Grupo Televisa(US:TV)2025-04-30 20:26Financial Instruments and Risk Management - The company has entered into financial instruments to hedge against Peso depreciation and reduce exposure to inflation and high interest rates [522]. Financial Reporting Standards - The consolidated financial information for the years ended December 31, 2024, 2023, and 2022 was prepared in accordance with IFRS Accounting Standards [523]. - Management does not expect the new IFRS pronouncements effective from January 1, 2025, to have a material impact on consolidated financial statements [524]. - Amendments to IAS 21 regarding currency exchangeability will require consistent assessment and disclosures starting January 1, 2025 [528]. - The company is assessing the impact of adopting IFRS 18, which introduces new requirements for income statement presentation, effective January 1, 2027 [531]. Financial Performance - The company reported a net increase in cash and cash equivalents of Ps.14,303.7 million for the year ended December 31, 2024, compared to a net decrease of Ps.18,544.6 million in 2023 [557][561]. - Net cash provided by operating activities for the year ended December 31, 2024, amounted to Ps.32,554.1 million, with significant adjustments including depreciation and amortization of Ps.20,542.3 million and interest expense of Ps.7,984.8 million [558]. - Net cash used in investing activities for the year ended December 31, 2024, was Ps.9,009.7 million, primarily for investments in property, plant, and equipment totaling Ps.9,097.4 million [559]. - Net cash used in financing activities for the year ended December 31, 2024, amounted to Ps.9,389.0 million, mainly for interest payments of Ps.7,417.9 million and long-term loan payments of Ps.10,000.0 million [560]. Capital Expenditures - The company expects to make aggregate capital expenditures for property, plant, and equipment totaling approximately U.S.$665.0 million, primarily for the expansion and improvement of its Cable and Sky segments [566]. - The company made aggregate capital expenditures for property, plant, and equipment totaling approximately U.S.$493.0 million in 2024, with U.S.$399.2 million for the Cable segment and U.S.$83.3 million for the Sky segment [565]. Impairment and Goodwill - Impairment adjustments for goodwill and intangible assets were recorded in the Sky and Cable segments during 2024 [539]. - The impairment test for goodwill involves comparing the estimated fair value of reporting units to their carrying amounts, utilizing significant unobservable inputs (Level 3) within the fair value hierarchy [554]. - The company recorded an impairment loss for long-lived assets for the year ended December 31, 2024 [540]. Debt and Financing - As of December 31, 2024, the consolidated long-term debt amounted to Ps.98,398.2 million, an increase from Ps.78,547.9 million as of December 31, 2023 [578]. - The total debt as of December 31, 2024, was Ps.102,955.2 million, with a current portion of long-term debt of Ps.4,557.0 million [584]. - The company entered into a credit agreement on April 9, 2024, for a five-year term loan of Ps.10,000 million and a revolving credit facility of U.S.$500 million [581]. - The effective interest rates for various senior notes range from 5.03% to 9.00%, with total U.S. dollar debt amounting to Ps.75,238.9 million [584]. - The company prepaid a credit facility in December 2023, totaling Ps.404 million, which included accrued interest [580]. - The company has a revolving credit facility of Ps.1,000 million maturing in 2028, which was unused as of December 31, 2024 [580]. - The company utilized part of the proceeds from the new credit agreement to refinance existing indebtedness, including a 2019 credit agreement scheduled to mature in 2024 [583]. - The company is required to maintain certain financial ratios related to indebtedness and interest expense under the new credit agreement [581]. - The Company has outstanding Senior Notes totaling U.S.$3,658 million and Ps.10,725,690, with interest rates ranging from 4.86% to 8.94% depending on the maturity year [587]. - Interest expense for the year ended December 31, 2024, was Ps.7,975.6 million, a decrease from Ps.7,742.1 million in 2023 and Ps.9,529.2 million in 2022 [589]. Contractual Obligations - As of December 31, 2024, total contractual obligations amount to U.S.$5,422,495, with significant payments due in the next 12 months totaling U.S.$359,237 [595]. - Total contractual obligations amount to U.S.$4,775,247 thousand, with U.S.$384,274 thousand due in less than 12 months [597]. - Interest on debt is projected at U.S.$4,185,003 thousand, with U.S.$260,117 thousand due within the next 12 months [597]. - Transmission rights obligations total U.S.$460,656 thousand, with U.S.$67,020 thousand due in less than 12 months [597]. - Capital expenditures commitments stand at U.S.$25,733 thousand, all due within the next 12 months [597]. - Satellite transponder commitments are U.S.$18,438 thousand, with U.S.$5,823 thousand due in less than 12 months [597]. - Committed financing to GTAC is U.S.$3,399 thousand, all due within the next 12 months [599]. - Interest on lease liabilities totals U.S.$82,018 thousand, with U.S.$22,182 thousand due in less than 12 months [597]. - Future interest payments on outstanding debt are estimated based on contractual interest rates and exchange rates as of December 31, 2024 [597]. Financial Health and Liquidity - The company anticipates generating sufficient cash to satisfy its long-term liquidity needs, relying on a combination of cash on hand, operating revenues, and borrowings [556]. - The company’s derivative portfolio is entirely over-the-counter and classified in Level 2, with valuations adjusted for liquidity and credit spreads based on available market evidence [552]. - The Company has lease liabilities recognized under IFRS 16 totaling Ps.2,981,536 as of December 31, 2024 [594]. - The Company’s interest payable in U.S. Dollars for 2024 was U.S.$240.0 million, translating to a Peso equivalent of Ps.4,368.8 million [590]. - The Company’s financial agreements include covenants that limit the ability to incur additional indebtedness and perform certain transactions [587].