Grupo Televisa SAB (TV) 2008 Q3 法說會逐字稿

Good morning, everyone, and welcome to Grupo Televisa's third quarter 2008 conference call.

Before we begin, I would like to draw your attention to page 8 of the press release, which explains the use of forward-looking statements and applies to everything we discuss in today's call and in the earnings release.

I will now turn the call over to Mr. Alfonso de Angoitia, executive vice president of Grupo Televisa. Please go ahead, sir.

Thank you, Pam. Good morning. We are pleased that you have joined us for this discussion of Grupo Televisa's third quarter 2008 results.

With me today are Jose Baston, president of television and content, and Salvi Folch, our chief financial officer.

I will take you through the highlights of our financial results for the quarter. After that, Pepe will discuss the operating results of our television segment. Then we will be happy to take your questions.

Televisa delivered strong results during the third quarter. Consolidated sales increased 21% to MXN12.5 billion. Operating segment income increased 14% to MXN5.3 billion, and we achieved a 41.3 margin.

Our television broadcasting sales increased 6.1% to MXN5.6 billion, driven by record ratings, primarily in our telenovela and by sales associated with our broadcast of the summer Olympic games.

Operating segment income increased 4% to MXN2.8 billion and we achieved a 50.3% margin. This was driven by sales growth, which was partially offset by increasing costs and expenses related to summer Olympic games.

Our pay television networks business also delivered positive results. Sales increased 14.3% to MXN535 million. Operating segment income increased 11.7% to MXN335 million, and we achieved a 62.7% margin.

This growth resulted from higher sales to pay television platforms in Mexico, Latin America and Spain, as well as by an increase in advertising sales.

Our pay television channels reached more than 20 million subscribers in 49 countries in Latin America, the United States, Canada, Europe and Australia.

Sales in our programming export business decreased 5.1% to MXN552 million and operating segment income fell 15.3% to MXN238 million. This decrease was driven primarily by a negative translation effect on foreign currency the nominated sales in the amount of MXN24 million.

This was partially offset by a 4.2% increase in royalties from Univision, which amounted to $37.3 million in the quarter.

Sales in our publishing business grew 11.1% to MXN901 million. This growth resulted from an increase in sales from magazine advertising and circulation abroad, driven primarily by the consolidation of Editorial Atlantida.

This increase was partially offset by a decrease in circulation sales in Mexico and by a negative translation effect on foreign currency of the nominated sales that amounted to MXN12.9 million.

Operating segment income increased 0.9% to MXN160 million, driven by sales growth, which was partially offset by an increase in paper and printing costs and operating expenses.

Sky continued to grow at a strong pace during the third quarter, adding 33,000 subscribers and bringing its total subscriber base to 1,728,000. During the third quarter, our subscriber base in Central America and the Dominican Republic reached 87,000.

We launched operations in Panama in August and we expect to launch operations in El Salvador and Honduras in the first half of 2009.

Compared with last year's third quarter, sales increased 12.2% to MXN2.3 billion. Operating segment income grew 14% to MXN1.1 billion, and the margin was 48.8%.

In our cable and telecom segment, sales increased 229% to MXN2 billion and operating segment income increased 209% to MXN675 million. This growth resulted from the consolidation of Cablemas and Bestel and by Cablevision, which continued to grow at an outstanding pace during the third quarter.

Cablevision closed the quarter with 808,000 RGUs, 43,000 of which were added during the quarter. Compared with last year's third quarter, Cablevision's sales grew 23%. Operating segment income increased 46% and the margin was 43%.

Cablemas added 29,000 RGUs during the quarter. Compared with last year's third quarter, Cablemas sales grew 17%. Operating segment income increased 13% and the margin was 35%.

Bestel generated sales of MXN448 million and a 18% margin. We remain very enthusiastic about the prospects of the cable and telecom industry and will continue to work hard to fulfill the growth potential of this business.

Moving now on to the outlook for the year. Given the uncertain economic outlook for the fourth quarter, we are reaffirming our guidance. Therefore, we continue to expect television broadcasting full-year sales and operating segment income to grow by approximately 4.5%, in nominal terms.

Before I turn the call over to Pepe, I want to comment on the crisis in the global markets and what it means for Televisa. The global economic crisis that is currently unfolding will inevitably have an impact on the Mexican economy.

The potential impact of this slowdown on our business is difficult to forecast, as it will depend on a number of factors, most of which are not within our control. We are confident, however, that Televisa is well positioned to deal with the current crisis.

First of all, we own a large portfolio of media assets, with leading positions in television broadcasting, DPH, cable and telecom, and publishing. We estimate that our operations will generate close to MXN10 billion of free cash flow in 2008.

Second, our programs, pay television channels and magazines are sold in many countries around the world. As a result, we expect to generate dollars in nominated sales of approximately $500 million in '08.

Therefore, we generate a significant part of the dollars we need to cover our dollar- denominated costs and expenses.

Third, over the last couple of years, we have diversified our company. In 2000, our television broadcasting business generated 91% of our consolidated EBITDA compared to 54% this quarter.

We expect this diversification trend to continue in the years to come, as Sky, our cable and telecom platforms and our gaming businesses grow and contribute a larger percentage of our company's results.

Fourth, we have followed conservative risk and liability management strategies. As a result, we have one of the strongest balance sheets in the media industry worldwide.

The average maturity of our debt is 13.5 years and we have no significant debt maturities in the next three years.

In addition, we have eliminated most of the foreign exchange risk of our coupon payments for next year and a significant percentage of our cash balance of MXN34.2 billion is invested in dollars. This investment acts as a natural hedge against our dollar- denominated debt.

Finally, we have a solid track record of discipline when it comes to spending and investing. We believe this approach will continue to help us weather the uncertain economic environment in the coming months and beyond.

In summer, we faced this crisis with outstanding assets, a strong balance sheet, and, above all, a firm commitment to continue generating value for our shareholders.

I am happy to report that Jose Baston has been appointed president of Television and Content. He will continue to upgrade all our television businesses and content production and acquisitions.

Congratulations, Pepe.

Thank you for your attention. Now, I will turn the call over to Pepe.

Thank you, Alfonso. And good morning to everyone and thank you for joining us today.

Our television content delivered outstanding results and extraordinary ratings in this third quarter. Televisa aired 76 of the top 100 ran programs and 23 of the top 25 in Mexico during the third quarter.

Channel 2 continued to deliver programs that entertain our audiences and please our advertisers. The core of this channel's programming is Telenovelas, which achieved outstanding ratings.

Our 9 p.m. novela, [por un Las Family], achieved both record ratings and audience shares. The performance of our novela drove Channel 2's weekday primetime audience share to 38% during the quarter.

Our quality control processes continue to contribute to the success of our telenovelas.

We continue to develop new products, into diversifying and expanding our audience, reaching the demographics most attractive to advertisers, while providing us with multiple exhibition windows.

In late September, we launched three new series, one of which premiered in cable before its broadcast season. In addition, our Sunday reality shows, in particular, the [series] continue to achieve excellent audience shares and ratings.

We have been able to generate commercially attractive concepts, concepts where advertisers find important opportunities for product integration.

On September 28, we announced that we have entered into an agreement with Telemundo Communications Group, under which Telemundo has now begun broadcasting in the United States all of the soccer matches played at the home teams of six of Mexico's premier soccer teams.

We are pleased with the agreement, which is producing very favorable results.

We continue to diversify the sources of revenue for our international strategy. Besides exporting our finished products to several countries, we are currently exploring new co-production of women and alliances with local producers in several attractive markets.

This will enable us to participate in the growth of the advertising price of relevant markets.

In China, for example, we are collaborating with producer Nesound to broadcast on Hunan Satellite, the Chinese production of our hit show, La Fea mas Bella.

The program was launched on Sunday, September 28, with terrific success, reaching more than 11 million viewers each night and representing the second most rated program in the household demographic.

Hunan Satellite finished airing the first season with two episodes per day, seven days a week, during primetime from 10 to 12 midnight. This program represents a strong entrance for Televisa into a very attractive market.

In Brazil, we have entered into a five-year agreement with TV Record, Brazil's second largest television network, to co-produce a telenovela for the primetime slot.

With this agreement, we are strengthening our position in high-growth markets, therefore expanding the reach of our content across both traditional and new media platforms.

Our pay television business continued to deliver strong results. Our results continue to be driven by advertising and network sales in Mexico and Latin America.

In the third quarter, television networks operating on segment income margin was 62.7%.

In the third quarter, we launched on Sky, two BBC-branded entertainment channels, BBC Entertainment and CBeebies, a channel for preschoolers.

Television network is assembling and distributing these two channels in Mexico and Latin America, and receives a royalty on subscription fees generated by the channels.

This is an important step towards our goal of diversifying our channel offering with complementary genre in order to expand our reach and serve every demographic that clients look for.

I want to reiterate our commitment to producing exciting new content and formats and to integrating and cross-promoting all of our business segments to extract maximum value from our content, from concept to realization and beyond.

Thank you very much for your attention. And now we are ready for your questions.

Thank you. (Operator Instructions)

Your first question is coming from Gustavo Oliveira of Citigroup. Please go ahead.

Hello. Good morning. My first question is on the cable TV business. I want to know if you are seeing any positive impact or any positive development from the adoption of number portability in Mexico.

Yes. We have seen a positive impact, although it's slow and it's small, because we started offering telephony some months ago. So it's a new business for the cable companies.

We have 4,650 telephony customers that have migrated to Cablevision.

Do you expect this to accelerate going forward? How are you planning for this?

Well, yes. As the business grows and telephony grows for the cable companies, I assume that the migration will increase.

Okay. The second question on the cable TV business is about your margins. You still have declining margins on a quarter-over-quarter basis.

If I recall from the last conference call, I think your guidance was that you could achieve low 40s. Is it still on track for the low 40s margins and if so, when do you think you could achieve these kind of margins in that business?

I think that is because of the consolidation of Bestel and, also, because of the launching of the telephony service on the part of Cablevision.

So we expect to maintain the margins similar to the ones that you are seeing.

At least maintain during 2009. That would be the best scenario?

That is correct. In the case of Cablemas, as you might know, Gustavo, they go after a different target than Sky and Cablevision in Mexico City. So their RPUs are lower.

Okay. And my last question is on the TV broadcast business. Do you think you could provide us an update on the [Pra] negotiations and what is your sentiment right now that the negotiations are probably beginning?

I'm sorry. The negotiations with --

For the (inaudible) deposits, yes.

No. It's too early to say. I mean, we're just starting those negotiations for next year. So we could not predict at this point what will happen.

Okay. Thank you.

Thanks.

Thank you. Your next question is coming from Michael Kopelman with Merrill Lynch. Please go ahead.

Thank you. Good morning, Alfonso, Pepe, Salvi. Two questions for you.

First of all, Alfonso, I appreciate the comments you made on the balance sheet positioning. I was wondering, just on a follow-up basis, do you guys have any FX derivatives exposure, first of all?

And second of all, on the U.S. dollar cost, how well do they match with your revenues? You said you expected $500 million in revenue this year in U.S. dollars. Do you have a similar number on the cost side?

And then second of all, I was hoping you could give us some sense on capital allocation. You obviously have a pretty large cash balance right now. I'm wondering, as you look out at the valuations in the region and you look at your own stock price, what are you thinking about how you'll deploy that capital going forward?

Thanks.

Great, Mike. This gives us an opportunity to talk about the derivatives contracts that we have.

First of all, I'd like to point out that we have no speculative derivatives contracts. All of them have to do with our operations and mostly with our debt.

We have basically three types of transactions. The first one is in connection with our senior notes due in 2011, '25 and '32. There we entered into a coupon swap to hedge against peso depreciation on interest payments until the end of '09.

We also entered into option contracts that allow our counterparties to extend the maturity of those coupon swaps for one more year. So that would go until year 2010.

Second, then, in connection with Sky's peso variable rate bank loans, which are due in 2016, we entered into an interest rate swap agreement to fix the coupon payments until maturity at an interest rate of 8.415%. So that would have to do with Sky bank loans.

And third, in connection with Cablevision and Cablemas, variable rate loan, denominated in U.S. dollars and due 2012, we entered into cross-currency swap agreements to fix the principal amount in pesos at MXN10.82 per dollar and at a fixed rate of 8.39%.

And then, finally, in connection with Cablemas -- this is the senior note due in 2015. Cablemas entered into a derivatives transaction to hedge against peso depreciation on interest and principal payments for the life of the senior notes.

So those are the only derivative transactions that we have entered into. There's no speculation of any sort. They all have to do with our debt and all of them are, fortunately, positive.

As to the foreign exchange risk, our FX, as I mentioned, exposure is limited. From our balance sheet perspective, as of September 30, our currency asset position amounted to $2.5 billion and our foreign currency liabilities amounted to $2.7 billion.

As a result, we had an FX exposure of only $200 million in our balance sheet.

However, through derivatives, we have hedged $450 million of debt, as I explained before, and, therefore, even though, from the accounting perspective, we have a foreign exchange exposure, the one I mentioned of $200 million, from an economic standpoint, considering that the derivatives, we have a favorable foreign exchange exposure of $250 million.

That's from the balance sheet perspective.

From the operating perspective, in '08, we expect to generate dollar-denominated sales of approximately $500 million and we have expected to incur dollar-denominated costs and expenses of approximately $700 million.

So as a result, we have an annual foreign exchange exposure of $200 million in our operations.

In addition, approximately 67% of our annual CapEx is denominated in dollars, especially equipment and setup boxes for cable -- for the cable companies and Sky.

Okay. Great.

Then as to your last point, Mike, which had to do with capital allocation, as we have always said, we like to have a strong balance sheet and a liquid position.

We would love to entertain opportunities. We believe that in this environment, there will be a lot of opportunities for strong companies, such as Televisa.

And as to the stock price and repurchases, we will, as of today, continue our stock buyback program and we are planning to do - I mean, to intensify that program and to buy more stock.

Okay. Great. If I can just ask one follow-up question on the capital allocation.

Do you see yourself as being more likely to look aggressively outside of Mexico, perhaps in the region, given where valuations are or do you see yourself mostly focused in Mexico in terms of acquisitions? Any thoughts on that?

I will say both in Mexico and outside of Mexico.

All right. Thank you very much.

Thank you, Mike.

Thank you. Your next question is coming from Miguel Garcia with Deutsche Bank. Please go ahead.

Thank you. My question is regarding the 2009 expectations in broadcasting. I understand there is a lot of uncertainty and probably, you won't give a hard number.

But could you give us your view, if there is real slowdown in the Mexican economy and under a scenario where the GDP growth is zero, would you expect the broadcasting business to grow a little bit over that or could it be even below that type of GDP growth?

So that is the first question.

And the second is regarding an announcement that you guys did a while ago, showing some interest in auctions in Colombia Broadcasting, for licenses to broadcast television.

I wanted to know if there is any update on that, if you guys are still interested.

Thank you.

To 2009, it's very difficult to predict. As we mentioned before, we are just beginning the negotiations with clients for the upfront.

So it's very difficult to say. Of course, in the event of a recession in Mexico, we are going to experience volatility and to experience a tough environment, but it's too soon to tell what is going to happen.

And as to Colombia, we're still exploring that possibility. It's only a possibility. So I'm not clear as to the precise dates of the auction for the new channel, but we're looking into that.

Okay. But my question wasn't so much about what the revenue is going to be next year. It's whether you expect to grow more or less than GDP, basically.

I would not like to make a prediction at this point. What I can say is that we feel very confident in all our products, especially in the ratings that we have had in the recent past and, also, considering the programming that Pepe has planned for '09.

We feel extremely confident that we're going to have the best sales that we can have.

Okay. Thank you.

Thank you. Your next question is coming from Jessica Reif Cohen with Merrill Lynch. Please go ahead.

Thank you. Alfonso, I wanted to ask you about Univision, of course.

With the trial pushed back again, how likely do you think it is that it will actually start in January? I was hoping that, given the current environment, could you tell us, have your views changed at all about a potential appeal?

And then a separate question is in response to Mike's question, it sounds like you're pretty focused on a buyback. I was just hoping that you could comment on your view of possibly increasing the dividends. Investors are looking for some returns in the market that seems to go down every day.

Hi, Jessica. As to Univision, as you mentioned, the court in California continued the date for the trial between us and Univision from October 14 to January 6, following an application for continuance by Univision, which we opposed.

However, it was continued until January 6. We anticipate the trial to commence as scheduled on January 6, and there are no discussions or negotiations ongoing with Univision.

So we are not presently engaged in any discussion or negotiation with them to settle the lawsuit or to invest in Univision.

As to the dividends, we would have to wait until the next quarter, until the first quarter of next year, when the shareholders meeting meets to determine what we're going to do in terms of dividends.

If we don't find attractive opportunities going forward, we would think about increasing the dividend, but that would depend on the economic environment and we would make that decision on the first quarter of next year.

Thank you.

Thank you. Your next question is coming from Vera Rossi with Morgan Stanley. Please go ahead.

Thank you. I just have a follow-up question on the upfront season. You have been recently trying to anticipate your negotiations of the '09 upfront season by guaranteeing a lower price or offering a lower price for the fourth quarter, like the advertisers that are running out of spot sales -- I'm sorry -- advance deposits for '08. So you have been trying to anticipate that negotiation. Have you been successful with that, with these negotiations by offering a price of advance sales in the fourth quarter?

As Alfonso has been saying, we are right in the process of the negotiations of the upfront for 2009 and it is not -- I mean, we are not going to comment on that, because we don't think it's a very positive move for our company to speak anything about the negotiations at this time.

I see. And your prices upfront versus the spot, the difference is still at 20%?

Like I said, it differs a lot from client to client, but we are not going to comment any on that.

On average. Okay.

On an average basis, it's definitely going to grow.

I'm sorry. Can you say it one more time?

Your question is based on upfront against spot?

Yes. The difference in prices, on average.

Definitely, the difference in prices will be close to 20%.

Okay. And I have another question on Univision. In a scenario that, for any reason, Univision cannot pay the royalties to Televisa, how long it takes until Televisa can break the PLL because of this reason, the case Univision cannot pay Televisa for any reason, financial constraint, or what your contract presents?

Well, the program license agreement is absolutely clear that one other process by which we can terminate that agreement is if Univision were unable to pay the royalty, which is obvious in the case of any royalty agreement.

So, of course, not paying the royalty is a material breach of that contract. And I don't know how much time it will take, but, of course, it's an obvious situation where there would be a material breach.

Okay. Is that a possibility someone can follow-up, how much time it is between they stop paying and Televisa has the right to break the agreement?

Yes. We'll review the agreement, Vera, and follow-up with you.

Okay. Thank you.

Thank you. Your next question is coming from Andrew Campbell with Credit Suisse. Please go ahead.

Good morning. I was just hoping to revisit the EBITDA margins again, because on a consolidated basis, we did see a pretty significant decline year-on-year.

And in terms of in television broadcasting, I know you had the expenses related to covering the Olympics. Does that explain most of the decline that we saw in broadcasting? Is there anything structural that could explain why margins should start to go down on a year-on-year basis?

And then related to that, the other businesses segment also showed a larger EBITDA loss than it's shown in recent quarters. And I was wondering if there was any specific explanation for that, as well.

I think as to the consolidated margin, it has to do with the consolidation of companies that have a lower margin than the consolidated margin we had before.

As to television broadcasting, in this particular quarter, it had to do with the cost of the production and transmission of the Olympic games, although we believe that the television broadcasting margin was a pretty good one. Beyond 50%, I would say, in this environment, is very good.

Okay. And then the other businesses?

The other businesses -- since we have a collection of businesses, it has to do -- for example, it has to do with reduction of the distribution margins, of the distribution profit in the movie distribution company.

It had to do with a reduction or a larger negative contribution by the soccer segment, by the soccer teams, and it has to do with Internet. It had to do with a reduction in the SMS business.

So we can go into a further detailed discussion, if you want, after the call. But it had to do mostly with those businesses.

Okay. Understood. And if I could just ask one follow-up.

We've seen that the net ads at Sky were a bit weaker than they had been in previous quarters. And I was wondering if you feel that we're starting to see a slowdown in that business or does that reflect a bit of a shift in strategy towards favoring the cable platform over Sky or if there's an particular explanation for that.

No. There has been absolutely no shift in strategy of that sort. What I can tell you is that if you look at Sky's results in the previous years, the third quarter is always the slowest.

So that's the reason, basically. It's cyclical.

Okay. Understood. Thank you.

Thank you. Your next question is coming from Anthony DiClemente with Barclays Capital. Please go ahead.

Hi. Thank you for taking the question.

I was just interested, Alfonso, Pepe, in some historical context around prior peso revaluations. I think you were very clear in terms of the balance sheet and, also, the translation exposures.

But I just wonder, fundamentally, for the consumer, where the products and services of Mexico become more expensive. Does that historically have a disproportionate impact on perhaps consumer spending and then advertising in Mexico?

In your experience, how does it typically play out for advertising sellers?

Thanks.

Yes, Anthony, there is an effect, of course, because of all the goods that Mexico imports and the consumption of those goods.

So there is an effect on the price of those goods and the amount of those goods being consumed, and, also, the advertising, this is a global crisis rather than a Mexican crisis.

Of course, all the transnational companies which are part of our largest clients are suffering the crisis in their headquarters, and, of course, that will affect everyone.

Right. So I guess, bringing it back to present, it seems like, right now, the scatter market is -- the spot scatter market is hang in there.

I remember you said the upfront was up 0.9% for this year and that your guidance at 4.5% would require that the spot -- correct me if I'm wrong -- but would require that the spot market actually perform pretty strongly through the middle and then the end of '08, and you're affirming your full-year guidance.

So I can only assume that the spot market is hanging in there at least okay for now. So I guess the question around that would be, historically, how much does the spot market then tend to correlate with the upfront that you're negotiating right now?

I'm just trying to get some historical context around it.

Of course, in this environment, the spot market sales are more difficult than the ones that we have sold upfront, because we have the money.

In the case of Televisa, when we sell upfront, we receive the money up -- that means that we receive the money. We get the cash upfront and then the clients spend it.

So that's a great hedge, also, in an environment such as this one.

But, of course, it's much harder in the case of a recession to sell in the spot market. But we believe that we're more worried about '09 than about the last quarter of this year.

Right. Understood. So can you at least tell us right now, in terms of -- at the time right now, what is spot or scatter market pricing above the upfront from last October in terms of pricing versus the prior upfront pricing?

Can you share that with us? Is it the typical 20% to 25% premium or how much less of a premium is it at this time, given what's going on in the environment?

Yes. It's around that percentage that you mentioned.

Oh, it is. Okay. I understand. So I guess, in summary, you're still getting spot pricing at 20%, 25% above upfront pricing, even despite the environment around us.

I'm just trying to --

Anthony, that is, of course, the list prices. Right?

Got you. Understood. So that's the pricing and what you're saying is that you might not be fully sold out on -- go ahead.

Then you enter into particular negotiations with each client and depending on the situation, you price it. But it's priced on the 20% to 25% increase in the prices according to the lists that have been issued.

But then it depends on the particular negotiations that are ongoing and will have to do with next year and with the last quarter of this year.

Got it. That's very helpful. Thank you very much.

Thank you.

Thank you. Your final question is coming from David Joyce with Miller Taback. Please go ahead.

Thank you. Could you please describe late quarter trends and maybe into October in terms of the cable and satellite subscribers?

Has there been any slowing in uptake of the new products? And also, along those lines, has the current market conditions slowed any expansion plans throughout Latin America?

Well, we haven't seen that in the first days of October, David, a slowdown in cable and Sky. However, I'm not predicting that that is going to be the case for next year.

We are feeling it -- of course, it's more difficult for Sky and the cable companies to collect and that we're seeing. However, the pickup of subscribers -- I mean, that trend has not -- we haven't seen a slowdown yet.

However, I would not predict that -- I could not say what is going to happen going forward.

Then as to Central America, as we mentioned, we are operating now in Panama. We are operating in the Dominican Republic. We are going to start operations in El Salvador and Honduras in the first half of '09.

Okay. And on the Bestel side, what can you talk about in terms of penetration growth there? What can you talk about the kind of marketplace that you can still expand into?

Well, I think that there are a lot of markets, business-to-business markets that we can approach and penetrate in Bestel. Of course, the main business that Bestel has is long distance business and, also, interconnection of different telecos in our country.

However, we can expand basically in the B-to-B business.

And finally, a question on Telemundo. Clearly, you've been increasing your various partnerships with Telemundo in Mexico and in the U.S., which is an obvious negative for your relationship with Univision.

But do you see -- is there a potential scenario where you could be working with both Telemundo and Univision?

Well, as we speak, we are working with both companies. We have the program license agreement with Univision, which goes until year 2017, unless something happens in the lawsuit.

However, we have expanded our relationship with Telemundo, as you know. Those deals that we have done with Telemundo, both on the broadcasting side of their programming and, also, on the Internet side, those deals are for Mexico exclusively.

Great. Thank you.

Thank you.

Thank you. This concludes our question and answer session for today's conference call. I would now like to turn the call over to Mr. Alfonso de Angoitia for any closing or additional comments.

Well, thank you very much for listening and please give us a call if you have any additional questions.

Thank you. This concludes today's Grupo Televisa third quarter 2008 earnings conference call. You may now disconnect your lines, and have a pleasant day.