Grupo Elektra Reports 8% Decrease in EBITDA, to Ps.3,050 Million

Grupo Elektra Reports 8% Decrease in EBITDA, to Ps.3,050 Million

  —Firm expansion of credit business generates immediate costs and expenses,
                 setting the stage for future profitability—

  —The company surpasses 6,500 points of sale in Mexico, the United States,
                          Central and South America—

   —Firm increase of consolidated gross portfolio, grows 49%, to Ps.73,400
                                   million—

MEXICO CITY, April 23, 2013 (GLOBE NEWSWIRE) -- 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 first quarter of 2013 .

Consolidated first quarter results

Consolidated income was Ps.17,572 million, up 16% from Ps.15,108 million for
the last year. Costs and operating expenses were Ps.14,522 million, from
Ps.11,800 million in the same period of 2012.

Grupo Elektra reported EBITDA of Ps.3,050 million, compared to Ps.3,308
million for the previous year; EBITDA margin was 17% this quarter. The company
reported a net loss of Ps.582 million, from a loss of Ps.3,832 million a year
ago.


                          1Q 2012       1Q 2013       Change
                                                      Ps.         %
                                                                 
Consolidated revenue       $15,108        $17,572        $2,463      16%
                                                                 
EBITDA                     $3,308         $3,050         $(258)      -8%
                                                                 
Net result                 $(3,832)       $(582)         $3,250      85%
                                                                 
Net result per share       $(15.84)       $(2.45)        $13.39      85%

Figures in millions of pesos
*As of March 31, 2012, Elektra outstanding shares were 241.9 million and as of
March 31, 2013, were 237.2 million.

Income

Consolidated income grew 16%, as a result of a solid increase of 37% in
financial income and a 15% reduction in commercial sales. 

Financial income grew to Ps.12,468 million, from Ps.9,076 million last
year.Advance America contributed to this increase with Ps.2,071 million; as
previously announced, Grupo Elektra acquired Advance America —the largest
non-bank provider of cash advance services in the US— in April of 2012, and
consolidates the company's results in Grupo Elektra's financial statements.

The dynamism of Banco Azteca Mexico income also contributed with the growth of
the financial business. Banco Azteca income increased 8%, to Ps.8,262 million
from Ps.7,650 million, mainly as a result of an expansion of personal loans,
and Presta Prenda credits.

The continuous growth of the financial business translates into a robust
proportion of financial income in the consolidated revenue, representing 71%
in the quarter, compared to 60% a year ago.

The decrease in commercial income is in the context of reorganization in the
commercialization of products, seeking to provide superior customer attention,
as well as specialized service on the sales floor; building the basis for
future sales growth. 

Costs and expenses

Consolidated costs for the quarter decreased 3% to Ps.6,779 million, from
Ps.6,980 million from the previous year. The change mainly derives from a 21%
increase in financial cost — to Ps.3,166 million compared to Ps.2,608 million
a year ago — and a 17% reduction in commercial cost, in line with the
performance of the revenue.

The change in financial cost mainly resulted from the creation of loan loss
reserves—in the context of significant growth of the consolidated portfolio—as
well as from the registration of the costs of Advance America, which added
Ps.217 million this period.

Consolidated operating expenses were Ps.7,743 million, compared to Ps.4,820
million for the same quarter of the previous year; the growth is due mainly to
increases in personnel and operating expenses derived from the expansion of
the financial business — in the context of a higher number of Elektra Dinero
financial services branches. This expansion has related expenses;
nevertheless they are expected to generate solid benefits in the future. The
increase in expenses also reflects the consolidation of the expenses of
Advance America for the period.

Grupo Elektra currently has 6,580 points of sale, compared to 2,989 a year
ago. This change is mainly due to the acquisition of Advance America, which
added 2,507 points of sale to the company this period. Additionally, 1,084
financial services branches were opened, mainly Elektra Dinero –as part of the
company's strategy to further strengthen this business segment.

The increase in points of sale represents a 36% growth in the exhibition area
of Grupo Elektra, which together with the further specialization of the sales
force resulted in a 35% increase in the number of employees, to 78,236 at the
end of the quarter, compared to 58,093 a year ago. This generates more
proximity to the clients, as well as superior attention, which can be
anticipated will result in outstanding dynamism in the commercialization of
financial services and goods in the future.

EBITDA and net result

Consolidated EBITDA was Ps.3,050 million, compared to Ps.3,308 million a year
ago; the EBITDA margin for the quarter was 17%.

The most significant change below EBITDA was a positive variation of Ps.4,983
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 more favorable for this quarter, compared to last year.

Grupo Elektra reported net loss of Ps.582 million, from net loss of Ps.3,832
million a year ago.

Consolidated balance sheet

Loan portfolio and deposits

Banco Azteca Mexico, Advance America and Banco Azteca and Elektrafin Latin
America's consolidated gross portfolio as of March 31, 2013, was Ps.73,400
million, 49% higher than the Ps. 49,287 million the previous year, a result of
the growing preference of customers for our credit products, which directly
improve quality of life. Consolidated delinquency rate was 8.4% at the end of
the period.

The most significant driver of the consolidated gross portfolio was a 45%
growth in the gross portfolio of Banco Azteca Mexico, to Ps.62,273 million
from Ps.43,023 million. The gross portfolio of Advance America as of March 31,
2013, totaled Ps.3,060 million.

The delinquency rate of Banco Azteca Mexico at the end of the quarter was
8.2%. The non-performing loan portfolio is reserved 1.3 times.

At the end of the quarter, the bank had a total of 18.6 million active credit
accounts, 35% above of 13.8 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
first quarter.

Banco Azteca Mexico deposits were Ps.70,594 million, 21% higher than last
year. The total number of active savings and deposit accounts of the bank was
17 million, an increase of 27% compared to 13.4 million at the end of the same
period a year ago.

As of March 31, 2013, the capitalization index of Banco Azteca Mexico was
13.9%. The company considers the index to be at a level that optimizes equity
profitability.

Debt

As of March 31, 2013, consolidated total debt with cost was Ps.23,781 million,
of which Ps.19,796 million correspond to the commercial business, and Ps.3,984
million to the financial business.

The balance of cash, cash equivalents and marketable securities for the
commercial business was Ps.26,973 million at the end of the period; as a
result, net cash for the commercial business –excluding debt with cost– was a
positive Ps.7,177 million.

Company Profile:

Grupo Elektra (www.grupoelektra.com.mx) is Latin America's leading financial
services company and specialty retailer and the largest non-bank provider of
cash advance services in the United States. The Group operates over 6,000
points of sale in Mexico, USA, Brazil, Guatemala, Honduras, Peru, Panama, El
Salvador and Argentina.

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.


GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
MILLIONS OF MEXICAN PESOS
                                                                    
                                    1Q12          1Q13          Change
                                                                    
Financial income                     9,076   60%  12,468  71%  3,392   37%
Commercial income                    6,033   40%  5,104   29%  (929)   -15%
Income                               15,108  100% 17,572  100% 2,463   16%
                                                                    
Financial cost                       2,608   17%  3,166   18%  558     21%
Commercial cost                      4,372   29%  3,612   21%  (759)   -17%
Costs                                6,980   46%  6,779   39%  (201)   -3%
                                                                    
Gross income                         8,128   54%  10,793  61%  2,664   33%
                                                                    
Sales, administration and promotion  4,820   32%  7,743   44%  2,923   61%
expenses
Depreciation and amortization        474     3%   662     4%   188     40%
Operating expenses                   5,294   35%  8,405   48%  3,111   59%
                                                                    
Operating income                     2,835   19%  2,388   14%  (447)   -16%
                                                                    
EBITDA                              3,308   22%  3,050   17%  (258)   -8%
                                                                    
Comprehensive financial result:                                      
Interest income                      103     1%   49      0%   (55)    -53%
Interest expense                     (425)   -3%  (421)   -2%  4       1%
Foreign exchange loss, net           (342)   -2%  (368)   -2%  (26)    -7%
Other financial results, net         (7,584) -50% (2,601) -15% 4,983   66%
                                    (8,247) -55% (3,341) -19% 4,906   59%
                                                                    
Other (expense) income, net          (0)     0%   9       0%   9       --
                                                                    
Participationinthenetincome of   31      0%   (2)     0%   (33)    --
CASA and other associated companies
                                                                    
Loss before income tax               (5,382) -36% (946)   -5%  4,436   82%
                                                                    
Income tax                           1,550   10%  363     2%   (1,186) -77%
                                                                    
Consolidated net loss               (3,832) -25% (582)   -3%  3,250   85%



GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
              MILLIONS OF MEXICAN PESOS                                               
                                                                             
              Commercial Financial Grupo    Commercial Financial Grupo    Change           
               Business   Business  Elektra Business   Business  Elektra
                        
              At March 31, 2012             At March 31, 2013             
                                                                             
Cash and cash  1,805     14,288   16,093  3,819     15,475   19,294  3,201    20%
equivalents
                                                                             
Marketable
financial      19,789    17,047   36,836  23,154    13,002   36,156  (680)    -2%
instruments
                                                                             
Performing     356       34,026   34,383  224       49,675   49,898  15,516   45%
loan portfolio
Total past-due 222       2,173    2,394   263       5,353    5,616   3,222    135%
loans
Gross loan     578       36,199   36,777  487       55,028   55,515  18,738   51%
portfolio
                                                                             
Allowance for  228       4,067    4,294   264       8,055    8,319   4,024    94%
credit risks
                                                                             
Loan           350       32,133   32,483  223       46,973   47,196  14,713   45%
portfolio, net
                                                                             
Inventories    7,053              7,053   7,071              7,071   17       0%
                                                                             
Other current  3,649     6,685    10,334  9,299     8,295    17,593  7,259    70%
assets
                                                                             
Total current  32,645    70,154   102,799 43,565    83,745   127,310 24,511   24%
assets
                                                                             
Financial      13,300             13,300                     --     (13,300) -100%
instruments
                                                                             
Performing               12,484   12,484  236       17,128   17,364  4,880    39%
loan portfolio
Total past-due           158      158     1         520      521     363      230%
loans
Loan portfolio --       12,510   12,510  237       17,648   17,885  5,375    43%
                                                                             
Other
non-current    36,069    32       36,100  844       168      1,013   (35,088) -97%
assets
                                                                             
Investment in  2,599     14       2,613   3,893              3,893   1,280    49%
shares
Property,
furniture,
equipment      4,123     1,563    5,686   4,087     2,862    6,949   1,264    22%
andinvestment
in stores, net
Intangible     653       --      653     544       6,295    6,839   6,186    947%
assets
Other assets   385       104      489     760       387      1,148   659      135%
TOTAL ASSETS   89,774    84,375   174,149 53,932    111,105  165,037 (9,112)  -5%
                                                                             
                                                                             
Demand and               55,291   55,291            71,717   71,717  16,427   30%
term deposits
Creditors from
repurchase               9,385    9,385             2,709    2,709   (6,676)  -71%
agreements
Short-term     3,442     --      3,442   9,163     2,872    12,036  8,594    250%
debt
Short-term
liabilities    3,442     64,676   68,118  9,163     77,299   86,462  18,344   27%
with cost
                                                                             
Suppliers and
other          7,130     6,098    13,228  6,798     6,124    12,922  (306)    -2%
short-term
liabilities
Short-term
liabilities    7,130     6,098    13,228  6,798     6,124    12,922  (306)    -2%
without cost
                                                                             
Total
short-term     10,572    70,774   81,346  15,961    83,422   99,384  18,038   22%
liabilities
                                                                             
Long-term debt 10,484    1,097    11,581  10,633    1,112    11,745  164      --
Long-term
liabilities    10,484    1,097    11,581  10,633    1,112    11,745  164      --
with cost
                                                                             
Long-term
liabilities    16,295    683      16,978  8,562     949      9,511   (7,467)  --
without cost
                                                                             
Total
long-term      26,779    1,780    28,559  19,196    2,060    21,256  (7,303)  --
liabilities
                                                                             
TOTAL          37,351    72,554   109,905 35,157    85,482   120,640 10,734   10%
LIABILITIES
                                                                             
TOTAL
STOCKHOLDERS'  52,423    11,821   64,244  18,775    25,623   44,397  (19,847) -31%
EQUITY
                                                                             
LIABILITIES +  89,774    84,375   174,149 53,932    111,105  165,037 (9,112)  -5%
EQUITY



INFRASTRUCTURE
                                                                     
                                1Q12             1Q13            Change
                                                                     
Points of sale in Mexico                                              
Elektra (1)                      952        32%  967       15%  15      2%
Salinas y Rocha (1)              55         2%   55        1%   --      0%
Freestanding branches (2)        1,450      49%  2,387     36%  937     65%
Total                            2,457      82%  3,409     52%  952     39%
                                                                     
Points of sale in Central and                                         
South America
Elektra (3)                      232        8%   217       3%   (15)    -6%
Freestanding branches            300        10%  447       7%   147     49%
Total                            532        18%  664       10%  132     25%
                                                                     
Points of sale in North America                                       
Advance America                  --        --   2,507     38%  2,507   --
Total                            --        --   2,507     38%  2,507   --
                                                                     
TOTAL                            2,989      100% 6,580     100% 3,591   --
                                                                     
(1) Each store has a Banco Azteca branch.
(2) In 1Q13, includes 45 Bodegas de Remate that continues operating only
financial services.
(3) In 1Q13, only 206 Central and South America Elektra's store have a Banco
Azteca branch.

                                                                     
Floor space (m²)                                                      
Elektra Mexico                   824,390    69%  836,259   51%  11,869  1%
Elektra Central and South        163,755    14%  156,125   10%  (7,630) -5%
America
Salinas y Rocha                  58,995     5%   58,995    4%   --      0%
Freestanding branches            156,247    13%  246,437   15%  90,189  58%
Advance America                  --        0%   343,500   21%  343,500 --
TOTAL                            1,203,387  100% 1,641,316 100% 437,929 36%

                                                                     
Employees                                                             
Mexico                           48,644     84%  59,278    76%  10,634  22%
Central and South America        9,449      16%  12,610    16%  3,161   33%
North America                    --        --   6,348     8%   6,348   --
Total employees                  58,093     100% 78,236    100% 20,143  35%

CONTACT: Investor Relations
        
         Bruno Rangel
         Grupo Salinas
         Tel. +52 (55) 1720-9167
         jrangelk@gruposalinas.com.mx
        
         Rolando Villarreal
         Grupo Elektra S.A.B. de C.V.
         Tel. +52 (55) 1720-9167
         rvillarreal@gruposalinas.com.mx
        
         Press Relations
        
         Jaime Ramos
         Grupo Salinas
         + 52 (55) 1720 1416
         jramosr@tvazteca.com.mx
        
         Daniel McCosh
         Grupo Salinas
         Tel. +52 (55) 1720-0059
         dmccosh@gruposalinas.com.mx