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Azteca Announces Sales of Ps.2,820 Million and EBITDA Of Ps.847 Million for the Second Quarter of 2013



Azteca Announces Sales of Ps.2,820 Million and EBITDA Of Ps.847 Million for
the Second Quarter of 2013

Solid Progress in the Construction of the Largest Fiber Optic Network in Latin
America

MEXICO CITY, July 18, 2013 (GLOBE NEWSWIRE) -- 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 second quarter and first half of 2013.

Second quarter results

Net sales for the quarter were Ps.2,820 million, from Ps. 2,994 million for
the same quarter of 2012. The decrease in sales continues to be caused largely
by the change in government that redefines communication projects; the company
expects such projects to recover during the second half of 2013.

Total costs and expenses were Ps.1,973 million, 3% below Ps.2,028 million the
same period of the previous year. As a result, Azteca reported EBITDA of
Ps.847 million, compared to Ps.966 million from last year; EBITDA margin for
the quarter was 30%.

The company registered a net loss of Ps.85 million, compared to net income of
Ps.40 million for the same quarter of 2012.

 
                      2Q 2012        2Q 2013         Change
                                                     Ps.             %
                                                                      
Net sales             $ 2,994        $ 2,820          $ (174)        -6%
                                                                      
EBITDA                $ 966          $ 847            $ (119)        -12%
                                                                      
Net result            $ 40            $ (85)          $ (125)        ---
                                                                      
Net result per CPO    $ 0.01          $ (0.03)        $ (0.04)       ---
 
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of June 30, 2012 was 2,985 million and as of
June 30, 2013 was 2,984 million.

Net sales

Domestic ad sales were Ps.2,601 million in the period, compared to Ps.2,706
million for the same period of the previous year.

Additionally, the company registered sales from Azteca America—the company's
wholly-owned broadcast television network focused on the U.S. Hispanic
market—of Ps.173 million, compared to Ps.229 million a year ago.

Content sales to other countries were Ps.46 million in the period, from Ps.59
million in the previous year; revenue for the quarter resulted from the
exports of programs such as Vivir a Destiempo in Central and South America,
Destino in Europe and Asia, and La Otra Cara del Alma in Europe, Asia and
Central America.

Costs and expenses

Costs and expenses decreased 3% during the period, as a result of a 3%
reduction in production, programming and transmission costs—to Ps.1,599
million from Ps.1,650 million in the same period a year ago—and a 1% decrease
in selling and administrative expenses—to Ps.374 million, compared to Ps.379
million in the same quarter of 2012.

The reduction in costs results from growing efficiency in the production of
successful content, derived from solid strategies that control disbursements
effectively; while the performance of sales and administrative expenses is
mainly related to lesser operations and travelling expenses in the period.

EBITDA and net result

EBITDA was Ps.847 million, compared to Ps.966 million in the same period of
last year; the most significant change below EBITDA was a Ps.44 million
improvement in the comprehensive financing result, derived from a reduction in
other financing expenses.

Net loss for the quarter was Ps.85 million, from a net income of Ps.40 million
last year.

Debt

As of June 30, 2013, Azteca´s outstanding debt—excluding Ps.1,560 million debt
due in 2069—was Ps.8,781 million, 9% below the Ps.9,621 million from the
previous year.

The cash balance of the company was Ps.6,877 million, compared to Ps.7,764
million a year ago. As a result, net debt was Ps.1,904 million, from Ps.1,857
million from the prior year. Debt to last twelve months (LTM) EBITDA ratio was
2.1 times, and net debt to LTM EBITDA was 0.5 times.

Fiber optic network

At the end of the quarter, Azteca installed 12,000 kilometers of fiber optic
cable in Colombia, as part of a telecommunications project that will include a
19,000 kilometer network. Current coverage includes 452 municipalities, with
the final goal of 753 where the network will be deployed.

As previously announced, Azteca is building in Colombia the largest fiber
optic network in Latin America. The network represents a significant increase
in the telecommunications service infrastructure; according to estimates by
the Colombian government, the number of municipalities covered with fiber
optic will increase from 27% to 96%, which facilitates the development of
Colombia.

The commercialization of telecommunications services will diversify and
strengthen Azteca revenue sources, adding to existing solid results in the
media business. The Colombian government is contributing about US$235 million
for the network construction.

Six months results

Net sales in the semester were Ps.5,236 million, compared to the Ps.5,745
million of the previous year. Total costs and expenses were Ps.3,776 million,
4% below the Ps.3,929 million for the same period of 2012, derived mainly from
strict budgeting and effective control in disbursements for content
production.

Azteca reported EBITDA of Ps.1,460 million, compared to Ps.1,816 million from
the prior year; EBITDA margin was 28% for the period. The company recorded net
income of Ps.67 million, compared to Ps.478 million for the same period of
2012.

 
                      6M 2012        6M 2013        Change
                                                    Ps.             %
                                                                     
Net sales              $ 5,745        $ 5,236        $ (508)        -9%
                                                                     
EBITDA                 $ 1,816        $ 1,460        $ (356)        -20%
                                                                     
Net income             $ 478          $ 67           $ (411)        -86%
                                                                     
Net income per CPO     $ 0.16         $ 0.02         $ (0.14)       -86%
 
Figures in millions of pesos.
EBITDA: Operating Profit Before Depreciation and Amortization. 
The number of CPOs outstanding as of June 30, 2012 was 2,985 million and as of
June 30, 2013 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 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.

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of June 31 of 2012 and 2013 )
                                                                          
                                                                          
                              Second Quarter of :                         
                              2012            2013                        
                                                              Change
                                                                          
Net revenue                    Ps 2,994  100%  Ps 2,820  100%  Ps (174)  -6%
                                                                          
Programming, production and    1,650     55%   1,599     57%   (50)      -3%
transmission costs
Selling and administrative     379       13%   374       13%   (5)       -1%
expenses
Total costs and expenses       2,028     68%   1,973     70%   (55)      -3%
                                                                          
EBITDA                         966       32%   847       30%   (119)     -12%
                                                                          
Depreciation and amortization  140             144             3          
Other expense -Net             94              150             56         
                                                                          
Operating profit               732       24%   553       20%   (179)     -24%
                                                                          
Equity in income from          (13)            1               14         
affiliates
                                                                          
Comprehensive financing                                                   
result:
Interest expense               (245)           (224)           21         
Other financing expense        (109)           (49)            61         
Interest income                66              45              (21)       
Exchange loss -Net             (210)           (227)           (18)       
                               (499)           (455)           44         
                                                                          
Income before the following    221       7%    99        4%    (121)     -55%
provision
                                                                          
Provision for income tax       (184)           (188)           (4)        
                                                                          
Net income                     Ps 37           Ps (89)         Ps (125)   
                                                                          
Non-controlling share in net   Ps (4)          Ps (4)          Ps 0       
profit
                                                                          
Controlling share in net       Ps 40     1%    Ps (85)   -3%   Ps (125)  -311%
profit 

 
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of June 31 of 2012 and 2013 )
                                                                           
                                                                           
                                  Period ended June 30,                    
                                  2012           2013                      
                                                                Change
                                                                           
Net revenue                        Ps 5,745 100%  Ps 5,236 100%  Ps (508) -9%
                                                                           
Programming, production and        3,205    56%   3,022    58%   (183)    -6%
transmission costs
Selling and administrative         724      13%   754      14%   30       4%
expenses
Total costs and expenses           3,929    68%   3,776    72%   (153)    -4%
                                                                           
EBITDA                             1,816    32%   1,460    28%   (356)    -20%
                                                                           
Depreciation and amortization      270            292            23        
Other expense -Net                 152            209            57        
                                                                           
Operating profit                   1,395    24%   959      18%   (436)    -31%
                                                                           
Equity in income from affiliates   1              (9)            (9)       
                                                                           
Comprehensive financing result:                                            
Interest expense                   (489)          (464)          24        
Other financing expense            (122)          (60)           62        
Interest income                    120            87             (33)      
Exchange loss -Net                 (9)            (20)           (12)      
                                   (500)          (459)          41        
                                                                           
Income before the following        895      16%   491      9%    (404)    -45%
provision
                                                                           
Provision for income tax           (425)          (432)          (7)       
                                                                           
Net income                         Ps 471         Ps 59          Ps (411)  
                                                                           
Non-controlling share in net       Ps (7)         Ps (7)         Ps (0)    
profit 
                                                                           
Controlling share in net profit    Ps 478   8%    Ps 67    1%    Ps (411) -86%

 
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of June 30 of 2012 and 2013)
                                                                      
                                                                      
                                      At June 30                      
                                      2012       2013                 
                                                           Change
Current assets:                                                       
Cash and cash equivalents              Ps 7,764   Ps 6,877  Ps (887)  
Accounts receivable                    7,270      6,347     (923)     
Other current assets                   2,381      2,660     279       
                                                                      
Total current assets                   17,415     15,884    (1,531)  -9%
                                                                      
Exhibition rights                      1,367      1,792     425       
Property, plant and equipment-Net      3,480      3,411     (69)      
Television concessions-Net             7,721      7,721     --        
Other assets                           1,280      1,885     605       
Deferred income tax asset              4,286      4,672     386       
Total long term assets                 18,134     19,481    1,347    7%
                                                                      
Total assets                           Ps 35,549 Ps 35,365 Ps (184)  -1%
                                                                      
                                                                      
Current liabilities:                                                  
Short-term debt                        Ps 667    Ps 667    Ps --      
Other current liabilities              2,672      2,639     (33)      
                                                                      
Total current liabilities              3,339      3,306     (33)     -1%
                                                                      
Long-term debt:                                                       
Structured Securities Certificates     4,944      4,278     (666)     
Long-term debt                         4,010      3,836     (174)     
Total long-term debt                   8,954      8,114     (840)     
Other long term liabilities:                                          
Advertising advances                   7,664      6,951     (713)     
American Tower Corporation (due 2069)  1,635      1,560     (75)      
Deferred income tax asset              3,106      3,463     357       
                                                                      
Total other long-term liabilities      12,405     11,974    (431)    -3%
                                                                      
Total liabilities                      24,698     23,394    (1,304)  -5%
                                                                      
Total stockholders' equity             10,851     11,971    1,120    10%
                                                                      
Total liabilities and equity           Ps 35,549 Ps 35,365  Ps (184) -1%

CONTACT: Investor Relations:
         Bruno Rangel
         + 52 (55) 1720 9167
         jrangelk@tvazteca.com.mx
        
         Carlos Casillas
         +52 (55) 17 20 91 67
         cjcasillas@tvazteca.com.mx
        
         Press Relations:
         Jaime Ramos
         +52 (55) 17 20 14 16
         jramosr@tvazteca.com.mx
        
         Daniel McCosh
         +52 (55) 17 20 00 59
         dmccosh@tvazteca.com.mx
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