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    TLEVISA CPO   MXP4987V1378

GRUPO TELEVISA, S.A.B.

(TLEVISA CPO)
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Grupo Televisa B : Quarterly Financial Information

04/30/2021 | 04:29pm EST
Quarterly Financial Information


[105000] Management commentary
2
[110000] General information about financial statements
13
[210000] Statement of financial position, current/non-current
15
[310000] Statement of comprehensive income, profit or loss, by function of expense
17
[410000] Statement of comprehensive income, OCI components presented net of tax
18
[520000] Statement of cash flows, indirect method
20
[610000] Statement of changes in equity - Accumulated Current
22
[610000] Statement of changes in equity - Accumulated Previous
25
[700000] Informative data about the Statement of financial position
28
[700002] Informative data about the Income statement
29
[700003] Informative data - Income statement for 12 months
30
[800001] Breakdown of credits
31
[800003] Annex - Monetary foreign currency position
33
[800005] Annex - Distribution of income by product
34
[800007] Annex - Financial derivative instruments
35
[800100] Notes - Subclassifications of assets, liabilities and equities
41
[800200] Notes - Analysis of income and expense
45
[800500] Notes - List of notes
46
[800600] Notes - List of accounting policies
61
[813000] Notes - Interim financial reporting
75
Footnotes
94


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[105000] Management commentary
Management commentary
Mexico City, April 22, 2021 - Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; 'Televisa' or 'the Company'), today announced results for the first-quarter of 2021. The results have been prepared in accordance with International Financial Reporting Standards ('IFRS').

The following table sets forth condensed consolidated statements of income for the quarters ended March 31, 2021 and 2020, in millions of Mexican pesos:

1Q'21
Margin
1Q'20
Margin
Change
%
%
%
Net sales1
23,828.9
100.0
23,081.3
100.0
3.2
Operating segment income2
9,377.6
36.5
8,709.2
35.2
7.7
1 Adjusted by disposed operations in relation to the sale of the Company's Radio business which was concluded on July 2nd, 2020.
2 The operating segment income margin is calculated as a percentage of segment net sales.

Net sales increased by 3.2% to Ps.23,828.9 million in the first-quarter of 2021 compared with Ps.23,081.3 million in the first-quarter of 2020. This increase was attributable to solid growth in our three core businesses. Operating segment income increased by 7.7%, reaching Ps.9,377.6 million with a margin of 36.5%.

The following table sets forth condensed consolidated statements of income for the quarters ended March 31, 2021 and 2020, in millions of Mexican pesos:

1Q'21
Margin
1Q'20
Margin
Change
%
%
%
Net sales1
23,828.9
100.0
23,081.3
100.0
3.2
Net loss
(325.8)
(1.4)
(8,903.7)
(38.3)
96.3
Net loss attributable to stockholders of the Company
(584.4)
(2.5)
(9,651.9)
(41.6)
93.9
Segment net sales
25,668.9
100.0
24,714.1
100.0
3.9
Operating segment income2
9,377.6
36.5
8,709.2
35.2
7.7
1 Adjusted by disposed operations in relation to the sale of the Company's Radio business which was concluded on July 2nd, 2020.
2 The operating segment income margin is calculated as a percentage of segment net sales.
Net loss attributable to stockholders of the Company amounted to Ps.584.4 million in the first-quarter of 2021, compared with a Ps.9,651.9 million in the first-quarter of 2020. The decrease of Ps.9,067.5 million reflected (i) a favorable change of Ps.5,400.4 million in share of income or loss of associates and joint ventures, net; (ii) a Ps.4,686.0 million decrease in finance expense, net; (iii) a Ps.570.0 million increase in income before depreciation and amortization; and (iv) a Ps.489.6 million decrease in net income attributable to non-controlling interests.
These favorable variances were partially offset by (i) a Ps.1,622.4 million decrease in income tax benefit; (ii) an unfavorable change of Ps.437.8 million in other income or expense, net; and (iii) a Ps.18.3 million increase in depreciation and amortization.

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Disclosure of nature of business

Televisa is a leading media company in the Spanish-speaking world, an important cable operator in Mexico and an operator of a leading direct-to-home satellite pay television system in Mexico. Televisa distributes the content it produces through several broadcast channels in Mexico and in over 70 countries through 27 pay-tv brands, television networks, cable operators and over-the-top or 'OTT' services. In the United States, Televisa's audiovisual content is distributed through Univision Communications Inc. ('Univision'), a leading media company serving the Hispanic market. Univision broadcasts Televisa's audiovisual content through multiple platforms in exchange for a royalty payment. In addition, Televisa has equity representing approximately 36% on a fully-diluted basis of the equity capital in Univision Holdings, Inc., the controlling company of Univision. Televisa's cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system and broadband provider in Mexico, operating also in the Dominican Republic and Central America. Televisa also has interests in magazine publishing and distribution, professional sports and live entertainment, feature-film production and distribution, and gaming.

Disclosure of management's objectives and its strategies for meeting those objectives

We intend to leverage our position as a leading media company in the Spanish-speaking world to continue expanding our business while maintaining profitability and financial discipline. We intend to do so by maintaining our leading position in the Mexican television market, by continuing to produce high quality programming and by improving our sales and marketing efforts while maintaining high operating margins and expanding our cable business.

We also intend to continue developing and expanding Sky, our DTH platform, and our cable business. We will continue to strengthen our position and will continue making additional investments, which could be substantial in size, in the cable industry in accordance with the consolidation of the cable market in Mexico.

We intend to continue to expand our business by developing new business initiatives and/or through business acquisitions and investments. However, we continue to evaluate our portfolio of assets, in order to determine whether to dispose of select non-core operations.
Disclosure of entity's most significant resources, risks and relationships
We expect to fund our operating cash needs during 2021, other than cash needs in connection with any potential investments and acquisitions, through a combination of cash from operations and cash on hand. We intend to finance our potential investments or acquisitions in 2021 through available cash from operations, cash on hand, equity securities and/or the incurrence of debt, or a combination thereof. The amount of borrowings required to fund these cash needs in 2021 will depend upon the timing of such transactions and the timing of cash payments from advertisers under our advertising sales plan.
The investing public should consider the risks stated as follows, as well as the risks described in 'Key Information-Risk Factors' in the Company's 2020 Annual Report and Form 20-F, which are not the only risks and uncertainties faced by the Company. Risks and uncertainties unknown by the Company, as well as those that the Company currently considers as not relevant, could affect its operations and activities.

Risk Factors Related to the COVID-19 Pandemic:

COVID-19 Pandemic may have a material adverse effect on our business, financial position and results of operations.
We cannot predict what effects the COVID-19 relief plan recently announced by the Mexican Federal Government will have in our results of operations and the overall economy.
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Risk Factors Related with Political Developments:

Imposition of fines by regulators and other authorities could adversely affect our financial condition and results of operations
Social Security Law
Federal Labor Law
Mexican tax laws
Regulations of the General Health Law on advertising
Changes in U.S. tax law
Mexican Securities Market Law
Renewal or revocation of our concessions

Risk Factors Related to our Business:

Control of a stockholder
Measures for the prevention of the taking of control
Competition
Seasonal nature of our business
Loss of transmission or loss of the use of satellite transponders
Incidents affecting our network and information systems or other technologies
Weaknesses in internal controls over financial reporting
Results of operations of UHI
Uncertainty in global financial markets
Currency fluctuations or the devaluation and depreciation of the Mexican peso
Renegotiation of the Trade Agreements or other changes in foreign policy by the new or currency presidential administration in the United States
Inflation Rates and High Interest Rates in Mexico
Political events in Mexico
COVID-19 Impact

The COVID-19 pandemic has affected our business, financial position and results of operations for the quarter ended March 31, 2021, and it is currently difficult to predict the degree of the impact in the future.
We cannot guarantee that conditions in the bank lending, capital and other financial markets will not continue to deteriorate as a result of the pandemic, or that our access to capital and other sources of funding will not become constrained, which could adversely affect the availability and terms of future borrowings, renewals or refinancings. In addition, the deterioration of global economic conditions as a result of the pandemic may ultimately reduce the demand of our products across our segments as our clients and customers reduce or defer their spending.
Although vaccination efforts have started countrywide since January 2021, the Mexican Government is still implementing the plan to reactivate economic activities in accordance with color-based phases determined on a weekly basis in every state of the country. Most of non-essential economic activities are open with some limitations, mainly on capacity and hours of operation. However, a significant part of the population is still implementing social distancing and shelter-in-place policies. As a result, during the quarter ended March 31, 2021, this has affected, and is still affecting the ability of our employees, suppliers and customers to conduct their functions and businesses in their typical manner.
As of this date, given that they are considered essential economic activities, we have continued operating our media and telecommunications businesses uninterrupted to continue benefiting the country with connectivity, entertainment and information, and during the quarter ended March 31, 2021, we continued with the production of new content following the requirements and health guidelines imposed by the Mexican Government. During the quarter ended March 31, 2021 our Content business continued to recover as a result of the easing in lockdown restrictions in some jurisdictions in which our customers are located. Notwithstanding the foregoing, we are partially dependent on the demand for advertising from consumer-focused companies, and the COVID-19 pandemic has caused, and could further cause, advertisers to reduce or postpone their advertisement spending on our platforms.
In our Other Businesses segment, sporting and other entertainment events for which we have broadcast rights, or which we organize, promote and/or are located in venues we own, are operating with some limitations and taking the corresponding sanitary measures, and to date some of our casinos have resumed operations with reduced capacity and hours of operation. When local authorities approve the re-opening of the venues that are still not operating, rules may be enacted including capacity and operating hours restrictions; these may affect the results of our Other Businesses segment in the following months.

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Notwithstanding the foregoing, the authorities may impose restrictions on non-essential activities, including but not limited to temporary shutdowns or additional guidelines which could be expensive or burdensome to implement, which may affect our operations.
The magnitude of the impact on our business will depend on the duration and extent of the COVID-19 pandemic and the impact of federal, state, local and foreign governmental actions, including continued or future social distancing, and consumer behavior in response to the COVID-19 pandemic and such governmental actions. Due to the evolving and uncertain nature of this situation, we are not able to estimate the full extent of the impact of the COVID-19 pandemic, but it may continue affecting our business, financial position and results of operations over the near, medium or long-term.

Disclosure of results of operations and prospects

The following table presents first-quarter consolidated results ended March 31, 2021 and 2020, for each of our business segments. Consolidated results for the first-quarter of 2021 and 2020 are presented in millions of Mexican pesos.

Net Sales
1Q'21
%
1Q'20
%
Change
%
Cable
11,676.5
45.5
10,824.7
43.8
7.9
Sky
5,624.8
21.9
5,405.3
21.9
4.1
Content
7,416.1
28.9
6,727.6
27.2
10.2
Other Businesses
951.5
3.7
1,756.5
7.1
(45.8)
Segment Net Sales
25,668.9
100.0
24,714.1
100.0
3.9
Intersegment Operations1
(1,840.0)
(1,632.8)
Net Sales
23,828.9
23,081.3
3.2
Disposed Operations2
-
n/a
147.5
n/a
n/a
Net Sales
23,828.9
23,228.8
2.6

Operating Segment Income3
1Q'21
Margin
%
1Q'20
Margin
%
Change
%
Cable
4,834.6
41.4
4,490.3
41.5
7.7
Sky
2,154.4
38.3
2,234.0
41.3
(3.6)
Content
2,376.5
32.0
1,613.9
24.0
47.3
Other Businesses
12.1
1.3
371.0
21.1
(96.7)
Operating Segment Income
9,377.6
36.5
8,709.2
35.2
7.7
Corporate Expenses
(499.4)
(1.9)
(423.8)
(1.7)
(17.8)
Depreciation and Amortization
(5,169.8)
(21.7)
(5,151.5)
(22.2)
(0.4)
Other (Expense) Income, net
(152.9)
(0.6)
284.9
1.2
n/a
Intersegment Operations1
(15.0)
(0.1)
(17.8)
(0.1)
15.7
Disposed Operations2
-
n/a
25.6
n/a
n/a
Operating Income
3,540.5
14.9
3,426.6
14.8
3.3
1 For segment reporting purposes, intersegment operations are included in each of the segment operations.
2 The sale of the Company's Radio business was concluded on July 2nd, 2020. Accordingly, the net sales and the operating segment income associated with the Radio business, which was part of the Company's Other Businesses segment, are presented separately as disposed operations for the quarter ended March 31, 2020.
3 Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other (expense) income, net.

Cable

Total net additions for the quarter were approximately 169.3 thousand RGUs. Quarterly growth was mainly driven by 104.0 thousand broadband net additions and 85.9 thousand voice net additions. Video RGUs decreased by 38.6 thousand.


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The following table sets forth the breakdown of RGUs per service type for our Cable segment as of March 31, 2021 and 2020.

RGUs
1Q'21 Net Adds
1Q'21
1Q'20
Video
(38,581)
4,246,101
4,308,058
Broadband
103,960
5,534,819
4,817,103
Voice
85,875
4,382,405
3,783,519
Mobile
18,059
93,574
-
Total RGUs
169,313
14,256,899
12,908,680
First-quarter sales increased by 7.9% to Ps.11,676.5 million compared with Ps.10,824.7 million in the first-quarter of 2020 driven by solid net additions in broadband.

First-quarter operating segment income increased by 7.7% to Ps.4,834.6 million compared with Ps.4,490.3 million in the first-quarter of 2020, while the margin was relativately stable.

The following tables set forth the breakdown of revenue and operating segment income, excluding consolidation adjustments, for our MSO and enterprise operations for the first-quarter of 2021 and 2020.

MSO Operations(1)
Millions of Mexican pesos
1Q'21
1Q'20
Change %
Revenue
10,465.4
9,755.8
7.3
Operating Segment Income
4,483.3
4,122.7
8.7
Margin (%)
42.8
42.3

Enterprise Operations (1)
Millions of Mexican pesos
1Q'21
1Q'20
Change %
Revenue
1,700.3
1,482.2
14.7
Operating Segment Income
528.3
505.2
4.6
Margin (%)
31.1
34.1
(1) These results do not include consolidation adjustments of Ps.489.2 million in revenue nor Ps.177.0 million in Operating Segment Income for the first quarter of 2021, neither the consolidation adjustments of Ps.413.3 million in revenue nor Ps.137.6 million in Operating Segment Income for the first quarter of 2020. Consolidation adjustments are considered in the consolidated results of the Cable segment.

First-quarter sales and operating segment income in our MSO operations increased by 7.3% and 8.7%, respectively.

First-quarter sales and operating segment income in our Enterprise Operations increased by 14.7% and 4.6%, respectively.

Sky

During the quarter, Sky continued growing its broadband business after adding 32.0 thousand broadband RGUs, reaching a total of 697.9 thousand. Sky also added 10.1 thousand video RGUs.

The following table sets forth the breakdown of RGUs per service type for Sky as of March 31, 2021 and 2020.

RGUs
1Q'21 Net Adds
1Q'21
1Q'20
Video
10,077
7,487,371
7,437,469
Broadband
32,041
697,948
430,412
Voice
6,646
7,538
1,052
Total RGUs
48,764
8,192,857
7,868,933


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First-quarter salesincreased by 4.1% to Ps.5,624.8 million compared with Ps.5,405.3 million in the first-quarter of 2020, mainly explained by the growth in broadband RGUs.

First-quarter operating segment incomedecreased by 3.6% to Ps.2,154.4 million compared with Ps.2,234.0 million in the first-quarter of 2020, while the margin was 38.3%. The decline was due to costs related to the amortization of certain sports events.

Content

First-quarter salesincreased by 10.2% to Ps.7,416.1 million compared with Ps.6,727.6 million in the first-quarter of 2020.

Millions of Mexican pesos
1Q'21
%
1Q'20
%
Change %
Advertising
3,374.9
45.5
2,635.1
39.2
28.1
Network Subscription
1,344.8
18.1
1,332.1
19.8
1.0
Licensing and Syndication
2,696.4
36.4
2,760.4
41.0
(2.3)
Net Sales
7,416.1
6,727.6
10.2

Advertising

First-quarter advertising sales increased by 28.1% to Ps.3,374.9 million compared with Ps.2,635.1 million in the first-quarter of 2020, driven by strong recovery of the private sector.

Network Subscription

First-quarter Network Subscription sales increased by 1.0% to Ps.1,344.8 million compared with Ps.1,332.1 million in the first-quarter of 2020.

Licensing and Syndication

First-quarter Licensing and Syndication sales decreased by 2.3% to Ps.2,696.4 million from Ps.2,760.4 million in the first-quarter of 2020. Royalties from Univision reached U.S.$96.5 million in the first-quarter of 2021 compared to U.S.$97.6 million in the first-quarter of 2020.

First-quarter operating segment incomeincreased by 47.3% to Ps.2,376.5 million compared with Ps.1,613.9 million in the first-quarter of 2020, while the margin was 32.0%.

Other Businesses

Other Businesses were affected by the closing of the economy and measures triggered in response to COVID-19, which included the suspension or limitation of activities in some businesses of this segment.

First-quarter salesdecreased by 45.8% to Ps.951.5 million compared with Ps.1,756.5 million in the first-quarter of 2020.

First-quarter operating segment income decreased by 96.7% to Ps.12.1 million compared with Ps.371.0 million in the first-quarter of 2020.

Corporate Expense

Corporate expense increased by Ps.75.6 million, or 17.8%, to Ps.499.4 million in the first-quarter of 2021, from Ps.423.8 million in the first-quarter of 2020. This increase reflected primarily a higher share-based compensation expense.

Share-based compensation expense in the first-quarter of 2021 and 2020, amounted to Ps.258.4 million and Ps.209.1 million, respectively, and was accounted for as corporate expense. Share-based compensation expense is measured at fair value at the time the equity benefits are conditionally sold to officers and employees, and is recognized over the vesting period. The net increase of Ps.49.3 million, or 23.6%, reflected an increase in equity benefits conditionally sold, as well as an increase in the market price of our CPO in the last 12-months.



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Other Income or Expense, Net

Other income or expense, net, changed by Ps.437.8 million, to other expense, net, of Ps.152.9 million in the first-quarter of 2021, from other income, net, of Ps.284.9 million in the first-quarter of 2020. This change reflected primarily:


I.
the absence in 2021 of a non-cash Ps.386.0 million income that resulted from a decrease in a provision for an appreciation payment arrangement between Televisa and a related party;


II.
a higher loss on disposition of property and equipment; and


III.
an increase in expense to prevent COVID-19.

These unfavorable variances were partially offset by:

I.
a decrease in non-recurrent severance expense in connection with dismissals of personnel; and


II.
the absence in 2021 of other expense related to a compensation plan for certain officers of our Cable segment.

Other expense, net, in the first-quarter of 2021, included expense related to legal and financial advisory and professional services, expense to prevent COVID-19, loss on disposition of property and equipment, and non-recurrent severance expense in connection with dismissals of personnel.

The following table sets forth the breakdown of cash and non-cash other (expense) income, net, stated in millions of Mexican pesos, for the three months ended March 31, 2021 and 2020.

Other Income (Expense), Net
1Q'21
1Q'20
Cash
(57.9)
(137.5)
Non-cash
(95.0)
422.4
Total
(152.9)
284.9

Finance Expense, Net

The following table sets forth the finance (expense) income, net, stated in millions of Mexican pesos for the three months ended March 31, 2021 and 2020.

1Q'21
1Q'20
(Unfavorable)
Favorable
Change
Interest expense
(2,302.4)
(2,528.2)
225.8
Interest income
121.3
223.9
(102.6)
Foreign exchange loss, net
(1,723.4)
(8,601.4)
6,878.0
Other finance (expense) income, net
(117.1)
2,198.1
(2,315.2)
Finance expense, net
(4,021.6)
(8,707.6)
4,686.0

Finance expense, net, decreased by Ps.4,686.0 million, to Ps.4,021.6 million in the first-quarter of 2021, from Ps.8,707.6 million in the first-quarter of 2020.

This decrease reflected:


I.
a Ps.6,878.0 million decrease in foreign exchange loss, net, resulting primarily from a 2.6% depreciation of the Mexican peso against the U.S. dollar on a higher average net U.S. dollar liability position in the first-quarter of 2021, in comparison with a 26.4% depreciation in the first-quarter of 2020; and


II.
a Ps.225.8 million decrease in interest expense, primarily due to a lower depreciation of the Mexican peso against the U.S. dollar in the first quarter of 2021.

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These favorable variances were partially offset by (i) a Ps.2,315.2 million unfavorable change in other finance income or expense, net, resulting primarily from changes in fair value of our derivative contracts; and (ii) a Ps.102.6 decrease in interest income, primarily explained by a lower interest rate and a lower average amount of cash equivalents in the first-quarter of 2021.

Share of Income or Loss of Associates and Joint Ventures, Net

Share of income or loss of associates and joint ventures, net, changed by Ps.5,400.4 million, to a share of income of Ps.51.8 million in the first-quarter of 2021, from a share of loss of Ps.5,348.6 million in the first-quarter of 2020. This favorable change reflected mainly the absence in 2021 of an impairment loss in the amount of Ps.5,455.4 million that decreased the carrying value of our investment in shares of Univision Holdings Inc. ('UHI') as of March 31, 2020. This favorable variance was partially offset by a lower share of income of UHI, the controlling company of Univision Communications Inc., and a share of loss of Ocesa Entretenimiento, S.A. de C.V., a live entertainment company with operations primarily in Mexico, in which we maintain a 40% interest.

Income Taxes

Income tax benefit decreased by Ps.1,622.4 million, to Ps.103.5 million in the first-quarter of 2021, compared with an income tax benefit of Ps.1,725.9 million in the first-quarter of 2020. This decrease reflected mainly a reduction of income tax losses of certain subsidiaries in the Company, resulting from a lower foreign exchange loss in the first-quarter of 2021.

Net Income Attributable to Non-controlling Interests

Net income attributable to non-controlling interests decreased by Ps.489.6 million, to Ps.258.6 million in the first-quarter of 2021, compared with Ps.748.2 million in the first-quarter of 2020. This decrease reflected primarily a lower portion of net income attributable to non-controlling interests in our Sky and Cable segments.


Financial position, liquidity and capital resources
Capital Expenditures

During the first quarter of 2021, we invested approximately U.S.$275.1 million in property, plant and equipment as capital expenditures. The following table sets forth the breakdown by segment of capital expenditures for the first quarter of 2021 and 2020.

Capital Expenditures
(Millions of U.S. Dollars)
1Q'21
1Q'20
Cable
199.8
160.9
Sky
73.6
61.8
Content and Other Businesses
1.7
4.7
Total
275.1
227.4




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Debt and Lease Liabilities

The following table sets forth our total debt and lease liabilities as of March 31, 2021 and December 31, 2020. Amounts are stated in millions of Mexican pesos.

March 31,
2021
December 31,
2020
Increase
(Decrease)
Current portion of long-term debt
617.0
617.0
-
Long-term debt, net of current portion
124,218.2
121,936.0
2,282.2
Total debt (1)
124,835.2
122,553.0
2,282.2
Current portion of long-term lease liabilities
1,255.1
1,277.7
(22.6)
Long-term lease liabilities, net of current portion
7,769.1
8,014.6
(245.5)
Total lease liabilities
9,024.2
9,292.3
(268.1)
Total debt and lease liabilities
133,859.4
131,845.3
2,014.1
(1)
As of March 31, 2021 and December 31, 2020, total debt is presented net of finance costs in the amount of Ps.1,295.0 million and Ps.1,324.3 million, respectively.

As of March 31, 2021, our consolidated net debt position (total debt and lease liabilities, less cash and cash equivalents, temporary investments, and certain non-current investments in financial instruments) was Ps.99,913.8 million. The aggregate amount of non-current investments in financial instruments included in our consolidated net debt position as of March 31, 2021, amounted to Ps.5,072.3 million.

Shares Outstanding

As of March 31, 2021 and December 31, 2020, our shares outstanding amounted to 325,518.6 million and 325,992.5 million shares, respectively, and our CPO equivalents outstanding amounted to 2,782.2 million and 2,786.3 million CPO equivalents, respectively. Not all of our shares are in the form of CPOs. The number of CPO equivalents is calculated by dividing the number of shares outstanding by 117.

As of March 31, 2021 and December 31, 2020, the GDS (Global Depositary Shares) equivalents outstanding amounted to 556.4 million and 557.3 million GDS equivalents, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.




Internal control









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Disclosure of critical performance measures and indicators that management uses to evaluate entity's performance against stated objectives
1Q'21
Margin
1Q'20
Margin
Change
%
%
%
Net sales1
23,828.9
100.0
23,081.3
100.0
3.2
Net loss
(325.8)
(1.4)
(8,903.7)
(38.3)
96.3
Net loss attributable to stockholders of the Company
(584.4)
(2.5)
(9,651.9)
(41.6)
93.9
Segment net sales
25,668.9
100.0
24,714.1
100.0
3.9
Operating segment income2
9,377.6
36.5
8,709.2
35.2
7.7
1.
Adjusted by disposed operations in relation to the sale of the Company's Radio business which was concluded on July 2nd, 2020.
2.
The operating segment income margin is calculated as a percentage of segment net sales.


Net Sales
1Q'21
%
1Q'20
%
Change
%
Cable
11,676.5
45.5
10,824.7
43.8
7.9
Sky
5,624.8
21.9
5,405.3
21.9
4.1
Content
7,416.1
28.9
6,727.6
27.2
10.2
Other Businesses
951.5
3.7
1,756.5
7.1
(45.8)
Segment Net Sales
25,668.9
100.0
24,714.1
100.0
3.9
Intersegment Operations1
(1,840.0)
(1,632.8)
Net Sales
23,828.9
23,081.3
3.2
Disposed Operations2
-
n/a
147.5
n/a
n/a
Net Sales
23,828.9
23,228.8
2.6

Operating Segment Income3
1Q'21
Margin
%
1Q'20
Margin
%
Change
%
Cable
4,834.6
41.4
4,490.3
41.5
7.7
Sky
2,154.4
38.3
2,234.0
41.3
(3.6)
Content
2,376.5
32.0
1,613.9
24.0
47.3
Other Businesses
12.1
1.3
371.0
21.1
(96.7)
Operating Segment Income
9,377.6
36.5
8,709.2
35.2
7.7
Corporate Expenses
(499.4)
(1.9)
(423.8)
(1.7)
(17.8)
Depreciation and Amortization
(5,169.8)
(21.7)
(5,151.5)
(22.2)
(0.4)
Other (Expense) Income, net
(152.9)
(0.6)
284.9
1.2
n/a
Intersegment Operations1
(15.0)
(0.1)
(17.8)
(0.1)
15.7
Disposed Operations2
-
n/a
25.6
n/a
n/a
Operating Income
3,540.5
14.9
3,426.6
14.8
3.3
1.
For segment reporting purposes, intersegment operations are included in each of the segment operations.
2.
The sale of the Company's Radio business was concluded on July 2nd, 2020. Accordingly, the net sales and the operating segment income associated with the Radio business, which was part of the Company's Other Businesses segment, are presented separately as disposed operations for the quarter ended March 31, 2020.
3.
Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other (expense) income, net.

11 of 94
Sustainability

During the first quarter of 2021, Televisa announced that it has committed to the Science Based Targets initiative (SBTi), joining 1,000+ companies worldwide. The initiative drives ambitious climate action into the private sector by enabling companies to set science-based emissions reduction targets. It defines and promotes best practice in emissions reductions and net-zero targets in line with climate science. Also, for the third consecutive year, the Company has been selected as one of only five Mexican companies to be included in the 2021 Bloomberg Gender-Equality Index (GEI). With this, Bloomberg recognizes Televisa's commitment to advancing gender equality and its continuous effort to build a diverse workforce that promotes an inclusive culture.

In addition, for the fourth consecutive year, Televisa has received the Distintivo Empresa Socialmente Responsable 2021 (2021 Socially Responsible Company recognition), granted by Centro Mexicano para la Filantropía (Mexican Center for Philanthropy), and Alianza por la Responsabilidad Social Empresarial (Alliance for the Social Responsibility of Businesses). The Distintivo Empresa Socialmente Responsable recognizes leading companies for their voluntary and public commitment to adding social value to their operations considering their stakeholders.

Additional Information Available on Website
The information in this management commentary should be read in conjunction with the financial statements and footnotes contained in the Company's Annual Report and on Form 20-F for the year ended December 31, 2020, which will be posted on the 'Reports and Filings' section of our investor relations website at televisair.com when filed with the Comisión Nacional Bancaria y de Valores and the Securities and Exchange Commission, respectively.
Disclaimer

This management commentary 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 management commentary 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 management commentary and in oral statements made by authorized officers of the Company. Statements contained in this release relating to the COVID-19 outbreak, the impact of which on our business performance and financial results remains inherently uncertain, are forward-looking statements. 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.


12 of 94

[110000] General information about financial statements

Ticker:
TLEVISA
Period covered by financial statements:
2021-01-01 TO 2021-03-31
Date of end of reporting period:
2021-03-31
Name of reporting entity or other means of identification:
TLEVISA
Description of presentation currency:
MXN
Level of rounding used in financial statements:
THOUSANDS OF MEXICAN PESOS
Consolidated:
YES
Number of quarter:
1
Type of issuer:
ICS
Explanation of change in name of reporting entity or other means of identification from end of preceding reporting period:
Description of nature of financial statements:





Disclosure of general information about financial statements
Corporate Information
Grupo Televisa, S.A.B. (the 'Company') is a limited liability public stock corporation ('Sociedad Anónima Bursátil' or 'S.A.B.'), incorporated under the laws of Mexico. Pursuant to the terms of the Company's bylaws ('Estatutos Sociales'), its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of 'Certificados de Participación Ordinarios' or 'CPOs' on the Mexican Stock Exchange ('Bolsa Mexicana de Valores') under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares or GDSs, on the New York Stock Exchange, or NYSE, under the ticker symbol TV. The Company's principal executive offices are located at Avenida Vasco de Quiroga 2000, Colonia Santa Fe, 01210 Ciudad de México, México.

Basis of Preparation and Accounting Policies
The interim condensed consolidated financial statements of the Group, as of March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020, are unaudited, and have been prepared in accordance with the guidelines provided by the International Accounting Standard 34, Interim Financial Reporting. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included herein.

The interim unaudited condensed consolidated financial statements should be read in conjunction with the Group's audited consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019, which have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board, and include, among other disclosures, the Group's most significant accounting policies, which were applied on a consistent basis as of March 31, 2021. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2021 did not have a significant impact in these interim un audited condensed consolidated financial statements.
13 of 94


Follow-up of


The financial institutions that perform financial analysis on the securities of Grupo Televisa, S.A.B., are as follows:

Institution:
Actinver
Banorte - IXE
Barclays
BBVA Bancomer
Bradesco
BTG Pactual
BofA Securities
Credit Suisse
Evercore
GBM
Goldman Sachs
Itaú Securities
Invex
JPMorgan
Morgan Stanley
Morningstar
Nau Securities
New Street
Vector

14 of 94
[210000] Statement of financial position, current/non-current

Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Statement of financial position
Assets
Current assets
Cash and cash equivalents
28,862,207,000
29,058,093,000
Trade and other current receivables
36,932,926,000
25,312,941,000
Current tax assets, current
4,929,639,000
5,054,080,000
Other current financial assets
11,128,000
0
Current inventories
2,259,563,000
1,641,300,000
Current biological assets
0
0
Other current non-financial assets
[1] 9,151,411,000
7,994,661,000
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
82,146,874,000
69,061,075,000
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
0
0
Total current assets
82,146,874,000
69,061,075,000
Non-current assets
Trade and other non-current receivables
0
0
Current tax assets, non-current
0
0
Non-current inventories
0
0
Non-current biological assets
0
0
Other non-current financial assets
5,703,301,000
7,002,712,000
Investments accounted for using equity method
0
0
Investments in subsidiaries, joint ventures and associates
23,455,760,000
22,813,531,000
Property, plant and equipment
84,100,646,000
83,281,627,000
Investment property
0
0
Right-of-use assets that do not meet definition of investment property
6,912,451,000
7,212,165,000
Goodwill
14,113,626,000
14,113,626,000
Intangible assets other than goodwill
28,562,567,000
28,610,592,000
Deferred tax assets
30,192,897,000
27,999,693,000
Other non-current non-financial assets
[2] 13,799,032,000
11,151,311,000
Total non-current assets
206,840,280,000
202,185,257,000
Total assets
288,987,154,000
271,246,332,000
Equity and liabilities
Liabilities
Current liabilities
Trade and other current payables
53,288,969,000
35,846,673,000
Current tax liabilities, current
1,558,184,000
2,013,648,000
Other current financial liabilities
3,728,454,000
4,568,599,000
Current lease liabilities
1,255,069,000
1,277,754,000
Other current non-financial liabilities
0
0
Current provisions
Current provisions for employee benefits
0
0
Other current provisions
47,009,000
2,992,000
Total current provisions
47,009,000
2,992,000
Total current liabilities other than liabilities included in disposal groups classified as held for sale
59,877,685,000
43,709,666,000
Liabilities included in disposal groups classified as held for sale
0
0
Total current liabilities
59,877,685,000
43,709,666,000
Non-current liabilities
Trade and other non-current payables
2,593,764,000
2,588,580,000




15 of 94

Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Current tax liabilities, non-current
123,945,000
767,115,000
Other non-current financial liabilities
125,009,305,000
123,395,251,000
Non-current lease liabilities
7,769,077,000
8,014,597,000
Other non-current non-financial liabilities
0
0
Non-current provisions
Non-current provisions for employee benefits
2,120,683,000
2,080,651,000
Other non-current provisions
977,292,000
965,128,000
Total non-current provisions
3,097,975,000
3,045,779,000
Deferred tax liabilities
1,817,346,000
1,786,311,000
Total non-current liabilities
140,411,412,000
139,597,633,000
Total liabilities
200,289,097,000
183,307,299,000
Equity
Issued capital
4,907,765,000
4,907,765,000
Share premium
15,889,819,000
15,889,819,000
Treasury shares
16,129,624,000
16,079,124,000
Retained earnings
83,949,034,000
84,280,397,000
Other reserves
(14,700,681,000)
(15,556,848,000)
Total equity attributable to owners of parent
73,916,313,000
73,442,009,000
Non-controlling interests
14,781,744,000
14,497,024,000
Total equity
88,698,057,000
87,939,033,000
Total equity and liabilities
288,987,154,000
271,246,332,000

16 of 94

[310000] Statement of comprehensive income, profit or loss, by function of expense
Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
Profit or loss
Profit (loss)
Revenue
23,828,948,000
23,228,788,000
Cost of sales
13,884,633,000
13,738,042,000
Gross profit
9,944,315,000
9,490,746,000
Distribution costs
2,522,585,000
2,718,015,000
Administrative expenses
3,728,370,000
3,631,003,000
Other income
(152,928,000)
284,928,000
Other expense
0
0
Profit (loss) from operating activities
3,540,432,000
3,426,656,000
Finance income
121,319,000
2,421,994,000
Finance costs
4,142,872,000
11,129,593,000
Share of profit (loss) of associates and joint ventures accounted for using equity method
51,826,000
(5,348,539,000)
Profit (loss) before tax
(429,295,000)
(10,629,482,000)
Tax income (expense)
(103,540,000)
(1,725,844,000)
Profit (loss) from continuing operations
(325,755,000)
(8,903,638,000)
Profit (loss) from discontinued operations
0
0
Profit (loss)
(325,755,000)
(8,903,638,000)
Profit (loss), attributable to
Profit (loss), attributable to owners of parent
(584,380,000)
(9,651,898,000)
Profit (loss), attributable to non-controlling interests
258,625,000
748,260,000
Earnings per share
Earnings per share
Earnings per share
Basic earnings per share
Basic earnings (loss) per share from continuing operations
(0.21)
(3.39)
Basic earnings (loss) per share from discontinued operations
0
0
Total basic earnings (loss) per share
[3] (0.21)
(3.39)
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations
(0.19)
(3.2)
Diluted earnings (loss) per share from discontinued operations
0
0
Total diluted earnings (loss) per share
[4] (0.19)
(3.2)


17 of 94

[410000] Statement of comprehensive income, OCI components presented net of tax
Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
Statement of comprehensive income
Profit (loss)
(325,755,000)
(8,903,638,000)
Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss, net of tax
Other comprehensive income, net of tax, gains (losses) from investments in equity instruments
5,008,000
(16,606,001,000)
Other comprehensive income, net of tax, gains (losses) on revaluation
0
0
Other comprehensive income, net of tax, gains (losses) on remeasurements of defined benefit plans
0
0
Other comprehensive income, net of tax, change in fair value of financial liability attributable to change in credit risk of liability
0
0
Other comprehensive income, net of tax, gains (losses) on hedging instruments that hedge investments in equity instruments
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss, net of tax
0
0
Total other comprehensive income that will not be reclassified to profit or loss, net of tax
5,008,000
(16,606,001,000)
Components of other comprehensive income that will be reclassified to profit or loss, net of tax
Exchange differences on translation
Gains (losses) on exchange differences on translation, net of tax
281,185,000
1,779,762,000
Reclassification adjustments on exchange differences on translation, net of tax
0
0
Other comprehensive income, net of tax, exchange differences on translation
281,185,000
1,779,762,000
Available-for-sale financial assets
Gains (losses) on remeasuring available-for-sale financial assets, net of tax
0
0
Reclassification adjustments on available-for-sale financial assets, net of tax
0
0
Other comprehensive income, net of tax, available-for-sale financial assets
0
0
Cash flow hedges
Gains (losses) on cash flow hedges, net of tax
596,123,000
259,345,000
Reclassification adjustments on cash flow hedges, net of tax
0
0
Amounts removed from equity and included in carrying amount of non-financial asset (liability) whose acquisition or incurrence was hedged highly probable forecast transaction, net of tax
0
0
Other comprehensive income, net of tax, cash flow hedges
596,123,000
259,345,000
Hedges of net investment in foreign operations
Gains (losses) on hedges of net investments in foreign operations, net of tax
0
0
Reclassification adjustments on hedges of net investments in foreign operations, net of tax
0
0
Other comprehensive income, net of tax, hedges of net investments in foreign operations
0
0
Change in value of time value of options
Gains (losses) on change in value of time value of options, net of tax
0
0
Reclassification adjustments on change in value of time value of options, net of tax
0
0
Other comprehensive income, net of tax, change in value of time value of options
0
0
Change in value of forward elements of forward contracts
Gains (losses) on change in value of forward elements of forward contracts, net of tax
0
0
Reclassification adjustments on change in value of forward elements of forward contracts, net of tax
0
0
Other comprehensive income, net of tax, change in value of forward elements of forward contracts
0
0
Change in value of foreign currency basis spreads
Gains (losses) on change in value of foreign currency basis spreads, net of tax
0
0
Reclassification adjustments on change in value of foreign currency basis spreads, net of tax
0
0
Other comprehensive income, net of tax, change in value of foreign currency basis spreads
0
0


18 of 94

Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
Financial assets measured at fair value through other comprehensive income
Gains (losses) on financial assets measured at fair value through other comprehensive income, net of tax
0
0
Reclassification adjustments on financial assets measured at fair value through other comprehensive income, net of tax
0
0
Amounts removed from equity and adjusted against fair value of financial assets on reclassification out of fair value through other comprehensive income measurement category, net of tax
0
0
Other comprehensive income, net of tax, financial assets measured at fair value through other comprehensive income
0
0
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss, net of tax
(54,000)
(11,449,000)
Total other comprehensive income that will be reclassified to profit or loss, net of tax
877,254,000
2,027,658,000
Total other comprehensive income
882,262,000
(14,578,343,000)
Total comprehensive income
556,507,000
(23,481,981,000)
Comprehensive income attributable to
Comprehensive income, attributable to owners of parent
271,787,000
(24,479,502,000)
Comprehensive income, attributable to non-controlling interests
284,720,000
997,521,000


19 of 94

[520000] Statement of cash flows, indirect method
Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
Statement of cash flows
Cash flows from (used in) operating activities
Profit (loss)
(325,755,000)
(8,903,638,000)
Adjustments to reconcile profit (loss)
+ Discontinued operations
0
0
+ Adjustments for income tax expense
(103,540,000)
(1,725,844,000)
+ (-) Adjustments for finance costs
0
0
+ Adjustments for depreciation and amortisation expense
5,169,885,000
5,151,502,000
+ Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
0
0
+ Adjustments for provisions
384,739,000
455,643,000
+ (-) Adjustments for unrealised foreign exchange losses (gains)
1,765,790,000
11,084,178,000
+ Adjustments for share-based payments
253,017,000
209,144,000
+ (-) Adjustments for fair value losses (gains)
117,072,000
(2,198,144,000)
- Adjustments for undistributed profits of associates
0
0
+ (-) Adjustments for losses (gains) on disposal of non-current assets
(12,237,000)
(32,602,000)
+ Share of income of associates and joint ventures
(51,826,000)
5,348,539,000
+ (-) Adjustments for decrease (increase) in inventories
(4,249,580,000)
382,237,000
+ (-) Adjustments for decrease (increase) in trade accounts receivable
(9,814,265,000)
(5,449,008,000)
+ (-) Adjustments for decrease (increase) in other operating receivables
(2,084,569,000)
(1,960,935,000)
+ (-) Adjustments for increase (decrease) in trade accounts payable
4,854,812,000
3,569,827,000
+ (-) Adjustments for increase (decrease) in other operating payables
12,367,537,000
5,785,138,000
+ Other adjustments for non-cash items
0
0
+ Other adjustments for which cash effects are investing or financing cash flow
0
0
+ Straight-line rent adjustment
0
0
+ Amortization of lease fees
0
0
+ Setting property values
0
0
+ (-) Other adjustments to reconcile profit (loss)
116,097,000
118,223,000
+ (-) Total adjustments to reconcile profit (loss)
8,712,932,000
20,737,898,363
Net cash flows from (used in) operations
8,387,177,000
11,834,260,363
- Dividends paid
0
0
+ Dividends received
0
0
- Interest paid
(2,302,422,000)
(2,528,229,000)
+ Interest received
(15,027,000)
(23,672,000)
+ (-) Income taxes refund (paid)
3,143,580,000
3,807,661,000
+ (-) Other inflows (outflows) of cash
0
0
Net cash flows from (used in) operating activities
7,530,992,000
10,531,156,000
Cash flows from (used in) investing activities
+ Cash flows from losing control of subsidiaries or other businesses
0
10,601,000
- Cash flows used in obtaining control of subsidiaries or other businesses
0
179,590,000
+ Other cash receipts from sales of equity or debt instruments of other entities
0
0
- Other cash payments to acquire equity or debt instruments of other entities
0
0
+ Other cash receipts from sales of interests in joint ventures
0
0
- Other cash payments to acquire interests in joint ventures
0
0
+ Proceeds from sales of property, plant and equipment
326,998,000
250,398,000
- Purchase of property, plant and equipment
5,596,853,000
4,552,915,000
+ Proceeds from sales of intangible assets
0
0
- Purchase of intangible assets
486,200,000
199,971,000
+ Proceeds from sales of other long-term assets
0
0



20 of 94

Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
- Purchase of other long-term assets
0
0
+ Proceeds from government grants
0
0
- Cash advances and loans made to other parties
0
0
+ Cash receipts from repayment of advances and loans made to other parties
0
0
- Cash payments for futures contracts, forward contracts, option contracts and swap contracts
0
0
+ Cash receipts from futures contracts, forward contracts, option contracts and swap contracts
0
0
+ Dividends received
0
0
- Interest paid
0
0
+ Interest received
0
0
+ (-) Income taxes refund (paid)
0
0
+ (-) Other inflows (outflows) of cash
1,268,731,000
(20,196,000)
Net cash flows from (used in) investing activities
(4,487,324,000)
(4,691,673,000)
Cash flows from (used in) financing activities
+ Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control
0
0
- Payments from changes in ownership interests in subsidiaries that do not result in loss of control
0
1,330,001,000
+ Proceeds from issuing shares
0
0
+ Proceeds from issuing other equity instruments
0
0
- Payments to acquire or redeem entity's shares
50,500,000
195,597,000
- Payments of other equity instruments
0
0
+ Proceeds from borrowings
0
14,770,594,000
- Repayments of borrowings
60,622,000
60,522,000
- Payments of finance lease liabilities
231,000,000
105,872,000
- Payments of lease liabilities
186,412,000
232,987,000
+ Proceeds from government grants
0
0
- Dividends paid
0
0
- Interest paid
1,998,000,000
2,144,314,000
+ (-) Income taxes refund (paid)
0
0
+ (-) Other inflows (outflows) of cash
(745,593,000)
50,934,000
Net cash flows from (used in) financing activities
(3,272,127,000)
10,752,235,000
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
(228,459,000)
16,591,718,000
Effect of exchange rate changes on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
32,573,000
378,598,000
Net increase (decrease) in cash and cash equivalents
(195,886,000)
16,970,316,000
Cash and cash equivalents at beginning of period
29,058,093,000
27,969,953,000
Cash and cash equivalents at end of period
28,862,207,000
44,940,269,000


21 of 94

[610000] Statement of changes in equity - Accumulated Current

Components of equity
Sheet 1 of 3
Issued capital
Share premium
Treasury shares
Retained earnings
Revaluation surplus
Reserve of exchange differences on translation
Reserve of cash flow hedges
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
Reserve of change in value of time value of options
Statement of changes in equity
Equity at beginning of period
4,907,765,000
15,889,819,000
16,079,124,000
84,280,397,000
0
1,804,327,000
(1,340,854,000)
0
0
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
(584,380,000)
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
255,090,000
596,123,000
0
0
Total comprehensive income
0
0
0
(584,380,000)
0
255,090,000
596,123,000
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
50,500,000
253,017,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
50,500,000
(331,363,000)
0
255,090,000
596,123,000
0
0
Equity at end of period
4,907,765,000
15,889,819,000
16,129,624,000
83,949,034,000
0
2,059,417,000
(744,731,000)
0
0


22 of 94

Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
Reserve of change in value of foreign currency basis spreads
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income
Reserve of gains and losses on remeasuring available-for-sale financial assets
Reserve of share-based payments
Reserve of remeasurements of defined benefit plans
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
Reserve of gains and losses from investments in equity instruments
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
Statement of changes in equity
Equity at beginning of period
0
0
(14,940,039,000)
0
0
(943,834,000)
0
0
0
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
5,008,000
0
0
0
0
0
0
Total comprehensive income
0
0
5,008,000
0
0
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
5,008,000
0
0
0
0
0
0
Equity at end of period
0
0
(14,935,031,000)
0
0
(943,834,000)
0
0
0


23 of 94

Components of equity
Sheet 3 of 3
Reserve for catastrophe
Reserve for equalisation
Reserve of discretionary participation features
Other comprehensive income
Other reserves
Equity attributable to owners of parent
Non-controlling interests
Equity
Statement of changes in equity
Equity at beginning of period
0
0
0
(136,448,000)
(15,556,848,000)
73,442,009,000
14,497,024,000
87,939,033,000
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
0
0
(584,380,000)
258,625,000
(325,755,000)
Other comprehensive income
0
0
0
(54,000)
856,167,000
856,167,000
26,095,000
882,262,000
Total comprehensive income
0
0
0
(54,000)
856,167,000
271,787,000
284,720,000
556,507,000
Issue of equity
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
202,517,000
0
202,517,000
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
0
(54,000)
856,167,000
474,304,000
284,720,000
759,024,000
Equity at end of period
0
0
0
(136,502,000)
(14,700,681,000)
73,916,313,000
14,781,744,000
88,698,057,000


24 of 94
[610000] Statement of changes in equity - Accumulated Previous

Components of equity
Sheet 1 of 3
Issued capital
Share premium
Treasury shares
Retained earnings
Revaluation surplus
Reserve of exchange differences on translation
Reserve of cash flow hedges
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
Reserve of change in value of time value of options
Statement of changes in equity
Equity at beginning of period
4,907,765,000
15,889,819,000
14,018,847,000
82,652,278,000
0
1,280,541,000
(381,753,000)
0
0
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
(9,651,898,000)
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
1,530,501,000
259,345,000
0
0
Total comprehensive income
0
0
0
(9,651,898,000)
0
1,530,501,000
259,345,000
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
195,597,000
203,756,000
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
195,597,000
(9,448,142,000)
0
1,530,501,000
259,345,000
0
0
Equity at end of period
4,907,765,000
15,889,819,000
14,214,444,000
73,204,136,000
0
2,811,042,000
(122,408,000)
0
0



25 of 94

Components of equity
Sheet 2 of 3
Reserve of change in value of forward elements of forward contracts
Reserve of change in value of foreign currency basis spreads
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income
Reserve of gains and losses on remeasuring available-for-sale financial assets
Reserve of share-based payments
Reserve of remeasurements of defined benefit plans
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
Reserve of gains and losses from investments in equity instruments
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
Statement of changes in equity
Equity at beginning of period
0
0
1,202,689,000
0
0
(705,611,000)
0
0
0
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
(16,606,001,000)
0
0
0
0
0
0
Total comprehensive income
0
0
(16,606,001,000)
0
0
0
0
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
0
0
0
0
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
(16,606,001,000)
0
0
0
0
0
0
Equity at end of period
0
0
(15,403,312,000)
0
0
(705,611,000)
0
0
0


26 of 94
Components of equity
Sheet 3 of 3
Reserve for catastrophe
Reserve for equalisation
Reserve of discretionary participation features
Other comprehensive income
Other reserves
Equity attributable to owners of parent
Non-controlling interests
Equity
Statement of changes in equity
Equity at beginning of period
0
0
0
(75,415,000)
1,320,451,000
90,751,466,000
14,873,767,000
105,625,233,000
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
0
0
(9,651,898,000)
748,260,000
(8,903,638,000)
Other comprehensive income
0
0
0
(11,449,000)
(14,827,604,000)
(14,827,604,000)
249,261,000
(14,578,343,000)
Total comprehensive income
0
0
0
(11,449,000)
(14,827,604,000)
(24,479,502,000)
997,521,000
(23,481,981,000)
Issue of equity
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
0
0
Increase through other contributions by owners, equity
0
0
0
0
0
0
0
0
Decrease through other distributions to owners, equity
0
0
0
0
0
0
0
0
Increase (decrease) through other changes, equity
0
0
0
0
0
0
0
0
Increase (decrease) through treasury share transactions, equity
0
0
0
0
0
0
0
0
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity
0
0
0
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
8,159,000
0
8,159,000
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied
0
0
0
0
0
0
0
0
Total increase (decrease) in equity
0
0
0
(11,449,000)
(14,827,604,000)
(24,471,343,000)
997,521,000
(23,473,822,000)
Equity at end of period
0
0
0
(86,864,000)
(13,507,153,000)
66,280,123,000
15,871,288,000
82,151,411,000




27 of 94

[700000] Informative data about the Statement of financial position

Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Informative data of the Statement of Financial Position
Capital stock (nominal)
2,459,154,000
2,459,154,000
Restatement of capital stock
2,448,611,000
2,448,611,000
Plan assets for pensions and seniority premiums
1,253,981,000
1,240,864,000
Number of executives
74
72
Number of employees
43,358
43,215
Number of workers
0
0
Outstanding shares
325,518,611,925
325,992,461,925
Repurchased shares
31,788,659,877
31,314,809,877
Restricted cash
0
0
Guaranteed debt of associated companies
0
0



28 of 94

[700002] Informative data about the Income statement

Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
Informative data of the Income Statement
Operating depreciation and amortization
5,169,885,000
5,151,503,000



29 of 94

[700003] Informative data - Income statement for 12 months

Concept
Current Year
2020-04-01 - 2021-03-31
Previous Year
2019-04-01 - 2020-03-31
Informative data - Income Statement for 12 months
Revenue
97,961,794,000
101,590,724,000
Profit (loss) from operating activities
17,639,144,000
16,961,290,000
Profit (loss)
8,880,707,000
(3,654,965,000)
Profit (loss), attributable to owners of parent
7,817,176,000
(5,567,477,000)
Operating depreciation and amortization
21,279,169,000
20,944,348,000



30 of 94

[800001] Breakdown of credits

Institution
Foreign institution (yes/no)
Contract signing date
Expiration date
Interest rate
Denomination
Domestic currency
Foreign currency
Time interval
Time interval
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Banks
Foreign trade
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Banks - secured
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Commercial banks
BANORTE1
NOT
2015-05-15
2022-04-30
TIIE+1.0
181,493,000
60,498,000
549,618,000
HSBC 2
NOT
2016-03-08
2023-03-08
7.13
875,000,000
SCOTIABANK INVERLAT 3
NOT
2016-03-08
2023-03-08
7
375,000,000
1,500,000,000
BANCO SANTANDER 4
NOT
2017-11-23
2022-11-22
TIIE+1.25
1,497,000,000
HSBC 5
NOT
2017-11-23
2022-10-21
TIIE+1.30
1,996,136,000
SCOTIABANK INVERLAT 6
NOT
2017-12-07
2023-02-03
TIIE+1.30
2,494,435,000
SINDICATED 7
NOT
2019-06-05
2024-06-28
TIIE+1.05
9,931,037,000
TOTAL
181,493,000
435,498,000
6,417,754,000
2,494,435,000
9,931,037,000
0
0
0
0
0
0
0
Other banks
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Total banks
TOTAL
181,493,000
435,498,000
6,417,754,000
2,494,435,000
9,931,037,000
0
0
0
0
0
0
0
Stock market
Listed on stock exchange - unsecured
SENIOR NOTES 1
YES
2007-05-09
2037-05-11
8.93
4,488,278,000
SENIOR NOTES 3
YES
2013-05-14
2043-05-14
7.62
6,447,501,000
NOTES 4
NOT
2017-10-09
2027-09-27
8.79
4,484,468,000
SENIOR NOTES 5
YES
2005-03-18
2025-03-18
6.97
12,128,282,000
SENIOR NOTES 6
YES
2002-03-11
2032-03-11
8.94
6,121,332,000
SENIOR NOTES 7
YES
2009-11-23
2040-01-16
6.97
12,162,628,000
SENIOR NOTES 8
YES
2014-05-13
2045-05-15
5.26
20,060,461,000
SENIOR NOTES 9
YES
2015-11-24
2026-01-30
4.86
6,117,578,000
SENIOR NOTES 10
YES
2015-11-24
2046-01-31
6.44
18,304,193,000
SENIOR NOTES 11
YES
2019-05-21
2049-05-24
5.52
15,060,278,000
TOTAL
0
0
0
0
0
15,420,247,000
0
0
0
0
12,128,282,000
77,826,470,000
Listed on stock exchange - secured
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Private placements - unsecured
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Private placements - secured
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Total listed on stock exchanges and private placements
TOTAL
0
0
0
0
0
15,420,247,000
0
0
0
0
12,128,282,000
[5] 77,826,470,000
Other current and non-current liabilities with cost
Other current and non-current liabilities with cost
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0




31 of 94

Institution
Foreign institution (yes/no)
Contract signing date
Expiration date
Interest rate
Denomination
Domestic currency
Foreign currency
Time interval
Time interval
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Current year
Until 1 year
Until 2 years
Until 3 years
Until 4 years
Until 5 years or more
Total other current and non-current liabilities with cost
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Suppliers
Suppliers
SUPPLIERS 1
NOT
2020-12-31
2021-03-31
18,783,889,000
5,123,770,000
TRANSMISSION RIGHTS 2
NOT
2012-05-07
2026-12-29
496,051,000
759,503,000
168,081,000
27,274,000
102,535,000
2,402,488,000
1,059,065,000
228,855,000
179,944,000
68,507,000
TOTAL
0
19,279,940,000
759,503,000
168,081,000
27,274,000
102,535,000
0
7,526,258,000
1,059,065,000
228,855,000
179,944,000
68,507,000
Total suppliers
TOTAL
0
19,279,940,000
759,503,000
168,081,000
27,274,000
102,535,000
0
7,526,258,000
1,059,065,000
228,855,000
179,944,000
68,507,000
Other current and non-current liabilities
Other current and non-current liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
1,205,019,000
417,699,000
373,381,000
TOTAL
0
1,205,019,000
417,699,000
373,381,000
0
0
0
0
0
0
0
0
Total other current and non-current liabilities
TOTAL
0
1,205,019,000
417,699,000
373,381,000
0
0
0
0
0
0
0
0
Total credits
TOTAL
181,493,000
20,920,457,000
7,594,956,000
3,035,897,000
9,958,311,000
15,522,782,000
0
7,526,258,000
1,059,065,000
228,855,000
12,308,226,000
77,894,977,000



32 of 94

[800003] Annex - Monetary foreign currency position
Currencies
Dollars
Dollar equivalent in pesos
Other currencies
equivalent in dollars
Other currencies
equivalent in pesos
Total pesos
Foreign currency position
Monetary assets
Current monetary assets
1,096,313,000
22,440,650,000
36,892,000
755,150,000
23,195,800,000
Non-current monetary assets
0
0
0
0
0
Total monetary assets
1,096,313,000
22,440,650,000
36,892,000
755,150,000
23,195,800,000
Liabilities position
Current liabilities
492,462,000
10,080,303,000
6,093,000
124,719,000
10,205,022,000
Non-current liabilities
4,725,507,000
96,727,348,000
0
0
96,727,348,000
Total liabilities
5,217,969,000
106,807,651,000
6,093,000
124,719,000
106,932,370,000
Net monetary assets (liabilities)
(4,121,656,000)
(84,367,001,000)
30,799,000
630,431,000
[6] (83,736,570,000)



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[800005] Annex - Distribution of income by product


Income type
National income
Export income
Income of subsidiaries abroad
Total income
CONTENT:
CONTENT:
0
0
0
0
TELEVISA
CONTENT - ADVERTISING
3,333,402,000
41,464,000
0
3,374,866,000
CONTENT - NETWORK SUBSCRIPTION REVENUE
1,113,493,000
231,293,000
0
1,344,786,000
CONTENT - LICENSING AND SYNDICATION
475,501,000
2,220,914,000
0
2,696,415,000
SKY (INCLUDES LEASING OF SET-TOP EQUIPMENT):
SKY (INCLUDES LEASING OF SET-TOP EQUIPMENT):
0
0
0
0
SKY, VETV, BLUE TO GO, BLUE TELECOMM
SKY - DTH BROADCAST SATELLITE TV
4,923,913,000
0
410,508,000
5,334,421,000
SKY - PAY PER VIEW
5,026,000
0
2,324,000
7,350,000
SKY - ADVERTISING
283,018,000
0
0
283,018,000
CABLE (INCLUDES LEASING OF SET-TOP EQUIPMENT):
CABLE (INCLUDES LEASING OF SET-TOP EQUIPMENT):
0
0
0
0
IZZI, IZZI GO
CABLE - DIGITAL TV SERVICE
4,006,448,000
0
0
4,006,448,000
CABLE - BROADBAND SERVICES
4,538,134,000
0
0
4,538,134,000
CABLE - SERVICE INSTALLATION
112,312,000
0
0
112,312,000
CABLE - ADVERTISING
393,331,000
0
0
393,331,000
CABLE - TELEPHONY
1,222,536,000
0
0
1,222,536,000
CABLE - OTHER INCOME
19,627,000
0
0
19,627,000
BESTEL, METRORED
CABLE - ENTERPRISE OPERATIONS
1,316,362,000
0
67,713,000
1,384,075,000
OTHER BUSINESSES:
OTHER BUSINESSES:
0
0
0
0
TV Y NOVELAS, VANIDADES, TU,COSMOPOLITAN, COCINA FÁCIL,CARAS, HARPER´S BAZAR,ESQUIRE,MUY INTERESANTE
PUBLISHING - MAGAZINE CIRCULATION
76,895,000
0
0
76,895,000
PUBLISHING - ADVERTISING
17,362,000
0
0
17,362,000
PUBLISHING - OTHER INCOME
608,000
0
0
608,000
VIDEOCINE, PANTELION
DISTRIBUTION, RENTALS AND SALE OF MOVIE RIGHTS
153,020,000
0
0
153,020,000
CLUB DE FÚTBOL AMÉRICA, ESTADIO AZTECA
SPECIAL EVENTS AND SHOW PROMOTION
395,756,000
6,109,000
0
401,865,000
PLAY CITY
GAMING
224,926,000
0
0
224,926,000
AMERICAN CARS, DOLOREAN,VOLKSWAGEN COLLECTION, CASA DE MUÑECAS, SELECCIONES, AVIONES DE COMBATE
PUBLISHING DISTRIBUTION
76,959,000
0
0
76,959,000
INTERSEGMENT ELIMINATIONS
INTERSEGMENT ELIMINATIONS
(1,840,006,000)
0
0
(1,840,006,000)
TOTAL
20,848,623,000
2,499,780,000
480,545,000
23,828,948,000




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[800007] Annex - Financial derivate instruments




Management discussion about the policy uses of financial derivative instruments, explaining if these policies are allowed just for coverage or for other uses like trading

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

III. QUALITATIVE AND QUANTITATIVE INFORMATION
i.Management's discussion of the policies concerning the use of financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes. The discussion must include a general description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party. If applicable, provide information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.
Management's discussion of the policies concerning the use of financial derivative instruments, and explanation as to whether such policies permit the use of said instruments solely for hedging or also for trading or other purposes.
In accordance with the policies and procedures implemented by the Vice President of Finance and Risk and the Vice President and Corporate Controller, along with the Vice President of Internal Audit, the Company has entered into certain financial derivative transactions for hedging purposes in both the Mexican and international markets so as to manage its exposure to the market risks associated with the changes in interest and foreign exchange rates and inflation. In addition, the Company's Investments Committee has established guidelines for the investment in structured notes or deposits associated with other derivatives, which by their nature may be considered as derivative transactions for trading purposes. It should be noted that in the first quarter of 2021, no such financial derivatives were outstanding. Pursuant to the provisions of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), certain financial derivative transactions originally intended to serve as a hedge and in effect as of March 31, 2021, are not within the scope of hedge accounting as specified in such Standards and, consequently, are recognized in the accounting based on the provisions included in the aforementioned Standards.
General description of the objectives sought in the execution of financial derivative transactions; the relevant instruments; the hedging or trading strategies implemented in connection therewith; the relevant trading markets; the eligible counterparties; the policies for the appointment of calculation or valuation agents; the principal terms and conditions of the relevant contracts; the policies as to margins, collateral and lines of credit; the authorization process and levels of authorization required by type of transaction (e.g., full hedging, partial hedging, speculation), stating whether the transactions were previously approved by the committee(s) responsible for the development of corporate and auditing practices; the internal control procedures applicable to the management of the market and liquidity risks associated with the positions; and the existence of an independent third party responsible for the review of such procedures and, as the case may be, the observations raised or deficiencies identified by such third party.
The Company's principal objective when entering into financial derivative transactions is to mitigate the effects of unforeseen changes in interest and foreign exchange rates and inflation, so as to reduce the volatility in its results and cash flows as a result of such changes.
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The Company monitors its exposure to the interest rate risk by: (i) assessing the difference between the interest rates applicable to its debt and temporary investments, and the prevailing market rates for similar instruments; (ii) reviewing its cash flow requirements and financial ratios (interest coverage); (iii) assessing the actual and budgeted-for trends in the principal markets; and (iv) assessing the prevailing industry practices and other similar companies. This approach enables the Company to determine the optimum mix between fixed- and variable-rate interest for its debt.
Foreign exchange risk is monitored by assessing the Company's monetary position in U.S. dollars and its budgeted cash flow requirements for investments anticipated to be denominated in U.S. dollars and the service of its U.S. dollar-denominated debt.
Financial derivative transactions are reported from time to time to the Audit Committee.
The Company has entered into master derivatives agreements with both domestic and foreign financial institutions, that are internationally recognized institutions with which the Company, from time to time, has entered into financial transactions involving corporate and investment banking, as well as treasury services. The form agreement used in connection with financial derivatives transactions with foreign financial institutions is the Master Agreement published by the International Swaps and Derivatives Association, Inc. ('ISDA') and with local institutions is the Master Agreement published by ISDA and in some instances, using the form agreement ISDAmex. In both cases, the main terms and conditions are standard for these types of transactions and include mechanisms for the appointment of calculation or valuation agents.
In addition, the Company enters into standard guaranty agreements that set forth the margins, collateral and lines of credit applicable in each instance. These agreements establish the credit limits granted by the financial institutions with whom the Company enters into master financial derivative agreements, which specify the margin implications in the case of potential negative changes in the market value of its open financial derivative positions. Pursuant to the agreements entered into by the Company, financial institutions are entitled to make margin calls if certain thresholds are exceeded. In the event of a change in the credit rating issued to the Company by a recognized credit rating agency, the credit limit granted by each counterparty would be modified.
As of the date hereof, the Company has never experienced a margin call with respect to its financial derivative transactions.
In compliance with its risk management objectives and hedging strategies, the Company generally utilizes the following financial derivative transactions:
1.
Cross-currency interest rate swaps (i.e., coupon swaps);
2.
Interest rate and inflation-indexed swaps;
3.
Cross-currency principal and interest rate swaps;
4.
Swaptions;
5.
Forward exchange rate contracts;
6.
FX options;
7.
Interest Rate Caps and Floors contracts;
8.
Fixed-price contracts for the acquisition of government securities (i.e., Treasury locks); and
9.
Credit Default Swaps.
The strategies for the acquisition of financial derivatives transactions are approved by the Risk Management Committee in accordance with the Policies and Objectives for the Use of Financial Derivatives.
During the quarter from January to March 2021, there were no defaults or margin calls under the aforementioned financial derivative transactions.


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The Company monitors on a weekly basis the flows generated by the fair market value of and the potential for margin calls under its open financial derivative transactions. The calculation or valuation agent designated in the relevant Master Agreement, which is always the counterparty, issues monthly reports as to the fair market value of the Company's open positions.
The Risk Management area is responsible for measuring, at least once a month, the Company's exposure to the financial market risks associated with its financings and investments, and for submitting a report with respect to the Company's risk position and the valuation of its financial derivatives to the Finance Committee on a monthly basis, and to the Risk Management Committee on a quarterly basis. The Company monitors the credit rating assigned to its counterparties in its outstanding financial derivative transactions on a regular basis.
The office of the Comptroller is responsible for the validation of the Company's accounting records as related to its financial derivative transactions, based upon the confirmations received from the relevant financial intermediaries, and for obtaining from such intermediaries, on a monthly basis, confirmations or account statements supporting the market valuation of its open financial derivative positions.
As a part of the yearly audit on the Company, the aforementioned procedures are reviewed by the Company's external auditors. As of the date hereof, the Company's auditors have not raised any observation or identified any deficiency therein.
Information concerning the composition of the overall risk management committee, its operating rules, and the existence of an overall risk management manual.
The Company has a Risk Management Committee, which is responsible for monitoring the Company's risk management activities and approving the hedging strategies used to mitigate the financial market risks to which the Company is exposed. The assessment and hedging of the financial market risks are subject to the policies and procedures applicable to the Company's Risk Management Committee, the Finance and Risk Management areas and the Comptroller that form the Risk Management Manual of the Company. In general terms, the Risk Management Committee is comprised of members of the Corporate Management, Corporate Comptroller, Tax Control and Advice, Information to the Stock Exchange, Finance and Risk, Legal, Administration and Finance, Financial Planning and Corporate Finance areas.

General description about valuation techniques, standing out the instruments valuated at cost or fair value, just like methods and valuation techniques

ii. General description of the valuation methods, indicating whether the instruments are valued at cost or at their fair value pursuant to the applicable accounting principles, the relevant reference valuation methods and techniques, and the events taken into consideration. Describe the policies for and frequency of the valuation, as well as the actions taken in light of the values obtained therefrom. Clarify whether the valuation is performed by an independent third party, and indicate if such third party is the structurer, seller or counterparty of the financial instrument. As with respect to financial derivative transactions for hedging purposes, explain the method used to determine the effectiveness thereof and indicate the level of coverage provided thereby.
The Company values its financial derivative instruments based upon the standard models and calculators provided by recognized market makers. In addition, the Company uses the relevant market variables available from online sources. The financial derivative instruments are valued at a reasonable value pursuant to the applicable accounting provisions.
In the majority of cases, the valuation at a reasonable value is carried out on a monthly basis based on valuations of the counterparties and the verification of such reasonable value with internal valuations prepared by the Risk Management area of the Company. Accounting wise, the valuation of the counterparty is registered.
The Company performs its valuations without the participation of any independent third party.
The method used by the Company to determine the effectiveness of an instrument depends on the hedging strategy and on whether the relevant transaction is intended as a fair-value hedge or a cash-flow hedge. The Company's methods take into consideration the prospective cash flows generated by or the changes in the fair value of the financial derivative, and the cash flows generated by or the changes in the fair value of the underlying position that it seeks to hedge to determine, in each case, the hedging ratio.


37 of 94



Management discussion about internal and external sources of liquidity that could be used for attending requirements related to financial derivate instruments
iii. Management's discussion of the internal and external sources of liquidity that could be used to satisfy the Company's requirements in connection with its financial derivatives.
As of the date hereof, the Company's management has not discussed internal and external sources of liquidity so as to satisfy its requirements in connection with its financial derivatives since, based upon the aggregate amount of the Company's financial derivative transactions, management is of the opinion that the Company's significant positions of cash, cash equivalents and temporary investments, and the substantial cash flows generated by the Company, would enable the Company to respond adequately to any such requirements.

Changes and management explanation in principal risk exposures identified, as contingencies and events known by the administration that could affect future reports


iv. Explanation as to any change in the issuer's exposure to the principal risks identified thereby and in their management, and any contingency or event known to or anticipated by the issuer's management, which could affect any future report. Description of any circumstance or event, such as any change in the value of the underlying assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Issuer to assume new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the issuer's results or cash flows. Description and number of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.
Changes in the Company's exposure to the principal risks identified thereby and in their management, and contingencies or events known to or anticipated by the Company's management, which could affect any future report.
Since a significant portion of the Company's debt and costs are denominated in U.S. dollars, while its revenues are primarily denominated in Mexican pesos, depreciation in the value of the Mexican peso against the U.S. dollar and any future depreciation could have a negative effect on the Company's results due to exchange rate losses. However, the significant amount of U.S. dollars in the Company's treasury, and the hedging strategies adopted by the Company in recent years, have enabled it to avoid significant foreign exchange losses.
Circumstances or events, such as changes in the value of the underlying assets or reference variables, resulting in a financial derivative being used other than as originally intended, or substantially altering its structure, or resulting in the partial or total loss of the hedge, thereby forcing the Company to assume new obligations, commitments or changes in its cash flows in a manner that affects its liquidity (e.g., margin calls). Description of the impact of such financial derivative transactions on the Company's results or cash flows.
As of the date hereof, no circumstance or event of a financial derivative transaction, resulted in a partial or total loss of the relevant hedge requiring that the Company assume new obligations, commitments or variations in its cash flow such that its liquidity is affected.
Description and number of financial derivatives maturing during the quarter, any closed positions and, if applicable, number and amount of margin calls experienced during the quarter. Disclosure as to any default under the relevant contracts.

38 of 94

1.
During the relevant quarter, forwards through which the Company hedged against a possible Mexican Peso depreciation with a notional amount of U.S. $158,810,000.00 (One hundred fifty eight million eight hundred ten thousand U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN $424,340,158.55 (Four hundred twenty four million three hundred forty thousand one hundred fifty eight Mexican pesos 55/100) was incurred in the quarter.
2.
During the relevant quarter, forwards through which Televisión Internacional, S.A. de C.V. hedged against a possible Mexican Peso depreciation with a notional amount of U.S. $18,935,000.00 (Eighteen million nine hundred thirty five thousand U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN $44,670,230.00 (Forty four million six hundred seventy thousand two hundred thirty Mexican pesos 00/100) was incurred in the quarter.
3.
During the relevant quarter, forwards through which Empresas Cablevisión, S.A.B. de C.V. hedged against a possible Mexican Peso depreciation with a notional amount of U.S. $20,755,000.00 (Twenty million seven hundred fifty five thousand U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN $50,301,988.50 (Fifty million three hundred and one thousand nine hundred eighty eight Mexican pesos 50/100) was incurred in the quarter.
4.
During the relevant quarter, forwards through which Corporación Novavisión S. de R.L. de C.V. hedged against a possible Mexican Peso depreciation with a notional amount of U.S. $30,000,000.00 (Thirty million U.S. Dollars 00/100), expired. As a result of this hedge, a loss of MXN $87,596,250.00 (Eighty seven million five hundred ninety six thousand two hundred fifty Mexican pesos 00/100) was incurred in the quarter.

During the relevant quarter there were no defaults or margin calls under financial derivative transactions.
Quantitative information for disclosure

v. Quantitative Information. Attached hereto as 'Table 1' is a summary of the financial derivative instruments purchased by Grupo Televisa, S.A.B, Empresas Cablevisión S.A.B. de C.V., Televisión Internacional, S.A. de C.V., and Corporación Novavisión S. de R.L. de C.V. whose aggregate fair value represents or could represent one of the reference percentages set forth in Section III (v) of the Official Communication.
IV. SENSITIVITY ANALYSIS
Considering that the Company has entered into financial derivative transactions for hedging purposes, and given the low amount of the financial derivative instruments that proved ineffective as a hedge, the Company has determined that such transactions are not material and, accordingly, the sensitivity analysis referred to in Section IV of the Official Communication is not applicable.
In those cases where the derivative instruments of the Company are for hedging purposes, for a material amount and where the effectiveness measures were sufficient, the measures are justified when the standard deviation of the changes in cash flow as a result of changes in the variables of exchange rate and interest rates of the derivative instruments used jointly with the underlying position is lower than the standard deviation of the changes in cash flow of the underlying position valued in pesos and the effective measures are defined by the correlation coefficient between both positions for the effective measures to be sufficient.




39 of 94
TABLE 1
GRUPO TELEVISA, S.A.B.
Summary of Financial Derivative Instruments as of
March 31, 2021
(In thousands of Mexican pesos and/or U.S. dollars, as indicated)


Type of Derivative, Securities or Contract
Purpose (e.g., hedging, trading or other)
Notional Amount/Face Value
Value of the Underlying Asset / Reference Variable
Fair Value
Collateral/
Lines of Credit/
Securities Pledged
Current Quarter (5)
Previous Quarter (6)
Current Quarter Dr (Cr) (5)
Previous Quarter Dr (Cr)(6)
Maturing per Year
Interest Rate Swap (1)
Hedging
Ps.2,000,000
TIIE 28 days / 7.3275%
TIIE 28 days / 7.3275%
(76,084)
(109,146)
Monthly interest
2021-2022
Does not exist (7)
Interest Rate Swap (1)
Hedging
Ps.1,500,000
TIIE 28 days / 7.3500%
TIIE 28 days / 7.3500%
(59,554)
(86,171)
Monthly interest
2021-2022
Does not exist (7)
Interest Rate Swap (1)
Hedging
Ps.2,500,000
TIIE 28 days / 7.7485%
TIIE 28 days / 7.7485%
(128,596)
(180,941)
Monthly interest
2021-2023
Does not exist (7)
Interest Rate Swap (1)
Hedging
Ps.10,000,000
TIIE 28 days / 6.7620%
TIIE 28 days / 6.7620%
(373,381)
(762,827)
Monthly interest
2021-2024
Does not exist (7)
Interest Rate Swap (1)
Hedging
Ps.9,385,347
TIIE 28 days / 6.0246%
TIIE 28 days / 6.0246%
(135,920)
(204,250)
Monthly interest
2021-2022
Does not exist (7)
Forward (1)
Hedging
U.S.$198,813/ Ps.4,457,362
U.S.$198,813/ Ps.4,457,362
U.S.$285,813/ Ps.6,460,489
(311,185)
(636,032)
Semi-annual interest
2021-2022
Does not exist (7)
Forward (1)
Hedging
U.S.$44,687 / Ps.1,004,151
U.S.$44,687 / Ps.1,004,151
U.S.$44,687 / Ps.1,004,151
(65,134)
(78,731)
Semi-annual interest
2021-2021
Does not exist (7)
Forward (1)
Hedging
U.S.$228,088 / Ps.5,090,782
U.S.$228,088 / Ps.5,090,782
U.S.$284,898 / Ps.6,382,343
(327,534)
(547,943)
2021-2022
Does not exist (7)
Forward (1)
Hedging
U.S.$45,000 / Ps.1,020,547
U.S.$45,000 / Ps.1,020,547
U.S.$60,000 / Ps.1,373,434
(93,731)
(158,344)
2021
Does not exist (7)
Interest Rate Swap (2)
Hedging
Ps.113,700
TIIE 28 days / 5.585%
TIIE 28 days / 5.585%
(1,029)
(1,759)
Monthly Interest
2021-2022
Does not exist (7)
Interest Rate Swap (2)
Hedging
Ps.678,571
TIIE 28 days / 7.2663%
TIIE 28 days / 7.2663%
(16,516)
(23,784)
Monthly Interest
2021-2022
Does not exist (7)
Forward (2)
Hedging
U.S.$ 69,418 / Ps.1,555,326
U.S.$ 69,418 / Ps.1,555,326
U.S.$ 88,353 / Ps.1,984,144
(106,398)
(176,868)
2021-2022
Does not exist (7)
Forward (3)
Hedging
U.S.$ 76,034/ Ps.1,697,367
U.S.$ 76,034/ Ps.1,697,367
U.S.$ 96,789/ Ps.2,169,066
(110,141)
(190,726)
2021-2022
Does not exist (7)
Forward (4)
Hedging
U.S.$60,000 / Ps.1,359,570
U.S.$60,000 / Ps.1,359,570
U.S.$90,000 / Ps.2,057,198
(109,995)
(224,301)
2021-2022
Does not exist (7)
Forward (4)
Hedging
U.S.$45,000 / Ps.1,026,352
U.S.$45,000 / Ps.1,026,352
U.S.$45,000 / Ps.1,026,352
(80,901)
(94,400)
2021
Does not exist (7)
Total
(1,996,099)
(3,476,223)



(1)
Acquired by Grupo Televisa, S.A.B.
(2)
Acquired by Televisión Internacional, S.A. de C.V.
(3)
Acquired by Empresas Cablevisión, S.A.B. de C.V.
(4)
Acquired by Corporación Novavisión S. de R.L. de C.V.
(5)
The aggregate amount of the derivatives reflected in the consolidated statement of financial position of Grupo Televisa, S.A.B. as of March 31, 2021, is as follows:

Other financial liabilities
Ps.
(1,205,019)
Other non-current financial liabilities
(791,080)
Ps.
(1,996,099)

(6)
Information as of December 31, 2020.
(7)
Applies only to implicit financing in the ISDA ancillary agreements identified as 'Credit Support Annex'.



40 of 94

[800100] Notes - Subclassifications of assets, liabilities and equities


Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Subclassifications of assets, liabilities and equities
Cash and cash equivalents
Cash
Cash on hand
213,770,000
1,081,511,000
Balances with banks
1,854,691,000
4,013,099,000
Total cash
2,068,461,000
5,094,610,000
Cash equivalents
Short-term deposits, classified as cash equivalents
26,793,746,000
23,963,483,000
Short-term investments, classified as cash equivalents
0
0
Other banking arrangements, classified as cash equivalents
0
0
Total cash equivalents
26,793,746,000
23,963,483,000
Other cash and cash equivalents
0
0
Total cash and cash equivalents
28,862,207,000
29,058,093,000
Trade and other current receivables
Current trade receivables
21,888,870,000
12,343,797,000
Current receivables due from related parties
899,785,000
786,952,000
Current prepayments
Current advances to suppliers
0
0
Current prepaid expenses
3,965,680,000
3,175,011,000
Total current prepayments
3,965,680,000
3,175,011,000
Current receivables from taxes other than income tax
7,606,273,000
6,829,294,000
Current value added tax receivables
7,585,629,000
6,783,231,000
Current receivables from sale of properties
0
0
Current receivables from rental of properties
0
0
Other current receivables
2,572,318,000
2,177,887,000
Total trade and other current receivables
36,932,926,000
25,312,941,000
Classes of current inventories
Current raw materials and current production supplies
Current raw materials
0
0
Current production supplies
0
0
Total current raw materials and current production supplies
0
0
Current merchandise
0
0
Current work in progress
0
0
Current finished goods
0
0
Current spare parts
0
0
Property intended for sale in ordinary course of business
0
0
Other current inventories
2,259,563,000
1,641,300,000
Total current inventories
2,259,563,000
1,641,300,000
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Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
Non-current assets or disposal groups classified as held for sale
0
0
Non-current assets or disposal groups classified as held for distribution to owners
0
0
Total non-current assets or disposal groups classified as held for sale or as held for distribution to owners
0
0
Trade and other non-current receivables
Non-current trade receivables
0
0
Non-current receivables due from related parties
0
0
Non-current prepayments
0
0
Non-current lease prepayments
0
0
Non-current receivables from taxes other than income tax
0
0
Non-current value added tax receivables
0
0
Non-current receivables from sale of properties
0
0
Non-current receivables from rental of properties
0
0
Revenue for billing
0
0
Other non-current receivables
0
0
Total trade and other non-current receivables
0
0
Investments in subsidiaries, joint ventures and associates
Investments in subsidiaries
0
0
Investments in joint ventures
727,496,000
719,195,000
Investments in associates
22,728,264,000
22,094,336,000
Total investments in subsidiaries, joint ventures and associates
23,455,760,000
22,813,531,000
Property, plant and equipment
Land and buildings
Land
6,016,715,000
4,886,600,000
Buildings
3,782,548,000
4,692,553,000
Total land and buildings
9,799,263,000
9,579,153,000
Machinery
55,697,796,000
56,068,343,000
Vehicles
Ships
0
0
Aircraft
514,229,000
515,630,000
Motor vehicles
560,860,000
575,336,000
Total vehicles
1,075,089,000
1,090,966,000
Fixtures and fittings
522,719,000
545,329,000
Office equipment
2,032,564,000
2,092,070,000
Tangible exploration and evaluation assets
0
0
Mining assets
0
0
Oil and gas assets
0
0
Construction in progress
14,206,917,000
12,873,670,000
Construction prepayments
0
0
Other property, plant and equipment
766,298,000
1,032,096,000
Total property, plant and equipment
84,100,646,000
83,281,627,000
Investment property
Investment property completed
0
0
Investment property under construction or development
0
0
Investment property prepayments
0
0
Total investment property
0
0
Intangible assets and goodwill
Intangible assets other than goodwill
Brand names
272,992,000
291,024,000
Intangible exploration and evaluation assets
0
0
Mastheads and publishing titles
0
0
Computer software
4,762,128,000
4,692,574,000
Licences and franchises
0
0

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Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Copyrights, patents and other industrial property rights, service and operating rights
0
0
Recipes, formulae, models, designs and prototypes
0
0
Intangible assets under development
0
0
Other intangible assets
23,527,447,000
23,626,994,000
Total intangible assets other than goodwill
28,562,567,000
28,610,592,000
Goodwill
14,113,626,000
14,113,626,000
Total intangible assets and goodwill
42,676,193,000
42,724,218,000
Trade and other current payables
Current trade payables
26,806,198,000
21,943,227,000
Current payables to related parties
97,909,000
83,007,000
Accruals and deferred income classified as current
Deferred income classified as current
17,604,098,000
5,935,858,000
Rent deferred income classified as current
0
0
Accruals classified as current
3,961,525,000
3,421,245,000
Short-term employee benefits accruals
1,374,355,000
1,262,627,000
Total accruals and deferred income classified as current
21,565,623,000
9,357,103,000
Current payables on social security and taxes other than income tax
3,882,738,000
3,955,859,000
Current value added tax payables
3,159,746,000
2,984,239,000
Current retention payables
936,501,000
507,477,000
Other current payables
0
0
Total trade and other current payables
53,288,969,000
35,846,673,000
Other current financial liabilities
Bank loans current
616,991,000
616,991,000
Stock market loans current
0
0
Other current liabilities at cost
0
0
Other current liabilities at no cost
1,205,019,000
2,016,952,000
Other current financial liabilities
1,906,444,000
1,934,656,000
Total Other current financial liabilities
3,728,454,000
4,568,599,000
Trade and other non-current payables
Non-current trade payables
2,593,764,000
2,588,580,000
Non-current payables to related parties
0
0
Accruals and deferred income classified as non-current
Deferred income classified as non-current
0
0
Rent deferred income classified as non-current
0
0
Accruals classified as non-current
0
0
Total accruals and deferred income classified as non-current
0
0
Non-current payables on social security and taxes other than income tax
0
0
Non-current value added tax payables
0
0
Non-current retention payables
0
0
Other non-current payables
0
0
Total trade and other non-current payables
2,593,764,000
2,588,580,000
Other non-current financial liabilities
Bank loans non-current
18,843,226,000
18,896,766,000
Stock market loans non-current
105,374,999,000
103,039,214,000
Other non-current liabilities at cost
0
0
Other non-current liabilities at no cost
791,080,000
1,459,271,000
Other non-current financial liabilities
0
0
Total Other non-current financial liabilities
125,009,305,000
123,395,251,000
Other provisions
Other non-current provisions
977,292,000
965,128,000
Other current provisions
47,009,000
2,992,000
Total other provisions
1,024,301,000
968,120,000

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Concept
Close Current Quarter
2021-03-31
Close Previous Exercise
2020-12-31
Other reserves
Revaluation surplus
0
0
Reserve of exchange differences on translation
2,059,417,000
1,804,327,000
Reserve of cash flow hedges
(744,731,000)
(1,340,854,000)
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments
0
0
Reserve of change in value of time value of options
0
0
Reserve of change in value of forward elements of forward contracts
0
0
Reserve of change in value of foreign currency basis spreads
0
0
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income
(14,935,031,000)
(14,940,039,000)
Reserve of gains and losses on remeasuring available-for-sale financial assets
0
0
Reserve of share-based payments
0
0
Reserve of remeasurements of defined benefit plans
(943,834,000)
(943,834,000)
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale
0
0
Reserve of gains and losses from investments in equity instruments
0
0
Reserve of change in fair value of financial liability attributable to change in credit risk of liability
0
0
Reserve for catastrophe
0
0
Reserve for equalisation
0
0
Reserve of discretionary participation features
0
0
Reserve of equity component of convertible instruments
0
0
Capital redemption reserve
0
0
Merger reserve
0
0
Statutory reserve
0
0
Other comprehensive income
(136,502,000)
(136,448,000)
Total other reserves
(14,700,681,000)
(15,556,848,000)
Net assets (liabilities)
Assets
288,987,154,000
271,246,332,000
Liabilities
200,289,097,000
183,307,299,000
Net assets (liabilities)
88,698,057,000
87,939,033,000
Net current assets (liabilities)
Current assets
82,146,874,000
69,061,075,000
Current liabilities
59,877,685,000
43,709,666,000
Net current assets (liabilities)
22,269,189,000
25,351,409,000


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[800200] Notes - Analysis of income and expense


Concept
Accumulated Current Year
2021-01-01 - 2021-03-31
Accumulated Previous Year
2020-01-01 - 2020-03-31
Analysis of income and expense
Revenue
Revenue from rendering of services
17,324,237,000
16,889,069,000
Revenue from sale of goods
197,441,000
218,011,000
Interest income
0
0
Royalty income
2,436,347,000
2,498,066,000
Dividend income
0
0
Rental income
3,870,923,000
3,623,642,000
Revenue from construction contracts
0
0
Other revenue
0
0
Total revenue
23,828,948,000
23,228,788,000
Finance income
Interest income
121,319,000
223,850,000
Net gain on foreign exchange
0
0
Gains on change in fair value of derivatives
0
2,198,144,000
Gain on change in fair value of financial instruments
0
0
Other finance income
0
0
Total finance income
121,319,000
2,421,994,000
Finance costs
Interest expense
2,302,422,000
2,528,229,000
Net loss on foreign exchange
1,723,378,000
8,601,364,000
Losses on change in fair value of derivatives
117,072,000
0
Loss on change in fair value of financial instruments
0
0
Other finance cost
0
0
Total finance costs
4,142,872,000
11,129,593,000
Tax income (expense)
Current tax
2,337,068,000
2,186,874,000
Deferred tax
(2,440,608,000)
(3,912,718,000)
Total tax income (expense)
(103,540,000)
(1,725,844,000)




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[800500] Notes - List of notes



Disclosure of notes and other explanatory information

Ver Notas 1 y 2 sobre la información a revelar sobre la información financiera intermedia


Disclosure of general information about financial statements

Corporate Information
Grupo Televisa, S.A.B. (the 'Company') is a limited liability public stock corporation ('Sociedad Anónima Bursátil' or 'S.A.B.'), incorporated under the laws of Mexico. Pursuant to the terms of the Company's bylaws ('Estatutos Sociales'), its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of 'Certificados de Participación Ordinarios' or 'CPOs' on the Mexican Stock Exchange ('Bolsa Mexicana de Valores') under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares or GDSs, on the New York Stock Exchange, or NYSE, under the ticker symbol TV. The Company's principal executive offices are located at Avenida Vasco de Quiroga 2000, Colonia Santa Fe, 01210 Ciudad de México, México.

Basis of Preparation and Accounting Policies
The interim condensed consolidated financial statements of the Group, as of March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020, are unaudited, and have been prepared in accordance with the guidelines provided by the International Accounting Standard 34, Interim Financial Reporting. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included herein.

The interim unaudited condensed consolidated financial statements should be read in conjunction with the Group's audited consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019, which have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board, and include, among other disclosures, the Group's most significant accounting policies, which were applied on a consistent basis as of March 31, 2021. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2021 did not have a significant impact in these interim un audited condensed consolidated financial statements.

Disclosure of significant accounting policies
Accounting Policies

The principal accounting policies followed by the Group and used in the preparation of its annual consolidated financial statements as of December 31, 2020, and where applicable, of its interim condensed consolidated financial statements, are summarized below. These accounting policies should be read in conjunction with the audited consolidated financial statements of the Group for the years ended December 31, 2020 and 2019, once they have been submitted to the Mexican Banking and Securities Commission ('Comisión Nacional Bancaria y de Valores' and the U.S. Securities and Exchange Commission, respectively.

(a)
Basis of Presentation

The consolidated financial statements of the Group as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018, are presented in accordance with International Financial Reporting Standards ('IFRS Standards'), as issued by the International Accounting Standards Board ('IASB'). IFRS Standards comprise: (i) IFRS Standards; (ii) International Accounting Standards ('IAS Standards'); (iii) IFRS Interpretations Committee ('IFRIC') Interpretations; and (iv) Standing Interpretations Committee ('SIC') Interpretations.
The consolidated financial statements have been prepared on a historical cost basis, except for the measurement at fair value of derivative financial instruments, financial assets, investments in equity financial instruments, plan assets of post-employment benefits and share-based payments, as described in the notes to the financial statements below.
46 of 94

The preparation of consolidated financial statements in conformity with IFRS Standards, requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where estimates and assumptions are significant to the Group's financial statements are disclosed in Note 5 to these consolidated financial statements.
These consolidated financial statements were authorized for issuance on March 31, 2021 by the Group's Corporate Vice President of Finance.

(b)
Consolidation

The financial statements of the Group are prepared on a consolidated basis and include the assets, liabilities and results of operations of all companies in which the Company has a controlling interest (subsidiaries). All intercompany balances and transactions have been eliminated from the consolidated financial statements.
Subsidiaries
Subsidiaries are all entities over which the Company has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether or not the Company controls another entity. The subsidiaries are consolidated from the date on which control is obtained by the Company and cease to consolidate from the date on which said control is lost.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis at the non-controlling interest's proportionate share of the recognized amounts of acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in income or loss.

Changes in Ownership Interests in Subsidiaries without Change of Control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the interest acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity.
Loss of Control of a Subsidiary
When the Company ceases to have control of a subsidiary, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognized in income or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts previously recognized in other comprehensive income are reclassified to income or loss except for certain equity financial instruments designated irrevocably with changes in other comprehensive income or loss.
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At December 31, 2020 and 2019, the main direct and indirect subsidiaries of the Company were as follows:
Subsidiaries
Company's
Ownership
Interest (1)
Business
Segment (2)
Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, 'Empresas Cablevisión') (3)
51.2
%
Cable
Subsidiaries engaged in the Cablemás business (collectively, 'Cablemás') (4)
100
%
Cable
Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, 'TVI') (5)
100
%
Cable
Cablestar, S.A. de C.V. and subsidiaries (collectively, 'Bestel') (6)
66.2
%
Cable
Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, 'Cablecom') (7)
100
%
Cable
Subsidiaries engaged in the Telecable business (collectively, 'Telecable') (8)
100
%
Cable
FTTH de México, S.A. de C.V. (9)
100
%
Cable
Corporativo Vasco de Quiroga, S.A. de C.V. ('CVQ') and subsidiaries (10)
100
%
Cable and Sky
Innova, S. de R.L. de C.V. ('Innova') and subsidiaries (collectively, 'Sky') (11)
58.7
%
Sky
Grupo Telesistema, S.A. de C.V. ('Grupo Telesistema') and subsidiaries
100
%
Content and Other Businesses
Televisa, S.A. de C.V. ('Televisa') (12)
100
%
Content
Televisión Independiente de México, S.A. de C.V. ('TIM') (12)
100
%
Content
G.Televisa-D, S.A. de C.V. (12)
100
%
Content
Multimedia Telecom, S.A. de C.V. ('Multimedia Telecom') and subsidiary (13)
100
%
Content
Ulvik, S.A. de C.V. (14)
100
%
Content and Other Businesses
Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries
100
%
Other Businesses
Editorial Televisa, S.A. de C.V. and subsidiaries
100
%
Other Businesses
Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries
100
%
Other Businesses
Villacezán, S.A. de C.V. ('Villacezán') and subsidiaries (15)
100
%
Other Businesses
Sistema Radiópolis, S.A. de C.V. ('Radiópolis') and subsidiaries (16)
-
Disposed operations
(1)
Percentage of equity interest directly or indirectly held by the Company.
(2)
See Note 26 for a description of each of the Group's business segments.
(3)
Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ.
(4)
Some Cablemás subsidiaries are directly owned by CVQ and some other Cablemás subsidiaries are indirectly owned by CVQ.
(5)
Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ.
(6)
Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V.
(7)
Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ.
(8)
The Telecable subsidiaries are directly owned by CVQ.
(9)
FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ.
(10)
CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom, Telecable and Innova.
(11)
Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. ('Sky DTH'), and a direct majority-owned subsidiary of Innova Holdings, S. de R.L. de C.V. ('Innova Holdings'). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova's equity and designates a majority of the members of Innova's Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in the Group and Sky. These veto rights are protective in nature and do not affect decisions about relevant business activities of Innova.
(12)
Televisa, TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema.
(13)
Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. ('Tieren'), are indirect wholly-owned subsidiaries of Grupo Telesistema, through which the Company owns shares of the capital stock of UHI and maintained through December 29, 2020, an investment in warrants that were exercised for shares of common stock of UHI on that date. As of December 31, 2020 and 2019, Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group's aggregate investment in shares of common stock and/or share warrants issued by UHI (see Notes 9, 10 and 20).
(14)
Direct subsidiary through which we conduct certain operations of our Content segment and certain operations of our Other Businesses segments.
(15)
Villacezán is an indirect subsidiary of Grupo Telesistema.


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(16)
In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a direct subsidiary of the Company through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of Radiópolis. The Radio business was part the of the Group's Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its operating results, were classified as held for sale in the Group's consolidated financial statements through June 30, 2020 (see Notes 3 and 26).
The Group's Cable, Sky and Content segments, require governmental concessions and special authorizations for the provision of broadcasting and telecommunications services in Mexico. Such concessions are granted by the Mexican Institute of Telecommunications ('Instituto Federal de Telecomunicaciones' or 'IFT') for a fixed term, subject to renewal in accordance with the Mexican Telecommunications and Broadcasting Law ('Ley Federal de Telecomunicaciones y Radiodifusión' or 'LFTR').
Renewal of concessions for the Content segment (Broadcasting) require, among others: (i) to request such renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder's obligations under the LFTR, other applicable regulations, and the concession title; (iii) a declaration by IFT that there is no public interest in recovering the spectrum granted under the related concession; and (iv) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT, including the payment of a related fee. IFT shall resolve within the year following the presentation of the request, if there is public interest in recovering the spectrum granted under the related concession, in which case it will notify its determination and proceed with the termination of the concession at the end of its fixed term. If IFT determines that there is no public interest in recovering the spectrum, it will grant the requested extension within 180 business days, provided that the concessionaire accepts, in advance, the new conditions set by IFT, which will include the payment of the fee referred to above. Such fee will be determined by IFT for the relevant concessions, considering the following elements: (i) the frequency band; (ii) the amount of spectrum; (iii) coverage of the frequency band; (iv) domestic and international benchmark regarding the market value of frequency bands; and (v) upon request of IFT, an opinion issued by the Ministry of Finance and Public Credit of IFT´s proposal for calculation of the fee.
Renewal of concessions for the Sky and Cable segments require, among others: (i) to request its renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder's obligations under the LFTR, other applicable regulations, and the concession title; and (iii) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT. IFT shall resolve any request for renewal of the telecommunications concessions within 180 business days of its request. Failure to respond within such period of time shall be interpreted as if the request for renewal has been granted.
The regulations of the broadcasting and the telecommunications concessions (including satellite pay TV) establish that at the end of the concession, the frequency bands or spectrum attached to the services provided in the concessions shall return to the Mexican government. In addition, at the end of the concession, the Mexican government will have the preferential right to acquire infrastructure, equipment and other goods directly used in the provision of the concession. If the Mexican government were to exercise its right to acquire infrastructure, equipment and other goods, it would be required to pay a price that is equivalent to a formula that is similar to fair value. To the knowledge of the Company's management, no spectrum granted for broadcasting services in Mexico has been recovered by the Mexican government in at least the past three decades for public interest reasons. However, the Company's management is unable to predict the outcome of any action by IFT in this regard. In addition, these assets, by themselves, would not be enough to immediately begin broadcasting or offering satellite pay TV services or telecommunications services, as no content producing assets or other equipment necessary to operate the business would be included.
Also, the Group's Gaming business, which is reported in the Other Businesses segment, requires a permit granted by the Mexican Federal Government for a fixed term, subject to renewal in accordance with Mexican law. Additionally, the Group's Sky businesses in Central America and the Dominican Republic require concessions or permits granted by local regulatory authorities for a fixed term, subject to renewal in accordance with local laws.
The accounting guidelines provided by IFRIC 12 Service Concession Arrangements, are not applicable to the Group due primarily to the following factors: (i) the Mexican government does not substantially control the Group's infrastructure, what services are provided with the infrastructure and the price at which such services are offered; (ii) the Group's broadcasting service does not constitute a public service as per the definition in IFRIC 12; and (iii) the Group is unable to divide its infrastructure among the public (telephony and possibly Internet services) and non-public (pay TV) service components.
At December 31, 2020, the expiration dates of the Group's concessions and permits were as follows:
Segments
Expiration Dates
Cable
Various from 2022 to 2048
Sky
Various from 2021 to 2030
Content (broadcasting concessions) (1)
In 2021 and the relevant renewals start in 2022 ending in 2042
Other Businesses:
Gaming
In 2030
(1)
In November 2018, the IFT approved the renewal of the Group's broadcasting concessions for all of its television stations in Mexico, for a term of 20 years after the existing expiration date in 2021. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized this payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13).


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The concessions or permits held by the Group are not subject to any significant pricing regulations in the ordinary course of business.

(c)
Investments in Associates and Joint Ventures

Associates are those entities over which the Group has significant influence but not control or joint control, generally those entities with a shareholding of between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. Joint ventures are those joint arrangements where the Group exercises joint control with other stockholder or more stockholders without exercising control individually, and have rights to the net assets of the joint arrangements. Investments in associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor's share of the net assets of the investee after the date of acquisition.
The Group's investments in associates include an equity interest in UHI represented by approximately 35.9% and 10% of the outstanding total shares of UHI as of December 31, 2020 and 2019, respectively (see Notes 9 and 10).
If the Group's share of losses of an associate or a joint venture equals or exceeds its interest in the investee, the Group discontinues recognizing its share of further losses. The interest in an associate or a joint venture is the carrying amount of the investment in the investee under the equity method together with any other long-term investment that, in substance, form part of the Group's net investment in the investee. After the Group's interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

(d)
Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Group's Co-Chief Executive Officers ('chief operating decision makers') who are responsible for allocating resources and assessing performance for each of the Group's operating segments.

(e)
Foreign Currency Translation
Functional and Presentation Currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('functional currency'). The presentation and reporting currency of the Group's consolidated financial statements is the Mexican peso, which is used for compliance with its legal and tax obligations.
Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or measurement where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income as part of finance income or expense, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as investments in financial instruments are analyzed between exchange differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in income or loss, and other changes in carrying amount are recognized in other comprehensive income or loss.
Translation of Foreign Operations
The financial statements of the Group's foreign entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) assets and liabilities are translated at the closing rate at the date of the statement of financial position; (b) income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); (c) stockholders' equity accounts are translated at the prevailing exchange rate at the time capital contributions were made and earnings were generated and (d) all resulting translation differences are recognized in other comprehensive income or loss.
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Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Translation differences arising are recognized in other comprehensive income or loss.
Assets and liabilities in foreign currencies of non-Mexican subsidiaries that use the Mexican Peso as a functional currency are initially converted to Mexican Pesos by utilizing the exchange rate of the statement of financial position date for monetary assets and liabilities, and historical exchange rates for non-monetary items, with the related adjustment included in the consolidated statement of income as finance income or expense.
A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item 'Long-term debt, net of current portion' of the consolidated statement of financial position) has been designated as a hedge of a net investment in a foreign operation in connection with the Group's investment in shares of common stock of UHI (hedged item), which amounted to U.S.$1,074.0 million (Ps.21,424,180) and U.S.$433.7 million (Ps.8,189,662) as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss as a cumulative result from foreign currency translation (see Note 10).

A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item 'Long-term debt, net of current portion' of the consolidated statement of financial position) was designated as a fair value hedge of foreign exchange exposure related to its investment in warrants that were exercisable for common stock of UHI (hedged item) through December 29, 2020, the date on which the Group exercised all of these warrants for common stock of UHI, which amounted to Ps.17,387,699 million (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 million (U.S.$1,788.6 million) as of December 31, 2019. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt was credited or charged directly to other comprehensive income or loss through December 29, 2020, along with the recognition in the same line item of any foreign currency gain or loss of this investment in warrants designated as a hedged item through that date (see Notes 9, 14 and 18).
A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item 'Long-term debt, net of current portion' of the consolidated statement of financial position) has been designated as a fair value hedge of foreign exchange exposure related to its investment in Open-Ended Fund (hedged item), which amounted to Ps.1,135,803 (U.S.$56.9 million) and Ps.4,688,202 (U.S.$248.3 million), as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss, along with the recognition in the same line item of any foreign currency gain or loss of this investment in Open-Ended Fund designated as a hedged item (see Notes 9, 14 and 18).
Beginning on January 1, 2018, the Group adopted the hedge accounting requirements of IFRS 9 Financial Instruments ('IFRS 9') for all of its hedging relationships. This IFRS Standard became effective on that date.
(f)
Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three months or less at the date of acquisition. Cash is stated at nominal value and cash equivalents are measured at fair value, and the changes in the fair value are recognized in the statement of income.

As of December 31, 2020 and 2019, cash equivalents primarily consisted of fixed short-term deposits and corporate fixed income securities denominated in U.S. dollars and Mexican pesos, with an average yield of approximately 0.38% for U.S. dollar deposits and 5.40% for Mexican peso deposits in 2020, and approximately 2.20% for U.S. dollar deposits and 8.09% for Mexican peso deposits in 2019.

(g)
Transmission Rights and Programming

Programming is comprised of programs, literary works, production talent advances and films.
Transmission rights and literary works are valued at the lesser of acquisition cost and net realizable value. Programs and films are valued at the lesser of production cost, which consists of direct production costs and production overhead, and net realizable value. Payments for production talent advances are initially capitalized and subsequently included as direct or indirect costs of program production. Transmission rights are recognized from the point of which the legally enforceable license period begins. Until the license term commences and the programming rights are available, payments made are recognized as prepayments.
The Group's policy is to capitalize the production costs of programs which benefit more than one annual period and amortize them over the expected period of future program revenues based on the Company's historical revenue patterns and usage for similar productions.


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Transmission rights, programs, literary works, production talent advances and films are recorded at acquisition or production cost. Cost of sales is calculated and recorded for the month in which such transmission rights, programs, literary works, production talent advances and films are matched with related revenues.
Transmission rights are recognized in income over the lives of the contracts. Transmission rights in perpetuity are amortized on a straight-line basis over the period of the expected benefit as determined by past experience, but not exceeding 25 years.

(h)
Inventories

Inventories of paper, magazines, materials and supplies for maintenance of technical equipment are recorded at the lower of cost or its net realization value. The net realization value is the estimated selling price in the normal course of business, less estimated costs to conduct the sale. Cost is determined using the average cost method.
(i)
Financial Assets

Beginning on January 1, 2018, the Group classifies its financial assets in accordance with IFRS 9 which became effective on that date. Under the guidelines of IFRS 9, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or loss ('FVOCIL'), or fair value through income or loss ('FVIL'), based on the Company's business model for managing the financial assets and the contractual cash flows characteristics of the financial asset.

Financial Assets Measured at Amortized Cost
Financial assets are measured at amortized cost when the objective of holding such financial assets is to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are only payments of principal and interest on the principal amount outstanding. These financial assets are initially recognized at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest rate method, with changes in carrying value recognized in the consolidated statement of income in the line which most appropriately reflects the nature of the item or transaction. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period that are included in non-current assets. The Group's financial assets measured at amortized costs are primarily presented as 'trade notes and accounts receivable', 'other accounts and notes receivable', and 'due from related parties' in the consolidated statement of financial position (see Note 7).
Financial Assets Measured at FVOCIL
Financial assets are measured at FVOCIL when the objective of holding such financial assets is both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Group's investments in certain equity instruments have been designated to be measured at FVOCIL, as permitted by IFRS 9 (see Note 28). In connection with this designation, any amounts presented in consolidated other comprehensive income are not subsequently transferred to consolidated income. Dividends from these equity instruments are recognized in consolidated income when the right to receive payment of the dividend is established, and such dividend is probable to be paid to the Group.
Financial Assets at FVIL
Financial assets at FVIL are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current.
Impairment of Financial Assets
From January 1, 2018, the Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at fair value through other comprehensive income or loss. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables (see Note 7).
Offsetting of Financial Instruments
Financial assets are offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Group: (i) currently has a legally enforceable right to set off the recognized amounts; and (ii) intends either to settle on a net basis, or to realize the assets and settle the liability simultaneously.


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(j)
Property, Plant and Equipment

Property, plant and equipment are recorded at acquisition cost.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to income or loss during the financial period in which they are incurred.

Land is not depreciated. Depreciation of property, plant and equipment is based upon the carrying value of the assets in use and is computed using the straight-line method over the estimated useful lives of the asset, as follows:

Estimated
Useful Lives
Buildings
20-65 years
Building improvements
5-20 years
Technical equipment
3-30 years
Satellite transponders
15 years
Furniture and fixtures
3-10 years
Transportation equipment
4-8 years
Computer equipment
3-6 years
Leasehold improvements
5-30 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income or expense in the consolidated statement of income.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.
(k)
Right-of-use Assets
Right-of-use assets are measured at cost comprising the following: the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs and restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight - line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life.
Payments associated with short-term leases of equipment and vehicles and mostly leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

(l)
Intangible Assets and Goodwill
Intangible assets and goodwill are recognized at acquisition cost. Intangible assets and goodwill acquired through business combinations are recorded at fair value at the date of acquisition. Intangible assets with indefinite useful lives, which include, trademarks, concessions, and goodwill, are not amortized, and subsequently recognized at cost less accumulated impairment losses. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives, as follows:


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Estimated
Useful Lives
Trademarks with finite useful lives
4 years
Licenses
3-10 years
Subscriber lists
4-5 years
Payments for renewal of concessions
20 years
Other intangible assets
3-20 years

Trademarks
The Group determines its acquired trademarks to have an indefinite life when they are expected to generate net cash inflows for the Group indefinitely. Additionally, the Group considers that there are no legal, regulatory or contractual provisions that limit the useful lives of trademarks. The Group has not capitalized any amounts associated with internally developed trademarks.
Concessions
The Group defined concessions to have an indefinite life due to the fact that the Group has a history of renewing its concessions upon expiration, has maintained the concessions granted by the Mexican government, and has no foreseeable limit to the period over which the assets are expected to generate net cash inflows. In addition, the Group is committed to continue to invest for the long term to extend the period over which the broadcasting and telecommunications concessions are expected to continue to provide economic benefits.
Any fees paid by the Group to regulatory authorities for concessions renewed are determined to have finite useful lives and are amortized on a straight-live basis over the fixed term of the related concession.

Goodwill
Goodwill arises on the acquisition of a business and represents the excess of the consideration transferred over the Group's interest in net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash generating units ('CGUs'), or groups of CGUs, that are expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher between the value in use and the fair value less costs to sell. Any impairment of goodwill is recognized as an expense in the consolidated statement of income and is not subject to be reversed in subsequent periods.
(m)
Impairment of Long-lived Assets

The Group reviews for impairment the carrying amounts of its long-lived assets, tangible and intangible, including goodwill (see Note 13), at least once a year, or whenever events or changes in business circumstances indicate that these carrying amounts may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. To determine whether an impairment exists, the carrying value of the reporting unit is compared with its recoverable amount. Fair value estimates are based on quoted market values in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including discounted value of estimated future cash flows, market multiples or third-party appraisal valuations. Any impairment of long-lived assets other than goodwill may be subsequently reversed under certain circumstances.
(n)
Trade Accounts Payable and Accrued Expenses
Trade accounts payable and accrued expenses are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade accounts payable and accrued expenses are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade accounts payable and accrued expenses are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
Trade accounts payable and accrued expenses are presented as a single item of consolidated current liabilities in the consolidated statements of financial position as of December 31, 2020 and 2019.

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(o)
Debt

Debt is recognized initially at fair value, net of transaction costs incurred. Debt is subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of income over the period on which the debt is outstanding using the effective interest method.
Fees paid on the establishment of debt facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.
Current portion of long-term debt and interest payable are presented as a separate line item in the consolidated statements of financial position as of December 31, 2020 and 2019.
Debt early redemption costs are recognized as finance expense in the consolidated statement of income.

(p)
Customer Deposits and Advances
Customer deposits and advance agreements for advertising services provide that customers receive prices that are fixed for the contract period for advertising time in the Group's platforms based on rates established by the Group. Such rates vary depending on when the advertisement is made, including the season, hour, day and type of programming.
The Group recognizes customer deposits and advance agreements for advertising services in the consolidated statement of financial position when these agreements are executed either with a consideration in cash paid by customers or with short-term non-interest bearing notes received from customers in connection with annual ('upfront basis') and from time to time ('scatter basis') prepayments (see Note 7). In connection with the initial adoption of IFRS 15 Revenues from Contracts with Customers ('IFRS 15') in the first quarter of 2018 (see Note 2 (s)), customer deposits and advances agreements are presented by the Group as a contract liability in the consolidated statement of financial position when a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional, before the Group transfers services to the customer. Under the guidelines of this standard, a contract liability is a Group's obligation to transfer services or goods to a customer for which the Group has received consideration, or an amount of consideration is due, from the customer. In addition, the Group recognizes contract asset upon the approval of non-cancellable contracts that generate an unconditional right to receive cash consideration prior to services being rendered. The Company's management has consistently recognized that an amount of consideration is due, for legal, finance and accounting purposes, when a short-term non-interest bearing note is received from a customer in connection with a deposit or advance agreement entered into with the customer for advertising services to be rendered by the Group in the short term.
(q)
Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized as interest expense.
(r)
Equity
The capital stock and other equity accounts include the effect of restatement through December 31, 1997, determined by applying the change in the Mexican National Consumer Price Index between the dates capital was contributed or net results were generated and December 31, 1997, the date through which the Mexican economy was considered hyperinflationary under the guidelines of IFRS Standards. The restatement represented the amount required to maintain the contributions and accumulated results in Mexican Pesos in purchasing power as of December 31, 1997.

Where any company in the Group purchases shares of the Company's capital stock (shares repurchased), the consideration paid, including any directly attributable incremental costs is deducted from equity attributable to stockholders of the Company until the shares are cancelled, reissued, or sold. Where such shares repurchased are subsequently reissued or sold, any consideration received, net of any directly attributable incremental transaction costs, is included in equity attributable to stockholders of the Company.
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(s)
Revenue Recognition
In connection with the initial adoption of IFRS 15, in the first quarter of 2018, the Company's management: (i) reviewed significant revenue streams and identified certain effects on revenue recognition in the Group's Cable and Sky segments, as discussed below; (ii) used the retrospective cumulative effect, which consists in recognizing any cumulative adjustment resulting from the new standard at the date of initial adoption in consolidated equity; and (iii) did not restate the comparative information for prior years, which was reported under the revenue recognition IFRS Standard in effect in those periods (see Note 28).
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided. The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Group's activities, as described below. The Group bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
The Group derives the majority of its revenues from media and entertainment-related business activities both in Mexico and internationally. Revenues are recognized when the service is provided and collection is probable. A summary of revenue recognition policies by significant activity is as follows:

Cable television, internet and telephone subscription, and pay-per-view and installation fees are recognized in the period in which the services are rendered. Beginning on January 1, 2018, in accordance with IFRS 15, incremental costs for obtaining contracts with customers, primarily commissions, are recognized as assets in the Group's consolidated statement of financial position and amortized in the expected life of contracts with customers.

Revenues from other telecommunications and data services are recognized in the period in which these services are provided. Other telecommunications services include long distance and local telephony, as well as leasing and maintenance of telecommunications facilities.

Sky program service revenues, including advances from customers for future direct-to-home ('DTH') program services, are recognized at the time the service is provided. Beginning on January 1, 2018, in accordance with IFRS 15, certain incremental costs for obtaining contracts with customers, primarily commissions, are recognized as assets in the Group's consolidated statement of financial position and amortized in the expected life of contracts with customers.

Advertising revenues, including deposits and advances from customers for future advertising, are recognized at the time the advertising services are rendered.

Revenues from program services for network subscription and licensed and syndicated television programs are recognized when the programs are sold and become available for broadcast.

Revenues from magazine subscriptions are initially deferred and recognized proportionately as products are delivered to subscribers. Revenues from the sales of magazines are recognized on the date of circulation of delivered merchandise, net of a provision for estimated returns.

Revenues from publishing distribution are recognized upon distribution of the products.

Revenues from attendance to soccer games, including revenues from advance ticket sales for soccer games and other promotional events, are recognized on the date of the relevant event.

Motion picture production and distribution revenues are recognized as the films are exhibited.

Gaming revenues consist of the net win from gaming activities, which is the difference between amounts wagered and amounts paid to winning patrons and are recognized at the time of such net win.

In respect to sales of multiple products or services, the Group evaluates whether it has fair value evidence for each deliverable in the transaction. For example, the Group sells cable television, internet and telephone subscription to subscribers in a bundled package at a rate lower than if the subscriber purchases each product on an individual basis. Subscription revenues received from such subscribers are allocated to each product in a pro-rata manner based on the fair value of each of the respective services.
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(t)
Interest Income

Interest income is recognized using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is recognized using the original effective interest rate.

(u)
Employee Benefits
Pension and Seniority Premium Obligations
Plans exist for pensions and seniority premiums (post-employment benefits), for most of the Group's employees funded through irrevocable trusts. Increases or decreases in the consolidated liability or asset for post-employment benefits are based upon actuarial calculations. Contributions to the trusts are determined in accordance with actuarial estimates of funding requirements. Payments of post-employment benefits are made by the trust administrators. The defined benefit obligation is calculated annually using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.
Remeasurement of post-employment benefit obligations related to experience adjustments and changes in actuarial assumptions of post- employment benefits are recognized in the period in which they are incurred as part of other comprehensive income or loss in consolidated equity.
Profit Sharing
The employees' profit sharing required to be paid under certain circumstances in Mexico, is recognized as a direct benefit to employees in the consolidated statements of income in the period in which it is incurred.
Termination Benefits
Termination benefits, which mainly represent severance payments by law, are recorded in the consolidated statement of income. The Group recognizes termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that involves the payment of termination benefits.
(v)
Income Taxes
The income tax expense for the period comprises current and deferred income tax. Income tax is recognized in the consolidated statement of income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the income tax is recognized in other comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial position date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction (other than in a business combination) that at the time of the transaction affects neither accounting nor taxable income or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is recovered or the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences and tax loss carryforwards can be utilized. For this purpose, the Group takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, projected taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, and future reversals of existing temporary differences.
Deferred income tax liabilities are provided on taxable temporary differences associated with investments in subsidiaries, joint ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are provided on deductible temporary differences associated with investments in subsidiaries, joint ventures and associates, to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefit of the temporary difference and it is expected to reverse in the foreseeable future.
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Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
(w)
Derivative Financial Instruments
The Group recognizes derivative financial instruments as either assets or liabilities in the consolidated statements of financial position and measures such instruments at fair value. The accounting for changes in the fair value of a derivative financial instrument depends on the intended use of the derivative financial instrument and the resulting designation. For a derivative financial instrument designated as a cash flow hedge, the effective portion of such derivative's gain or loss is initially reported as a component of other comprehensive income or loss and subsequently reclassified into income when the hedged exposure affects income. The ineffective portion of the gain or loss is reported in income immediately. For a derivative financial instrument designated as a fair value hedge, the gain or loss is recognized in income in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. When a hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income remains in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to income or loss. For derivative financial instruments that are not designated as accounting hedges, changes in fair value are recognized in income in the period of change. During the years ended December 31, 2020, 2019 and 2018, certain derivative financial instruments qualified for hedge accounting (see Note 15).
(x)
Comprehensive Income
Comprehensive income for the period includes the net income for the period presented in the consolidated statement of income plus other comprehensive income for the period reflected in the consolidated statement of comprehensive income.

(y)
Share-based Payment Agreements
Key officers and employees of certain subsidiaries of the Company have entered into agreements for the conditional sale of Company's shares under the Company's Long-Term Retention Plan ('LTRP'). The share-based compensation expense is measured at fair value at the date the equity benefits are conditionally sold to these officers and employees, and is recognized as a charge to consolidated income (administrative expense) over the vesting period. The Group recognized a share-based compensation expense of Ps.984,356, Ps.1,129,644 and Ps.1,327,549 for the years ended December 31, 2020, 2019 and 2018, respectively, of which Ps.962,806, Ps.1,108,094 and Ps.1,305,999 was credited in consolidated stockholders' equity for those years, respectively (see Note 17).

(z)
Leases

Through December 31, 2018:

The determination of whether an arrangement was, or contained, a lease was based on the substance of the arrangement and required an assessment of whether the fulfillment of the arrangement was dependent on the use of a specific asset or assets and whether the arrangement conveyed the right to use the asset.

Leases of property, plant and equipment and other assets where the Group held substantially all the risks and rewards of ownership were classified as finance leases. Finance lease assets were capitalized at the commencement of the lease term at the lower of the present value of the minimum lease payments or the fair value of the lease asset. The obligations relating to finance leases, net of finance charges in respect of future periods, were recognized as liabilities. The interest element of the finance cost was charged to the consolidated statement of income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases was depreciated over the shorter of the useful life of the asset and the lease term.

Leases where a significant portion of the risks and rewards were held by the lessor were classified as operating leases. Rentals were charged to the consolidated statement of income on a straight line basis over the period of the lease.

Leasehold improvements were depreciated at the lesser of its useful life or contract term.

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In the first quarter of 2019, the Group adopted IFRS 16 Leases ('IFRS 16'), which became effective for annual periods beginning on January 1, 2019 (see Note 28). The Group does not apply this new IFRS Standard to short-term leases and leases for which the underlying asset is of low value, as permitted by the guidelines of IFRS 16.
On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as operating leases under the principles of IAS 17 Leases ('IAS 17'). These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee´s incremental borrowing rate as of January 1, 2019. The average lessee's incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 4.7% and 10.6% for U.S. dollars leases and Mexican pesos leases, respectively.
(aa)
New and Amended IFRS Standards
The Group adopted IFRS 16 in 2019, which became effective on January 1, 2019 (see Notes 2 (k), 2 (z) and 28). The Group adopted IFRS 15 and IFRS 9 in 2018, which became effective on January 1, 2018 (see Notes 2 (i), 2 (t) and 28). Some other amendments and improvements to certain IFRS Standards became effective on January 1, 2020, 2019 and 2018, and they did not have any significant impact on the Group's consolidated financial statements.
Below is a list of the new and amended IFRS Standards that have been issued by the IASB and are effective for annual periods starting on or after June 1, 2021.

New or Amended IFRS Standard
Title of the IFRS Standard
Effective for Annual
Periods Beginning
On or After
Amendments to IFRS 10 and IAS 28 (1)
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Postponed
IFRS 17 (2)
Insurance Contracts
January 1, 2023
Amendments to IAS 1 (1)
Classification of Liabilities as Current or Non-current
January 1, 2023
Annual Improvements (1)
Annual Improvements to IFRS Standards 2018-2020
January 1, 2022
Amendments to IAS 16 (1)
Property, Plant and Equipment: Proceeds before Intended Use
January 1, 2022
Amendments to IAS 37 (1)
Onerous Contracts - Cost of Fulfilling a Contract
January 1, 2022
Amendments to IFRS 3 (1)
Reference to the Conceptual Framework
January 1, 2022
Amendment to IFRS 16 (1)
COVID-19-Related Rent Concessions
June 1, 2020
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (2)
Interest Rate Benchmark Reform - Phase 2
January 1, 2021
Amendments to IAS 8
Definition of Accounting Estimates
January 1, 2023
Amendments to IAS 1 and IFRS Practice Statement 2
Disclosure of Accounting Policies
January 1, 2023
(1) This new or amended IFRS Standard is not expected to have a significant impact on the Group's consolidated financial statements.
(2) This new or amended IFRS Standard is not expected to be applicable to the Group's consolidated financial statements.
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, were issued in September 2014 and address and acknowledge inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involved a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involved assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015, the IASB postponed the effective date of these amendments indefinitely pending the outcome of its research project on the equity method of accounting.

IFRS 17 Insurance Contracts ('IFRS 17') was issued in May 2017 and amended in June 2020. IFRS 17 supersedes IFRS 4 Insurance Contracts ('IFRS 4'), which has given companies dispensation to carry on accounting for insurance contracts using national accounting standards, resulting in a multitude of different approaches. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosures of insurance contracts issued. It also requires similar principles to be applied to reinsurance contracts with discretionary participation features issued. IFRS 17 solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Under the provisions of IFRS 17, insurance obligations will be accounted for using current values instead of historical cost. Amendments to IFRS 17 were issued in June 2020 aimed at helping companies implement the Standard and making it easier for them to explain their financial performance. The fundamental principles introduced when IFRS 17 was issued in May 2017 remained unaffected. IFRS 17 is effective on January 1, 2023, and earlier application is permitted.
Amendments to IAS 1 Classification of Liabilities as Current or Non-current were issued in January 2020, and clarify one of the criteria in IAS 1 for classifying a liability as non-current that is, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. An entity shall apply these amendments for annual reporting periods beginning on or after January 1, 2023 retrospectively in accordance with IAS 8. Earlier application is permitted.


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Annual Improvements to IFRS Standards 2018-2020, were issued in May 2020, and make minor amendments to certain IFRS Standards. The amendments are effective for annual periods beginning on or after January 1, 2022. Earlier application is permitted. The following table shows the IFRS Standards amended and the subject of the amendments.

Standard
Subject of Amendment
IFRS 1 First-time Adoption of International Reporting Standards
Subsidiary as a First-time Adopter
IFRS 9 Financial Instruments
Fees in the '10 per cent' Test for Derecognition of Financial Liabilities
Illustrative Examples accompanying IFRS 16 Leases
Lease Incentives
IAS 41 Agriculture
Taxation in Fair Value Measurements

Amendments to IFRS 3 Reference to the Conceptual Framework, were issued in May 2020, and update a reference in IFRS 3 Business Combinations to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use, were issued in May 2020, and prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in income or loss.

Amendments to IAS 37 Onerous Contracts - Cost of Fulfilling a Contract, were issued in May 2020, and specify which costs a company includes when assessing whether a contract will be loss-making, under the guidelines of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Amendment to IFRS 16 Covid-19-Related Rent Concessions was issued in May 2020, and exempts lessees from having to consider individual lease contracts to determine whether rent concessions (i.e. temporary rent reductions) occurring as a direct consequence of the Covid-19 pandemic are lease modifications, and allows lessees to account for such rent concessions as if they were not lease modifications. It applies to Covid-19-related rent concessions that reduce lease payments due on or before June 30, 2021. IFRS 16 specifies how lessees should account for changes in lease payments, including concessions. However, applying those requirements to a potentially large volume of Covid-19-related rent concessions could be practically difficult, especially in the light of the many challenges stakeholders face during the pandemic. This optional exemption gives timely relief to lessees and enables them to continue providing information about their leases that is useful to investors. The amendment does not affect lessors. The amendment is effective for annual reporting periods beginning on or after June 1, 2020. Earlier application is permitted, including in financial statements not authorized for issue.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform - Phase 2, were issued in August 2020 as a complement to those amendments issued in September 2019 (Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform, which were focused on the accounting effects of uncertainty in the period leading up to the reform). The 'interest rate benchmark reform' refers to the market-wide reform of an interest rate benchmark (such as an interbank offered rate or IBOR), including the replacement of an interest rate benchmark with an alternative benchmark rate. Phase 2 amendments focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform, The amendments in this final phase relate to: (i) changes to contractual cash flows - a company will not have to derecognize or adjust the carrying amount of financial instruments for changes required by the reform, but will instead update the effective interest rate to reflect the change to the alternative benchmark rate; (ii) hedge accounting - a company will not have to discontinue its hedge accounting solely because it makes changes required by the reform, if the hedge meets other hedge accounting criteria; and (iii) disclosures - a company will be required to disclose information about new risks arising from the reform and how it manages the transition to alternative benchmark rates.

Amendments to IAS 8 Definition of Accounting Estimates, were issued in February 2021, the amendments introduced the definition of accounting estimates and included other amendments to IAS 8 to help entities distinguish changes in accounting estimates from changes in accounting policies.

Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies, were issued in February 2021, the Board amended paragraphs 117-122 of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policy information rather than their significant accounting policies. To support this amendment the Board also amended IFRS Practice Statement 2 Making Materiality Judgements (Materiality Practice Statement) to explain and demonstrate the application of the 'four-step materiality process' to accounting policy disclosures.
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[800600] Notes - List of accounting policies


Disclosure of significant accounting policies


Accounting Policies

The principal accounting policies followed by the Group and used in the preparation of its annual consolidated financial statements as of December 31, 2020, and where applicable, of its interim condensed consolidated financial statements, are summarized below. These accounting policies should be read in conjunction with the audited consolidated financial statements of the Group for the years ended December 31, 2020 and 2019, once they have been submitted to the Mexican Banking and Securities Commission ('Comisión Nacional Bancaria y de Valores' and the U.S. Securities and Exchange Commission, respectively
(a)
Basis of Presentation

The consolidated financial statements of the Group as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018, are presented in accordance with International Financial Reporting Standards ('IFRS Standards'), as issued by the International Accounting Standards Board ('IASB'). IFRS Standards comprise: (i) IFRS Standards; (ii) International Accounting Standards ('IAS Standards'); (iii) IFRS Interpretations Committee ('IFRIC') Interpretations; and (iv) Standing Interpretations Committee ('SIC') Interpretations.
The consolidated financial statements have been prepared on a historical cost basis, except for the measurement at fair value of derivative financial instruments, financial assets, investments in equity financial instruments, plan assets of post-employment benefits and share-based payments, as described in the notes to the financial statements below.
The preparation of consolidated financial statements in conformity with IFRS Standards, requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where estimates and assumptions are significant to the Group's financial statements are disclosed in Note 5 to these consolidated financial statements.
These consolidated financial statements were authorized for issuance on March 31, 2021 by the Group's Corporate Vice President of Finance.
(b)
Consolidation

The financial statements of the Group are prepared on a consolidated basis and include the assets, liabilities and results of operations of all companies in which the Company has a controlling interest (subsidiaries). All intercompany balances and transactions have been eliminated from the consolidated financial statements.
Subsidiaries
Subsidiaries are all entities over which the Company has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether or not the Company controls another entity. The subsidiaries are consolidated from the date on which control is obtained by the Company and cease to consolidate from the date on which said control is lost.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis at the non-controlling interest's proportionate share of the recognized amounts of acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred.

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Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in income or loss.


Changes in Ownership Interests in Subsidiaries without Change of Control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the interest acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity.
Loss of Control of a Subsidiary
When the Company ceases to have control of a subsidiary, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognized in income or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts previously recognized in other comprehensive income are reclassified to income or loss except for certain equity financial instruments designated irrevocably with changes in other comprehensive income or loss.
At December 31, 2020 and 2019, the main direct and indirect subsidiaries of the Company were as follows:
Subsidiaries
Company's
Ownership
Interest (1)
Business
Segment (2)
Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, 'Empresas Cablevisión') (3)
51.2
%
Cable
Subsidiaries engaged in the Cablemás business (collectively, 'Cablemás') (4)
100
%
Cable
Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, 'TVI') (5)
100
%
Cable
Cablestar, S.A. de C.V. and subsidiaries (collectively, 'Bestel') (6)
66.2
%
Cable
Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, 'Cablecom') (7)
100
%
Cable
Subsidiaries engaged in the Telecable business (collectively, 'Telecable') (8)
100
%
Cable
FTTH de México, S.A. de C.V. (9)
100
%
Cable
Corporativo Vasco de Quiroga, S.A. de C.V. ('CVQ') and subsidiaries (10)
100
%
Cable and Sky
Innova, S. de R.L. de C.V. ('Innova') and subsidiaries (collectively, 'Sky') (11)
58.7
%
Sky
Grupo Telesistema, S.A. de C.V. ('Grupo Telesistema') and subsidiaries
100
%
Content and Other Businesses
Televisa, S.A. de C.V. ('Televisa') (12)
100
%
Content
Televisión Independiente de México, S.A. de C.V. ('TIM') (12)
100
%
Content
G.Televisa-D, S.A. de C.V. (12)
100
%
Content
Multimedia Telecom, S.A. de C.V. ('Multimedia Telecom') and subsidiary (13)
100
%
Content
Ulvik, S.A. de C.V. (14)
100
%
Content and Other Businesses
Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries
100
%
Other Businesses
Editorial Televisa, S.A. de C.V. and subsidiaries
100
%
Other Businesses
Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries
100
%
Other Businesses
Villacezán, S.A. de C.V. ('Villacezán') and subsidiaries (15)
100
%
Other Businesses
Sistema Radiópolis, S.A. de C.V. ('Radiópolis') and subsidiaries (16)
-
Disposed operations
(1)
Percentage of equity interest directly or indirectly held by the Company.
(2)
See Note 26 for a description of each of the Group's business segments.
(3)
Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ.
(4)
Some Cablemás subsidiaries are directly owned by CVQ and some other Cablemás subsidiaries are indirectly owned by CVQ.
(5)
Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ.
(6)
Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V.
(7)
Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ.
(8)
The Telecable subsidiaries are directly owned by CVQ.
(9)
FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ.


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(10)
CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom, Telecable and Innova.
(11)
Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. ('Sky DTH'), and a direct majority-owned subsidiary of Innova Holdings, S. de R.L. de C.V. ('Innova Holdings'). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova's equity and designates a majority of the members of Innova's Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in the Group and Sky. These veto rights are protective in nature and do not affect decisions about relevant business activities of Innova.
(12)
Televisa, TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema.
(13)
Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. ('Tieren'), are indirect wholly-owned subsidiaries of Grupo Telesistema, through which the Company owns shares of the capital stock of UHI and maintained through December 29, 2020, an investment in warrants that were exercised for shares of common stock of UHI on that date. As of December 31, 2020 and 2019, Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group's aggregate investment in shares of common stock and/or share warrants issued by UHI (see Notes 9, 10 and 20).
(14)
Direct subsidiary through which we conduct certain operations of our Content segment and certain operations of our Other Businesses segments.
(15)
Villacezán is an indirect subsidiary of Grupo Telesistema.
(16)
In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a direct subsidiary of the Company through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of Radiópolis. The Radio business was part the of the Group's Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its operating results, were classified as held for sale in the Group's consolidated financial statements through June 30, 2020 (see Notes 3 and 26).
The Group's Cable, Sky and Content segments, require governmental concessions and special authorizations for the provision of broadcasting and telecommunications services in Mexico. Such concessions are granted by the Mexican Institute of Telecommunications ('Instituto Federal de Telecomunicaciones' or 'IFT') for a fixed term, subject to renewal in accordance with the Mexican Telecommunications and Broadcasting Law ('Ley Federal de Telecomunicaciones y Radiodifusión' or 'LFTR').
Renewal of concessions for the Content segment (Broadcasting) require, among others: (i) to request such renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder's obligations under the LFTR, other applicable regulations, and the concession title; (iii) a declaration by IFT that there is no public interest in recovering the spectrum granted under the related concession; and (iv) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT, including the payment of a related fee. IFT shall resolve within the year following the presentation of the request, if there is public interest in recovering the spectrum granted under the related concession, in which case it will notify its determination and proceed with the termination of the concession at the end of its fixed term. If IFT determines that there is no public interest in recovering the spectrum, it will grant the requested extension within 180 business days, provided that the concessionaire accepts, in advance, the new conditions set by IFT, which will include the payment of the fee referred to above. Such fee will be determined by IFT for the relevant concessions, considering the following elements: (i) the frequency band; (ii) the amount of spectrum; (iii) coverage of the frequency band; (iv) domestic and international benchmark regarding the market value of frequency bands; and (v) upon request of IFT, an opinion issued by the Ministry of Finance and Public Credit of IFT´s proposal for calculation of the fee.
Renewal of concessions for the Sky and Cable segments require, among others: (i) to request its renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder's obligations under the LFTR, other applicable regulations, and the concession title; and (iii) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT. IFT shall resolve any request for renewal of the telecommunications concessions within 180 business days of its request. Failure to respond within such period of time shall be interpreted as if the request for renewal has been granted.
The regulations of the broadcasting and the telecommunications concessions (including satellite pay TV) establish that at the end of the concession, the frequency bands or spectrum attached to the services provided in the concessions shall return to the Mexican government. In addition, at the end of the concession, the Mexican government will have the preferential right to acquire infrastructure, equipment and other goods directly used in the provision of the concession. If the Mexican government were to exercise its right to acquire infrastructure, equipment and other goods, it would be required to pay a price that is equivalent to a formula that is similar to fair value. To the knowledge of the Company's management, no spectrum granted for broadcasting services in Mexico has been recovered by the Mexican government in at least the past three decades for public interest reasons. However, the Company's management is unable to predict the outcome of any action by IFT in this regard. In addition, these assets, by themselves, would not be enough to immediately begin broadcasting or offering satellite pay TV services or telecommunications services, as no content producing assets or other equipment necessary to operate the business would be included.
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Also, the Group's Gaming business, which is reported in the Other Businesses segment, requires a permit granted by the Mexican Federal Government for a fixed term, subject to renewal in accordance with Mexican law. Additionally, the Group's Sky businesses in Central America and the Dominican Republic require concessions or permits granted by local regulatory authorities for a fixed term, subject to renewal in accordance with local laws.
The accounting guidelines provided by IFRIC 12 Service Concession Arrangements, are not applicable to the Group due primarily to the following factors: (i) the Mexican government does not substantially control the Group's infrastructure, what services are provided with the infrastructure and the price at which such services are offered; (ii) the Group's broadcasting service does not constitute a public service as per the definition in IFRIC 12; and (iii) the Group is unable to divide its infrastructure among the public (telephony and possibly Internet services) and non-public (pay TV) service components.
At December 31, 2020, the expiration dates of the Group's concessions and permits were as follows:
Segments
Expiration Dates
Cable
Various from 2022 to 2048
Sky
Various from 2021 to 2030
Content (broadcasting concessions) (1)
In 2021 and the relevant renewals start in 2022 ending in 2042
Other Businesses:
Gaming
In 2030
(1)
In November 2018, the IFT approved the renewal of the Group's broadcasting concessions for all of its television stations in Mexico, for a term of 20 years after the existing expiration date in 2021. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized this payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13).
The concessions or permits held by the Group are not subject to any significant pricing regulations in the ordinary course of business.

(c)
Investments in Associates and Joint Ventures


Associates are those entities over which the Group has significant influence but not control or joint control, generally those entities with a shareholding of between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. Joint ventures are those joint arrangements where the Group exercises joint control with other stockholder or more stockholders without exercising control individually, and have rights to the net assets of the joint arrangements. Investments in associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor's share of the net assets of the investee after the date of acquisition.
The Group's investments in associates include an equity interest in UHI represented by approximately 35.9% and 10% of the outstanding total shares of UHI as of December 31, 2020 and 2019, respectively (see Notes 9 and 10).
If the Group's share of losses of an associate or a joint venture equals or exceeds its interest in the investee, the Group discontinues recognizing its share of further losses. The interest in an associate or a joint venture is the carrying amount of the investment in the investee under the equity method together with any other long-term investment that, in substance, form part of the Group's net investment in the investee. After the Group's interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
(d)
Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Group's Co-Chief Executive Officers ('chief operating decision makers') who are responsible for allocating resources and assessing performance for each of the Group's operating segments.

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(e)
Foreign Currency Translation


Functional and Presentation Currency
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('functional currency'). The presentation and reporting currency of the Group's consolidated financial statements is the Mexican peso, which is used for compliance with its legal and tax obligations.
Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or measurement where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income as part of finance income or expense, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as investments in financial instruments are analyzed between exchange differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in income or loss, and other changes in carrying amount are recognized in other comprehensive income or loss.
Translation of Foreign Operations
The financial statements of the Group's foreign entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) assets and liabilities are translated at the closing rate at the date of the statement of financial position; (b) income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); (c) stockholders' equity accounts are translated at the prevailing exchange rate at the time capital contributions were made and earnings were generated and (d) all resulting translation differences are recognized in other comprehensive income or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Translation differences arising are recognized in other comprehensive income or loss.
Assets and liabilities in foreign currencies of non-Mexican subsidiaries that use the Mexican Peso as a functional currency are initially converted to Mexican Pesos by utilizing the exchange rate of the statement of financial position date for monetary assets and liabilities, and historical exchange rates for non-monetary items, with the related adjustment included in the consolidated statement of income as finance income or expense.
A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item 'Long-term debt, net of current portion' of the consolidated statement of financial position) has been designated as a hedge of a net investment in a foreign operation in connection with the Group's investment in shares of common stock of UHI (hedged item), which amounted to U.S.$1,074.0 million (Ps.21,424,180) and U.S.$ 433.7 million (Ps. 8,189,662) as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss as a cumulative result from foreign currency translation (see Note 10).

A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item 'Long-term debt, net of current portion' of the consolidated statement of financial position) was designated as a fair value hedge of foreign exchange exposure related to its investment in warrants that were exercisable for common stock of UHI (hedged item) through December 29, 2020, the date on which the Group exercised all of these warrants for common stock of UHI, which amounted to Ps.17,387,699 million (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 million (U.S.$1,788.6 million) as of December 31, 2019. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt was credited or charged directly to other comprehensive income or loss through December 29, 2020, along with the recognition in the same line item of any foreign currency gain or loss of this investment in warrants designated as a hedged item through that date (see Notes 9, 14 and 18).
A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item 'Long-term debt, net of current portion' of the consolidated statement of financial position) has been designated as a fair value hedge of foreign exchange exposure related to its investment in Open-Ended Fund (hedged item), which amounted to Ps.1,135,803 (U.S.$56.9 million) and Ps.4,688,202 (U.S.$248.3 million), as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss, along with the recognition in the same line item of any foreign currency gain or loss of this investment in Open-Ended Fund designated as a hedged item (see Notes 9, 14 and 18).
Beginning on January 1, 2018, the Group adopted the hedge accounting requirements of IFRS 9 Financial Instruments ('IFRS 9') for all of its hedging relationships. This IFRS Standard became effective on that date.

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(f)
Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three months or less at the date of acquisition. Cash is stated at nominal value and cash equivalents are measured at fair value, and the changes in the fair value are recognized in the statement of income.

As of December 31, 2020 and 2019, cash equivalents primarily consisted of fixed short-term deposits and corporate fixed income securities denominated in U.S. dollars and Mexican pesos, with an average yield of approximately 0.38% for U.S. dollar deposits and 5.40% for Mexican peso deposits in 2020, and approximately 2.20% for U.S. dollar deposits and 8.09% for Mexican peso deposits in 2019.

(g)
Transmission Rights and Programming

Programming is comprised of programs, literary works, production talent advances and films.
Transmission rights and literary works are valued at the lesser of acquisition cost and net realizable value. Programs and films are valued at the lesser of production cost, which consists of direct production costs and production overhead, and net realizable value. Payments for production talent advances are initially capitalized and subsequently included as direct or indirect costs of program production. Transmission rights are recognized from the point of which the legally enforceable license period begins. Until the license term commences and the programming rights are available, payments made are recognized as prepayments.
The Group's policy is to capitalize the production costs of programs which benefit more than one annual period and amortize them over the expected period of future program revenues based on the Company's historical revenue patterns and usage for similar productions.
Transmission rights, programs, literary works, production talent advances and films are recorded at acquisition or production cost. Cost of sales is calculated and recorded for the month in which such transmission rights, programs, literary works, production talent advances and films are matched with related revenues.
Transmission rights are recognized in income over the lives of the contracts. Transmission rights in perpetuity are amortized on a straight-line basis over the period of the expected benefit as determined by past experience, but not exceeding 25 years.


(h)
Inventories

Inventories of paper, magazines, materials and supplies for maintenance of technical equipment are recorded at the lower of cost or its net realization value. The net realization value is the estimated selling price in the normal course of business, less estimated costs to conduct the sale. Cost is determined using the average cost method.
(i)
Financial Assets


Beginning on January 1, 2018, the Group classifies its financial assets in accordance with IFRS 9 which became effective on that date. Under the guidelines of IFRS 9, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or loss ('FVOCIL'), or fair value through income or loss ('FVIL'), based on the Company's business model for managing the financial assets and the contractual cash flows characteristics of the financial asset.

Financial Assets Measured at Amortized Cost
Financial assets are measured at amortized cost when the objective of holding such financial assets is to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are only payments of principal and interest on the principal amount outstanding. These financial assets are initially recognized at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest rate method, with changes in carrying value recognized in the consolidated statement of income in the line which most appropriately reflects the nature of the item or transaction. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period that are included in non-current assets. The Group's financial assets measured at amortized costs are primarily presented as 'trade notes and accounts receivable', 'other accounts and notes receivable', and 'due from related parties' in the consolidated statement of financial position (see Note 7).
Financial Assets Measured at FVOCIL
Financial assets are measured at FVOCIL when the objective of holding such financial assets is both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
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The Group's investments in certain equity instruments have been designated to be measured at FVOCIL, as permitted by IFRS 9 (see Note 28). In connection with this designation, any amounts presented in consolidated other comprehensive income are not subsequently transferred to consolidated income. Dividends from these equity instruments are recognized in consolidated income when the right to receive payment of the dividend is established, and such dividend is probable to be paid to the Group.
Financial Assets at FVIL
Financial assets at FVIL are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current.
Impairment of Financial Assets
From January 1, 2018, the Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at fair value through other comprehensive income or loss. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables (see Note 7).
Offsetting of Financial Instruments
Financial assets are offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Group: (i) currently has a legally enforceable right to set off the recognized amounts; and (ii) intends either to settle on a net basis, or to realize the assets and settle the liability simultaneously.

(j)
Property, Plant and Equipment

Property, plant and equipment are recorded at acquisition cost.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to income or loss during the financial period in which they are incurred.
Land is not depreciated. Depreciation of property, plant and equipment is based upon the carrying value of the assets in use and is computed using the straight-line method over the estimated useful lives of the asset, as follows:

Estimated
Useful Lives
Buildings
20-65 years
Building improvements
5-20 years
Technical equipment
3-30 years
Satellite transponders
15 years
Furniture and fixtures
3-10 years
Transportation equipment
4-8 years
Computer equipment
3-6 years
Leasehold improvements
5-30 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income or expense in the consolidated statement of income.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

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(k)
Right-of-use Assets

Right-of-use assets are measured at cost comprising the following: the amount of the initial meas