Grupo Televisa B : Fourth - Quarter 2022 Results

Investor Relations

PRESS RELEASE

Televisa Reports Fourth Quarter and Full Year 2022 Results

2022 Highlights

Consolidated

• On January 31, 2022, we closed the combination of our media, content, and production assets with TelevisaUnivision.
• Excluding the content assets combined with TelevisaUnivision for the full year, Revenue grew by 2.2%, while Operating Segment Income ("OSI") decreased by 4.7%.
• Excluding World Cup related costs amortized in 2022, OSI would have fallen by 1.5%.

Cable

• Successfully passed 875 thousand homes with fiber-to-the-home ("FTTH"), achieving more than 18.7 million homes passed.
• Strong organic growth of more than 1.3 million Revenue Generating Units (RGUs), reaching more than 15.9 million.
• Revenue growth of 0.8% and OSI decline of 1.9% with a margin of 41.1%.
• MSO revenue and OSI grew 2.5% and 2.6% respectively, translating into a 42.9% margin.

Sky

• Total RGUs of 6.9 million, with almost 1.3 million net disconnections of which 402 thousand are related to the clean-up of our video subscriber base.
• Revenue and OSI fell by 7.7% and 24.6%, respectively, for a 31.5% margin.
• Excluding World Cup related costs amortized in 2022, OSI would have declined by 13.6%, translating into a 36.1% margin.

Other Businesses

• Robust growth at our Other Businesses segment driven by the economic reopening.
• Strong revenue and OSI growth of 67.2% and 186.8%, respectively, for a 23.0% margin.

Earnings Call Date and Time: Friday, February 24, 2023, at 10:00 A.M. ET.

Conference ID # is 7020724

From the U.S.: [phone]	International callers: [phone]
Rebroadcast: [phone]	Rebroadcast: [phone]

The teleconference will be rebroadcast starting at 1:00 P.M. ET with the access code #9749168

on February 24th and will end at midnight on March 10th.

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Consolidated Results

Mexico City, February 23, 2023 - Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; "Televisa" or "the Company"), today announced results for the full year and fourth quarter of 2022. The results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

Financials have been adjusted to reflect the impact of the TelevisaUnivision Transaction (as defined below) which was closed on January 31, 2022. Results from the content assets included in the transaction are presented as discontinued operations.

The following table sets forth condensed consolidated statements of income for the years ended December 31, 2022 and 2021, in millions of Mexican pesos.

	2022	Margin	2021	Margin	Change
	%	%	%
Net sales	75,526.6	100.0	73,915.4	100.0	2.2
Operating segment income1	28,010.1	36.8	29,378.9	39.5	(4.7)

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

Net sales increased by 2.2% to Ps.75,526.6 million in 2022 compared with Ps.73,915.4 million in 2021. This increase was due to revenue growth in the Cable and Other Businesses segments. Operating segment income decreased by 4.7%, translating into a 36.8% margin. Excluding the amortization of costs and expenses related to the transmission rights of the World Cup Qatar 2022 at Sky, operating segment income would have declined only by 1.5%, for a 38.0% margin.

The following table sets forth condensed consolidated statements of income for the years ended December 31, 2022 and 2021, in millions of Mexican pesos:

		2022	Margin	2021	Margin	Change
		%	%	%
Net sales		75,526.6	100.0	73,915.4	100.0	2.2
Net income		43,628.8	57.8	7,354.8	10.0	493.2
Net income attributable	to	43,151.2	57.1	6,055.8	8.2	612.6
stockholders of the Company
Segment net sales		76,089.6	100.0	74,435.7	100.0	2.2
Operating segment income (1)		28,010.1	36.8	29,378.9	39.5	(4.7)

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

Net income attributable to stockholders of the Company amounted to Ps.43,151.2 million for the year ended December 31, 2022, compared with Ps.6,055.8 million for the year ended December 31, 2021.

The net increase of Ps.37,095.4 million, reflected (i) a Ps.49,336.6 million increase in income from discontinued operations; (ii) a Ps.2,722.7 million decrease in finance expense, net; (iii) a Ps.2,640.4 million favorable change in income tax benefit or expense; and (iv) a Ps.821.4 million decrease in net income attributable to non-controlling interests.

These favorable variances were partially offset by (i) a Ps.12,124.3 million unfavorable change in share of income or loss of associates and joint ventures; (ii) a Ps.4,562.9 million unfavorable change in other income or expense, net; (iii) a Ps.1,064.1 million increase in depreciation and amortization; and (iv) a Ps.674.4 million decrease in income before depreciation and amortization.

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Dividend

The Company's Board of Directors approved the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series "A", "B", "D" and "L" Shares not in the form of a CPO. This dividend is subject to the approval of the Company's stockholders.

Full year results by business segment

The following table presents full year consolidated results ended December 31, 2022 and 2021, for each of our business segments, in millions of Mexican pesos.

	Net Sales	2022	%	2021	%	Change
							%
	Cable	48,411.8	63.6	48,020.9	64.5	0.8
	Sky	20,339.0	26.7	22,026.6	29.6	(7.7)
	Other Businesses	7,338.8	9.7	4,388.2	5.9	67.2
	Segment Net Sales	76,089.6	100.0	74,435.7	100.0	2.2
	Intersegment Operations1	(563.0)		(520.3)
	Net Sales	75,526.6		73,915.4		2.2
Operating Segment Income2		2022	Margin	2021	Margin	Change
				%		%	%
	Cable		19,902.8	41.1	20,285.0	42.2	(1.9)
	Sky		6,416.3	31.5	8,504.2	38.6	(24.6)
	Other Businesses		1,691.0	23.0	589.7	13.4	186.8
	Operating Segment Income2		28,010.1	36.8	29,378.9	39.5	(4.7)
	Corporate Expenses		(1,538.1)	(2.0)	(2,351.3)	(3.2)	34.6
	Depreciation and Amortization		(21,117.4)	(28.0)	(20,053.3)	(27.1)	(5.3)
	Other (expense) income, net		(846.7)	(1.1)	3,716.2	5.0	n/a
	Intersegment Operations1		(120.4)	(0.2)	(1.6)	(0.0)	n/a
	Operating Income		4,387.5	5.8	10,688.9	14.5	(59.0)

1. For segment reporting purposes, intersegment operations are included in each of the segment operations.
2. Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other income or expense, net.

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Fourth-quarter Results by Business Segment

The following table presents fourth quarter consolidated results ended December 31, 2022 and 2021, for each of our business segments. Consolidated results for the fourth quarter of 2022 and 2021 are presented in millions of Mexican pesos.

Net Sales	4Q'22	%	4Q'21	%	Change
					%
Cable	12,463.3	64.2	12,296.2	64.8	1.4
Sky	4,936.6	25.5	5,372.3	28.3	(8.1)
Other Businesses	2,002.3	10.3	1,303.3	6.9	53.6
Segment Net Sales	19,402.2	100.0	18,971.8	100.0	2.3
Intersegment Operations1	(269.9)		(142.7)		-
Net Sales	19,132.3		18,829.1		1.6
Operating Segment Income2	4Q'22	Margin	4Q'21	Margin	Change
		%		%	%
Cable	5,059.3	40.6	5,365.8	43.6	(5.7)
Sky	1,151.6	23.3	1,845.4	34.4	(37.6)
Other Businesses	499.2	24.9	237.8	18.2	109.9
Operating Segment Income2	6,710.1	34.6	7,449.0	39.3	(9.9)
Corporate Expenses	(705.7)	(3.6)	(1,125.6)	(5.9)	37.3
Depreciation and Amortization	(5,702.7)	(29.8)	(5,262.6)	(27.9)	(8.4)
Other (expense) income, net	(346.3)	(1.8)	4,304.4	22.9	n/a
Intersegment Operations1	(119.3)	(0.6)	(0.4)	(0.0)	n/a
Operating (loss) Income	(163.9)	(0.9)	5,364.8	28.5	n/a

1For segment reporting purposes, intersegment operations are included in each of the segment operations. 2Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other income or expense, net.

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Cable

Total net additions for the quarter were approximately 327.2 thousand RGUs. Broadband net additions were 78.3 thousand, while video net additions of 52.5 thousand maintained the positive trend experienced since the end of 2021. We also had 26.7 thousand mobile net additions, ending the year with more than 240.2 thousand mobile subscribers.

The following table sets forth the breakdown of RGUs per service type for our Cable segment as of December 31, 2022 and 2021.

RGUs	4Q'22 Net	2022 Net	2022	2021
Adds	Adds
Video	52,525	291,760	4,458,220	4,166,460
Broadband	78,327	335,049	5,984,151	5,649,102
Voice	169,649	616,459	5,233,724	4,617,265
Mobile	26,680	84,156	240,207	156,051
Total RGUs	327,181	1,327,424	15,916,302	14,588,878

Fourth quarter sales increased by 1.4% to Ps.12,463.3 million compared with Ps.12,296.2 million in the fourth quarter of 2021.

Full year sales increased by 0.8% to Ps.48,411.8 million compared with Ps.48,020.9 million in 2021. Total RGUs exceeded 15.9 million after delivering more than 1.3 million net additions for the year.

Fourth quarter operating segment income decreased by 5.7% to Ps.5,059.3 million compared with Ps.5,365.8 million in the fourth quarter of 2021. The margin reached 40.6%. During the quarter, year-on-year operating segment income growth of 1.0% at our MSO Operations was fully offset by an operating segment income decline of 49.0% at our Enterprise Operations. Profitability at our Enterprise Operations declined by 1,660 basis points year-on-year given a temporary change in our business mix more leaned towards lower margin projects during the fourth quarter of 2022.

Full year operating segment income fell by 1.9% to Ps.19,902.8 million compared with Ps.20,285.0 million in 2021. The margin reached 41.1%. During the year, year-on-year operating segment income increase of 2.6% at our MSO Operations was fully offset by an operating segment income decrease of 28.8% at our Enterprise Operations. Profitability at our Enterprise Operations contracted by 800 basis points year-on-year given a temporary change in our business mix more leaned towards lower margin projects during 2022.

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