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 May, 2006
GRUPO TELEVISA, S.A.
-------------------------------------------------
(Translation of registrant's name into English)
Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico, D.F.
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(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
------- -------
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes No X
----- -----
(If "Yes" is marked indicate below the file number assigned to the
registrant in connection with Rule 12g-3-2(b): 82 .)
MEXICAN STOCK EXCHANGE
STOCK EXCHANGE CODE: TLEVISA QUARTER: 4 YEAR: 2005
GRUPO TELEVISA, S.A.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2005 AND 2004
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
--------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
----------------- -----------------
S AMOUNT % AMOUNT %
--------------------------------------------------------------------------------------------------
s01 TOTAL ASSETS 74,851,737 100 76,384,651 100
s02 CURRENT ASSETS 33,581,713 45 35,222,923 46
s03 CASH AND SHORT-TERM INVESTMENTS 14,777,954 20 17,195,947 23
s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 13,896,300 19 11,604,240 15
s05 OTHER ACCOUNTS AND NOTES RECEIVABLE (NET) 570,610 1 1,289,554 2
s06 INVENTORIES 3,758,781 5 4,398,532 6
s07 OTHER CURRENT ASSETS 578,068 1 734,650 1
s08 LONG-TERM ASSETS 7,587,509 10 6,982,937 9
s09 ACCOUNTS AND NOTES RECEIVABLE (NET) - - - -
s10 INVESTMENT IN SHARES OF NON-CONSOLIDATED 6,520,807 9 6,770,344 9
SUBSIDIARIES AND ASSOCIATES
s11 OTHER INVESTMENTS 1,066,702 1 212,593 0
s12 PROPERTY, PLANT AND EQUIPMENT (NET) 19,728,547 26 19,798,098 26
s13 LAND AND BUILDINGS 13,368,018 18 13,355,380 17
s14 MACHINERY AND INDUSTRIAL EQUIPMENT 19,606,642 26 19,524,804 26
s15 OTHER EQUIPMENT 3,019,677 4 3,258,148 4
s16 ACCUMULATED DEPRECIATION 17,174,543 23 16,993,039 22
s17 CONSTRUCTION IN PROGRESS 908,753 1 652,805 1
s18 INTANGIBLE ASSETS AND DEFERRED CHARGES (NET) 10,013,273 13 9,461,758 12
s19 OTHER ASSETS 3,940,695 5 4,918,935 6
s20 TOTAL LIABILITIES 44,987,813 100 47,860,663 100
s21 CURRENT LIABILITIES 6,798,020 15 9,074,654 19
s22 SUPPLIERS 2,954,723 7 2,206,412 5
s23 BANK LOANS 246,136 1 89,051 0
s24 STOCK MARKET LOANS 94,321 0 3,317,922 7
s25 TAXES PAYABLE 1,055,793 2 1,610,711 3
s26 OTHER CURRENT LIABILITIES 2,447,047 5 1,850,558 4
s27 LONG-TERM LIABILITIES 19,785,547 44 21,555,633 45
s28 BANK LOANS 3,679,782 8 5,178,416 11
s29 STOCK MARKET LOANS 14,457,458 32 14,396,723 30
s30 OTHER LOANS 1,648,307 4 1,980,494 4
s31 DEFERRED LIABILITIES 18,046,429 40 15,813,221 33
s32 OTHER NON CURRENT LIABILITIES 357,817 1 1,417,155 3
s33 CONSOLIDATED STOCKHOLDERS' EQUITY 29,863,924 100 28,523,988 100
s34 MINORITY INTEREST 850,872 3 (124,562) (0)
s35 MAJORITY INTEREST 29,013,052 97 28,648,550 100
s36 CONTRIBUTED CAPITAL 14,101,905 47 14,101,905 49
s79 CAPITAL STOCK 9,889,463 33 9,889,463 35
s39 PREMIUM ON SALES OF SHARES 4,212,442 14 4,212,442 15
s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES - 0 - 0
s41 EARNED CAPITAL 14,911,147 50 14,546,645 51
s42 RETAINED EARNINGS AND CAPITAL RESERVE 27,806,439 93 25,986,686 91
s44 ACCUMULATED OTHER COMPREHENSIVE RESULT (5,850,146) (20) (4,935,592) (17)
s80 SHARES REPURCHASED (7,045,146) (24) (6,504,449) (23)
CONSOLIDATED BALANCE SHEETS
BREAKDOWN OF MAJOR CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
S AMOUNT % AMOUNT %
----------------------------------------------------------------------------------------------------------------
s03 CASH AND SHORT-TERM INVESTMENTS 14,777,954 100 17,195,947 100
s46 CASH 544,582 4 403,540 2
s47 SHORT-TERM INVESTMENTS 14,233,372 96 16,792,407 98
s07 OTHER CURRENT ASSETS 578,068 100 734,650 100
s81 DERIVATIVE FINANCIAL INSTRUMENTS - - - -
s82 DISCONTINUED OPERATIONS - - - -
s83 OTHER 578,068 100 734,650 100
s18 INTANGIBLE ASSETS AND DEFERRED CHARGES (NET) 10,013,273 100 9,461,758 100
s48 DEFERRED EXPENSES (NET) 2,813,255 28 1,690,141 18
s49 GOODWILL 7,200,018 72 7,771,617 82
s51 OTHER - - - -
s19 OTHER ASSETS 3,940,695 100 4,918,935 100
s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS - - - -
s85 DERIVATIVE FINANCIAL INSTRUMENTS - - - -
s50 DEFERRED TAXES - - - -
s86 DISCONTINUED OPERATIONS - - - -
s87 OTHER 3,940,695 100 4,918,935 100
s21 CURRENT LIABILITIES 6,798,020 100 9,074,654 100
s52 FOREIGN CURRENCY LIABILITIES 2,170,898 32 5,316,117 59
s53 MEXICAN PESOS LIABILITIES 4,627,122 68 3,758,537 41
s26 OTHER CURRENT LIABILITIES 2,447,047 100 1,850,558 100
s88 DERIVATIVE FINANCIAL INSTRUMENTS 305,877 12 45,248 2
s89 ACCRUED INTEREST 334,609 14 464,352 25
s68 PROVISIONS - - - -
s90 DISCONTINUED OPERATIONS - - - -
s58 OTHER 1,806,561 74 1,340,958 72
s27 LONG-TERM LIABILITIES 19,785,547 100 21,555,633 100
s59 FOREIGN CURRENCY LIABILITIES 15,078,249 76 12,377,842 57
s60 MEXICAN PESOS LIABILITIES 4,707,298 24 9,177,791 43
s31 DEFERRED LIABILITIES 18,046,429 100 15,813,221 100
s65 NEGATIVE GOODWILL - - - -
s67 OTHER 18,046,429 100 15,813,221 100
s32 OTHER NON CURRENT LIABILITIES 357,817 100 1,417,155 100
s66 DEFERRED TAXES 165,657 46 1,417,155 100
s91 LABOR OBLIGATIONS 192,160 54 - -
s92 DISCONTINUED OPERATIONS - - - -
s69 OTHER LIABILITIES - - - -
s79 CAPITAL STOCK 9,889,463 100 9,889,463 100
s37 CAPITAL STOCK (NOMINAL) 2,524,174 26 2,524,174 26
s38 RESTATEMENT OF CAPITAL STOCK 7,365,289 74 7,365,289 74
s42 RETAINED EARNINGS AND CAPITAL RESERVE 27,806,439 100 25,986,686 100
s93 LEGAL RESERVE 1,798,387 6 1,575,357 6
s43 RESERVE FOR REPURCHASE OF SHARES 5,744,583 21 5,744,583 22
s94 OTHER RESERVES - - - -
s95 RETAINED EARNINGS 14,137,927 51 14,206,139 55
s45 NET INCOME 6,125,542 22 4,460,607 17
s44 ACCUMULATED OTHER COMPREHENSIVE RESULT (5,850,146) 100 (4,935,592) 100
s70 ACCUMULATED MONETARY RESULT (32,591) 1 (32,591) 1
s71 RESULT FROM HOLDING NON-MONETARY ASSETS (2,402,181) 41 (1,870,832) 38
s96 CUMULATIVE RESULT FROM FOREING CURRENCY TRANSLATION (1,989,943) 34 (1,811,772) 37
s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS - - - -
s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES (2,986,569) 51 (2,986,569) 61
s99 LABOR OBLIGATIONS ADJUSTMENT - - - -
s100 OTHER 1,561,138 (27) 1,766,172 (36)
CONSOLIDATED FINANCIAL STATEMENTS
OTHER CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
S AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------
s72 WORKING CAPITAL 26,783,693 26,148,269
s73 PENSIONS AND SENIORITY PREMIUMS 1,306,383 1,180,543
s74 EXECUTIVES (*) 34 36
s75 EMPLOYEES (*) 15,042 14,104
s76 WORKERS (*) - -
s77 OUTSTANDING SHARES (*) 339,940,931,070 341,637,582,351
s78 REPURCHASED SHARES (*) 29,332,439,331 27,635,788,050
s101 RESTRICTED CASH 133,194 156,615
s102 NET DEBT OF NON CONSOLIDATED COMPANIES 15,907,610 13,713,778
(*) THESE CONCEPTS ARE STATED IN UNITS
CONSOLIDATED STATEMENTS OF INCOME
FROM JANUARY 1 THROUGH DECEMBER 31, 2005 AND 2004
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
R AMOUNT % AMOUNT %
----------------------------------------------------------------------------------------------------------------
r01 NET SALES 32,481,041 100 30,291,209 100
r02 COST OF SALES 16,733,605 52 16,970,868 56
r03 GROSS PROFIT 15,747,436 48 13,320,341 44
r04 OPERATING EXPENSES 4,944,649 15 4,477,298 15
r05 OPERATING INCOME 10,802,787 33 8,843,043 29
r06 INTEGRAL FINANCING COST 1,782,030 5 1,566,687 5
r07 INCOME AFTER INTEGRAL FINANCING COST 9,020,757 28 7,276,356 24
r08 OTHER EXPENSE AND INCOME, NET 464,220 1 532,160 2
r44 NON-RECURRING CHARGES 229,902 1 408,423 1
r09 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT
SHARING 8,326,635 26 6,335,773 21
r10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT
SHARING 771,150 2 1,215,545 4
r11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT
SHARING 7,555,485 23 5,120,228 17
r12 SHARE IN NET INCOME OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES 160,158 0 635,490 2
r13 CONSOLIDATED NET INCOME OF CONTINUING
OPERATIONS 7,715,643 24 5,755,718 19
r14 INCOME FROM DISCONTINUED OPERATIONS - 0 - 0
r15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
ITEMS 7,715,643 24 5,755,718 19
r16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) - 0 - 0
r17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 506,080 2 1,055,636 3
r18 NET CONSOLIDATED INCOME 7,209,563 22 4,700,082 16
r19 NET INCOME OF MINORITY INTEREST 1,084,021 3 239,475 1
r20 NET INCOME OF MAJORITY INTEREST 6,125,542 19 4,460,607 15
CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
R AMOUNT % AMOUNT %
----------------------------------------------------------------------------------------------------------------
r01 NET SALES 32,481,041 100 30,291,209 100
r21 DOMESTIC 28,717,614 88 25,629,888 85
r22 FOREIGN 3,763,427 12 4,661,321 15
r23 TRANSLATED INTO DOLLARS (***) 354,155 1 404,609 1
r06 INTEGRAL FINANCING COST 1,782,030 100 1,566,687 100
r24 INTEREST EXPENSE 2,102,724 118 1,987,372 127
r42 LOSS (GAIN) ON RESTATEMENT OF UDI'S 31,775 2 177,845 11
r45 OTHER FINANCIAL COSTS - 0 - 0
r26 INTEREST INCOME 932,124 52 678,391 43
r46 OTHER FINANCIAL PRODUCTS - 0 - 0
r25 FOREIGN EXCHANGE LOSS (GAIN), NET 727,547 41 95,179 6
r28 RESULT FROM MONETARY POSITION (147,892) (8) (15,318) (1)
r10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING 771,150 100 1,215,545 100
r32 INCOME TAX AND ASSET TAX, CURRENT 1,539,020 200 578,701 48
r33 INCOME TAX AND ASSET TAX, DEFERRED (787,777) (102) 630,108 52
r34 EMPLOYEES' PROFIT SHARING, CURRENT 19,907 3 6,736 1
r35 EMPLOYEES' PROFIT SHARING, DEFERRED - 0 - 0
(***) THOUSANDS OF DOLLARS
CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
R AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------
r36 TOTAL SALES 34,999,429 32,213,056
r37 TAX RESULT FOR THE YEAR 4,340,668 215,098
r38 NET SALES (**) 32,481,041 30,291,209
r39 OPERATING INCOME (**) 10,802,787 8,843,043
r40 NET INCOME OF MAJORITY INTEREST (**) 6,125,542 4,460,607
r41 NET CONSOLIDATED INCOME (**) 7,209,563 4,700,082
r47 DEPRECIATION AND AMORTIZATION 2,418,969 2,144,158
(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
FROM OCTOBER 1 THROUGH DECEMBER 31, 2005 AND 2004
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
RT AMOUNT % AMOUNT %
----------------------------------------------------------------------------------------------------------------
rt01 NET SALES 9,651,895 100 8,694,517 100
rt02 COST OF SALES 4,755,657 49 4,529,164 52
rt03 GROSS PROFIT 4,896,238 51 4,165,353 48
rt04 OPERATING EXPENSES 1,399,630 15 1,229,574 14
rt05 OPERATING INCOME 3,496,608 36 2,935,779 34
rt06 INTEGRAL FINANCING COST 318,142 3 468,277 5
rt07 INCOME AFTER INTEGRAL FINANCING COST 3,178,466 33 2,467,502 28
rt08 OTHER EXPENSE AND INCOME, NET 96,414 1 74,467 1
rt44 NON-RECURRING CHARGES 21,823 0 (11,099) (0)
rt09 INCOME BEFORE TAXES AND EMPLOYEES' PROFIT
SHARING 3,060,229 32 2,404,134 28
rt10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT
SHARING (444,791) (5) 384,619 4
rt11 NET INCOME AFTER TAXES AND EMPLOYEES' PROFIT
SHARING 3,505,020 36 2,019,515 23
rt12 SHARE IN NET INCOME OF NON-CONSOLIDATED
SUBSIDIARIES AND ASSOCIATES (17,103) (0) 53,071 1
rt13 CONSOLIDATED NET INCOME OF CONTINUING
OPERATIONS 3,487,917 36 2,072,586 24
rt14 INCOME FROM DISCONTINUED OPERATIONS - 0 - 0
rt15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
ITEMS 3,487,917 36 2,072,586 24
rt16 EXTRAORDINARY ITEMS, NET EXPENSE (INCOME) - 0 - 0
rt17 CUMULATIVE EFFECT FROM ACCOUNTING CHANGE, NET 323,698 3 (5,317) (0)
rt18 NET CONSOLIDATED INCOME 3,164,219 33 2,077,903 24
rt19 NET INCOME OF MINORITY INTEREST 647,191 7 179,230 2
rt20 NET INCOME OF MAJORITY INTEREST 2,517,028 26 1,898,673 22
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
RT AMOUNT % AMOUNT %
----------------------------------------------------------------------------------------------------------------
rt01 NET SALES 9,651,895 100 8,694,517 100
rt21 DOMESTIC 8,618,849 89 7,712,852 89
rt22 FOREIGN 1,033,046 11 981,665 11
rt23 TRANSLATED INTO DOLLARS (***) 104,483 1 97,541 1
rt06 INTEGRAL FINANCING COST 318,142 100 468,277 100
rt24 INTEREST EXPENSE 521,776 164 648,324 138
rt42 LOSS (GAIN) ON RESTATEMENT OF UDI'S 13,207 4 63,763 14
rt45 OTHER FINANCIAL COSTS - 0 - 0
rt26 INTEREST INCOME 192,702 61 191,011 41
rt46 OTHER FINANCIAL PRODUCTS - 0 - 0
rt25 FOREIGN EXCHANGE LOSS (GAIN), NET 136,593 43 74,122 16
rt28 RESULT FROM MONETARY POSITION (160,732) (51) (126,921) (27)
rt10 PROVISION FOR TAXES AND EMPLOYEES' PROFIT SHARING (444,791) 100 384,619 100
rt32 INCOME TAX AND ASSET TAX, CURRENT 490,294 (110) 159,554 41
rt33 INCOME TAX AND ASSET TAX, DEFERRED (950,324) 214 222,623 58
rt34 EMPLOYEES' PROFIT SHARING, CURRENT 15,239 (3) 2,442 1
rt35 EMPLOYEES' PROFIT SHARING, DEFERRED - 0 - 0
(***) THOUSANDS OF DOLLARS
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
OTHER CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
RT AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------
rt47 DEPRECIATION AND AMORTIZATION 671,452 572,525
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FROM JANUARY 1 THROUGH DECEMBER 31, 2005 AND 2004
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
C AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------
c01 CONSOLIDATED NET INCOME 7,209,563 4,700,082
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE
USING RESOURCES 2,245,922 3,604,777
c03 RESOURCES FROM NET INCOME FOR THE YEAR 9,455,485 8,304,859
c04 RESOURCES PROVIDED OR USED IN OPERATION 1,841,501 (283,363)
c05 RESOURCES PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 11,296,986 8,021,496
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL
FINANCING ACTIVITIES (4,680,118) 1,839,522
c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL
FINANCING ACTIVITIES (5,185,654) (4,239,472)
c08 RESOURCES PROVIDED BY (USED FOR) FINANCING
ACTIVITIES (9,865,772) (2,399,950)
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES (3,849,207) (2,239,075)
c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
INVESTMENTS (2,417,993) 3,382,471
c11 CASH AND SHORT-TERM INVESTMENTS AT THE
BEGINNING OF PERIOD 17,195,947 13,813,476
c12 CASH AND SHORT-TERM INVESTMENTS AT THE END
OF PERIOD 14,777,954 17,195,947
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Mexican Pesos)
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
C AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------
c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE
USING RESOURCES 2,245,922 3,604,777
c13 + DEPRECIATION AND AMORTIZATION FOR THE YEAR 2,418,969 2,144,158
c41 + (-) OTHER ITEMS (173,047) 1,460,619
c04 RESOURCES PROVIDED OR USED IN OPERATION 1,841,501 (283,363)
c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (2,292,060) 71,630
c19 + (-) DECREASE (INCREASE) IN INVENTORIES 1,023,355 210,173
c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS
RECEIVABLE AND OTHER ASSETS 796,565 (381,964)
c21 + (-) INCREASE (DECREASE) IN SUPPLIERS 748,311 (625,630)
c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 1,565,330 442,428
c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL
FINANCING ACTIVITIES (4,680,118) 1,839,522
c23 + BANK FINANCING - -
c24 + STOCK MARKET FINANCING 6,375,900 4,313,582
c25 + DIVIDEND RECEIVED - -
c26 + OTHER FINANCING - -
c27 (-) BANK FINANCING AMORTIZATION (1,171,662) (1,432,210)
c28 (-) STOCK MARKET FINANCING AMORTIZATION (8,651,139) -
c29 (-) OTHER FINANCING AMORTIZATION (132,821) (52,934)
c42 + (-) OTHER ITEMS (1,100,396) (988,916)
c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL
FINANCING ACTIVITIES (5,185,654) (4,239,472)
c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK - -
c31 (-) DIVIDENDS PAID (4,305,789) (4,114,064)
c32 + PREMIUM ON SALE OF SHARES - -
c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES - -
c43 + (-) OTHER ITEMS (879,865) (125,408)
c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES (3,849,207) (2,239,075)
c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS (1,096,346) (209,665)
c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (2,738,095) (2,094,532)
c36 (-) INCREASE IN CONSTRUCTION IN PROGRESS - -
c37 + (-) SALE OF OTHER PERMANENT INVESTMENTS - -
c38 + SALE OF TANGIBLE FIXED ASSETS 317,008 153,494
c39 + (-) OTHER ITEMS (331,774) (88,372)
RATIOS
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
P
----------------------------------------------------------------------------------------------------------
YIELD
p01 NET INCOME TO NET SALES 22.19 % 15.51 %
p02 NET INCOME TO STOCKHOLDERS' EQUITY (**) 21.11 % 15.57 %
p03 NET INCOME TO TOTAL ASSETS (**) 9.63 % 6.15 %
p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 96.53 % 0.00 %
p05 RESULT FROM MONETARY POSITION TO NET INCOME 2.05 % 0.32 %
ACTIVITY
p06 NET SALES TO NET ASSETS (**) 0.43 times 0.39 times
p07 NET SALES TO FIXED ASSETS (**) 1.64 times 1.53 times
p08 INVENTORIES TURNOVER (**) 4.45 times 3.85 times
p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 133.92 days 119.92 days
p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 10.65 % 8.14 %
LEVERAGE
p11 TOTAL LIABILITIES TO TOTAL ASSETS 60.10 % 62.65 %
p12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 1.50 times 1.67 times
p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 38.34 % 36.96 %
p14 LONG-TERM LIABILITIES TO FIXED ASSETS 100.28 % 108.87 %
p15 OPERATING INCOME TO INTEREST PAID 5.13 times 4.44 times
p16 NET SALES TO TOTAL LIABILITIES (**) 0.72 times 0.63 times
LIQUIDITY
p17 CURRENT ASSETS TO CURRENT LIABILITIES 4.93 times 3.88 times
p18 CURRENT ASSETS LESS INVENTORY TO CURRENT
LIABILITIES 4.38 times 3.39 times
p19 CURRENT ASSETS TO TOTAL LIABILITIES 0.74 times 0.73 times
p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 217.38 % 189.49 %
STATEMENTS OF CHANGES
p21 RESOURCES FROM NET INCOME TO NET SALES 29.11 % 27.41 %
p22 RESOURCES FROM CHANGES IN WORKING CAPITAL TO
NET SALES 5.66 % (0.93) %
p23 RESOURCES GENERATED (USED) IN OPERATING TO
INTEREST PAID 5.37 times 4.03 times
p24 EXTERNAL FINANCING TO RESOURCES PROVIDED BY
(USED FOR) FINANCING 47.43 % (76.64) %
p25 INTERNAL FINANCING TO RESOURCES PROVIDED BY
(USED FOR) FINANCING 52.56 % 176.64 %
p26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO
RESOURCES PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES 71.13 % 93.54 %
(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS.
DATA PER SHARE
CONSOLIDATED FINANCIAL STATEMENT
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
REF CONCEPTS CURRENT YEAR PREVIOUS YEAR
-------------------- ---------------------
D AMOUNT AMOUNT
----------------------------------------------------------------------------------------------------------
d01 BASIC PROFIT PER ORDINARY SHARE (**) $ .02 $ .01
d02 BASIC PROFIT PER PREFERRED SHARE (**) $ .00 $ .00
d03 DILUTED PROFIT PER ORDINARY SHARE (**) $ .00 $ .00
d04 CONTINUING OPERATING PROFIT PER COMMON SHARE (**) $ .02 $ .02
d05 EFFECT OF DISCONTINUED OPERATION ON CONTINUING
OPERATING PROFIT PER SHARE (**) $ .00 $ .00
d06 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
d07 EFFECT BY CHANGES IN ACCOUNTING POLICIES ON
CONTINUING OPERATING PROFIT PER SHARE (**) $ .00 $ .00
d08 CARRYING VALUE PER SHARE $ .09 $ .08
d09 CASH DIVIDEND ACCUMULATED PER SHARE $ .01 $ .42
d10 DIVIDEND IN SHARES PER SHARE .00 shares .10 shares
d11 MARKET PRICE TO CARRYING VALUE 4.28 times 3.43 times
d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) 20.34 times 22.26 times
d13 MARKET PRICE TO BASIC PROFIT PER PREFERRED SHARE (**) .00 times .00 times
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS.
FINANCIAL STATEMENT NOTES (1)
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
---------------------------------------------------------------------------
STATEMENT OF CHANGES - ANALYSIS OF MAJOR CONCEPTS
LINE C43: "OTHER ITEMS" INCLUDES PS.314,559 OF RESALE OF SHARES REPURCHASED
AND PS.(1,194,424) OF REPURCHASE OF SHARES.
THIS PRESENTATION WAS MADE AS DISCLOSED ABOVE DUE TO THE FACT THAT THE
CURRENT FORMAT FOR THE STATEMENT OF CHANGES IN FINANCIAL POSITION IS
RESTRICTED TO CERTAIN STANDARD CONCEPTS.
LINE S102: THESE AMOUNTS ARE RECOGNIZED AS OTHER INVESTMENTS (REF. S11).
----------------------
(1) THE REPORT CONTAINS THE NOTES CORRESPONDING TO THE FINANCIAL STATEMENT
AMOUNTS, INCLUDING THEIR BREAKDOWN OF MAIN CONCEPTS AND OTHER CONCEPTS.
ANALYSIS OF PAID CAPITAL STOCK
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK
NUMBER OF SHARES (THOUSANDS OF MEXICAN PESOS)
----------------------------------------------------------------- ------------------------------
NOMINAL VALID FIXED VARIABLE FREE
SERIES VALUE COUPON PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE
------------------------------------------------------------------------------------------------------------------------------
A 114,245,852,915 114,245,852,915 852,636
B 53,970,590,013 53,970,590,013 411,974
D 85,862,244,071 85,862,244,071 629,782
L 85,862,244,071 85,862,244,071 629,782
TOTAL 339,940,931,070 0 254,078,686,999 85,862,244,071 2,524,174 0
TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE THE INFORMATION WAS SENT: 339,940,931,070
NOTES:
GENERAL DATA OF ISSUER
============================================================================
COMPANY'S NAME: GRUPO TELEVISA, S.A.
ADDRESS: AV. VASCO DE QUIROGA # 2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-20-00
FAX: 5261-24-94
INTERNET ADDRESS: www.televisa.com.mx
TAX DATA OF THE ISSUER
============================================================================
COMPANY TAX CODE: GTE901219GK3
ADDRESS: AV. VASCO DE QUIROGA # 2000
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
EXECUTIVES DATA
============================================================================
BMV POSITION: CHAIRMAN OF THE BOARD
POSITION: CHAIRMAN OF THE BOARD
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC # 28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: GENERAL DIRECTOR
POSITION: PRESIDENT AND CHIEF EXECUTIVE OFFICER
NAME: SR. EMILIO FERNANDO AZCARRAGA JEAN
ADDRESS: AV. CHAPULTEPEC # 28 PISO 1
NEIGHBORHOOD: DOCTORES
ZIP CODE: 06724
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5709-42-89
FAX: 5709-39-88
E-MAIL: emilio@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: FINANCE DIRECTOR
POSITION: CHIEF FINANCIAL OFFICER
NAME: LIC. SALVI FOLCH VIADERO
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-80
FAX: 5261-20-39
E-MAIL: sfolch@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING CORPORATE INFORMATION
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL OF
GRUPO TELEVISA
NAME: LIC. JUAN SEBASTIAN MIJARES ORTEGA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-85
FAX: 5261-25-46
E-MAIL: jmijares@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING SHARE REPURCHASE
INFORMATION
POSITION: DIRECTOR FINANCIAL OFFICER
NAME: LIC. GUADALUPE PHILLIPS MARGAIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 3
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-21-35
FAX: 5261-25-24
E-MAIL: gphilips@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR LEGAL MATTERS
POSITION: VICE PRESIDENT - LEGAL AND GENERAL COUNSEL
NAME: LIC. JOAQUIN BALCARCEL SANTA CRUZ
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-33
FAX: 5261-25-46
E-MAIL: jbalcarcel@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING FINANCIAL INFORMATION
POSITION: DIRECTOR OF CORPORATE FINANCIAL INFORMATION
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR SENDING RELEVANT EVENTS
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE OF INFORMATION TO INVESTORS
POSITION: DIRECTOR OF INVESTOR RELATIONS
NAME: LIC. MICHEL BOYANCE BALDWIN
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 4
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-24-46
FAX: 5261-24-94
E-MAIL: mboyance@televisa.com.mx
----------------------------------------------------------------------------
BMV POSITION: SECRETARY OF THE BOARD OF DIRECTORS
POSITION: EXTERNAL GENERAL COUNSEL
NAME: LIC. RICARDO MALDONADO YANEZ
ADDRESS: MONTES URALES # 505, PISO 3
NEIGHBORHOOD: LOMAS DE CHAPULTEPEC
ZIP CODE: 11000
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5201-74-47
FAX: 5520-10-65
E-MAIL: rmaldonado@macf.com.mx
----------------------------------------------------------------------------
BMV POSITION: RESPONSIBLE FOR PAYMENT
POSITION: DIRECTOR OF CORPORATE FINANCIAL INFORMATION
NAME: C.P.C. JOSE RAUL GONZALEZ LIMA
ADDRESS: AV. VASCO DE QUIROGA # 2000 EDIFICIO A PISO 1
NEIGHBORHOOD: SANTA FE
ZIP CODE: 01210
CITY AND STATE: MEXICO, D.F.
TELEPHONE: 5261-25-77
FAX: 5261-20-43
E-MAIL: rglima@televisa.com.mx
BOARD OF DIRECTORS
============================================================================
POSITION: PRESIDENT
NAME: EMILIO FERNANDO AZCARRAGA JEAN
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: EMILIO FERNANDO AZCARRAGA JEAN
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOAQUIN BALCARCEL SANTA CRUZ
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ALFONSO DE ANGOITIA NORIEGA
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: SALVI RAFAEL FOLCH VIADERO
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: JULIO BARBA HURTADO
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JORGE LUTTEROTH ECHEGOYEN
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: JOSE ANTONIO BASTON PATINO
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: RAFAEL CARABIAS PRINCIPE
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: MANUEL J. CUTILLAS COVANI
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: SALVI RAFAEL FOLCH VIADERO
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: GILBERTO PEREZALONSO CIFUENTES
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: FRANCISCO JOSE CHEVEZ ROBELO
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: FERNANDO SENDEROS MESTRE
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JUAN FERNANDO CALVILLO ARMENDARIZ
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: BERNARDO GOMEZ MARTINEZ
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: LEOPOLDO GOMEZ GONZALEZ BLANCO
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: CLAUDIO X. GONZALEZ LAPORTE
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: GUILLERMO NAVA GOMEZ-TAGLE
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ENRIQUE KRAUZE KLEINBORT
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: MAXIMILIANO ARTEAGA CARLEBACH
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ALEJANDRO QUINTERO INIGUEZ
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: FELIX ARAUJO RAMIREZ
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: MARIA ASUNCION ARAMBURUZABALA LARREGUI
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JUAN PABLO ANDRADE FRICH
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: CARLOS FERNANDEZ GONZALEZ
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: LUCRECIA ARAMBURUZABALA LARREGUI
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: CARLOS SLIM DOMIT
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOSE HEREDIA BRETON
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: LORENZO H. ZAMBRANO TREVINO
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: ALEXANDRE MOREIRA PENNA DA SILVA
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: PEDRO ASPE ARMELLA
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOSE ANTONIO LARA DEL OLMO
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ALBERTO BAILLERES GONZALEZ
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: RAUL MORALES MEDRANO
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ROBERTO HERNANDEZ RAMIREZ
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: ALBERTO MONTIEL CASTELLANOS
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: GERMAN LARREA MOTA VELASCO
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: JOSE LUIS FERNANDEZ FERNANDEZ
----------------------------------------------------------------------------
POSITION: DIRECTOR
NAME: ENRIQUE FRANCISCO J. SENIOR HERNANDEZ
----------------------------------------------------------------------------
POSITION: ALTERNATE DIRECTOR
NAME: HERBERT ALLEN III
----------------------------------------------------------------------------
POSITION: STATUTORY AUDITOR
NAME: MARIO SALAZAR ERDMANN
----------------------------------------------------------------------------
POSITION: ALTERNATE STATUTORY AUDITOR
NAME: JOSE MIGUEL ARRIETA MENDEZ
----------------------------------------------------------------------------
DECLARATION OF THE REGISTRANT'S OFFICERS, RESPONSIBLE FOR THE INFORMATION.
WE HEREBY DECLARE THAT, TO THE EXTENT OF OUR FUNCTIONS, WE PREPARED THE
INFORMATION RELATED TO THE REGISTRANT CONTAINED IN THIS QUARTERLY REPORT,
AND BASED ON OUR KNOWLEDGE, THIS INFORMATION FAIRLY PRESENTS THE
REGISTRANT'S CONDITION. WE ALSO DECLARE THAT WE ARE NOT AWARE OF ANY
RELEVANT INFORMATION WHICH HAS BEEN OMITTED OR UNTRUE IN THIS QUARTERLY
REPORT, OR INFORMATION CONTAINED IN SUCH REPORT THAT MAY BE MISLEADING TO
INVESTORS.
------------------------------- ------------------------
EMILIO AZCARRAGA JEAN SALVI FOLCH VIADERO
PRESIDENT AND CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
OFFICER
MEXICO, D.F., MAY 2, 2006
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ANNEX 1
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
---------------------------------------------------------------------------
MEXICO CITY, D.F., MAY 3, 2006--GRUPO TELEVISA, S.A. (NYSE:TV; BMV: TLEVISA
CPO; "TELEVISA" OR "THE COMPANY") TODAY ANNOUNCED AUDITED RESULTS FOR THE
FOURTH QUARTER AND THE FULL YEAR 2005. THE RESULTS HAVE BEEN PREPARED IN
ACCORDANCE WITH MEXICAN GAAP AND ARE ADJUSTED IN MILLIONS OF MEXICAN PESOS
IN PURCHASING POWER AS OF DECEMBER 31, 2005.
EFFECTIVE OCTOBER 1, 2004, WE AMENDED CERTAIN AGREEMENTS IN OUR PUBLISHING
DISTRIBUTION SEGMENT AND CHANGED THE ACCOUNTING TREATMENT OF THE
RECOGNITION OF SALES AND COST OF GOODS SOLD. THIS CHANGE DOES NOT AFFECT
OUR OIBDA RESULTS. IN ADDITION, BEGINNING APRIL 1, 2004, WE BEGAN TO
INCLUDE THE CONSOLIDATED RESULTS OF SKY MEXICO IN OUR CONSOLIDATED
STATEMENTS OF INCOME. PRO-FORMA RESULTS GIVE EFFECT TO THESE EVENTS AS IF
THEY OCCURRED BEGINNING JANUARY 1, 2004.
NET SALES
PRO-FORMA NET SALES INCREASED 8% TO PS.32,481 MILLION IN 2005 COMPARED WITH
PS.30,080.3 MILLION IN 2004. THIS INCREASE WAS ATTRIBUTABLE TO REVENUE
GROWTH IN SKY MEXICO, TELEVISION BROADCASTING, PUBLISHING, PAY TELEVISION
NETWORKS, CABLE TELEVISION, RADIO, PUBLISHING DISTRIBUTION, AND OTHER
BUSINESSES, AND WAS PARTIALLY OFFSET BY LOWER SALES IN OUR PROGRAMMING
EXPORTS SEGMENT.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION ("OIBDA")
PRO-FORMA CONSOLIDATED OIBDA INCREASED 16% TO PS.13,221.8 MILLION IN 2005
COMPARED WITH PS.11,401.4 MILLION IN 2004. OIBDA MARGIN REACHED AN ALL-TIME
HIGH OF 40.7%, UP FROM A PRO-FORMA MARGIN OF 37.9% REPORTED LAST YEAR DUE
TO HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND
OPERATING EXPENSES. IN ADDITION, PRO-FORMA CONSOLIDATED OPERATING INCOME
ROSE 19.3% TO PS.10,802.8 MILLION IN 2005 COMPARED WITH PS.9,053.1 MILLION
IN 2004.
THE CHARGE FOR OPERATING DEPRECIATION AND AMORTIZATION WAS PS.2,419.0
MILLION IN 2005 AND PS.2,348.3 MILLION IN 2004.
NET INCOME
NET INCOME INCREASED 37.3% TO PS.6,125.5 MILLION IN 2005 COMPARED WITH
PS.4,460.6 MILLION IN 2004. THE NET INCREASE OF PS.1,664.9 MILLION
REFLECTED I) A PS.2,234.6 MILLION INCREASE IN OIBDA, II) A PS.178.5 MILLION
DECREASE IN RESTRUCTURING AND NON-RECURRING CHARGES, III) A PS.68 MILLION
DECREASE IN OTHER EXPENSE, NET, IV) A PS.444.3 MILLION DECREASE IN INCOME
TAXES, AND V) A PS.549.5 MILLION DECREASE IN CUMULATIVE LOSS EFFECT OF
ACCOUNTING CHANGE. THESE FAVORABLE CHANGES WERE PARTIALLY OFFSET BY I) A
PS.274.8 MILLION INCREASE IN DEPRECIATION AND AMORTIZATION, II) A PS.215.4
MILLION INCREASE IN INTEGRAL COST OF FINANCING, III) A PS.475.3 MILLION
DECREASE IN EQUITY INCOME OF AFFILIATES, AND IV) A PS.844.5 MILLION
INCREASE IN MINORITY INTEREST.
FOURTH-QUARTER RESULTS AND FULL-YEAR, PRO FORMA RESULTS BY BUSINESS SEGMENT
THE FOLLOWING INFORMATION PRESENTS FOURTH-QUARTER RESULTS ENDED DECEMBER
31, 2005 AND 2004 AND FULL-YEAR AND PRO-FORMA RESULTS ENDED DECEMBER 31,
2005 AND 2004, FOR EACH OF OUR BUSINESS SEGMENTS.
TELEVISION BROADCASTING
FOURTH-QUARTER SALES INCREASED 7.1% TO PS.5,844.6 MILLION COMPARED WITH
PS.5,459.0 MILLION IN 2004. FULL-YEAR SALES INCREASED 5.1% TO PS.18,570.8
MILLION COMPARED WITH PS.17,671.9 MILLION IN 2004. THE ANNUAL INCREASE WAS
ATTRIBUTABLE TO HIGHER ADVERTISING REVENUES, DRIVEN MAINLY BY OUR
TELENOVELAS AND REALITY SHOWS, AS WELL AS BY HIGHER LOCAL SALES.
FOURTH-QUARTER OIBDA INCREASED 13.4% TO PS.2,899.2 MILLION COMPARED WITH
PS.2,555.9 MILLION IN 2004, AND OIBDA MARGIN REACHED 49.6%. FULL-YEAR OIBDA
INCREASED 10.4% TO PS.8,852.6 MILLION COMPARED WITH PS.8,018.8 MILLION IN
2004, AND OIBDA MARGIN REACHED AN ALL-TIME HIGH OF 47.7%, REFLECTING HIGHER
SALES AND A MARGINAL INCREASE IN COST OF SALES AND OPERATING EXPENSES.
PAY TELEVISION NETWORKS
FOURTH-QUARTER SALES INCREASED 47.5% TO PS.322.7 MILLION COMPARED WITH
PS.218.8 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED
34.3% TO PS.1,111.2 MILLION COMPARED WITH PS.827.5 MILLION IN 2004. THE
ANNUAL INCREASE REFLECTS I) SALES OF PS.81 MILLION IN TUTV, OUR
PAY-TELEVISION JOINT VENTURE WITH UNIVISION; II) HIGHER REVENUES FROM
CHANNELS SOLD IN MEXICO AND LATIN AMERICA; AND III) HIGHER ADVERTISING
SALES.
FOURTH-QUARTER OIBDA ROSE 112.3% TO PS.172.4 MILLION COMPARED WITH PS.81.2
MILLION IN 2004, AND OIBDA MARGIN REACHED 53.4%. FULL-YEAR OIBDA INCREASED
67.9% TO PS.518.1 MILLION COMPARED WITH PS.308.5 MILLION IN 2004, AND OIBDA
MARGIN REACHED 46.6%. THESE RESULTS WERE DRIVEN BY HIGHER SALES, WHICH WERE
PARTIALLY OFFSET BY AN INCREASE IN COST OF SALES AND OPERATING EXPENSES.
TUTV CONTRIBUTED PS.33.8 MILLION TO OIBDA IN 2005.
PROGRAMMIN EXPORTS
FOURTH-QUARTER SALES DECREASED 3.1% TO PS.492.0 MILLION COMPARED WITH
PS.507.9 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES DECREASED
5.3% TO PS.1,875.9 MILLION COMPARED WITH PS.1,981.2 MILLION IN 2004. THE
ANNUAL DECREASE REFLECTS I) A NEGATIVE TRANSLATION EFFECT ON
FOREIGN-CURRENCY-DENOMINATED SALES, WHICH AMOUNTED TO PS.151.9 MILLION; AND
II) LOWER PROGRAMMING SALES IN EUROPE. THESE DECREASES WERE PARTIALLY
OFFSET BY I) A 4.6% INCREASE IN THE ROYALTIES PAID TO THE COMPANY UNDER THE
UNIVISION PROGRAM LICENSE AGREEMENT, WHICH AMOUNTED TO US$109.8 MILLION IN
2005 COMPARED WITH US$105 MILLION IN 2004; AND II) HIGHER PROGRAMMING SALES
TO ASIA AND AFRICA.
FOURTH-QUARTER OIBDA DECREASED 9.2% TO PS.185.7 MILLION COMPARED WITH
PS.204.6 MILLION IN 2004, AND OIBDA MARGIN CAME IN AT 37.7%. FULL-YEAR
OIBDA DECREASED 11.6% TO PS.668.7 MILLION COMPARED WITH PS.756.1 MILLION IN
2004, AND OIBDA MARGIN DECREASED TO 35.6% FROM 38.2% IN 2004 DUE TO LOWER
SALES AND HIGHER OPERATING EXPENSES, WHICH WERE PARTIALLY OFFSET BY LOWER
COST OF SALES.
PUBLISHING
FOURTH-QUARTER SALES INCREASED 14% TO PS.752.9 MILLION COMPARED WITH
PS.660.7 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED
15.8% TO PS.2,505.5 MILLION COMPARED WITH PS.2,163.1 MILLION IN 2004. THE
ANNUAL INCREASE REFLECTS HIGHER MAGAZINE CIRCULATION AND AN INCREASE IN
ADVERTISING PAGES SOLD BOTH IN MEXICO AND ABROAD. THESE INCREASES WERE
PARTIALLY OFFSET BY THE NEGATIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY
DENOMINATED SALES AMOUNTING TO PS.59.6 MILLION.
FOURTH-QUARTER OIBDA ROSE 10.5% TO PS.178.6 MILLION COMPARED WITH PS.161.7
MILLION IN 2004, AND OIBDA MARGIN REACHED 23.7%. FULL-YEAR OIBDA INCREASED
9.4% TO PS.480.1 MILLION COMPARED WITH PS.438.9 MILLION IN 2004, AND OIBDA
MARGIN WAS 19.2%, DRIVEN BY HIGHER SALES, WHICH WERE PARTIALLY OFFSET BY
HIGHER COST OF SALES AND OPERATING EXPENSES.
PUBLISHING DISTRIBUTION
FOURTH-QUARTER SALES INCREASED 3.6% TO PS.106.1 MILLION COMPARED WITH
PS.102.4 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED
5.5% TO PS.402.2 MILLION COMPARED WITH PS.381.1 MILLION IN 2004. THE ANNUAL
INCREASE REFLECTS I) HIGHER CIRCULATION, IN MEXICO AND ABROAD, OF MAGAZINES
PUBLISHED BY THE COMPANY; AND II) HIGHER CIRCULATION IN MEXICO OF MAGAZINES
PUBLISHED BY THIRD PARTIES. THESE INCREASES WERE PARTIALLY OFFSET BY THE
NEGATIVE TRANSLATION EFFECT OF FOREIGN-CURRENCY-DENOMINATED SALES, WHICH
AMOUNTED TO PS.15.8 MILLION.
FOURTH-QUARTER OIBDA INCREASED TO PS.4.3 MILLION COMPARED WITH A LOSS OF
PS.12.8 MILLION IN 2004, AND OIBDA MARGIN REACHED 4.1%. FULL-YEAR OIBDA
ROSE TO PS.6.6 MILLION COMPARED WITH A LOSS OF PS.26.2 MILLION IN 2004, AND
OIBDA MARGIN REACHED 1.6%, DRIVEN BY HIGHER SALES AND LOWER OPERATING
EXPENSES, WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES.
SKY MEXICO
FOURTH-QUARTER SALES INCREASED 21.7% TO PS.1,558.1 MILLION COMPARED WITH
PS.1,280.4 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES
INCREASED 21.5% TO PS.5,986.5 MILLION COMPARED WITH PS.4,928 MILLION IN
2004. THE ANNUAL INCREASE WAS ATTRIBUTABLE TO A 24.7% INCREASE IN THE
SUBSCRIBER BASE AND REVENUES FROM PAY-PER-VIEW, PRIMARILY FROM
NON-RECURRING SPORTS EVENTS BROADCASTED ON AN EXCLUSIVE BASIS. AS OF
DECEMBER 31, 2005, THE NUMBER OF GROSS ACTIVE SUBSCRIBERS REACHED 1,250,600
(INCLUDING 70,100 COMMERCIAL SUBSCRIBERS), COMPARED WITH 1,002,500 GROSS
ACTIVE SUBSCRIBERS (INCLUDING 60,700 COMMERCIAL SUBSCRIBERS) LAST YEAR.
FOURTH-QUARTER OIBDA INCREASED 42% TO PS.686.5 MILLION COMPARED WITH
PS.483.5 MILLION IN 2004, AND OIBDA MARGIN REACHED 44.1%. FULL-YEAR OIBDA
INCREASED 40% TO PS.2,516.8 MILLION COMPARED WITH PS.1,797.4 MILLION IN
2004, AND OIBDA MARGIN REACHED 42%. THESE RESULTS CAME FROM HIGHER SALES,
WHICH WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES.
IN ADDITION, DURING THE FOURTH QUARTER SKY MEXICO RECOGNIZED A BENEFIT FOR
ITS CUMULATIVE TAX-LOSS CARRYFORWARDS AS OF DECEMBER 31, 2005 (BY REVERSING
A RELATED VALUATION ALLOWANCE RECOGNIZED IN PRIOR YEARS), IN CONNECTION
WITH ITS EXPECTED TAXABLE INCOME POSITION FOR THE NEXT COMING YEARS AND IN
ACCORDANCE WITH MEXICAN GAAP BULLETIN D-4, WHICH IS SIMILAR TO STATEMENT OF
FINANCIAL ACCOUNTING STANDARDS NO. 109, "ACCOUNTING FOR INCOME TAXES."
IN FEBRUARY 2006, SKY MEXICO ("INNOVA") AND ITS PARTNERS COMPLETED THE
PREVIOUSLY DISCLOSED TRANSACTIONS BY WHICH AFFILIATES OF THE DIRECTV GROUP,
INC. (WHICH IS 34% OWNED BY NEWS CORPORATION), ACQUIRED THE DIRECT AND
INDIRECT EQUITY INTERESTS IN INNOVA FORMERLY HELD BY NEWS CORPORATION AND
LIBERTY MEDIA. ACCORDINGLY, TELEVISA AND DIRECTV CURRENTLY OWN 52.7% AND
47.3%, RESPECTIVELY, OF THE EQUITY OF INNOVA. IN ADDITION, TELEVISA HAS THE
RIGHT TO ACQUIRE TWO-THIRDS OF THE EQUITY INTEREST THAT DIRECTV ACQUIRED
FROM LIBERTY MEDIA. IF TELEVISA ELECTS TO ACQUIRE THIS INTEREST, THEN
TELEVISA AND DIRECTV WOULD OWN 58.7% AND 41.3%, RESPECTIVELY, OF INNOVA'S
EQUITY.
CABLE TELEVISION
FOURTH-QUARTER SALES INCREASED 28% TO PS.389.9 MILLION COMPARED WITH
PS.304.5 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED
20.6% TO PS.1,405.1 MILLION COMPARED WITH PS.1,165.5 MILLION IN 2004. THE
ANNUAL INCREASE WAS ATTRIBUTABLE TO I) AN 18.9% INCREASE IN THE SUBSCRIBER
BASE, WHICH, AS OF DECEMBER 31, 2005, REACHED 422,088 (INCLUDING 283,207
DIGITAL SUBSCRIBERS) COMPARED WITH LAST YEAR'S SUBSCRIBER BASE OF 355,017
(INCLUDING 122,975 DIGITAL SUBSCRIBERS); II) A 130.4% INCREASE IN BROADBAND
SUBSCRIBERS TO 60,986 COMPARED WITH 26,466 REPORTED LAST YEAR; AND III) A
6% RATE INCREASE IN CABLEVISION VIDEO SERVICE PACKAGES EFFECTIVE MARCH 1,
2005.
FOURTH-QUARTER OIBDA INCREASED 78.1% TO PS.171.5 MILLION COMPARED WITH
PS.96.3 MILLION IN 2004, AND OIBDA MARGIN REACHED 44%. FULL-YEAR OIBDA
INCREASED 32.9% TO PS.489.6 MILLION COMPARED WITH PS.368.4 MILLION IN 2004,
AND OIBDA MARGIN REACHED 34.8%. THESE RESULTS REFLECTED HIGHER SALES, WHICH
WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES.
RADIO
FOURTH-QUARTER SALES INCREASED 11.4% TO PS.107.8 MILLION COMPARED WITH
PS.96.8 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED
12.8% TO PS.344.7 MILLION COMPARED WITH PS.305.6 MILLION IN 2004. THE
ANNUAL INCREASE CAME FROM HIGHER ADVERTISING TIME SOLD, MAINLY IN OUR NEWS
AND SPORTS PROGRAMS, AS WELL AS FROM SALES GENERATED BY OUR AFFILIATION
AGREEMENT WITH RADIORAMA.
FOURTH-QUARTER OIBDA INCREASED 21.3% TO PS.25.1 MILLION COMPARED WITH
PS.20.7 MILLION IN 2004, AND OIBDA MARGIN REACHED 23.3%. FULL-YEAR OIBDA
INCREASED 59.1% TO PS.52.2 MILLION COMPARED WITH PS.32.8 MILLION IN 2004,
AND OIBDA MARGIN REACHED 15.1%. THESE RESULTS REFLECTED HIGHER SALES, WHICH
WERE PARTIALLY OFFSET BY HIGHER COST OF SALES AND OPERATING EXPENSES.
OTHER BUSINESSES
FOURTH-QUARTER SALES INCREASED 28.5% TO PS.333.0 MILLION COMPARED WITH
PS.259.2 MILLION IN THE SAME PERIOD OF LAST YEAR. FULL-YEAR SALES INCREASED
4.6% TO PS.1,324.3 MILLION COMPARED WITH PS.1,266.3 MILLION IN 2004. THE
ANNUAL INCREASE WAS ATTRIBUTABLE TO HIGHER SALES IN OUR SPORTS BUSINESS, AS
WELL AS IN OUR ESMAS.COM INTERNET PORTAL, INCLUDING SALES RELATED TO OUR
SMS MESSAGING SERVICE. THESE INCREASES WERE PARTIALLY OFFSET BY LOWER SALES
IN OUR FEATURE-FILM DISTRIBUTION BUSINESS.
FOURTH-QUARTER OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION
INCREASED TO PS.104.1 MILLION COMPARED WITH A LOSS OF PS.3.9 MILLION IN
2004. FULL-YEAR OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION
INCREASED TO PS.180.4 MILLION COMPARED WITH PS.91.9 MILLION IN 2004. THESE
RESULTS WERE ATTRIBUTABLE TO HIGHER COST OF SALES AND OPERATING EXPENSES,
WHICH WERE PARTIALLY OFFSET BY HIGHER SALES.
INTERSEGMENT SALES
INTERSEGMENT SALES FOR 2005 AND 2004, AMOUNTED TO PS.1,045.2 MILLION AND
PS.891.0 MILLION, RESPECTIVELY.
CORPORATE EXPENSES
CORPORATE EXPENSES FOR 2005 AND 2004, AMOUNTED TO PS.182.5 MILLION AND
PS.161.2 MILLION, RESPECTIVELY.
DISPOSED OPERATIONS
THE RESULTS OF OPERATIONS OF THE COMPANY'S NATIONWIDE PAGING AND SPORTS
BUSINESSES ARE PRESENTED AS DISPOSED OPERATIONS IN 2004.
SALES OF DISPOSED OPERATIONS IN 2004 AMOUNTED TO PS.281.1 MILLION.
OPERATING LOSS BEFORE DEPRECIATION AND AMORTIZATION OF DISPOSED OPERATIONS
AMOUNTED TO PS.40.2 MILLION IN 2004.
NON-OPERATING RESULTS
INTEGRAL COST OF FINANCING
THE EXPENSE ATTRIBUTABLE TO THE INTEGRAL COST OF FINANCING INCREASED BY
PS.215.4 MILLION, OR 13.7%, TO PS.1,782.1 MILLION IN 2005 COMPARED WITH
PS.1,566.7 MILLION IN 2004. THIS INCREASE REFLECTED PRIMARILY A PS.632.4
MILLION INCREASE IN NET FOREIGN-EXCHANGE LOSS RESULTING PRIMARILY FROM THE
DIFFERENCE BETWEEN THE SPOT RATE AND THE FOREIGN-EXCHANGE RATE OF THE
COUPON SWAPS ENTERED INTO BY US TO SWAP INTO FIXED MEXICAN PESOS UP TO FIVE
YEARS OF US-DOLLAR-DENOMINATED COUPONS OF A PORTION OF OUR
US-DOLLAR-DENOMINATED OUTSTANDING INDEBTEDNESS, IN CONJUNCTION WITH A 4.69%
APPRECIATION OF THE MEXICAN PESO AGAINST THE US DOLLAR IN 2005 COMPARED
WITH A 0.68% APPRECIATION OF THE MEXICAN PESO AGAINST THE US DOLLAR IN
2004. THIS UNFAVORABLE VARIANCE WAS PARTIALLY OFFSET BY I) A PS.30.7
MILLION DECREASE IN INTEREST EXPENSE, DUE PRIMARILY TO A NET DECREASE IN
THE AVERAGE AMOUNT OF OUR TOTAL CONSOLIDATED DEBT; II) A PS.253.7 MILLION
INCREASE IN INTEREST INCOME IN CONNECTION WITH A HIGHER AVERAGE AMOUNT OF
TEMPORARY INVESTMENTS AND HIGHER INTEREST RATES IN 2005 COMPARED WITH LAST
YEAR; AND III) A PS.132.6 MILLION INCREASE IN GAIN FROM MONETARY POSITION
RESULTING PRIMARILY FROM A HIGHER NET LIABILITY POSITION IN 2005 COMPARED
WITH 2004, WHICH WAS PARTIALLY OFFSET BY LOWER ANNUAL INFLATION IN 2005
(3.33%) COMPARED WITH 2004 (5.19%).
RESTRUCTURING AND NON-RECURRING CHARGES
RESTRUCTURING AND NON-RECURRING CHARGES DECREASED BY PS.178.5 MILLION, OR
43.7%, TO PS.229.9 MILLION IN 2005 COMPARED WITH PS.408.4 MILLION IN 2004.
THIS DECREASE REFLECTED PRIMARILY THE RECOGNITION IN 2004 OF NON-RECURRING
IMPAIRMENT ADJUSTMENTS TO THE CARRYING VALUE OF CERTAIN GOODWILL AND
TRADEMARKS, AS WELL AS A DECREASE IN 2005 OF RESTRUCTURING CHARGES IN
CONNECTION WITH WORK-FORCE REDUCTIONS. THESE FAVORABLE VARIANCES WERE
PARTIALLY OFFSET BY CERTAIN NON-RECURRENT EXPENSES INCURRED IN CONNECTION
WITH THE PREPAYMENT IN MARCH 2005 OF A PORTION OF OUR UDI-DENOMINATED NOTES
DUE 2007 AND OUR SENIOR NOTES DUE 2011.
OTHER EXPENSE, NET
OTHER EXPENSE, NET, DECREASED BY PS.68 MILLION, OR 12.8%, TO PS.464.2
MILLION IN 2005, COMPARED WITH PS.532.2 MILLION IN 2004. THIS DECREASE
REFLECTED PRIMARILY A LOWER EXPENSE IN DONATIONS AND ADVISORY AND
PROFESSIONAL SERVICES.
INCOME TAX
INCOME TAX DECREASED BY PS.444.3 MILLION, OR 36.6%, TO PS.771.2 MILLION IN
2005 COMPARED WITH PS.1,215.5 MILLION IN 2004. THIS DECREASE REFLECTED A
FAVORABLE EFFECT IN CONSOLIDATED DEFERRED INCOME TAX, PRIMARILY IN
CONJUNCTION WITH THE BENEFIT FOR CUMULATIVE TAX-LOSS CARRYFORWARDS
RECOGNIZED BY SKY MEXICO AT DECEMBER 31, 2005, AS A RESULT OF THE EXPECTED
TAXABLE INCOME POSITION OF SKY MEXICO FOR THE NEXT FEW YEARS.
EQUITY IN INCOME OF AFFILIATES
EQUITY IN INCOME OF AFFILIATES DECREASED BY PS.475.3 MILLION, OR 74.8%, TO
PS.160.2 MILLION IN 2005 COMPARED WITH PS.635.5 MILLION IN 2004. THIS
DECREASE REFLECTED PRIMARILY THE ABSENCE OF THE EQUITY INCOME RECOGNIZED IN
2004 DUE TO THE REVERSAL OF PREVIOUS EQUITY LOSSES RECOGNIZED IN EXCESS OF
OUR INVESTMENT IN SKY MULTI-COUNTRY PARTNERS ("MCOP") IN CONNECTION WITH
THE RELEASE OF OUR GUARANTEE OF SATELLITE TRANSPONDER PAYMENTS OF MCOP. THE
DECREASE IS ALSO THE RESULT OF A REDUCTION IN EQUITY INCOME OF UNIVISION
AND OCESA ENTRETENIMIENTO, OUR LIVE-ENTERTAINMENT JOINT VENTURE WITH
CORPORACION INTERAMERICANA DE ENTRETENIMIENTO, IN WHICH WE HAVE A 40%
EQUITY PARTICIPATION.
CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE
IN 2005, THIS LINE REFLECTED I) THE CUMULATIVE LOSS EFFECT OF PS.323.7
MILLION IN CONNECTION WITH THE ACCRUAL FOR SHARE-BASED COMPENSATION EXPENSE
AT DECEMBER 31, 2005, FOR BENEFITS GRANTED TO EXECUTIVES AND EMPLOYEES
UNDER THE TERMS OF OUR STOCK PURCHASE PLAN AND LONG-TERM RETENTION PLAN, AS
A RESULT OF THE ADOPTION, AS OF THAT DATE, OF THE INTERNATIONAL FINANCIAL
REPORTING STANDARD 2, "SHARE-BASED PAYMENT," ISSUED BY THE INTERNATIONAL
ACCOUNTING STANDARDS BOARD; AND II) THE CUMULATIVE LOSS EFFECT OF PS.182.4
MILLION, NET OF AN INCOME-TAX BENEFIT OF PS.78.2 MILLION, AT JANUARY 1,
2005, IN CONNECTION WITH THE ADOPTION, AS OF THAT DATE, OF THE GUIDELINES
FOR RECOGNITION OF SEVERANCE PAYMENTS IN REVISED BULLETIN D-3, "LABOR
OBLIGATIONS," ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS.
IN 2004, THIS LINE REFLECTED THE CUMULATIVE LOSS EFFECT OF PS.1,055.6
MILLION, NET OF AN INCOME-TAX BENEFIT OF PS.319.4 MILLION, IN CONNECTION
WITH THE CONSOLIDATION OF SKY MEXICO IN OUR FINANCIAL STATEMENTS BEGINNING
APRIL 1, 2004, AS A RESULT OF THE ADOPTION, AS OF THAT DATE, OF FINANCIAL
ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 46, "CONSOLIDATION OF
VARIABLE INTEREST ENTITIES," ISSUED BY THE US FINANCIAL ACCOUNTING
STANDARDS BOARD.
MINORITY INTEREST
MINORITY INTEREST IN CONSOLIDATED NET INCOME INCREASED BY PS.844.5 MILLION
TO PS.1,084 MILLION IN 2005 COMPARED WITH PS.239.5 MILLION IN 2004. THIS
INCREASE REFLECTED PRIMARILY THE PORTION OF NET INCOME ATTRIBUTABLE TO THE
INTEREST HELD BY MINORITY SHAREHOLDERS IN SKY MEXICO, WHICH WE BEGAN
CONSOLIDATING IN OUR FINANCIAL STATEMENTS IN APRIL 2004.
OTHER RELEVANT INFORMATION
CAPITAL EXPENDITURES AND INVESTMENTS
IN 2005 OUR CAPITAL EXPENDITURES TOTALED US$248.3 MILLION, INCLUDING
US$51.1 MILLION FOR OUR CABLE TELEVISION SEGMENT, US$109.2 MILLION FOR SKY
MEXICO, AND US$88 MILLION FOR OUR TELEVISION BROADCASTING AND OTHER
BUSINESS UNITS. IN ADDITION, IN THE FOURTH QUARTER OF 2005, WE MADE A
CAPITAL CONTRIBUTION OF US$25 MILLION IN VOLARIS, A NEW, LOW-COST-CARRIER
AIRLINE WITH A CONCESSION TO OPERATE IN MEXICO. VOLARIS WILL BEGIN
OPERATIONS IN MARCH 2006.
DEBT
THE TOTAL CONSOLIDATED DEBT AMOUNTED TO PS.18,477.7 MILLION AND PS.22,982.1
MILLION AS OF DECEMBER 31, 2005 AND 2004, RESPECTIVELY, WICH INCLUDED A
CURRENT PORTION OF LONG-TERM DEBT IN THE AMOUNT OF PS.340.5 MILLION AND
PS.3,407.0 MILLION, RESPECTIVELY.
ADDITIONALLY, SKY MEXICO HAD A SATELLITE TRANSPONDER LEASE OBLIGATION IN
THE AMOUNT OF PS.1,262.5 MILLION AND PS.1,441.9 MILLION AS OF DECEMBER 31,
2005 AND 2004, RESPECTIVELY, WHICH INCLUDED A CURRENT PORTION OF PS.75.6
MILLION AND PS.73.1 MILLION, RESPECTIVELY.
AS OF DECEMBER 31, 2005 AND 2004, OUR CONSOLIDATED NET DEBT WAS PS.3,699.7
MILLION AND PS.5,786.2 MILLION, RESPECTIVELY.
SHARE BUYBACK PROGRAM
FROM JANUARY 1 THROUGH DECEMBER 31, 2005, WE REPURCHASED APPROXIMATELY 31.2
MILLION CPOS FOR PS.1,043.6 MILLION IN NOMINAL TERMS. THROUGH APRIL 27,
2006, WE HAD REPURCHASED APPROXIMATELY 3.7 MILLION CPOS FOR PS.154.7
MILLION IN NOMINAL TERMS.
ADVERTISING SALES PLAN
AS OF DECEMBER 31, 2005, WE HAD RECEIVED AGGREGATE UPFRONT ADVERTISING
DEPOSITS FOR TELEVISION ADVERTISING OF APPROXIMATELY PS.14,232.7 MILLION IN
NOMINAL TERMS, REPRESENTING A 2% INCREASE IN REAL TERMS COMPARED WITH THE
PRIOR YEAR. APPROXIMATELY 57.5% OF THE ADVANCE DEPOSITS AS OF DECEMBER 31,
2005, WERE IN THE FORM OF SHORT-TERM, NON-INTEREST-BEARING NOTES RECEIVABLE
MATURING THE FOLLOWING YEAR, WITH THE REMAINDER CONSISTING OF CASH
DEPOSITS. THE WEIGHTED-AVERAGE MATURITY OF THESE NOTES WAS 3.1 MONTHS.
TELEVISION RATINGS AND AUDIENCE SHARE
NATIONAL URBAN RATINGS AND AUDIENCE SHARE REPORTED BY IBOPE CONFIRM THAT,
IN 2005, TELEVISA CONTINUED TO DELIVER STRONG RATINGS AND AUDIENCE SHARES.
DURING WEEKDAY PRIME TIME (19:00 TO 23:00, MONDAY TO FRIDAY), AUDIENCE
SHARE AMOUNTED TO 69%; IN PRIME TIME (16:00 TO 23:00, MONDAY TO SUNDAY),
AUDIENCE SHARE AMOUNTED TO 68.5%; AND IN SIGN-ON TO SIGN-OFF (6:00 TO
24:00, MONDAY TO SUNDAY), AUDIENCE SHARE AMOUNTED TO 70.2%. IN 2005,
TELEVISA AIRED 87% OF THE TOP-100 RATED PROGRAMS.
OUTLOOK FOR 2006
IN OUR TELEVISION BROADCASTING BUSINESS, WE EXPECT HIGH-SINGLE-DIGIT SALES
GROWTH AND OIBDA MARGIN REACHING 49% FOR THE FULL-YEAR 2006. ON A
CONSOLIDATED BASIS, WE EXPECT OUR OIBDA MARGIN TO EXCEED 40% FOR THE
FULL-YEAR 2006.
ABOUT TELEVISA
GRUPO TELEVISA, S.A. IS THE LARGEST MEDIA COMPANY IN THE SPANISH-SPEAKING
WORLD AND A MAJOR PARTICIPANT IN THE INTERNATIONAL ENTERTAINMENT BUSINESS.
IT HAS INTERESTS IN TELEVISION PRODUCTION AND BROADCASTING, PRODUCTION OF
PAY-TELEVISION NETWORKS, INTERNATIONAL DISTRIBUTION OF TELEVISION
PROGRAMMING, DIRECT-TO-HOME SATELLITE SERVICES, PUBLISHING AND PUBLISHING
DISTRIBUTION, CABLE TELEVISION, RADIO PRODUCTION AND BROADCASTING,
PROFESSIONAL SPORTS AND LIVE ENTERTAINMENT, FEATURE-FILM PRODUCTION AND
DISTRIBUTION, AND THE OPERATION OF A HORIZONTAL INTERNET PORTAL. GRUPO
TELEVISA ALSO OWNS AN UNCONSOLIDATED EQUITY STAKE IN UNIVISION, THE LEADING
SPANISH-LANGUAGE MEDIA COMPANY IN THE UNITED STATES.
DISCLAIMER
THIS 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 PRO-FORMA INFORMATION IS PRESENTED FOR INFORMATIONAL PURPOSES ONLY AND
DOES NOT PURPORT TO REPRESENT WHAT OUR FINANCIAL POSITION OR RESULTS OF
OPERATIONS WOULD HAVE BEEN HAD RECOGNITION OF SALES AND COST OF GOODS SOLD
BEEN REALIZED DURING THE SPECIFIED PERIODS. FURTHERMORE, THE READER SHOULD
NOT RELY ON THE PRO-FORMA INFORMATION AS AN INDICATION OF THE RESULTS OF
OPERATIONS OF FUTURE PERIODS.
FINANCIAL STATEMENT NOTES
ANNEX 2
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
---------------------------------------------------------------------------
GRUPO TELEVISA, S.A.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
(IN THOUSANDS OF MEXICAN PESOS IN PURCHASING POWER AS
OF DECEMBER 31, 2005, EXCEPT PER SHARE, PER CPO AND PER UDI VALUES)
1. ACCOUNTING POLICIES:
THE CONDENSED FINANCIAL STATEMENTS OF GRUPO TELEVISA, S.A. (THE
"COMPANY") AND ITS CONSOLIDATED SUBSIDIARIES (COLLECTIVELY, THE "GROUP"),
AS OF DECEMBER 31, 2005 AND 2004, AND FOR THE YEARS ENDED ON THOSE DATES,
ARE UNAUDITED. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS (CONSISTING
PRINCIPALLY OF NORMAL RECURRING ADJUSTMENTS) NECESSARY FOR A FAIR
PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN
INCLUDED THEREIN.
FOR PURPOSES OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS,
CERTAIN INFORMATION AND DISCLOSURES, NORMALLY INCLUDED IN FINANCIAL
STATEMENTS PREPARED IN ACCORDANCE WITH MEXICAN GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ("MEXICAN GAAP"), HAVE BEEN CONDENSED OR OMITTED.
THESE CONDENSED CONSOLIDATED STATEMENTS SHOULD BE READ IN CONJUNCTION WITH
THE GROUP'S CONSOLIDATED AND AUDITED FINANCIAL STATEMENTS AND NOTES THERETO
FOR THE YEAR ENDED DECEMBER 31, 2004, WHICH INCLUDE, AMONG OTHER
DISCLOSURES, THE GROUP'S MOST SIGNIFICANT ACCOUNTING POLICIES, WHICH HAVE
BEEN APPLIED ON A CONSISTENT BASIS FOR THE YEAR ENDED DECEMBER 31, 2005,
EXCEPT FOR THE MATTERS DISCUSSED IN THE FOLLOWING PARAGRAPHS.
EFFECTIVE JANUARY 1, 2005, THE GROUP ADOPTED THE PROVISIONS FOR
SEVERANCE OBLIGATIONS REQUIRED BY THE REVISED BULLETIN D-3, "LABOR
OBLIGATIONS" ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS
("MIPA"). BULLETIN D-3 REQUIRES THAT SEVERANCE OBLIGATIONS TO DISMISSED
PERSONNEL, OTHER THAN THOSE ARISING FROM RESTRUCTURINGS, BE RECOGNIZED
BASED UPON ACTUARIAL CALCULATIONS (SEE NOTE 11). THROUGH DECEMBER 31, 2004,
SEVERANCE OBLIGATIONS TO DISMISSED PERSONNEL WERE CHARGED BY THE GROUP TO
INCOME IN THE YEAR IN WHICH THEY WERE INCURRED.
EFFECTIVE DECEMBER 31, 2005, THE GROUP ADOPTED THE GUIDELINES OF THE
INTERNATIONAL FINANCIAL REPORTING STANDARD 2 ("IFRS 2"), "SHARE-BASED
PAYMENT," ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. IFRS 2
REQUIRES ACCRUING FOR SHARE-BASED COMPENSATION EXPENSE, WHICH IS MEASURED
WHEN EQUITY BENEFITS ARE GRANTED TO OFFICERS AND EMPLOYEES UNDER THE TERMS
OF THE GROUP'S STOCK PURCHASE PLAN AND LONG-TERM RETENTION PLAN (SEE NOTES
5 AND 11). BEFORE DECEMBER 31, 2005, THE GROUP RECOGNIZED EQUITY
COMPENSATION BENEFITS IN CONSOLIDATED STOCKHOLDERS' EQUITY, WHEN BENEFITS
BECAME VESTED.
2. PROPERTY, PLANT AND EQUIPMENT:
PROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, CONSISTED OF:
2005 2004
---------------- ----------------
BUILDINGS Ps. 7,964,833 Ps. 7,807,516
BUILDING IMPROVEMENTS 1,582,373 1,720,042
TECHNICAL EQUIPMENT 17,970,490 17,810,157
SATELLITE TRANSPONDERS 1,636,152 1,714,647
FURNITURE AND FIXTURES 500,070 596,442
TRANSPORTATION EQUIPMENT 1,105,876 1,172,949
COMPUTER EQUIPMENT 1,413,731 1,488,757
---------------- ----------------
32,173,525 32,310,510
ACCUMULATED DEPRECIATION (17,174,543) (16,993,039)
---------------- ----------------
14,998,982 15,317,471
LAND 3,820,812 3,827,822
CONSTRUCTION AND PROJECTS IN PROGRESS 908,753 652,805
---------------- ----------------
Ps. 19,728,547 Ps. 19,798,098
================ ================
DEPRECIATION CHARGED TO INCOME FOR THE YEARS ENDED DECEMBER 31, 2005
AND 2004, WAS PS.2,084,345 AND PS.1,870,125, RESPECTIVELY.
3. LONG-TERM DEBT SECURITIES:
AS OF DECEMBER 31, THE GROUP'S CONSOLIDATED LONG-TERM DEBT SECURITIES
OUTSTANDING WERE AS FOLLOWS:
2005 2004
-------------------------------- -----------------------------
U.S. DOLLAR U.S. DOLLAR
PRINCIPAL PRINCIPAL
AMOUNTS MEXICAN AMOUNTS MEXICAN
LONG-TERM DEBT SECURITIES (THOUSANDS) PESOS (THOUSANDS) PESOS
---------------------------------------- -------------- ---------------- ------------- ---------------
11.875% SERIES "B" SENIOR NOTES DUE
2006 (A) $ 5,343 Ps. 56,777 $ 5,343 Ps. 61,554
8.625% SENIOR NOTES DUE 2005 (B) - - 200,000 2,304,112
8.000% SENIOR NOTES DUE 2011 (B) (C) 75,484 802,131 300,000 3,456,169
6.625% SENIOR NOTES DUE 2025 (B) (C) 600,000 6,375,900 - -
8.500% SENIOR NOTES DUE 2032 (B) 300,000 3,187,950 300,000 3,456,169
12.875% SENIOR NOTES DUE 2007 - - 88,000 1,013,810
9.375% SENIOR NOTES DUE 2013 (D) 300,000 3,187,950 300,000 3,456,169
-------------- ---------------- ------------ ---------------
$ 1,280,827 13,610,708 $ 1,193,343 13,747,983
============== ============
8.15% UDI-DENOMINATED NOTES DUE 2007
(C) (E) 941,071 3,966,662
---------------- ---------------
Ps. 14,551,779 Ps.17,714,645
================ ===============
(A) THESE SECURITIES ARE UNSECURED, UNSUBORDINATED OBLIGATIONS OF THE
COMPANY, RANK PARI PASSU IN RIGHT OF PAYMENT WITH ALL EXISTING AND
FUTURE UNSECURED, UNSUBORDINATED OBLIGATIONS OF THE COMPANY, ARE
SENIOR IN RIGHT OF PAYMENT TO ALL FUTURE SUBORDINATED INDEBTEDNESS OF
THE COMPANY, AND ARE EFFECTIVELY SUBORDINATED TO ALL EXISTING AND
FUTURE LIABILITIES OF THE COMPANY'S SUBSIDIARIES. INTEREST ON THESE
SECURITIES, INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN
MEXICAN WITHHOLDING TAXES, IS 12.49% PER ANNUM AND IS PAYABLE
SEMI-ANNUALLY.
(B) 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 SENIOR NOTES DUE 2005, 2011, 2025 AND 2032,
INCLUDING ADDITIONAL AMOUNTS PAYABLE IN RESPECT OF CERTAIN MEXICAN
WITHHOLDING TAXES, IS 9.07%, 8.41%, 6.97% AND 8.94% PER ANNUM,
RESPECTIVELY, AND IS PAYABLE SEMI-ANNUALLY. THESE SENIOR NOTES MAY NOT
BE REDEEMED PRIOR TO MATURITY, EXCEPT IN THE EVENT OF CERTAIN CHANGES
IN LAW AFFECTING THE MEXICAN WITHHOLDING TAX TREATMENT OF CERTAIN
PAYMENTS ON THE SECURITIES, IN WHICH CASE THE SECURITIES WILL BE
REDEEMABLE, AS A WHOLE BUT NOT IN PART, AT THE OPTION OF THE COMPANY.
THE SENIOR NOTES DUE 2011 AND 2032 WERE PRICED AT 98.793% AND 99.431%,
RESPECTIVELY, FOR A YIELD TO MATURITY OF 8.179% AND 8.553%,
RESPECTIVELY. THE AGREEMENT OF THESE SENIOR NOTES CONTAINS CERTAIN
COVENANTS THAT LIMIT THE ABILITY OF THE COMPANY AND CERTAIN RESTRICTED
SUBSIDIARIES ENGAGED IN TELEVISION BROADCASTING, PAY TELEVISION
NETWORKS AND PROGRAMMING EXPORTS, TO INCUR OR ASSUME LIENS, PERFORM
SALE AND LEASEBACK TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS,
CONSOLIDATIONS AND SIMILAR TRANSACTIONS. SUBSTANTIALLY ALL OF THESE
SENIOR NOTES ARE REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE
COMMISSION
(C) IN MARCH AND MAY 2005, THE COMPANY ISSUED SENIOR NOTES DUE 2025 IN THE
AGGREGATE AMOUNT OF U.S.$400 MILLION AND U.S.$200 MILLION,
RESPECTIVELY, WHICH WERE PRICED AT 98.081% AND 98.632%, RESPECTIVELY,
FOR A YIELD TO MATURITY OF 6.802% AND 6.787%, RESPECTIVELY. THE NET
PROCEEDS OF THE U.S.$400 MILLION OFFERING, TOGETHER WITH CASH ON HAND,
WERE USED TO FUND THE GROUP'S TENDER OFFERS MADE AND EXPIRED IN MARCH
2005 FOR ANY OR ALL OF THE SENIOR NOTES DUE 2011 AND THE MEXICAN PESOS
EQUIVALENT OF UDI-DENOMINATED NOTES DUE 2007, AND PREPAID PRINCIPAL
AMOUNT OF THESE SECURITIES IN THE AMOUNT OF APPROXIMATELY U.S.$222.0
MILLION AND PS.2,935,097 (NOMINAL), RESPECTIVELY, REPRESENTING
APPROXIMATELY 74% AND 76% OF THE OUTSTANDING PRINCIPAL AMOUNT OF THESE
SECURITIES, RESPECTIVELY. THE NET PROCEEDS OF THE U.S.$200 MILLION
ISSUANCE WERE USED FOR CORPORATE PURPOSES, INCLUDING THE REPAYMENT OF
SOME OF THE GROUP'S OUTSTANDING INDEBTEDNESS (SEE NOTE 14).
(D) IN SEPTEMBER 2003, INNOVA COMPLETED THE OFFERING OF THESE SENIOR
NOTES, WHICH ARE UNSECURED AND UNSUBORDINATED INDEBTEDNESS OF INNOVA
AND CONTAIN CERTAIN RESTRICTIVE COVENANTS FOR INNOVA ON ADDITIONAL
INDEBTEDNESS, LIENS, SALES AND LEASEBACKS, RESTRICTED PAYMENTS, ASSETS
SALES, AND CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
INTEREST ON THESE SENIOR NOTES, INCLUDING ADDITIONAL AMOUNTS PAYABLE
IN RESPECT OF CERTAIN MEXICAN WITHHOLDING TAXES, IS 9.8580%, AND IS
PAYABLE SEMI-ANNUALLY. INNOVA MAY, AT ITS OWN OPTION, REDEEM THESE
SENIOR NOTES, IN WHOLE OR IN PART, AT ANY TIME ON OR AFTER SEPTEMBER
19, 2008 AT REDEMPTION PRICES FROM 104.6875% TO 101.5625% BETWEEN
SEPTEMBER 19, 2008 THROUGH SEPTEMBER 18, 2011, OR 100% COMMENCING ON
SEPTEMBER 19, 2011, PLUS ACCRUED AND UNPAID INTEREST, IF ANY.
ADDITIONALLY, ON OR BEFORE SEPTEMBER 19, 2006, INNOVA MAY, AT ITS OWN
OPTION AND SUBJECT TO CERTAIN REQUIREMENTS, USE THE PROCEEDS FROM ONE
OR MORE QUALIFIED EQUITY OFFERING TO REDEEM UP TO 35% OF THE AGGREGATE
PRINCIPAL AMOUNT OF THESE SENIOR NOTES AT 109.375% OF THEIR PRINCIPAL
AMOUNT, PLUS ACCRUED AND UNPAID INTEREST.
(E) NOTES DENOMINATED IN MEXICAN INVESTMENT UNITS ("UNIDADES DE INVERSION"
OR "UDIS"), REPRESENTING 258,711,400 AND 1,086,007,800 UDIS AS OF
DECEMBER 31, 2005 AND 2004, RESPECTIVELY. INTEREST ON THESE NOTES IS
PAYABLE SEMI-ANNUALLY. THE BALANCE AS OF DECEMBER 31, 2005 AND 2004
INCLUDES RESTAMENT OF PS.226,404 AND PS.866,681, RESPECTIVELY. THE UDI
VALUE AS OF DECEMBER 31, 2005, WAS OF PS. 3.637532 PER UDI.
IN 2002, THE GROUP DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN
EFFECTIVE HEDGE OF ITS OUTSTANDING SENIOR NOTES DUE 2011 AND 2032 FOR AN
AGGREGATE AMOUNT OF U.S.$600.0 MILLION. IN MARCH 2005, IN CONNECTION WITH
THE ISSUANCE OF A PORTION OF ITS SENIOR NOTES DUE 2025, AND THE PREPAYMENT
OF A PORTION OF ITS SENIOR NOTES DUE 2011, THE GROUP DESIGNATED ITS NET
INVESTMENT IN UNIVISION AS AN EFFECTIVE HEDGE OF U.S.$400 MILLION OF THE
SENIOR NOTES DUE 2025. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN OR LOSS
ATTRIBUTABLE TO THIS U.S. DOLLAR LONG-TERM DEBT IS CREDITED OR CHARGED
DIRECTLY TO EQUITY (OTHER COMPREHENSIVE INCOME OR LOSS) (SEE NOTE 7). AS OF
DECEMBER 31, 2005 AND 2004, THE TOTAL PRINCIPAL AMOUNT OF THE GROUP'S
LONG-TERM DEBT BEING HEDGED BY THE GROUP'S NET INVESTMENT IN UNIVISION WAS
OF APPROXIMATELY U.S.$775.5 MILLION AND U.S.$600.0 MILLION, RESPECTIVELY.
IN JUNE 2005, THE COMPANY REPURCHASED U.S.$2.0 MILLION OF THE
OUTSTANDING PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2011 IN THE AMOUNT OF
U.S.$2.4 MILLION.
IN JANUARY 2006, THE COMPANY REPURCHASED U.S.$3.5 MILLION OF THE
OUTSTANDING PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2011 IN THE AMOUNT OF
U.S.$4.0 MILLION. ACCORDINGLY, THIS U.S.$3.5 MILLION LONG-TERM DEBT HAS
BEEN CLASSIFIED AS SHORT-TERM DEBT IN THE GROUP'S CONSOLIDATED BALANCE
SHEET AS OF DECEMBER 31, 2005.
4. CONTINGENCIES:
IN JUNE 2003, THE COMPANY WAS NOTIFIED BY THE MEXICAN TAX
AUTHORITY OF A FEDERAL TAX CLAIM MADE AGAINST THE COMPANY FOR APPROXIMATELY
PS.960,700, INCLUDING PENALTIES AND SURCHARGES, FOR AN ALLEGED ASSETS TAX
LIABILITY FOR THE YEAR 1994. THE COMPANY BELIEVES IT HAS MERITORIOUS
DEFENSE AGAINST THIS CLAIM.
THERE ARE VARIOUS LEGAL ACTIONS AND OTHER CLAIMS PENDING AGAINST THE
GROUP INCIDENTAL TO ITS BUSINESSES AND OPERATIONS. IN THE OPINION OF THE
GROUP'S MANAGEMENT, NONE OF THESE PROCEEDINGS WILL HAVE A MATERIAL ADVERSE
EFFECT ON THE GROUP'S FINANCIAL POSITION OR RESULTS OF OPERATIONS.
5. STOCKHOLDERS' EQUITY:
THE MAJORITY STOCKHOLDERS' EQUITY AS OF DECEMBER 31, IS ANALYZED AS
FOLLOWS:
2005 2004
----------------------------- ------------------------------
NOMINAL RESTATED NOMINAL RESTATED
PESOS PESOS PESOS PESOS
------------- -------------- --------------- -------------
CAPITAL STOCK ISSUED Ps. 2,524,174 Ps. 9,889,463 Ps. 2,524,174 Ps. 9,889,463
ADDITIONAL PAID-IN CAPITAL 3,841,792 4,212,442 3,841,792 4,212,442
LEGAL RESERVE 1,018,068 1,798,387 802,231 1,575,357
RESERVE FOR REPURCHASE OF SHARES 2,255,655 5,744,583 2,255,655 5,744,583
UNAPPROPRIATED EARNINGS 3,285,844 11,834,150 7,738,613 11,917,996
CUMULATIVE GAIN ON EQUITY OF ASSOCIATES 3,397,806 3,864,915 3,475,741 4,054,315
CUMULATIVE EFFECT OF DEFERRED TAXES (2,197,681) (2,986,569) (2,197,681) (2,986,569)
ACCUMULATED OTHER COMPREHENSIVE LOSS -- (4,424,715) -- (3,715,195)
NET INCOME FOR THE YEAR -- 6,125,542 4,316,743 4,460,607
SHARES REPURCHASED (6,493,138) (7,045,146) (5,834,065) (6,504,449)
-------------- -------------
TOTAL MAJORITY STOCKHOLDERS' EQUITY Ps. 29,013,052 Ps.28,648,550
============== =============
IN APRIL, 2004, THE COMPANY'S STOCKHOLDERS APPROVED A DIVIDEND
PAYMENT IN THE AMOUNT OF PS.4,114,065 (PS.3,850,000 NOMINAL), WHICH WAS
PAID IN CASH ON MAY 21, 2004, AS FOLLOWS: A DIVIDEND OF PS.1.21982800845
PER CPO, AND A DIVIDEND OF PS.0.40660933615 PER FORMER SERIES "A" SHARE
(NOT IN THE FORM OF A CPO AND BEFORE THE RECAPITALIZATION).
IN APRIL, 2004, THE COMPANY'S STOCKHOLDERS APPROVED A RESTRUCTURING
OF THE COMPANY'S CAPITAL STOCK ("THE RECAPITALIZATION"), WHICH COMPRISED
THE FOLLOWING: (I) A 25-FOR-ONE STOCK SPLIT, WHICH BECAME EFFECTIVE ON JULY
26, 2004 (ALL THE COMPANY'S SHARE DATA IN THESE FINANCIAL STATEMENTS ARE
PRESENTED ON POST-SPLIT BASIS); (II) THE CREATION OF THE SERIES "B" SHARES;
(III) A 14-FOR-25 STOCK DIVIDEND IN THE AMOUNT OF PS.968,262 (NOMINAL OF
PS.906,114 ); AND (IV) AN INCREASE IN THE NUMBER OF SHARES REPRESENTED BY
EACH OUSTANDING CPO. THE RECAPITALIZATION INCREASED THE NUMBER OF THE
COMPANY'S SHARES BY A FACTOR OF 39 ON A PRE-SPLIT BASIS BUT DID NOT AFFECT
THE COMPANY'S TOTAL EQUITY OR DILUTE THE EQUITY INTEREST OF ANY
SHAREHOLDER.
IN CONNECTION WITH THE COMPANY'S RECAPITALIZATION IN JULY 2004, THE
COMPANY ISSUED 312,880,056 ADDITIONAL CPOS BY COMBINING 7,822,001,400
SERIES "A" SHARES, 6,883,361,232 SERIES "B" SHARES, 10,950,801,960 SERIES
"D" SHARES AND 10,950,801,960 SERIES "L" SHARES, NOT IN THE FORM OF CPOS,
WHICH WERE OWNED BY CERTAIN SHAREHOLDERS. ADDITIONALLY, IN OCTOBER, 2004,
THE COMPANY ISSUED 79,956,795 ADDITIONAL CPOS BY COMBINING 1,998,919,875
SERIES "A" SHARES, 1,759,049,490 SERIES "B" SHARES, 2,798,487,825 SERIES
"D" SHARES, AND 2,798,487,825 SERIES "L" SHARES, NOT IN THE FORM OF CPOS,
WHICH WERE ACQUIRED BY A COMPANY'S TRUST (EQUIVALENT TO 76,510,876 CPOS)
AND A COMPANY'S SUBSIDIARY (EQUIVALENT TO 3,445,919 CPOS).
IN APRIL, 2005, THE COMPANY ISSUED 4,285 ADDITIONAL CPOS BY
COMBINING 107,125 SERIES "A" SHARES, 94,270 SERIES "B" SHARES, 149,975
SERIES "D" SHARES AND 149,975 SERIES "L" SHARES, NOT IN THE FORM OF CPOS,
WHICH WERE ACQUIRED BY A TRUST FOR A GROUP'S PENSION PLAN.
IN APRIL 2005, THE COMPANY'S STOCKHOLDERS APPROVED A DIVIDEND PAYMENT
IN THE AMOUNT OF PS.1.35 PER CPO, EQUIVALENT TO PS.4,305,789 (PS.4,214,750
NOMINAL), WHICH WAS PAID IN CASH ON MAY 31, 2005.
AS OF DECEMBER 31, 2005, THE NUMBER OF SHARES AND CPOS ISSUED,
REPURCHASED AND OUTSTANDING IS PRESENTED AS FOLLOWS:
SHARES ISSUED REPURCHASED OUTSTANDING
---------------------- ------------------ ---------------- -----------------
SERIES "A" 124,736,244,175 10,490,391,260 114,245,852,915
SERIES "B" 60,269,682,796 6,299,092,783 53,970,590,013
SERIES "D" 92,133,721,715 6,271,477,644 85,862,244,071
SERIES "L" 92,133,721,715 6,271,477,644 85,862,244,071
------------------ ---------------- -----------------
369,273,370,401 29,332,439,331 339,940,931,070
================== ================ =================
THE COMPANY'S SHARES REPURCHASED, AS WELL AS THEIR NET COST, AS OF
DECEMBER 31, 2005, ARE PRESENTED AS A CHARGE TO STOCKHOLDERS' EQUITY, AS
FOLLOWS:
A, B, D, AND L SHARES
------------------------------------------------
IN THE FORM NOT IN THE
OF CPOS FORM OF CPOS TOTAL NET COST
------------------------------------------------------------------
REPURCHASE PROGRAM (1) 5,458,096,800 - 5,458,096,800 PS. (1,463,076)
OWNED BY A COMPANY'S SUBSIDIARY
(2) (3) 6,554,784,366 537,563,559 7,092,347,925 (1,506,352)
ACQUIRED BY A COMPANY'S TRUST (4) 8,951,772,492 7,830,222,114 16,781,994,606 (3,988,479)
ADVANCE FOR ACQUISITION OF SHARES (2) (87,239)
==================================================================
20,964,653,658 8,367,785,673 29,332,439,331 PS. (7,045,146)
==================================================================
(1) IN THE YEAR ENDED DECEMBER 31,2005 THE COMPANY REPURCHASED
3,645,462,600 SHARES IN THE FORM OF 31,157,800 CPOS, IN THE AMOUNT OF
PS. 1,065,165 (PS. 1,043,647 NOMINAL).
(2) IN CONNECTION WITH THE STOCK REPURCHASE PLAN.
(3) IN MARCH 2005, THE GROUP RELEASED 2,036,135,556 SHARES, IN THE FORM OF
17,402,868 CPOS, IN THE AMOUNT OF APPROXIMATELY PS.167,894, IN
CONNECTION WITH THE COMPANY'S STOCK PURCHASE PLAN. ALSO, IN JULY 2005,
THE GROUP RELEASED 1,114,850,763 SHARES, IN THE FORM OF 9,528,639
CPOS, IN THE AMOUNT OF APPROXIMATELY PS.144,985 IN CONNECTION WITH
SUCH PLAN.
(4) IN CONNECTION WITH THE LONG-TERM RETENTION PLAN.
EFFECTIVE DECEMBER 31,2005, THE GROUP ADOPTED IFRS2, "SHARE-BASED
PAYMENT", AND RECOGNIZED ACCUMULATIVE LOSS OF ACCOUNTING CHANGE AS OF THAT
DATE IN THE AMOUNT OF PS.323,534 AS AN ACCRUAL IN STOCKHOLDERS' EQUITY FOR
BENEFITS GRANTED TO EXCECUTIVES AND EMPLOYEES UNDER THE TERMS OF THE
GROUP'S STOCK PURCHASE PLAN AND LONG-TERM RETENTION PLAN (SEE NOTES 1 AND
11)
6. REPURCHASE OF SHARES:
AS OF DECEMBER 31, 2005, THE COMPANY MAINTAINS A RESERVE FOR
REPURCHASE OF SHARES, WHICH WAS APPROVED BY THE SHAREHOLDERS OF THE COMPANY
IN PRIOR YEARS BY APPROPRIATING FROM ACCUMULATED EARNINGS THE AMOUNT OF
PS.7,191,798. THIS RESERVE WAS USED IN 1999, 2000 AND 2003, IN THE AMOUNT
OF PS.295,702, PS.661,011 AND PS.490,502, RESPECTIVELY, IN CONNECTION WITH
THE REPURCHASE OF SHARES IN THOSE YEARS.
IN ACCORDANCE WITH THE MEXICAN SECURITIES LAW, ANY AMOUNT OF SHARES
REPURCHASED AND HELD BY THE COMPANY SHOULD BE RECOGNIZED AS A CHARGE TO
STOCKHOLDERS' EQUITY, AND ANY CANCELLATION OF SHARES REPURCHASED SHOULD BE
RECOGNIZED AS A REDUCTION OF THE COMPANY'S CAPITAL STOCK ISSUED FOR AN
AMOUNT PROPORTIONATE TO THE SHARES CANCELLED.
7. INTEGRAL COST OF FINANCING:
INTEGRAL COST OF FINANCING FOR THE YEARS ENDED DECEMBER 31, CONSISTED
OF:
2005 2004
--------------- ----------------
INTEREST EXPENSE (1) Ps. 2,134,499 Ps. 2,165,217
INTEREST INCOME (932,124) (678,391)
FOREIGN EXCHANGE LOSS, NET (2) 727,547 95,179
GAIN FROM MONETARY POSITION, NET (3) (147,892) (15,318)
--------------- ----------------
Ps. 1,782,030 Ps. 1,566,687
=============== ================
(1) INCLUDES RESTATEMENT OF UDIS OF PS.31,775 AND PS.177,845 NET IN 2005
AND 2004, RESPECTIVELY.
(2) NET FOREIGN EXCHANGE LOSS IN 2005 AND 2004 INCLUDES A NET LOSS FOREIGN
CURRENCY DERIVATIVE CONTRACTS OF PS.712,259 AND PS.99,468,
RESPECTIVELY. A FOREIGN EXCHANGE GAIN IN 2005 AND 2004 OF PS.416,856
AND PS.44,064, RESPECTIVELY, WERE HEDGED BY THE GROUP'S NET INVESTMENT
IN UNIVISION AND RECOGNIZED IN STOCKHOLDERS' EQUITY AS OTHER
COMPREHENSIVE LOSS.
(3) THE GAIN OR LOSS FROM MONETARY POSITION REPRESENTS THE EFFECTS OF
INFLATION, AS MEASURED BY THE NCPI IN THE CASE OF MEXICAN COMPANIES,
OR THE GENERAL INFLATION INDEX OF EACH COUNTRY IN THE CASE OF FOREIGN
SUBSIDIARIES, ON THE MONETARY ASSETS AND LIABILITIES AT THE BEGINNING
OF EACH MONTH. INCLUDES MONETARY LOSS IN 2005 AND 2004 OF PS.133,220
AND PS.187,800, RESPECTIVELY, ARISING FROM TEMPORARY DIFFERENCES OF
NON-MONETARY ITEMS IN CALCULATING DEFERRED INCOME TAX.
8. DEFERRED TAXES:
THE DEFERRED INCOME TAX LIABILITY AS OF DECEMBER 31, WAS DERIVED
FROM:
2005 2004
-------------- ----------------
ASSETS:
ACCRUED LIABILITIES Ps. 806,837 Ps. 784,965
GOODWILL 801,307 881,452
TAX LOSS CARRYFORWARDS 1,245,149 1,573,582
ALLOWANCE FOR DOUBTFUL ACCOUNTS 412,697 428,037
CUSTOMER ADVANCES 1,378,988 1,604,641
OTHER ITEMS 221,434 324,868
-------------- ----------------
4,866,412 5,597,545
-------------- ----------------
LIABILITIES:
INVENTORIES (216,332) (756,675)
PROPERTY, PLANT AND EQUIPMENT - NET (999,494) (1,178,787)
OTHER ITEMS (1,299,000) (1,650,498)
INNOVA (1,322,182) (1,620,793)
-------------- ----------------
(3,837,008) (5,206,753)
-------------- ----------------
DEFERRED INCOME TAX OF MEXICAN COMPANIES 1,029,404 390,792
DEFERRED TAX OF FOREIGN SUBSIDIARIES (56,313) 54,586
ASSETS TAX 1,384,233 1,475,108
VALUATION ALLOWANCE (2,555,530) (3,527,175)
-------------- ----------------
DEFERRED INCOME TAX LIABILITY (198,206) (1,606,689)
EFFECT ON CHANGE OF INCOME TAX RATES 32,549 189,534
-------------- ----------------
DEFERRED TAX LIABILITY OF CONTINUING
OPERATIONS Ps. (165,657) Ps. (1,417,155)
============== ================
9. EXTRAORDINARY ITEMS:
NO EXTRAORDINARY ITEMS, AS DEFINED BY MEXICAN GAAP BULLETIN A-7
"COMPARABILITY", WERE RECOGNIZED IN INCOME FOR THE YEARS ENDED DECEMBER 31,
2005 AND 2004.
10. DISCONTINUED OPERATIONS:
NO DISCONTINUED OPERATIONS, AS DEFINED BY MEXICAN GAAP BULLETIN C-15
"IMPAIRMENT IN THE VALUE OF LONG-LIVED ASSETS AND THEIR DISPOSAL," WERE
RECOGNIZED IN INCOME FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004.
11. CUMULATIVE EFFECT OF ACCOUNTING CHANGES:
EFFECTIVE DECEMBER 31, 2005, IN CONNECTION WITH THE ADOPTION OF THE
GUIDELINES OF IFRS 2, "SHARE-BASED PAYMENT", THE GROUP RECOGNIZED IN ITS
CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2005, A
CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE IN THE NET AMOUNT OF PS.323,534
(SEE NOTES 1 AND 5).
EFFECTIVE JANUARY 1, 2005, IN CONNECTION WITH THE ADOPTION OF CERTAIN
PROVISIONS OF REVISED BULLETIN D-3 (SEE NOTE 1), THE GROUP RECOGNIZED IN
ITS CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2005,
A CUMULATIVE LOSS EFFECT OF ACCOUNTING CHANGE IN THE AMOUNT OF PS.182,545,
NET OF A RELATED INCOME TAX BENEFIT OF PS.78,234.
BEGINNING APRIL 1, 2004, THE GROUP ADOPTED THE GUIDELINES OF FIN 46,
"CONSOLIDATION OF VARIABLE INTEREST ENTITIES", AND BEGAN TO INCLUDE IN ITS
CONSOLIDATED FINANCIAL STATEMENTS THE ASSETS, LIABILITIES AND RESULTS OF
OPERATIONS OF SKY MEXICO. AS A RESULT OF THIS ACCOUNTING CHANGE, THE GROUP
RECOGNIZED AT APRIL 1, 2004, A CONSOLIDATED CUMULATIVE LOSS EFFECT OF
PS.1,055,637, NET OF INCOME TAX IN THE AMOUNT OF PS.319,394, IN ITS
CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2004, IN
CONNECTION WITH INNOVA'S ACCUMULATED LOSSES NOT RECOGNIZED BY THE GROUP IN
PREVIOUS YEARS AND THE FIRST QUARTER OF 2004.
12. QUARTERLY NET RESULTS (HISTORICAL AND RESTATED):
THE QUARTERLY NET RESULTS FOR THE FOUR QUARTERS ENDED DECEMBER 31,
2005, ARE AS FOLLOWS:
HISTORICAL NET RESULT (1) RESTATED NET RESULT
-------------------------------- ---------------------------------
INDEX AT END
QUARTER ACCUMULATED QUARTER OF PERIOD ACCUMULATED QUARTER
-------------------- ----------------- -------------- -------------- --------------- ---------------
1/ 05 Ps. 594,052 Ps. 594,052 113.438 Ps. 609,045 Ps. 609,045
2/ 05 1,871,159 1,277,060 113.447 1,918,232 1,309,187
3/ 05 3,552,138 1,663,877 114.484 3,608,514 1,690,284
4/ 05 6,125,542 2,517,026 116.301 6,125,542 2,517,026
(1) AS REPORTED IN EACH QUARTER.
13. INFORMATION BY SEGMENTS:
INFORMATION BY SEGMENTS FOR THE YEARS ENDED DECEMBER 31, 2005 AND
2004, WERE AS FOLLOWS:
TOTAL INTERSEGMENT CONSOLIDATED OPERATING
REVENUES REVENUES REVENUES INCOME (LOSS)
--------------- -------------- -------------- ---------------
2005:
TELEVISION BROADCASTING Ps. 18,570,795 Ps. 548,423 Ps.18,022,372 Ps. 7,834,869
PAY TELEVISION NETWORKS 1,111,176 293,042 818, 134 492,160
PROGRAMMING EXPORTS 1,875,916 - 1,875,916 664,162
PUBLISHING 2,505,499 38,571 2,466,928 453,998
PUBLISHING DISTRIBUTION 402,193 10,223 391,970 (15,159)
SKY MEXICO 5,986,527 31,945 5,954,582 1,571,787
CABLE TELEVISION 1,405,145 2,884 1,402,261 175,566
RADIO 344,733 51,245 293,488 32,759
OTHER BUSINESSES 1,324,209 68,819 1,255,390 (224,884)
ELIMINATIONS AND CORPORATE
EXPENSES (1,045,152) (1,045,152) - (182,471)
--------------- -------------- -------------- ---------------
CONSOLIDATED TOTAL Ps. 32,481,041 Ps. - Ps.32,481,041 Ps. 10,802,787
=============== ============== ============== ===============
2004:
TELEVISION BROADCASTING Ps. 17,671,898 Ps. 423,566 Ps.17,248,332 Ps. 6,945,075
PAY TELEVISION NETWORKS 827,472 115,878 711,594 286,999
PROGRAMMING EXPORTS 1,981,205 - 1,981,205 748,676
PUBLISHING 2,163,131 5,145 2,157,986 414,599
PUBLISHING DISTRIBUTION 1,626,435 8,392 1,618,043 (49,952)
SKY MEXICO (1) 3,758,154 44,427 3,713,727 797,408
CABLE TELEVISION 1,165,514 3,641 1,161,873 76,791
RADIO 305,623 50,998 254,625 13,271
OTHER BUSINESSES 1,547,428 103,604 1,443,824 (228,651)
ELIMINATIONS AND CORPORATE
EXPENSES (755,651) (755,651) - (161,173)
--------------- -------------- -------------- ---------------
CONSOLIDATED TOTAL Ps. 30,291,209 Ps. - Ps.30,291,209 Ps. 8,843,043
=============== ============== ============== ===============
(1) BEGINNING APRIL 1, 2004, THE GROUP CONSOLIDATES THE FINANCIAL
STATEMENTS OF SKY MEXICO.
14. PREPAYMENT OF LONG-TERM DEBT:
DURING 2005, THE GROUP PREPAID CERTAIN LONG-TERM NOTES PAYABLE IN THE
AGGREGATE PRINCIPAL AMOUNT OF APPROXIMATELY U.S.$5.4 MILLION, WHICH
ORIGINALLY MATURED BETWEEN 2007 AND 2009.
IN MAY 2005, THE GROUP PREPAID ALL OF THE OUTSTANDING AMOUNTS OF A
PS.80.0 MILLION LONG-TERM LOAN, WHICH ORIGINALLY MATURED IN 2006.
IN JULY 2005, INNOVA ENTERED INTO A PS.1,012,000 LONG-TERM LOAN WITH
THE COMPANY, WITH A FIXED INTEREST RATE OF 10.55% PER ANNUM PAYABLE ON A
MONTHLY BASIS AND MATURITIES IN 2010 AND 2011. THE PROCEEDS OF THIS
INTERCOMPANY LOAN WERE USED BY INNOVA TO PREPAY ALL OF THE OUTSTANDING
AMOUNTS UNDER A SIMILAR CREDIT AGREEMENT WITH A MEXICAN BANK.
15. DISPOSAL OF INTEREST IN DTH TECHCO PARTNERS:
IN OCTOBER 2005, IN A SERIES OF RELATED TRANSACTIONS, THE GROUP
DISPOSED ITS 30% INTEREST IN DTH TECHCO PARTNERS ("TECHCO"), AND WAS
RELEASED OF ANY OBLIGATION IN CONNECTION WITH A GUARANTEE GRANTED BY THE
GROUP IN RESPECT OF CERTAIN TECHCO'S INDEBTEDNESS. AS A RESULT OF THIS
DISPOSAL, THE GROUP RECOGNIZED A PRETAX LOSS OF APPROXIMATELY PS.160,141 AS
OTHER EXPENSE, WHICH PRIMARILY CONSISTED OF THE AGGREGATE AMOUNT OF THE
CARRYING VALUE OF THE GROUP'S NET INVESTMENT IN TECHCO, WHICH INCLUDED ALL
OF THE OUTSTANDING AMOUNTS RECEIVABLE IN CONNECTION WITH LONG-TERM LOANS
MADE BY THE GROUP TO TECHCO.
16. INVESTMENTS IN ASSOCIATES
IN THE FOURTH QUARTER OF 2005, THE GROUP MADE INITIAL CAPITAL
CONTRIBUTIONS FOR AN AGGREGATE AMOUNT OF U.S.$25.0 MILLION REPRESENTING A
25% INTEREST IN CONCESIONARIA VUELA COMPANIA DE AVIACION, S.A. DE C.V.
("VOLARIS"), A NEW LOW-COST CARRIER AIRLINE WITH A CONCESSION TO OPERATE IN
MEXICO. VOLARIS EXPECTS TO START OPERATIONS IN MARCH 2006.
IN THE FOURTH QUARTER OF 2005, THE GROUP ACQUIRED A 40% INTEREST OF
THE OUTSTANDING CAPITAL STOCK OF GESTORA DE INVERSIONES AUDIOVISUALES LA
SEXTA, S.A.U. ("LA SEXTA") FOR AN AGGREGATE AMOUNT OF APPROXIMATELY 1.2
MILLION EUROS (PS.15,321). LA SEXTA IS A SPANISH COMPANY TO WHICH THE
GOVERNMENT OF SPAIN GRANTED A CONCESSION FOR A FREE-TO AIR TELEVISION
CHANNEL. LA SEXTA IS EXPECTED TO START OPERATIONS IN THE SECOND QUARTER OF
2006.
17. SKY MEXICO'S SUBSEQUENT EVENT
IN FEBRUARY 2006, SKY MEXICO AND ITS PARTNERS COMPLETED CERTAIN
TRANSACTIONS IN CONNECTION WITH A SERIES OF AGREEMENTS ENTERED INTO BY THE
GROUP, THE DIRECTV GROUP, INC. ("DIRECTV") AND NEWS CORP. IN OCTOBER 2004,
BY WHICH AFFILIATES OF DIRECTV ACQUIRED THE DIRECT AND INDIRECT EQUITY
INTERESTS IN SKY MEXICO, FORMERLY HELD BY NEWS CORP. AND LIBERTY MEDIA.
ACCORDINGLY, THE GROUP AND DIRECTV CURRENTLY OWN 52.7% AND 47.3%,
RESPECTIVELY, OF THE EQUITY OF SKY MEXICO. IN ADDITION, THE GROUP HAS THE
RIGHT TO ACQUIRE TWO-THIRDS OF THE EQUITY INTEREST THAT DIRECTV ACQUIRED
FROM LIBERTY MEDIA. IF THE GROUP ELECTS TO ACQUIRE THIS INTEREST, THEN THE
GROUP AND DIRECTV WOULD OWN 58.7% AND 41.3%, RESPECTIVELY, OF SKY MEXICO'S
EQUITY.
- - - - - - - - -
ANALYSIS OF INVESTMENTS IN SHARES
SUBSIDIARIES
ANNEX 3
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------
NUMBER %
COMPANY NAME MAIN ACTIVITIES OF SHARES OWNERSHIP
----------------------------------------------------------------------------------------------------------------------
1 CORPORATIVO VASCO DE QUIROGA, PROMOTION AND DEVELOPMENT OF
S.A. DE C.V. COMPANIES 12,511,529 100.00
2 CVQ ESPECTACULOS, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 13,400,500 100.00
3 DTH EUROPA, S.A. PROMOTION AND DEVELOPMENT OF
COMPANIES 1,080,182 90.25
4 EDITORA FACTUM, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 666,569,438 100.00
5 EDITORIAL TELEVISA, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 1,037,498 100.00
6 FACTUM MAS, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 5,482,020,219 100.00
7 GRUPO DISTRIBUIDORAS INTERMEX, DISTRIBUTION OF BOOKS
S.A. DE C.V. AND MAGAZINES 242,378,445 100.00
8 CAMPUS AMERICA, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 418,881,301 100.00
9 PROMO-INDUSTRIAS PROMOTION AND DEVELOPMENT OF
METROPOLITANAS, S.A. DE C.V. COMPANIES 1,185,147 100.00
10 SISTEMA RADIOPOLIS, S.A. DE C.V. COMMERCIALIZATION OF
RADIO PROGRAMMING 76,070,313 50.00
11 TELEPARABOLAS, S.L. MAINTENANCE OF PARABOLIC DISHES 1,500 100.00
12 TELESISTEMA MEXICANO, S.A. DE C.V. COMMERCIALIZATION OF TELEVISION 149,442,880 100.00
13 TELEVISA ARGENTINA, S.A. COMMERCIAL OPERATION OF TELEVISION 1,425,000 100.00
14 TELEVISA JUEGOS, S.A. DE C.V. PROMOTION AND DEVELOPMENT OF
COMPANIES 65,249 100.00
15 TELEVISION INDEPENDIENTE DE PROMOTION AND DEVELOPMENT OF
MEXICO, S.A. DE C.V. COMPANIES 21,135,608 100.00
16 CAPITALIZED INTEGRAL COST OF FOR THE YEARS 1994, 1995, 1996 & 1998 - -
FINANCING
ANALYSIS OF INVESTMENTS IN SHARES
ASSOCIATES
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
------------------------------------------------------------------------------------------------------------------------------
TOTAL AMOUNT
(Thousands of Mexican Pesos)
NUMBER % ----------------------------
COMPANY NAME MAIN ACTIVITIES OF SHARES OWNERSHIP ACQUISITION BOOK
COST VALUE
------------------------------------------------------------------------------------------------------------------------------
1 ARGOS COMUNICACION, S.A. DE C.V. OPERATION AND/OR
BROADCASTING OF T.V. 33,000,000 15.30 137,000 32,612
2 CONTROLADORA VUELA COMPANIA
DE AVIACION, S.A. DE C.V. CARRIER AIRLINE 15 25.00 270,824 240,465
3 DIBUJOS ANIMADOS MEXICANOS PRODUCTION OF
DIAMEX, S.A. DE C.V. ANIMATED CARTOONS 1,735,560 49.00 4,384 752
4 EDITORIAL CLIO, LIBROS Y VIDEOS, PUBLISHING AND PRINTING
S.A. DE C.V. OF BOOKS AND MAGAZINES 3,227,050 30.00 32,270 16,110
5 ENDEMOL MEXICO, S.A. DE C.V. COMMERCIALIZATION OF
TELEVISION PROGRAMMING 24,500 49.00 25 13,034
6 EN VIVO ESPECTACULOS, S. DE R.L. LIVE ENTERTAINMENT IN
DE C.V. MEXICO 2 100.00 4,898 1,205
7 GESTORA DE INVERSIONES COMMERCIALIZATION OF
AUDIOVISUALES, S.A.U. TELEVISION PROGRAMMING 240,405 40.00 15,321 15,321
8 MAS FONDOS, S.A. DE C.V. MUTUAL FUND DISTRIBUTION
COMPANY 99,758 46.55 99,758 9,798
9 METROS CUBICOS, S.A. DE C.V. PORTAL INTERNET 2,089,343 18.65 43,031 4,032
10 OCESA ENTRETENIMIENTO, S.A. DE LIVE ENTERTAINMENT IN
C.V. MEXICO 14,100,000 40.00 1,095,581 500,747
11 PUBLICIDAD VIRTUAL LATINOAMERICANA, TV ADVERTISING
LTDA. SERVICES 1 100.00 20,985 (1,105)
14 TELEVISA EMI MUSIC, S.A DE C.V. MUSIC RECORDING 25 50.00 25 (1,029)
TELEVISORA DEL YAQUI, S.A. DE C.V. OPERATION AND/OR
BROADCASTING OF T.V. 4,124,986 15.00 412 6,806
UNIVISION COMMUNICATIONS, INC. BROADCASTING OF T.V.
SPANISH PROGRAMS 30,187,534 9.86 5,602,976 5,682,059
------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN ASSOCIATES 7,327,490 6,520,807
------------------------------------------------------------------------------------------------------------------------------
OTHER PERMANENT INVESTMENTS 1,066,702
------------------------------------------------------------------------------------------------------------------------------
TOTAL 7,327,490 7,587,509
------------------------------------------------------------------------------------------------------------------------------
NOTES
CREDIT BREAK DOWN
(Thousands of Mexican Pesos)
ANNEX 5
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS DENOMINATED IN PESOS (Thousands of $)
TIME INTERVAL
AMORTIZATION INTEREST --------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------------------------------
BANKS
-----------------------------------------------------------------------------------------------------------------------------------
FOREIGN TRADE
-----------------------------------------------------------------------------------------------------------------------------------
SECURED
-----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS
-----------------------------------------------------------------------------------------------------------------------------------
BANAMEX, S.A. 4/23/2012 10.35 2,000,000
BANAMEX, S.A. 5/21/2009 9.70 1,162,460
BANAMEX, S.A. 5/1/2008 8.93 240,000 480,000
CORPORACION FINANCIERA DE ARRENDAMIENTO 7/31/2006 17.11 446
BANK OF AMERICA 3/31/2010 5.64
SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.50
LEASING DE COLOMBIA 6/28/2009 13.37
BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86
LEASING DE OCCIDENTE 4/29/2007 17.62
SANTANDER CENTRAL HISPANO LEASING, S.A. 1/24/2006 14.74
-----------------------------------------------------------------------------------------------------------------------------------
OTHER
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS - 240,446 - 480,000 1,162,460 2,000,000
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS IN FOREIGN CURRENCY (Thousands of $)
TIME INTERVAL
AMORTIZATION INTEREST --------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------------------------------
BANKS
-----------------------------------------------------------------------------------------------------------------------------------
FOREIGN TRADE
-----------------------------------------------------------------------------------------------------------------------------------
SECURED
-----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS
-----------------------------------------------------------------------------------------------------------------------------------
BANAMEX, S.A. 4/23/2012 10.35
BANAMEX, S.A. 5/21/2009 9.70
BANAMEX, S.A. 5/1/2008 8.93
CORPORACION FINANCIERA DE ARRENDAMIENTO 7/31/2006 17.11
BANK OF AMERICA 3/31/2010 5.64 532 532 532 532 26,824
SUNTRUST BANK MIAMI, NATIONAL 4/1/2008 4.50 4,251 4,251 4,250
LEASING DE COLOMBIA 6/28/2009 13.37 360 47 53 178
BANCO DE BILBAO VIZCAYA, S.A. 1/30/2006 5.86 359
LEASING DE OCCIDENTE 4/29/2007 17.62 183 123
SANTANDER CENTRAL HISPANO LEASING, S.A. 1/24/2006 14.74 5
-----------------------------------------------------------------------------------------------------------------------------------
OTHER
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS - 5,690 4,953 4,835 710 26,824
-----------------------------------------------------------------------------------------------------------------------------------
CREDIT BREAK DOWN
(Thousands of Mexican Pesos)
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS DENOMINATED IN PESOS (Thousands of $)
TIME INTERVAL
AMORTIZATION INTEREST --------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------------------------------
STOCK MARKET
-----------------------------------------------------------------------------------------------------------------------------------
LISTED STOCK EXCHANGE
-----------------------------------------------------------------------------------------------------------------------------------
UNSECURED
-----------------------------------------------------------------------------------------------------------------------------------
SECURED
-----------------------------------------------------------------------------------------------------------------------------------
PRIVATE PLACEMENTS
-----------------------------------------------------------------------------------------------------------------------------------
UNSECURED
-----------------------------------------------------------------------------------------------------------------------------------
UDI DENOMINATED-NOTES 4/13/2007 8.15 941,071
HOLDERS 5/13/2006 12.49
HOLDERS 9/13/2011 8.41
HOLDERS 3/11/2032 8.94
HOLDERS 3/18/2025 6.97
HOLDERS 9/19/2013 9.86
-----------------------------------------------------------------------------------------------------------------------------------
SECURED
----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS IN FOREIGN CURRENCY (Thousands of $)
TIME INTERVAL
AMORTIZATION INTEREST --------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------------------------------
STOCK MARKET
-----------------------------------------------------------------------------------------------------------------------------------
LISTED STOCK EXCHANGE
-----------------------------------------------------------------------------------------------------------------------------------
UNSECURED
-----------------------------------------------------------------------------------------------------------------------------------
SECURED
-----------------------------------------------------------------------------------------------------------------------------------
PRIVATE PLACEMENTS
-----------------------------------------------------------------------------------------------------------------------------------
UNSECURED
-----------------------------------------------------------------------------------------------------------------------------------
UDI DENOMINATED-NOTES 4/13/2007 8.15
HOLDERS 5/13/2006 12.49 56,777
HOLDERS 9/13/2011 8.41 37,544
HOLDERS 3/11/2032 8.94 764,587
HOLDERS 3/18/2025 6.97 3,187,950
HOLDERS 9/19/2013 9.86 6,375,900
3,187,950
-----------------------------------------------------------------------------------------------------------------------------------
SECURED
-----------------------------------------------------------------------------------------------------------------------------------
CREDIT BREAK DOWN
(Thousands of Mexican Pesos)
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS DENOMINATED IN PESOS (Thousands of $)
TIME INTERVAL
AMORTIZATION INTEREST --------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK MARKET 0 0 941,071 0 0 0
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 12/31/2005 1,414,639
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 12/31/2005
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS - 1,414,639 - - - -
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES AND
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CREDITS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 12/31/2005 1,325,363 123,767
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 9/7/2000 11.50%
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL - 2,980,448 1,064,838 480,000 1,162,460 2,000,000
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
AMORTIZATION OF CREDITS DENOMINATED IN PESOS (Thousands of $)
TIME INTERVAL
AMORTIZATION INTEREST --------------------------------------------------------------
CREDIT TYPE / INSTITUTION DATE RATE CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK MARKET 0 94,321 0 0 0 13,516,387
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 12/31/2005
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 12/31/2005 1,540,084
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS - 1,540,084 - - - -
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT LIABILITIES AND
-----------------------------------------------------------------------------------------------------------------------------------
OTHER CREDITS
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 12/31/2005
-----------------------------------------------------------------------------------------------------------------------------------
VARIOUS 9/7/2000 11.50% 481,198 422,379 95,051 106,577 900,533
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL - 2,121,293 427,332 99,886 107,287 14,443,744
-----------------------------------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATES FOR THE CREDITS DENOMINATED IN FOREIGN CURRENCY
WERE AS FOLLOWS:
10.6265 PESOS PER U.S. DOLLAR
0.0046 PESOS PER COLOMBIAN PESO
12.5864 PESOS PER EURO
MONETARY FOREIGN CURRENCY POSITION
(Thousands of Mexican Pesos)
ANNEX 6
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------
DOLLARS OTHER CURRENCIES
-------------------------- --------------------------- TOTAL
TRADE BALANCE THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS
OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS
---------------------------------------------------------------------------------------------------------
MONETARY ASSETS 650,314 6,910,562 150,223 1,596,344 8,506,906
LIABILITIES POSITION 1,589,903 16,895,104 33,317 354,043 17,249,147
SHORT-TERM LIABILITIES POSITION 171,366 1,821,021 32,925 349,877 2,170,898
LONG-TERM LIABILITIES POSITION 1,418,537 15,074,083 392 4,166 15,078,249
---------------------------------------------------------------------------------------------------------
NET BALANCE (939,589) (9,984,542) 116,906 1,242,301 (8,742,241)
---------------------------------------------------------------------------------------------------------
NOTES
THE EXCHANGE RATES USED FOR TRANSLATION WERE AS FOLLOWS :
10.6265 PESOS PER U.S. DOLLAR
12.5864 PESOS PER EURO
3.5047 PESOS PER ARGENTINEAN PESO
0.0207 PESOS PER CHILEAN PESO
0.0046 PESOS PER COLOMBIAN PESO
3.0972 PESOS PER PERUVIAN NUEVO SOL
18.4500 PESOS PER POUNDS STERLING
10.6265 PESOS PER ECUADORIAN SUCRE
10.6265 PESOS PER PANAMANIAN BALBOA
0.0049 PESOS PER VENEZUELAN BOLIVAR
THIS INFORMATION IS REPRESENTED ON A CONSOLIDATED BASIS AND INCLUDES,
ACCORDINGLY, INFORMATION OF FOREIGN SUBSIDIARIES.
RESULT FROM MONETARY POSITION
(Thousands of Mexican Pesos)
ANNEX 7
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------
(ASSET) LIABILITY MONTHLY
MONTH MONETARY MONETARY MONETARY MONTHLY PROFIT
ASSETS LIABILITIES POSITION INFLATION AND (LOSS)
----------------------------------------------------------------------------------------------------
JANUARY 29,889,494 36,654,700 (6,765,206) 0.00 (237)
FEBRUARY 24,582,860 29,649,166 (5,066,306) 0.00 (16,876)
MARCH 23,783,753 28,449,192 (4,665,439) 0.00 (21,027)
APRIL 21,760,070 27,249,798 (5,489,728) 0.00 (19,549)
MAY 21,223,758 31,408,680 (10,184,922) 0.00 25,585
JUNE 19,749,708 30,545,054 (10,795,346) 0.00 10,353
JULY 18,255,578 29,832,858 (11,577,280) 0.00 (45,302)
AUGUST 16,658,758 28,896,515 (12,237,757) 0.00 (14,612)
SEPTEMBER 13,306,353 26,219,364 (12,913,011) 0.00 (51,742)
OCTOBER 12,566,792 25,957,258 (13,390,466) 0.00 (32,860)
NOVEMBER 12,424,433 25,636,243 (13,211,810) 0.00 (95,085)
DECEMBER 13,126,849 25,787,114 (12,660,265) 0.00 (7,776)
RESTATEMENT - (3,681)
CAPITALIZATION - -
FOREIGN CORP. - 1,812
OTHER - 123,105
----------------------------------------------------------------------------------------------------
TOTAL (147,892)
----------------------------------------------------------------------------------------------------
NOTES
THE AMOUNT REFLECTED IN "OTHER" INCLUDES PS. 124,082, FROM MONETARY
POSITION DERIVED FROM DEFERRED TAXES, WHICH WAS CLASSIFIED IN THE DEFERRED
INCOME TAX PROVISION IN ACCORDANCE WITH THE GUIDELINES PROVIDED BY BULLETIN
D-4 FOR DEFERRED TAXES.
DEBT INSTRUMENTS
ANNEX 8
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------
FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE
THE AGREEMENTS OF THE U.S.$300 MILLION (OF WHICH APPROXIMATELY U.S.$75.5
MILLION ARE OUTSTANDING AS OF DECEMBER 31, 2005), U.S.$600 MILLION AND
U.S.$300 MILLION SENIOR NOTES ISSUED BY GRUPO TELEVISA, S.A. WITH MATURITY
IN 2011, 2025 AND 2032, RESPECTIVELY, CONTAIN CERTAIN COVENANTS THAT LIMIT
THE ABILITY OF THE COMPANY AND ITS SUBSIDIARIES ENGAGED IN TELEVISION
OPERATIONS TO INCUR OR ASSUME LIENS, PERFORM SALE AND LEASEBACK
TRANSACTIONS, AND CONSUMMATE CERTAIN MERGERS, CONSOLIDATIONS OR SIMILAR
TRANSACTIONS.
THE AGREEMENT OF THE U.S.$300 MILLION SENIOR NOTES ISSUED BY INNOVA, S. DE
R.L. DE C.V. ("INNOVA") WITH MATURITY IN 2013, CONTAINS CERTAIN COVENANTS
THAT LIMIT THE ABILITY OF INNOVA AND ITS RESTRICTED SUBSIDIARIES WITH
RESPECT TO INDEBTEDNESS, LIENS, SALES AND LEASEBACKS, RESTRICTED PAYMENTS,
ASSET SALES, AND CERTAIN MERGERS, CONSOLIDATIONS AND SIMILAR TRANSACTIONS.
ACTUAL SITUATION OF FINANCIAL RESTRICTIONS
AT DECEMBER 31, 2005, THE GROUP WAS IN COMPLIANCE WITH THE FINANCIAL
RESTRICTIONS OF THE CONTRACTS RELATED TO THE LONG-TERM SENIOR NOTES
DESCRIBED ABOVE.
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
-------------------------------------------------------------------------------------------------------------
PLANT OR CENTER ECONOMIC ACTIVITY PLANT UTILIZATION
CAPACITY (%)
-------------------------------------------------------------------------------------------------------------
TELEVISION: 0 0
CORPORATIVO SANTA FE HEADQUARTERS 0 0
TELEVISA SAN ANGEL PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
TELEVISA CHAPULTEPEC PRODUCTION AND BROADCASTING PROGRAMMING. 0 0
REAL ESTATE LAND AND UNOCCUPIED, BUILDING, 0 0
PARKING LOTS, ADMINISTRATIVE 0 0
OFFICES, RADIO ANTENNAS, 0 0
TELEVISION STATIONS FACILITIES. 0 0
TRANSMISSION STATIONS BROADCASTER STATIONS. 0 0
PUBLISHING: 0 0
EDITORIALS ADMINISTRATION, SALES, PRODUCTION, 0 0
STORAGE AND DISTRIBUTION OF 0 0
MAGAZINES AND NEWSPAPERS. 0 0
RADIO: 0 0
SISTEMA RADIOPOLIS, S.A. DE C.V. BROADCASTER STATIONS. 0 0
CABLE TELEVISION: 0 0
CABLEVISION, S.A. DE C.V. CABLE TELEVISION, SIGNAL CONDUCTION 0 0
AND TRANSMISSION EQUIPMENT. 0 0
OTHER BUSINESSES: 0 0
IMPULSORA DEL DEPORTIVO - SOCCER, SOCCER TEAMS, TRAINING 0 0
NECAXA, S.A. DE C.V. AND CLUB FACILITIES, ADMINISTRATIVE OFFICES AND 0 0
DE FUTBOL AMERICA, S.A. DE C.V. THE AZTECA STADIUM. 0 0
NOTES
MAIN RAW MATERIALS
ANNEX 10
CONSOLIDATED
AUDITED INFORMATION Final Printing
----------------------------------------------------------------------------------------------------------------------------------
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
(%)
----------------------------------------------------------------------------------------------------------------------------------
PROGRAMS AND FILMS ANIME CREATIVE
CORPORATION 0.84
AMERICA FILMS,
S.A. DE C.V. 0.02
CIMA FILMS,
S.A. DE C.V. 0.04
CINEMAS LUMIERE,
S.A. DE C.V. 0.04
CINEMATOGRAFICA
CALDERON, S.A. 0.69
CINEMATOGRAFICA
FILMEX, S.A. 0.04
CINEMATOGRAFICA
JALISCO, S.A. 0.06
CINEMATOGRAFICA
RODRIGUEZ, S.A. 0.30
CHURUBUSCO,
S.A. DE C.V. 0.10
DIANA INTERNACIO-
NAL FILMS, S.A. 0.09
DIRSOL, S.A. 0.06
DISTRIBUIDORA RO-
MARI, S.A. DE C.V. 1.89
GRUPO GALINDO,
S.A. DE C.V. 0.07
GUSSI, S.A. DE C.V. 2.95
HITS MOVIE VIDEO,
S.A. DE C.V. 0.03
INSTITUTO MEXICA-
NO DE CINE, S.A. 0.08
MICH AND RO-
ENTERTAINMENT,
S.A. DE C.V. 0.15
NUVISION, S.A. 0.78
OLALLO RUBIO
GRANADO 0.04
ORO FILMS,
S.A. DE C.V. 0.13
PANAMA INTER-
NATIONAL FILMS 0.02
PELICULAS CLA-
SICAS, S.A. 0.02
PELICULAS NACIO-
NALES, S.A. 0.02
PELICULAS RODRI-
GUEZ, S.A. 0.57
PELICULAS Y VI-
DEOS INTERNACIO-
NALES, S.A. 0.08
PRODUCCIONES
AGUILA, S.A. 0.19
PRODUCCIONES
GAER, S.A. 0.02
PRODUCCIONES
GALUBI, S.A. 0.05
PRODUCCIONES
GONZALO ELVIRA 0.03
PRODUCCIONES
MATOUK, S.A. 0.37
PRODUCCIONES
POTOSI, S.A. 0.03
PRODUCCIONES
TOBARI, S.A. 0.03
PROMOCIMEX,
S.A. DE C.V. 0.03
QUALITY FILMS,
S.A. DE C.V. 0.07
ROBERTO GINART
AVALOS 0.03
SECINE, S.A. DE C.V. 0.09
SHOW CINEMA,
S.A. DE C.V. 0.07
VIDEO PRODUCCIO-
NES TIJUANA, S.A. 0.02
VIDEOVISA , S.A.
DE C.V. 0.02
OTHER 0.50
PROGRAMS AND FILMS 4KIDS ENTERTAIN-
MENT NO 0.05
ALFRED HABER
DISTRIBUTION, INC. NO 0.32
ALLIANCE ATLAN-
TIS INTERNATIONAL NO 1.61
AMERICA PRO-
DUCCIONES, S.A. NO 2.16
BAYWOOD
USA,LLC. NO 0.10
BBC WORDLWIDE
AMERICA, INC. NO 0.11
BELLEVILLE
INVESTMENT,
LTD. NO 0.02
BETAFILM GMBH
& CO. NO 0.73
BEVERLY HILLS
ENTERTAINMENT NO 0.06
BREAKTHROUGH
ENTERTAINMENT NO 0.06
BUENAVISTA
INTERNATIONAL,
INC. NO 0.25
CANAL + DISTRIBU-
TION NO 0.06
CARSEY WERNER
DISTRIBUTION,
INC. NO 0.18
CBS BROADCAST
INTERNATIONAL NO 1.15
CCC OF AMERICA,
INC. NO 0.05
CINAR FILMS, INC. NO 0.07
CONSTELLATION
PICTURES, INC. NO 2.37
CPT HOLDINGS,
INC. NO 2.07
CROMOSOMA,
S.A. NO 0.18
CROWN MEDIA
DISTRIBUTION NO 0.34
DIC ENTERTAIN-
MENT, CORP. NO 0.08
DORLING KINDER-
SLEY VISION NO 0.09
DREAMWORKS NO 2.76
ENTERTAINMENT
RIGHTS DIST NO 0.24
FIREWORKS INTER-
NATIONAL NO 0.62
FREMANTLE MEDIA
LIMITED NO 0.11
HASBRO INTERNA-
TIONAL,INC. NO 0.22
HEARTS ENTER-
TAINMENT, INC. NO 0.58
HIGHPOINT PRO-
DUCTIONS, INC. NO 0.24
INDEPENDENT
INTERNATIONAL
T.V. INC. NO 3.37
KUSHNER-LOCKE
INTERNATIONAL NO 0.21
LUCAS FILM,
LTD. NO 1.59
LE MONDE
ENTERTAINMENT,
INC. NO 0.19
MENDELSON
PAWS PRODUC-
TIONS, INC. NO 0.12
MGM/UA TELECOM-
MUNICATIONS, INC. NO 3.50
MORGAN CREEK
INTERNATIONAL NO 0.58
MOVIEMEX INTER-
NATIONAL, INC. NO 0.06
MTV NETWORKS
A DIVISION OF
VIACOM INT. NO 1.15
MULTIFILMS,
B.V. NO 1.10
MYRIAM BALLES-
TEROS PRODUC-
TIONS, INC. NO 0.07
NELVANA DKC,
INC. NO 0.08
NELVANA INTER-
NATIONAL NO 0.33
NEW LATIN
IMAGE CORPO-
RATION, INC. NO 0.09
NU IMAGE
INCORPORATED NO 0.21
PALOMA PRO-
DUCTIONS, LLC. NO 3.84
PARAMOUNT
PICTURES ,
CORP. NO 3.99
PEAKVIEWING
TRANSATLANTIC NO 0.05
RAINBOW,
S.R.L. NO 0.09
SALSA
DISTRIBUTION NO 0.12
SALSA ENTER-
TAINMENT, INC. NO 1.01
SESAME
WORKSHOP NO 0.24
SHOGAKUKAN
PRODUCTIONS,
INC. NO 0.06
SONY CORPORA-
TION OF AMERICA NO 11.07
SOUTHERN
STAR, INC. NO 0.10
STUDIO CANAL
IMAGE NO 0.41
TELESCREEN
DISTRIBUTION,
INC. NO 0.07
TELEVIX ENTER-
TAINMENT, S.A. NO 0.09
TEPUY USA COR-
PORATION NO 0.56
TF1 INTERNA-
TIONAL, INC. NO 0.11
TOEI ANIMATION
CO., LTD NO 0.61
TOKYO BROAD-
CASTING SYSTEM NO 0.10
TOP ENTERTAIN-
MENT PRODUC-
TIONS, INC. NO 0.07
TV LOONLAND
AG NO 0.05
TWENTIETH CEN-
TURY FOX, INC. NO 7.36
UNIVERSAL
STUDIOS INTER-
NATIONAL, B.V. NO 8.38
VENEVISION IN-
TERNACIONAL,
INC. NO 0.13
VENTURA FILM
DISTRIBUTORS BV NO 0.41
VIACON LATINO
AMERICANA, INC. NO 0.05
WARNER BROS.
INTERNATIONAL
TELEVISION NO 18.74
WELLSPRING
MEDIA, INC. NO 0.07
WHILAND COMPANY NO 0.49
ZACH MOTION
PICTURES, INC. NO 0.10
METRO GOLDWYN
MAYER INTER-
NATIONAL NO 0.80
OTHER NO 0.64
COAXIAL CABLE RG
MAYA 60 NACIONAL DE
CONDUCTORES,
S.A. DE C.V. 4.02
IDENTIFICATION PLAQUE RIVANDI, S.A. DE C.V. 0.01
CABLEMODEMS MOTOROLA, INC. NO 4.02
HILTI BOLT HILTI MEXICANA,
S.A. DE C.V. NO 0.02
SWITCH CABLENETWORK
MEXICO NO 0.02
TWO OUTLET DEVICE AC 200 TVC CORPORATION YES 0.02
DECODER MOTOROLA, INC. NO 74.38
COUCHE PAPER PAPELERA MOHGA-
BBA, S.A. 0.39
SUMINISTROS Y
SERVICIOS BROM 0.64
MAG PAPER 0.11
PRODUCTORA
COMERCIALIZA-
DORA Y EDITORA 0.14
OFFSET MULTICO-
LOR, S.A. 1.84
PROCESOS INDUS-
TRIALES DE PAPEL 0.45
IMPRESOS MOINO, 0.10
BULKLEY DUNTON 1.68
KIMBERLY CLARK 0.08
PAPEL, S.A. 0.06
COUCHE PAPER STORAM ENSON YES 8.12
BULKLEY DUNTON YES 16.58
M REAL YES 1.25
MYLLLIKOSKI
PAPEL YES 4.34
TEMBEC, INC. YES 0.01
FINNIPAP YES 8.09
WEB SOURCE YES 0.01
BOWATER, INC. YES 1.72
NORKE CANADA YES 0.13
UPM YES 0.11
PAPER AND IMPRESSION PRODUCTORA CO-
MERCIALIZADORA Y
EDITORES DE LI-
BROS , S.A. DE C.V. 7.80
OFFSET
MULTICOLOR 13.37
IMPRESOS MOINO 1.74
PROCESOS IND
DE PAPEL, S.A. 2.75
BARNICES PARA
EDICIONES DE
LIBROS, S.A. 0.66
SERVICIOS PRO-
FESIONALES
DE IMPRESION,
S.A. DE C.V. 1.41
IMPRESOS EN
OFFSET Y SERI-
GRAFIA, S.A. 0.11
LORI DER, S.A.
DE C.V. 0.04
LITOGRAFIA
MAGNO GRAFT,
S.A. 0.45
LOVA IMPRE-
SORES, S.A. 0.02
GRAFICA LA
PRENSA, S.A. 0.19
QUEBECOR
WORDL MEXICO 0.66
REPRODUCCIO-
NES FOTOME-
CANICAS 0.63
PAPER AND IMPRESSION QUEBECOR
CHILE, S.A. YES 3.04
QUEBECOR
WORLD, INC. YES 0.71
GRUPO OP GRA-
FICAS, S.A. YES 0.53
PRINTER COLOM-
BINA, S.A. YES 0.02
ST. IVES, INC. YES 7.74
BEST LITHO YES 0.25
EDITORES, S.A. YES 0.14
RR DONELLY YES 2.25
QUAD GRAPHICS YES 3.21
PRO-OFFSET EDI-
TORIAL, LTDA. YES 0.18
NOTES
SALES DISTRIBUTION BY PRODUCT
SALES
ANNEX 11
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
----------------------------------------------------------------------------------------------------------------------------------
NET SALES MAIN
------------------- MARKET -------------------------------------------------------------------
MAIN PRODUCTS VOLUME AMOUNT SHARE TRADEMARKS CUSTOMERS
(%)
----------------------------------------------------------------------------------------------------------------------------------
DOMESTIC SALES
INTERSEGMENT ELIMINATIONS (1,035,555)
TELEVISION:
PROGRAMMING HALF HOURS PRODUCED
(DOMESTIC)
ADVERTISED TIME SOLD (HALF HOURS) 7 17,947,239 TELEFONOS DE MEXICO, S.A. DE C.V.
COMPANIA PROCTER & GAMBLE DE MEXICO,
S. DE R. L. DE C.V.
SABRITAS, S DE R.L. DE C.V.
THE COCA-COLA EXPORT CORPORATION
SUCURSAL EN MEXICO
BIMBO, S.A. DE C.V.
NESTLE MEXICO, S.A. DE C.V.
PEPSI COLA MEXICANA, S. DE R.L.
DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
DANONE DE MEXICO, S.A. DE C.V.
PRODUCCIONES INFOVISION, S.A. DE C.V.
KELLOGG COMPANY MEXICO, S. DE R.L.
DE C.V.
COMPANIA CERVECERA DE ZACATECAS, S.A.
DE C.V.
MATTEL DE MEXICO, S.A. DE C.V.
FRABEL, S.A. DE C.V.
OTHER INCOME 122,234 VARIOUS
PROGRAMMING FOR PAY TELEVISION:
SALE OF SIGNALS 711,578 OPERADORA MEGACABLE, S.A. DE C.V.
T.V. CABLE, S.A. DE C.V.
TELECABLE CENTRO OCCIDENTE, S.A.
DE C.V.
TELEVISION INTERNACIONAL, S.A. DE C.V.
SERVICIOS DE COMUNICACION POR CABLE,
S.A. DE C.V.
TELEVICABLE DEL CENTRO, S.A. DE C.V.
T.V. CABLE DE PROVINCIA, S.A. DE C.V.
CABLE OPERADORA DE LA COMARCA, S.A.
DE C.V.
CABLENET INTERNATIONAL, S.A.DE C.V.
T.V. POR CABLE DEL NORTE DE SONORA,
S.A. DE C.V.
ADVERTISED TIME SOLD 118,151 BANCO MERCANTIL DEL NORTE, S.A.
COMPANIA CERVECERA DE ZACATECAS, S.A.
DE C.V.
VPN DE MEXICO, S.A. DE C.V.
PROCTER & GAMBLE MEXICO, S DE R.L.
DE C.V.
CONTROL MEDIA, S.A. DE C.V.
COMBE DE MEXICO, S. DE R.L. DE C.V.
MARCAS NESTLE, S.A. DE C.V.
CADBURY ADAMS DE MEXICO, S. DE R.L.
DE C.V.
LINEAS AEREAS ZACATECAS, S.A. DE C.V.
LANETRO MOBILE MEXICO, S.A. DE C.V.
PUBLISHING:
MAGAZINE CIRCULATION 63,044 790,746 TV Y NOVELAS MAGAZINE, GENERAL PUBLIC (AUDIENCE)
TELEGUIA MAGAZINE, DEALERS
VANIDADES MAGAZINE COMMERCIAL CENTERS (MALLS)
COSMOPOLITAN MAGAZINE
NATIONAL GEOGRAPHIC MAGAZINE
SOCCERMANIA MAGAZINE
TU MAGAZINE
MEN'S HEALTH MAGAZINE
CARAS MAGAZINE
MUY INTERESANTE MAGAZINE
BIG BANG MAGAZINE
PUBLISHING 795,779 FRABEL, S.A. DE C.V.
KIMBERLY CLARK DE MEXICO, S.A. DE C.V.
COMPANIA PROCTER & GAMBLE DE MEXICO,
S. DE R.L DE C.V.
UNILEVER DE MEXICO, S. DE R.L. DE C.V.
TELEFONOS DE MEXICO, S.A. DE C.V.
FABRICAS DE CALZADO ANDREA, S.A.
DE C.V.
ENFASYS DIGITAL, S.A. DE C.V.
OTHER INCOME 21,912 VARIOUS
PUBLISHING DISTRIBUTION: 14,411 193,223 MAGAZINE: GENERAL PUBLIC (AUDIENCE)
"MAESTRA PREESCOLAR" DEALERS
"SEVENTEEN EN ESPANOL" COMMERCIAL CENTERS (MALLS)
"CAR AND DRIVER"
"REVISTA DEL CONSUMIDOR"
"ENTREPRENEUR"
SKY MEXICO
DTH BROADCAST SATELLITE 5,637,811 SKY SUBSCRIBERS
PAY PER VIEW 307,571
CHANNEL COMMERCIALIZATION 41,145 BANCO MERCANTIL DEL NORTE, S.A.
TELEFONOS DE MEXICO, S.A. DE C.V.
COMPANIA CERVECERA DE ZACATECAS, S.A.
DE C.V.
DAIMLERCHRYSLER DE MEXICO, S.A.
DE C.V.
VPN DE MEXICO, S.A. DE C.V.
CABLE TELEVISION:
ANALOGIC AND DIGITAL SERVICE 1,309,370 CABLEVISION SUBSCRIBERS
SERVICE INSTALLATION 34,587 VPN DE MEXICO, S.A. DE C.V.
PAY PER VIEW 2,486 BANCO MERCANTIL DEL NORTE, S.A.
CHANNEL COMMERCIALIZATION 29,100 SERCOMGLOB COMUNICACIONES, S.A.
DE C.V.
OTHER 29,602 CONTROL MEDIA, S.A. DE C.V.
COMPANIA CERVECERA DE ZACATECAS, S.A.
DE C.V.
MUEBLERIA FREY, S.A. DE C.V.
RADIO:
ADVERTISED TIME SOLD 344,733 INSTITUTO MEXICANO DEL SEGURO SOCIAL
PARTIDO REVOLUCIONARIO INSTITUCIONAL
DEL ESTADO DE MEXICO
ORGANIZACION RADIOFONICA DE BAJA
CALIFORNIA, S.A. DE C.V.
PROPIMEX, S.A. DE C.V.
ARENA COMUNICATIONS, S.A. DE C.V.
UNILEVER DE MEXICO, S DE R.L. DE C.V.
PEGASO PCS, S.A. DE C.V.
COOPERATIVA LA CRUZ AZUL, S.C.L.
BBVA BANCOMER, S.A.
MARCAS NESTLE, S.A. DE C.V.
OTHER BUSINESSES:
DISTRIBUTION, RENTALS, AND SALE
OF MOVIE RIGHTS 540,271 CINEPOLIS DEL PAIS, S.A. DE C.V.
CINEMAS DE LA REPUBLICA, S.A. DE C.V.
OPERADORA DE CINEMAS, S.A. DE C.V.
MULTIMEDIOS CINEMAS, S.A. DE C.V.
CINEMARK DE MEXICO, S.A. DE C.V.
COYOACAN FILMS, S.A. DE C.V.
GENERAL PUBLIC (AUDIENCE)
SPECIAL EVENTS AND SHOW PROMOTION 496,931 AMERICA GENERAL PUBLIC (AUDIENCE)
REAL SAN LUIS FEDERACION MEXICANA DE FUTBOL, A.C.
INTERNET SERVICES 278,700 ESMAS.COM RADIOMOVIL DIPSA, S.A. DE C.V.
PEGASO PCS, S.A. DE C.V.
IUSACELL, S.A. DE C.V.
OPERADORA UNEFON, S.A. DE C.V.
----------------------------------------------------------------------------------------------------------------------------------
FOREIGN SALES
INTERSEGMENT ELIMINATIONS (9,597)
TELEVISION BROADCASTING:
ADVERTISING TIME SOLD 435,850 MCCANN ERICKSON, INC
BBD&O
SAATCHI & SAATCHI
OMD
GSD&M ADVERTISING
MINDSHARE
OTHER INCOME 65,472 VARIOUS
PROGRAMMING FOR PAY TELEVISION:
SALES OF SIGNALS 281,447 TELEVISORA DE COSTARICA
GALAXY ENTERTAIMENT ARGENTINA, S.A.
SKY CHILE CPA
SUPER CABLE, AKL.
TCN DOMINICANA, S.A.
ECHOSTAR
COX
PROGRAMMING EXPORT:
PROGRAMMING AND ROYALTIES 1,875,916 TELEVISA KYOTO BROADCASTING SYSTEM, CO. LTD
TELEVISA TV. SBT CANAL 4 DE SAO PAULO, S.A.
TELEVISA CORPORACION VENEZOLANA DE TELEVISION
TELEVISA COMPANIA PERUANA DE RADIODIFUSION,
TELEVISA S.A.
TELEVISA TV. FUTBOL, INC.
TELEVISA CORPORACION MEDCOM PANAMA, S.A.
PUBLISHING:
MAGAZINE CIRCULATION 31,442 448,819 T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
NATIONAL GEOGRAPHIC MAGAZINE DEALERS
HISPANIC MAGAZINE COMMERCIAL CENTERS (MALLS)
VANIDADES MAGAZINE
COSMOPOLITAN MAGAZINE
TU MAGAZINE
PUBLISHING 448,243 PROCTER & GAMBLE
P & G PRESTIGE
DIRBEL, S.A.
ESTEE LAUDER
JOHNSON & JOHNSON
WRIGLEY'S
PUBLISHING DISTRIBUTION: 17,223 208,970 SELECCIONES MAGAZINE GENERAL PUBLIC (AUDIENCE)
HOLA MAGAZINE DEALERS
VEA MAGAZINE COMMERCIAL CENTERS (MALLS)
SOHO MAGAZINE
CROMOS MAGAZINE
CAMBIO MAGAZINE
SEMANA MAGAZINE
OTHER BUSINESSES:
DISTRIBUTION OF FILM MOVIES 8,307 NEW LINE INTERNATIONAL RELEASING, INC.
METRO GOLDWIN MAYER STUDIOS, INC.
----------------------------------------------------------------------------------------------------------------------------------
TOTAL 32,481,041
----------------------------------------------------------------------------------------------------------------------------------
SALES DISTRIBUTION BY PRODUCT
FOREIGN SALES
ANNEX 11A
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
-----------------------------------------------------------------------------------------------------------------------------------
NET SALES MAIN
--------------------------------------------------------------------------------------------------
MAIN PRODUCTS VOLUME AMOUNT DESTINATION TRADEMARKS CUSTOMERS
-----------------------------------------------------------------------------------------------------------------------------------
FOREIGN SALES
TELEVISION BROADCASTING:
ADVERTISING TIME SOLD 82,894 UNITED STATES OF AMERICA MCCANN ERICKSON, INC
BBD&O
SAATCHI & SAATCHI
OMD
GSD&M ADVERTISING
MINDSHARE
OTHER INCOME 65,472 UNITED STATES OF AMERICA VARIOUS
PROGRAMMING FOR PAY TELEVISION:
SALES OF SIGNALS 177,002 SPAIN TELEVISORA DE COSTA RICA
ARGENTINA GALAXY ENTERTAIMENT
ARGENTINA, S.A.
CHILE SKY CHILE CPA
GUATEMALA SUPER CABLE, ALK.
COLOMBIA TCN DOMINICANA, S.A.
UNITED STATES OF AMERICA ECHOSTAR
COX
PROGRAMMING EXPORT:
PROGRAMMING AND ROYALTIES 1,875,916 UNITED STATES OF AMERICA TELEVISA KYOTO BROADCASTING SYSTEM,
CO. LTD
CENTRAL AMERICA TELEVISA TV. SBT CANAL 4 DE SAO
PAULO, S.A.
CARIBBEAN TELEVISA CORPORACION VENEZOLANA
DE TELEVISION
EUROPE TELEVISA COMPANIA PERUANA DE
RADIODIFUSION, S.A.
SOUTH AMERICA TELEVISA TV. FUTBOL, INC.
AFRICA TELEVISA CORPORACION MEDCOM
PANAMA, S.A.
ASIA TELEVISA
OTHER BUSINESSES:
DISTRIBUTION OF FILM MOVIES 8,307 NEW LINE INTERNATIONAL
RELEASING, INC.
METRO GOLDWIN MAYER
STUDIOS, INC.
SUBSIDIARIES ABROAD
TELEVISION BROADCASTING:
ADVERTISING TIME SOLD 352,956 UNITED STATES OF AMERICA MCCANN ERICKSON, INC
BBD&O
SAATCHI & SAATCHI
OMD
GSD&M ADVERTISING
MINDSHARE
VARIOUS
PROGRAMMING FOR PAY TELEVISION:
SALES OF SIGNALS 104,445 SPAIN TELEVISORA DE COSTA RICA
ARGENTINA GALAXY ENTERTAIMENT
ARGENTINA, S.A.
CHILE SKY CHILE CPA
GUATEMALA SUPER CABLE, ALK.
COLOMBIA TCN DOMINICANA, S.A.
UNITED STATES OF AMERICA ECHOSTAR
PUBLISHING:
MAGAZINE CIRCULATION 31,442 448,819 GUATEMALA AND COSTA RICA T.V. Y NOVELAS MAGAZINE GENERAL PUBLIC (AUDIENCE)
UNITED STATES OF AMERICA NATIONAL GEOGRAPHIC MAGAZINE DEALERS
PANAMA HISPANIC MAGAZINE COMMERCIAL CENTERS (MALLS)
SOUTH AMERICA VANIDADES MAGAZINE
CENTRAL AMERICA COSMOPOLITAN MAGAZINE
TU MAGAZINE
PUBLISHING 448,243 PROCTER & GAMBLE
P & G PRESTIGE
DIRBEL, S.A.
ESTEE LAUDER
JOHNSON & JOHNSON
WRIGLEY'S
PUBLISHING DISTRIBUTION: 17,223 208,970 PANAMA SELECCIONES MAGAZINE GENERAL PUBLIC (AUDIENCE)
SOUTH AMERICA HOLA MAGAZINE DEALERS
VEA MAGAZINE COMMERCIAL CENTERS (MALLS)
SOHO MAGAZINE
CROMOS MAGAZINE
CAMBIO MAGAZINE
SEMANA MAGAZINE
INTERSEGMENT ELIMINATIONS (9,597)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL 3,763,427
-----------------------------------------------------------------------------------------------------------------------------------
PROJECT, AMOUNT EXERCISED AND PROGRESS PERCENTAGE
ANNEX 13
CONSOLIDATED
AUDITED INFORMATION FINAL PRINTING
-------------------------------------------------------------------------------
MAJOR INVESTMENT PROJECTS OF GRUPO TELEVISA, S.A. AND ITS SUBSIDIARIES AT
DECEMBER 31, 2005, INCLUDE THE FOLLOWING (MILLIONS OF U.S. DOLLARS AND
MEXICAN PESOS):
DESCRIPTION AUTHORIZED AMOUNT EXERCISED AMOUNT PROGRESS %
---------------------------------------- ------------------ ----------------- ----------------
U.S. DOLLAR DENOMINATED PROJECTS:
DIGITALIZATION OF THE CABLE TELEVISION
NETWORK U.S.$ 124.8 U.S.$ 97.4 78%
INFORMATION TECHNOLOGY PROJECTS
OF CABLE TELEVISION 17.8 16.0 90%
TECHNICAL EQUIPMENT FOR T.V. STATIONS 13.3 10.8 81%
SKY MEXICO PROJECTS 61.7 48.1 78%
MEXICAN PESOS DENOMINATED PROJECTS:
INFORMATION TECHNOLOGY PROJECTS PS. 38.3 PS. 3.2 8%
INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION)
ANNEX 14
CONSOLIDATED
AUDITED INFORMATION Final Printing
-------------------------------------------------------------------------------
MONETARY ASSETS AND LIABILITIES OF MEXICAN COMPANIES DENOMINATED IN FOREIGN
CURRENCIES ARE TRANSLATED AT THE PREVAILING EXCHANGE RATE AT THE BALANCE
SHEET DATE. RESULTING EXCHANGE RATE DIFFERENCES ARE RECOGNIZED IN INCOME
FOR THE YEAR, WITHIN INTEGRAL COST OF FINANCING.
ASSETS, LIABILITIES AND RESULTS OF OPERATIONS OF NON-MEXICAN SUBSIDIARIES
ARE FIRST CONVERTED TO MEXICAN GAAP, INCLUDING RESTATING TO RECOGNIZE THE
EFFECTS OF INFLATION BASED ON THE INFLATION OF EACH FOREIGN COUNTRY, AND
THEN TRANSLATED TO MEXICAN PESOS UTILIZING THE EXCHANGE RATE AS OF THE
BALANCE SHEET DATE AT YEAR-END. RESULTING TRANSLATION DIFFERENCES ARE
RECOGNIZED IN EQUITY AS PART OF THE OTHER COMPREHENSIVE INCOME OR LOSS.
FINANCIAL STATEMENTS OF NON-MEXICAN OPERATIONS THAT ARE INTEGRAL TO MEXICAN
OPERATIONS ARE CONVERTED TO MEXICAN GAAP AND TRANSLATED TO MEXICAN PESOS BY
UTILIZING THE EXCHANGE RATE OF THE BALANCE SHEET DATE AT YEAR-END FOR
MONETARY ASSETS AND LIABILITIES, WITH THE RELATED ADJUSTMENT INCLUDED IN
NET INCOME, AND HISTORICAL EXCHANGE RATES FOR NON-MONETARY ITEMS.
THE COMPANY HAD DESIGNATED ITS NET INVESTMENT IN UNIVISION AS AN EFFECTIVE
HEDGE OF ITS SENIOR NOTES DUE 2011 AND 2032 FOR AN AGGREGATE AMOUNT OF
U.S.$ 600 MILLION. IN MARCH 2005, IN CONNECTION WITH THE ISSUANCE OF A
PORTION OF ITS SENIOR NOTES DUE 2025 AND THE PREPAYMENT OF A PORTION OF ITS
SENIOR NOTES DUE 2011, THE COMPANY DESIGNATED ITS NET INVESTMENT IN
UNIVISION AS AN EFFECTIVE HEDGE OF U.S.$400 MILLION OF ITS SENIOR NOTES DUE
2025. CONSEQUENTLY, ANY FOREIGN EXCHANGE GAIN OR LOSS ATTRIBUTABLE TO THIS
U.S. DOLLAR LONG-TERM DEBT, IS CREDITED OR CHARGED DIRECTLY TO EQUITY
(OTHER COMPREHENSIVE INCOME OR LOSS). AS OF DECEMBER 31, 2005, THE TOTAL
PRINCIPAL AMOUNT OF THE COMPANY'S LONG TERM DEBT BEING HEDGED BY THE
COMPANY'S NET INVESTMENT IN UNIVISION WAS OF APPROXIMATELY U.S.$775.5
MILLION (PS.8,240,681).
THE GROUP'S FINANCIAL STATEMENTS FOR DECEMBER 31, 2004, HAVE BEEN RESTATED
TO MEXICAN PESOS IN PURCHASING POWER AS OF DECEMBER 31, 2005, BY USING A
RESTATEMENT FACTOR DERIVED FROM THE CHANGE IN THE NCPI, WHICH FOR 2004 WAS
1.0333. HAD THE ALTERNATIVE WEIGHTED AVERAGE FACTOR ALLOWED UNDER MEXICAN
GAAP BEEN APPLIED TO RESTATE THE GROUP'S FINANCIAL STATEMENTS FOR DECEMBER
31, 2004, WHICH INCLUDED THE RESULTS OF MEXICAN AND NON-MEXICAN
SUBSIDIARIES, THE RESTATEMENT FACTOR FOR DECEMBER 2004 WOULD HAVE BEEN
1.0332.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GRUPO TELEVISA, S.A.
--------------------------------
(Registrant)
Dated: May 5, 2006 By /s/ Jorge Lutteroth Echegoyen
------------------------------
Name: Jorge Lutteroth Echegoyen
Title: Controller, Vice President