In accordance with Article 44, Section XI of the Law of Stock Markets and correlated articles of the General Law of Corporations, by means of this letter please allow me to submit for your consideration the report on activities carried out by the management of Corporación Interamericana de Entretenimiento, S.A.B. de C.V. (hereinafter “CIE,” the “Group,” or the “Company”), during fiscal year 2015, which should be read and analyzed together with the Independent Auditor’s report for the fiscal year ended December 31, 2015, a copy of which is attached, and which forms an integral part of the Company's Audited Consolidated Financial Statements at December 31, 2015.
Throughout our history, at CIE we have developed a vision of business that has left its mark in the social, cultural and economic spheres of Mexico and Latin America. By promoting and marketing the best out-of-home entertainment, we promote interaction between consumers, artistic talent and other communities, with the institutional brands and messages of advertisers on our products and services. The result of this effort is that we have become one of the stand-out industry players in the region due to our ability to deliver the best domestic and international entertainment, at world-class standards.
Despite our more than 25 years of corporate evolution, the year 2015 stands out due to the significant level of interaction and participation that were required of us. Staging the Broadway show The Lion King, plus an outstanding calendar of musical tours and concerts, as well as the presentation of top-rate family, theater, sporting, corporate and special events in Mexico, Colombia and Central America, allowed the Group to attain the objectives that had been established for the year.
It is also important to mention our participation in organizing the Mexican Formula One Grand Prix as a great achievement during the year. CIE’s contribution as promoter, organizer and operator, together with the excitement of the Mexican public, unique in its involvement, the commercial interest of brands and top-rate advertisers, and the commitment of the Mexican authorities, led the race to be recognized as the “Best Event of the Year,” and our Group to be recognized as the “Best Promoter" by the FIA - Fédération Internationale de l'Automobile.
As a result of the Group’s overall performance, our consolidated net income was Ps.8,894 million, 40% higher than last year. EBITDA was Ps.1,257 million during the year, Ps.584 million higher than in 2014. The Group’s net income was Ps.732 million.
In terms of its financial structure, the Group’s assets were Ps.10,675 million, 25% higher than in the prior year, while the Company’s total liabilities were Ps.6,899 million, in comparison with Ps.5,313 million in 2014. In particular, the Group’s debt was Ps.2,299 million, compared to Ps.1,481 million in 2014. That increase was due mainly to having obtained the funds necessary to remodel the Hermanos Rodríguez Racetrack.
The Group’s shareholder’s equity grew 17% during the year to Ps.3,775 million at the end of 2015.
Along the same line, CIE’s cash flow in 2015 was Ps.1,406 million, while investments and fixed and intangible assets were Ps.1,210 million, nearly three times more than in the prior year.
The current situation of our industry obliges those of us who are a part of it to put new proposals into practice, and to develop a new culture of corporate innovation. From this, we anticipate a new dynamism at CIE in the way that it is tied to its markets, corporate clients and the government, as well as its partners and strategic partners, among others. We are certain that we will all improve our competitive advantages and market position, while helping the trickle-down of economic benefits to the society in the region.
Thank you for the commitment and collaboration of everyone, and of every corporate group, government authority, and member of society who has collaborated with us, and everyone who puts their trust in CIE every day. The confidence placed in us is the most important motivator in building our business.
Alejandro Soberón Kuri
Chairman of the Board of Directors
and Chief Executive Officer
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STOCKHOLDERS' EQUITY
*Note: With the exception of the number of employees, figures are expressed in million pesos
MESSAGE TO SHAREHOLDERS (2016)