Grupo Elektra Announces 53% EBITDA Growth,to Historical Maximum of Ps.3,286 Million in 3Q12

 Grupo Elektra Announces 53% EBITDA Growth,to Historical Maximum of Ps.3,286
                               Million in 3Q12

- Consolidated revenue grows 38% to Ps.18,247 million, supported by 63%
increase in financial income -

- Consolidated gross portfolio shows solid growth of 64%, to Ps.67,342 million
-

- Banco Azteca has more than 16 million credit accounts, and more than 15
million deposit accounts -

- Grupo Elektra surpasses 6,000 points of sale in 9 countries over America -

PR Newswire

MEXICO CITY, Oct. 25, 2012

MEXICO CITY, Oct. 25, 2012 /PRNewswire/ -- Grupo Elektra, S.A.B. de C.V. (BMV:
ELEKTRA*; Latibex: XEKT), Latin America's leading financial services company
and specialty retailer and the largest non-bank provider of cash advance
services in the United States, reported today its financial results for the
third quarter and the first nine months of 2012 .

"We reached historical EBITDA for a third quarter, resulting from the
remarkable dynamism in consolidated revenue and our solid operating
efficiency," commented Grupo Elektra and Banco Azteca CEO Carlos Septien. "The
expansion in consolidated revenue comes from a 63% increase in financial
income, as part of a remarkable growth of the loan portfolio and the increase
in sales of goods as a result of growing demand for our attractive offering of
world-class products and services."

Consolidated third quarter results

Consolidated income was Ps.18,247 million, up 38% from Ps.13,257 million for
the same quarter last year. Costs and operating expenses were Ps.14,961
million, compared to Ps.11,112 million in the same period of 2011.

Grupo Elektra reported EBITDA of Ps.3,286 million, 53% higher than the
Ps.2,145 million for the same period of last year; EBITDA margin was 18% this
quarter, two percentage points above last year. The company reported a net
profit of Ps.1,543 million, compared to a net profit of Ps.14,631 million a
year ago.

                           3Q 2011      3Q 2012      Change
                                                     Ps.            %
Consolidated revenue       $13,257      $18,247      $4,990         38%
EBITDA                     $2,145       $3,286       $1,142         53%
Net result                 $14,631      $1,543       $(13,088)      -89%
Net result per share       $60.54       $6.51        $(54.03)       -89%
Figures in millions of pesos
*As of 30 September, 2011, Elektra outstanding shares were 241.7 million and
as of 30 September, 2012, were 237.1 million.

Income

Consolidated income grew 38%, as a result of a remarkable 63% increase in
financial income and a 6% growth in commercial sales. 

Financial income grew to Ps.12,084 million from Ps.7,416 million last year.
Advance America contributed to the increase of financial income with Ps.2,280
million; as previously announced, Grupo Elektra acquired Advance America —the
largest non-bank provider of cash advance services in the US— in April of this
year, and consolidates the company's results in Grupo Elektra's financial
statements. 

The dynamism of Banco Azteca income also contributed with the growth of the
financial business. Banco Azteca income increased 32%, to Ps. 8,300 million
from Ps. 6,271 million, mainly as a result of an expansion of personal loans,
Micronegocio Azteca credits and Presta Prenda.

The growth of commercial income is in the context of greater sales of white
goods, electronics, motorcycles and computer sales, among others. 

Costs and expenses

Consolidated costs for the quarter were Ps. 6,902 million, compared to
Ps.6,193 million from the previous year. The change mainly derives from a 27%
increase in financial cost, to Ps. 2,595 million from Ps. 2,043 million a year
ago. The change in financial cost was due to the register of Advance America's
costs this period, which totaled Ps. 418 million.

Consolidated operating expenses were Ps. 8,059 million, compared to Ps. 4,919
million the same quarter of the previous year; the increase is due mainly to
increases in personnel expenses arising from hiring employees focused on
growing and providing better customer service. The increase in expenses also
reflects the consolidation of Advance America's expenses this period.

EBITDA and net result

Consolidated EBITDA was Ps. 3,286 million, 53% higher than the Ps. 2,145
million a year ago; the EBITDA margin for the quarter was 18%, two percentage
points up from 16% the previous year.

The most significant change below EBITDA was a negative variation of Ps.
18,727 million in other financial results, as a consequence of the valuation
of financial instruments owned by the company – which does not imply cash flow
– that was less favorable for this quarter, compared to last year. That
change was partially offset by a Ps. 5,298 million decrease in tax provision.

Grupo Elektra reported net income of Ps. 1,543 million, compared to net income
of Ps. 14,631 million a year ago.

Consolidated balance sheet

Loan portfolio and deposits

Banco Azteca Mexico and Banco Azteca, Advance America and Elektrafin Latin
America's consolidated gross portfolio as of September 30, 2012, was Ps.
67,342 million, 64% higher than the Ps. 41,059 million the previous year,
resulting from the growing preference of customers for our credit products,
which directly improve their quality of life. Consolidated delinquency rate
was 5.9% at the end of the period.

The most significant driver of the consolidated gross portfolio was a 59%
growth in the gross portfolio of Banco Azteca Mexico, to Ps. 56,730 million
from Ps. 35,586 million. The gross portfolio of Advance America as of
September 30, 2012, totaled Ps. 3,549 million.

The delinquency rate of Banco Azteca México at the end of the quarter was
5.1%. The non-performing loan portfolio is reserved 1.7 times, unchanged from
the last year.

At the end of the quarter, the bank had a total of 16.5 million active credit
accounts, 41% above the 11.7 million from the previous year. The large
customer base is an important strength of the bank that further reduces credit
risk. The average term of the credit portfolio for principal credit lines –
consumer, personal loans and Tarjeta Azteca – was 60 weeks at the end of the
third quarter.

Consolidated deposits, as of September 30, 2012, were Ps. 62,140 million, 16%
above the Ps. 53,359 million from the previous year.

Banco Azteca Mexico deposits were Ps. 61,167 million, 12% higher than last
year. The total number of active savings and deposit accounts of the bank was
15.2 million, an increase of 20% compared to 12.7 million at the end of the
same period a year ago.

As of September 30, 2012, the estimated capitalization index of Banco Azteca
Mexico was 12.2%. The company considers the index to be at a level that
optimizes equity profitability.

Debt

As of September 30, 2012, consolidated total debt with cost was Ps. 20,823
million, of which Ps. 19,015 million correspond to the commercial business,
and Ps. 1,808 million to the financial business.

The balance of cash, cash equivalents and marketable securities for the
commercial business was Ps. 24,499 million at the end of the period; as a
result net cash for the commercial business – excluding debt with cost – was a
positive Ps. 5,484 million.

Expansion

Grupo Elektra currently has 6,142 points of sale, compared to 2,611 a year
ago. This change is mainly due to the acquisition of Advance America, which
adds 2,409 points of sale to the company this period. Additionally, 1,080
Financial Services Stores were opened – as part of the company's strategy to
further strengthen this business segment – and 42 Elektra stores.

There are 3,131 points of sale in Mexico, 2,409 in USA and 602 in Central and
South America. The company's large distribution network allows us to stay
close to customers and provides superior market positioning in the countries
where we operate.

Consolidated nine months results

Consolidated total income in the first nine months of 2012 was Ps. 50,401
million, 39% above Ps. 36,330 million the same period of 2011. The EBITDA was
Ps. 9,408 million, 50% higher than the Ps. 6,278 million a year ago; the
EBITDA margin in the first nine months was 19% compared to 17% the previous
year. The company registered a net loss of Ps. 21,478 million, compared to net
income of Ps. 19,220 million last year, mainly due to depreciation this period
in the market value of underlying financial instruments that the company
holds, which doesn't imply cash flow, compared to appreciation in the prior
year.

                             9M 2011     9M 2012       Change
                                                       Ps.           %
Consolidated revenue         $36,330     $50,401       $14,071       39%
EBITDA                       $6,278      $9,408        $3,129        50%
Net result                  $19,220     $(21,478)     $(40,698)     ----
Net result per share         $79.52      $(90.59)      $(170.11)     ----
Figures in million of pesos
*As of September 30, 2011, Elektra's outstanding shares were 241.7 million
and the number of shares as of September 30, 2012, was 237.1 million.

Company Profile:

Grupo Elektra (www.grupoelektra.com.mx) is Latin America's leading financial
services company focused on the mass market. The Group operates over 6,000
points of sale in Mexico, USA, Brazil, Guatemala, Honduras, Peru, Panama, El
Salvador and Argentina. Grupo Elektra also sells and markets its consumer
finance, banking and financial products and services through Banco Azteca
branches located in Mexico, Brazil, Panama, Guatemala, Honduras, Peru and El
Salvador.

Grupo Elektra 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 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.mx). Each of the Grupo Salinas companies operates
independently, with its own management, board of directors and shareholders.
Grupo Salinas has no equity holdings. However, the 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 Grupo Elektra and its subsidiaries are
identified in documents sent to securities authorities.

Investor Relations
Bruno Rangel                  Carlos Casillas
Grupo Salinas                 Grupo Elektra S.A. de C.V.
Tel. +52 (55) 1720-9167       Tel. +52 (55) 1720-0041
jrangelk@gruposalinas.com.mx  cjcasillas@gruposalinas.com.mx

Press Relations
Jaime Ramos              Daniel McCosh
Grupo Salinas            Grupo Salinas
+ 52 (55) 1720 1416      Tel. +52 (55) 1720-0059
jramosr@tvazteca.com.mx  dmccosh@gruposalinas.com.mx

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
MILLIONS OF MEXICAN PESOS
                                     3Q11          3Q12         Change
Financial income                     7,416   56%   12,084 66%   4,668    63%
Commercial income                    5,841   44%   6,163  34%   322      6%
Income                               13,257  100%  18,247 100%  4,990    38%
Financial cost                       2,043   15%   2,595  14%   553      27%
Commercial cost                      4,150   31%   4,306  24%   156      4%
Costs                                6,193   47%   6,902  38%   709      11%
Gross income                         7,064   53%   11,346 62%   4,282    61%
Sales, administration and promotion
expenses                             4,919   37%   8,059  44%   3,140    64%
Depreciation and amortization        434     3%    577    3%    142      33%
Operating expenses                   5,353   40%   8,636  47%   3,283    61%
Operating income                     1,710   13%   2,710  15%   999      58%
EBITDA                               2,145   16%   3,286  18%   1,142    53%
Comprehensive financial result:
  Interest income                  51      0%    82     0%    30       59%
  Interest expense                 (334)   -3%   (480)  -3%   (145)    -43%
  Foreign exchange gain (loss),
net                                  775     6%    (2)    0%    (777)    ----
  Other financial results, net     18,382  139%  (344)  -2%   (18,727) ----
                                     18,874  142%  (745)  -4%   (19,619) ----
Other expense, net                   (13)    0%    (15)   0%    (3)      -23%
Participation in the net income
of
CASA and other associated companies  (228)   -2%   8      0%    237      ----
Income before income tax             20,343  153%  1,958  11%   (18,386) ----
Income tax                           (5,713) -43%  (415)  -2%   5,298    ----
Consolidated net income              14,631  110%  1,543  8%    (13,088) ----

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
MILLIONS OF MEXICAN PESOS
                                   9M11          9M12           Change
Financial income                   18,719  52%   32,420   64%   13,701   73%
Commercial income                  17,611  48%   17,981   36%   371      2%
Income                             36,330  100%  50,401   100%  14,071   39%
Financial cost                     4,141   11%   8,550    17%   4,409    100%
Commercial cost                    12,203  34%   12,465   25%   262      2%
Costs                              16,344  45%   21,015   42%   4,672    29%
Gross income                       19,986  55%   29,386   58%   9,400    47%
Sales, administration and
promotion expenses                 13,708  38%   19,978   40%   6,270    46%
Depreciation and amortization      1,293   4%    1,619    3%    325      25%
Operating expenses                 15,001  41%   21,597   43%   6,596    44%
Operating Income                   4,985   14%   7,789    15%   2,804    56%
EBITDA                             6,278   17%   9,408    19%   3,129    50%
Comprehensive financial result:
  Interest income                575     2%    1,116    2%    541      94%
  Interest expense               (928)   -3%   (1,397)  -3%   (469)    -51%
  Foreign exchange gain (loss),
net                                504     1%    (302)    -1%   (806)    ----
  Monetary loss                  -       0%    -        0%    -        0%
  Other financial results, net   21,870  60%   (37,380) -74%  (59,249) ----
                                   22,021  61%   (37,962) -75%  (59,983) ----
Other expense, net                 (31)    0%    (14)     0%    17       55%
Participation in the net
income expense of
CASA and other associated
companies                          (247)   -1%   83       0%    330      ----
Income (loss) before income tax    26,728  74%   (30,104) -60%  (56,832) ----
Income tax                         (7,508) -21%  8,626    17%   16,134   ----
Consolidated net income (loss)     19,220  53%   (21,478) -43%  (40,698) ----

GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
MILLIONS OF MEXICAN PESOS
              Commercial Financial Grupo    Commercial Financial Grupo
              Business   Business  Elektra  Business   Business  Elektra  Change
              At September 30, 2011         At September 30, 2012
Cash and cash
equivalents   1,905      13,288    15,193   1,148      15,589    16,737   1,544    10%
Marketable
financial
instruments   16,739     18,917    35,656   23,351     8,773     32,125   (3,531)  -10%
Performing
loan
portfolio     355        28,380    28,735   390        47,695    48,085   19,351   67%
Total
past-due
loans         183        1,460     1,643    264        3,278     3,542    1,899    116%
Gross loan
portfolio     538        29,840    30,378   653        50,974    51,627   21,249   70%
Allowance for
credit risks  195        2,728     2,923    266        6,048     6,314    3,391    116%
Loan
portfolio,
net           343        27,112    27,455   387        44,926    45,313   17,859   65%
Inventories   6,449                6,449    6,527                6,527    78       1%
Other current
assets        4,282      4,158     8,439    13,597     5,249     18,846   10,407   123%
Total current
assets        29,717     63,475    93,192   45,010     74,537    119,548  26,356   28%
Financial
instruments   13,083               13,083   -          111       111      (12,972) -99%
Performing
loan
portfolio     33         10,510    10,543   51         15,213    15,264   4,721    45%
Total
past-due
loans         0          138       138      2          449       451      313      228%
Loan
portfolio     33         10,647    10,681   53         15,662    15,715   5,034    47%
Other
non-current
assets        29,660               29,660   810                  810      (28,850) -97%
Investment in
shares        2,778      19        2,797    2,689      15        2,704    (93)     -3%
Property,
furniture,
equipment and
investment
in stores,
net           4,435      1,473     5,908    4,315      2,613     6,929    1,021    17%
Other Assets  1,310      2         1,313    1,056      6,661     7,716    6,404    488%
TOTAL ASSETS  81,017     75,617    156,633  53,934     99,600    153,533  (3,100)  -2%
Demand and
term deposits            53,359    53,359              62,140    62,140   8,781    16%
Creditors
from
repurchase
agreements               6,444     6,444               4,134     4,134    (2,309)  -36%
Short-term
debt          4,811      403       5,214    5,526      685       6,212    998      19%
Financial
leasing       17                   17       7                    7        (10)     -56%
Short-term
liabilities
with cost     4,828      60,206    65,033   5,534      66,960    72,494   7,460    11%
Suppliers and
other
short-term
liabilities   7,563      3,264     10,827   7,395      6,070     13,465   2,638    24%
Short-term
liabilities
without cost  7,563      3,264     10,827   7,395      6,070     13,465   2,638    24%
Total
short-term
liabilities   12,391     63,469    75,860   12,929     73,029    85,959   10,099   13%
Long-term
debt          9,984      1,102     11,086   13,452     1,123     14,575   3,489    ----
Financial
leasing       13                   13       29                   29       16       ----
Long-term
liabilities
with cost     9,996      1,102     11,099   13,481     1,123     14,604   3,505    ----
Long-term
liabilities
without cost  12,475     948       13,423   8,288      1,577     9,865    (3,557)  ----
Total
long-term
liabilities   22,471     2,050     24,521   21,769     2,700     24,469   (52)     ----
TOTAL
LIABILITIES   34,862     65,519    100,381  34,699     75,729    110,428  10,047   10%
TOTAL
STOCKHOLDERS'
EQUITY        46,155     10,098    56,252   19,235     23,871    43,106   (13,147) -23%
LIABILITIES +
EQUITY        81,017     75,617    156,633  53,934     99,600    153,533  (3,100)  -2%

INFRASTRUCTURE
                          3Q11                  3Q12              Change
Points of sale in Mexico
Elektra (1)               938         36%       968         16%   30     3%
Salinas y Rocha (1)       55          2%        55          1%    -      0%
Freestanding branches (2) 1,146       44%       2,108       34%   962    84%
Total                     2,139       82%       3,131       51%   992    46%
Points of sale in Central and South
America
Elektra (3)               218         8%        230         4%    12     6%
Freestanding branches     254         10%       372         6%    118    46%
Total                     472         18%       602         10%   130    28%
Points of sale in North
America
Advance America           -           -         2,409       39%   2,409  ----
Total                     -           -         2,409       39%   2,409  ----
TOTAL                     2,611       100%      6,142       100%  3,531  ----
(1) Each store has a
Banco Azteca branch.
(2) In 3Q12, includes 45 Bodegas de Remate that continues
operating only financial services.
(3) In 3Q12, only 204 Central and South America Elektra's
store have a Banco Azteca branch.
Floor space (m2)
Elektra Mexico            817,944     70%       834,904     66%   16,961 2%
Elektra Central and South
America                   162,755     14%       162,346     13%   (409)  0%
Salinas y Rocha           59,614      5%        58,995      5%    (619)  -1%
Freestanding branches     131,208     11%       213,820     17%   82,612 63%
TOTAL                     1,171,521   100%      1,270,066   100%  98,544 8%
Employees
Mexico                    38,999      84%       58,597      78%   19,598 50%
Central and South America 7,300       16%       10,648      14%   3,348  46%
North America             -           -         6,056       8%    6,056  ----
Total employees           46,299      100%      75,301      100%  29,002 63%

SOURCE Grupo Elektra, S.A.B. de C.V.

Website: http://www.grupoelektra.com.mx
 
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