GRUPO TELEVISA, S.A.

TLEVISA CPO
End-of-day quote. End-of-day quote  - 09/30
27.32MXN -0.07%

Grupo Televisa B : Description Report of Foreign Issuer

10/30/2019 | 05:57am

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 October, 2019

GRUPO TELEVISA, S.A.B.

(Translation of registrant's name into English)

Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico City, Mexico

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F Form 40-F

(Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).) Yes No

(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

Investor Relations

PRESS RELEASE

Televisa Reports Third Quarter 2019 Results

Consolidated

  • Consolidated Sales and Consolidated Operating Segment Income, excluding the non-recurring licensing of certain rights of the World Cup in Latin America in 2018, increased 7.3% and 10.8%, respectively.

Cable

  • Sales and Operating Segment Income grew 14.7%, both, reaching a margin of 42.4%.
  • Sales and Operating Segment Income in the MSO business grew 16.8% and 16.1%, respectively, adding 126 thousand Revenue Generating Units ("RGUs").
  • Excluding the Axtel acquisition last year, organic top line growth in the MSO business was 9.7%.

Sky

  • Sky added 19 thousand video RGUs. Broadband RGUs reached 319 thousand after the addition of 81 thousand RGUs.
  • Revenue and Operating Segment Income were negatively impacted by the difficult year-over-year comparison given the loss of video RGUs following the World Cup.

Content

  • Our new series "La Usurpadora" delivered the highest ratings during the 9:30 p.m. time slot in our flagship channel, since September 2017.
  • Content Sales and Operating Segment Income, excluding the non-recurring licensing of certain rights of the World Cup in Latin America in 2018, were relatively flat.
  • Excluding the effect of World Cup, core private sector advertising revenue was up by 5.1%.

Earnings Call Date and Time: Friday, October 25, 2019, at 9:00 A.M. ET.

Conference ID # is 3277076

From the U.S.: +1 (877) 850 2115

From Mexico: 01 800 926 9157

International callers: +1 (478) 219 0648

Rebroadcast: +1 (404) 537-3406

The teleconference will be rebroadcast starting at 12:00 ET on October 25 and will end at midnight on November 8.

Consolidated Results

Mexico City, October 24, 2019 - Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; "Televisa" or "the Company"), today announced results for third- quarter 2019. The results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

Last year, during third quarter, Content sales and operating segment income benefited by Ps.1,010.1 million and by Ps.593.3 million, respectively, from the non- recurring licensing of certain broadcast and digital rights of the World Cup in Latin America in 2018 (the "non-recurring licensing revenue").

The following table sets forth consolidated Net Sales and Operating Segment Income for the quarters ended September 30, 2019 and 2018, in millions of Mexican pesos excluding the non-recurring licensing revenue:

Excluding non-recurring licensing revenue for 3Q'18

3Q'19

Margin

3Q'18

Margin

Change

%

%

%

Net sales

25,786.1

100.0

24,023.1

100.0

7.3

Operating segment income1

10,764.4

39.6

9,714.8

38.4

10.8

1 The operating segment income margin is calculated as a percentage of segment net sales.

Net sales, excluding non-recurring licensing revenue, increased by 7.3% to Ps.25,786.1 million in third-quarter 2019 compared with Ps.24,023.1 million in third- quarter 2018. This increase was mainly attributable to revenue growth in the Cable segment. Operating segment income grew 10.8%, reaching Ps.10,764.4 million with a margin of 39.6%.

The following table sets forth condensed consolidated statements of income for the quarters ended September 30, 2019 and 2018, in millions of Mexican pesos. The table includes the abovementioned non-recurring licensing revenue and the results presented are not comparable year-over-year:

3Q'19

Margin

3Q'18

Margin

Change

%

%

%

Net sales

25,786.1

100.0

25,033.2

100.0

3.0

Net income

1,158.6

4.5

1,479.6

5.9

(21.7)

Net income attributable to stockholders of the Company

755.2

2.9

978.0

3.9

(22.8)

Segment net sales

27,202.5

100.0

26,283.8

100.0

3.5

Operating segment income (1)

10,764.4

39.6

10,308.1

39.2

4.4

  1. The operating segment income margin is calculated as a percentage of segment net sales.

Net income attributable to stockholders of the Company amounted to Ps.755.2 million in third-quarter 2019 compared with Ps.978.0 million in third-quarter 2018. The net decrease of Ps.222.8 million, or 22.8%, reflected (i) a Ps.380.9 million increase in finance expense, net; (ii) a Ps.283.5 million increase in depreciation and amortization; (iii) a Ps.166.7 million decrease in share of income of associates and joint ventures, net; and (iv) a Ps.27.3 million increase in income taxes. These unfavorable variances were partially offset by (i) a Ps.494.3 million increase in operating income before depreciation and amortization; (ii) a Ps.98.2 million decrease in net income attributable to non-controlling interests; and (iii) a Ps.43.1 million decrease in other expense, net.

Third-quarter Results by Business Segment

The following table presents third-quarter consolidated results ended September 30, 2019 and 2018, for each of our business segments. Consolidated results for third-quarter 2019 and 2018 are presented in millions of Mexican pesos.

Net Sales

3Q'19

%

3Q'18

%

Change

%

Cable

10,572.1

38.9

9,219.9

35.1

14.7

Sky

5,338.3

19.6

5,407.3

20.6

(1.3)

Content1

8,659.0

31.8

8,700.0

33.1

(0.5)

Other Businesses

2,633.1

9.7

1,946.5

7.4

35.3

Segment Net Sales1

27,202.5

100.0

25,273.7

96.2

7.6

Intersegment Operations2

(1,416.4)

(1,250.6)

Net Sales1

25,786.1

24,023.1

7.3

Non-recurring licensing revenue

n/a

1,010.1

3.8

n/a

Net Sales

25,786.1

25,033.2

3.0

Operating Segment Income3

3Q'19

Margin

3Q'18

Margin

Change

%

%

%

Cable

4,481.7

42.4

3,907.5

42.4

14.7

Sky

2,399.9

45.0

2,569.9

47.5

(6.6)

Content1

3,112.3

35.9

3,110.7

35.8

0.1

Other Businesses

770.5

29.3

126.7

6.5

508.1

Operating Segment Income1

10,764.4

39.6

9,714.8

38.4

10.8

Non-recurring licensing income

n/a

n/a

593.3

58.7

n/a

Operating Segment Income

10,764.4

39.6

10,308.1

39.2

4.4

Corporate Expenses

(436.3)

(1.6)

(496.0)

(1.9)

12.0

Depreciation and Amortization

(5,321.3)

(20.6)

(5,037.8)

(20.1)

(5.6)

Other (Expense) Income, net

(389.4)

(1.5)

(432.5)

(1.7)

10.0

Intersegment Operations4

(21.7)

(0.1)

n/a

n/a

n/a

Operating Income

4,595.7

17.8

4,341.8

17.3

5.8

  1. Excludes the non-recurring licensing revenue.
  2. For segment reporting purposes, intersegment operations are included in each of the segment operations.
  3. Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.
  4. As a result of IFRS 16 adoption, intersegment operations related to intercompany leases were not eliminated on the Operating Segment Income level as in prior years.

Cable

Third-quartersales increased by 14.7% to Ps.10,572.1 million compared with Ps.9,219.9 million in third-quarter 2018 driven by our pricing strategy and the increase in our load factor.

Total revenue generating units reached 12.5 million. Quarterly growth was mainly driven by 18.5 thousand broadband net additions and 149.1 thousand voice net additions. Video RGUs decreased by 42.0 thousand. Total net additions for the quarter were approximately 125.6 thousand.

The following table sets forth the breakdown of RGUs per service type for our Cable segment as of September 30, 2019 and 2018.

RGUs

3Q'19

3Q'18

Video

4,345,020

4,281,125

Broadband

4,658,764

4,168,248

Voice

3,534,461

2,519,972

Total RGUs

12,538,245

10,969,345

Third-quarteroperating segment income increased by 14.7% to Ps.4,481.7 million compared with Ps.3,907.5 million in third-quarter 2018. Margin stayed in line with same quarter last year.

The following tables set forth the breakdown of revenues and operating segment income, excluding consolidation adjustments, for our MSO and enterprise operations for third-quarter 2019 and 2018.

MSO Operations (1)

3Q'19

3Q'18

Change %

Millions of Mexican pesos

Revenue

9,603.8

8,220.9

16.8

Operating Segment Income

4,119.7

3,548.5

16.1

Margin (%)

42.9

43.2

Enterprise Operations (1)

3Q'19

3Q'18

Change %

Millions of Mexican pesos

Revenue

1,437.7

1,358.2

5.9

Operating Segment Income

504.0

492.3

2.4

Margin (%)

35.1

36.2

  1. These results do not include consolidation adjustments of Ps.469.4 million in revenues nor Ps.142.0 million in Operating Segment Income for third quarter 2019, neither the consolidation adjustments of Ps.359.2 million in revenues nor Ps.133.3 million in Operating Segment Income for third quarter 2018. Consolidation adjustments are considered in the consolidated results of the Cable segment.

Third-quarter operating segment income in our MSO operations increased by 16.1%, reaching a margin of 42.9%. Consolidated Sales and Consolidated Operating Segment Income in our Enterprise Operations increased by 5.9% and 2.4%, respectively.

Sky

Third-quartersales decreased by 1.3% to Ps.5,338.3 million compared with Ps.5,407.3 million in third-quarter 2018. This is mainly explained by a lower number video RGUs given the disconnections that followed Sky's transmission of the Soccer World Cup in 2018.

During the quarter, Sky continued growing in video RGUs adding 19.0 thousand, and also kept on growing its broadband business after adding 80.6 thousand broadband RGUs. It reached a total of 319.0 thousand broadband RGUs.

Sky ended the quarter with 7.7 million video and broadband RGUs, of which 166,173 were video RGUs in Central America and the Dominican Republic.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Grupo Televisa SAB published this content on 30 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2019 10:56:12 UTC

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