Grupo Televisa, S.A.B. — FY2023 Form 20-F Summary
Reporting period: Year ended December 31, 2023. This is an annual report, not a standalone Q4 filing. Financial statements are audited and prepared under IFRS Accounting Standards; amounts below are Mexican pesos (Ps.) unless stated otherwise.
Business context
Televisa’s continuing operations were reported in Cable, Sky and Other Businesses. The 2022 TelevisaUnivision transaction transferred the former Content business; Televisa retained an equity-method investment in TelevisaUnivision and continued to provide content and other services under contractual arrangements. The spin-off of certain Other Businesses to Ollamani occurred in January 2024, after the reporting date, so those businesses remained in FY2023 continuing operations.
Key financial metrics
| Metric | FY2023 | FY2022 | Change / context |
|---|---|---|---|
| Revenue | Ps.73.77bn | Ps.75.53bn | Down 2.3% |
| Operating income | Ps.2.66bn | Ps.4.42bn | Down 39.9%; operating margin 3.6%, versus 5.9% |
| Net income (loss) from continuing operations | Ps.(8.81)bn | Ps.(10.94)bn | Loss narrowed by Ps.2.13bn |
| Net income (loss) attributable to Televisa shareholders | Ps.(8.42)bn | Ps.44.71bn | Prior-year result included a large gain from the TelevisaUnivision transaction |
| Net finance expense | Ps.4.70bn | Ps.9.21bn | Down 49.0%, reflecting lower debt, higher interest income and lower FX losses |
| Cash from operating activities | Ps.15.20bn | Ps.12.47bn | Up Ps.2.73bn |
| Cash and cash equivalents at year-end | Ps.32.59bn | Ps.51.13bn | Down Ps.18.54bn |
| Capital expenditures | Ps.14.71bn | Ps.17.32bn | FY2023 actual was also reported as approximately U.S.$828.5m, using transaction-date exchange rates |
| Debt, carrying amount before interest payable | Ps.88.54bn | Ps.105.24bn | Includes Ps.9.99bn current and Ps.78.55bn long-term debt in 2023; current debt rose from Ps.1.00bn |
| Lease liabilities | Ps.7.29bn | Ps.8.37bn | Separate from debt above |
| Current assets / current liabilities | Ps.62.10bn / Ps.34.89bn | Ps.81.58bn / Ps.34.37bn | Cash declined materially while current liabilities were broadly stable |
Operating cash flow less property, plant and equipment spending was approximately Ps.0.49bn; this simple comparison excludes other investing cash flows. Financing activities used Ps.17.75bn, including interest, debt prepayments, lease payments, dividends and share repurchases.
Segment performance and changes
- Cable: Revenue rose 0.8% to Ps.48.80bn; segment operating income before corporate expenses and depreciation fell 5.9% to Ps.18.73bn, with a 38.4% margin versus 41.1%. Management cited higher maintenance, lease, broadband and signal costs. Cable RGUs declined to 15.40m from 15.92m, mainly from video and broadband losses.
- Sky: Revenue fell 13.5% to Ps.17.59bn and segment operating income fell 10.7% to Ps.5.73bn, with a 32.6% margin. Sky ended the year with 5.57m video RGUs versus 6.26m and 515,000 broadband RGUs versus 640,000.
- Other Businesses: Revenue increased 7.2% to Ps.7.87bn and segment operating income increased 15.5% to Ps.1.95bn. The reported segment included businesses subsequently spun off to Ollamani.
- FY2023’s Ps.8.42bn shareholder-attributable loss contrasts with FY2022’s Ps.44.71bn profit largely because FY2022 included Ps.56.22bn of net income from discontinued operations associated with the TelevisaUnivision transaction.
Outlook, risks and unusual items
- Management expects approximately U.S.$790m of 2024 capital expenditures, including about U.S.$630m for Cable and U.S.$145m for Sky. It expects to fund investment through operations, cash, equity and/or borrowing, and intends to continue investing in Cable and Sky while maintaining financial discipline.
- In April 2024, Televisa announced an agreement to acquire AT&T’s remaining interest in Sky, making Televisa its 100% owner. The transaction is subject to regulatory approvals; payment is expected in 2027 and 2028. The filing also describes a new Ps.10bn five-year term loan and U.S.$500m revolving facility entered into in April 2024, used in part to refinance the 2019 loan.
- FY2023 income tax expense was Ps.2.68bn, versus a Ps.1.23bn benefit in FY2022. The company attributed the change mainly to a tax-authority assessment affecting certain tax-loss carryforwards and write-offs of deferred tax assets. Realizability of capital tax-loss carryforwards was a critical audit matter.
- Other expense included Ps.1.03bn of severance expense, Ps.330m related to Hurricane Otis and Ps.69m of long-lived-asset impairment adjustments. The company reported no goodwill or indefinite-lived intangible-asset impairment in 2023; its share of TelevisaUnivision’s loss included that investee’s goodwill and intangible-asset impairment.
- The U.S. securities class action was settled and finally approved in 2023. The total settlement was U.S.$95m; Televisa’s stated share was approximately U.S.$21.5m, with the balance funded under insurance policies. Other tax and legal proceedings remain pending; the filing says no provision was recorded for the described tax contingencies and management could not predict their outcomes.
- Key risks include competition and subscriber losses, reliance on TelevisaUnivision for content, Mexican regulatory and concession requirements, peso/U.S. dollar movements, interest rates, cybersecurity and satellite-transmission interruption. The company reported a U.S.$2.61bn net U.S. dollar monetary liability position at year-end, while some debt was designated as a hedge of investments.
- Stockholders approved a Ps.0.35-per-CPO dividend in April 2024. Televisa repurchased 69.7m CPOs for Ps.1.20bn during 2023. The independent auditor gave an unqualified opinion on the financial statements and internal control over financial reporting.
Important facts for investors to verify
- Confirm the distinction between the FY2023 annual figures and any separate Q4 results; this filing does not provide a standalone quarterly financial summary.
- Review the audited financial statements and debt note for the upcoming Ps.10bn debt maturity, debt carrying values, interest payable, lease liabilities and covenant terms.
- Assess whether Cable and Sky can stabilize subscriber counts and margins, particularly Sky’s continuing video and broadband RGU declines.
- Verify the assumptions supporting deferred tax assets and capital tax-loss carryforwards, and monitor the tax assessments and other pending legal matters.
- Track regulatory approval and financing terms for the proposed Sky acquisition, and the post-reporting-period Ollamani spin-off’s effect on the continuing business mix.