Interés Interbancaria de Equilibrio” or “TIIE”) plus 200 basis points. Under the terms of this agreement, principal and interest are payable at dates agreed by the parties, between 2013 and 2021. As of December 31, 2015, GTAC had used a principal amount of Ps.661,183, under this credit facility. During 2015, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate amount of Ps.99,018. Also, a subsidiary of the Company entered into supplementary long-term loans to provide additional financing to GTAC for an aggregate principal amount of Ps.246,019, with an annual interest of TIIE plus 200 basis points payable on a monthly basis and principal maturities through 2023, 2024 and 2025. The net investment in GTAC as of December 31, 2015 and 2014, include amounts receivable in connection with this long-term credit facility and supplementary loans to GTAC in the aggregate amount of Ps.684,259 and Ps.677,315, respectively.
 
6.
Property, Plant and Equipment, Net
   
 
Property, plant and equipment as of December 31, 2015 and 2014, consisted of:
 
   
December 31, 2015
    
December 31, 2014
  
Buildings
  
Ps.
8,635,843
    
Ps.
8,464,531
  
Building improvements
    
287,732
      
339,828
  
Technical equipment
    
97,721,490
      
79,921,698
  
Satellite transponders
    
10,301,713
      
7,869,492
  
Furniture and fixtures
    
966,928
      
907,006
  
Transportation equipment
    
2,631,076
      
2,054,309
  
Computer equipment
    
6,642,536
      
5,962,735
  
Leasehold improvements
    
2,170,607
      
1,641,527
  
     
129,357,925
      
107,161,126
  
Accumulated depreciation
    
(67,907,362
)
    
(57,539,568
)
     
61,450,563
      
49,621,558
  
Land
    
4,699,723
      
4,627,984
  
Construction and projects in progress
    
9,938,991
      
7,759,966
  
   
Ps.
76,089,277
    
Ps.
62,009,508
  

Depreciation charged to income for the years ended December 31, 2015 and 2014 was Ps.12,138,740 and Ps.10,086,524, respectively.

During the year ended December 31, 2015, the Group invested Ps.25,703,069 in property plant and equipment as capital expenditures.
 
7.
Intangible Assets, Net
   
 
The balances of intangible assets as of December 31, 2015 and 2014, were as follows:

                2015                 2014  
    
Gross Carrying Amount
    
Accumulated Amortization
    
Net Carrying Amount
    
Gross Carrying Amount
    
Accumulated Amortization
    
Net Carrying Amount
  
Intangible assets with indefinite useful lives:
  
Goodwill
          
Ps.
14,112,626
            
Ps.
9,322,773
  
Trademarks
            
782,958
              
2,501,227
  
Concessions
            
15,719,572
              
11,345,717
  
Intangible assets with finite useful lives:
  
Trademarks
  
Ps.
. 1,891,306
    
Ps.
(151,305
)
    
1,740,001
    
Ps.
-
    
Ps.
-
    
Ps.
-
  
Licenses and software
    
5,366,912
      
(3,489,143
)
    
1,877,769
      
4,575,490
      
(2,576,795
)
    
1,998,695
  
Subscriber lists
    
6,207,405
      
(3,520,650
)
    
2,686,755
      
4,973,885
      
(2,492,101
)
    
2,481,784
  
Other intangible assets
    
3,014,421
      
(1,827,777
)
    
1,186,644
      
2,290,663
      
(1,162,445
)
    
1,128,218
  
    
Ps.
16,480,044
    
Ps.
(8,988,875
)
  
Ps.
38,106,325
    
Ps.
11,840,038
    
Ps.
(6,231,341
)
  
Ps.
28,778,414
  

Amortization charged to income for the years ended December 31, 2015 and 2014 was Ps.2,522,189 and Ps.1,476,561, respectively.
In the third quarter of 2015, the Company’s management revised the useful life of trademarks to determine whether events and circumstances continue to support an indefinite useful life for such intangible assets. As a result of such review, the Company’s management identified certain businesses in its Telecommunications segment that are migrating from a current trademark to an internally developed trademark between 2015 and 2016, in connection with enhanced telecommunications service packages offered to current and new subscribers, and has estimated that this migration process will take approximately four years. Accordingly, beginning in the third quarter of 2015, the Group changed the useful life assessment from indefinite to finite for certain acquired trademarks in its Telecommunications segment, and began to amortize the related carrying value of those trademarks when the migration started in an estimated useful life of four years. The Group has not capitalized any amounts associated with internally developed trademarks.
 
8.
Debt and Finance Lease Obligations
   
 
Debt and finance lease obligations outstanding as of December 31, 2015 and 2014, were as follows:

                     
December 31, 2015
    
December 31, 2014
  
   
Principal
    
Interest Payable
    
Finance Costs
    
Total
    
Total
  
U.S. dollar debt:
                    
6% Senior Notes due 2018 (1)
  
Ps.
8,608,000
    
Ps.
60,256
    
Ps.
(16,224
)
  
Ps.
8,652,032
    
Ps.
7,409,378
  
6.625% Senior Notes due 2025 (1)
    
10,329,600
      
193,895
      
(354,362
)
    
10,169,133
      
8,630,357
  
4.625% Senior Notes due 2026 (1)
    
5,164,800
      
23,887
      
(111,378
)
    
5,077,309
      
–
  
8.50% Senior Notes due 2032 (1)
    
5,164,800
      
134,142
      
(28,701
)
    
5,270,241
      
4,512,938
  
6.625% Senior Notes due 2040 (1)
    
10,329,600
      
315,555
      
(152,330
)
    
10,492,825
      
8,968,642
  
5% Senior Notes due 2045 (1)
    
17,216,000
      
124,338
      
(497,534
)
    
16,842,804
      
14,353,463
  
6.125% Senior Notes due 2046 (1)
    
15,494,400
      
94,903
      
(81,105
)
    
15,508,198
      
–
  
Total U.S. dollar debt
    
72,307,200
      
946,976
      
(1,241,634
)
    
72,012,542
      
43,874,778
  
Mexican peso debt:
                                        
7.38% Notes due 2020 (2)
    
10,000,000
      
133,250
      
(34,090
)
    
10,099,160
      
10,100,307
  
TIIE + 0.35% Notes due 2021 (2)
    
6,000,000
      
8,657
      
(11,034
)
    
5,997,623
      
5,994,805
  
TIIE + 0.35% Notes due 2022 (2)
    
5,000,000
      
5,249
      
(11,060
)
    
4,994,189
      
–
  
8.49% Senior Notes due 2037 (1)
    
4,500,000
      
32,899
      
(15,528
)
    
4,517,371
      
4,518,767
  
7.25% Senior Notes due 2043 (1)
    
6,500,000
      
54,979
      
(64,933
)
    
6,490,046
      
6,492,913
  
Bank loans
    
4,782,000
      
–
      
(3,095
)
    
4,778,905
      
5,879,128
  
Bank loans (Sky)
    
–
      
–
      
–
      
–
      
3,513,851
  
Bank loans (TVI)
    
2,709,287
      
2,211
      
(6,502
)
    
2,704,996
      
1,598,006
  
Total Mexican peso debt
    
39,491,287
      
237,245
      
(146,242
)
    
39,582,290
      
38,097,777
  
Total debt (3)
    
111,798,487
      
1,184,221
      
(1,387,876
)
    
111,594,832
      
81,972,555
  
Less:  Current portion of long- term debt
    
2,981,675
      
1,184,221
      
(1,828
)
    
4,164,068
      
1,312,052
  
Long-term debt, net of current portion
  
Ps.
108,816,812
    
Ps.
–
    
Ps.
(1,386,048
)
  
Ps.
107,430,764
    
Ps.
80,660,503
  
                                         
Finance lease obligations:
                                        
Satellite transponder lease obligation
  
Ps.
4,879,940
    
Ps.
–
    
Ps.
–
    
Ps.
4,879,940
    
Ps.
4,401,423
  
Other
    
925,175
      
–
      
–
      
925,175
      
908,122
  
Total finance lease obligations
    
5,805,115
      
--
      
–
      
5,805,115
      
5,309,545
  
Less: Current portion
    
511,556
      
–
      
–
      
511,556
      
502,166
  
Finance lease obligations, net of current  portion
  
Ps.
5,293,559
    
Ps.
–
    
Ps.
–
    
Ps.
5,293,559
    
Ps.
4,807,379
  
 
(1)
These Senior Notes are unsecured obligations of the Company, rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness of the Company, and are junior in right of payment to all of the existing and future liabilities of the Company's subsidiaries. Interest on the Senior Notes due 2018, 2025, 2026, 2032, 2037, 2040, 2043, 2045 and 2046, including additional amounts payable in respect of certain Mexican withholding taxes, is 6.31%, 6.97%, 4.86%, 8.94%, 8.93%, 6.97%, 7.62%, 5.26% and 6.44%  per annum, respectively, and is payable semi-annually. These Senior Notes may not be redeemed prior to maturity, except (i) 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; and (ii) in the event of a change of control, in which case the company may be required to redeem the securities at 101% of their principal amount. Also, the Company may, at its own option, redeem the Senior Notes due 2018, 2025, 2026, 2037, 2040, 2043 and 2046, in whole or in part, at any time at a redemption price equal to the greater of the principal amount of these Senior Notes or the present value of future cash flows, at the redemption date, of principal and interest amounts of the Senior Notes discounted at a fixed rate of comparable U.S. or Mexican sovereign bonds. The agreement of these Senior Notes contains covenants that limit the ability of the Company and certain restricted subsidiaries engaged in the Group's content segment, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations and similar transactions. The Senior Notes due 2018, 2025, 2026, 2032, 2037, 2040, 2045 and 2046 are registered with the U.S. Securities and Exchange Commission ("SEC"). The Senior Notes due 2043 are registered with both the U.S. SEC and the Mexican Banking and Securities Commission ("Comisión Nacional Bancaria y de Valores" or "CNBV").
   
(2)
Interest on these Notes ("Certificados Bursátiles") is payable semi-annually for Notes due 2020 and every 28 days for Notes due 2021 and 2022. The Company may, at its own option, redeem the Notes due 2020, in whole or in part, at any semi-annual interest payment date at a redemption price equal to the greater of the principal amount of the outstanding notes and the present value of future cash flows, at the redemption date, of principal and interest amounts of the Notes discounted at a fixed rate of comparable Mexican sovereign bonds. The company may, at its own option, redeem the Notes due 2021 and 2022, in whole or in part, at any date at a redemption price equal to the greater of the principal amount of the outstanding notes and an average price calculated from prices to be provided at the redemption date by two Mexican financial pricing companies. The agreement of these Notes contains covenants that limit the ability of the Company and certain restricted subsidiaries appointed by the Company's board of directors, and engaged in the Group's content segment, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations and similar transactions.
   
(3)
Total debt is presented net of unamortized finance costs as of December 31, 2015 and 2014, in the aggregate amount of Ps.1,387,876 and Ps.1,268,856, respectively, and includes interest payable in the aggregate amount of Ps.1,184,221 and Ps.974,904 as of December 31, 2015 and 2014, respectively.
 
In January 2015, the Group prepaid the principal amount and related accrued interest of a peso-denominated long-term bank loan previously entered into by Telecable, the telecommunications company acquired by the Group in January 2015, in the aggregate amount of Ps.507,362. This prepayment was funded primarily with cash provided by a long-term bank loan arranged by the Company with a Mexican bank in the principal amount of Ps.500,000, with a maturity in 2016, and annual interest of the 28-day interbank equilibrium interest rate (“Tasa de Interés Interbancaria de Equilibrio” or “TIIE”) plus a range between 0 and 80 basis points.

In May 2015, the Company concluded an offering of Ps.5,000,000 aggregate principal amount of local bonds (“Certificados Bursátiles”) due 2022 with an annual interest rate of the 28-day TIIE plus 35 basis points, which was registered with the CNBV.

During the year of 2015, TVI refinanced an outstanding long-term loan in the principal amount of Ps.722,020, with an original maturity in 2016, and incurred additional long-term debt in the aggregate principal amount of Ps.1,270,000. The refinanced and additional long-term debt of TVI matures in 2019 (Ps.250,000), 2020 (Ps.250,000) and 2022 (Ps.1,492,020) with an annual interest rate of the 28-day TIIE plus a range between 130 and 140 basis points, which is payable on a monthly basis.

In June 2015, the Company and Sky prepaid peso-denominated long-term bank loans in the aggregate principal amount of Ps.1,600,000 and Ps.3,500,000, respectively, with original principal maturities between 2016 and 2021. The aggregate amount paid by the Company and Sky amounted to Ps.1,814,312 and Ps.3,651,712, respectively, which included related accrued interest, the settlement of a related derivative contract, and fees. The prepayment of Sky was funded primarily by a long-term loan made by the Company in the principal amount of Ps.3,500,000, with a maturity in 2022, and an annual interest rate of 7.38%, which is payable on a monthly basis.

In November 2015, the Company issued U.S.$300 million aggregate principal amount of 4.625% Senior Notes due 2026 and U.S.$900 million aggregate principal amount of 6.125% Senior Notes due 2046 registered with the U.S. SEC.
 
As of December 31, 2015, the Group is in compliance with all covenants contained in the debt agreements.
 
The table below analyzes the Group’s debt and finance lease obligations into relevant maturity groupings based on the remaining period at the statement of financial position date to the contracted maturity date


   
Less than 12 months January 1, 2016 to December 31, 2016
    
12-36 months January 1, 2017
to December 31, 2018
    
36-60 months January 1, 2019
to December 31, 2020
    
Maturities Subsequent to
December 31, 2020
    
Total
  
                     
Debt (1)
  
Ps.
2,981,675
    
Ps.
10,975,074
    
Ps.
11,412,045
    
Ps.
86,429,693
    
Ps.
111,798,487
  
Finance Lease Liabilities
    
511,556
      
945,665
      
996,850
      
3,351,044
      
5,805,115
  
Total Debt and Financial Lease obligations
  
Ps.
3,493,231
    
Ps.
11,920,739
    
Ps.
12,408,895
    
Ps.
89,780,737
    
Ps.
117,603,602
  

(1) The amounts of debt are disclosed on a principal amount basis.
 
9.
Financial Instruments
   
 
The Group’s financial instruments presented in the condensed consolidated statements of financial position included cash and cash equivalents; temporary investments; accounts and notes receivable; a long-term loan receivable from GTAC; Convertible Debentures issued by UHI with an option to convert these debentures into common stock of UHI, which were converted in July 2015 into Warrants that are exercisable for UHI’s common stock; debt securities classified as held-to-maturity investments; investments in securities in the form of an open-ended fund classified as available-for-sale investments; accounts payable; debt; and derivative financial instruments. For cash and cash equivalents, temporary investments, accounts receivable, accounts payable, and short-term notes payable due to banks and other financial institutions, the carrying amounts approximate fair value due to the short maturity of these instruments. The fair value of the Group’s long-term debt securities are based on quoted market prices.

The fair value of the long-term loans that the Group borrowed from leading Mexican banks (see Note 8) has been estimated using the borrowing rates currently available to the Group for bank loans with similar terms and average maturities. The fair value of held-to-maturity securities, available-for-sale investments, and currency option and interest rate swap agreements were determined by using valuation techniques that maximize the use of observable market data.
 
The carrying and estimated fair values of the Group’s non-derivative financial instruments as of December 31, 2015 and 2014, were as follows:
 
   
December 31, 2015
    
December 31, 2014
  
   
Carrying Value
    
Fair Value
    
Carrying Value
    
Fair Value
  
Assets:
                
     Temporary investments
  
Ps.
5,330,448
    
Ps.
5,330,448
    
Ps.
4,788,585
    
Ps.
4,788,585
  
     Trade notes and accounts receivable, net
    
21,702,128
      
21,702,128
      
21,087,163
      
21,087,163
  
     Convertible Debentures due 2025 issued by UHI (see Note 4)
    
-
      
-
      
10,421,478
      
10,421,478
  
     Embedded derivative in Convertible Debentures issued by UHI (see Note 4)
    
-
      
-
      
17,447,857
      
17,447,857
  
     Warrants issued by UHI
    
35,042,577
      
35,042,577
      
-
      
-
  
     Long-term loan and interest receivable from GTAC (see Note 5)
    
684,259
      
687,506
      
677,315
      
675,198
  
     Held-to-maturity investments (see Note 4)
    
134,034
      
133,824
      
461,047
      
460,236
  
     Shares of common stock of Imagina (see Note 4)
    
-
      
-
      
836,037
      
836,037
  
     Available-for-sale investments (see Note 4)
    
5,873,243
      
5,873,243
      
5,511,768
      
5,511,768
  
Liabilities:
                                
     Senior Notes due  2018, 2025, 2032 and 2040
  
Ps.
34,432,000
    
Ps.
38,190,597
    
Ps.
29,522,600
    
Ps.
36,225,101
  
     Senior Notes due 2045
    
17,216,000
      
14,860,851
      
14,761,300
      
15,015,785
  
     Senior Notes due 2037 and 2043
    
11,000,000
      
9,620,550
      
11,000,000
      
10,283,880
  
     Senior Notes due 2026 and 2046
    
20,659,200
      
20,650,007
      
-
      
-
  
     Notes due 2020
         
10,000,000
      
10,437,500
      
10,000,000
      
10,469,000
  
     Notes due 2021
    
6,000,000
      
5,996,640
      
6,000,000
      
6,012,300
  
     Notes due 2022
    
5,000,000
      
4,957,300
      
-
      
-
  
     Short-term loans and long-term notes payable to Mexican banks
    
7,491,287
      
7,561,955
      
10,982,607
      
11,413,185
  
     Finance lease obligations
    
5,805,115
      
5,179,052
      
5,236,046
      
4,920,298
  
 
The carrying values (based on estimated fair values), notional amounts, and maturity dates of the Group’s derivative financial instruments as of December 31, 2015 and 2014, were as follows:
 
December 31, 2015:
            
Derivative Financial Instruments
  
Carrying Value
    
Notional Amount (U.S. Dollars in Thousands)
  
Maturity Date
              
Liabilities:
            
Derivatives not recorded as accounting hedges:
            
     TVI’s interest rate swap
  
Ps.
8,113
    
Ps.
1,985,847
  
February 2016 and May 2022
Derivatives recorded as accounting hedges (cash flow hedges):
                    
     Interest rate swap
    
116,108
    
Ps.
2,500,000
  
September 2016 through March 2018
     Interest rate swap
    
99,567
    
Ps.
6,000,000
  
April 2021
     Interest rate swap
    
3,274
    
Ps.
1,000,000
  
May 2022
     Total liabilities
  
Ps.
227,062
             
                      
                      
December 31, 2014:
                    
Derivative Financial Instruments
  
Carrying Value
    
Notional Amount (U.S. Dollars in Thousands)
  
Maturity Date
Assets:
                    
Derivatives not recorded as accounting hedges:
                    
     Options
  
Ps.
2,894
    
Ps. 
U.S.135,000
  
November 2015
     Total assets
  
Ps.
2,894
             
                      
Liabilities:
                    
Derivatives not recorded as accounting hedges:
                    
     Sky’s interest rate swap
  
Ps.
79,939
    
Ps.
1,400,000
  
April 2016
     TVI’s interest rate swap
    
10,376
    
Ps.
1,567,607
  
February 2016 and July 2019
Derivatives recorded as accounting hedges (cash flow hedges):
                    
     Interest rate swap
    
175,025
    
Ps.
2,500,000
  
September 2016 through March 2018
     Interest rate swap
    
69,762
    
Ps.
3,000,000
  
April 2021
     Total liabilities
  
Ps.
335,102
             
 
UHI Warrants
As described in Note 3, in July 2015, the Group exchanged its investment in U.S.$1,125 million principal amount of Convertible Debentures due 2025 issued by UHI for Warrants that are exercisable for UHI’s common stock.
The Group determined the fair value of its investment in Warrants using the Black-Scholes model (“BSM”). The BSM involves the use of significant estimates and assumptions. These estimates and assumptions include the UHI stock’s spot price at valuation date and the stock’s expected volatility. The UHI stock’s price at valuation date was obtained by using a discounted projected cash flow model. The UHI stock’s volatility was obtained from publicly available information of comparable companies’ stock through determining an average of such companies’ annual volatility. Since the described methodology was an internal model with significant unobservable inputs, the UHI Warrants are classified as Level 3.
Unobservable inputs used as of December 31, 2015 included UHI stock’s spot price of U.S.$443 and UHI stock’s expected volatility of 29%.
Significant judgment was applied in assessing the qualitative factors mentioned in IAS 39 Financial Instruments: Recognition and Measurement, to determine that the changes in cash flows, the different risk and rewards and contractual terms of the Convertible Debentures due 2025 issued by UHI and the Warrants issued by UHI resulted in the derecognition of the Convertible Debentures (see Note 4).
The Company’s management applied significant judgment to determine the classification of the Warrants issued by UHI. These warrants did not comply with the definition of a derivative financial instrument because the initial investment that the Group paid to acquire the original instrument (Convertible Debentures) was significant and a derivative requires no initial investment or one that is smaller than would be required for a contract with similar response to changes in market factors; therefore, the Group classified the Warrants issued by UHI as available-for-sale financial assets with changes in other comprehensive income.
10.
Capital Stock and Long-term Retention Plan
   
  At December 31, 2015, shares of capital stock and CPOs consisted of (in millions):
 
 
Authorized and Issued (1)
Held by a Company’s Trust (2)
Outstanding
Series “A” Shares
123,273.9
(7,864.9)
115,409.0
Series “B” Shares
58,982.9
(5,642.6)
53,340.3
Series “D” Shares
90,086.5
(5,227.0)
84,859.5
Series “L” Shares
90,086.5
(5,227.0)
84,859.5
Total
362,429.8
(23,961.5)
338,468.3
Shares in the form of CPOs
301,145.5
(17,473.1)
283,672.4
Shares not in the form of CPOs
61,284.3
(6,488.4)
54,795.9
Total
362,429.8
(23,961.5)
338,468.3
CPOs
2,573.9
(149.3)
2,424.6
 
(1)
As of December 31, 2015, the authorized and issued capital stock amounted to Ps.4,978,126 (nominal Ps.2,494,410).
   
(2)
In connection with the Company's Long-Term Retention Plan.
 
A reconciliation of the number of shares and CPOs outstanding for the years ended December 31, 2015 and 2014 is presented as follows (in millions):

    
Series “A” Shares
    
Series “B” Shares
    
Series “D” Shares
    
Series “L” Shares
    
Shares Outstanding
    
CPOs Outstanding
  
As of January 1, 2015
    
115,036.5
      
53,330.9
      
84,844.4
      
84,844.4
      
338,056.2
      
2,424.1
  
Acquired by a Company’s trust
    
(518.7
)
    
(456.5
)
    
(726.2
)
    
(726.2
)
    
(2,427.6
)
    
(20.7
)
Released by the stock plan
    
891.2
      
465.9
      
741.3
      
741.3
      
2,839.7
      
21.2
  
As of December 31, 2015
    
115,409.0
      
53,340.3
      
84,859.5
      
84,859.5
      
338,468.3
      
2,424.6
  
                                                 
    
Series “A” Shares
    
Series “B” Shares
    
Series “D” Shares
    
Series “L” Shares
    
Shares Outstanding
    
CPOs Outstanding
  
As of January 1, 2014
    
114,197.5
      
52,920.5
      
84,191.5
      
84,191.5
      
335,501.0
      
2,405.5
  
Acquired by a Company’s trust
    
(71.1
)
    
(62.6
)
    
(99.6
)
    
(99.6
)
    
(332.9
)
    
(2.9
)
Repurchased by the Company
    
-
      
-
      
-
      
-
      
-
      
-
  
Released by the stock plan
    
910.1
      
473.0
      
752.5
      
752.5
      
2,888.1
      
21.5
  
As of December 31, 2014
    
115,036.5
      
53,330.9
      
84,844.4
      
84,844.4
      
338,056.2
      
2,424.1
  
 
 
Long-term Retention Plan
   
 
During the year ended December 31, 2015, the trust for the Long-term Retention Plan (i) acquired 2,427.6 million shares of the Company, in the form of 20.7 million CPOs, in the amount of Ps.2,184,345; and (ii) released 2,478.0 million shares in the form of 21.2 million CPOs, and 361.7 million Series “A” Shares, in the aggregate amount of Ps.848,883, in connection with the Long-term Retention Plan.

The Group accrued in equity attributable to stockholders of the Company a share-based compensation expense of      Ps.1,184,524 for the year ended December 31, 2015, which amount was reflected in consolidated operating income as administrative expense.
 
11.
Retained Earnings
   
 
As of December 31, 2015 and 2014, the Company’s legal reserve amounted to Ps.2,139,007, and was classified into retained earnings in equity attributable to stockholders of the Company.

In April 2015, the Company’s stockholders approved the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series “A”, “B”, “D” and “L” Shares, not in the form of a CPO, which was paid in cash in June 2015 in the aggregate amount of Ps.1,084,192.
 
12.
Transactions with Related Parties
   
  The balances of receivables and payables between the Group and related parties as of December 31, 2015 and 2014, were as follows:
 
   
2015
    
2014
  
Current receivables:
        
UHI, including Univision
  
Ps.
-
    
Ps.
535,661
  
Grupo TV Promo, S.A. de C.V.
    
-
      
201,060
  
GSF, including Iusacell
    
-
      
57,703
  
Other
    
98,388
      
108,828
  
    
Ps.
98,388
    
Ps.
903,252
  
                 
Current payables:
                
UHI, including Univision
  
Ps.
367,545
    
Ps.
-
  
DirecTV Group, Inc.
    
47,788
      
-
  
Other
    
27,702
      
8,564
  
    
Ps.
443,035
    
Ps.
8,564
  

In the years ended December 31, 2015 and 2014, royalty revenue from Univision amounted to Ps.4,982,971 and Ps.4,194,379, respectively, and interest income from UHI amounted to Ps.142,010 and Ps.228,278, respectively.

In March 2015, the Group recognized in consolidated other income, net, a non-recurring income from Univision in the amount of U.S.$67.6 million (Ps.1,038,314), as a result of the early termination of a technical assistance agreement with Univision.

In July 2015, the Group recognized in consolidated other finance income, net, a cash amount of U.S.$135.1 million (Ps.2,194,981) paid by UHI as a consideration for the conversion of the Group’s former investment in Debentures into Warrants that are exercisable for UHI’s common stock (see Notes 3 and 4).
 
13.
Finance Expense, Net
   
  Finance (expense) income for the years ended December 31, 2015 and 2014, included:
 
   
2015
    
2014
  
Interest expense
  
Ps.
(6,239,387
)
  
Ps.
(5,551,461
)
Foreign exchange loss, net
    
(2,426,011
)
    
(1,391,169
)
Finance expense
    
(8,665,398
)
    
(6,942,630
)
Interest income (1)
    
1,027,758
      
1,327,691
  
Other finance income, net (2)
    
7,514,784
      
1,286,014
  
Finance income
    
8,542,542
      
2,613,705
  
Finance expense, net
  
Ps.
(122,856
)
  
Ps.
(4,328,925
)
 
(1)
This line item included interest income from the Group's investment in Debentures issued by UHI in the aggregate amount of Ps.142,010 for the year ended December 31, 2015, and interest income from the Group's investments in Convertible Debentures issued by UHI and Ares in the aggregate amount of Ps.450,270 for the year ended December 31, 2014.
   
(2)
This line item included a cash amount of U.S.$135.1 million (Ps.2,194,981) received as a consideration for the exchange of Convertible Debentures issued by UHI for Warrants that are exercisable for UHI's common stock, and a Ps.4,718,175 reclassification from accumulated other comprehensive income in consolidated equity in connection with a cumulative gain related to changes in fair value of such debentures, for the year ended December 31, 2015. It also included a gain in change of fair value from an embedded derivative in a host contract related to the Group's former investment in Convertible Debentures issued by UHI in the amount of Ps.409,196 and Ps.1,477,103 for the years ended December 31, 2015 and 2014, respectively.
 
14.
Income Taxes
   
  The analysis of deferred tax assets and liabilities is as follows:
 
   
December 31, 2015
    
December 31, 2014
  
Deferred tax assets:
  
Deferred tax assets to be recovered after more than 12 months
  
Ps.
14,258,185
    
Ps.
10,000,572
  
Deferred tax assets to be recovered within 12 months
    
5,104,715
      
3,906,937
  
Deferred tax liabilities:
  
Deferred tax liabilities to be paid after more than 12 months
    
(10,767,190
)
    
(5,485,297
)
Deferred tax liabilities to be paid within 12 months
    
(930,672
)
    
(104,944
)
Deferred tax assets, net
  
Ps.
7,665,038
     Ps.
8,317,268
  
 
The deferred taxes as of December 31, 2015 and 2014, were principally derived from the following items:

   
December 31, 2015
    
December 31, 2014
  
Assets:
        
Accrued liabilities
  
Ps.
2,656,354
    
Ps.
1,284,458
  
Allowance for doubtful accounts
    
1,187,427
      
917,269
  
Customer advances
    
2,598,037
      
2,186,836
  
Prepaid expenses and other items
    
-
      
297,836
  
Tax loss carryforwards
    
10,196,480
      
6,754,354
  
Liabilities:
                
Investments
    
(3,504,137
)
    
(443,538
)
Property, plant and equipment, net
    
(954,678
)
    
(202,002
)
Derivative financial instruments
    
(1,801
)
    
(152,491
)
Intangible assets and transmission rights
    
(3,922,230
)
    
(2,961,129
)
Prepaid expenses and other items
    
(1,188,642
)
    
-
  
Deferred income taxes of Mexican companies
    
7,066,810
      
7,681,593
  
Deferred income taxes assets of foreign subsidiaries
    
195,348
      
200,410
  
Asset tax
    
402,880
      
435,265
  
Deferred income tax asset, net
  
Ps.
7,665,038
    
Ps.
8,317,268
  
 
15.
Earnings per CPO/Share
   
  At December 31, 2015 and 2014 the weighted average of outstanding total shares, CPOs and Series “A”, Series “B”, Series “D” and Series “L” Shares (not in the form of CPO units), was as follows (in thousands):
 
 
December 31, 2015
December 31, 2014
Total Shares
338,290,942
337,550,941
CPOs
2,423,881
2,420,674
Shares not in the form of CPO units:
    
 
Series “A” Shares
54,662,750
54,331,451
 
Series “B” Shares
187
187
 
Series “D” Shares
239
239
 
Series “L” Shares
239
239

Basic earnings per CPO and per each Series “A”, Series “B”, Series “D” and Series “L” Share (not in the form of a CPO unit) for the years ended December 31, 2015 and 2014, are presented as follows:

 
2015
2014
 
Per CPO
Per Each Series A”, “B”, “D” and “L Share
Per CPO
Per Each Series A”, “B”, “D” and “L Share
Net income attributable to stockholders of the Company
Ps. 3.77
Ps. 0.03
Ps. 1.87
Ps. 0.02
 
Diluted earnings per CPO and per Share attributable to stockholders of the Company:
 
 
December 31, 2015
December 31, 2014
Total Shares
362,429,887
362,429,887
CPOs
2,573,894
2,573,894
Shares not in the form of CPO units:
    
 
Series “A” Shares
58,926,613
58,926,613
 
Series “B” Shares
2,357,208
2,357,208
 
Series “D” Shares
239
239
 
Series “L” Shares
239
239
 
Diluted earnings per CPO and per each Series “A”, Series “B”, Series “D” and Series “L” Share (not in the form of a CPO unit) for the years ended December 31, 2015 and 2014, are presented as follows:

 
2015
2014
 
Per CPO
Per Each Series A”, “B”, “D” and “L Share
Per CPO
Per Each Series A”, “B”, “D” and “L Share
Net income attributable to stockholders of the Company
$ 3.52
$ 0.03
$ 1.74
$ 0.01
 
16.
Segment Information
   
  The table below presents information by segment and a reconciliation to consolidated total for the years ended December 31:
 
   
Total Revenues
    
Intersegment Revenues
    
Consolidated Revenues
    
Segment Income
  
2015:
                
Content
  
Ps.
34,332,572
    
Ps.
1,462,004
    
Ps.
32,870,568
    
Ps.
14,564,225
  
Sky
    
19,253,526
      
107,197
      
19,146,329
      
8,972,258
  
Telecommunications (1)
    
28,488,313
      
148,887
      
28,339,426
      
11,405,556
  
Other Businesses
    
8,124,337
      
428,831
      
7,695,506
      
753,340
  
Segment totals
    
90,198,748
      
2,146,919
      
88,051,829
      
35,695,379
  
Reconciliation to consolidated amounts:
                                
Eliminations and corporate expenses
    
(2,146,919
)
    
(2,146,919
)
    
-
      
(1,960,848
)
Depreciation and amortization expense
    
-
      
-
      
-
      
(14,660,929
)
Consolidated total before other expense
    
88,051,829
      
-
      
88,051,829
      
19,073,602
(2) 
Other expense, net
    
-
      
-
      
-
      
(328,477
)
Consolidated total
  
Ps.
88,051,829
    
Ps.
-
    
Ps.
88,051,829
    
Ps.
18,745,125
(3) 
                                 
    
Total Revenues
    
Intersegment Revenues
    
Consolidated Revenues
    
Segment Income
  
2014:
                                
Content
  
Ps.
34,868,080
    
Ps.
1,039,950
    
Ps.
33,828,130
    
Ps.
15,534,269
  
Sky
    
17,498,586
      
13,982
      
17,484,604
      
8,211,269
  
Telecommunications
    
20,937,250
      
116,258
      
20,820,992
      
7,882,911
  
Other Businesses
    
8,204,060
      
219,434
      
7,984,626
      
651,267
  
Segment totals
    
81,507,976
      
1,389,624
      
80,118,352
      
32,279,716
  
Reconciliation to consolidated amounts:
                                
Eliminations and corporate expenses
    
(1,389,624
)
    
(1,389,624
)
    
-
      
(1,478,534
)
Depreciation and amortization expense
    
-
      
-
      
-
      
(11,563,085
)
Consolidated total before other expense
    
80,118,352
      
-
      
80,118,352
      
19,238,097
(2) 
Other expense, net
    
-
      
-
      
-
      
(5,281,690
)
Consolidated total
  
Ps.
80,118,352
    
Ps.
-
    
Ps.
80,118,352
    
Ps.
13,956,407
(3) 
 
(1)
Cablecom and Telecable contributed total revenues and segment income to the Group's Telecommunications segment for the year ended December 31, 2015, in the aggregate amount of Ps.6,467,907 and Ps.3,083,607, respectively, as the Group began to consolidate the Cablecom and Telecable results of operations beginning in September 2014 and January 2015, respectively (see Note 3).
   
(2)
Consolidated total represents income before other expense.
   
(3)
Consolidated total represents consolidated operating income.
 
Seasonality of Operations

The Group’s results of operations are seasonal. The Group typically recognizes a large percentage of its consolidated net sales (principally advertising) in the fourth quarter in connection with the holiday shopping season. In 2015 and 2014, the Group recognized 28.3% and 30.0%, respectively, of its annual consolidated net sales in the fourth quarter of the year. The Group’s costs, in contrast to its revenues, are more evenly incurred throughout the year and generally do not correlate to the amount of advertising sales.

The consolidates net income attributable to stockholders of the company for each of the four quarters in the period ended December 31, 2015, is presented as follows:

 
Quarter
  
Quarter
    
Accumulated
  
1st / 15
  
Ps.
1,453,445
    
Ps.
1,453,445
  
2nd / 15
    
1,328,732
      
2,782,177
  
3rd / 15
    
6,545,753
      
9,327,930
  
4th / 15
    
1,571,205
      
10,899,135
  
 
17.
Contingencies
   
 
In March 2015, the investigative authority of the IFT issued a preliminary opinion that presumed the probable existence of substantial power in the market of restricted television and audio services in Mexico, with respect to the Company and certain of its subsidiaries. On September 30, 2015, the Governing Board of the IFT determined that the Group does not have substantial power in such market (“IFT Resolution”). Although this resolution is final at the administrative level, certain third parties have filed amparo proceedings challenging the constitutionality of the IFT Resolution; those challenges are still under review by the relevant courts.

There are several legal actions and claims pending against the Group which are filed in the ordinary course of business. In the opinion of the Company’s management, none of these actions and claims is expected to have a material adverse effect on the Group’s financial statements as a whole; however, the Company’s management is unable to predict the outcome of any of these legal actions and claims.
 

- - - - - - - - -
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
Final Printing
 
COMPANY NAME
MAIN ACTIVITIES
NUMBER OF SHARES
% OWNERSHIP
TOTAL AMOUNT
(Thousands of Mexican Pesos)
ACQUISITION
COST
BOOK
VALUE
1
ARGOS COMUNICACION, S.A. DE C.V.
PRODUCTION OF T.V. PROGRAMS  BROADCASTING OF T.V.
34,151,934
33.00
141,932
67,927
 
 
 
 
 
 
 
2
UNIVISION HOLDINGS,INC
PROMOTION AND/OR DEVELOPMENT OF   ENTERTAINMENT COMPANIES
1,110,382
10.03
4,280,342
5,685,748
 
 
 
 
 
 
 
3
IMAGINA MEDIA AUDIOVISUAL, S.L.
PRODUCTION AND COMMERCIALIZATION OF  TELEVISION PROGRAMMING
76,196,993
19.89
1,689,782
1,921,590
 
 
 
 
 
 
 
4
EDITORIAL CLIO, LIBROS Y VIDEOS,S.A. DE C.V.
PUBLISHING AND PRINTING  OF BOOKS AND MAGAZINES
3,227,050
30.00
32,270
12,189
 
 
 
 
 
 
 
5
ENDEMOL MEXICO, S.A. DE C.V.
PRODUCTION AND COMMERCIALIZATION OF  TELEVISION PROGRAMMING
25,000
50.00
25
129
 
 
 
 
 
 
 
6
GRUPO DE TELECOMUNICACIONES DEALTA CAPACIDAD, S.A.P.I. DE C.V.
TELECOM
54,666,667
33.33
54,667
574,480
 
 
 
 
 
 
 
7
OCESA ENTRETENIMIENTO, S.A. DE C.V.
LIVE ENTERTAINMENT IN  MEXICO
14,100,000
40.00
1,062,811
938,995
 
 
 
 
 
 
 
8
OLLIN VFX, S.A.P.I. DE C.V.
TELEVISION AND CINEMA PRODUCTION 
34
25.37
13,333
1,928
 
 
 
 
 
 
 
9
T&V S.A.S.
PRODUCTION AND COMMERCIALIZATION OF ELEVISION PROGRAMMING
1,849
49.97
312
312
 
 
 
 
 
 
 
10
TELEVISA, CJ, GRAND, S.A. DE C.V.
DIRECT SALES BY T.V.
10
50
108,750
67,868
 
 
 
 
 
 
 
11
OLLIN VFX SERVICIOS, S.A. DE C.V. 
TELEVISION AND CINEMA PRODUCTION
25
25.00
25
735
 
 
 
 
 
 
 
 
TOTAL INVESTMENT IN ASSOCIATES
 
 
 
7,384,249
9,271,901
 
 
 
 
 
 
 
 
OBSERVATIONS:

 
CREDITS BREAKDOWN
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
Final Printing
CREDIT TYPE / INSTITUTION 
FOREIGN
INSTITUTION (YES/NOT)
DATE OF CONTRACT 
AMORTIZATION DATE
INTEREST RATE  
AMORTIZATION OF CREDITS DENOMINATED IN PESOS
AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
TIME INTERVAL
TIME INTERVAL
CURRENT YEAR
UNTIL 1
YEAR
UNTIL 2 YEAR
UNTIL 3 YEAR
UNTIL 4 YEAR
UNTIL 5
YEAR
CURRENT YEAR
UNTIL 1 YEAR
UNTIL 2 YEAR
UNTIL 3 YEAR
UNTIL 4 YEAR
UNTIL 5
YEAR
BANKS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FOREIGN TRADE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECURED
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMERCIAL BANKS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HSBC MÉXICO, S.A.
NO
3/28/2011
3/30/2018
TIIE+117.5
NA
624,479
1,248,958
624,479
 
 
 
 
 
 
 
 
AF BANREGIO, S.A. DE C.V.
NO
10/4/2012
10/2/2017
TIIE+2.50
NA
9,675
15,925
 
 
 
 
 
 
 
 
 
HSBC MÉXICO, S.A.
NO
5/29/2013
5/29/2019
TIIE+1.70
NA
64,705
64,782
64,782
196,008
 
 
 
 
 
 
 
HSBC MÉXICO, S.A.
NO
7/4/2014
7/4/2019
TIIE+1.40
NA
 
 
 
298,943
 
 
 
 
 
 
 
BANCO SANTANDER, S.A.
NO
9/29/2014
9/29/2016
TIIE+.70
NA
1,781,225
 
 
 
 
 
 
 
 
 
 
BANCO SANTANDER, S.A.
NO
1/30/2015
9/29/2016
TIIE+.35
NA
499,763
 
 
 
 
 
 
 
 
 
 
BANCO SANTANDER, S.A.
NO
5/8/2015
5/7/2020
TIIE+1.30
NA
 
 
 
 
249,480
 
 
 
 
 
 
BANCO SANTANDER, S.A.
NO
1/8/2015
9/10/2019
TIIE+1.40
NA
 
 
 
249,233
 
 
 
 
 
 
 
BANCO MERCANTIL DEL NORTE, S.A.
NO
5/15/2015
4/30/2022
TIIE+1.30
NA
 
138,203
207,304
207,304
936,442
 
 
 
 
 
 
OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL BANKS
 
 
 
 
               -
   2,979,847
   1,467,868
      896,565
       951,488
    1,185,922
0
0
0
0
0
0
STOCK MARKET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LISTED STOCK EXCHANGE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UNSECURED
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SENIOR NOTES
YES
5/9/2007
5/11/2037
8.93
NA
 
 
 
 
4,484,472
 
 
 
 
 
 
NOTES
NO
10/14/2010
10/1/2020
7.38
NA
 
 
 
 
9,965,910
 
 
 
 
 
 
SENIOR NOTES
YES
5/14/2013
5/14/2043
7.62
NA
 
 
 
 
6,435,067
 
 
 
 
 
 
NOTES
NO
4/7/2014
4/1/2021
TIIE+.35
NA
 
 
 
 
5,988,966
 
 
 
 
 
 
NOTES
NO
5/11/2015
5/2/2022
TIIE+.35
NA
 
 
 
 
4,988,941
 
 
 
 
 
 
SENIOR NOTES
YES
5/6/2008
5/15/2018
6.31
NA
 
 
 
 
 
NA
 
 
8,591,776
 
 
SENIOR NOTES
YES
3/18/2005
3/18/2025
6.97
NA
 
 
 
 
 
NA
 
 
 
 
9,975,238
SENIOR NOTES
YES
3/11/2002
3/11/2032
8.94
NA
 
 
 
 
 
NA
 
 
 
 
5,136,099
SENIOR NOTES
YES
11/23/2009
1/15/2040
6.97
NA
 
 
 
 
 
NA
 
 
 
 
10,177,269
SENIOR NOTES
YES
5/13/2014
5/13/2045
5.26
NA
 
 
 
 
 
NA
 
 
 
 
16,718,466
SENIOR NOTES
YES
11/24/2015
1/30/2026
4.86
NA
 
 
 
 
 
NA
 
 
 
 
5,053,422
SENIOR NOTES
YES
11/24/2015
1/31/2046
6.44
NA
 
 
 
 
 
NA
 
 
 
 
15,413,295
SECURED
 
 
 
 
0
0
0
0
0
  31,863,356
0
0
0
8,591,776
0
     62,473,789
PRIVATE PLACEMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UNSECURED
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECURED
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL STOCK MARKET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CURRENT AND NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WITH COST
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
8/1/2012
7/1/2020
 
NA
99,337
88,059
89,589
91,542
93,874
 
 
 
 
 
 
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
7/1/2014
8/1/2019
 
NA
27,198
26,290
25,446
17,102
279
 
 
 
 
 
 
ALD AUTOMITIVE, S.A. DE C.V.
NO
12/1/2013
3/1/2016
 
NA
1,769
 
 
 
 
 
 
 
 
 
 
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
11/1/2014
11/1/2022
 
NA
8,501
3,296
3,081
3,159
10,024
 
 
 
 
 
 
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
11/1/2014
7/1/2019
 
NA
25,287
27,685
17,579
26,706
 
 
 
 
 
 
 
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
6/1/2015
1/1/2024
 
NA
10,436
5,322
5,449
5,583
30,194
 
 
 
 
 
 
INTELSAT GLOBAL  SALES & MARKETING, LTD.
YES
10/1/2012
9/1/2027
 
NA
 
 
 
 
 
NA
272,539
293,114
315,242
339,040
3,660,005
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
8/1/2012
7/1/2021
  
NA
 
 
 
 
 
NA
45,535
20,802
21,634
22,515
47,872
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
5/29/2013
7/1/2017
  
NA
 
 
 
 
 
NA
4,585
3,076
 
 
 
CISCO SYSTEMS CAPITAL CORPORATION
NO
10/10/2012
8/27/2016
  
NA
 
 
 
 
 
NA
16,369
 
 
 
 
TOTAL CURRENT AND NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WITH COST
 
 
 
 
0
172,528
150,652
141,144
144,092
134,371
0
       339,028
     316,992
     336,876
    361,555
       3,707,877
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUPPLIERS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
VARIOUS
NO
12/1/2015
12/31/2016
 
NA
12,527,422
 
 
 
 
 
 
 
 
 
 
VARIOUS
YES
12/1/2015
12/31/2016
 
 
 
 
 
 
 
NA
4,834,062
 
 
 
 
TOTAL SUPPLIERS
 
 
 
 
0
 12,527,422
0
0
0
0
0
    4,834,062
0
0
0
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CURRENT AND NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
VARIOUS
NO
 
 
 
NA
23,297,537
1,128
2,875
0
470,943
 
 
 
 
 
 
TRANSMISION RIGHTS
NO
 
 
 
NA
 
551,438
236,657
11,076
60,072
 
 
 
 
 
 
CUSTOMER DEPOSITS AND ADVANCES
NO
 
 
 
NA
 
335,889
117,094
61,548
 
 
 
 
 
 
 
2010 AND 2014 MEXICAN TAX REFORM
NO
 
 
 
NA
 
815,486
1,482,886
1,429,058
2,610,648
 
 
 
 
 
 
DERIVATIVE FINANCIAL INSTRUMENTS
NO
 
 
 
NA
 
 
116,108
3,824
105,728
 
 
 
 
 
 
VARIOUS
YES
 
 
 
NA
 
 
 
 
 
NA
1,948,790
 
 
 
10,501
TRANSMISION RIGHTS
YES
 
 
 
NA
 
 
 
 
 
NA
 
723,741
402,702
315,958
384,196
OTHER CURRENT AND NON-CURRENT LIABILITIES
 
 
 
 
0
 23,297,537
   1,703,941
   1,955,620
    1,505,506
    3,247,391
0
    1,948,790
     723,741
     402,702
    315,958
          394,697
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL
 
 
 
 
0
 38,977,334
   3,322,461
   2,993,329
    2,601,086
  36,431,040
0
    7,121,880
  1,040,733
  9,331,354
    677,513
     66,576,363
 
 
NOTES

  THE EXCHANGE RATES FOR THE CREDITS DENOMINATED  IN FOREIGN CURRENCY WERE AS FOLLOWS:

                                      $      17.2160     PESOS PER U.S. DOLLAR

DOES NOT INCLUDE TAX LIABILITIES PAYABLE IN FOREIGN CURRENCY AND MEXICAN PESOS (REF. 21050000 TAXES PAYABLE) OF PS.120,253 AND PS.2,758,583, RESPECTIVELY, FOR EFFECTS OF VALIDATION OF THE SYSTEM.

BANK LOANS AND SENIOR NOTES ARE PRESENTED NET OF UNAMORTIZED FINANCE COSTS IN THE AGGREGATE AMOUNT OF PS.1,387,876.
 
MONETARY FOREIGN CURRENCY POSITION
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
Final Printing
 
DOLLARS
OTHER CURRENCIES
TOTAL
TRADE BALANCE
THOUSANDS
THOUSANDS
THOUSANDS
THOUSANDS
THOUSANDS
(THOUSANDS OF PESOS)
OF DOLLARS
OF PESOS
OF DOLLARS
OF PESOS
OF PESOS
           
MONETARY ASSETS
4,485,483
77,222,075
117,005
2,014,358
79,236,433
           
   CURRENT
2,461,884
42,383,795
117,005
2,014,358
44,398,153
           
   NON-CURRENT
2,023,599
34,838,280
    
34,838,280
           
LIABILITIES POSITION
4,966,594
84,263,247
35,133
604,849
84,868,096
           
   CURRENT
385,895
6,643,568
34,768
598,565
7,242,133
           
   NON-CURRENT
4,580,699
77,619,679
365
6,284
77,625,963
           
NET BALANCE
(481,111)
(7,041,172)
81,872
1,409,509
(5,631,663)
 
NOTES
 
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS :
 
 
PS.
17.2160
  
PESOS PER U.S. DOLLAR
   
18.7258
  
PESOS PER EURO
   
12.4577
  
PESOS PER CANADIAN DOLLAR
   
1.3259
  
PESOS PER ARGENTINEAN PESO
   
0.5748
  
PESOS PER URUGUAYAN PESO
   
0.0243
  
PESOS PER CHILEAN PESO
   
0.0054
  
PESOS PER COLOMBIAN PESO
   
5.0486
  
PESOS PER PERUVIAN NUEVO SOL
   
17.2397
  
PESOS PER SWISS FRANC
   
2.7326
  
PESOS PER STRONG BOLIVAR
   
4.3482
  
PESOS PER BRAZILIAN REAL
   
22.3774
  
PESOS PER STERLING LIBRA
   
2.6518
  
PESOS PER CHINESE YUAN
   
2.0379
  
PESOS PER SWEDISH KRONA
 
DEBT INSTRUMENTS
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
Final Printing
 
FINANCIAL RESTRICTIONS OF LONG - TERM DEBT SECURITIES

THE AGREEMENTS OF THE U.S.$500 MILLION, U.S.$600 MILLION, U.S.$300 MILLION, U.S.$300 MILLION, PS.4,500 MILLION, U.S.$600 MILLION, PS.6,500 MILLION, U.S.$1,000 MILLION AND U.S.$900 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A.B. WITH MATURITY IN 2018, 2025, 2026, 2032, 2037, 2040, 2043, 2045 AND 2046, RESPECTIVELY, CONTAIN COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
 
THE AGREEMENTS OF NOTES ("CERTIFICADOS BURSÁTILES") DUE 2020, 2021 AND 2022 IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.10,000 MILLION, PS.6,000 MILLION, AND PS.5,000 MILLION, RESPECTIVELY, CONTAINS COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED SUBSIDIARIES TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
 
UNDER THE TERMS OF THE AGREEMENTS OF LONG-TERM CREDITS ENTERED INTO BY THE COMPANY WITH A MEXICAN BANK IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.2,500 MILLION, AND MATURITIES BETWEEN 2016 AND 2018, THE COMPANY IS REQUIRED TO (A) MAINTAIN CERTAIN FINANCIAL COVERAGE RATIOS RELATED TO INDEBTEDNESS AND INTEREST EXPENSE; AND (B) COMPLY WITH A RESTRICTIVE COVENANT ON SPIN-OFFS, MERGERS AND SIMILAR TRANSACTIONS.
 
UNDER THE TERMS OF THE AGREEMENTS OF LONG-TERM CREDITS ENTERED INTO BY A SUBSIDIARY OF THE COMPANY WITH FOUR MEXICAN BANKS FOR AN AGGREGATE PRINCIPAL AMOUNT OF $2,709 MILLION AS OF DECEMBER 31, 2015 AND MATURITIES BETWEEN 2016 AND 2022, THIS SUBSIDIARY IS REQUIRED TO COMPLY WITH CERTAIN FINANCIAL RATIOS AND SOME RESTRICTIVE COVENANTS.
 
 
COMPLIANCE WITH FINANCIAL RESTRICTIONS

AT DECEMBER 31, 2015, THE GROUP HAS COMPLIED WITH THE FINANCIAL RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES DESCRIBED ABOVE.
 
 
SALES DISTRIBUTION BY PRODUCT
 
TOTAL SALES
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
Final Printing
 
NET SALES
MARKET
SHARE
(%)
MAIN
MAIN PRODUCTS
VOLUME
  
AMOUNT
 
TRADEMARKS
CUSTOMERS
     
DOMESTIC SALES
INTERSEGMENT ELIMINATIONS
  
(2,131,657)
      
           
CONTENT:
          
ADVERTISING
  
22,503,689
    
GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V.
         
AT&T COMERCIALIZACIÓN MÓVIL, S. DE R.L. DE C.V.
         
UNILEVER DE MÉXICO, S. DE R.L. DE C.V.
         
THE CONCENTRATE MANUFACTURING COMPANY OF IRELAND
         
TELEFONOS DE MÉXICO, S.A.B. DE C.V.
         
COMPAÑÍA PROCTER & GAMBLE MÉXICO, S. DE R.L. DE C.V.
         
BIMBO, S.A. DE C.V.
         
THE COCA COLA EXPORT CORPORATION SUCURSAL EN MÉXICO
         
ANHEUSER-BUSCH MÉXICO HOLDING, S. DE R.L. DE C.V.
         
MARCAS NESTLÉ, S.A. DE C.V.
NETWORK SUBSCRIPTION REVENUE
  
2,526,170
    
MEGA CABLE, S.A. DE C.V.
LICENSING AND SYNDICATIONS
  
751,686
    
VARIOUS
           
SKY  (INCLUDES LEASING OF SET-TOP
          
EQUIPMENT).
          
DTH BROADCAST SATELLITE
  
17,419,980
  
SKY
SUBSCRIBERS
PAY PER VIEW
  
203,251
      
CHANNEL COMMERCIALIZATION
  
319,585
    
WDC MÉXICO S. DE R.L. DE C.V.
           
TELECOMMUNICATIONS (INCLUDES
          
LEASING OF SET-TOP EQUIPMENT):
          
DIGITAL SERVICE
  
12,203,074
  
CABLEVISIÓN, CABLEMÁS, TVI,
SUBSCRIBERS
INTERNET SERVICES
  
7,617,723
  
CABLECOM, IZZI, TELECABLE
  
SERVICE INSTALLATION
  
118,018
      
PAY PER VIEW
  
56,571
      
CHANNEL COMMERCIALIZATION
  
606,612
    
MULTILMEDIOS S.A. DE C.V.
         
TENEDORA DE CINES, S.A. DE C.V.
         
MEDIA SOLUTIONS DE MONTERREY, S.A. DE C.V.
         
COPPEL, S.A. DE C.V.
TELEPHONY
  
3,202,670
      
TELECOMMUNICATIONS
  
3,989,715
  
BESTEL Y CABLECOM
SUBSCRIBERS
OTHER
  
267,378
      
           
OTHER BUSINESSES:
          
PUBLISHING:
          
MAGAZINE CIRCULATION
24,152
521,058
  
TV Y NOVELAS MAGAZINE,
GENERAL PUBLIC (AUDIENCE)
       
MEN´S HEALTH MAGAZINE,
DEALERS
       
VANIDADES MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
COSMOPOLITAN MAGAZINE
  
       
NATIONAL GEOGRAPHIC MAGAZINE
  
       
AUTOMÓVIL PANAMERICANO MAGAZINE
  
       
TÚ MAGAZINE
  
       
SKY VIEW MAGAZINE
  
       
MUY INTERESANTE MAGAZINE
  
       
COCINA FÁCIL MAGAZINE
  
ADVERTISING
  
665,296
    
FÁBRICAS DE CALZADO ANDREA, S.A. DE C.V.
         
KIMBERLY CLARK DE MÉXICO, S.A.B. DE C.V.
         
DILTEX, S.A. DE C.V.
         
DISTRIBUIDORA LIVERPOOL, S.A. DE C.V.
         
NUEVA WAL MART DE MÉXICO, S. DE R.L. DE C.V.
         
COLGATE PALMOLIVE, S.A. DE C.V.
         
PERFUMERIE VERSAILLES, S.A. DE C.V.
         
MARY KAY COSMETICS DE MÉXICO, S.A. DE C.V.
OTHER INCOME
  
12,462
    
VARIOUS
           
DISTRIBUTION, RENTALS, AND SALE
          
OF MOVIE RIGHTS
  
558,738
    
TENEDORA DE CINES, S.A. DE C.V.
         
OPERADORA DE CINEMAS, S.A. DE C.V.
         
OPERADORA CINEMEX DE MÉXICO, S.A. DE C.V.
         
GRUPO CINEMAS DEL PACIFICO, S.A. DE C.V.
         
AMOR POR EL CINE , S.A. DE C.V.
SPECIAL EVENTS AND SHOW PROMOTION
  
1,132,314
  
CLUB DE FÚTBOL AMÉRICA
GENERAL PUBLIC (AUDIENCE)
       
ESTADIO AZTECA
FEDERACIÓN MEXICANA DE FÚTBOL ASOCIACIÓN, A.C.
         
PVH MÉXICO, S.A. DE C.V.
GAMING
  
2,367,190
  
PLAY CITY
GENERAL PUBLIC (AUDIENCE)
       
MULTIJUEGOS
  
ADVERTISED TIME SOLD IN RADIO
  
786,735
    
HAVAS MEDIA, S.A DE C.V.
         
ARENA COMMUNICATIONS, S.A. DE C.V.
         
OPTIMUM MEDIA DIRECTION DE MÉXICO, S.A. DE C.V.
         
IPG MEDIA BRANDS COMMUNICATIONS, S.A. DE C.V.
         
TIENDAS CHEDRAUI, S.A. DE C.V.
PUBLISHING DISTRIBUTION
8,232
228,345
  
HOLA MÉXICO MAGAZINE
VARIOUS
       
ENTREPRENEUR MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
MINIREVISTA MINA MAGAZINE
DEALERS
       
MONSTER HIGH MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
GLAMOUR MAGAZINE
  
       
SELECCIONES MAGAZINE
  
           
EXPORT SALES
          
CONTENT:
          
ADVERTISING
  
344,215
    
CC MEDIOS Y COMUNICACIONES, C.A.
NETWORK SUBSCRIPTION REVENUE
  
1,069,210
    
INTERESES EN EL ITSMO, S.A.
         
DIRECTV ARGENTINA SOCIEDAD ANÓNIMA
         
GALAXY ENTERTAINMENT DE VZLA, C.A. DIRECTV
           
LICENSING AND SYNDICATIONS
  
6,956,184
  
TELEVISA
NETFLIX, INC
       
TELEVISA
TVSB CANAL 4 DE SAO PAULO, S.A.
       
TELEVISA
COMPAÑÍA PERUANA DE RADIODIFUSIÓN, S.A.
       
TELEVISA
RED TELEVISIVA MEGAVISION, S.A.
       
TELEVISA
RCN TELEVISIÓN, S.A.
OTHER BUSINESSES:
          
SPECIAL EVENTS AND SHOW PROMOTION
  
129,374
  
CLUB AMÉRICA
  
DISTRIBUTION, RENTALS, AND SALE
          
OF MOVIE RIGHTS
  
22,295
    
NETFLIX, INC
           
SUBSIDIARIES SALES ABROAD
          
CONTENT:
          
ADVERTISING
  
181,418
    
INITIATIVE MEDIA, INC.
         
M PARAMOUNT & TEAM DETROIT
         
GROUP M MATRIX
SKY  (INCLUDES LEASING OF SET-TOP
          
EQUIPMENT).
          
DTH BROADCAST SATELLITE
  
1,310,710
  
SKY
SUBSCRIBERS
TELECOMMUNICATIONS:
          
TELECOMMUNICATIONS
  
426,552
  
BESTEL
SUBSCRIBERS
           
OTHER BUSINESS:
          
PUBLISHING:
          
MAGAZINE CIRCULATION
27,980
606,144
  
T.V. Y NOVELAS MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
GENTE MAGAZINE
DEALERS
       
PAPARAZZI MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
VANIDADES MAGAZINE
  
       
COSMOPOLITAN MAGAZINE
  
       
NATIONAL GEOGRAPHIC MAGAZINE
  
       
MUY INTERESANTE  MAGAZINE
  
       
BILINKEN MAGAZINE
  
       
PARA TI MAGAZINE
  
       
CONDORITO MAGAZINE
  
ADVERTISING
  
809,882
    
MEDIACOM MIAMI
         
MCCANN ERICKSON N.Y.
         
MEDIA PLANNING, S.A.
         
R.C.N. TELEVISIÓN S.A.
PUBLISHING DISTRIBUTION:
2,691
89,987
  
SELECCIONES MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
MAGALY TV MAGAZINE
DEALERS
       
VOGUE MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
AXXIS MAGAZINE
  
       
EL CUERPO HUMANO MAGAZINE
  
       
HISTORIAS NATIONAL GEOGRAPHIC MAGAZINE
  
       
15 MINUTOS MAGAZINE
  
       
ALMANAQUE MAGAZINE
  
       
ESCUELA PARA TODOS MAGAZINE
  
RENTALS OF MOVIE FILMS
  
194,517
    
LIONS GATES FILMS, INC.
INTERSEGMENT ELIMINATIONS
  
(15,262)
      
           
TOTAL
63,055
88,051,829
      
 
ANALYSIS OF PAID CAPITAL STOCK
CHARACTERISTIC OF THE SHARES
 
CONSOLIDATED
Final Printing
SERIES
NOMINAL VALUE (PS.)
VALID COUPON
NUMBER OF SHARES
CAPITAL STOCK
FIXED
PORTION
VARIABLE
PORTION
MEXICAN
FREE
SUBSCRIPTION
FIXED
VARIABLE
A
0.00000
0
115,409,011,592
0
115,409,011,592
0
848,428
0
B
0.00000
0
53,340,312,255
0
53,340,312,255
0
405,948
0
D
0.00000
0
84,859,529,456
0
84,859,529,456
0
620,017
0
L
0.00000
0
84,859,529,456
0
0
84,859,529,456
620,017
0
TOTAL
338,468,382,759
0
253,608,853,303
84,859,529,456
2,494,410
0
                 
TOTAL NUMBER OF SHARES REPRESENTING THE PAID CAPITAL STOCK ON THE DATE OF THE INFORMATION :
  338,468,382,759
  
                 
 
NOTES:
THE NUMBER OF OUTSTANDING SHARES PRESENTED IN THE TABLE ABOVE PLUS THE SHARES REPURCHASED REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE NOTE 10 TO CONSOLIDATED FINANCIAL STATEMENTS.
 
 
 
FINANCIAL STATEMENT NOTES
 
CONSOLIDATED
Final Printing
 
11060060: AS OF DECEMBER 31, 2015 AND 2014, INCLUDES TRANSMISSION RIGHTS AND PROGRAMMING FOR PS.5,389,133 AND PS.4,851,722, RESPECTIVELY.

12080050: AS OF DECEMBER 31, 2015 AND 2014, INCLUDES TRANSMISSION RIGHTS AND PROGRAMMING FOR PS.9,139,149 AND PS.8,994,398, RESPECTIVELY.

91000010: AT DECEMBER 31, 2015 DOESN´T INCLUDES TAX LIABILITIES IN FOREIGN CURRENCY FOR PS.120,253 (SEE ATTACHED BREAKDOWN OF CREDITS).

CUM40180000: THIS INFORMATION IS RELATED TO EARNINGS PER CPO. THE CPOS ARE THE SECURITIES TRADED IN THE MEXICAN STOCK EXCHANGE.

CUM40190000: THIS INFORMATION IS RELATED TO EARNINGS PER DILUTED CPO.

40180000: THIS INFORMATION IS RELATED TO EARNINGS PER CPO. THE CPOS ARE THE SECURITIES TRADED IN THE MEXICAN STOCK EXCHANGE.

40190000: THIS INFORMATION IS RELATED TO EARNINGS PER DILUTED CPO.
THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER CONCEPTS.

EXHIBIT 1
TO THE ELECTRONIC FORM TITLED "PREPARATION, FILING, DELIVERY AND DISCLOSURE OF QUARTERLY ECONOMIC, ACCOUNTING AND ADMINISTRATIVE INFORMATION BY ISSUERS"

III. QUALITATIVE AND QUANTITATIVE INFORMATION
 
i.
Management's discussion of the policies concerning the use of financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes. The discussion must include a general description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party. If applicable, provide information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.
 

Management's discussion of the policies concerning the use of financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes.

In accordance with the policies and procedures implemented by the Vice President of Finance and Risk and the Vice President and Corporate Controller, along with the Vice President of Internal Audit, the Company has entered into certain financial derivative transactions for hedging purposes in both the Mexican and international markets so as to manage its exposure to the market risks associated with the changes in interest and foreign exchange rates and inflation. In addition, the Company's Investments Committee has established guidelines for the investment in structured notes or deposits associated with other derivatives, which by their nature may be considered as derivative transactions for trading purposes. It should be noted that in the fourth quarter of 2015, no such financial derivatives were outstanding. Pursuant to the provisions of International Financial Reporting Standards Board, certain financial derivative transactions originally intended to serve as a hedge and in effect until December 31st, 2015, are not within the scope of hedge accounting as specified in such Standards and, consequently, are recognized in the accounting based on the provisions included in the aforementioned Standards.

General description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party.

The Company's principal objective when entering into financial derivative transactions is to mitigate the effects of unforeseen changes in interest and foreign exchange rates and inflation, so as to reduce the volatility in its results and cash flows as a result of such changes.

The Company monitors its exposure to the interest rate risk by: (i) assessing the difference between the interest rates applicable to its debt and temporary investments, and the prevailing market rates for similar instruments; (ii) reviewing its cash flow requirements and financial ratios (interest coverage); (iii) assessing the actual and budgeted-for trends in the principal markets; and (iv) assessing the prevailing industry practices and other similar companies. This approach enables the Company to determine the optimum mix between fixed- and variable-rate interest for its debt.

Foreign exchange risk is monitored by assessing the Company's monetary position in U.S. dollars and its budgeted cash flow requirements for investments anticipated to be denominated in U.S. dollars and the service of its U.S. dollar-denominated debt.

Financial derivative transactions are reported from time to time to the Audit and Corporate Practices Committee.

The Company has entered into master derivatives agreements with both domestic and foreign financial institutions, that are internationally recognized institutions with which the Company, from time to time, has entered into financial transactions involving corporate and investment banking, as well as treasury services. The form agreement used in connection with financial derivatives transactions with foreign financial institutions is the Master Agreement published by the International Swaps and Derivatives Association, Inc. ("ISDA") and with local institutions is the Master Agreement published by ISDA and in some instances, using the form agreement ISDAmex. In both cases, the main terms and conditions are standard for these types of transactions and include mechanisms for the appointment of calculation or valuation agents.

In addition, the Company enters into standard guaranty agreements that set forth the margins, collateral and lines of credit applicable in each instance. These agreements establish the credit limits granted by the financial institutions with whom the Company enters into master financial derivative agreements, which specify the margin implications in the case of potential negative changes in the market value of its open financial derivative positions. Pursuant to the agreements entered into by the Company, financial institutions are entitled to make margin calls if certain thresholds are exceeded. In the event of a change in the credit rating issued to the Company by a recognized credit rating agency, the credit limit granted by each counterparty would be modified.

As of the date hereof, the Company has never experienced a margin call with respect to its financial derivative transactions.

In compliance with its risk management objectives and hedging strategies, the Company generally utilizes the following financial derivative transactions:

1.            Cross-currency interest rate swaps (i.e., coupon swaps);

2.            Interest rate and inflation-indexed swaps;

3.            Cross-currency principal and interest rate swaps;

4.            Swaptions;

5.            Forward exchange rate contracts;

6.            FX options;

7.            Interest Rate Caps and Floors contracts;

8.            Fixed-price contracts for the acquisition of government securities (i.e., Treasury locks); and

9.            Credit Default Swaps.

The strategies for the acquisition of financial derivatives transactions are approved by the Risk Management Committee in accordance with the Policies and Objectives for the Use of Financial Derivatives.

During the quarter from October to December 2015, there were no defaults or margin calls under the aforementioned financial derivative transactions.

The Company monitors on a weekly basis the flows generated by the fair market value of and the potential for margin calls under its open financial derivative transactions. The calculation or valuation agent designated in the relevant Master Agreement, which is always the counterparty, issues monthly reports as to the fair market value of the Company's open positions.

The Risk Management area is responsible for measuring, at least once a month, the Company's exposure to the financial market risks associated with its financings and investments, and for submitting a report with respect to the Company's risk position and the valuation of its financial derivatives to the Finance Committee on a monthly basis, and to the Risk Management Committee on a quarterly basis. The Company monitors the credit rating assigned to its counterparties in its outstanding financial derivative transactions on a regular basis.

The office of the Comptroller is responsible for the validation of the Company's accounting records as related to its financial derivative transactions, based upon the confirmations received from the relevant financial intermediaries, and for obtaining from such intermediaries, on a monthly basis, confirmations or account statements supporting the market valuation of its open financial derivative positions.

As a part of the yearly audit on the Company, the aforementioned procedures are reviewed by the Company's external auditors. As of the date hereof, the Company's auditors have not raised any observation or identified any deficiency therein.

Information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.

The Company has a Risk Management Committee, which is responsible for monitoring the Company's risk management activities and approving the hedging strategies used to mitigate the financial market risks to which the Company is exposed. The assessment and hedging of the financial market risks are subject to the policies and procedures applicable to the Company's Risk Management Committee, the Finance and Risk Management areas and the Comptroller that form the Risk Management Manual of the Company. In general terms, the Risk Management Committee is comprised of members of the Corporate Management, Corporate Comptroller, Tax Control and Advice, Information to the Stock Exchange, Finance and Risk, Legal, Administration and Finance, Financial Planning and Corporate Finance areas.
 
ii.
General description of the valuation methods, indicating whether the instruments are valued at cost or at their fair value pursuant to the applicable accounting principles, the relevant reference valuation methods and techniques, and the events taken into consideration. Describe the policies for and frequency of the valuation, as well as the actions taken in light of the values obtained therefrom. Clarify whether the valuation is performed by an independent third party, and indicate if such third party is the structurer, seller or counterparty of the financial instrument. As with respect to financial derivative transactions for hedging purposes, explain the method used to determine the effectiveness thereof and indicate the level of coverage provided thereby.
 
The Company values its financial derivative instruments based upon the standard models and calculators provided by recognized market makers. In addition, the Company uses the relevant market variables available from online sources. The financial derivative instruments are valued at a reasonable value pursuant to the applicable accounting provisions.
 
In the majority of cases, the valuation at a reasonable value is carried out on a monthly basis based on valuations of the counterparties and the verification of such reasonable value with internal valuations prepared by the Risk Management area of the Company. Accounting wise, the valuation of the counterparty is registered.
 
The Company performs its valuations without the participation of any independent third party.
 
The method used by the Company to determine the effectiveness of an instrument depends on the hedging strategy and on whether the relevant transaction is intended as a fair-value hedge or a cash-flow hedge. The Company's methods take into consideration the prospective cash flows generated by or the changes in the fair value of the financial derivative, and the cash flows generated by or the changes in the fair value of the underlying position that it seeks to hedge to determine, in each case, the hedging ratio. As of the date hereof, the Company's management has not discussed internal and external sources of liquidity so as to satisfy its requirements in connection with its financial derivatives since, based upon the aggregate amount of the Company's financial derivative transactions, management is of the opinion that the Company's significant positions of cash, cash equivalents and temporary investments, and the substantial cash flows generated by the Company, would enable the Company to respond adequately to any such requirements. 
 
 
iii.
Management's discussion of the internal and external sources of liquidity that could be used to satisfy the Company's requirements in connection with its financial derivatives.
 
As of the date hereof, the Company's management has not discussed internal and external sources of liquidity so as to satisfy its requirements in connection with its financial derivatives since, based upon the aggregate amount of the Company's financial derivative transactions, management is of the opinion that the Company's significant positions of cash, cash equivalents and temporary investments, and the substantial cash flows generated by the Company, would enable the Company to respond adequately to any such requirements.
 
iv.
Explanation as to any change in the issuer's exposure to the principal risks identified thereby and in their management, and any contingency or event known to or anticipated by the issuer's management, which could affect any future report. Description of any circumstance or event, such as any change in the value of the underlying assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Issuer to assume new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the issuer's results or cash flows. Description and number of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.
 
Changes in the Company's exposure to the principal risks identified thereby and in their management, and contingencies or events known to or anticipated by the Company's management, which could affect any future report.
Since a significant portion of the Company's debt and costs are denominated in U.S. dollars, while its revenues are primarily denominated in Mexican pesos, depreciation in the value of the Mexican peso against the U.S. dollar and any future depreciation could have a negative effect on the Company's results due to exchange rate losses. However, the significant amount of U.S. dollars in the Company's treasury, and the hedging strategies adopted by the Company in recent years, have enabled it to avoid significant foreign exchange losses.

Circumstances or events, such as changes in the value of the underlying assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Company to assume new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the Company's results or cash flows.

As of the date hereof, no circumstance or event has given rise to a significant change in the structure of a financial derivative transaction, caused it to be used other than as originally intended, or resulted in a partial or total loss of the relevant hedge requiring that the Company assume new obligations, commitments or variations in its cash flow such that its liquidity is affected.

Description and number of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.
 
 
 
1.
During the relevant quarter, one "Knock-out Option Call" agreement through which Televisa hedged against severe Mexican Peso depreciation for a notional amount of U.S.$15,000,000.00 (Fifteen Million U.S. Dollars 00/100) by paying a premium, expired. This option was entered in December 2012 and expired in November 2015, without being exercised by Televisa.
 
Likewise there were no defaults or margin calls under financial derivative transactions.
v.
 Quantitative Information. Attached hereto as Table 1 is a summary of the financial derivative instruments purchased by Televisa and Televisión Internacional, S.A. de C.V., whose aggregate fair value represents or could represent one of the reference percentages set forth in
Section III (v) of the Official Communication.
 
IV. SENSITIVITY ANALYSIS

Considering that the Company has entered into financial derivative transactions for hedging purposes, and given the low amount of the financial derivative instruments that proved ineffective as a hedge, the Company has determined that such transactions are not material and, accordingly, the sensitivity analysis referred to in Section IV of the Official Communication is not applicable.

In those cases where the derivative instruments of the Company are for hedging purposes, for a material amount and where the effectiveness measures were sufficient, the measures are justified when the standard deviation of the changes in cash flow as a result of changes in the variables of exchange rate and interest rates of the derivative instruments used jointly with the underlying position is lower than the standard deviation of the changes in cash flow of the underlying position valued in pesos and the effective measures are defined by the correlation coefficient between both positions for the effective measures to be sufficient.

 
TABLE 1
GRUPO TELEVISA, S.A.B.
Summary of Financial Derivative Instruments as of
December 31, 2015
(In thousands of pesos/dollars)
 
Type of Derivative, Securities or Contract
Purpose (e.g., hedging, trading or other)
Notional Amount/Face Value
Value of the Underlying Asset / Reference Variable
Fair Value
  
Collateral/
Lines of Credit/
Securities Pledged
Current Quarter (3)
Previous Quarter (4)
Current Quarter D(H) (3)
Previous Quarter D(H) (4)
Maturing per Year
 
Interest Rate Swap (1)
Hedging
Ps. 2,500,000
TIIE 28 days / 7.4325%
TIIE 28 days / 7.4325%
(116,108)
(133,040)
Monthly interest
2016-2018
Does not exist (5)
Interest Rate Swap (1)
Hedging
Ps. 6,000,000
TIIE 28 days / 5.9351%
TIIE 28 days / 5.9351%
(99,567)
(110,591)
Monthly interest
2016-2021
Does not exist (5)
Interest Rate Swap (1)
Hedging
Ps. 1,000,000
TIIE 28 days / 5.9075%
TIIE 28 days / 5.9075%
(3,274)
(4,732)
Monthly interest
2016-2022
Does not exist (5)
FX Options (1)
Hedging
-
USD 0
USD 15,000
-
626
-
Does not exist (5)
Interest Rate Swap (2)
Hedging
Ps.1,985,847
TIIE 28 days   /  5.148%
TIIE 28 days   /  5.148%
(8,113)
(10,545)
Monthly Interest
2016-2022
Does not exist (5)
           (227,062)  (258,282)    
 
 

 
 
(1)
Acquired by Grupo Televisa, S.A.B.
  
 
(2)
Acquired by Televisión Internacional, S.A. de C.V.
  
 
(3)
The aggregate amount of the derivatives reflected in the consolidated statement of financial
position of Grupo Televisa, S.A.B. as December 31, 2015, included in the relevant SIFIC, is as follows:
       
   
21060020
FINANCIAL DERIVATIVE INSTRUMENTS
Ps.
  
(1,402)
  
   
22050010
FINANCIAL DERIVATIVE INSTRUMENTS
    
(225,660)
  
       
Ps.
  
(227,062)
  
               
 
(4)
Information for as of September 30 2015. 
 
(5)
Applies only to implicit financing in the ISDA ancillary agreements identified as "Credit Support Annex".
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA
QUARTER: 04
YEAR: 2015
GRUPO TELEVISA, S.A.B.
 
 
 
 
 
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 REPORT FOR THE FOURTH QUARTER OF 2015, 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 THAT HAS BEEN OMITTED OR UNTRUE IN THIS QUARTERLY REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY BE MISLEADING TO INVESTORS.
 


  
 

  /s/ EMILIO FERNANDO AZCÁRRAGA JEAN
  
  /s/ SALVI RAFAEL FOLCH VIADERO
EMILIO FERNANDO AZCÁRRAGA JEAN
PRESIDENT AND CHIEF EXECUTIVE OFFICER
  
SALVI RAFAEL FOLCH VIADERO
CHIEF FINANCIAL OFFICER


 


    /s/ JOAQUÍN BALCÁRCEL SANTA CRUZ   
JOAQUÍN BALCÁRCEL SANTA CRUZ
VICE PRESIDENT  -  LEGAL AND
GENERAL COUNSEL
 
 

 
MÉXICO, D.F., FEBRUARY 25, 2016
 
 
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.B.
 
(Registrant)
     
     
Dated: February 29, 2016
By:
/s/ Joaquín Balcárcel Santa Cruz
 
Name:
Joaquín Balcárcel Santa Cruz
 
Title:
General Counsel