Azteca Announces EBITDA of Ps.1,060 Million for the Third Quarter of 2012

  Azteca Announces EBITDA of Ps.1,060 Million for the Third Quarter of 2012

—Net sales increase to Ps.3,198 million—

—Net income grows 89%, to Ps.718 million—

—During the first nine months of the year, net sales expand 7%, to Ps.8,943
million—

PR Newswire

MEXICO CITY, Oct. 25, 2012

MEXICO CITY, Oct. 25, 2012 /PRNewswire/ -- TV Azteca, S.A.B. de C.V. (BMV:
AZTECA; Latibex: XTZA), one of the two largest producers of Spanish-language
television programming in the world, announced today financial results for the
third quarter, and first nine months of 2012.

Third quarter results

Net sales for the quarter were Ps.3,198 million, 2% above the Ps.3,122 million
for the same quarter of 2011. Total costs and expenses were Ps.2,138 million,
from Ps.1,906 million in the same period of the previous year. As a result,
Azteca reported EBITDA of Ps.1,060 million, from Ps.1,217 million for the same
period of last year. The EBITDA margin was 33%.

The company registered net income of Ps.718 million, 89% higher than the
Ps.380 million for the same quarter of 2011.

                       3Q 2011        3Q 2012        Change
                                                     Ps.           %
Net sales              $3,122         $3,198         $76           2%
EBITDA               $1,217         $1,060         $(157)        -13%
Net income           $380           $718           $338          89%
Net income per CPO     $0.13          $0.24          $0.11         89%
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization. The
number of CPOs outstanding as of September 30, 2011 was 2,985 million and as
of September 30, 2012 was 2,984 million.

Net sales

Domestic ad sales were Ps.2,923 million in the period, 6% above the Ps.2,765
million from the same period of the previous year. The increase reflects the
solid interest of numerous advertisers in Mexico to reach their target markets
through the programming of Azteca.

Sales were complemented by revenue from Azteca America—the company's
wholly-owned broadcast television network focused on the U.S. Hispanic
market—of Ps.229 million, compared to Ps.258 million a year ago.

Programming sales to other countries were Ps.46 million in the period, from
Ps.99 million from the previous year. The revenue resulted from the export of
the programs Los Rey and La Mujer de Judas to Europe, as well as Cielo Rojo to
Central America, Europe, and Asia.

Costs and expenses

The 12% increase in costs and expenses during the period was the result of a
14% increase in production, programming and transmission costs —to Ps.1,761
million, from Ps.1,540 million in the same period a year ago— and a 3%
increase in selling and administrative expenses —to Ps.377 million, from
Ps.366 million in the same quarter of 2011.

The costs increase is mainly the result of the exhibition rights, and the
production costs related to the transmission of the London 2012 Olympic Games.

The performance of sales and administrative expenses is mainly related to the
growth in advisory fees, in the context of growing operations of the company.

EBITDA and net income

EBITDA was Ps.1,060 million, compared to Ps.1,217 million in the same period
of last year; the EBITDA margin was 33% for this period.

The most significant change below EBITDA was a Ps.441 million decrease in the
financial cost, mainly related to a foreign exchange gain for the period.

Net income for the quarter grew 89%, to Ps.718 million, from Ps.380 million
last year.

Debt

As of September 30, 2012, Azteca's outstanding debt —excluding Ps.1,539
million debt due in 2069—was Ps.9,010 million. 

The cash balance of the company was Ps.6,896 million, compared to Ps.7,181
million a year ago. As a result, net debt was Ps.2,114 million, 15% below the
Ps.2,500 million from the prior year. Debt to last twelve months (LTM) EBITDA
ratio was 1.9 times, and net debt to LTM EBITDA was 0.5 times.

Nine months results

Net sales in the first nine months of the year were Ps.8,943 million, 7% above
Ps.8,325 million in the same period of 2011. Total costs and expenses were
Ps.6,068 million, from Ps.5,431 million for the third quarter last year. The
increase in costs results from the exhibition rights and production costs
related to the London 2012 Olympic Games, as well as the production of
competitive content that drove advertising demand.

Azteca reported EBITDA of Ps.2,875 million, compared to Ps.2,894 million from
the prior year; the EBITDA margin for the nine month period was 32%. The
company recorded net income of Ps.1,196 million, 28% above the Ps.936 million
for the same period of the previous year.

                             9M2011        9M2012       Change
                                                        Ps.         %
Net sales                    $8,325        $8,943       $618        7%
EBITDA                       $2,894        $2,875       $(19)       -1%
Net income                 $936          $1,196       $260        28%
Net income per CPO           $0.31         $0.40        $0.09       28%
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of September 30, 2011 was 2,895 million
and as of September 30, 2012 was 2,984 million.

Company Profile

Azteca is one of the two largest producers of Spanish-language television
programming in the world, operating two national television networks in
Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated
stations across the country. Azteca affiliates include Azteca America
Network, a broadcast television network focused on the rapidly growing U.S.
Hispanic market, and Azteca Web, an Internet company for North American
Spanish speakers.

Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic,
fast-growing, and technologically advanced companies focused on creating
shareholder value, contributing to build the middle class of the countries in
which they operate, and improving society through excellence. Created by
Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo
Salinas operates a as a management development and decision forum for the top
leaders of member companies. The companies include: Azteca
(www.irtvazteca.com), Azteca America (www.aztecaamerica.com), Grupo Elektra
(www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Advance
America (www.advanceamerica.net), Afore Azteca (www.aforeazteca.com.mx),
Seguros Azteca (www.segurosazteca.com.mx) and Grupo Iusacell
(www.iusacell.com). Each of the Grupo Salinas companies operates
independently, with its own management, board of directors and shareholders.
Grupo Salinas has no equity holdings. However, member companies share a
common vision, values and strategies for achieving rapid growth, superior
results and world-class performance.

Except for historical information, the matters discussed in this press release
are forward-looking statements and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected. Other risks that may affect Azteca and its subsidiaries are
identified in documents sent to securities authorities.

Investor Relations:
Bruno Rangel              Carlos Casillas
+ 52 (55) 1720 9167       +52 (55) 17 20 91 67
jrangelk@tvazteca.com.mx  cjcasillas@tvazteca.com.mx

Press Relations:
Jaime Ramos              Daniel McCosh
+52 (55) 17 20 14 16     +52 (55) 17 20 00 59
jramosr@tvazteca.com.mx  dmccosh@tvazteca.com.mx

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of September 30 of 2011 and 2012 )
                                    Third Quarter of :
                                    2011          2012
                                                                Change
Net revenue                         Ps 3,122 100% Ps 3,198 100% Ps 76    2%
Programming, production and
transmission costs                     1,540 49%     1,761 55%     221   14%
Selling and administrative expenses    366   12%     377   12%     11    3%
Total costs and expenses               1,906 61%     2,138 67%     233   12%
EBITDA                                 1,217 39%     1,060 33%     (157) -13%
Depreciation and amortization          119           143           24
Other expense -Net                     142           57            (84)
Operating profit                       956   31%     860   27%     (97)  -10%
Equity in income from affiliates       3             6             3
Comprehensive financing result:
Interest expense                       (233)         (244)         (11)
Other financing expense                (28)          (16)          12
Interest income                        37            51            15
Exchange loss -Net                    (233)         193           425
                                       (457)         (17)          441
Income before the following
provision                              502   16%     849   27%     347   69%
Provision for income tax               (123)         (136)         (14)
Net income                          Ps 380        Ps 713        Ps 333
Non-controlling share in net profit Ps (0)        Ps (5)        Ps (5)
Controlling share in net profit    Ps 380   12%  Ps 718   22%  Ps 338   89%

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of September 30 of 2011 and 2012 )
                                  Period ended September 30,
                                  2011             2012
                                                                  Change
Net revenue                       Ps  8,325  100%  Ps  8,943 100% Ps 618  7%
Programming, production and
transmission costs                    4,360  52%       4,966 56%     606  14%
Selling and administrative
expenses                              1,070  13%       1,102 12%     32   3%
Total costs and expenses              5,431  65%       6,068 68%     637  12%
EBITDA                                2,894  35%       2,875 32%     (19) -1%
Depreciation and amortization         368              413           44
Other expense -Net                    247              208           (38)
Operating profit                      2,279  27%       2,254 25%     (25) -1%
Equity in income from affiliates      1                7             6
Comprehensive financing result:
Interest expense                      (640)            (733)         (94)
Other financing expense               (77)             (139)         (61)
Interest income                       110              172           61
Exchange Gain -Net                   (221)            184           405
                                      (828)            (516)         311
Income before the following
provision                             1,453  17%       1,745 20%     292  20%
Provision for income tax              (517)            (561)         (44)
Net income                        Ps  936          Ps  1,184      Ps 248
Non-controlling share in net
profit                           Ps  0            Ps  (12)       Ps (13)
Controlling share in net profit  Ps  936    11%   Ps  1,196 13%  Ps 260  28%

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of September 31 of 2011 and 2012)
                                      At September 31
                                      2011        2012
                                                             Change
Current assets:
Cash and cash equivalents             Ps 7,181    Ps 6,896   Ps (285)
Accounts receivable                      6,238       6,250      12
Other current assets                     2,073       2,383      310
Total current assets                     15,492      15,529     37    0%
Exhibition rights                        1,308       1,363      55
Property, plant and equipment-Net        3,318       3,577      259
Television concessions-Net               6,781       6,803      22
Other assets                             943         1,303      360
Goodwill -Net                            19          -          (19)
Deferred income tax asset                4,456       4,277      (179)
Total long term assets                   16,825      17,323     498   3%
Total assets                          Ps 32,318   Ps 32,852  Ps 535   2%
Current liabilities:
Short-term debt                       Ps 532      Ps 648     Ps 117
Other current liabilities                2,280       2,973      693
Total current liabilities                2,812       3,621      810   29%
Long-term debt:
Structured Securities Certificates       5,218       4,588      (630)
Long-term debt                           3,931       3,774      (157)
Total long-term debt                     9,149       8,362      (787)
Other long term liabilities:
Advertising advances                     6,227       5,800      (427)
American Tower Corporation (due 2069)    1,607       1,539      (68)
Deferred income tax asset                3,572       3,106      (466)
Total other long-term liabilities        11,406      10,445     (961) -8%
Total liabilities                        23,366      22,428     (938) -4%
Total stockholders' equity               8,951       10,424     1,473 16%
Total liabilities and equity          Ps 32,318   Ps 32,852  Ps 535   2%

SOURCE Azteca

Website: http://www.gruposalinas.com
Website: http://www.aztecaamerica.com
 
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