| Schedule of debt and lease liabilities outstanding |
| | | | | | | | | | | | | | | | | | | | | | | 2024 | | | | 2023 | | | | | | | | | Finance | | Principal, Net | | Effective | | Interest | | Principal, Net | | | U.S. Dollars | | Principal | | Costs | | of Finance Costs | | Interest Rate | | Payable | | of Finance Costs | U.S. dollar Senior Notes: | | | | | | | | | | | | | | | | | | | | | 6.625% Senior Notes due 2025 (1) | | U.S.$ | 219,438 | | Ps. | 4,579,474 | | Ps. | (22,524) | | Ps. | 4,556,950 | | 7.60 | % | Ps. | 75,847 | | Ps. | 3,654,554 | 4.625% Senior Notes due 2026 (1) | | | 207,420 | | | 4,328,669 | | | (5,147) | | | 4,323,522 | | 5.03 | % | | 100,100 | | | 3,504,921 | 8.5% Senior Notes due 2032 (1) | | | 300,000 | | | 6,260,730 | | | (34,468) | | | 6,226,262 | | 9.00 | % | | 162,605 | | | 5,042,597 | 6.625% Senior Notes due 2040 (1) | | | 600,000 | | | 12,521,460 | | | (141,613) | | | 12,379,847 | | 7.05 | % | | 377,905 | | | 10,012,592 | 5% Senior Notes due 2045 (1) | | | 790,610 | | | 16,499,319 | | | (453,662) | | | 16,045,657 | | 5.39 | % | | 119,162 | | | 12,915,265 | 6.125% Senior Notes due 2046 (1) | | | 879,572 | | | 18,355,876 | | | (126,566) | | | 18,229,310 | | 6.47 | % | | 562,149 | | | 14,763,351 | 5.250% Senior Notes due 2049 (1) | | | 660,928 | | | 13,792,972 | | | (315,577) | | | 13,477,395 | | 5.59 | % | | 72,413 | | | 10,871,373 | Total U.S. dollar debt | | | 3,657,968 | | | 76,338,500 | | | (1,099,557) | | | 75,238,943 | | | | | 1,470,181 | | | 60,764,653 | | | | | | | | | | | | | | | | | | | | | | Mexican peso debt: | | | | | | | | | | | | | | | | | | | | | 8.79% Notes due 2027 (2) | | | — | | | 4,500,000 | | | (8,825) | | | 4,491,175 | | 8.84 | % | | 101,085 | | | 4,488,372 | 8.49% Senior Notes due 2037 (1) | | | — | | | 4,500,000 | | | (15,550) | | | 4,484,450 | | 8.94 | % | | 44,572 | | | 4,483,755 | 7.25% Senior Notes due 2043 (1) | | | — | | | 6,225,690 | | | (63,283) | | | 6,162,407 | | 7.92 | % | | 36,360 | | | 6,161,147 | Bank loans (3) | | | — | | | 10,000,000 | | | (71,802) | | | 9,928,198 | | 11.69 | % | | — | | | 9,987,932 | Bank loans (Sky) (4) | | | — | | | 2,650,000 | | | — | | | 2,650,000 | | 12.46 | % | | 22,346 | | | 2,650,000 | Total Mexican peso debt | | | — | | | 27,875,690 | | | (159,460) | | | 27,716,230 | | | | | 204,363 | | | 27,771,206 | Total debt (5) | | | 3,657,968 | | | 104,214,190 | | | (1,259,017) | | | 102,955,173 | | | | | 1,674,544 | | | 88,535,859 | Less: Current portion of long-term debt | | | 219,438 | | | 4,579,474 | | | (22,524) | | | 4,556,950 | | | | | 1,674,544 | | | 9,987,932 | Long-term debt, net of current portion | | U.S.$ | 3,438,530 | | Ps. | 99,634,716 | | Ps. | (1,236,493) | | Ps. | 98,398,223 | | | | Ps. | — | | Ps. | 78,547,927 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2024 | | 2023 | Lease liabilities: | | | | | | | | | | | | | | | | | | | | | Satellite transponder lease agreement (6) | | | | | | | | | | | | | | | | Ps. | 1,866,747 | | Ps. | 1,994,437 | Telecommunications network lease agreement (7) | | | | | | | | | | | | | | | | | 538,356 | | | 573,761 | Other lease liabilities (8) | | | | | | | | | | | | | | | | | 2,981,536 | | | 4,723,352 | Total lease liabilities | | | | | | | | | | | | | | | | | 5,386,639 | | | 7,291,550 | Less: Current portion | | | | | | | | | | | | | | | | | 1,242,957 | | | 1,280,932 | Lease liabilities, net of current portion | | | | | | | | | | | | | | | | Ps. | 4,143,682 | | Ps. | 6,010,618 |
| (1) | The Senior Notes due between 2025 and 2049, in the aggregate outstanding principal amount of U.S.$3,658 million as of December 31, 2024 and 2023, and Ps.10,725,690, as of December 31, 2024 and 2023, are unsecured obligations of the Company, rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness of the Company, and are junior in right of payment to all of the existing and future liabilities of the Company’s subsidiaries. Interest rate on the Senior Notes due 2025, 2026, 2032, 2037, 2040, 2043, 2045, 2046, and 2049 including additional amounts payable in respect of certain Mexican withholding taxes, is 6.97%, 4.86%, 8.94%, 8.93%, 6.97%, 7.62%, 5.26%, 6.44% and 5.52% per annum, respectively, and is payable semi-annually. These Senior Notes may not be redeemed prior to maturity, except: (i) in the event of certain changes in law affecting the Mexican withholding tax treatment of certain payments on the securities, in which case the securities will be redeemable, in whole or in part, at the option of the Company; and (ii) in the event of a change of control, in which case the Company may be required to redeem the securities at 101% of their principal amount. Also, the Company may, at its own option, redeem the Senior Notes due 2025, 2026, 2037, 2040, 2043, 2046 and 2049, in whole or in part, at any time at a redemption price equal to the greater of the principal amount of these Senior Notes or the present value of future cash flows, at the redemption date, of principal and interest amounts of the Senior Notes discounted at a fixed rate of comparable U.S. or Mexican sovereign bonds. The Senior Notes due 2026, 2032, 2040, 2043, 2045, 2046 and 2049 were priced at 99.385%, 99.431%, 98.319%, 99.733%, 96.534%, 99.677% and 98.588%, respectively, for a yield to maturity of 4.70%, 8.553%, 6.755%, 7.27%, 5.227%, 6.147% and 5.345%, respectively. The Senior Notes due 2025 were issued in two aggregate principal amounts of U.S.$400 million and U.S.$200 million, and were priced at 98.081% and 98.632%, respectively, for a yield to maturity of 6.802% and 6.787%, respectively. The terms of these Senior Notes contain covenants that limit the ability of the Company and certain restricted subsidiaries to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations, and similar transactions. The Senior Notes due 2025, 2026, 2032, 2037, 2040, 2045, 2046 and 2049, are registered with the U.S. Securities and Exchange Commission (“SEC”). The Senior Notes due 2043 are registered with both the SEC and the Mexican Banking and Securities Commission (Comisión Nacional Bancaria y de Valores or “CNBV”). In the first, second and third quarters of 2023, the Company repurchased a portion of its outstanding Senior Notes due 2043 in the aggregate principal amount of Ps.274,310 and recognized a gain on extinguishment of debt in the amount of Ps.98,692, which was recognized in finance expense, net, in the Group’s consolidated statement of income for the year ended December 31, 2023. In August 2023, the Company concluded tender offers to purchase for cash a portion of its Senior Notes due 2025, 2026, 2045, 2046 and 2049, in the principal amount of U.S.$47.0 million, U.S.$92.6 million, U.S.$98.7 million, U.S.$20.4 million and U.S.$41.3 million, respectively, for an aggregate principal amount of U.S.$300.0 million. The Company paid for these tender offers cash in the aggregate amount of U.S.$274.9 million (Ps.4,718,251), plus related premiums of U.S.$6.2 million (Ps.106,505) and recognized a gain on extinguishment of debt in the amount of U.S.$18.9 million (Ps.324,512), which was recognized in finance expense, net, in the Group’s consolidated statement of income for the year ended December 31, 2023. In the second and third quarter of 2023, the Company repurchased a portion of its outstanding Senior Notes due 2043 in the aggregate principal amount of Ps.274,310, the Company paid for this repurchase an aggregate cash amount of Ps.174,785, plus related accrued interest of Ps.6,946, and recognized a gain on extinguishment of debt in the amount of Ps.92,579, which was recognized in finance expense, net, in the Group’s consolidated statement of income for the year ended December 31, 2023 (see Note 23). |
| (2) | In 2017, the Company issued Notes (“Certificados Bursátiles”) due 2027, through the BMV in the aggregate principal amount of Ps.4,500,000, with interest payable semi-annually at an annual rate of 8.79%. The Company may, at its own option, redeem the Notes due 2027, in whole or in part, at any semi-annual interest payment date at a redemption price equal to the greater of the principal amount of the outstanding Notes and the present value of future cash flows, at the redemption date, of principal and interest amounts of the Notes discounted at a fixed rate of comparable Mexican sovereign bonds. The terms of the Notes due 2027 contain covenants that limit the ability of the Company and certain restricted subsidiaries appointed by the Company’s Board of Directors, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations, and similar transactions. |
| (3) | In July 2019, the Company entered into a credit agreement for a five-year term loan with a syndicate of banks in the aggregate principal amount of Ps.10,000,000, with interest payable on a monthly basis at a floating rate based on a spread of 105 or 130 basis points over the 28-day TIIE rate depending on the Group’s net leverage ratio.In April 2024, the Company and two of its subsidiaries in the Group’s Cable segment (i) executed a credit agreement with a syndicate of banks (the “Credit Agreement”) for a five - year term loan in a principal amount of Ps.10,000,000, and a five - year revolving credit facility in the amount in Mexican pesos equivalent to U.S.$500 million; and (ii) terminated an unused revolving credit facility entered into 2022 with a syndicate of banks for up to an amount equivalent to U.S.$650 million, with an original maturity in 2025. The loans under the Credit Agreement bear interest at a floating rate based on a spread of 125 bps or 150 bps over the 28 - day TIIE rate depending on the Group’s leverage ratio. The Credit Agreement requires the maintenance of financial ratios related to indebtedness and interest expense. In April 2024, the Group used the proceeds of the term loan under the Credit Agreement to prepay in full amounts outstanding under the credit agreement entered into by the Company in 2019 with a syndicate of banks in the principal amount of Ps.10,000,000, with an original maturity in June 2024. |
| (4) | In December 2021, Sky entered into long-term credit agreement with a Mexican Bank in the aggregate principal amount of Ps.2,650,000, with interest payable on a monthly basis and maturity in December 2026, which included a Ps.1,325,000 loan with an annual interest rate of 8.215%, and a Ps.1,325,000 loan with an annual interest rate of 28-day TIIE plus 90 basis points. The funds from these loans were used for general corporate purposes, including the prepayment of Sky´s indebtedness. Under the terms of this credit agreement, Sky is required to: (a) maintain certain financial coverage ratios related to indebtedness and interest expense; and (b) comply with a restrictive covenant on spin-offs, mergers, and similar transactions. In March 2023, upon the maturity of loans with two Mexican banks, Sky repaid the remaining portions of these loans in the aggregate principal amount of Ps.1,000,000 with (i) available cash on hand in the amount of Ps.600,000 and (ii) funds from a revolving credit facility in the principal amount of Ps.400,000, plus interest payable on a monthly basis at the annual interest rate of TIIE plus 0.85%, with a maturity in 2028. In December 2023, Sky prepaid all of the used funds under its revolving credit facility plus unpaid accrued interest in the aggregate amount of Ps.403,981. |
| (5) | Principal amount of total debt as of December 31, 2023, is presented net of unamortized finance costs, in the aggregate amount of Ps.1,278,374. |
| (6) | In March 2010, Sky entered into a lease agreement with Intelsat Global Sales & Marketing Ltd. (“Intelsat”) by which Sky is obligated to pay at an annual interest rate of 7.30%, a monthly fee of U.S.$3.0 million through 2027 for satellite signal reception and retransmission service from 24 KU-band transponders on satellite IS-21, which became operational in October 2012. The service term for IS-21 will end at the earlier of: (a) the end of 15 years; or (b) the date IS-21 is taken out of service (see Note 12). |
| (7) | A subsidiary of the Company entered into a lease agreement with GTAC for the right to use certain capacity of a telecommunications network through 2030 (see Note 20). |
| (8) | Other lease liabilities recognized in accordance with IFRS 16 Leases, in the aggregate amount of Ps.2,981,536 and Ps.4,723,352, as of December 31, 2024 and 2023, respectively. These lease liabilities have terms which will expire at various dates between 2025 and 2051. |
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