Grupo Elektra Announces Revenue of Ps.17,355 Million, and EBITDA of Ps.1,905 Million in 2Q13

Grupo Elektra Announces Revenue of Ps.17,355 Million, and EBITDA of Ps.1,905
Million in 2Q13

   —Strong increase in consolidated gross portfolio, grows 27% to Ps.77,085
                                   million—

        —The number of credit accounts increases 37% to 18.8 million—

 —Current costs and expenses related to the expansion of the credit business
                      will translate into future yields—

MEXICO CITY, July 19, 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 second quarter, and first half of 2013.

Consolidated first quarter results

Consolidated revenue was Ps.17,355 million, up 2% from Ps.17,046 million for
the last year. Costs and operating expenses were Ps.15,451 million, from
Ps.14,233 million in the same period of 2012.

Grupo Elektra reported EBITDA of Ps.1,905 million, compared to Ps.2,813
million for the previous year; EBITDA margin was 11% this quarter. The company
reported a net loss of Ps.1,124 million, from a loss of Ps.19,188 million a
year ago.


                         2Q 2012        2Q 2013       Change
                                                      Ps.           %
                                                                   
Consolidated revenue      $17,046       $17,355      $310        2%
                                                                   
EBITDA                    $2,813        $1,905       $(908)      -32%
                                                                   
Net result                $(19,188)     $(1,124)     $18,064     94%
                                                                   
Net result per share      $(80.86)      $(4.74)      $76.12      94%

Figures in millions of pesos
*As of June 30, 2012, Elektra outstanding shares were 237.3 million and as of
June 30, 2013, were 237.2 million.

Revenue

Consolidated revenue grew 2%, as a result of an increase of 9% in financial
revenue and a 13% reduction in commercial sales. 

Financial revenue grew to Ps.12,298 million, from Ps.11,260 million last year.
The dynamism of Banco Azteca Mexico income significantly contributed to the
growth of the financial business. Banco Azteca revenue increased 5%, to
Ps.8,403 million from Ps.7,993 million, mainly as a result of an expansion of
personal loans, and Presta Prenda credits.

Advance America — the largest non-bank provider of cash advance services in
the US— acquired by the company during the second quarter of the previous
year, and which consolidates its results in Grupo Elektra's financial
statements, also contributed to the increase, with Ps.268 in revenue.

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 66% a year ago.

The decrease in commercial revenue is in the context of removal of low margin
products, as well as 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 8% to Ps.6,901 million, from
Ps.7,490 million from the previous year. The change mainly derives from a 2%
increase in financial cost —to Ps.3,403 million compared to Ps.3,347 million a
year ago— and a 16% 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.

Consolidated operating expenses were Ps.8,550 million, compared to Ps.6,743
million for the same quarter of the previous year; the growth is due mainly to
increases in operations and personnel 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 will translate into a larger credit portfolio that generates
solid benefits in the future.

Grupo Elektra currently has 6,517 points of sale, 11% above the 5,871 from a
year ago. This change is mainly due to the opening of 658 new financial
services branches— as part of the company's strategy to further strengthen
this business segment.

The increase in points of sale, and the further specialization of the sales
force resulted in a 12% increase in the number of employees, to 77,473 at the
end of the quarter, compared to 69,397 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.1,905 million, compared to Ps.2,813 million a year
ago; the EBITDA margin for the quarter was 11%. The major expenses associated
to the growth of the credit portfolio contribute to the reduction of EBITDA
this quarter, however we anticipate solid returns of that growth of portfolio
in the future.

The most significant change below EBITDA was a positive variation of Ps.26,052
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.1,124 million, from net loss of
Ps.19,188 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 June 30, 2013, was Ps.77,085
million, 27% higher than the Ps.60,524 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 8.1% at the end of
the period.

It is expected that the solid growth of the portfolio will result in
significant financial revenues for Grupo Elektra in the future.

The most significant driver of the consolidated gross portfolio was a 24%
growth in the gross portfolio of Banco Azteca Mexico, to Ps.62,892 million
from Ps.50,626 million.

The delinquency rate of Banco Azteca Mexico at the end of the quarter was
7.9%. The non-performing loan portfolio is reserved 1.3 times.

At the end of the quarter, the bank had a total of 18.8 million active credit
accounts, 37% above the 13.7 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
second quarter.

Banco Azteca Mexico deposits were Ps.70,756 million, 21% higher than last
year. The total number of active savings and deposit accounts of the bank was
17.7 million, an increase of 20% compared to 14.8 million at the end of the
same period a year ago.

As of June 30, 2013, the capitalization index of Banco Azteca Mexico was
14.1%. The company considers the index to be at a level that optimizes equity
profitability.

Debt

As of June 30, 2013, consolidated total debt with cost was Ps.22,535 million,
of which Ps.18,103 million correspond to the commercial business, and Ps.4,432
million to the financial business.

The balance of cash, cash equivalents and marketable securities for the
commercial business was Ps.24,385 million at the end of the period; as a
result, net cash for the commercial business –excluding debt with cost– was a
positive Ps.6,282 million.

Six months results

Total consolidated revenue in the first six months of the year was Ps.34,927
million, 9% higher than the Ps.32,154 million for the same period of 2012.The
company reported EBITDA of Ps.4,955 million, compared to Ps.6,121 million for
the same period a year ago; the EBITDA margin in the first six months of 2013
was 14%.The company registered a consolidated net loss of Ps.1,706 million,
compared to a loss of Ps.23,021 million a year ago, mainly due to a lower
depreciation this period in the market value of underlying financial
instruments that the company holds, which doesn't imply cash flow, compared to
the prior year.


                    6M 2012          6M 2013        Change                
                                                   Ps.           %
                                                                
Consolidated revenue $32,154        $34,927       $2,773      9%
                                                                
EBITDA               $6,121         $4,955        $1,167      -19%
                                                                
Net result           $(23,021)      $(1,706)      $21,315     93%
                                                                
Net result per share $(97.01)       $(7.19)       $89.82      93%

Figures in million of pesos.
As of June 30, 2012, Elektra* outstanding shares were 237.3 million and the
number of shares as of June 30, 2013was 237.2 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
                                                                    
                                  2Q12            2Q13          Change
                                                                    
Financial income                   11,260   66%   12,298  71%  1,038   9%
Commercial income                  5,786    34%   5,057   29%  (728)   -13%
Income                             17,046   100%  17,355  100% 310     2%
                                                                    
Financial cost                     3,347    20%   3,403   20%  57      2%
Commercial cost                    4,143    24%   3,497   20%  (646)   -16%
Costs                              7,490    44%   6,901   40%  (589)   -8%
                                                                    
Gross income                       9,556    56%   10,455  60%  899     9%
                                                                    
Sales, administration and          6,743    40%   8,550   49%  1,807   27%
promotion expenses
Depreciation and amortization      569      3%    656     4%   88      15%
Operating expenses                 7,311    43%   9,206   53%  1,895   26%
                                                                    
Operating income                   2,244    13%   1,249   7%   (996)   -44%
                                                                    
EBITDA                            2,813    17%   1,905   11%  (908)   -32%
                                                                    
Comprehensive financial result:                                      
Interest income                   473      3%    212     1%   (261)   -55%
Interest expense                  (492)    -3%   (379)   -2%  114     23%
Foreign exchange gain, net        43       0%    191     1%   148     ----
Other financial results, net      (28,993) -170% (2,942) -17% 26,052  90%
                                  (28,970) -170% (2,917) -17% 26,052  90%
                                                                    
Other income (expense), net        2        0%    (3)     0%   (5)     ----
                                                                    
Participationinthenetincome of
CASA and other associated          44       0%    57      0%   13      30%
companies
                                                                    
Loss before income tax             (26,680) -157% (1,615) -9%  25,065  94%
                                                                    
Income tax                         7,492    44%   491     3%   (7,000) -93%
                                                                    
Consolidated net loss             (19,188) -113% (1,124) -6%  18,064  94%


GRUPO ELEKTRA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
MILLIONS OF MEXICAN PESOS
                                                                    
                                  6M12            6M13          Change
                                                                    
Financial income                   20,336   63%   24,766  71%  4,430   22%
Commercial income                  11,818   37%   10,161  29%  (1,657) -14%
Income                             32,154   100%  34,927  100% 2,773   9%
                                                                    
Financial cost                     5,955    19%   6,570   19%  615     10%
Commercial cost                    8,515    26%   7,110   20%  (1,405) -17%
Costs                              14,470   45%   13,679  39%  (790)   -5%
                                                                    
Gross income                       17,684   55%   21,248  61%  3,563   20%
                                                                    
Sales, administration and          11,563   36%   16,293  47%  4,730   41%
promotion expenses
Depreciation and amortization      1,042    3%    1,318   4%   276     26%
Operating expenses                 12,605   39%   17,611  50%  5,006   40%
                                                                    
Operating Income                   5,079    16%   3,637   10%  (1,442) -28%
                                                                    
EBITDA                            6,121    19%   4,955   14%  (1,167) -19%
                                                                    
Comprehensive financial result:                                      
Interest income                   576      2%    261     1%   (315)   -55%
Interest expense                  (917)    -3%   (799)   -2%  118     13%
Foreign exchange loss, net        (299)    -1%   (177)   -1%  122     41%
Other financial results, net      (36,577) -114% (5,543) -16% 31,034  85%
                                  (37,217) -116% (6,259) -18% 30,959  83%
                                                                    
Other income, net                  1        0%    6       0%   5       ----
                                                                    
Participationinthenetincome
expense of CASA and other          75       0%    55      0%   (20)    -26%
associated companies
                                                                    
Loss before income tax             (32,062) -100% (2,561) -7%  29,501  92%
                                                                    
Income tax                         9,041    28%   855     2%   (8,187) -91%
                                                                    
Consolidated net loss              (23,021) -72%  (1,706) -5%  21,315  93%


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 June 30, 2012              At June 30, 2013                       
                                                                            
Cash and cash 1,789     14,516   16,305  2,317     16,300   18,617  2,312    14%
equivalents
                                                                            
Marketable
financial     12,464    13,449   25,913  22,068    14,983   37,051  11,138   43%
instruments
                                                                            
Performing
loan          426       42,296   42,722  455       51,237   51,692  8,969    21%
portfolio
Total
past-due      267       2,757    3,023   273       5,340    5,613   2,590    86%
loans
Gross loan    693       45,053   45,746  728       56,577   57,305  11,559   25%
portfolio
                                                                            
Allowance for 267       5,515    5,781   273       7,917    8,190   2,409    42%
credit risks
                                                                            
Loan
portfolio,    426       39,538   39,964  455       48,660   49,115  9,151    23%
net
                                                                            
Inventories   6,723              6,723   6,808              6,808   85       1%
                                                                            
Other current 5,885     5,322    11,207  7,721     8,405    16,126  4,919    44%
assets
                                                                            
Total current 27,288    72,825   100,113 39,369    88,348   127,718 27,605   28%
assets
                                                                            
Financial     10,751    --      10,751  --       --      --     (10,751) ----
instruments
                                                                            
Performing
loan          --       14,248   14,248  --       19,183   19,183  4,936    35%
portfolio
Total
past-due      --       531      531     --       597      597     66       12%
loans
Loan          --       14,778   14,778  --       19,780   19,780  5,002    34%
portfolio
                                                                            
Other
non-current   8,086     --      8,086   754       0        754     (7,332)  ----
assets
                                                                            
Investment in 2,547              2,547   3,950     --      3,950   1,403    55%
shares
Property,
furniture,
equipment and 4,192     2,331    6,523   4,576     2,892    7,467   944      14%
investment in
stores, net
Intangible    634       7,004    7,637   626       6,594    7,220   (418)    -5%
assets
Other assets  443       123      566     736       191      927     361      64%
TOTAL ASSETS  53,940    97,061   151,001 50,011    117,805  167,816 16,815   11%
                                                                            
Demand and              60,018   60,018            76,803   76,803  16,785   28%
term deposits
Creditors
from                    5,019    5,019             2,314    2,314   (2,704)  -54%
repurchase
agreements
Short-term    5,505     882      6,387   3,608     3,325    6,933   546      9%
debt
Short-term
liabilities   5,505     65,918   71,424  3,608     82,442   86,050  14,627   20%
with cost
                                                                            
Suppliers and
other         7,247     5,050    12,298  6,487     7,194    13,681  1,384    11%
short-term
liabilities
Short-term
liabilities   7,247     5,050    12,298  6,487     7,194    13,681  1,384    11%
without cost
                                                                            
Total
short-term    12,753    70,969   83,721  10,095    89,637   99,732  16,010   19%
liabilities
                                                                            
Long-term     13,778    1,129    14,907  14,495    1,107    15,602  695      5%
debt
Long-term
liabilities   13,778    1,129    14,907  14,495    1,107    15,602  695      5%
with cost
                                                                            
Long-term
liabilities   8,338     1,756    10,095  7,771     1,245    9,016   (1,079)  -11%
without cost
                                                                            
Total
long-term     22,116    2,886    25,002  22,265    2,352    24,617  (384)    -2%
liabilities
                                                                            
TOTAL         34,869    73,854   108,723 32,360    91,989   124,349 15,626   14%
LIABILITIES
                                                                            
TOTAL
STOCKHOLDERS' 19,071    23,207   42,278  17,651    25,816   43,467  1,189    3%
EQUITY
                                                                            
LIABILITIES + 53,940    97,061   151,001 50,011    117,805  167,816 16,815   11%
EQUITY


INFRASTRUCTURE
                                                                     
                                2Q12             2Q13            Change
                                                                     
Points of sale in Mexico                                              
Elektra (1)                      961        16%  968       15%  7       1%
Salinas y Rocha (1)              55         1%   55        1%   --      0%
Freestanding branches (2)        1,825      31%  2,342     36%  517     28%
Total                            2,841      48%  3,365     52%  524     18%
                                                                     
Points of sale in Central and                                         
South America
Elektra (3)                      233        4%   214       3%   (19)    -8%
Freestanding branches            326        6%   452       7%   126     39%
Total                            559        10%  666       10%  107     19%
                                                                     
Points of sale in North America                                       
Advance America                  2,471      42%  2,486     38%  15      1%
Total                            2,471      42%  2,486     38%  15      1%
                                                                     
TOTAL                            5,871      100% 6,517     100% 646     11%
                                                                     
                                                                     
(1) Each store has a Banco Azteca branch.
(2) In 2Q13, includes 46 Bodegas de Remate that continues operating only
financial services.
(3) In 2Q13, only 204 Central and South America Elektra's store have a Banco
Azteca branch.

                                                                     
Floor space (m²)                                                      
Elektra Mexico                   831,862    53%  836,625   51%  4,762   1%
Elektra Central and South        164,482    10%  154,619   9%   (9,863) -6%
America
Salinas y Rocha                  58,995     4%   58,995    4%   --      0%
Freestanding branches            188,825    12%  245,960   15%  57,136  30%
Advance America                  338,500    21%  340,623   21%  2,123   1%
TOTAL                            1,582,664  100% 1,636,821 100% 54,157  3%
                                                                     

                                                                     
Employees                                                             
Mexico                           52,979     76%  58,578    76%  5,599   11%
Central and South America        10,275     15%  12,566    16%  2,291   22%
North America                    6,143      9%   6,329     8%   186     3%
Total employees                  69,397     100% 77,473    100% 8,076   12%

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
 
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