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    TLEVISA CPO   MXP4987V1378

GRUPO TELEVISA, S.A.B.

(TLEVISA CPO)
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Grupo Televisa B : Quarterly Financial Information (Form 6-K)

05/12/2021 | 10:02am EST
Quarterly Financial Information


[105000] Management commentary
2
[110000] General information about financial statements
17
[210000] Statement of financial position, current/non-current
21
[310000] Statement of comprehensive income, profit or loss, by function of expense
23
[410000] Statement of comprehensive income, OCI components presented net of tax
24
[520000] Statement of cash flows, indirect method
26
[610000] Statement of changes in equity - Accumulated Current
28
[610000] Statement of changes in equity - Accumulated Previous
31
[700000] Informative data about the Statement of financial position
34
[700002] Informative data about the Income statement
35
[700003] Informative data - Income statement for 12 months
36
[800001] Breakdown of credits
37
[800003] Annex - Monetary foreign currency position
39
[800005] Annex - Distribution of income by product
40
[800007] Annex - Financial derivative instruments
41
[800100] Notes - Subclassifications of assets, liabilities and equities
48
[800200] Notes - Analysis of income and expense
52
[800500] Notes - List of notes
53
[800600] Notes - List of accounting policies
69
[813000] Notes - Interim financial reporting
84
Footnotes
107


1 of 101

[105000] Management commentary
Management commentary


Mexico City, May 03, 2021 - Grupo Televisa, S.A.B. (NYSE:TV; BMV: TLEVISA CPO; 'Televisa' or 'the Company'), today announced audited results for full year and fourth quarter 2020. 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 years ended December 31, 2020 and 2019, in millions of Mexican pesos.

2020
Margin
2019
Margin
Change
%
%
%
Net sales
97,361.6
100.0
101,757.2
100.0
(4.3)
Operating segment income(1)
40,510.9
38.8
41,032.1
38.6
(1.3)
(1)
The operating segment income margin is calculated as a percentage of segment net sales.

Net sales, decreased by 4.3% to Ps.97,361.6 million in 2020 compared with Ps.101,757.2 million in 2019. This decreased was due to revenue decline in the Other Businesses and Content segments. Operating segment income decreased 1.3%, but margin was higher than 2019 and reached 38.8%.

The following table sets forth condensed consolidated statements of income for the years ended December 31, 2020 and 2019, in millions of Mexican pesos:

2020
Margin
2019
Margin
Change
%
%
%
Net sales
97,361.6
100.0
101,757.2
100.0
(4.3)
Net income
302.8
0.3
6,106.8
6.0
(95.0)
Net (loss) income attributable to stockholders of the Company
(1,250.3)
(1.3)
4,626.1
4.5
n/a
Segment net sales
104,390.8
100.0
106,309.9
100.0
(1.8)
Operating segment income (1)
40,510.9
38.8
41,032.1
38.6
(1.3)
(1)
The operating segment income margin is calculated as a percentage of segment net sales.
Net income or loss attributable to stockholders of the Company amounted to a net loss of Ps.1,250.3 million for 2020, compared with a net income of Ps.4,626.1 million for 2019. The unfavorable net change of Ps.5,876.4 million, reflected (i) a Ps.6,320.8 million unfavorable change in share of income or loss of associates and joint ventures, net; (ii) a Ps.2,559.4 million increase in income taxes; (iii) a Ps.777.9 million decrease in income before depreciation and amortization; (iv) a Ps.252.0 million increase in depreciation and amortization; and (v) a Ps.72.4 million increase in net income attributable to non-controlling interests.
These unfavorable variances were partially offset by (i) a Ps.2,555.8 million decrease in finance expense, net; and (ii) a Ps.1,550.3 million favorable change in other income (expense), net.


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 25 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.
2 of 101

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 also 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 announced by the Mexican Federal Government will have in our results of operations and the overall economy.

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

3 of 101


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
The Pendency of the 2021 Transaction
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 the date of this report, 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 fourth 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 of 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 restrictions on capacity and operating hours which may affect the results of our Other Businesses segment in the following months.
Notwithstanding the foregoing, the authorities may impose further restrictions on essential and 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.


4 of 101
Transaction 2021

On April 13, 2021, we and Univision Holdings, Inc., or UHI, announced a definitive transaction agreement in which our content and media assets will be combined with UHI to create the largest Spanish-language media company in the world.

We will continue to participate in UHI's growth potential by remaining the largest shareholder in UHI, with an equity stake of approximately 45% following the transaction. We will also retain ownership of our Cable, Sky and Other Businesses segments, as well as the main real estate associated with the production facilities, the broadcasting concessions and transmission infrastructure in Mexico.

We will contribute the assets specified in the 2021 Transaction Agreement, including, subject to certain exceptions, our Content business included in our Content business segment to UHI for U.S.$4.5 billion in a combination of cash (U.S.$3 billion) and U.S.$1.5 billion of common and preferred shares of UHI.

In connection with the transaction, UHI will receive all assets, IP and library related to the News division of our Content business, but will outsource production of news content for Mexico to a company owned by the Azcárraga family.

The Boards of Directors of the Company and UHI have approved the combination. The transaction is expected to close in 2021, subject to customary closing conditions, including receipt of regulatory approvals in the United States, Mexico and Colombia, among others, and approval of the Company's shareholders.

As a result of the transaction, we expect that our cash and cash equivalents will increase by U.S.$3,000 million, and our investment in common and preferred shares of UHI will increase by U.S.$1,500 million when the transaction is completed. We expect to recognize a net gain on disposition of discontinued operations in our consolidated statement of income in connection with the disposition of our Content business segment and the related assets specified in the 2021 Transaction Agreement. Additionally, after the transaction is completed, we expect increases in our consolidated share of income in associates derived from a larger ownership in UHI and in consolidated finance income derived from the returns from our investments in preferred shares issued by UHI to us in the transaction. These expected effects will be partially offset in our consolidated statement of income by a reduction in our consolidated operating income resulting primarily from the disposal of our Content business segment. We will continue to consolidate the results of our Content business segment until we cease to have control of this business segment, in accordance with the terms of the 2021 Transaction Agreement.

Disclosure of results of operations and prospects

The following table presents full year consolidated results ended December 31, 2020 and 2019, for each of our business segments, in millions of Mexican pesos.

Net Sales
2020
%
2019
%
Change
%
Cable
45,367.1
43.5
41,702.0
39.2
8.8
Sky
22,134.7
21.2
21,347.1
20.1
3.7
Content
32,613.0
31.2
35,060.5
33.0
(7.0)
Other Businesses
4,276.0
4.1
8,200.3
7.7
(47.9)
Segment Net Sales
104,390.8
100.0
106,309.9
100.0
(1.8)
Intersegment Operations(1)
(7,252.5)
(5,394.1)
Net Sales
97,138.3
100,915.8
(3.7)
Disposed Operations (2)
223.3
n/a
841.4
n/a
n/a
Consolidated Net Sales
97,361.6
101,757.2
(4.3)



5 of 101


Operating Segment Income(3)
2020
Margin
%
2019
Margin
%
Change
%
Cable
18,898.3
41.7
17,797.6
42.7
6.2
Sky
9,135.3
41.3
9,121.2
42.7
0.2
Content
12,360.8
37.9
12,649.1
36.1
(2.3)
Other Businesses
116.5
2.7
1,464.2
17.9
(92.0)
Operating Segment Income
40,510.9
38.8
41,032.1
38.6
(1.3)
Corporate Expenses
(1,882.9)
(1.8)
(1,888.4)
(1.8)
0.3
Depreciation and Amortization
(21,260.8)
(21.8)
(21,008.8)
(20.6)
(1.2)
Other Income (Expense), net
233.7
0.2
(1,316.6)
(1.3)
n/a
Intersegment Operations(1)
(71.5)
(0.1)
(72.2)
(0.1)
1.0
Disposed Operations(2)
(4.0)
n/a
258.9
n/a
n/a
Operating Income
17,525.4
18.0
17,005.0
16.7
3.1
(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 years ended December 31, 2020 and 2019.
(3) Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other income (expense), net.

The following table presents fourth quarter consolidated results ended December 31, 2020 and 2019, for each of our business segments. Fourth quarter consolidated results for 2020 and 2019 are presented in millions of Mexican pesos.

Net Sales
4Q'20
%
4Q'19
%
Change
%
Cable
11,825.7
39.8
11,016.1
37.3
7.3
Sky
5,616.7
18.9
5,379.1
18.2
4.4
Content
11,111.5
37.4
11,166.6
37.9
(0.5)
Other Businesses
1,170.0
3.9
1,933.9
6.6
(39.5)
Segment Net Sales
29,723.9
100.0
29,495.7
100.0
0.8
Intersegment Operations(1)
(1,941.2)
(1,495.3)
Net Sales
27,782.7
28,000.4
(0.8)
Disposed operations(2)
-
n/a
267.8
n/a
n/a
Consolidated Net Sales
27,782.7
28,268.2
(1.7)

Operating Segment Income(3)
4Q'20
Margin
%
4Q'19
Margin
%
Change
%
Cable
4,954.8
41.9
4,545.0
41.3
9.0
Sky
2,143.2
38.2
2,108.9
39.2
1.6
Content
5,371.4
48.3
4,341.2
38.9
23.7
Other Businesses
164.6
14.1
96.7
5.0
70.2
Operating Segment Income
12,634.0
42.5
11,091.8
37.6
13.9
Corporate Expenses
(718.2)
(2.4)
(496.7)
(1.7)
(44.6)
Depreciation and Amortization
(5,639.3)
(20.3)
(5,392.4)
(19.1)
(4.6)
Other Expense, net
(423.7)
(1.5)
(455.3)
(1.6)
6.9
Intersegment Operations(1)
(16.3)
(0.1)
(18.8)
(0.1)
13.3
Disposed operations(2)
-
n/a
100.3
n/a
n/a
Operating Income
5,836.5
21.0
4,828.9
17.1
20.9
(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 December 31, 2020 and 2019.
(3 Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.
6 of 101
Cable

Total net additions for the quarter were approximately 223.1 thousand RGUs. Quarterly growth was mainly driven by 127.6 thousand broadband net additions and 109.3 thousand voice net additions. Video RGUs decreased by 49.2 thousand.

The following table sets forth the breakdown of RGUs per service type for our Cable segment as of December 31, 2020 and 2019.

RGUs
4Q'20 Net
Adds
2020 Net
Adds
2020
2019
Video
(49,226)
(34,181)
4,284,682
4,318,863
Broadband
127,614
734,805
5,430,859
4,696,054
Voice
109,266
658,538
4,296,530
3,637,992
Mobile
35,401
75,515
75,515
-
Total RGUs
223,055
1,434,677
14,087,586
12,652,909

Fourth quarter sales increased by 7.3% to Ps.11,825.7 million compared with Ps.11,016.1 million in fourth quarter 2019 driven by solid net additions in broadband, voice and strong performance in Enterprise operations.

Full year sales increased by 8.8% to Ps.45,367.1 million compared with Ps.41,702.0 million in 2019. Total RGUs reached 14.1 million. Total net additions for the year were more than 1.4 million.

Fourth quarter operating segment income increased by 9.0% to Ps.4,954.8 million compared with Ps.4,545.0 million in fourth quarter 2019.

Full year operating segment income increased by 6.2% to Ps.18,898.3 million compared with Ps. 17,797.6 million in 2019. The margin reached 41.7%.

The following tables set forth the breakdown of revenues and operating segment income, excluding consolidation adjustments, for our MSO and enterprise operations for fourth quarter 2020 and 2019, and for full year 2020 and 2019.

MSO Operations(1)
Millions of Mexican pesos
2020
2019
Change %
4Q'20
4Q'19
Change %
Revenue
40,441.4
37,495.8
7.9
10,529.4
9,800.9
7.4
Operating Segment Income
17,091.4
16,248.0
5.2
4,471.4
4,151.1
7.7
Margin (%)
42.3
43.3
42.5
42.4


Enterprise Operations (1)
Millions of Mexican pesos
2020
2019
Change %
4Q'20
4Q'19
Change %
Revenue
6,783.3
5,874.5
15.5
1,778.1
1,631.0
9.0
Operating Segment Income
2,388.3
2,051.1
16.4
645.8
527.9
22.3
Margin (%)
35.2
34.9
36.3
32.4
(1)
Full year results do not include the consolidation adjustments of Ps.1,857.6 million in revenues nor Ps.581.4 million in Operating Segment Income for 2020, neither the consolidation adjustments of Ps.1,668.3 million in revenues nor Ps.501.5 million in Operating Segment Income for 2019. Likewise, fourth quarter results do not include the consolidation adjustments of Ps.481.8 million in revenues nor Ps.162.4 million in Operating Segment Income for fourth quarter 2020, neither the consolidation adjustments of Ps.415.8 million in revenues nor Ps.134.0 million in Operating Segment Income for fourth quarter 2019. Consolidation adjustments are considered in the consolidated results of the Cable segment.

Full year sales and operating segment incomein our MSO operations increased by 7.9% and 5.2%, respectively, reaching a margin of 42.3%. Full year sales and operating segment income in our Enterprise Operations increased by 15.5% and 16.4%, respectively.


Sky

Total net additions for the quarter were approximately 76.9 thousand RGUs. Quarterly growth was mainly driven by 71.9 thousand broadband net additions. Sky continued growing its video business after adding 4.9 thousand RGUs.

7 of 101


The following table sets forth the breakdown of RGUs per service type for Sky as of December 31, 2020 and 2019.

RGUs
4Q'20 Net
Adds
2020 Net
Adds
2020
2019
Video
4,944
47,943
7,477,294
7,429,351
Broadband
71,896
279,793
665,907
386,114
Voice
55
(253)
892
1,145
Total RGUs
76,895
327,483
8,144,093
7,816,610
Fourth quarter sales increased by 4.4% to Ps.5,616.7 million compared with Ps.5,379.1 million in fourth quarter 2019. This mainly explained by the growth in broadband RGUs.

Full year sales increased by 3.7% to Ps.22,134.7 million compared with Ps.21,347.1 million in 2019.
Fourth quarter operating segment income increased 1.6% to Ps.2,143.2 million compared with Ps.2,108.9 million in fourth quarter 2019. The margin was 38.2%, mainly affected by the amortization of certain sports that reinitiated in the second half of the year.

Full year operating segment income increased by 0.2% to Ps.9,135.3 million compared with Ps.9,121.2 million in 2019, and the margin was 41.3%.

Content

Fourth quarter sales decreased 0.5% to Ps.11,111.5 million compared with Ps.11,166.6 million in fourth quarter 2019.

Full year sales decreased by 7.0% to Ps.32,613.0 million compared with Ps.35,060.5 million in 2019.
Millions of Mexican pesos
2020
%
2019
%
Change
%
Advertising
16,349.8
50.1
19,459.4
55.5
(16.0)
Network Subscription
5,466.2
16.8
4,993.2
14.2
9.5
Licensing and Syndication
10,797.0
33.1
10,607.9
30.3
1.8
Net Sales
32,613.0
35,060.5
(7.0)

Advertising

Fourth quarter advertising sales were Ps.6,628.1 million, relatively flat compared with Ps.6,620.6 million in fourth quarter 2019. This representes a recovery across most categories among our private sector clients with respect to second and third quarter of 2020.

Full year advertising sales decreased by 16.0%. The decrease in sales is explained by a significant deterioration in the Mexican economy due to COVID-19.

Network Subscription

Fourth quarter Network Subscription revenues increased by 5.4% to Ps.1,401.7 compared with Ps.1,330.0 million in fourth quarter 2019.

Full year Network Subscription revenue increased by 9.5%, mainly related to the increase in the price we charge our affiliated distributors for our pay TV networks and to the favorable impact of the depreciation of the Mexican peso on our dollar-denominated revenues.

Licensing and Syndication

Fourth quarter Licensing and Syndication sales decreased by 4.2% to Ps.3,081.7 million from Ps.3,216.0 million in fourth quarter 2019. Royalties from Univision increased 8.8%, reaching U.S.$110.2 million dollars in fourth quarter 2020 compared to U.S.$101.3 million dollars in fourth quarter 2019. This was a record high for a quarter. For the full year 2020 royalties from Univision decreased by 2.4%, reaching U.S.$379.6 million dollars.

8 of 101

Fourth quarter operating segment income, increased by 23.7% to Ps.5,371.4 compared with Ps.4,341.2 million in fourth quarter 2019. The margin was 48.3%, close to ten percentage points higher than 2019. This increase is mainly explained by an aggressive cost and expense reduction plan.

Full-year operating segment incomedecreased by 2.3% to Ps.12,360.8 million compared with Ps.12,649.1 million in 2019, but the margin was 180 bps higher than 2019.

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.

Fourth quarter sales decreased by 39.5% to Ps.1,170.0 million compared with Ps.1,933.9 million in fourth quarter 2019. Full year sales decreased by 47.9% to Ps.4,276.0 million compared with Ps.8,200.3 million in 2019.

Fourth quarter operating segment incomeincreased by 70.2% to Ps.164.6 million compared with Ps.96.7 million in fourth quarter 2019. Full year operating segment incomedecreased by 92.0% to Ps.116.5 million compared with Ps.1,464.2 million in 2019.

Corporate Expense

Corporate expense reached Ps.1,882.9 million in 2020, relatively flat when compared with Ps.1,888.4 million in 2019.
Share-based compensation expense in 2020 and 2019, amounted to Ps.984.4 million and Ps.1,129.6 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.
Other Income or Expense, Net

Other income or expense, net, changed by Ps.1,550.3 million, to other income, net, of Ps.233.7 million in 2020, from other expense, net, of Ps.1,316.6 million in 2019. This favorable change reflected primarily:

(i)
a pre-tax gain on disposition of our 50% equity stake in our former Radio business, which sale was concluded in July 2020;

(ii)
a non-recurring income related to the cancellation of a related-party provision in the fourth quarter of 2020; and

(iii)
a lower non-recurring severance expense in connection with dismissals of personnel in our Content segment.

These favorable variances were partially offset by:

(i)
a higher expense related to legal and financial advisory and professional services; and

(ii)
a loss on disposition of investment.

The following table sets forth the breakdown of cash and non-cash other income (expense), net, stated in millions of Mexican pesos, for the years ended December 31, 2020 and 2019.

Other income (expense), net
2020
2019
Cash
197.8
(765.0)
Non-cash
35.9
(551.6)
Total
233.7
(1,316.6)


Finance Expense, Net

The following table sets forth finance (expense) income, net, stated in millions of Mexican pesos for the years ended December 31, 2020 and 2019.
9 of 101



2020
2019
(Unfavorable)
Favorable
change
Interest expense
(10,482.2)
(10,402.0)
(80.2)
Interest income
1,333.0
1,529.1
(396.1)
Foreign exchange gain, net
3,004.9
935.3
2,069.6
Other finance income (expense), net
89.3
(873.2)
962.5
Finance expense, net
(6,255.0)
(8,810.8)
2,555.8

Finance expense, net, decreased by Ps.2,555.8 million, or 29.0%, to Ps.6,255.0 million in 2020, from Ps.8,810.8 million in 2019.

This decrease reflected:

(i)
a Ps.2,069.6 million increase in foreign exchange gain, net, resulting primarily from a higher U.S. dollar average net liability position beginning in March 31, 2020, in conjunction with a decrease in the carrying value of our hedged investments in shares and warrants of UHI, and a 16.4% appreciation of the Mexican pesos against the U.S. dollar from that date through December 31, 2020, which effect was partially offset by a 5.6 % depreciation of the Mexican peso against the U.S. dollar for the year ended December 31, 2020, in comparison with a 4.0% appreciation for the year ended December 31, 2019; and

(ii)
a Ps.962.5 million favorable change in other finance income or expense, net, resulting primarily from changes in fair value of our derivative contracts.

These favorable variances were partially offset by:

(i)
a Ps.80.2 million increase in interest expense, primarily due to a higher average principal amount of long-term debt in 2020; and

(ii)
a Ps.396.1 million decrease in interest income, primarily explained by a lower average amount of cash equivalents as well as a reduction in interest rates.

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.6,320.8 million, to a share of loss of Ps.5,739.7 million in 2020, from a share of income of Ps.581.1 million in 2019. This unfavorable change reflected mainly (i) a Ps.5,455.4 million impairment adjustment to the carrying value of our investment in shares of UHI as of March 31, 2020; (ii) a lower share of income of UHI, the controlling company of Univision Communications Inc.; and (iii) a share of loss of Ocesa Entretenimiento, S.A. de C.V., a live entertainment company with operations primarily in Mexico, in which we mantain a 40% interest.

Income Taxes

Income taxes increased by Ps.2,559.4 million, or 95.9%, to Ps.5,227.9 million in 2020, compared with Ps.2,668.5 million in 2019. This increase reflected an increased tax base (income before share of loss of associates and joint ventures) as well as a higher effective income tax rate. The effective income tax rate increased primarily in connection with the cancellation of deferred tax assets related to unused tax losses, income tax adjustments from prior years, and an inflationary tax gain resulting from a higher net monetary liability position of significant companies in the Group for the year ended December 31, 2020.

Net Income Attributable to Non-controlling Interests

Net income attributable to non-controlling interests increased by Ps.72.4 million, or 4.9%, to Ps.1,553.1 million in 2020, compared with Ps.1,480.7 million in 2019. This increase reflected primarily a higher portion of net income attributable to non-controlling interests in our Cable segment, which was partially offset by a lower portion of net income attributable to non-cotrolling interests in our Sky and Other Businesses segments.


10 of 101


Financial position, liquidity and capital resources
Capital Expenditures

During 2020, we invested approximately U.S.$939.4 million in property, plant and equipment as capital expenditures. The following table sets forth the breakdown by segment of capital expenditures for 2020 and 2019.

Capital Expenditures
Millions of U.S. Dollars
2020
2019
Cable
662.5
675.3
Sky
250.2
209.1
Content and Other Businesses
26.7
107.8
Total
939.4
992.2


Debt and Lease Liabilities
The following table sets forth our total consolidated debt, lease liabilities and other notes payable as of December 31, 2020 and 2019. Amounts are stated in millions of Mexican pesos.

December 31, 2020
December 31, 2019
Increase
(Decrease)
Current portion of long-term debt
617.0
491.9
125.1
Long-term debt, net of current portion
121,936.0
120,444.7
1,491.3
Total debt (1)
122,553.0
120,936.6
1,616.4
Current portion of long-term lease liabilities
1,277.7
1,257.8
19.9
Long-term lease liabilities, net of current portion
8,014.6
8,105.8
(91.2)
Total lease liabilities
9,292.3
9,363.6
(71.3)
Current portion of other notes payable
-
1,324.1
(1,324.1)
Total other notes payable
-
1,324.1
(1,324.1)
Total debt, lease liabilities and other notes payable
131,845.3
131,624.3
221.0
(1)
As of December 31, 2020 and 2019, total debt is presented net of finance costs in the amount of Ps.1,324.3 million and Ps.1,441.6 million, respectively.


On October 6, 2020, we prepaid in full with no penalty a revolving credit facility in the principal amount of Ps.14,770.7 million.

As of December 31, 2020, our consolidated net debt position (total debt and lease liabilities, less cash and cash equivalents, and certain non-current investments in financial instruments) was Ps.96,253.9 million. The aggregate amount of non-current investments in financial instruments included in our consolidated net debt position as of December 31, 2020, amounted to Ps.6,533.3 million.

Shares Outstanding

As of December 31, 2020 and 2019, our shares outstanding amounted to 325,992.5 million and 337,244.3 million shares, respectively, and our CPO equivalents outstanding amounted to 2,786.3 million and 2,882.4 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 December 31, 2020 and 2019, the GDS (Global Depositary Shares) equivalents outstanding amounted to 557.3 million and 576.5 million GDS equivalents, respectively. The number of GDS equivalents is calculated by dividing the number of CPO equivalents by five.

The Company's Board of Directors approved the cancellation of 44,215,692 CPOs that were acquired through the share buyback program during 2019 and 2020. This is subject to the approval of the Company's stockholders.

Dividend

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

11 of 101

Univision

On December 29, 2020, Searchlight Capital Partners, LP ('Searchlight'), a global private investment firm, ForgeLight LLC ('ForgeLight'), an operating and investment company focused on the media and consumer technology sectors, and Televisa announced the completion of Searchlight and ForgeLight's acquisition of a majority ownership interest in Univision. In connection with the transaction Televisa maintained its ownership interest in Univision and converted its warrants into common stock.


Internal control


The Company has an integral internal control system. The system is based on business, operating and administrative general policies, as well as the assignment of responsibilities and authorization capacities, in accordance with the nature and significance of identified risks affecting the Company.

The internal control system is currently being optimized and adjusted to international models and best corporate practices. This process includes the update and/or implementation of the following matters:

Control environment: issuance of senior management pronouncements in the areas of risks and internal control, the issuance of the Ethics Code, the communication and trainning on risk and control matters, and the update of the general model of responsibilities and capacities
Risk assessment: systematization of the process to identify, manage and control risks
Control Activities: coordination of internal control procedures and activities with supervisory processes

The governance body responsible for the authorization of the Company's internal control system is the Board of Directors through the Audit Committee.

Disclosure of critical performance measures and indicators that management uses to evaluate entity's performance against stated objectives

2020
Margin
2019
Margin
Change
%
%
%
Net sales
97,361.6
100.0
101,757.2
100.0
(4.3)
Net income
302.8
0.3
6,106.8
6.0
(95.0)
Net (loss) income attributable to stockholders of the Company
(1,250.3)
(1.3)
4,626.1
4.5
n/a
Segment net sales
104,390.8
100.0
106,309.9
100.0
(1.8)
Operating segment income (1)
40,510.9
38.8
41,032.1
38.6
(1.3)
(1)
The operating segment income margin is calculated as a percentage of segment net sales.


Net Sales
2020
%
2019
%
Change
%
Cable
45,367.1
43.5
41,702.0
39.2
8.8
Sky
22,134.7
21.2
21,347.1
20.1
3.7
Content
32,613.0
31.2
35,060.5
33.0
(7.0)
Other Businesses
4,276.0
4.1
8,200.3
7.7
(47.9)
Segment Net Sales
104,390.8
100.0
106,309.9
100.0
(1.8)
Intersegment Operations(1)
(7,252.5)
(5,394.1)
Net Sales
97,138.3
100,915.8
(3.7)
Disposed Operations (2)
223.3
n/a
841.4
n/a
n/a
Consolidated Net Sales
97,361.6
101,757.2
(4.3)


12 of 101
Operating Segment Income3
2020
Margin
%
2019
Margin
%
Change
%
Cable
18,898.3
41.7
17,797.6
42.7
6.2
Sky
9,135.3
41.3
9,121.2
42.7
0.2
Content
12,360.8
37.9
12,649.1
36.1
(2.3)
Other Businesses
116.5
2.7
1,464.2
17.9
(92.0)
Operating Segment Income
40,510.9
38.8
41,032.1
38.6
(1.3)
Corporate Expenses
(1,882.9)
(1.8)
(1,888.4)
(1.8)
0.3
Depreciation and Amortization
(21,260.8)
(21.8)
(21,008.8)
(20.6)
(1.2)
Other Income (Expense), net
233.7
0.2
(1,316.6)
(1.3)
n/a
Intersegment Operations(1)
(71.5)
(0.1)
(72.2)
(0.1)
1.0
Disposed Operations (2)
(4.0)
n/a
258.9
n/a
n/a
Operating Income
17,525.4
18.0
17,005.0
16.7
3.1
(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 years ended December 31, 2020 and 2019.
(3)
Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other income (expense), net.


Net Sales
4Q'20
%
4Q'19
%
Change
%
Cable
11,825.7
39.8
11,016.1
37.3
7.3
Sky
5,616.7
18.9
5,379.1
18.2
4.4
Content
11,111.5
37.4
11,166.6
37.9
(0.5)
Other Businesses
1,170.0
3.9
1,933.9
6.6
(39.5)
Segment Net Sales
29,723.9
100.0
29,495.7
100.0
0.8
Intersegment Operations(1)
(1,941.2)
(1,495.3)
Net Sales
27,782.7
28,000.4
(0.8)
Disposed operations (2)
-
n/a
267.8
n/a
n/a
Consolidated Net Sales
27,782.7
28,268.2
(1.7)

Operating Segment Income(3)
4Q'20
Margin
%
4Q'19
Margin
%
Change
%
Cable
4,954.8
41.9
4,545.0
41.3
9.0
Sky
2,143.2
38.2
2,108.9
39.2
1.6
Content
5,371.4
48.3
4,341.2
38.9
23.7
Other Businesses
164.6
14.1
96.7
5.0
70.2
Operating Segment Income
12,634.0
42.5
11,091.8
37.6
13.9
Corporate Expenses
(718.2)
(2.4)
(496.7)
(1.7)
(44.6)
Depreciation and Amortization
(5,639.3)
(20.3)
(5,392.4)
(19.1)
(4.6)
Other Expense, net
(423.7)
(1.5)
(455.3)
(1.6)
6.9
Intersegment Operations(1)
(16.3)
(0.1)
(18.8)
(0.1)
13.3
Disposed operations(2)
-
n/a
100.3
n/a
n/a
Operating Income
5,836.5
21.0
4,828.9
17.1
20.9
(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 December 31, 2020 and 2019.
(3)
Operating segment income is defined as operating income before depreciation and amortization, corporate expenses, and other expense, net.


13 of 101


Sustainability

During the fourth quarter, Televisa joined global leaders with its commitment to the Science Based Targets initiative. The Science Based Targets initiative is a partnership between CDP, which is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). In addition, Televisa has been recognized as a company that integrates the Task Force Climate Related Financial Disclosure recommendations (TCFD).

Throughout 2020, Televisa's many sustainability efforts continued to be recognized globally. For example, the Company was selected for the 2020 Dow Jones Sustainability MILA Pacific Alliance Index and was one of only five Mexican companies selected for the 2019 DJS Emerging Markets Index. Also, Televisa was included in three 2020 FTSE4Good Index Series: FTSE4Good Emerging Markets, FTSE4Good Emerging Latin America, and FTSE4Good BIVA.

Besides, the Company was selected as one of only five Mexican companies to be included in the 2020 Bloomberg Gender-Equality Index. Also, Televisa was selected as a constituent of the ESG index, launched by S&P, Dow Jones and the Mexican Stock Exchange. Finally, Televisa was confirmed as a signatory of the United Nations Global Compact, the world's largest corporate sustainability initiative.
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 is posted on the 'Reports and Filings' section of our investor relations website at televisair.com.
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. 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.





14 of 101

[110000] General information about financial statements

Ticker:


TLEVISA


Period covered by financial statements:


2020-01-01 TO 2020-12-31


Date of end of reporting period:

2020-12-31


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:

4D


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 December 31, 2020 and December 31, 2019, and for the twelve months ended December 31, 2020 and 2019, 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 December 31, 2020. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2020 did not have a significant impact in these interim un audited condensed consolidated financial statements.
15 of 101


Name service provider external audit

KPMG Cárdenas Dosal, S.C.

Name of the partner signing opinion


C. P. C. Manuel Jiménez Lara

Type of opinion on the financial statements


Unmodified opinion
Date of opinion on the financial statements


2021-04-01

Date assembly in which the financial statements were approved


2021-04-28



16 of 101



Follow-up of analysis



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

Institution:

Barclays
Bradesco
BTG Pactual
BofA Securities
Credit Suisse
Evercore
Goldman Sachs
HSBC
Itaú Securities
JPMorgan
Morgan Stanley
New Street

17 of 101
[210000] Statement of financial position, current/non-current
Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
Statement of financial position
Assets
Current assets
Cash and cash equivalents
29,058,093,000
27,452,265,000
Trade and other current receivables
25,312,941,000
25,491,160,000
Current tax assets, current
5,054,080,000
3,800,379,000
Other current financial assets
0
1,715,000
Current inventories
1,641,300,000
1,151,421,000
Current biological assets
0
0
Other current non-financial assets
[1] 7,994,661,000
7,858,658,000
Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners
69,061,075,000
65,755,598,000
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners
0
1,675,426,000
Total current assets
69,061,075,000
67,431,024,000
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
7,002,712,000
44,268,776,000
Investments accounted for using equity method
0
0
Investments in subsidiaries, joint ventures and associates
22,813,531,000
9,762,432,000
Property, plant and equipment
83,281,627,000
83,329,232,000
Investment property
0
0
Right-of-use assets that do not meet definition of investment property
7,212,165,000
7,553,052,000
Goodwill
14,113,626,000
14,113,626,000
Intangible assets other than goodwill
28,610,592,000
29,215,328,000
Deferred tax assets
27,999,693,000
24,185,148,000
Other non-current non-financial assets
[2] 11,151,311,000
10,485,274,000
Total non-current assets
202,185,257,000
222,912,868,000
Total assets
271,246,332,000
290,343,892,000
Equity and liabilities
Liabilities
Current liabilities
Trade and other current payables
35,846,673,000
33,673,040,000
Current tax liabilities, current
2,013,648,000
2,470,249,000
Other current financial liabilities
4,568,599,000
4,328,652,000
Current lease liabilities
1,277,754,000
1,257,766,000
Other current non-financial liabilities
0
0
Current provisions
Current provisions for employee benefits
0
0
Other current provisions
2,992,000
2,423,000
Total current provisions
2,992,000
2,423,000
Total current liabilities other than liabilities included in disposal groups classified as held for sale
43,709,666,000
41,732,130,000
Liabilities included in disposal groups classified as held for sale
0
432,812,000
Total current liabilities
43,709,666,000
42,164,942,000
Non-current liabilities
Trade and other non-current payables
2,588,580,000
2,459,157,000
Current tax liabilities, non-current
767,115,000
1,759,719,000





18 of 101

Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
Other non-current financial liabilities
123,395,251,000
120,791,259,000
Non-current lease liabilities
8,014,597,000
8,105,754,000
Other non-current non-financial liabilities
0
0
Non-current provisions
Non-current provisions for employee benefits
2,080,651,000
1,468,112,000
Other non-current provisions
965,128,000
917,483,000
Total non-current provisions
3,045,779,000
2,385,595,000
Deferred tax liabilities
1,786,311,000
7,052,233,000
Total non-current liabilities
139,597,633,000
142,553,717,000
Total liabilities
183,307,299,000
184,718,659,000
Equity
Issued capital
4,907,765,000
4,907,765,000
Share premium
15,889,819,000
15,889,819,000
Treasury shares
16,079,124,000
14,018,847,000
Retained earnings
84,280,397,000
82,652,278,000
Other reserves
(15,556,848,000)
1,320,451,000
Total equity attributable to owners of parent
73,442,009,000
90,751,466,000
Non-controlling interests
14,497,024,000
14,873,767,000
Total equity
87,939,033,000
105,625,233,000
Total equity and liabilities
271,246,332,000
290,343,892,000
19 of 101

[310000] Statement of comprehensive income, profit or loss, by function of expense
Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
Quarter Current Year
2020-10-01 - 2020-12-31
Quarter Previous Year
2019-10-01 - 2019-12-31
Profit or loss
Profit (loss)
Revenue
97,361,634,000
101,757,181,000
27,782,661,000
28,268,200,000
Cost of sales
56,989,655,000
59,067,362,000
15,438,815,000
17,041,420,000
Gross profit
40,371,979,000
42,689,819,000
12,343,846,000
11,226,780,000
Distribution costs
10,366,582,000
11,099,011,000
2,797,947,000
2,754,824,000
Administrative expenses
12,713,657,000
13,269,191,000
3,285,666,000
3,187,719,000
Other income
233,628,000
0
0
0
Other expense
0
1,316,587,000
423,733,000
455,321,000
Profit (loss) from operating activities
17,525,368,000
17,005,030,000
5,836,500,000
4,828,916,000
Finance income
4,227,192,000
2,464,403,000
6,359,286,000
1,719,016,000
Finance costs
10,482,168,000
11,275,198,000
4,127,391,000
3,117,045,000
Share of profit (loss) of associates and joint ventures accounted for using equity method
(5,739,668,000)
581,023,000
(408,807,000)
91,467,000
Profit (loss) before tax
5,530,724,000
8,775,258,000
7,659,588,000
3,522,354,000
Tax income (expense)
5,227,900,000
2,668,445,000
4,082,115,000
695,710,000
Profit (loss) from continuing operations
302,824,000
6,106,813,000
3,577,473,000
2,826,644,000
Profit (loss) from discontinued operations
0
0
0
0
Profit (loss)
302,824,000
6,106,813,000
3,577,473,000
2,826,644,000
Profit (loss), attributable to
Profit (loss), attributable to owners of parent
(1,250,342,000)
4,626,139,000
3,312,309,000
2,410,102,000
Profit (loss), attributable to non-controlling interests
1,553,166,000
1,480,674,000
265,164,000
416,542,000
Earnings per share
Earnings per share
Earnings per share
Basic earnings per share
Basic earnings (loss) per share from continuing operations
(0.44)
1.6
1.17
0.83
Basic earnings (loss) per share from discontinued operations
0
0
0
0
Total basic earnings (loss) per share
[3] (0.44)
1.6
1.17
0.83
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations
(0.41)
1.53
1.1
0.8
Diluted earnings (loss) per share from discontinued operations
0
0
0
0
Total diluted earnings (loss) per share
[4] (0.41)
1.53
1.1
0.8

20 of 101

[410000] Statement of comprehensive income, OCI components presented net of tax
Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
Quarter Current Year
2020-10-01 - 2020-12-31
Quarter Previous Year
2019-10-01 - 2019-12-31
Statement of comprehensive income
Profit (loss)
302,824,000
6,106,813,000
3,577,473,000
2,826,644,000
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
(16,142,728,000)
(614,735,000)
914,572,000
431,070,000
Other comprehensive income, net of tax, gains (losses) on revaluation
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on remeasurements of defined benefit plans
(241,019,000)
(175,376,000)
(241,019,000)
(175,376,000)
Other comprehensive income, net of tax, change in fair value of financial liability attributable to change in credit risk of liability
0
0
0
0
Other comprehensive income, net of tax, gains (losses) on hedging instruments that hedge investments in equity instruments
0
0
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
0
0
Total other comprehensive income that will not be reclassified to profit or loss, net of tax
(16,383,747,000)
(790,111,000)
673,553,000
255,694,000
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
541,743,000
(199,745,000)
(643,363,000)
(307,517,000)
Reclassification adjustments on exchange differences on translation, net of tax
0
0
0
0
Other comprehensive income, net of tax, exchange differences on translation
541,743,000
(199,745,000)
(643,363,000)
(307,517,000)
Available-for-sale financial assets
Gains (losses) on remeasuring available-for-sale financial assets, net of tax
0
0
0
0
Reclassification adjustments on available-for-sale financial assets, net of tax
0
0
0
0
Other comprehensive income, net of tax, available-for-sale financial assets
0
0
0
0
Cash flow hedges
Gains (losses) on cash flow hedges, net of tax
(959,101,000)
(1,065,338,000)
(344,950,000)
(64,133,000)
Reclassification adjustments on cash flow hedges, net of tax
0
0
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
0
0
Other comprehensive income, net of tax, cash flow hedges
(959,101,000)
(1,065,338,000)
(344,950,000)
(64,133,000)
Hedges of net investment in foreign operations
Gains (losses) on hedges of net investments in foreign operations, net of tax
0
0
0
0
Reclassification adjustments on hedges of net investments in foreign operations, net of tax
0
0
0
0
Other comprehensive income, net of tax, hedges of net investments in foreign operations
0
0
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
0
0
Reclassification adjustments on change in value of time value of options, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of time value of options
0
0
0
0
Change in value of forward elements of forward contracts


21 of 101
Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
Quarter Current Year
2020-10-01 - 2020-12-31
Quarter Previous Year
2019-10-01 - 2019-12-31
Gains (losses) on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Reclassification adjustments on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of forward elements of forward contracts
0
0
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
0
0
Reclassification adjustments on change in value of time value of options, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of time value of options
0
0
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
0
0
Reclassification adjustments on change in value of forward elements of forward contracts, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of forward elements of forward contracts
0
0
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
0
0
Reclassification adjustments on change in value of foreign currency basis spreads, net of tax
0
0
0
0
Other comprehensive income, net of tax, change in value of foreign currency basis spreads
0
0
0
0
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
78,000
0
690,000
Reclassification adjustments on financial assets measured at fair value through other comprehensive income, net of tax
0
0
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
0
0
Other comprehensive income, net of tax, financial assets measured at fair value through other comprehensive income
0
78,000
0
690,000
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
(61,033,000)
(236,159,000)
34,860,000
(39,207,000)
Total other comprehensive income that will be reclassified to profit or loss, net of tax
(478,391,000)
(1,501,164,000)
(953,453,000)
(410,167,000)
Total other comprehensive income
(16,862,138,000)
(2,291,275,000)
(279,900,000)
(154,473,000)
Total comprehensive income
(16,559,314,000)
3,815,538,000
3,297,573,000
2,672,171,000
Comprehensive income attributable to
Comprehensive income, attributable to owners of parent
(18,127,641,000)
2,356,623,000
3,141,503,000
2,297,584,000
Comprehensive income, attributable to non-controlling interests
1,568,327,000
1,458,915,000
156,070,000
374,587,000


22 of 101

[520000] Statement of cash flows, indirect method
Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
Statement of cash flows
Cash flows from (used in) operating activities
Profit (loss)
302,824,000
6,106,813,000
Adjustments to reconcile profit (loss)
+ Discontinued operations
0
0
+ Adjustments for income tax expense
5,227,900,000
2,668,445,000
+ (-) Adjustments for finance costs
0
0
+ Adjustments for depreciation and amortisation expense
21,260,787,000
21,008,796,000
+ Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss
40,803,000
67,574,000
+ Adjustments for provisions
2,513,254,000
1,764,832,000
+ (-) Adjustments for unrealised foreign exchange losses (gains)
(2,596,198,000)
(1,120,958,000)
+ Adjustments for share-based payments
984,356,000
1,129,644,000
+ (-) Adjustments for fair value losses (gains)
(89,323,000)
872,291,000
- Adjustments for undistributed profits of associates
0
0
+ (-) Adjustments for losses (gains) on disposal of non-current assets
(74,175,000)
270,381,000
+ Share of incomeof associatesand joint ventures
5,739,668,000
(581,023,000)
+ (-) Adjustments for decrease (increase) in inventories
(576,277,000)
2,504,369,000
+ (-) Adjustments for decrease (increase) in trade accounts receivable
634,108,000
4,785,389,000
+ (-) Adjustments for decrease (increase) in other operating receivables
(2,863,355,000)
(2,585,645,000)
+ (-) Adjustments for increase (decrease) in trade accounts payable
1,065,101,000
(1,885,865,000)
+ (-) Adjustments for increase (decrease) in other operating payables
415,203,000
(9,749,473,000)
+ Other adjustments for non-cash items
0
0
+ Other adjustments for which cash effects are investing or financing cash flow
(932,449,000)
(627,000)
+ Straight-line rent adjustment
0
0
+ Amortization of lease fees
0
0
+ Setting property values
0
0
+ (-) Other adjustments to reconcile profit (loss)
380,863,000
531,426,000
+ (-) Total adjustments to reconcile profit (loss)
31,130,266,000
19,679,556,000
Net cash flows from (used in) operations
31,433,090,000
25,786,369,000
- Dividends paid
0
0
+ Dividends received
0
0
- Interest paid
(10,482,168,000)
(10,402,021,000)
+ Interest received
(72,861,000)
(102,675,000)
+ (-) Income taxes refund (paid)
8,681,478,000
8,816,632,000
+ (-) Other inflows (outflows) of cash
0
0
Net cash flows from (used in) operating activities
33,160,919,000
27,269,083,000
Cash flows from (used in) investing activities
+ Cash flows from losing control of subsidiaries or other businesses
0
(25,741,000)
- Cash flows used in obtaining control of subsidiaries or other businesses
0
(107,883,000)
+ 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
1,520,417,000
981,503,000
- Purchase of property, plant and equipment
20,131,738,000
19,108,284,000
+ Proceeds from sales of intangible assets
0
0
- Purchase of intangible assets
1,235,177,000
2,106,750,000
+ Proceeds from sales of other long-term assets
0
0
- Purchase of other long-term assets
0
0



23 of 101

Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
+ 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
772,400,000
- Interest paid
0
0
+ Interest received
0
0
+(-) Income taxes refund (paid)
0
0
+ (-) Other inflows (outflows) of cash
4,498,139,000
1,856,225,000
Net cash flows from (used in) investing activities
(15,348,359,000)
(17,522,764,000)
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
1,324,063,000
1,294,375,000
+ Proceeds from issuing shares
0
0
+ Proceeds from issuing other equity instruments
0
0
- Payments to acquire or redeem entity's shares
392,597,000
1,385,750,000
- Payments of other equity instruments
0
0
+ Proceeds from borrowings
0
24,247,544,000
- Repayments of borrowings
3,242,489,000
21,989,156,000
- Payments of finance lease liabilities
668,277,000
559,623,000
- Payments of lease liabilities
953,771,000
883,533,000
+ Proceeds from government grants
0
0
- Dividends paid
0
1,066,187,000
- Interest paid
9,455,387,000
9,180,141,000
+ (-) Income taxes refund (paid)
0
0
+ (-) Other inflows (outflows) of cash
(158,632,000)
(2,190,675,000)
Net cash flows from (used in) financing activities
(16,195,216,000)
(14,301,896,000)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes
1,617,344,000
(4,555,577,000)
Effect of exchange rate changes on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
(11,516,000)
(60,449,000)
Net increase (decrease) in cash and cash equivalents
1,605,828,000
(4,616,026,000)
Cash and cash equivalents at beginning of period
27,452,265,000
32,068,291,000
Cash and cash equivalents at end of period
29,058,093,000
27,452,265,000

24 of 101

[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
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
(1,250,342,000)
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
523,786,000
(959,101,000)
0
0
Total comprehensive income
0
0
0
(1,250,342,000)
0
523,786,000
(959,101,000)
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
147,975,000
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
2,060,277,000
2,730,486,000
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
2,060,277,000
1,628,119,000
0
523,786,000
(959,101,000)
0
0
Equity at end 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


25 of 101
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
(16,142,728,000)
0
0
(238,223,000)
0
0
0
Total comprehensive income
0
0
(16,142,728,000)
0
0
(238,223,000)
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
(16,142,728,000)
0
0
(238,223,000)
0
0
0
Equity at end of period
0
0
(14,940,039,000)
0
0
(943,834,000)
0
0
0


26 of 101


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
(1,250,342,000)
1,553,166,000
302,824,000
Other comprehensive income
0
0
0
(61,033,000)
(16,877,299,000)
(16,877,299,000)
15,161,000
(16,862,138,000)
Total comprehensive income
0
0
0
(61,033,000)
(16,877,299,000)
(18,127,641,000)
1,568,327,000
(16,559,314,000)
Issue of equity
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
0
1,653,173,000
1,653,173,000
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
147,975,000
0
147,975,000
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
(291,897,000)
(291,897,000)
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
670,209,000
0
670,209,000
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
(61,033,000)
(16,877,299,000)
(17,309,457,000)
(376,743,000)
(17,686,200,000)
Equity at end of period
0
0
0
(136,448,000)
(15,556,848,000)
73,442,009,000
14,497,024,000
87,939,033,000

27 of 101
[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
14,219,060,000
78,731,909,000
0
1,461,495,000
683,585,000
0
0
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
4,626,139,000
0
0
0
0
0
Other comprehensive income
0
0
0
0
0
(180,954,000)
(1,065,338,000)
0
0
Total comprehensive income
0
0
0
4,626,139,000
0
(180,954,000)
(1,065,338,000)
0
0
Issue of equity
0
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
1,066,187,000
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
837,520,000
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
766,000
0
0
0
0
0
Increase (decrease) through share-based payment transactions, equity
0
0
(200,213,000)
(477,869,000)
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
(200,213,000)
3,920,369,000
0
(180,954,000)
(1,065,338,000)
0
0
Equity at end 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



28 of 101

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
2,654,866,000
0
0
(533,203,000)
0
0
0
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
0
0
0
0
0
0
Other comprehensive income
0
0
(614,657,000)
0
0
(172,408,000)
0
0
0
Total comprehensive income
0
0
(614,657,000)
0
0
(172,408,000)
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
(837,520,000)
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
(1,452,177,000)
0
0
(172,408,000)
0
0
0
Equity at end of period
0
0
1,202,689,000
0
0
(705,611,000)
0
0
0

29 of 101
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
160,744,000
4,427,487,000
89,737,920,000
15,013,771,000
104,751,691,000
Changes in equity
Comprehensive income
Profit (loss)
0
0
0
0
0
4,626,139,000
1,480,674,000
6,106,813,000
Other comprehensive income
0
0
0
(236,159,000)
(2,269,516,000)
(2,269,516,000)
(21,759,000)
(2,291,275,000)
Total comprehensive income
0
0
0
(236,159,000)
(2,269,516,000)
2,356,623,000
1,458,915,000
3,815,538,000
Issue of equity
0
0
0
0
0
0
0
0
Dividends recognised as distributions to owners
0
0
0
0
0
1,066,187,000
1,598,153,000
2,664,340,000
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
(837,520,000)
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
766,000
(766,000)
0
Increase (decrease) through share-based payment transactions, equity
0
0
0
0
0
(277,656,000)
0
(277,656,000)
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
(236,159,000)
(3,107,036,000)
1,013,546,000
(140,004,000)
873,542,000
Equity at end of period
0
0
0
(75,415,000)
1,320,451,000
90,751,466,000
14,873,767,000
105,625,233,000



30 of 101

[700000] Informative data about the Statement of financial position
Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
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
1,240,864,000
1,369,379,000
Number of executives
72
73
Number of employees
43,215
42,875
Number of workers
0
0
Outstanding shares
325,992,461,925
337,244,259,846
Repurchased shares
31,314,809,877
20,063,011,956
Restricted cash
0
0
Guaranteed debt of associated companies
0
0



31 of 101

[700002] Informative data about the Income statement
Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
Quarter Current Year
2020-10-01 - 2020-12-31
Quarter Previous Year
2019-10-01 - 2019-12-31
Informative data of the Income Statement
Operating depreciation and amortization
21,260,787,000
21,008,796,000
5,639,288,000
5,392,372,000



32 of 101

[700003] Informative data - Income statement for 12 months
Concept
Current Year
2020-01-01 - 2020-12-31
Previous Year
2019-01-01 - 2019-12-31
Informative data - Income Statement for 12 months
Revenue
97,361,634,000
101,757,181,000
Profit (loss) from operating activities
17,525,368,000
17,005,030,000
Profit (loss)
302,824,000
6,106,813,000
Profit (loss), attributable to owners of parent
(1,250,342,000)
4,626,139,000
Operating depreciation and amortization
21,260,787,000
21,008,796,000


33 of 101

[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
0
241,991,000
610,116,000
HSBC 2
NOT
2016-03-08
2023-03-08
7.13
250,000,000
625,000,000
SCOTIABANK INVERLAT 3
NOT
2016-03-08
2023-03-08
7
375,000,000
1,125,000,000
375,000,000
BANCO SANTANDER 4
NOT
2017-11-23
2022-11-22
TIIE+1.25
1,496,550,000
HSBC 5
NOT
2017-11-23
2022-10-21
TIIE+1.30
1,995,525,000
SCOTIABANK INVERLAT 6
NOT
2017-12-07
2023-02-03
TIIE+1.30
2,493,710,000
SINDICATE 7
NOT
2019-06-05
2024-06-28
TIIE+1.05
9,925,865,000
TOTAL
0
616,991,000
1,985,116,000
6,985,785,000
9,925,865,000
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
0
616,991,000
1,985,116,000
6,985,785,000
9,925,865,000
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
4,488,097,000
SENIOR NOTES 3
YES
2013-05-14
2043-05-14
7.62
6,446,909,000
NOTES 4
NOT
2017-10-09
2027-09-27
8.79
4,483,878,000
SENIOR NOTES 5
YES
2005-03-18
2025-03-18
6.97
11,806,765,000
SENIOR NOTES 6
YES
2002-03-11
2032-03-11
8.94
5,964,920,000
SENIOR NOTES 7
YES
2009-11-23
2040-01-16
6.97
11,849,095,000
SENIOR NOTES 8
YES
2014-05-13
2045-05-15
5.26
19,536,333,000
SENIOR NOTES 9
YES
2015-11-24
2026-01-30
4.86
5,960,366,000
SENIOR NOTES 10
YES
2015-11-24
2046-01-31
6.44
17,835,086,000
SENIOR NOTES 11
YES
2019-05-21
2049-05-24
5.52
14,667,765,000
TOTAL
0
0
0
0
0
15,418,884,000
0
0
0
0
0
87,620,330,000
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
15,418,884,000
0
0
0
0
0
[5] 87,620,330,000
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
Total other current and non-current liabilities with cost
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0





34 of 101
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
Suppliers
Suppliers
SUPPLIERS 1
NOT
2020-12-31
2021-12-31
16,013,178,000
3,492,857,000
TRANSMISSION RIGHTS 2
NOT
2012-05-07
2026-12-29
640,733,000
534,736,000
407,395,000
163,137,000
117,736,000
1,796,459,000
577,660,000
332,647,000
218,358,000
236,911,000
TOTAL
0
16,653,911,000
534,736,000
407,395,000
163,137,000
117,736,000
0
5,289,316,000
577,660,000
332,647,000
218,358,000
236,911,000
Total suppliers
TOTAL
0
16,653,911,000
534,736,000
407,395,000
163,137,000
117,736,000
0
5,289,316,000
577,660,000
332,647,000
218,358,000
236,911,000
Other current and non-current liabilities
Other current and non-current liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
2,016,952,000
1,278,330,000
180,941,000
TOTAL
0
2,016,952,000
1,278,330,000
180,941,000
0
0
0
0
0
0
0
0
Total other current and non-current liabilities
TOTAL
0
2,016,952,000
1,278,330,000
180,941,000
0
0
0
0
0
0
0
0
Total credits
TOTAL
0
19,287,854,000
3,798,182,000
7,574,121,000
10,089,002,000
15,536,620,000
0
5,289,316,000
577,660,000
332,647,000
218,358,000
87,857,241,000

35 of 101

[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
1,154,453,000
23,030,529,000
25,666,000
512,019,000
23,542,548,000
Non-current monetary assets
0
0
0
0
0
Total monetary assets
1,154,453,000
23,030,529,000
25,666,000
512,019,000
23,542,548,000
Liabilities position
Current liabilities
410,369,000
8,186,574,000
5,562,000
110,958,000
8,297,532,000
Non-current liabilities
4,750,640,000
94,771,943,000
0
0
94,771,943,000
Total liabilities
5,161,009,000
102,958,517,000
5,562,000
110,958,000
103,069,475,000
Net monetary assets (liabilities)
(4,006,556,000)
(79,927,988,000)
20,104,000
401,061,000
[6] (79,526,927,000)

36 of 101

[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
16,180,397,000
169,362,000
16,349,759,000
CONTENT - NETWORK SUBSCRIPTION REVENUE
4,322,535,000
1,143,657,000
0
5,466,192,000
CONTENT - LICENSING AND SYNDICATION
1,572,659,000
9,224,397,000
0
10,797,056,000
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
19,398,285,000
0
1,569,999,000
20,968,284,000
SKY - PAY PER VIEW
42,291,000
0
11,464,000
53,755,000
SKY - ADVERTISING
1,112,662,000
0
0
1,112,662,000
CABLE (INCLUDES LEASING OF SET-TOP EQUIPMENT):
CABLE (INCLUDES LEASING OF SET-TOP EQUIPMENT):
0
0
0
0
CABLEVISIÓN, CABLEMÁS, TVI, CABLECOM, IZZI, TELECABLE
CABLE - DIGITAL TV SERVICE
16,549,458,000
0
0
16,549,458,000
CABLE - BROADBAND SERVICES
16,540,687,000
0
0
16,540,687,000
CABLE - SERVICE INSTALLATION
437,939,000
0
0
437,939,000
CABLE - ADVERTISING
1,633,201,000
0
0
1,633,201,000
CABLE - TELEPHONY
4,382,964,000
0
0
4,382,964,000
CABLE - OTHER INCOME
264,084,000
0
0
264,084,000
BESTEL, METRORED
CABLE - ENTERPRISE OPERATIONS
5,245,443,000
0
313,332,000
5,558,775,000
OTHER BUSINESSES:
OTHER BUSINESSES:
0
0
0
0
TV Y NOVELAS, MUY INTERESANTE JUNIOR, VANIDADES, COCINA FACIL, NATIONAL GEOGRAPHIC, MUY INTERESANTE, COSMOPOLITAN,TÚ
PUBLISHING - MAGAZINE CIRCULATION
268,344,000
0
942,000
269,286,000
PUBLISHING - ADVERTISING
173,645,000
0
0
173,645,000
PUBLISHING - OTHER INCOME
1,424,000
0
0
1,424,000
VIDEOCINE, PANTELION
DISTRIBUTION, RENTALS AND SALE OF MOVIE RIGHTS
915,165,000
0
117,864,000
1,033,029,000
CLUB DE FÚTBOL AMÉRICA, ESTADIO AZTECA
SPECIAL EVENTS AND SHOW PROMOTION
1,382,708,000
146,324,000
0
1,529,032,000
PLAY CITY
GAMING
959,985,000
0
0
959,985,000
TELEVISA RADIO
RADIO - ADVERTISING (DISPOSED OPERATIONS)
223,272,000
0
0
223,272,000
SELECCIONES,ALGARABIA, VOGUE MEXICO,CARTOON NETWORK, GUÍA DE BIENESTAR SELECCIONES, RELATOS E HISTORIAS DE MEXICO
PUBLISHING DISTRIBUTION
309,673,000
0
0
309,673,000
INTERSEGMENT ELIMINATIONS
INTERSEGMENT ELIMINATIONS
(7,252,528,000)
0
0
(7,252,528,000)
TOTAL
84,664,293,000
10,683,740,000
2,013,601,000
97,361,634,000



37 of 101

[800007] Annex - Financial derivative 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 fourth quarter of 2020, 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 December 31, 2020, 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.
38 of 101

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 October to December 2020, 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.
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Management discussion about internal and external sources of liquidity that could be used for attending requirements related to financial derivative 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.
1.
During the relevant quarter, forwards through which the Company hedged against a possible Mexican Peso depreciation with a notional amount of U.S. $28,600,000.00 (Twenty eight million six hundred thousand U.S. Dollars 00/100), expired. As a result of this hedge, a profit of MXN $37,810,190.00 (Thirty seven million eight hundred ten thousand one hundred and ninety Mexican pesos 00/100) 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. $6,000,000.00 (Six million U.S. Dollars 00/100), expired. As a result of this hedge, a profit of MXN $7,978,800.00(Seven million nine hundred seventy eight thousand eight hundred Mexican pesos 00/100) was incurred in the quarter.

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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. $6,750,000.00 (Six million seven hundred fifty thousand U.S. Dollars 00/100), expired. As a result of this hedge, a profit of MXN $8,950,500.00 (Eight million nine hundred fifty thousand five hundred Mexican pesos 00/100) was incurred in the quarter.
4.
During the relevant quarter the coverage done through IRS of Grupo Televisa, S.A.B. with expiration on March 28, 2022, which protected a notional amount of MXN $5,385,347,200.00 (Five billion three hundred eighty five million three hundred forty seven thousand two hundred Mexican Pesos 00/100) was canceled in advance. As a result of this MXN $0.00 was incurred (Zero Mexican pesos 00/100).

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.
TABLE 1
GRUPO TELEVISA, S.A.B.
Summary of Financial Derivative Instruments as of
December 31, 2020
(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%
(109,146)
(112,662)
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%
(86,171)
(88,117)
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%
(180,941)
(184,711)
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 / 7.3873%
(762,827)
(549,827)
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 / 6.0738%
(204,250)
(355,450)
Monthly interest
2021-2022
Does not exist (7)
Forward (1)
Hedging
U.S.$285,813/ Ps.6,460,489
U.S.$285,813/ Ps.6,460,489
U.S.$218,688/ Ps.5,041,246
(636,032)
(75,943)
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
(78,731)
31,946
Semi-annual interest
2021
Does not exist (7)
Forward (1)
Hedging
U.S.$284,898 / Ps.6,382,343
U.S.$284,898 / Ps.6,382,343
U.S.$ 245,852/ Ps.5,477,345
(547,943)
116,185
2021-2022
Does not exist (7)
Forward (1)
Hedging
U.S.$60,000 / Ps.1,373,434
U.S.$60,000 / Ps.1,373,434
U.S.$60,000 / Ps.1,373,434
(158,344)
(12,716)
2021
Does not exist (7)





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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 (2)
Hedging
Ps.122,400
TIIE 28 days / 5.585%
TIIE 28 days / 5.508%
(1,759)
(1,809)
Monthly Interest
2021-2022
Does not exist (7)
Interest Rate Swap (2)
Hedging
Ps.730,493
TIIE 28 days / 7.2663%
TIIE 28 days / 7.2663%
(23,784)
(27,176)
Monthly Interest
2021-2022
Does not exist (7)
Forward (2)
Hedging
U.S.$ 88,353 / Ps.1,984,144
U.S.$ 88,353 / Ps.1,984,144
U.S.$ 79,802 / Ps.1,788,318
(176,868)
30,522
2021-2022
Does not exist (7)
Forward (3)
Hedging
U.S.$ 96,789/ Ps.2,169,066
U.S.$ 96,789/ Ps.2,169,066
U.S.$ 87,396/ Ps.1,955,226
(190,726)
34,769
2021-2022
Does not exist (7)
Forward (4)
Hedging
U.S.$90,000 / Ps.2,057,198
U.S.$90,000 / Ps.2,057,198
U.S.$75,000 / Ps.1,733,197
(224,301)
(29,228)
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
(94,400)
16,182
2021
Does not exist (7)
Total
(3,476,223)
(1,208,035)



(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 December 31, 2020, is as follows:

Other financial liabilities
Ps.
(2,016,952)
Other non-current financial liabilities
(1,459,271)
Ps.
(3,476,223)
(6)
Information as of September 30, 2020.
(7)
Applies only to implicit financing in the ISDA ancillary agreements identified as 'Credit Support Annex'.




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

Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
Subclassifications of assets, liabilities and equities
Cash and cash equivalents
Cash
Cash on hand
1,081,511,000
93,445,000
Balances with banks
4,013,099,000
1,665,084,000
Total cash
5,094,610,000
1,758,529,000
Cash equivalents
Short-term deposits, classified as cash equivalents
23,963,483,000
25,693,736,000
Short-term investments, classified as cash equivalents
0
0
Other banking arrangements, classified as cash equivalents
0
0
Total cash equivalents
23,963,483,000
25,693,736,000
Other cash and cash equivalents
0
0
Total cash and cash equivalents
29,058,093,000
27,452,265,000
Trade and other current receivables
Current trade receivables
12,343,797,000
14,486,184,000
Current receivables due from related parties
786,952,000
814,427,000
Current prepayments
Current advances to suppliers
0
0
Current prepaid expenses
3,175,011,000
2,130,521,000
Total current prepayments
3,175,011,000
2,130,521,000
Current receivables from taxes other than income tax
6,829,294,000
6,527,449,000
Current value added tax receivables
6,783,231,000
6,406,301,000
Current receivables from sale of properties
0
0
Current receivables from rental of properties
0
0
Other current receivables
2,177,887,000
1,532,579,000
Total trade and other current receivables
25,312,941,000
25,491,160,000
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
1,641,300,000
1,151,421,000
Total current inventories
1,641,300,000
1,151,421,000
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
1,675,426,000
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
1,675,426,000
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


44 of 101

Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
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
719,195,000
763,639,000
Investments in associates
22,094,336,000
8,998,793,000
Total investments in subsidiaries, joint ventures and associates
22,813,531,000
9,762,432,000
Property, plant and equipment
Land and buildings
Land
4,886,600,000
4,891,094,000
Buildings
4,692,553,000
4,546,036,000
Total land and buildings
9,579,153,000
9,437,130,000
Machinery
56,068,343,000
54,987,042,000
Vehicles
Ships
0
0
Aircraft
515,630,000
521,241,000
Motor vehicles
575,336,000
674,077,000
Total vehicles
1,090,966,000
1,195,318,000
Fixtures and fittings
545,329,000
554,786,000
Office equipment
2,092,070,000
2,316,042,000
Tangible exploration and evaluation assets
0
0
Mining assets
0
0
Oil and gas assets
0
0
Construction in progress
12,873,670,000
13,714,368,000
Construction prepayments
0
0
Other property, plant and equipment
1,032,096,000
1,124,546,000
Total property, plant and equipment
83,281,627,000
83,329,232,000
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
291,024,000
403,954,000
Intangible exploration and evaluation assets
0
0
Mastheads and publishing titles
0
0
Computer software
4,692,574,000
4,015,219,000
Licences and franchises
0
0
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
23,626,994,000
24,796,155,000
Total intangible assets other than goodwill
28,610,592,000
29,215,328,000
Goodwill
14,113,626,000
14,113,626,000
Total intangible assets and goodwill
42,724,218,000
43,328,954,000
Trade and other current payables
Current trade payables
21,943,227,000
20,909,655,000
Current payables to related parties
83,007,000
644,251,000
Accruals and deferred income classified as current


45 of 101

Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
Deferred income classified as current
5,935,858,000
5,779,758,000
Rent deferred income classified as current
0
0
Accruals classified as current
3,421,245,000
2,891,367,000
Short-term employee benefits accruals
1,262,627,000
911,935,000
Total accruals and deferred income classified as current
9,357,103,000
8,671,125,000
Current payables on social security and taxes other than income tax
3,955,859,000
3,074,736,000
Current value added tax payables
2,984,239,000
2,223,598,000
Current retention payables
507,477,000
373,273,000
Other current payables
0
0
Total trade and other current payables
35,846,673,000
33,673,040,000
Other current financial liabilities
Bank loans current
616,991,000
491,951,000
Stock market loans current
0
0
Other current liabilities at cost
0
1,324,063,000
Other current liabilities at no cost
2,016,952,000
568,775,000
Other current financial liabilities
1,934,656,000
1,943,863,000
Total Other current financial liabilities
4,568,599,000
4,328,652,000
Trade and other non-current payables
Non-current trade payables
2,588,580,000
2,459,157,000
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
2,588,580,000
2,459,157,000
Other non-current financial liabilities
Bank loans non-current
18,896,766,000
22,235,924,000
Stock market loans non-current
103,039,214,000
98,208,820,000
Other non-current liabilities at cost
0
0
Other non-current liabilities at no cost
1,459,271,000
346,515,000
Other non-current financial liabilities
0
0
Total Other non-current financial liabilities
123,395,251,000
120,791,259,000
Other provisions
Other non-current provisions
965,128,000
917,483,000
Other current provisions
2,992,000
2,423,000
Total other provisions
968,120,000
919,906,000
Other reserves
Revaluation surplus
0
0
Reserve of exchange differences on translation
1,804,327,000
1,280,541,000
Reserve of cash flow hedges
(1,340,854,000)
(381,753,000)
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
(14,940,039,000)
1,202,689,000
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)
(705,611,000)




46 of 101



Concept
Close Current Quarter
2020-12-31
Close Previous Exercise
2019-12-31
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
(136,448,000)
(75,415,000)
Total other reserves
(15,556,848,000)
1,320,451,000
Net assets (liabilities)
Assets
271,246,332,000
290,343,892,000
Liabilities
183,307,299,000
184,718,659,000
Net assets (liabilities)
87,939,033,000
105,625,233,000
Net current assets (liabilities)
Current assets
69,061,075,000
67,431,024,000
Current liabilities
43,709,666,000
42,164,942,000
Net current assets (liabilities)
25,351,409,000
25,266,082,000



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[800200] Notes - Analysis of income and expense


Concept
Accumulated Current Year
2020-01-01 - 2020-12-31
Accumulated Previous Year
2019-01-01 - 2019-12-31
Quarter Current Year
2020-10-01 - 2020-12-31
Quarter Previous Year
2019-10-01 - 2019-12-31
Analysis of income and expense
Revenue
Revenue from rendering of services
71,745,105,000
75,988,820,000
21,010,967,000
21,363,761,000
Revenue from sale of goods
805,690,000
932,198,000
191,521,000
248,985,000
Interest income
0
0
0
0
Royalty income
9,907,313,000
10,005,977,000
2,730,154,000
2,872,560,000
Dividend income
0
0
0
0
Rental income
14,903,526,000
14,830,186,000
3,850,019,000
3,782,894,000
Revenue from construction contracts
0
0
0
0
Other revenue
0
0
0
0
Total revenue
97,361,634,000
101,757,181,000
27,782,661,000
28,268,200,000
Finance income
Interest income
1,132,935,000
1,529,112,000
181,947,000
318,290,000
Net gain on foreign exchange
3,004,934,000
935,291,000
6,177,339,000
1,400,726,000
Gains on change in fair value of derivatives
89,323,000
0
0
0
Gain on change in fair value of financial instruments
0
0
0
0
Other finance income
0
0
0
0
Total finance income
4,227,192,000
2,464,403,000
6,359,286,000
1,719,016,000
Finance costs
Interest expense
10,482,168,000
10,402,021,000
2,280,028,000
2,557,493,000
Net loss on foreign exchange
0
0
0
0
Losses on change in fair value of derivatives
0
872,291,000
1,847,363,000
558,666,000
Loss on change in fair value of financial instruments
0
886,000
0
886,000
Other finance cost
0
0
0
0
Total finance costs
10,482,168,000
11,275,198,000
4,127,391,000
3,117,045,000
Tax income (expense)
Current tax
6,802,510,000
5,267,157,000
2,194,183,000
1,460,738,000
Deferred tax
(1,574,610,000)
(2,598,712,000)
1,887,932,000
(765,028,000)
Total tax income (expense)
5,227,900,000
2,668,445,000
4,082,115,000
695,710,000



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[800500] Notes - List of notes



Disclosure of notes and other explanatory information

See Notes 1 and 2 of the Disclosure of interim financial reporting.


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 December 31, 2020 and December 31, 2019, and for the twelve months ended December 31, 2020 and 2019, 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 December 31, 2020. The adoption of the improvements and amendments to current IFRSs effective on January 1, 2020 did not have a significant impact in these interim un audited condensed consolidated financial statements.

Disclosure of significant accounting policies
Accounting Policies

The consolidated financial statements of the BMV, for the years ended December 31, 2020 and 2019, have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

(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.

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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.
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

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Subsidiaries
Company's
Ownership
Interest (1)
Business
Segment (2)
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.
(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').
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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).
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.

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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.
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 (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 (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).
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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.
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).

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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.

(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 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:

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.


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(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.

(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.
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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.

(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.

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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.

(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