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Financial Risk Management

12 Months Ended

Dec. 31, 2025

4.	Financial Risk Management

(a) Market Risk

Market risk is the exposure to an adverse change in the value of financial instruments caused by market factors including changes in equity prices, interest rates, foreign currency exchange rates, commodity prices and inflation rates.

The Group is exposed to market risks arising from changes in equity prices, interest rates, foreign currency exchange rates and inflation rates, in both the Mexican and U.S. markets. Market risk management activities are monitored by the Investments, Risk Management and Treasury Committee on a quarterly basis.

(i) Foreign Exchange Risk

The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the U.S. dollar and in those subsidiaries with functional currency other than the Mexican peso. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.

Foreign currency exchange risk is monitored by assessing the net monetary liability position in U.S. dollars and the forecasted cash flow needs for anticipated U.S. dollar investments and servicing the Group’s U.S. dollar-denominated debt.

Management has set up a policy to require Group companies to manage their foreign exchange risk against their functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use forward contracts. In compliance with the procedures and controls established by the Risk Management Committee, in 2025 and 2024, the Group entered into certain derivative transactions with certain financial institutions in order to manage its exposure to market risks resulting from changes in interest rates and foreign currency exchange rates. The objective in managing foreign currency fluctuations is to reduce earnings and cash flow volatility.

Foreign Currency Position

The foreign currency position of monetary items of the Group at December 31, 2025, was as follows:


		Foreign
		Currency
		Amounts		Year-End
		(Thousands)		Exchange Rate			Mexican Pesos
Assets:
U.S. dollars		1,646,412		Ps.	18.0165		Ps.	29,662,582
Euros		3,255			21.1459			68,830
Swiss francs		4,514			22.7147			102,534
Other currencies		—			—			9

Liabilities:
U.S. dollars ⁽¹⁾		3,779,613		Ps.	18.0165		Ps.	68,095,398
Euros		29,470			21.1459			623,170
Swiss francs		4,326			22.7147			98,264
Other currencies		—			—			919

The foreign currency position of monetary items of the Group at December 31, 2024, was as follows:


		Foreign
		Currency
		Amounts		Year-End
		(Thousands)		Exchange Rate			Mexican Pesos
Assets:
U.S. dollars		1,318,668		Ps.	20.8691		Ps.	27,519,414
Euros		32,919			21.6510			712,729
Swiss francs		219			23.0485			5,048
Other currencies		—			—			15

Liabilities:
U.S. dollars ⁽¹⁾		3,942,186		Ps.	20.8691		Ps.	82,269,874
Euros		3,626			21.6510			78,507
Swiss francs		41			23.0485			945
Other currencies		—			—			80

(1)	As of December 31, 2025 and 2024, monetary liabilities include U.S.$2,304.1 million (Ps.41,511,522) and U.S.$2,108.7 million (Ps.44,005,755), respectively, related to long-term debt designated as a hedging instrument of the Group’s investments in TelevisaUnivision and Open-Ended Fund (see Note 14).

As of March 27, 2026, the exchange rate was Ps.18.1311 per U.S. dollar, which represents the interbank free market exchange rate on that date as reported by Banco Citi México S.A.

The Group is subject to the risk of foreign currency exchange rate fluctuations, resulting primarily from the net monetary position in U.S. dollars and U.S. dollar equivalent amounts of the Group’s Mexican operations, as follows (in millions of U.S. dollars):


		December 31,
		2025			2024
U.S. dollar-denominated and U.S. dollar-equivalent monetary assets, primarily cash and cash equivalents, short-term investments, and non-current investments in financial instruments ⁽¹⁾		U.S.$	1,655.9		U.S.$	1,352.0
U.S. dollar-denominated and U.S. dollar-equivalent monetary liabilities, primarily trade accounts payable, Senior debt securities, lease liabilities, and other liabilities ^{(2) (3)}			(3,819.7)			(3,942.2)
Net liability position		U.S.$	(2,163.8)		U.S.$	(2,590.2)

(1)	As of December 31, 2025 and 2024, this line includes U.S. dollar equivalent amounts of U.S.$9.5 million and U.S.$33.4 million, respectively, related to other foreign currencies, primarily Euros.

(2)	As of December 31, 2025 and 2024, this line includes U.S. dollar equivalent amounts of U.S.$40.1 million and U.S.$0.1 million, respectively, related to other foreign currencies, primarily Euros.

(3)

As of December 31, 2025 and 2024, monetary liabilities include U.S.$2,304.1 million (Ps.41,511,522) and U.S.$2,108.7 million (Ps.44,005,755), respectively, related to long-term debt designated as a hedging instrument of the Group’s investments in TelevisaUnivision and the investment in Open-Ended Fund (see Note 14).

At December 31, 2025, a hypothetical 10% appreciation/depreciation in the U.S. dollar to Mexican peso exchange rate would result in a foreign exchange gain/loss, net of hedge, of Ps.252,766 in the consolidated statement of income or loss. At December 31, 2024, a hypothetical 10% appreciation/depreciation in the U.S. dollar to Mexican peso exchange rate would result in a foreign exchange gain/loss, net of hedge, of Ps.1,004,917 in the consolidated statement of income or loss.

(ii) Cash Flow Interest Rate Risk

The Group monitors the exposure to interest rate risk by: (i) evaluating differences between interest rates on its outstanding debt and short-term investments and market interest rates on similar financial instruments; (ii) reviewing its cash flow needs and financial ratios (indebtedness and interest coverage); (iii) assessing current and forecasted trends in the relevant markets; and (iv) evaluating peer Group and industry practices. This approach allows the Group to determine the interest rate “mix” between variable and fixed rate debt.

The Group’s interest rate risk arises from long-term debt. Debt issued at variable rates exposes the Group to cash flow interest rate risk, which is partially offset by cash and cash equivalents and short-term investments held at variable rates. Debt issued at fixed rates exposes the Group to fair value interest rate risk. During recent years, the Group has maintained most of its debt in fixed rate instruments (see Note 14).

Based on various scenarios, the Group manages its cash flow interest rate risk by using cross-currency interest rate swaps, exchange rate agreements and floating-to-fixed interest rate swaps. Cross-currency interest rate swap agreements allow the Group to hedge against Mexican peso depreciation on the interest payments for medium-term periods. Interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates.

Sensitivity and Fair Value Analysis

The sensitivity analyses that follow are intended to present the hypothetical changes in fair value or loss in earnings due to changes in interest rates, inflation rates, foreign currency exchange rates and debt and equity market prices and the effect that they would have had on the Group’s financial instruments at December 31, 2025 and 2024. These analyses address market risk only and do not take into consideration other risks that the Group faces in the ordinary course of business, including country risk and credit risk. The hypothetical changes reflect management’s view of changes that are reasonably possible over a one-year period. For purposes of the following sensitivity analyses, the Group has made assumptions of a hypothetical change in fair value of 10% for expected near-term future changes in the United States interest rates, Mexican interest rates, inflation rates and Mexican peso to U.S. dollar exchange rate. The results of the analyses do not purport to represent actual changes in fair value or losses in earnings that the Group will incur.

Difference between

Fair Value and

Carrying Amount

Assuming a

Difference between

Hypothetical

Fair Value and

10% Increase in

December 31, 2025

 

Carrying Amount

 

Fair Value

 

Carrying Amount

 

Fair Value

Assets:

Long-term loan and interest receivable from GTAC

Ps.

1,030,233

Ps.

1,033,922

Ps.

3,689

Ps.

107,081

Open-Ended Fund

817,332

—

81,733

Publicly traded equity instruments

2,608,027

—

260,803

Liabilities^{(2) (3)}:

U.S. dollar-denominated debt:

Senior Notes due 2026

3,736,982

3,731,414

(5,568)

367,573

Senior Notes due 2032

5,404,950

5,761,514

356,564

932,715

Senior Notes due 2040

10,809,900

9,393,371

(1,416,529)

(477,192)

Senior Notes due 2045

14,244,025

9,438,233

(4,805,792)

(3,861,969)

Senior Notes due 2046

15,846,809

12,059,422

(3,787,387)

(2,581,445)

Senior Notes due 2049

11,907,609

7,889,506

(4,018,103)

(3,229,152)

Peso-denominated debt:

Notes due 2027

4,500,000

4,483,980

(16,020)

432,378

Senior Notes due 2037

4,500,000

3,101,760

(1,398,240)

(1,088,064)

Senior Notes due 2043

6,225,690

3,756,830

(2,468,860)

(2,093,177)

Long-term loans payable to Mexican banks

10,000,000

10,083,966

83,966

1,092,363

Lease liabilities

5,435,988

5,595,514

159,526

719,077

Derivative financial instruments ⁽¹⁾

413,188

—

41,319


											Difference between
											Fair Value and
											Carrying Amount
											Assuming a
								Difference between			Hypothetical
								Fair Value and			10% Increase in
December 31, 2024		Carrying Amount			Fair Value			Carrying Amount			Fair Value
Assets:
Long-term loan and interest receivable from GTAC		Ps.	1,024,371		Ps.	1,031,497		Ps.	7,126		Ps.	110,276
Open-Ended Fund			784,769			784,769			—			78,477
Publicly traded equity instruments			1,709,942			1,709,942			—			170,994
Derivative financial instruments ⁽¹⁾			2,001,051			2,001,051			—			200,105

Liabilities^{(2) (3)}:
U.S. dollar-denominated debt:
Senior Notes due 2025			4,579,474			4,577,917			(1,557)			456,235
Senior Notes due 2026			4,328,669			4,254,172			(74,497)			350,920
Senior Notes due 2032			6,260,730			6,838,345			577,615			1,261,450
Senior Notes due 2040			12,521,460			11,389,770			(1,131,690)			7,287
Senior Notes due 2045			16,499,319			11,969,101			(4,530,218)			(3,333,308)
Senior Notes due 2046			18,355,876			15,480,061			(2,875,815)			(1,327,809)
Senior Notes due 2049			13,792,972			10,280,454			(3,512,518)			(2,484,473)
Peso-denominated debt:
Notes due 2027			4,500,000			4,252,725			(247,275)			177,998
Senior Notes due 2037			4,500,000			3,186,405			(1,313,595)			(994,955)
Senior Notes due 2043			6,225,690			3,608,472			(2,617,218)			(2,256,371)
Long-term loans payable to Mexican banks			12,650,000			12,777,242			127,242			1,404,966
Lease liabilities			5,386,639			5,454,171			67,532			612,949

(1)	Given the nature and the tenor of these derivative financial instruments, an increase of 10% in interest and/or exchange rates would not be an accurate sensitivity analysis on the fair value of these financial instruments.

(2)	The carrying amount of debt is stated in this table at its principal amount.

(3)

The fair value of the Senior Notes and Notes issued by the Group are within Level 1 of the fair value hierarchy as there are quoted market prices for such notes. The fair value of the lease liabilities is within Level 2 of the fair value hierarchy and has been estimated based on cash flows discounted using an estimated weighted average cost of capital. The fair value of held-to-maturity securities are within Level 1 of the fair value hierarchy and were based on market interest rates to the listed securities.

(iii) Price Risk

The Group is exposed to equity securities price risk because of investments held by the Group and classified in the consolidated statements of financial position as non-current investments in financial instruments. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group. The Group is not exposed to commodity price risk.

(b) Credit Risk

Credit risk is managed on a Group basis, except for credit risk relating to accounts receivable balances. Each subsidiary is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Credit risk arises from cash and cash equivalents and short-term investments, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposure to customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of “AA” in local scale for domestic institutions and “BBB” in global scale for foreign institutions are accepted. If customers are independently rated, these ratings are used. If there is no independent rating, the Group’s risk control function assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Company’s management. See Note 7 for further disclosure on credit risk.

No credit limits were exceeded during the reporting period, and management does not expect any losses from non-performance by any counterparties.

Historically, the Group has not incurred significant credit losses arising from customers.

Cash flow forecasting is performed in the operating entities of the Group and aggregated by corporate management. Corporate management monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while always maintaining sufficient headroom on its borrowing facilities so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal statement of financial position ratio targets and, if applicable, external regulatory or legal requirements.

Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing investments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts. At December 31, 2025 and 2024, the Group held cash and cash equivalents of Ps.27,607,244 and Ps.46,193,173, respectively; and short-term investments of Ps.11,397,798 at December 31, 2025. (see Note 6).

The table below analyses the Group’s non-derivative and derivative financial liabilities as well as related contractual interest on debt and lease liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table below are the contractual undiscounted cash flows (except for lease liabilities that are stated at present value).

Less Than 12 Months

12-36 Months

36-60 Months

Maturities

January 1, 2026 to

January 1, 2027 to

January 1, 2029 to

Subsequent to

 

December 31, 2026

 

December 31, 2028

 

December 31, 2030

 

December 31, 2030

 

Total

At December 31, 2025

Debt⁽¹⁾

Ps.

3,736,982

Ps.

4,500,000

Ps.

10,000,000

Ps.

68,938,983

Ps.

87,175,965

Lease liabilities

1,583,871

2,401,449

894,328

556,340

5,435,988

Trade and other liabilities

19,700,090

79,493

—

4,612,827

24,392,410

Interest on debt⁽²⁾

4,401,579

11,128,543

9,325,699

52,766,083

77,621,904

Interest on lease liabilities

443,546

552,835

331,066

143,957

1,471,404


		Less Than 12 Months			12-36 Months			36-60 Months			Maturities
		January 1, 2025 to			January 1, 2026 to			January 1, 2028 to			Subsequent to
		December 31, 2025			December 31, 2027			December 31, 2029			December 31, 2029			Total
At December 31, 2024
Debt ⁽¹⁾		Ps.	4,579,474		Ps.	11,478,669		Ps.	10,000,000		Ps.	78,156,047		Ps.	104,214,190
Lease liabilities			1,242,957			2,387,918			865,556			890,208			5,386,639
Trade and other liabilities			18,410,499			84,453			32,503			4,146,195			22,673,650
Interest on debt⁽²⁾			5,428,409			12,561,501			10,787,915			58,559,426			87,337,251
Interest on lease liabilities			462,912			618,152			378,067			252,519			1,711,650

(1)	The amounts of debt are disclosed on a principal amount basis (see Note 14).

(2)	Interest to be paid in future years on outstanding debt as of December 31, 2025 and 2024, based on contractual interest rates and exchange rates as of that date.

Capital Management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders and to maintain an optimal capital structure in order to minimize the cost of capital.