Investor Presentaiton
18
COVID-19
The COVID-19 pandemic has affected our business, financial position and results of operations for the quarter ended March 31, 2021,
and it is currently difficult to predict the degree of the impact in the future.
We cannot guarantee that conditions in the bank lending, capital and other financial markets will not continue to deteriorate as a result
of the pandemic, or that our access to capital and other sources of funding will not become constrained, which could adversely affect
the availability and terms of future borrowings, renewals or refinancings. In addition, the deterioration of global economic conditions as
a result of the pandemic may ultimately reduce the demand of our products across our segments as our clients and customers reduce
or defer their spending.
Although vaccination efforts have started countrywide since January 2021, the Mexican Government is still implementing the plan to
reactivate economic activities in accordance with color-based phases determined on a weekly basis in every state of the country. Most
of non-essential economic activities are open with some limitations, mainly on capacity and hours of operation. However, a significant
part of the population is still implementing social distancing and shelter-in-place policies. As a result, during the quarter ended March
31, 2021, this has affected, and is still affecting the ability of our employees, suppliers and customers to conduct their functions and
businesses in their typical manner.
As of this date, given that they are considered essential economic activities, we have continued operating our media and
telecommunications businesses uninterrupted to continue benefiting the country with connectivity, entertainment and information, and
during the quarter ended March 31, 2021, we continued with the production of new content following the requirements and health
guidelines imposed by the Mexican Government. During the quarter ended March 31, 2021, our Content business continued to recover
as a result of the easing in lockdown restrictions in some jurisdictions in which our customers are located. Notwithstanding the
foregoing, we are partially dependent on the demand for advertising from consumer-focused companies, and the COVID-19 pandemic
has caused, and could further cause, advertisers to reduce or postpone their advertisement spending on our platforms.
In our Other Businesses segment, sporting and other entertainment events for which we have broadcast rights, or which we organize,
promote and/or are located in venues we own, are operating with some limitations and taking the corresponding sanitary measures,
and to date some of our casinos have resumed operations with reduced capacity and hours of operation. When local authorities
approve the re-opening of the venues that are still not operating, rules may be enacted including capacity and operating hours
restrictions; these may affect the results of our Other Businesses segment in the following months.
Notwithstanding the foregoing, the authorities may impose restrictions on non-essential activities, including but not limited to temporary
shutdowns or additional guidelines which could be expensive or burdensome to implement, which may affect our operations.
The magnitude of the impact on our business will depend on the duration and extent of the COVID-19 pandemic and the impact of
federal, state, local and foreign governmental actions, including continued or future social distancing, and consumer behavior in
response to the COVID-19 pandemic and such governmental actions. Due to the evolving and uncertain nature of this situation, we are
not able to estimate the full extent of the impact of the COVID-19 pandemic, but it may continue affecting our business, financial
position and results of operations over the near, medium or long-term.View entire presentation