kr6k3qfinan_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 October, 2014
 
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: 03
YEAR: 2014
GRUPO TELEVISA, S.A.B.
 
 
 
STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
   Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
END OF PREVIOUS YEAR
AMOUNT
AMOUNT
    10000000
TOTAL ASSETS
207,524,807
194,108,920
    11000000
CURRENT ASSETS
66,893,428
53,207,745
11010000
CASH AND CASH EQUIVALENTS
26,673,883
16,692,033
11020000
SHORT-TERM INVESTMENTS
4,468,064
3,722,976
11020010
 
FINANCIAL INSTRUMENTS AVAILABLE FOR SALE
0
0
11020020
 
FINANCIAL INSTRUMENTS FOR NEGOTIATION
0
0
11020030
 
FINANCIAL INSTRUMENTS HELD TO MATURITY
4,468,064
3,722,976
11030000
CUSTOMER (NET)
12,541,822
20,734,137
11030010
 
CUSTOMER
15,454,144
23,226,673
11030020
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-2,912,322
-2,492,536
11040000
OTHER ACCOUNTS RECEIVABLE (NET)
3,002,687
3,759,512
11040010
 
OTHER ACCOUNTS RECEIVABLE
3,214,836
3,995,953
11040020
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-212,149
-236,441
11050000
INVENTORIES
2,623,805
1,718,366
11051000
BIOLOGICAL ASSETS CURRENT
0
0
11060000
OTHER CURRENT ASSETS
17,583,167
6,580,721
11060010
 
ADVANCE PAYMENTS
1,841,744
1,469,241
11060020
 
DERIVATIVE FINANCIAL INSTRUMENTS
2,538
3,447
11060030
 
ASSETS AVAILABLE FOR SALE
9,623,216
0
11060050
 
RIGHTS AND LICENSING
0
0
11060060
 
OTHER
6,115,669
5,108,033
    12000000
NON-CURRENT ASSETS
140,631,379
140,901,175
12010000
ACCOUNTS RECEIVABLE (NET)
8,000
0
12020000
INVESTMENTS
36,746,388
56,267,166
12020010
 
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
4,682,177
18,250,764
12020020
 
HELD-TO-MATURITY DEBT SECURITIES
510,459
631,964
12020030
 
OTHER AVAILABLE- FOR- SALE INVESTMENTS
31,518,788
37,359,819
12020040
 
OTHER
34,964
24,619
12030000
PROPERTY, PLANT AND EQUIPMENT (NET)
57,854,635
53,476,475
12030010
 
BUILDINGS
14,581,831
14,843,097
12030020
 
MACHINERY AND INDUSTRIAL EQUIPMENT
84,905,488
74,378,057
12030030
 
OTHER EQUIPMENT
8,583,977
8,073,547
12030040
 
ACCUMULATED DEPRECIATION
-58,075,600
-49,198,237
12030050
 
CONSTRUCTION IN PROGRESS
7,858,939
5,380,011
12040000
INVESTMENT PROPERTIES
0
0
12050000
NON-CURRENT BIOLOGICAL ASSETS
0
0
12060000
INTANGIBLE ASSETS (NET)
25,979,970
11,382,311
12060010
 
GOODWILL
5,815,270
2,621,530
12060020
 
TRADEMARKS
1,749,197
1,749,402
12060030
 
RIGHTS AND LICENSING
1,420,476
1,344,190
12060031
 
CONCESSIONS
3,655,985
3,655,985
12060040
 
OTHER
13,339,042
2,011,204
12070000
DEFERRED TAX ASSETS
11,159,651
10,608,778
12080000
OTHER NON-CURRENT ASSETS
8,882,735
9,166,445
12080001
 
ADVANCE PAYMENTS
0
0
12080010
 
DERIVATIVE FINANCIAL INSTRUMENTS
417
4,941
12080020
 
EMPLOYEE BENEFITS
0
0
12080021
 
ASSETS AVAILABLE FOR SALE
0
0
12080040
 
DEFERRED ASSETS (NET)
0
0
12080050
 
OTHER
8,882,318
9,161,504
    20000000
TOTAL LIABILITIES
122,668,305
115,529,487
    21000000
CURRENT LIABILITIES
31,314,950
40,283,067
21010000
BANK LOANS
335,748
312,715
21020000
STOCK MARKET LOANS
0
0
21030000
OTHER INTEREST BEARING LIABILITIES
418,806
424,698
21040000
SUPPLIERS
12,371,031
10,719,484
21050000
TAXES PAYABLE
1,201,663
1,692,415
21050010
 
INCOME TAXES PAYABLE
463,280
642,385
21050020
 
OTHER TAXES PAYABLE
738,383
1,050,030
21060000
OTHER CURRENT LIABILITIES
16,987,702
27,133,755
21060010
 
INTEREST PAYABLE
1,210,197
796,229
21060020
 
DERIVATIVE FINANCIAL INSTRUMENTS
0
0
21060030
 
DEFERRED INCOME
11,038,148
21,962,847
21060050
 
EMPLOYEE BENEFITS
1,078,699
857,903
21060060
 
PROVISIONS
226,920
174,678
21060061
 
LIABILITIES RELATED TO CURRENT AVAILABLE FOR SALE ASSETS
0
0
21060080
 
OTHER
3,433,738
3,342,098
    22000000
NON-CURRENT LIABILITIES
91,353,355
75,246,420
22010000
BANK LOANS
10,717,863
13,385,879
22020000
STOCK MARKET LOANS
65,986,904
46,357,221
22030000
OTHER INTEREST BEARING LIABILITIES
4,443,683
4,494,549
22040000
DEFERRED TAX LIABILITIES
0
0
22050000
OTHER NON-CURRENT LIABILITIES
10,204,905
11,008,771
22050010
 
DERIVATIVE FINANCIAL INSTRUMENTS
338,499
335,336
22050020
 
DEFERRED INCOME
897,596
474,011
22050040
 
EMPLOYEE BENEFITS
240,518
79,810
22050050
 
PROVISIONS
53,702
59,614
22050051
 
LIABILITIES RELATED TO NON-CURRENT AVAILABLE FOR SALE ASSETS
0
0
22050070
 
OTHER
8,674,590
10,060,000
    30000000
STOCKHOLDERS' EQUITY
84,856,502
78,579,433
30010000
CONTROLLING INTEREST
73,582,119
68,311,434
30030000
SOCIAL CAPITAL
4,978,126
4,978,126
30040000
SHARES REPURCHASED
-12,650,720
-12,848,448
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)
60,183,781
56,897,886
30080010
 
LEGAL RESERVE
2,139,007
2,139,007
30080020
 
OTHER RESERVES
0
0
30080030
 
RETAINED EARNINGS
58,845,619
51,097,340
30080040
 
NET INCOME FOR THE YEAR
2,882,651
7,748,279
30080050
 
OTHER
-3,683,496
-4,086,740
30090000
OTHER ACCUMULATED COMPREHENSIVE RESULTS (NET OF TAX)
5,181,113
3,394,051
30090010
 
EARNINGS PER PROPERTY REASSESSMENT
0
0
30090020
 
ACTUARIAL EARNINGS (LOSS) FOR LABOR OBLIGATIONS
58,418
58,418
30090030
 
RESULT FOR FOREIGN CURRENCY CONVERSION
61,511
49,629
30090040
 
CHANGES IN THE VALUATION OF AVAILABLE FOR SALE FINANCIAL ASSETS
2,257,310
1,163,122
30090050
 
CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS
-161,496
-140,944
30090060
 
CHANGES IN FAIR VALUE OF OTHER ASSETS
2,694,506
1,997,966
30090070
 
PARTICIPATION IN OTHER COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES
270,864
265,860
30090080
 
OTHER COMPREHENSIVE RESULT
0
0
30020000
NON-CONTROLLING INTEREST
11,274,383
10,267,999
 
 
 

 
 
DATA INFORMATION
AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
  Final Printing
REF
CONCEPTS
CURRENT YEAR
END OF PREVIOUS YEAR
AMOUNT
AMOUNT
91000010
FOREIGN CURRENCY LIABILITIES SHORT-TERM
6,533,906
6,772,104
91000020
FOREIGN CURRENCY LIABILITIES LONG-TERM
45,013,520
32,170,424
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
2,071,993
2,009,430
91000060
NUMBER OF EXECUTIVES (*)
72
72
91000070
NUMBER OF EMPLOYEES (*)
38,390
31,975
91000080
NUMBER OF WORKERS (*)
0
0
91000090
NUMBER OF OUTSTANDING SHARES (*)
338,373,267,960
335,501,022,792
91000100
NUMBER OF REPURCHASED SHARES (*)
24,056,619,171
26,928,864,339
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 NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
  Final Printing
 
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
40010000
NET INCOME
56,098,147
19,829,693
52,347,647
18,763,125
40010010
 
SERVICES
42,611,709
15,170,941
40,248,440
14,650,126
40010020
 
SALE OF GOODS
1,600,429
500,032
1,577,721
543,089
40010030
 
INTEREST
0
0
0
0
40010040
 
ROYALTIES
4,427,313
1,592,831
3,890,042
1,309,638
40010050
 
DIVIDENDS
0
0
0
0
40010060
 
LEASE
7,458,696
2,565,889
6,631,444
2,260,272
40010061
 
CONSTRUCTION
0
0
0
0
40010070
 
OTHER
0
0
0
0
40020000
COST OF SALES
30,245,578
10,357,163
28,115,183
9,697,179
40021000
GROSS PROFIT (LOSS)
25,852,569
9,472,530
24,232,464
9,065,946
40030000
GENERAL EXPENSES
12,683,043
4,367,281
10,974,077
3,890,549
40040000
INCOME (LOSS) BEFORE OTHER INCOME AND EXPENSES, NET
13,169,526
5,105,249
13,258,387
5,175,397
40050000
OTHER INCOME AND (EXPENSE), NET
-4,759,838
-4,546,637
160,826
-101,079
40060000
OPERATING INCOME (LOSS)
8,409,688
558,612
13,419,213
5,074,318
40070000
FINANCE INCOME
1,662,885
1,217,408
791,679
261,731
40070010
 
INTEREST INCOME
891,944
329,928
791,679
261,731
40070020
 
FOREIGN EXCHANGE GAIN, NET
0
0
0
0
40070030
 
DERIVATIVES GAIN, NET
0
116,539
0
0
40070040
 
EARNINGS FROM CHANGES IN FAIR VALUE OF FINANCIAL INSTRUMENTS
770,941
770,941
0
0
40070050
 
OTHER
0
0
0
0
40080000
FINANCE EXPENSE
4,455,069
1,654,635
3,965,693
1,423,780
40080010
 
INTEREST EXPENSE
4,056,896
1,421,427
3,503,812
1,233,961
40080020
 
FOREIGN EXCHANGE LOSS, NET
365,988
233,208
304,321
121,396
40080030
 
DERIVATIVES LOSS, NET
32,185
0
157,560
68,423
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
-2,792,184
-437,227
-3,174,014
-1,162,049
40100000
PARTICIPATION IN THE RESULTS OF ASSOCIATES AND JOINT VENTURES
47,539
116,387
-923,189
-199,814
40110000
INCOME (LOSS) BEFORE INCOME TAXES
5,665,043
237,772
9,322,010
3,712,455
40120000
INCOME TAXES
1,666,888
65,843
2,945,454
1,080,887
40120010
 
INCOME TAX, CURRENT
3,114,930
1,248,470
4,431,171
1,091,863
40120020
 
INCOME TAX, DEFERRED
-1,448,042
-1,182,627
-1,485,717
-10,976
40130000
INCOME (LOSS) FROM CONTINUING OPERATIONS
3,998,155
171,929
6,376,556
2,631,568
40140000
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,   NET
0
0
0
0
40150000
NET INCOME (LOSS)
3,998,155
171,929
6,376,556
2,631,568
40160000
NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
1,115,504
354,730
1,092,107
242,316
40170000
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
2,882,651
-182,801
5,284,449
2,389,252
             
40180000
NET INCOME (LOSS) PER BASIC SHARE
1.00    
-0.06    
1.85    
0.84    
40190000
NET INCOME (LOSS) PER DILUTED SHARE
0.93    
-0.06    
1.71    
0.77    
 
 
 

 
 
STATEMENTS OF COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME (NET OF INCOME TAXES)
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
40200000
NET INCOME (LOSS) 
3,998,155
171,929
6,376,556
2,631,568
 
ITEMS NOT TO BE RECLASSIFIED INTO RESULTS 
       
40210000
EARNINGS PER PROPERTY REASSESSMENT 
0
0
0
0
40220000
ACTUARIAL EARNINGS (LOSS) FOR LABOR OBLIGATIONS  
0
0
0
0
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 
1,036
29,741
87,050
53,034
40240000
CHANGES IN THE VALUATION OF AVAILABLE FOR SALE FINANCIAL ASSETS
1,094,188
500,578
433,726
-151,525
40250000
CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS
-20,552
74,214
-2,704
-26,289
40260000
CHANGES IN FAIR VALUE OF OTHER ASSETS 
696,540
647,646
-218,620
9,665
40270000
PARTICIPATION IN OTHER COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES
5,004
7,721
110,726
75,599
40280000
OTHER COMPREHENSIVE INCOME
0
0
0
0
40290000
TOTAL OTHER COMPREHENSIVE INCOME
1,776,216
1,259,900
410,178
-39,516
 
  
       
40300000
COMPREHENSIVE INCOME (LOSS) 
5,774,371
1,431,829
6,786,734
2,592,052
40320000
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
1,104,658
347,899
1,094,878
247,587
40310000
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
4,669,713
1,083,930
5,691,856
2,344,465
 
 
 

 
 
STATEMENTS OF COMPREHENSIVE INCOME
DATA INFORMATION
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
  Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
CUMULATIVE
QUARTER
CUMULATIVE
QUARTER
92000010
OPERATING DEPRECIATION AND AMORTIZATION
8,181,297
2,848,974
7,278,088
2,490,282
 
 
 

 
 
 
STATEMENTS OF COMPREHENSIVE INCOME
DATA INFORMATION (TWELVE MONTHS)
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
  Final Printing
REF
ACCOUNT / SUBACCOUNT
YEAR
CURRENT
PREVIOUS
92000030
NET INCOME (**)
77,541,211
72,140,103
92000040
OPERATING INCOME (LOSS) (**)
13,728,810
18,742,843
92000050
CONTROLLING INTEREST NET INCOME (LOSS) (**)
7,855,726
9,481,710
92000060
NET INCOME (LOSS) (**)
5,346,481
8,282,526
92000070
OPERATING DEPRECIATION AND AMORTIZATION (**)
10,749,575
9,577,702
 
(**) INFORMATION FOR THE LAST TWELVE MONTHS
 
 
 

 
 
 
STATEMENTS OF CASH FLOWS (INDIRECT METHOD)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
(THOUSANDS OF MEXICAN PESOS)
 
CONSOLIDATED
  Final Printing
REF
ACCOUNT / SUBACCOUNT
CURRENT YEAR
PREVIOUS YEAR
AMOUNT
AMOUNT
OPERATING ACTIVITIES
50010000
INCOME (LOSS) BEFORE INCOME TAXES
5,665,043
9,322,010
50020000
 + (-) ITEMS NOT REQUIRING CASH
897,156
723,191
50020010
 
 + ESTIMATES FOR THE PERIOD
795,241
623,999
50020020
 
 + PROVISIONS FOR THE PERIOD
0
0
50020030
 
 + (-) OTHER UNREALIZED ITEMS
101,915
99,192
50030000
 + (-) ITEMS RELATED TO INVESTING ACTIVITIES
11,900,620
8,014,526
50030010
 
 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD
8,181,297
7,278,088
50030020
 
 (-) + GAIN OR LOSS ON SALE OF PROPERTY, PLANT AND EQUIPMENT
304,994
161,588
50030030
 
 + (-) LOSS (REVERSION) IMPAIRMENT
0
0
50030040
 
 (-) + EQUITY IN RESULTS OF AFFILIATES AND JOINT VENTURES
(47,539)
923,189
50030050
 
 (-) DIVIDENDS RECEIVED
0
0
50030060
 
 (-) INTEREST INCOME
(255,629)
(30,825)
50030070
 
 (-) FOREIGN EXCHANGE FLUCTUATION
(612,265)
(468,762)
50030080
 
 (-) + OTHER ITEMS
4,329,762
151,248
50040000
 + (-) ITEMS RELATED TO FINANCING ACTIVITIES
5,428,758
4,749,028
50040010
 
 (+) ACCRUED INTEREST
4,056,896
3,503,812
50040020
 
 (+) FOREIGN EXCHANGE FLUCTUATION
1,258,396
650,211
50040030
 
 (+) FINANCIAL OPERATIONS OF DERIVATIVES
(738,756)
157,560
50040040
 
 + (-) OTHER ITEMS
852,222
437,445
50050000
CASH FLOW BEFORE INCOME TAX
23,891,577
22,808,755
50060000
CASH FLOWS PROVIDED OR USED IN OPERATION
(7,601,960)
(10,534,151)
50060010
 
 + (-) DECREASE (INCREASE) IN CUSTOMERS
7,560,554
7,652,870
50060020
 
 + (-) DECREASE (INCREASE) IN INVENTORIES
(1,000,740)
(3,417,809)
50060030
 
 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLES AND OTHER ASSETS
(1,317,493)
(2,440,346)
50060040
 
 + (-) INCREASE (DECREASE) IN SUPPLIERS
1,370,046
221,067
50060050
 
 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES
(11,686,897)
(8,252,067)
50060060
 
 + (-) INCOME TAXES PAID OR RETURNED
(2,527,430)
(4,297,866)
50070000
NET CASH FLOWS FROM OPERATING ACTIVITIES
16,289,617
12,274,604
INVESTING ACTIVITIES
50080000
NET CASH FLOWS FROM INVESTING ACTIVITIES
(15,804,526)
(17,978,269)
50080010
 
 (-) PERMANENT INVESTMENTS IN SHARES
(9,361)
(1,352,968)
50080020
 
 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES
0
0
50080030
 
 (-) INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT
(9,990,264)
(8,627,115)
50080040
 
 + SALE OF PROPERTY, PLANT AND EQUIPMENT
415,013
82,193
50080050
 
 (-) TEMPORARY INVESTMENTS
(1,058,282)
(420,060)
50080060
 
 + DISPOSITION OF TEMPORARY INVESTMENTS
434,700
2,278,985
50080070
 
 (-) INVESTMENT IN INTANGIBLE ASSETS
(151,146)
(446,419)
50080080
 
 + DISPOSITION OF INTANGIBLE ASSETS
0
0
50080090
 
 (-) BUSINESS ACQUISITIONS
0
0
50080100
 
 + BUSINESS DISPOSITIONS
0
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
(5,445,186)
(9,492,885)
FINANCING ACTIVITIES
50090000
NET CASH FLOWS FROM FINANCING ACTIVITIES
9,500,297   
1,809,551   
50090010
 
 + BANK FINANCING
2,079,933
342,984
50090020
 
 + STOCK MARKET FINANCING
18,394,625
6,442,598
50090030
 
 + OTHER FINANCING
0
0
50090040
 
 (-) BANK FINANCING AMORTIZATION
(6,752,103)
(157,410)
50090050
 
 (-) STOCK MARKET FINANCING AMORTIZATION
0
0
50090060
 
 (-) OTHER FINANCING AMORTIZATION
(346,250)
(291,968)
50090070
 
 + (-) INCREASE (DECREASE) IN CAPITAL STOCK
0
0
50090080
 
 (-) DIVIDENDS PAID
0
(1,084,192)
50090090
 
 + PREMIUM ON ISSUANCE OF SHARES
0
0
50090100
 
 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
0
0
50090110
 
 (-) INTEREST EXPENSE
(3,585,362)
(3,232,136)
50090120
 
 (-) REPURCHASE OF SHARES
0
0
50090130
 
 +  (-) OTHER ITEMS
(290,546)
(210,325)
         
50100000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
9,985,388
(3,894,114)
50110000
CHANGES IN THE VALUE OF CASH AND CASH EQUIVALENTS
(3,538)
26,671
50120000
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
16,692,033
19,063,325
50130000
CASH AND CASH EQUIVALENTS AT END OF PERIOD
26,673,883
15,195,882
 
 
 

 
 
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, 2013
4,978,126
-13,103,223
15,889,819
0
0
2,139,007
48,934,392
1,805,884
60,644,005
7,890,598
68,534,603
                       
RETROSPECTIVE ADJUSTMENT
0
0
0
0
0
0
-101,814
0
-101,814
-1,088
-102,902
                       
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
-107,138
-1,191,330
                       
(DECREASE) INCREASE OF CAPITAL
0
0
0
0
0
0
0
0
0
0
0
                       
REPURCHASE OF SHARES
0
-843,989
0
0
0
0
0
0
-843,989
0
-843,989
                       
(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
1,319,824
0
0
0
0
-38,390
0
1,281,434
-3,924
1,277,510
                       
COMPREHENSIVE INCOME
0
0
0
0
0
0
5,284,449
407,407
5,691,856
1,094,878
6,786,734
                       
BALANCE AT SEPTEMBER 30, 2013
4,978,126
-12,627,388
15,889,819
0
0
2,139,007
52,994,445
2,213,291
65,587,300
8,873,326
74,460,626
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
-98,224
-98,224
                       
(DECREASE) INCREASE OF CAPITAL
0
0
0
0
0
0
0
0
0
0
0
                       
REPURCHASE OF SHARES
0
-1,050,277
0
0
0
0
0
0
-1,050,277
0
-1,050,277
                       
(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
1,248,005
0
0
0
0
403,244
0
1,651,249
-50
1,651,199
                       
COMPREHENSIVE INCOME
0
0
0
0
0
0
2,882,651
1,787,062
4,669,713
1,104,658
5,774,371
                       
BALANCE AT SEPTEMBER 30, 2014
4,978,126
-12,650,720
15,889,819
0
0
2,139,007
58,044,774
5,181,113
73,582,119
11,274,383
84,856,502
 
 
 

 
 
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 03 YEAR: 2014
GRUPO TELEVISA, S.A.B.
 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
CONSOLIDATED
Final Printing
 
MEXICO CITY, D.F., OCTOBER 23, 2014—GRUPO TELEVISA, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; “TELEVISA” OR “THE COMPANY”), TODAY ANNOUNCED RESULTS FOR THIRD-QUARTER 2014. 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 QUARTERS ENDED SEPTEMBER 30, 2014 AND 2013, IN MILLIONS OF MEXICAN PESOS, AS WELL AS THE PERCENTAGE THAT EACH LINE REPRESENTS OF NET SALES AND THE PERCENTAGE CHANGE WHEN COMPARING 2014 WITH 2013:

NET SALES

NET SALES INCREASED BY 5.7% TO PS.19,829.7 MILLION IN THIRD-QUARTER 2014 COMPARED WITH PS.18,763.1 MILLION IN THIRD-QUARTER 2013. THIS INCREASE WAS ATTRIBUTABLE TO STRONG GROWTH IN OUR SKY AND TELECOMMUNICATIONS BUSINESSES. OPERATING SEGMENT INCOME INCREASED 4.4%, REACHING PS.8,312.1 MILLION WITH A MARGIN OF 41.1% IN THIRD-QUARTER 2014 COMPARED WITH PS.7,960.9 MILLION WITH A MARGIN OF 41.6% IN THIRD-QUARTER 2013.

NET (LOSS) INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY

NET INCOME OR LOSS ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY AMOUNTED TO A NET LOSS OF PS.182.8 MILLION IN THIRD-QUARTER 2014 COMPARED WITH A NET INCOME OF PS.2,389.3 MILLION IN THIRD-QUARTER 2013. THE NET CHANGE OF PS.2,572.1 MILLION REFLECTED (I) A PS.4,445.5 MILLION INCREASE IN OTHER EXPENSE, NET, AS A RESULT MAINLY OF A ONE-TIME NON-CASH LOSS FROM THE AGREEMENT TO SELL OUR 50% INVESTMENT IN GSF TELECOM HOLDINGS, S.A.P.I. DE C.V. (“GSF”), THE PARENT COMPANY OF IUSACELL; (II) A PS.112.4 MILLION INCREASE IN NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS; AND (III) A PS.70.2 MILLION DECREASE IN INCOME BEFORE OTHER EXPENSE, NET. THESE UNFAVORABLE VARIANCES WERE OFFSET BY (I) A PS.1,015.0 MILLION DECREASE IN INCOME TAXES; (II) A PS.724.8 MILLION DECREASE IN FINANCE EXPENSE, NET; AND (III) A PS.316.2 MILLION FAVORABLE CHANGE IN SHARE OF INCOME OR LOSS OF JOINT VENTURES AND ASSOCIATES, NET.

THIRD-QUARTER RESULTS BY BUSINESS SEGMENT

THE FOLLOWING INFORMATION PRESENTS THIRD-QUARTER CONSOLIDATED RESULTS ENDED SEPTEMBER 30, 2014 AND 2013, FOR EACH OF OUR BUSINESS SEGMENTS. CONSOLIDATED RESULTS FOR THE THIRD-QUARTER 2014 AND 2013 ARE PRESENTED IN MILLIONS OF MEXICAN PESOS:

CONTENT

THIRD-QUARTER SALES DECREASED BY 3.4% TO PS.8,491.8 MILLION COMPARED WITH PS.8,794.0 MILLION IN THIRD-QUARTER 2013.

ADVERTISING

ADVERTISING REVENUE DECREASED BY 6.4% TO PS.6,015.4 MILLION COMPARED WITH PS.6,426.7 MILLION IN THIRD-QUARTER 2013. THESE RESULTS REFLECT  LOWER ADVERTISING REVENUES FROM OUR NATIONAL FREE TO AIR NETWORKS EXPLAINED PARTIALLY BY THE NEW REGULATION THAT RESTRICTS TELEVISION ADVERTISING DURING CERTAIN TIME SLOTS FOR HIGH-CALORIC FOODS AND BEVERAGES. IN ADDITION, OUR FREE TO AIR ADVERTISING REVENUES WERE AFFECTED BY THE SHIFT OF SOME ADVERTISING BUDGETS FROM THE THIRD-QUARTER TO THE SECOND QUARTER, WHEN THE MAJORITY OF THE MATCHES OF THE 2014 WORLD CUP TOOK PLACE, AND BY A WEAK ECONOMIC ENVIRONMENT. ADVERTISING IN PAY-TV NETWORKS INCREASED BY 18.1% AND REPRESENTED 5.8% OF OUR ADVERTISING REVENUES.

NETWORK SUBSCRIPTION REVENUE

THIRD-QUARTER NETWORK SUBSCRIPTION REVENUE DECREASED BY 17.6% TO PS.718.5 MILLION COMPARED WITH PS.872.3 MILLION IN THIRD-QUARTER 2013. THESE RESULTS REFLECT FORGONE REVENUE AS A RESULT OF COMPLIANCE WITH THE MUST-OFFER RULING THAT CAME INTO EFFECT WITH THE CONSTITUTIONAL REFORM IN MATTERS OF TELECOMMUNICATIONS. THE MUST-OFFER RULING REQUIRES US TO ALLOW THE RETRANSMISSION FREE OF CHARGE AND ON A NON-DISCRIMINATORY BASIS OF FREE-TO-AIR TELEVISION SIGNALS TO PAY-TV LICENSEES THAT OPERATE IN THE SAME AREA OF GEOGRAPHIC COVERAGE, SUBJECT TO CERTAIN CONDITIONS BEING MET.

LICENSING AND SYNDICATION

LICENSING AND SYNDICATION REVENUE INCREASED BY 17.6% TO PS.1,757.9 MILLION COMPARED WITH PS.1,495.0 MILLION IN THIRD-QUARTER 2013. THE GROWTH IS EXPLAINED MAINLY BY AN INCREASE OF 22.4% IN ROYALTIES FROM UNIVISION, FROM US$71.4 MILLION IN THIRD-QUARTER 2013 TO US$87.4 MILLION IN THIRD-QUARTER 2014. SALES TO LATIN AMERICA AND THE REST OF THE WORLD EXPERIENCED SOLID GROWTH. THESE POSITIVE EFFECTS WERE PARTIALLY COMPENSATED BY LOWER REVENUES FROM OUR COPRODUCTIONS OVERSEAS.

THIRD-QUARTER OPERATING SEGMENT INCOME DECREASED BY 8.5% TO PS.4,042.0 MILLION COMPARED WITH PS.4,415.1 MILLION IN THIRD-QUARTER 2013; THE MARGIN WAS 47.6%. THE DROP IN THE MARGIN OF 260 BASIS POINTS FROM SAME QUARTER LAST YEAR IS MAINLY EXPLAINED BY THE DROP ON FREE TO AIR ADVERTISING REVENUES, THE IMPLEMENTATION OF THE MUST-OFFER RULING, AND THE EXPENSES RELATED TO THE BROADCASTING OF THE 2014 WORLD CUP. THIS EFFECT WAS PARTIALLY COMPENSATED BY LOWER PRODUCTION EXPENSES.

SKY

THIRD-QUARTER SALES GREW BY 9.5% TO PS.4,476.8 MILLION COMPARED WITH PS.4,089.8 MILLION IN THIRD-QUARTER 2013. THE INCREASE WAS DRIVEN BY SOLID GROWTH IN THE SUBSCRIBER BASE IN MEXICO, WHICH IS EXPLAINED BY THE CONTINUED SUCCESS OF SKY’S LOW-COST OFFERINGS AND THE ATTRACTIVENESS OF SKY’S TRADITIONAL PAY-TV PACKAGES. THE NUMBER OF NET ACTIVE SUBSCRIBERS INCREASED BY 160,183 DURING THE QUARTER TO 6,517,735 AS OF SEPTEMBER 30, 2014, OF WHICH 194,646 ARE IN CENTRAL AMERICA AND THE DOMINICAN REPUBLIC, COMPARED WITH 5,878,925 AS OF SEPTEMBER 30, 2013.

THIRD-QUARTER OPERATING SEGMENT INCOME INCREASED BY 12.2% TO PS.2,136.9 MILLION COMPARED WITH PS.1,903.7 MILLION IN THIRD-QUARTER 2013, AND THE MARGIN WAS 47.7%, AN INCREASE OF 120 BASIS POINTS FROM SAME QUARTER LAST YEAR. SKY BENEFITED FROM HIGHER REVENUES AND LOWER PROGRAMMING COSTS RESULTING FROM THE MUST-OFFER RULING, WHICH WERE PARTIALLY COMPENSATED BY HIGHER PROGRAMMING EXPENSES RELATED MAINLY TO THE TRANSMISSION OF CERTAIN MATCHES OF THE 2014 WORLD CUP.
 
TELECOMMUNICATIONS

THIRD-QUARTER SALES INCREASED BY 21.3% TO PS.5,305.1 MILLION COMPARED WITH PS.4,374.5 MILLION IN THIRD-QUARTER 2013. THIS INCREASE INCLUDES THE CONSOLIDATION, STARTING SEPTEMBER 1ST, OF PS.329.7 MILLION OF REVENUES FROM CABLECOM. REVENUES FROM OUR THREE CABLE OPERATIONS CABLEVISIÓN, CABLEMÁS AND TVI, AND BESTEL EXPERIENCED SOLID GROWTH. INCLUDING THE ACQUISITION OF CABLECOM, VOICE AND DATA REVENUE GENERATING UNITS, OR RGUS, GREW 31.7% AND 38.2% COMPARED WITH THIRD-QUARTER 2013, RESPECTIVELY, WHILE VIDEO RGUS EXPANDED BY 36.8%.

YEAR-OVER-YEAR, CABLEVISIÓN, CABLEMÁS, TVI, AND BESTEL NET SALES INCREASED 14.3%, 9.7%, 19.9%, AND 15.0% RESPECTIVELY.

THE FOLLOWING INFORMATION SETS FORTH THE BREAKDOWN OF RGUS FOR EACH OF OUR FOUR CABLE SUBSIDIARIES AS OF SEPTEMBER 30, 2014:

THE SUBSCRIBER BASE OF CABLEVISIÓN OF VIDEO, BROADBAND AND VOICE AS OF SEPTEMBER 30, 2014 AMOUNTED TO 883,164, 739,065 AND 438,507 SUBSCRIBERS, RESPECTIVELY.

THE SUBSCRIBER BASE OF CABLEMÁS OF VIDEO, BROADBAND AND VOICE AS OF SEPTEMBER 30, 2014 AMOUNTED TO 1,204,486, 812,555 AND 403,066 SUBSCRIBERS, RESPECTIVELY.

THE SUBSCRIBER BASE OF TVI OF VIDEO, BROADBAND AND VOICE AS OF SEPTEMBER 30, 2014 AMOUNTED TO 478,786, 361,103 AND 172,868 SUBSCRIBERS, RESPECTIVELY.

THE SUBSCRIBER BASE OF CABLECOM OF VIDEO, BROADBAND AND VOICE AS OF SEPTEMBER 30, 2014 AMOUNTED TO 803,850, 252,918 AND 133,456 SUBSCRIBERS, RESPECTIVELY.

THE RGUS OF CABLEVISIÓN, CABLEMÁS , TVI AND CABLECOM AS OF SEPTEMBER 30, 2014 AMOUNTED TO 2,060,736, 2,420,107, 1,012,757 AND 1,190,224, RESPECTIVELY.

THIRD-QUARTER OPERATING SEGMENT INCOME INCREASED BY 34.0% TO PS.1,981.6 MILLION COMPARED WITH PS.1,479.1 MILLION IN THIRD-QUARTER 2013, AND THE MARGIN REACHED 37.4%, AN INCREASE OF 360 BASIS POINTS FROM SAME QUARTER LAST YEAR. THESE RESULTS INCLUDE THE CONSOLIDATION OF CABLECOM, WHICH CONTRIBUTED PS.157.3 MILLION TO OPERATING SEGMENT INCOME, AND THE BENEFIT FROM LOWER PROGRAMMING COSTS AS A RESULT OF THE MUST-OFFER RULING, WHICH WERE PARTIALLY OFFSET BY HIGHER PERSONNEL, MAINTENANCE, AND MARKETING COSTS AND EXPENSES.

THE FOLLOWING INFORMATION SETS FORTH THE BREAKDOWN OF REVENUES AND OPERATING SEGMENT INCOME, EXCLUDING CONSOLIDATION ADJUSTMENTS, FOR OUR TELECOMMUNICATIONS SUBSIDIARIES FOR THE QUARTER. IN THE CASE OF CABLECOM ONLY THE MONTH OF SEPTEMBER IS INCLUDED:

THE REVENUES FOR THE QUARTER OF CABLEVISIÓN, CABLEMÁS, TVI, CABLECOM AND BESTEL AMOUNTED TO PS.1,613.1 MILLION, PS.1,720.9 MILLION, PS.819.4 MILLION, PS.329.7 MILLION AND PS.943.1 MILLION, RESPECTIVELY.

THE OPERATING SEGMENT INCOME FOR THE QUARTER OF CABLEVISIÓN, CABLEMÁS, TVI, CABLECOM  AND BESTEL AMOUNTED TO PS.664.3 MILLION, PS.630.8 MILLION, PS.323.3 MILLION, PS.157.3 MILLION AND PS.332.3 MILLION, RESPECTIVELY.

THESE RESULTS DO NOT INCLUDE CONSOLIDATION ADJUSTMENTS OF PS.121.1 MILLION IN REVENUES OR PS.126.4 MILLION IN OPERATING SEGMENT INCOME, WHICH ARE CONSIDERED IN THE CONSOLIDATED RESULTS OF TELECOMMUNICATIONS.

OTHER BUSINESSES

THIRD-QUARTER SALES INCREASED BY 3.5% TO PS.1,936.6 MILLION COMPARED WITH PS.1,870.8 MILLION IN THIRD-QUARTER 2013. THIS INCREASE IS EXPLAINED MAINLY BY I) AN INCREASE IN THE REVENUES OF OUR SOCCER BUSINESS; II) AN INCREASE IN THE REVENUES OF OUR GAMING BUSINESS, AS A RESULT OF AN INCREASE IN THE REVENUES FROM OUR ELECTRONIC GAMING MACHINES; III) AN INCREASE IN THE REVENUES OF OUR FEATURE-FILM DISTRIBUTION BUSINESS IN MEXICO AND THE UNITED STATES, DUE IN PART TO THE DISTRIBUTION OF THE FILM “MÁS NEGRO QUE LA NOCHE”; AND IV) AN INCREASE IN THE REVENUES OF OUR RADIO BUSINESS DUE TO HIGHER ADVERTISING SALES. THIS EFFECT WAS PARTIALLY COMPENSATED BY A DECREASE IN THE REVENUES OF OUR PUBLISHING BUSINESS.

THIRD-QUARTER OPERATING SEGMENT INCOME DECREASED BY 7.0% TO PS.151.6 MILLION COMPARED WITH PS.163.0 MILLION IN THIRD-QUARTER 2013, AND THE MARGIN REACHED 7.8%. THESE RESULTS REFLECT LOWER REVENUES FROM OUR PUBLISHING BUSINESS AS WELL AS HIGHER MARKETING COSTS AND EXPENSES IN OUR FEATURE-FILM DISTRIBUTION BUSINESS. THESE EFFECTS WERE PARTIALLY COMPENSATED BY THE INCREASE IN THE PROFITABILITY OF OUR SOCCER AND GAMING BUSINESSES.

INTERSEGMENT OPERATIONS

INTERSEGMENT OPERATIONS FOR THE THIRD-QUARTER 2014 AND 2013 AMOUNTED TO PS.380.6 MILLION AND PS.366.0 MILLION, RESPECTIVELY.

CORPORATE EXPENSES

CORPORATE EXPENSE INCREASED BY PS.62.7 MILLION, OR 21.2%, TO PS.357.9 MILLION IN THIRD-QUARTER 2014, FROM PS.295.2 MILLION IN THIRD-QUARTER 2013. THE INCREASE REFLECTED PRIMARILY A HIGHER SHARE-BASED COMPENSATION EXPENSE.

SHARE-BASED COMPENSATION EXPENSE IN THIRD-QUARTER 2014 AND 2013 AMOUNTED TO PS.224.4 MILLION AND PS.164.7 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.59.7 MILLION REFLECTED PRIMARILY A HIGHER NUMBER OF OUR CPOS CONDITIONALLY SOLD TO OFFICERS AND EMPLOYEES INVOLVED IN OUR TELECOMMUNICATIONS SEGMENT, AS WELL AS THE INCREASE IN THE MARKET PRICE OF OUR CPO FROM LAST YEAR.
 
OTHER EXPENSE, NET

OTHER EXPENSE, NET, INCREASED BY PS.4,445.5 MILLION TO PS.4,546.6 MILLION IN THIRD- QUARTER 2014, FROM PS.101.1 MILLION IN THIRD-QUARTER 2013. THIS INCREASE REFLECTED PRIMARILY A ONE-TIME NON-CASH LOSS  FROM THE AGREEMENT TO SELL OUR INVESTMENT IN GSF, OUR 50% JOINT VENTURE IN THE IUSACELL TELECOM BUSINESS, IN CONNECTION WITH A TRANSACTION AGREEMENT WITH OUR PARTNER IN GSF IN SEPTEMBER 2014, AS DISCUSSED BELOW.

OTHER EXPENSE, NET, ALSO INCLUDED FINANCIAL ADVISORY AND PROFESSIONAL SERVICES, DONATIONS AND LOSS ON DISPOSITION OF PROPERTY AND EQUIPMENT FOR THE THIRD-QUARTER 2014.

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 QUARTERS ENDED SEPTEMBER 30, 2014 AND 2013:

FINANCE EXPENSE, NET, DECREASED BY PS.724.8 MILLION, OR 62.4%, TO PS.437.2 MILLION IN THIRD-QUARTER 2014 FROM PS.1,162.0 MILLION IN THIRD-QUARTER 2013. THIS DECREASE RESULTED PRIMARILY FROM (I) A INCREASE OF PS.955.9 MILLION IN OTHER FINANCE INCOME, NET, TO PS.887.4 MILLION IN THIRD-QUARTER 2014 COMPARED WITH PS.68.5 MILLION IN OTHER FINANCE EXPENSE, NET IN THIRD-QUARTER 2013, DUE TO A FAVORABLE CHANGE IN FAIR VALUE OF THE EMBEDDED DERIVATE RELATED TO OUR OPTION TO CONVERT OUR INVESTMENT IN DEBENTURES ISSUED BY BROADCASTING MEDIA PARTNERS (“BMP”), THE CONTROLLING COMPANY OF UNIVISION, INTO AN EQUITY STAKE OF BMP; AND (II) A PS.68.2 MILLION INCREASE IN INTEREST INCOME TO PS.330.0 MILLION IN THIRD-QUARTER 2014 COMPARED WITH PS.261.8 MILLION IN THIRD-QUARTER 2013, EXPLAINED PRIMARILY BY A HIGHER AVERAGE AMOUNT OF CASH EQUIVALENTS AND TEMPORARY INVESTMENTS IN THIRD-QUARTER 2014. THESE FAVORABLE VARIANCES WERE PARTIALLY OFFSET BY (I) A PS.187.5 MILLION INCREASE IN INTEREST EXPENSE TO PS.1,421.4 MILLION IN THIRD-QUARTER 2014 COMPARED WITH PS.1,233.9 MILLION IN THIRD-QUARTER 2013, DUE PRIMARILY TO A HIGHER AVERAGE PRINCIPAL AMOUNT OF DEBT AND FINANCE LEASE OBLIGATIONS IN THIRD-QUARTER 2014; AND (II) A PS.111.8 MILLION INCREASE IN FOREIGN EXCHANGE LOSS TO PS.233.2 MILLION IN THIRD-QUARTER 2014 COMPARED WITH PS.121.4 MILLION IN THIRD-QUARTER 2013, RESULTING PRIMARILY FROM THE EFFECT OF A 3.2% DEPRECIATION OF THE MEXICAN PESO AGAINST THE U.S. DOLLAR ON OUR AVERAGE NET UNHEDGED U.S. DOLLAR LIABILITY POSITION IN THIRD-QUARTER 2014 COMPARED WITH A 0.9% DEPRECIATION AND A LOWER U.S. DOLLAR LIABILITY POSITION IN THIRD-QUARTER 2013.

SHARE OF INCOME OR LOSS OF JOINT VENTURES AND ASSOCIATES, NET

SHARE OF INCOME OR LOSS OF JOINT VENTURES AND ASSOCIATES, NET, CHANGED BY PS.316.2 MILLION TO A NET INCOME OF PS.116.4 MILLION IN THIRD-QUARTER 2014 FROM A NET LOSS OF PS.199.8 MILLION IN THIRD-QUARTER 2013. THIS CHANGE REFLECTED MAINLY A REDUCTION IN LOSS OF GSF, OUR 50% JOINT VENTURE IN THE IUSACELL TELECOM BUSINESS, AS WELL AS A HIGHER INCOME OF BMP, THE CONTROLLING COMPANY OF UNIVISION.
 
INCOME TAXES

INCOME TAXES DECREASED BY PS.1,015.0 MILLION TO PS.65.9 MILLION IN THIRD-QUARTER 2014 COMPARED WITH PS.1,080.9 MILLION IN THIRD-QUARTER 2013. THIS DECREASE REFLECTED PRIMARILY A LOWER TAX BASE.

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS INCREASED BY PS.112.4 MILLION, OR 46.4%, TO PS.354.7 MILLION IN THIRD-QUARTER 2014, COMPARED WITH PS.242.3 MILLION IN THIRD-QUARTER 2013. THIS INCREASE REFLECTED PRIMARILY A HIGHER PORTION OF NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS IN OUR TELECOMMUNICATIONS SEGMENT.

OTHER RELEVANT INFORMATION

CAPITAL EXPENDITURES AND INVESTMENTS

DURING THIRD-QUARTER 2014, WE INVESTED APPROXIMATELY US$332.6 MILLION IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES, INCLUDING APPROXIMATELY US$183.4 MILLION FOR OUR TELECOMMUNICATIONS SEGMENT, US$102.4 MILLION FOR OUR SKY SEGMENT, AND US$46.8 MILLION FOR OUR CONTENT SEGMENT AND OTHER BUSINESSES.

OUR INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT IN OUR TELECOMMUNICATIONS SEGMENT DURING THIRD-QUARTER 2014 INCLUDED APPROXIMATELY US$41.1 MILLION FOR CABLEVISIÓN, US$81.5 MILLION FOR CABLEMÁS, US$39.9 MILLION FOR TVI, US$4.4 MILLION FOR CABLECOM, AND US$16.5 MILLION FOR BESTEL.

IN AUGUST 2014, WE ACQUIRED, PURSUANT TO APPLICABLE REGULATIONS, 100% OF THE EQUITY INTEREST OF GRUPO CABLE TV, S.A. DE C.V. (“CABLECOM”) THROUGH THE CONVERSION OF CERTAIN DEBT INSTRUMENTS PREVIOUSLY SUBSCRIBED BY TENEDORA ARES, S.A.P.I. DE C.V. (“ARES”), THE CONTROLLING COMPANY OF CABLECOM, THE CAPITALIZATION OF A LONG-TERM LOAN PREVIOUSLY SUBSCRIBED BY ARES, AND CASH IN THE AMOUNT OF PS.5,908 MILLION. THE TOTAL FAIR VALUE CONSIDERATION FOR THE ACQUISITION OF CABLECOM AMOUNTED TO PS.15,847.7 AT THE ACQUISITION DATE. WE BEGAN TO CONSOLIDATE CABLECOM IN OUR CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF AUGUST 31, 2014, AND THEREFORE, OUR CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2014, INCLUDED THE RESULTS OF CABLECOM FOR THE MONTH ENDED ON THAT DATE.

IN SEPTEMBER 2014, OUR PARTNER IN GSF AGREED TO PURCHASE OUR 50% EQUITY PARTICIPATION IN THE IUSACELL TELECOM BUSINESS AT A CASH PURCHASE PRICE OF US$717 MILLION (PS.9,623.2 MILLION). AS A RESULT OF THIS TRANSACTION, WHICH IS SUBJECT TO CUSTOMARY CLOSING CONDITIONS AND REQUIRED REGULATORY APPROVALS, WE RECOGNIZED A ONE-TIME NON-CASH LOSS OF APPROXIMATELY US$316 MILLION (PS.4,168.5 MILLION) IN CONSOLIDATED OTHER EXPENSE FOR THIRD-QUARTER 2014.

DEBT AND FINANCE LEASE OBLIGATIONS

THE FOLLOWING INFORMATION SETS FORTH OUR TOTAL CONSOLIDATED DEBT AND FINANCE LEASE OBLIGATIONS AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013. AMOUNTS ARE STATED IN MILLIONS OF MEXICAN PESOS:

THE TOTAL CONSOLIDATED DEBT AMOUNTED TO PS.77,040.5 MILLION AND PS.60,055.8 MILLION AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION  OF LONG-TERM DEBT IN THE AMOUNT OF PS.335.7 MILLION AND PS.312.7 MILLION, RESPECTIVELY.

ADDITIONALLY,  WE HAD FINANCE LEASE OBLIGATIONS IN THE AMOUNT OF PS.4,862.5 MILLION AND PS.4,919.2 MILLION AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION OF PS.418.8 MILLION  AND PS.424.7 MILLION, RESPECTIVELY.

AS OF SEPTEMBER 30, 2014, 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.39,747.5 MILLION. THE AGGREGATE AMOUNT OF NONCURRENT HELD-TO-MATURITY AND AVAILABLE-FOR-SALE INVESTMENTS AS OF SEPTEMBER 30, 2014, AMOUNTED TO PS.6,151.1 MILLION.

IN SEPTEMBER 2014, WE PREPAID PESO-DENOMINATED LONG-TERM BANK LOANS IN THE PRINCIPAL AMOUNT OF PS.4,500.0 MILLION WHICH WERE ORIGINALLY DUE IN 2016. THE AGGREGATE AMOUNT PAID BY US AMOUNTED TO PS.4,775.9 MILLION WHICH INCLUDED RELATED ACCRUED INTEREST AND FEES.

SHARES OUTSTANDING

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, AND EXCLUDING THE OUTSTANDING CPO EQUIVALENTS HELD IN A TRUST FOR THE IMPLEMENTATION OF THE LONG-TERM RETENTION PLAN, OUR SHARES OUTSTANDING AMOUNTED TO 338,373.3 MILLION AND 335,501.0 MILLION SHARES, RESPECTIVELY, AND OUR CPO EQUIVALENTS OUTSTANDING AMOUNTED TO 2,892.1 MILLION AND 2,867.5 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 SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, THE GDS (GLOBAL DEPOSITARY SHARES) EQUIVALENTS OUTSTANDING AMOUNTED TO 578.4 MILLION AND 573.5 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 24 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 AND IN FIVE CABLE AND TELECOMMUNICATIONS BUSINESSES: CABLEVISIÓN, CABLEMÁS, CABLECOM, TVI AND BESTEL. THROUGH ITS CABLE COMPANIES, TELEVISA 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 ADDITION, TELEVISA HAS A 50% EQUITY STAKE IN GSF TELECOM HOLDINGS, S.A.P.I. DE C.V. (“GSF”), THE CONTROLLING COMPANY OF GRUPO IUSACELL, S.A. DE C.V. (“IUSACELL”), MEXICO’S THIRD LARGEST MOBILE TELECOM PROVIDER IN TERMS OF SUBSCRIBERS. IN THE UNITED STATES, TELEVISA HAS EQUITY AND DEBENTURES THAT, UPON CONVERSION AND SUBJECT TO ANY NECESSARY APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION (“FCC”) IN THE UNITED STATES, WOULD REPRESENT APPROXIMATELY 38% ON A FULLY DILUTED, AS-CONVERTED BASIS OF THE EQUITY CAPITAL IN BROADCASTING MEDIA PARTNERS, INC. (“BMP”), 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
   CREDIT SUISSE
   GBM CASA DE BOLSA
   GOLDMAN SACHS
   HSBC
   INVEX
   ITAÚ SECURITIES
   JPMORGAN
   MAXIM GROUP
   MERRILL LYNCH
   MORGAN STANLEY
   NEW STREET
   SANTANDER
   SCOTIABANK
   UBS
 
 
 

 
 
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 03 YEAR: 2014
GRUPO TELEVISA, S.A.B.
 
FINANCIAL STATEMENT NOTES
 
CONSOLIDATED
Final Printing
 
GRUPO TELEVISA, S.A.B. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013 AND
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
(IN THOUSANDS OF MEXICAN PESOS, EXCEPT PER CPO AND PER SHARE AMOUNTS)

1.        BASIS OF PREPARATION AND ACCOUNTING POLICIES:

THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A.B. (THE "COMPANY") AND SUBSIDIARIES (COLLECTIVELY, THE "GROUP"), AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013,  ARE UNAUDITED,  AND HAVE BEEN PREPARED BY USING 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 THEREIN.
 
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, 2013 AND 2012, WHICH HAVE BEEN PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD, AND INCLUDE, AMONG OTHER DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH WERE APPLIED ON A CONSISTENT BASIS AS OF SEPTEMBER 30, 2014, EXCEPT FOR THE NEW SEGMENT PRESENTATION DISCUSSED IN NOTE 8.
 
THESE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS WERE AUTHORIZED FOR ISSUANCE ON OCTOBER 20, 2014, BY THE GROUP’S CHIEF FINANCIAL OFFICER.

2.         PROPERTY, PLANT AND EQUIPMENT:

PROPERTY, PLANT AND EQUIPMENT AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013 CONSISTED OF:
 
   
2014
   
2013
 
BUILDINGS
  PS. 8,311,771     PS. 8,411,136  
BUILDING IMPROVEMENTS
    359,480       305,402  
TECHNICAL EQUIPMENT
    77,035,996       66,508,565  
SATELLITE TRANSPONDERS
    7,869,492       7,869,492  
FURNITURE AND FIXTURES
    893,175       825,284  
TRANSPORTATION EQUIPMENT
    2,084,711       1,907,209  
COMPUTER EQUIPMENT
    5,606,091       5,341,054  
LEASEHOLD IMPROVEMENTS
    1,572,460       1,528,911  
      103,733,176       92,697,053  
ACCUMULATED DEPRECIATION
    (58,075,600 )     (49,198,237 )
      45,657,576       43,498,816  
LAND
    4,338,120       4,597,648  
CONSTRUCTION AND PROJECTS IN PROGRESS
    7,858,939       5,380,011  
    PS. 57,854,635     PS. 53,476,475  

DEPRECIATION CHARGED TO INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013 WAS PS.7,326,591 AND PS.6,568,396, RESPECTIVELY.
 
DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2014, THE GROUP INVESTED PS.10,081,440 IN PROPERTY, PLANT AND EQUIPMENT AS CAPITAL EXPENDITURES.

3.        DEBT AND FINANCE LEASE OBLIGATIONS:

DEBT AND FINANCE LEASE OBLIGATIONS OUTSTANDING AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013 WERE AS FOLLOWS:

   
2014
   
2013
 
U.S. DOLLAR DEBT:
           
     6% SENIOR NOTES DUE 2018 (A)
  PS. 6,683,315     PS. 6,507,849  
     6.625% SENIOR NOTES DUE 2025 (A)
    7,650,855       7,414,019  
     8.50% SENIOR NOTES DUE 2032 (A)
    3,995,541       3,890,267  
     6.625% SENIOR NOTES DUE 2040 (A)
    7,895,223       7,679,931  
     5% SENIOR NOTES DUE 2045 (A)
    12,902,825       -  
          TOTAL U.S. DOLLAR DEBT
    39,127,759       25,492,066  
                 
MEXICAN  PESO DEBT:
               
     7.38% NOTES DUE 2020 (B)
    9,957,093       9,951,803  
     TIIE + 0.35% NOTES DUE 2021 (B)
    5,986,380       -  
     8.49% SENIOR NOTES DUE 2037 (A)
    4,483,566       4,483,022  
     7.25% SENIOR NOTES DUE 2043 (A)
    6,432,106       6,430,330  
     BANK LOANS
    5,874,242       8,589,233  
     BANK LOANS (SKY)
    3,500,000       3,500,000  
     BANK LOANS (TVI)
    1,679,369       1,609,361  
          TOTAL MEXICAN PESO DEBT
    37,912,756       34,563,749  
          TOTAL DEBT (C)
    77,040,515       60,055,815  
          LESS: SHORT-TERM DEBT AND CURRENT
               
                         PORTION OF LONG-TERM DEBT
    335,748       312,715  
          LONG-TERM DEBT, NET OF CURRENT PORTION
  PS. 76,704,767     PS. 59,743,100  
FINANCE LEASE OBLIGATIONS:
               
     SATELLITE TRANSPONDER LEASE OBLIGATION
  PS. 4,049,114     PS. 4,077,561  
     OTHER
    813,375       841,686  
          TOTAL FINANCE LEASE OBLIGATIONS
    4,862,489       4,919,247  
          LESS: CURRENT PORTION
    418,806       424,698  
          FINANCE LEASE OBLIGATIONS, NET OF CURRENT
               
              PORTION
  PS. 4,443,683     PS. 4,494,549  

(A)  
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, 2032, 2037, 2040, 2043 AND 2045, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 6.31%, 6.97%, 8.94%, 8.93%, 6.97%, 7.62% AND 5.26% 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, 2037, 2040 AND 2043, 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, 2032, 2037, 2040 AND 2045 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”).

(B)  
INTEREST ON THESE NOTES (“CERTIFICADOS BURSÁTILES”) IS PAYABLE SEMI-ANNUALLY FOR NOTES DUE 2020 AND EVERY 28 DAYS FOR NOTES DUE 2021. 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, 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.

(C)  
TOTAL DEBT IS PRESENTED NET OF UNAMORTIZED FINANCE COSTS AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, IN THE AGGREGATE AMOUNT OF PS.1,290,532 AND PS.808,585, RESPECTIVELY.
 
          IN APRIL 2014, THE COMPANY CONCLUDED AN OFFERING OF LOCAL BONDS (“CERTIFICADOS BURSÁTILES”) DUE 2021 FOR A PRINCIPAL AMOUNT OF PS.6,000,000  WITH AN INTEREST RATE OF THE 28-DAY INTERBANK EQUILIBRIUM INTEREST RATE (“TASA DE INTERÉS INTERBANCARIA DE EQUILIBRIO” OR “TIIE”) PLUS 0.35%, WHICH WAS REGISTERED WITH THE CNBV.

          IN MAY 2014, THE COMPANY CONCLUDED AN OFFERING OF U.S.$1,000 MILLION (PS.12,922,300) AGGREGATE PRINCIPAL AMOUNT OF 5% SENIOR NOTES DUE 2045, WHICH WAS REGISTERED WITH THE U.S. SEC.

          IN JUNE 2014, THE COMPANY DEPOSITED CASH INTO IRREVOCABLE TRUST ACCOUNTS FOR THE BENEFIT OF CERTAIN CREDITORS OF THE COMPANY’S PESO-DENOMINATED LONG-TERM BANK LOANS, THAT REPRESENTED A PRINCIPAL AMOUNT OF PS.4,500,000. IN SEPTEMBER 2014, THE COMPANY PREPAID PESO-DENOMINATED LONG-TERM BANK LOANS IN THE PRINCIPAL AMOUNT OF PS.4,500,000, WHICH WERE ORIGINALLY DUE IN 2016.

          IN SEPTEMBER 2014, THE COMPANY PREPAID A PESO-DENOMINATED LONG-TERM BANK LOAN PREVIOUSLY SUBSCRIBED BY CABLECOM IN THE PRINCIPAL AMOUNT OF PS.1,771,000, WHICH WAS ORIGINALLY DUE IN 2018. THIS PREPAYMENT WAS FUNDED BY THE COMPANY WITH A LONG-TERM BANK LOAN IN THE PRINCIPAL AMOUNT OF PS.1,782,000, WITH A MATURITY IN 2016.

4.        CONTINGENCIES:
 
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.

5.        EQUITY:

THE EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, IS PRESENTED AS FOLLOWS:

   
2014
   
2013
 
NOMINAL CAPITAL STOCK
  PS. 2,494,410     PS. 2,494,410  
CUMULATIVE INFLATION ADJUSTMENT (A)
    2,483,716       2,483,716  
TOTAL CAPITAL STOCK
  PS. 4,978,126     PS. 4,978,126  
ADDITIONAL PAID-IN CAPITAL
    15,889,819       15,889,819  
RETAINED EARNINGS
    57,301,130       49,149,607  
ACCUMULATED OTHER COMPREHENSIVE INCOME, NET
    5,181,113       3,394,051  
SHARES REPURCHASED
    (12,650,720 )     (12,848,448 )
NET INCOME FOR THE PERIOD
    2,882,651       7,748,279  
 EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY
  PS. 73,582,119     PS. 68,311,434  

(A) ADJUSTMENT TO RECOGNIZE THE EFFECTS OF INFLATION IN CAPITAL STOCK THROUGH DECEMBER 31, 1997, DETERMINED BY APPLYING THE CHANGE IN THE MEXICAN NATIONAL CONSUMER PRICE INDEX BETWEEN THE DATES CAPITAL STOCK WAS CONTRIBUTED AND DECEMBER 31, 1997, THE DATE THROUGH WHICH THE MEXICAN ECONOMY WAS CONSIDERED HYPERINFLATIONARY UNDER THE GUIDELINES OF THE IFRS.

      ON APRIL 2, 2013, 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 MAY 2013 IN THE AGGREGATE AMOUNT OF PS.1,084,192.

       ON DECEMBER 9, 2013, 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 DECEMBER 2013 IN THE AGGREGATE AMOUNT OF PS.1,084,192.

     AS OF SEPTEMBER 30, 2014, THE NUMBER OF SHARES ISSUED, ACQUIRED BY A COMPANY’S  TRUST AND OUTSTANDING IS PRESENTED AS FOLLOWS:
 
     
ISSUED
 
ACQUIRED BY A COMPANY’S TRUST
 
OUTSTANDING
 
SERIES “A” SHARES
 
123,273,961,425
 
8,169,668,784
 
115,104,292,641
 
SERIES “B” SHARES
 
58,982,873,976
 
5,592,438,989
 
53,390,434,987
 
SERIES “D” SHARES
 
90,086,525,865
 
5,147,255,699
 
84,939,270,166
 
SERIES “L” SHARES
 
90,086,525,865
 
5,147,255,699
 
84,939,270,166
     
362,429,887,131
 
24,056,619,171
 
338,373,267,960
 
 AS OF SEPTEMBER 30, 2014, THE COMPANY’S SHARES REPURCHASED BY THE COMPANY AND THE COMPANY’S SHARES HELD BY A SPECIAL TRUST IN CONNECTION WITH THE COMPANY’S STOCK PURCHASE PLAN AND THE LONG-TERM RETENTION PLAN ARE PRESENTED AS A CHARGE TO THE EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY, AS FOLLOWS:

   
SERIES “A”, “B”, “D”, AND “L” SHARES
       
   
IN THE FORM
OF CPOS
   
NOT IN THE
FORM OF CPOS
   
 
TOTAL
   
 
NET COST
 
REPURCHASE PROGRAM (1)
    -       -       -     PS. -  
HELD BY A COMPANY TRUST  (2)
    17,206,540,299       6,850,078,872       24,056,619,171       9,912,803  
ADVANCES FOR ACQUISITION OF SHARES (3)
    -       -       -       2,737,917  
      17,206,540,299       6,850,078,872       24,056,619,171     PS. 12,650,720  

(1)  
DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2014 THE COMPANY DID NOT REPURCHASE ANY SHARES IN THE FORM OF CPOS.

(2)  
DURING THE NINE MONTHS ENDED SEPTEMBER 2014, THE TRUST FOR THE LONG-TERM RETENTION PLAN ACQUIRED 15,795,000 SHARES OF THE COMPANY, IN THE FORM OF 135,000 CPOS, IN THE AMOUNT OF PS.10,183, AND RELEASED 2,515,356,792 SHARES IN THE FORM OF 21,498,776 CPOS, AND 372,683,376 SERIES”A” SHARES, IN THE AGGREGATE AMOUNT OF PS.730,156 IN CONNECTION WITH THE LONG-TERM RETENTION PLAN.

(3)  
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.600,972 AND PS.437,445 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013, RESPECTIVELY, WHICH AMOUNT WAS REFLECTED IN CONSOLIDATED INCOME AS ADMINISTRATIVE EXPENSE.
 
6.        FINANCE EXPENSE, NET:

FINANCE (EXPENSE) INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013, INCLUDED:

   
2014
   
2013
 
INTEREST EXPENSE
  PS. (4,056,896 )   PS. (3,503,812 )
FOREIGN EXCHANGE LOSS, NET
    (365,988 )     (304,321 )
OTHER FINANCE EXPENSE, NET (1)
    -       (157,560 )
   FINANCE EXPENSE
    (4,422,884 )     (3,965,693 )
INTEREST INCOME (2)
    891,944       791,679  
OTHER FINANCE INCOME, NET (3)
    738,756       -  
   FINANCE INCOME
    1,630,700       791,679  
   FINANCE EXPENSE, NET
  PS. (2,792,184 )   PS. (3,174,014 )
 
(1)   OTHER FINANCE EXPENSE, NET, INCLUDED A NET LOSS IN FAIR VALUE FROM DERIVATIVE FINANCIAL CONTRACTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013. THIS LINE ITEM ALSO INCLUDED A LOSS IN FAIR VALUE FROM AN EMBEDDED DERIVATIVE IN A HOST CONTRACT RELATED TO THE GROUP’S INVESTMENTS IN CONVERTIBLE DEBENTURES ISSUED BY BMP IN THE AMOUNT OF PS.32,308 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013.
 
(2)   THIS LINE ITEM INCLUDED INTEREST INCOME FROM THE GROUP’S INVESTMENT IN CONVERTIBLE DEBENTURES ISSUED BY BMP AND ARES IN THE AGGREGATE AMOUNT OF PS.387,977, FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014, AND BY BMP IN THE AMOUNT OF PS.160,694 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013.

(3)  THIS LINE ITEM INCLUDED A GAIN IN FAIR VALUE FROM AN EMBEDDED DERIVATIVE IN A HOST CONTRACT RELATED TO THE GROUP’S INVESTMENTS IN CONVERTIBLE DEBENTURES ISSUED BY BMP IN THE AMOUNT OF PS.880,938 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014.
 
7.        INCOME TAXES:

          IN THE LAST QUARTER OF 2013 THE MEXICAN CONGRESS ENACTED A NEW TAX REFORM (THE “2014 TAX REFORM”), WHICH BECAME EFFECTIVE AS OF JANUARY 1, 2014.  AMONG THE TAX REFORMS APPROVED BY THE MEXICAN CONGRESS, ONE OF THE MOST RELEVANT CHANGES WAS THE ELIMINATION OF THE TAX CONSOLIDATION REGIME ALLOWED FOR MEXICAN CONTROLLING COMPANIES THROUGH DECEMBER 31, 2013.

          THE INCOME TAX PAYABLE IN CONNECTION WITH THE ELIMINATION OF THE TAX CONSOLIDATION REGIME AMOUNTED TO AN AGGREGATE AMOUNT OF PS. 6,636,049 AND PS.6,813,595 AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, RESPECTIVELY, OF WHICH PS.6,291,975 AND PS.6,629,865 WERE CLASSIFIED AS NON-CURRENT LIABILITIES AS OF THOSE DATES, RESPECTIVELY.

          IN THE NINE MONTHS ENDED SEPTEMBER 30, 2013, CURRENT INCOME TAXES INCLUDED INCOME TAXES COMPUTED ON A TAX CONSOLIDATED BASIS, IETU (FLAT TAX), AND AMOUNTS RESULTING FROM INCOME TAXES RELATED TO PRIOR YEARS.
 
  THE INCOME TAX PAYABLE AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, IN CONNECTION WITH THE 2010 MEXICAN TAX REFORM, WAS AS FOLLOWS:

   
2014
   
2013
 
TAX LOSSES OF SUBSIDIARIES, NET
  PS. 170,942     PS. 350,197  
DIVIDENDS DISTRIBUTED AMONG THE GROUP’S ENTITIES
    -       81,029  
      170,942       431,226  
LESS: CURRENT PORTION
    94,698       260,285  
NON-CURRENT PORTION
  PS. 76,244     PS. 170,941  
 
       THROUGH DECEMBER 31, 2013, CURRENT INCOME TAX ASSETS WERE OFFSET AGAINST CURRENT INCOME TAX LIABILITIES OF THE COMPANY’S MEXICAN SUBSIDIARIES THAT WERE ALLOWED TO CONSOLIDATE THEIR INCOME OR LOSS FOR INCOME TAX PURPOSES, AS THEY WERE RELATED TO INCOME TAXES LEVIED BY THE TAXATION AUTHORITY ON THE SAME TAXABLE ENTITY AND THE GROUP HAD THE LEGALLY ENFORCEABLE RIGHT TO SET OFF THOSE CURRENT INCOME TAX ASSETS AND LIABILITIES. BEGINNING ON JANUARY 1, 2014, AS A RESULT OF THE 2014 TAX REFORM, THE COMPANY IS NOT LONGER ALLOWED TO CONSOLIDATE INCOME OR LOSS OF ITS MEXICAN SUBSIDIARIES FOR INCOME TAX PURPOSES, AND CURRENT TAX ASSETS AND CURRENT TAX LIABILITIES OF COMPANIES IN THE GROUP RELATE TO INCOME TAXES LEVIED BY THE TAXATION AUTHORITY ON DIFFERENT TAXABLE ENTITIES.

       AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, CURRENT INCOME TAX ASSETS AND LIABILITIES AND DEFERRED INCOME TAX ASSETS AND LIABILITIES, AS REPORTED BY TAXABLE ENTITIES IN THE GROUP, ARE PRESENTED AS FOLLOWS:

   
2014
   
 2013
 
CURRENT INCOME TAXES:
           
ASSETS
  PS. 5,253,858     PS. 1,545,548  
LIABILITIES
    4,872,009       198,370  
NET (1)
  PS. 381,849     PS. 1,347,178  
DEFERRED INCOME TAXES:
               
ASSETS
  PS. 15,118,259     PS. 10,608,778  
LIABILITIES
    3,958,608       -  
NET
  PS. 11,159,651     PS. 10,608,778  

        (1) THE NET AMOUNT OF CURRENT INCOME TAXES OF SEPTEMBER 30, 2014 IS REFLECTED AS OTHER ACCOUNTS RECEIVABLE (PS.406,357) AND OTHER TAXES PAYABLE (PS.24,508) IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2014.
 
       THE DEFERRED INCOME TAXES AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, WERE PRINCIPALLY DERIVED FROM:

   
2014
   
2013
 
ASSETS:
           
     ACCRUED LIABILITIES
  PS. 1,404,984     PS. 1,455,444  
     ALLOWANCE FOR DOUBTFUL ACCOUNTS
    733,431       753,090  
     CUSTOMER ADVANCES
    2,122,716       2,480,552  
     INTANGIBLE ASSETS AND TRANSMISSION RIGHTS
    501,895       755,985  
LIABILITIES:
               
     INVESTMENTS
    (207,877 )     (1,147,683 )
     PROPERTY, PLANT AND EQUIPMENT, NET
    (1,375,573 )     (1,727,736 )
     DERIVATIVE FINANCIAL INSTRUMENTS
    (401,694 )     (366,225 )
     PREPAID EXPENSES AND OTHER ITEMS
    (400,942 )     (542,435 )
DEFERRED INCOME TAXES OF MEXICAN COMPANIES
    2,376,940       1,660,992  
DEFERRED INCOME TAX OF FOREIGN SUBSIDIARIES
    165,832       165,832  
ASSET TAX
    680,835       845,910  
TAX LOSS CARRYFORWARDS
    7,936,044       7,936,044  
DEFERRED INCOME TAX ASSET, NET
  PS. 11,159,651     PS. 10,608,778  
 
8. SEGMENT INFORMATION AND SEASONALITY:

 INFORMATION BY SEGMENTS FOR THE NINE MONTS ENDED SEPTEMBER 30, 2014 AND 2013, IS PRESENTED AS FOLLOWS:

   
TOTAL REVENUES
   
INTERSEGMENT REVENUES
   
CONSOLIDATED REVENUES
   
SEGMENT PROFIT (LOSS)
       
2014:
                             
CONTENT
  PS. 23,739,191     PS. 785,520     PS. 22,953,671     PS. 10,399,716        
SKY
    13,009,152       10,619       12,998,533       6,166,605        
TELECOMMUNICATIONS
    14,709,448       88,342       14,621,106       5,387,029        
OTHER BUSINESSES
    5,670,925       146,088       5,524,837       454,227        
SEGMENT TOTALS
    57,128,716       1,030,569       56,098,147       22,407,577        
RECONCILIATION TO CONSOLIDATED AMOUNTS:
                                     
ELIMINATIONS AND CORPORATE EXPENSES
    (1,030,569 )     (1,030,569 )     -       (1,056,754 )      
DEPRECIATION AND AMORTIZATION EXPENSE
    -       -       -       (8,181,297 )      
CONSOLIDATED TOTAL BEFORE OTHER EXPENSE
    56,098,147       -       56,098,147       13,169,526     (1 )
OTHER EXPENSE, NET
    -       -       -       (4,759,838 )      
CONSOLIDATED TOTAL
  PS. 56,098,147     PS. -     PS. 56,,098,147     PS. 8,409,688     (2 )
                                       
2013:
                                     
CONTENT
  PS. 23,383,784     PS. 661,219     PS. 22,722,565     PS. 10,860,541        
SKY
    11,917,600       18,280       11,899,320       5,553,219        
TELECOMMUNICATIONS
    12,539,367       58,446       12,480,921       4,475,572        
OTHER BUSINESSES
    5,498,641       253,800       5,244,841       481,195        
SEGMENT TOTALS
    53,339,392       991,745       52,347,647       21,370,527        
RECONCILIATION TO CONSOLIDATED AMOUNTS:
                                     
ELIMINATIONS AND CORPORATE EXPENSES
    (991,745 )     (991,745 )     -       (834,052 )      
DEPRECIATION AND AMORTIZATION EXPENSE
    -       -       -       (7,278,088 )      
CONSOLIDATED TOTAL BEFORE OTHER INCOME
    52,347,647       -       52,347,647       13,258,387     (1 )
OTHER INCOME, NET
    -       -       -       160,826        
CONSOLIDATED TOTAL
  PS. 52,347,647     PS. -     PS. 52,347,647    
PS 13,419,213
    (2 )

(1)  
CONSOLIDATED TOTALS REPRESENTS INCOME BEFORE OTHER INCOME (EXPENSE).
(2)  
CONSOLIDATED TOTALS REPRESENTS CONSOLIDATED OPERATING INCOME.
 
NEW SEGMENT PRESENTATION
 
           BEGINNING IN THE FIRST QUARTER OF 2014, THE GROUP’S OTHER BUSINESSES SEGMENT INCLUDES THE PUBLISHING BUSINESS, WHICH WAS PREVIOUSLY PRESENTED AS A SEPARATE REPORTABLE SEGMENT. THE GROUP’S PUBLISHING BUSINESS WAS CLASSIFIED INTO THE OTHER BUSINESSES SEGMENT SINCE ITS OPERATIONS ARE NO LONGER SIGNIFICANT TO THE GROUP’S CONSOLIDATED FINANCIAL STATEMENTS TAKEN AS A WHOLE.
 
SEASONALITY

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 2013 AND 2012, THE GROUP RECOGNIZED 29.1% AND 28.6%, 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 CONSOLIDATED NET INCOME ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY FOR EACH OF THE FOUR QUARTERS IN THE PERIOD ENDED SEPTEMBER 30, 2014, IS PRESENTED AS FOLLOWS:
   
 
QUARTER
 
ACCUMULATED
   
QUARTER
 
4TH  / 
13
  PS. 7,748,279     PS. 2,463,830  
1ST   /
14
    853,868       853,868  
2ND   /
14
    3,065,452       2,211,584  
3RD   /
14
    2,882,651       (182,801 )
 
9.       CAPITAL CONTRIBUTIONS IN JOINT VENTURE:
 
      DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND THE YEAR ENDED DECEMBER 31, 2013, THE GROUP MADE CAPITAL CONTRIBUTIONS IN CONNECTION WITH ITS 50% JOINT INTEREST IN GSF, THE PARENT COMPANY OF IUSACELL, IN THE AGGREGATE AMOUNT OF  PS.1,337,500 AND PS.1,587,500, RESPECTIVELY. DURING  2014, NO CAPITAL CONTRIBUTIONS WERE MADE BY THE GROUP IN CONNECTION WITH ITS 50% JOINT INTEREST IN GSF.

10.      OTHER TRANSACTIONS:
 
          IN AUGUST 2014, THE GROUP CONCLUDED THE ACQUISITION, PURSUANT TO APPLICABLE REGULATIONS, OF 100% OF THE EQUITY INTEREST OF CABLECOM THROUGH THE CONVERSION OF CERTAIN DEBT INSTRUMENTS PREVIOUSLY SUBSCRIBED BY ARES, THE CONTROLLING COMPANY OF CABLECOM, IN THE PRINCIPAL AMOUNT OF PS.7,000,000 AND RELATED ACCRUED INTEREST AT THE ACQUISITION DATE OF PS.297,292, AND AN ADDITIONAL CONSIDERATION OF PS.8,550,369, COMPRISED OF (I) THE CAPITALIZATION OF A LONG-TERM CREDIT PREVIOUSLY SUBSCRIBED  BY ARES IN THE PRINCIPAL AMOUNT OF U.S.$195 MILLION (Ps.2,573,961) AND RELATED ACCRUED INTEREST AT THE ACQUISITION DATE OF U.S.$5.2 MILLION (PS.68,406); AND (II) CASH IN THE AMOUNT OF PS.5,908,002. THE TOTAL FAIR VALUE CONSIDERATION FOR THE ACQUISITION OF CABLECOM AMOUNTED TO PS.15,847,661 AT THE ACQUISITION DATE, AND THE GROUP RECOGNIZED AN EXCESS OF THE PURCHASE PRICE OVER THE CARRYING VALUE OF THE ACQUIRED NET ASSETS IN THE AMOUNT OF Ps.11,524,046, BASED ON A PRELIMINARY VALUATION. THE GROUP EXPECTS TO COMPLETE A FINAL VALUATION AND PURCHASE PRICE ALLOCATION OF THIS TRANSACTION IN THE FIRST QUARTER OF 2015. THE GROUP BEGAN TO CONSOLIDATE CABLECOM IN ITS CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF AUGUST 31, 2014, AND THEREFORE, ITS CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2014, INCLUDED THE RESULTS OF CABLECOM FOR THE MONTH ENDED ON THAT DATE.

          AMOUNTS RECOGNIZED BY THE GROUP AS OF AUGUST 31, 2014 (THE ACQUISITION DATE) FOR MAJOR CLASS OF ASSETS ACQUIRED AND LIABILITIES ASSUMED OF CABLECOM, ARE SET FORTH AS FOLLOWS:

     
AUGUST 31,
2014
 
ASSETS:
     
 
CASH AND CASH EQUIVALENTS
  PS. . 371,353  
 
OTHER CURRENT ASSETS
    439,709  
 
          TOTAL CURRENT ASSETS
    811,062  
 
NON-CURRENT ASSETS
    6,279,105  
 
          TOTAL ASSETS
    7,090,167  
LIABILITIES:
       
 
SHORT-TERM DEBT AND FINANCE LEASE OBLIGATIONS
    447,875  
 
OTHER CURRENT LIABILITIES
    622,487  
 
          TOTAL CURRENT LIABILITIES
    1,070,362  
 
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS
    1,411,047  
 
OTHER NON-CURRENT LIABILITIES
    285,144  
 
          TOTAL NON-CURRENT LIABILITIES
    1,696,191  
 
          TOTAL LIABILITIES
    2,766,553  
 
          TOTAL NET ASSETS
  PS. 4,323,614  
 
         IN THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013, ROYALTY REVENUE FROM UNIVISION AMOUNTED TO PS.3,105,373 AND PS.2,555,310, RESPECTIVELY.
 
- - - - - - - - - - - -
 
 
 

 
 
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
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.
PRODUCTIONS OF T.V. PROGRAMS BROADCASTING OF T.V.
34,151,934
33.00
141,932
61,860
             
2
BROADCASTING MEDIA PARTNERS, INC
PROMOTION AND/OR DEVELOPMENT OF ENTERTAINMENT COMPANIES
  842,850
  7.81
  2,584,818
  3,181,286
             
3
EDITORIAL CLIO, LIBROS Y VIDEOS, S.A. DE C.V.
PUBLISHING AND PRINTING OF BOOKS AND MAGAZINES
3,227,050
30.00
32,270
5,780
             
ENDEMOL MEXICO, S.A. DE C.V.
PRODUCTION AND COMMERCIALIZATION OF TELEVISION PROGRAMMING
25,000
  50.00
  25
  310
             
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD, S.A.P.I. DE C.V.
TELECOM
  54,666,667
  33.33
  54,667
  542,630
             
6
OCESA ENTRETENIMIENTO, S.A. DE C.V.
LIVE ENTERTAINMENT IN MEXICO
14,100,000
40.00
1,062,811
876,666
             
7
OLLIN VFX, S.A. DE C.V.
TELEVISION AND CINEMA PRODUCTION
34
25.37
13,333
13,333
             
8
T&V S.A.S.
PRODUCTION AND COMMERCIALIZATION OF TELEVISION PROGRAMMING
  1,849
  49.97
  312
  312
TOTAL INVESTMENT IN ASSOCIATES
3,890,168
4,682,177
 
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
                               
BANCO NACIONAL DE MÉXICO, S.A.
NO
4/20/2006
4/20/2016
8.74
 
 
2,100,000
 
 
 
 
 
 
 
 
 
BANCO SANTANDER , S.A.
NO
4/21/2006
4/21/2016
TIIE+24
 
 
1,400,000
 
 
 
 
 
 
 
 
 
BANCO MERCANTIL DEL NORTE, S.A.
NO
2/24/2011
2/21/2016
TIIE+1.90
66,365
199,095
610,328
 
 
 
 
 
 
 
 
 
BANCO NACIONAL DE MÉXICO, S.A.
NO
3/25/2011
3/23/2021
9.40
 
 
 
 
 
399,350
 
 
 
 
 
 
BANCO NACIONAL DE MÉXICO, S.A.
NO
3/25/2011
3/23/2021
9.06
 
 
 
319,480
 
479,220
 
 
 
 
 
 
BANCO NACIONAL DE MÉXICO, S.A.
NO
3/25/2011
3/23/2018
8.77
 
 
 
 
399,500
 
 
 
 
 
 
 
HSBC MÉXICO, S.A.
NO
3/28/2011
3/30/2018
TIIE+117.5
 
 
624,190
1,248,380
624,190
 
 
 
 
 
 
 
AF BANREGIO, S.A. DE C.V.
NO
10/4/2012
10/2/2017
TIIE+2.50
1,500
4,500
9,600
18,400
 
 
 
 
 
 
 
 
HSBC MÉXICO, S.A.
NO
5/29/2013
5/29/2019
TIIE+1.70
16,072
48,216
64,774
64,774
64,774
212,175
 
 
 
 
 
 
HSBC MÉXICO, S.A.
NO
7/4/2014
7/4/2019
TIIE+1.40
 
 
 
 
 
298,795
 
 
 
 
 
 
BANCO SANTANDER, S.A
NO
9/29/2014
9/29/2016
TIIE+.15
 
 
1,779,933
 
 
 
 
 
 
 
 
 
         
 
 
 
 
 
 
 
 
 
 
 
 
OTHER
       
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL BANKS
       
       83,937
      251,811
   6,588,825
   1,651,034
    1,088,464
    1,389,540
0
0
0
0
0
0
STOCK MARKET
       
 
 
 
 
 
 
 
 
 
 
 
 
LISTED STOCK EXCHANGE
       
 
 
 
 
 
 
 
 
 
 
 
 
UNSECURED
       
 
 
 
 
 
 
 
 
 
 
 
 
SENIOR NOTES
YES
5/9/2007
5/11/2037
8.93
 
 
 
 
 
4,483,566
 
 
 
 
 
 
NOTES
NO
10/14/2010
10/1/2020
7.38
 
 
 
 
 
9,957,093
 
 
 
 
 
 
SENIOR NOTES
YES
5/14/2013
5/14/2043
7.25
 
 
 
 
 
6,432,106
 
 
 
 
 
 
NOTES
NO
4/7/2014
4/1/2021
TIIE+.35
 
 
 
 
 
5,986,380
 
 
 
 
 
 
SENIOR NOTES
YES
5/6/2008
5/15/2018
6.31
 
 
 
 
 
 
 
 
 
 
 6,683,315
 
SENIOR NOTES
YES
3/18/2005
3/18/2025
6.97
 
 
 
 
 
 
 
 
 
 
 
7,650,855
SENIOR NOTES
YES
3/11/2002
3/11/2032
8.94
 
 
 
 
 
 
 
 
 
 
 
3,995,541
NOTES
YES
11/23/2009
1/15/2040
6.97
 
 
 
 
 
 
 
 
 
 
 
7,895,223
NOTES
YES
5/13/2014
5/13/2045
5.26
 
 
 
 
 
 
 
 
 
 
 
12,902,825
SECURED
       
0
0
0
0
0
  26,859,145
0
0
0
0
6,683,315
     32,444,444
PRIVATE PLACEMENTS
       
 
 
 
 
 
 
 
 
 
 
 
 
UNSECURED
       
 
 
 
 
 
 
 
 
 
 
 
 
SECURED
       
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL STOCK MARKET
       
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CURRENT AND NON-CURRENT LIABILITIES WITH COST
       
 
 
 
 
 
 
 
 
 
 
 
 
CSI LEASING MÉXICO, S. DE R.L. DE C.V.
NO
12/1/2011
10/1/2015
 
7,563
2,272
249
 
 
 
 
 
 
 
 
 
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
8/1/2012
7/1/2020
 
8,008
79,420
76,699
74,679
73,197
143,620
 
 
 
 
 
 
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
7/1/2014
8/1/2019
 
5,800
16,584
19,652
17,425
15,654
12,736
 
 
 
 
 
 
ALD AUTOMITIVE, S.A. DE C.V.
NO
12/1/2013
12/1/2015
 
588
1,850
2,403
 
 
 
 
 
 
 
 
 
INTELSAT GLOBAL  SALES & MARKETING, LTD.
YES
10/1/2012
9/1/2027
 
 
 
 
 
 
 
47,183
146,811
208,639
224,390
241,330
3,180,761
IP MATRIX, S.A. DE C.V.
YES
11/1/2009
11/1/2015
 
 
 
 
 
 
 
3,846
11,831
671
 
 
 
GRUPO DE TELECOMUNICACIONES DE ALTA CAPACIDAD
NO
8/1/2012
7/1/2021
 
 
 
 
 
 
 
18,548
17,955
18,300
18,899
19,506
62,502
GE CAPITAL CFE MEXICO,  S. DE R.L. DE C.V.
NO
5/29/2013
7/1/2017
 
 
 
 
 
 
 
482
2,492
3,517
3,314
 
 
CISCO SYSTEMS CAPITAL CORPORATION
NO
10/10/2012
8/27/2016
 
 
 
 
 
 
 
13,212
34,361
25,540
 
 
 
TOTAL CURRENT AND NON-CURRENT LIABILITIES WITH COST
       
21,959
100,126
99,003
92,104
88,851
156,356
83,271
       213,450
     256,667
     246,603
    260,836
       3,243,263
         
 
 
 
 
 
 
 
 
 
 
 
 
SUPPLIERS
       
 
 
 
 
 
 
 
 
 
 
 
 
VARIOUS
NO
10/1/2014
9/30/2015
 
 
7,328,613
 
 
 
 
 
 
 
 
 
 
VARIOUS
YES
10/1/2014
9/30/2015
 
 
 
 
 
 
 
 
5,042,418
 
 
 
 
TOTAL SUPPLIERS
       
0
   7,328,613
0
0
0
0
0
    5,042,418
0
0
0
0
         
 
 
 
 
 
 
 
 
 
 
 
 
OTHER CURRENT AND NON-CURRENT LIABILITIES
       
 
 
 
 
 
 
 
 
 
 
 
 
VARIOUS
NO
     
 
15,792,935
46,857
11,207
2,875
304,283
 
 
 
 
 
 
TRANSMISSION RIGHTS
NO
     
 
 
191,234
93,484
15,954
56,305
 
 
 
 
 
 
CUSTOMER DEPOSITS AND ADVANCES
NO
     
 
 
897,596
 
 
 
 
 
 
 
 
 
2010 AND 2014 MEXICAN TAX REFORM
NO
     
 
 
381,424
770,289
1,400,698
3,815,808
 
 
 
 
 
 
DERIVATIVE FINANCIAL INSTRUMENTS
NO
     
 
 
107,195
 
230,709
595
 
 
 
 
 
 
VARIOUS
YES
     
 
 
 
 
 
 
 
1,194,767
 
 
 
83,808
TRANSMISSION RIGHTS
YES
     
 
 
 
 
 
 
 
 
724,997
407,043
351,764
310,780
OTHER CURRENT AND NON-CURRENT LIABILITIES
       
               -
 15,792,935
   1,624,306
      874,980
    1,650,236
    4,176,991
               -
    1,194,767
     724,997
     407,043
    351,764
          394,588
         
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL
       
     105,896
 23,473,485
   8,312,134
   2,618,118
    2,827,551
  32,582,032
        83,271
    6,450,635
     981,664
     653,646
 7,295,915
     36,082,295
 
NOTES
 
  THE EXCHANGE RATES FOR THE CREDITS DENOMINATED  IN FOREIGN CURRENCY WERE AS FOLLOWS:
 
                                      $      13.4215     PESOS PER U.S. DOLLAR
 
DOES NOT INCLUDE TAX LIABILITIES INCLUDED PAYABLE IN FOREIGN CURRENCY AND MEXICAN PESOS (REF. 21050000 TAXES PAYABLE) OF PS.59,457 AND PS.1,142,206, 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.1,290,532.
 
 
 

 
 
MONETARY FOREIGN CURRENCY POSITION
(THOUSANDS OF MEXICAN PESOS)
CONSOLIDATED
  Final Printing
FOREIGN CURRENCY POSITION
(THOUSANDS OF PESOS)
DOLLARS
OTHER CURRENCIES
TOTAL
THOUSANDS
OF PESOS
THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
THOUSANDS
OF DOLLARS
THOUSANDS
OF PESOS
           
MONETARY ASSETS
3,366,036
45,177,252
160,815
2,158,380
47,335,632
           
CURRENT
2,061,036
27,662,195
112,353
1,507,947
29,170,142
           
NON-CURRENT
1,305,000
17,515,057
48,462
650,433
18,165,490
           
LIABILITIES POSITION
3,882,672
50,974,529
47,115
632,354
51,606,883
           
CURRENT
449,647
6,034,935
41,607
558,428
6,593,363
           
NON-CURRENT
3,433,025
44,939,594
5,508
73,926
45,013,520
           
NET BALANCE
(516,636)
(5,797,277)
113,700
1,526,026
(4,271,251)
 
NOTES: 
 
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS :
 
PS.
13.4215
 
PESOS PER U.S. DOLLAR
 
16.9554
 
PESOS PER EURO
 
11.9932
 
PESOS PER CANADIAN DOLLAR
 
1.5932
 
PESOS PER ARGENTINEAN PESO
 
0.5417
 
PESOS PER URUGUAYAN PESO
 
0.0224
 
PESOS PER CHILEAN PESO
 
0.0067
 
PESOS PER COLOMBIAN PESO
 
4.6749
 
PESOS PER PERUVIAN NUEVO SOL
 
14.0751
 
PESOS PER SWISS FRANC
 
2.1304
 
PESOS PER STRONG BOLIVAR
 
5.4894
 
PESOS PER BRAZILIAN REAL
 
21.7599
 
PESOS PER STERLING LIBRA
 
2.1866
 
PESOS PER CHINESE YUAN
 
1.8609
 
PESOS PER SWEDISH KRONA
 

 
DEBT INSTRUMENTS
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, PS.4,500 MILLION, U.S.$600 MILLION, PS.6,500 MILLION AND U.S.$1,000 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A.B. WITH MATURITY IN 2018, 2025, 2032, 2037, 2040, 2043 AND 2045, 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 IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.10,000 MILLION AND DUE 2021 IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.6,000 MILLION, 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 TWO MEXICAN BANKS IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.4,100 MILLION, AND MATURITIES BETWEEN 2016 AND 2021, 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 LONG-TERM LOANS ENTERED INTO BY SKY WITH TWO MEXICAN BANKS IN THE AGGREGATE PRINCIPAL AMOUNT OF PS.3,500 MILLION, WITH A MATURITY IN 2016, AND GUARANTEED BY THE COMPANY, SKY IS REQUIRED TO MAINTAIN (A) CERTAIN FINANCIAL COVERAGE RATIOS RELATED TO INDEBTEDNESS AND INTEREST EXPENSE; AND (B) CERTAIN RESTRICTIVE COVENANTS ON INDEBTEDNESS, LIENS, ASSET SALES, AND CERTAIN MERGERS AND CONSOLIDATIONS.

UNDER THE TERMS OF THE AGREEMENTS OF LONG-TERM CREDITS ENTERED INTO BY A SUBSIDIARY OF THE COMPANY WITH TWO MEXICAN BANKS FOR AN AMOUNT PAYABLE OF $1,651 MILLION AS OF SEPTEMBER 30, 2014 AND MATURITIES BETWEEN 2014 AND 2019, THIS SUBSIDIARY IS REQUIRED TO COMPLY WITH CERTAIN FINANCIAL RATIOS AND SOME RESTRICTIVE COVENANTS.



COMPLIANCE WITH FINANCIAL RESTRICTIONS

AT SEPTEMBER 30, 2014, THE GROUP WAS IN COMPLIANCE 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
MAIN PRODUCTS
NET SALES
MARKET SHARE (%)
MAIN
VOLUME
AMOUNT
TRADEMARKS
CUSTOMERS
DOMESTIC SALES
INTERSEGMENT ELIMINATIONS
 
(1,021,183)
     
           
CONTENT:
         
ADVERTISING
 
16,510,307
   
GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V.
         
HAVAS MEDIA, S.A. DE C.V.
         
UNILEVER DE MÉXICO, S. DE R.L. DE C.V.
         
KIMBERLY CLARK DE MÉXICO, S.A.B. DE C.V.
         
COMERCIALIZADORA PEPSICO MÉXICO, S. DE R.L. 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
         
PEGASO PCS S.A. DE C.V.
         
MARCAS NESTLÉ, S.A. DE C.V.
NETWORK SUBSCRIPTION REVENUE
 
1,494,073
   
MEGA CABLE, S.A. DE C.V.
         
CABLEVISIÓN RED, S.A. DE C.V.
LICENSING AND SYNDICATIONS
 
555,138
   
VARIOUS
           
SKY :
         
DTH BROADCAST SATELLITE
 
11,754,470
 
SKY
SUBSCRIBERS
PAY PER VIEW
 
148,872
     
CHANNEL COMMERCIALIZATION
 
274,025
   
COMPAÑÍA INTERNACIONAL DE RADIO Y TELEVISIÓN, S.A.
         
WDC MÉXICO S. DE R.L. DE C.V.
           
TELECOMMUNICATIONS:
         
DIGITAL SERVICE
 
6,279,336
 
CABLEVISIÓN, CABLEMÁS, TVI Y
SUBSCRIBERS
INTERNET SERVICES
 
3,518,131
 
CABLECOM
 
SERVICE INSTALLATION
 
92,040
     
PAY PER VIEW
 
27,258
     
CHANNEL COMMERCIALIZATION
 
341,486
   
MULTILMEDIOS S.A. DE C.V.
         
TENEDORA DE CINES, S.A. DE C.V.
         
TELEVISORA FRONTERIZA, S.A. DE C.V.
         
CANAL DE NOTICIAS DE ROSARITO, S.A. DE C.V.
TELEPHONY
 
1,872,629
     
TELECOMMUNICATIONS
 
2,047,830
 
BESTEL Y CABLECOM
SUBSCRIBERS
OTHER
 
175,692
     
           
OTHER BUSINESSES:
         
PUBLISHING:
         
MAGAZINE CIRCULATION
19,960
408,517
 
TV Y NOVELAS MAGAZINE,
GENERAL PUBLIC (AUDIENCE)
       
MEN´S HEALTH MAGAZINE,
DEALERS
       
VANIDADES MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
COSMOPOLITAN MAGAZINE
 
       
NATIONAL GEOGRAPHIC MAGAZINE
 
       
OK MAGAZINE
 
       
TÚ MAGAZINE
 
       
SKY VIEW MAGAZINE
 
       
MUY INTERESANTE MAGAZINE
 
       
COCINA FÁCIL MAGAZINE
 
ADVERTISING
 
464,597
   
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.
         
COMPAÑÍA PROCTER & GAMBLE DE MÉXICO, S. DE R.L DE C.V.
         
UNILEVER DE MÉXICO, S. DE R.L. DE C.V.
         
PARFUMERIE VERSAILLES, S.A. DE C.V.
         
COLGATE PALMOLIVE, S.A. DE C.V.
         
ORIONTWORLDWIDE, S.A. DE C.V.
OTHER INCOME
 
12,830
   
VARIOUS
           
DISTRIBUTION, RENTALS, AND SALE
         
OF MOVIE RIGHTS
 
231,589
   
CINE VIDEO Y TV, S.A. DE C.V.
         
OPERADORA DE CINEMAS, S.A. DE C.V.
         
CINEMARK DE MÉXICO, S.A. C.V.
         
TENEDORA DE CINES, S.A. DE C.V.
         
EN PANTALLA PRODUCCIONES INTERNACIONALES, S.A. DE C.V.
SPECIAL EVENTS AND SHOW PROMOTION
 
793,453
 
CLUB DE FÚTBOL AMÉRICA
GENERAL PUBLIC (AUDIENCE)
       
IMPULSORA DEL DEPORTIVO NECAXA
FEDERACIÓN MEXICANA DE FÚTBOL ASOCIACIÓN, A.C.
       
ESTADIO AZTECA
AFICIÓN FUTBOL, S.A. DE C.V.
GAMING
 
1,617,821
 
PLAY CITY
GENERAL PUBLIC (AUDIENCE)
       
MULTIJUEGOS
 
ADVERTISED TIME SOLD IN RADIO
 
505,910
   
HAVAS MEDIA, S.A DE C.V.
         
TIENDAS SORIANA, S.A. DE C.V.
         
OPTIMUM MEDIA DIRECTION DE MÉXICO, S.A. DE C.V.
         
ARENA COMMUNICATIONS, S.A. DE C.V.
         
TIENDAS CHEDRAUI, S.A. DE C.V.
         
IPG MEDIA BRANDS COMMUNICATIONS, S.A. DE C.V.
         
TIENDAS COMERCIAL MEXICANA, S.A. DE C.V.
PUBLISHING DISTRIBUTION
6,734
151,132
 
HOLA MÉXICO MAGAZINE
VARIOUS
       
ENTREPRENEUR MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
MINIREVISTA MINA MAGAZINE
DEALERS
       
MONSTER HIGH MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
BRAVO POR TI MAGAZINE
 
       
SELECCIONES MAGAZINE
 
           
EXPORT SALES
CONTENT:
         
ADVERTISING
 
200,126
   
CC MEDIOS Y COMUNICACIONES, C.A.
NETWORK SUBSCRIPTION REVENUE
 
584,580
   
INTERESES EN EL ITSMO, S.A.
         
DIRECTV ARGENTINA SOCIEDAD ANÓNIMA
         
GALAXY ENTERTAINMENT DE VZLA, C.A. DIRECTV
           
LICENSING AND SYNDICATIONS
 
4,272,741
 
TELEVISA
NETFLIX, INC
       
TELEVISA
CORPORACIÓN VENEZOLANA DE TELEVISIÓN, C.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
 
106,490
 
CLUB AMÉRICA
 
DISTRIBUTION, RENTALS, AND SALE
         
OF MOVIE RIGHTS
 
52,558
   
NETFLIX, INC
           
SUBSIDIARIES SALES ABROAD
CONTENT:
         
ADVERTISING
 
122,226
   
INITIATIVE MEDIA, INC.
         
OPTIMUM MEDIA DIRECTION, INC.
         
GROUP M MATRIX
SKY:
         
DTH BROADCAST SATELLITE
 
831,785
 
SKY
SUBSCRIBERS
TELECOMMUNICATIONS:
         
TELECOMMUNICATIONS
 
355,046
 
BESTEL
SUBSCRIBERS
           
OTHER BUSINESS:
         
PUBLISHING:
         
MAGAZINE CIRCULATION
29,621
495,849
 
T.V. Y NOVELAS MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
GENTE MAGAZINE
DEALERS
       
PAPARAZZI MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
VANIDADES MAGAZINE
 
       
COSMOPOLITAN MAGAZINE
 
       
TÚ MAGAZINE
 
       
MUY INTERESANTE  MAGAZINE
 
       
BILINKEN MAGAZINE
 
       
PARA TI MAGAZINE
 
       
CONDORITO MAGAZINE
 
ADVERTISING
 
604,210
   
MCCANN ERICKSON N.Y.
         
ESPACIOS, S.A.
         
R.C.N. TELEVISIÓN S.A.
         
MEDIACOM MIAMI
PUBLISHING DISTRIBUTION:
4,347
82,777
 
SELECCIONES MAGAZINE
GENERAL PUBLIC (AUDIENCE)
       
MAGALY TV MAGAZINE
DEALERS
       
VOGUE MAGAZINE
COMMERCIAL CENTERS (MALLS)
       
HOLA MAGAZINE
 
       
EL CUERPO HUMANO MAGAZINE
 
       
HELLO KITTY MAGAZINE
 
       
15 MINUTOS MAGAZINE
 
       
TEJER FÁCIL MAGAZINE
 
RENTALS OF MOVIE FILMS
 
143,192
   
LIONS GATES FILMS, INC.
INTERSEGMENT ELIMINATIONS
 
(9,386)
     
           
TOTAL
60,662
56,098,147
     
 
 
 

 
 
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
115,104,292,641
0
115,104,292,641
0
848,428
0
B
0.00000
0
53,390,434,987
0
53,390,434,987
0
405,948
0
D
0.00000
0
84,939,270,166
0
84,939,270,166
0
620,017
0
L
0.00000
0
84,939,270,166
0
0
84,939,270,166
620,017
0
TOTAL
   
338,373,267,960
0
253,433,997,794
84,939,270,166
2,494,410
0
 
TOTAL NUMBER OF SHARES REPRESENTING THE PAID CAPITAL STOCK ON THE DATE OF THE INFORMATION :
338,373,267,960
 
 
 
NOTES:
 
THE NUMBER OF OUTSTANDING SHARES PRESENTED IN THE TABLE ABOVE PLUS THE SHARES REPURCHASED REPRESENT THE TOTAL NUMBER OF SHARES ISSUED. SEE NOTE 5 TO CONSOLIDATED FINANCIAL STATEMENTS.
 

 
 
FINANCIAL STATEMENT NOTES
CONSOLIDATED
  Final Printing
 
 
11060060: AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, INCLUDES TRANSMISSION RIGHTS AND PROGRAMMING FOR PS.5,523,462 AND PS.4,970,603, RESPECTIVELY.

12080050: AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013, INCLUDES TRANSMISSION RIGHTS AND PROGRAMMING FOR PS.8,736,456 AND PS.9,064,845, RESPECTIVELY.

91000010: AT SEPTEMBER 30, 2014 DOESN´T INCLUDE TAX LIABILITIES IN FOREIGN CURRENCY FOR PS.59,457 (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 Finance and Risk area 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 third quarter of 2014, 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 September 30th, 2014, 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 the form agreement recommended by Banco de México. 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 July to September 2014, 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.
 
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, three “Knock-out Option Call” agreements through which Televisa hedged against severe Mexican Peso depreciation for a notional amount of U.S.$52,500,000.00 (Fifty Two Million Five Hundred Thousand Dollars 00/100) by paying premiums, expired. These options were entered in December 2011, and expired with Televisa not exercising them in July and September 2014.
 
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, Corporación Novavisión, S. de R.L. de C.V. 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
September 30, 2014
(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
 
 
Previous Quarter (5)
 
 
Current Quarter D(H) (4)
 
 
Previous Quarter D(H) (5)
 
Maturing per Year
 
Interest Rate Swap (2)
Hedging
Ps. 1,400,000
TIIE 28 days + 24bps / 8.415%
 
TIIE 28 days + 24bps / 8.415%
 
(93,890)
 
(115,652)
 
Monthly interest
2014-2016
Does not exist (6)
Interest Rate Swap (1)
Hedging
Ps. 2,500,000
TIIE 28 days / 7.4325%
 
TIIE 28 days / 7.4325%
 
(190,117)
 
(230,915)
 
Monthly interest
2014-2018
Does not exist (6)
Interest Rate Swap (1)
Hedging
Ps. 3,000,000
TIIE 28 days / 6.0833%
 
TIIE 28 days / 6.0833%
 
(40,592)
 
(105,815)
 
Monthly interest
2014-2021
Does not exist (6)
FX Options (1)
Hedging
USD 150,000
USD 150,000
 
USD 202,500
 
669
 
1,422
 
2014-2015
Does not exist (6)
Interest Rate Swap (3)
Hedging
Ps.1,550,547
TIIE 28 days   /  5.074%
 
TIIE 28 days   /  5.084%
 
(13,900)
 
(25,272)
 
Monthly Interest
2014-2019
Does not exist (6)
Forward (3)
Hedging
USD 6,000
   / Ps.78,455
USD 6,000
   / Ps.78,455
 
USD 6,000
   / Ps.77,344
 
2,286
 
757
 
2014
Does not exist (6)
         
(335,544)
 
(475,475)
 
   
 
(1)
Acquired by Grupo Televisa, S.A.B.
(2)
Acquired by Corporación Novavisión, S. de R.L. de C.V.
(3)
Acquired by Televisión Internacional, S.A. de C.V.
(4)
The aggregate amount of the derivatives reflected in the consolidated statement of financial position of Grupo Televisa, S.A.B. as September 30, 2014, included in the relevant SIFIC, is as follows:
 
  11060020  
FINANCIAL DERIVATIVE INSTRUMENTS
  Ps. 2,538  
  12080010  
FINANCIAL DERIVATIVE INSTRUMENTS
    417  
  22050010  
FINANCIAL DERIVATIVE INSTRUMENTS
    (338,499 )
          Ps. (335,544
  The financial derivatives shown in the above table are those whose aggregate value could represent 5% of the consolidated assets, liabilities or capital, or 3% of the consolidated sales, of Grupo Televisa, S.A.B., for the most recent quarter. 
(5)
Information for the second quarter of 2014.
(6)
Applies only to implicit financing in the ISDA ancillary agreements identified as “Credit Support Annex”.
 
 
 

 
 
 
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 THIRD QUARTER OF 2014, 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., OCTOBER 23, 2014
 
 
 

 
 
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: October 28, 2014
By:
/s/  Joaquín Balcárcel Santa Cruz
 
Name:
Joaquín Balcárcel Santa Cruz
 
Title:
General Counsel