Grupo Radio Centro Reports Fourth Quarter and Year-End Results for the Period Ended December 31, 2007

Grupo Radio Centro Reports Fourth Quarter and Year-End Results for the Period Ended December 31, 2007

MEXICO CITY, Feb. 19 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B. de C.V. (NYSE:RC)(NYSE:BMV:)(NYSE:RCENTRO-A) (the "Company"), one of Mexico's leading radio broadcasting companies, announced today its results of operations for the fourth quarter and year ended December 31, 2007. All figures were prepared in accordance with the Mexican Financial Reporting Standards ("MFRS") issued by the Mexican Board for Research and Development of Financial Information Standards and have been restated in constant pesos as of December 31, 2007.

Fourth Quarter Results

Broadcasting revenue for the fourth quarter 2007 was Ps. 206,960,000, a 0.5% increase compared to the Ps. 205,961,000 reported in the fourth quarter 2006. This increase was mainly attributable to higher advertising expenditures by the Company's clients, who purchased more airtime in the fourth quarter 2007 compared to the fourth quarter 2006.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the fourth quarter 2007 were Ps. 109,899,000, a 4.6% increase compared to Ps. 105,054,000 reported in the fourth quarter 2006. This increase was primarily due to an increase in market research and advertising campaign expenses in the fourth quarter 2007.

For the fourth quarter 2007, the Company reported broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 97,061,000, a 3.8% decrease compared to the Ps. 100,907,000 reported in the fourth quarter 2006. This decrease in broadcasting income was mainly attributable to the increase in broadcasting expenses described above.

Depreciation and amortization expense for the fourth quarter 2007 was Ps. 8,051,000, a 13.1% decrease compared to the Ps. 9,266,000 reported in fourth quarter of 2006. This decrease was attributable to the Company no longer recording depreciation on certain assets due to the conclusion of its useful life after the fourth quarter 2006.

The Company's corporate, general and administrative expenses were Ps. 4,916,000 in the fourth quarter 2007, a slight increase compared to the Ps. 4,897,000 reported in the fourth quarter 2006.

The Company reported operating income of Ps. 84,094,000 in the fourth quarter 2007, a 3.1% decrease compared to the Ps. 86,744,000 in operating income of the fourth quarter 2006. This decrease was mainly due to an increase in broadcasting expenses during the fourth quarter 2007 compared to the fourth quarter 2006.

During the fourth quarter 2007, other expenses, net were Ps. 14,152,000, a 14.0% decrease compared to the Ps. 16,464,000 reported in the fourth quarter 2006. This decrease is primarily attributable to the recording of non- recurring expenses during 2006 in connection with the Company's 60th anniversary celebration.

The Company's comprehensive financing cost for the fourth quarter 2007 was Ps. 745,000, compared to a comprehensive financing cost of Ps. 31,738,000 in the fourth quarter 2006. This favorable change was mainly due to lower interest expenses in the fourth quarter 2007 which totaled Ps. 781,000 compared to the fourth quarter 2006, when the Company classified as 'interest expenses' the excess of book value over the purchase price obtained on the sale of certain accounts receivable of Ps. 27,877,000.

For the fourth quarter 2007, the Company reported income before extraordinary items of Ps. 69,197,000, a 79.5% increase compared to the Ps. 38,542,000 reported in the fourth quarter 2006, mainly as a result of the decrease in the comprehensive financing cost described above.

The Company's income before income taxes was the same as income before extraordinary items (Ps. 69,197,000) as the Company did not have any extraordinary items in the fourth quarter 2007. Income before income taxes in the fourth quarter 2006 was Ps. 41,902,000, reflecting an extraordinary item of Ps. 3,360,000 due to an inflation adjustment recorded in June 2006 in connection with the reversal of the provision for the contingent liability related to the arbitration proceeding.

The Company recorded income taxes of Ps. 23,161,000 in the fourth quarter 2007, compared to a negative provision of Ps. 4,700,000 in the fourth quarter 2006. This increase was primarily due to higher taxable income in the fourth quarter 2007 compared to the fourth quarter of 2006.

As a result of the foregoing, the Company's net income for the fourth quarter 2007 was Ps. 46,036,000, compared to net income of Ps. 46,602,000 in the fourth quarter 2006.

Twelve-Month Results

For the year ended December 31, 2007, broadcasting revenue was Ps. 654,760,000, a 20.7% decrease compared to the Ps. 825,588,000 reported in the same period of 2006. The decrease was mainly attributable to a decrease in advertising expenditures by political parties, which purchased more airtime in 2006 in connection with the July 2006 presidential and congressional elections.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the year ended December 31, 2007 were Ps. 421,970,000, an 8.3% decrease compared to the Ps. 460,070,000 reported in the same period 2006. This decrease was primarily due to a lower allowance for doubtful accounts, a decrease in sales commissions to the Company's general sales force resulting from the decrease in broadcasting revenue, and a lower provision for severance payments to Company employees (in accordance with Bulletin D-3 "Labor Obligations" under MFRS) during the year ended December 31, 2007 compared to 2006.

Broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) for the year ended December 31, 2007 was Ps. 232,790,000, a 36.3% decrease compared to the Ps. 365,518,000 reported in the same period 2006. This decrease was mainly attributable to the decrease in broadcasting revenue described above.

Depreciation and amortization expense for the year ended December 31, 2007 was Ps. 33,687,000, a 9.4% decrease compared to the Ps. 37,183,000 reported in the same period 2006. This decrease was attributable to the Company no longer recording depreciation on certain assets due to the conclusion of its useful life after the fourth quarter 2006.

The Company's corporate, general and administrative expenses for the year ended December 31, 2007 were Ps. 14,774,000, a 0.3% decrease compared to the Ps. 14,813,000 reported in 2006.

As a result of the foregoing, the Company reported operating income of Ps. 184,329,000 for the year ended December 31, 2007, a 41.2% decrease compared to the Ps. 313,522,000 in 2006.

Other expenses, net, for the year ended December 31, 2007 were Ps. 45,806,000, a 23.0% decrease compared to the Ps. 59,511,000 of 2006. This decrease was mainly attributed to lower legal expenses during 2007 compared to 2006, as well as non-recurring expenses incurred during 2006 in connection with the Company's 60th anniversary celebration.

The Company's comprehensive financing cost for the year ended December 31, 2007 was Ps. 5,850,000, an 85.3% decrease compared to the Ps. 39,842,000 reported in 2006. This favorable change was mainly due to a decrease in interest expense during, 2007 compared to 2006, when (i) the Company no longer recording interest on bank debt after paying off the remaining balance of its bank debt in May 2006, and (ii) the Company classified as interest expenses the excess of book value over the price obtained from the sale of certain accounts receivable.

For the year ended December 31, 2007, the Company reported income before extraordinary item of Ps. 132,673,000, a 38.1% decrease compared to the Ps. 214,169,000 reported in 2006, mainly as a result of the decrease in broadcasting revenue described above.

For the year ended December 31, 2007, the Company reported income before income taxes of Ps. 132,673,000, a 72.2% decrease compared to the Ps. 477,692,000 reported in 2006. In addition to higher broadcasting revenue, the 2006 period benefited from extraordinary items of Ps. 263,523,000, resulting from the reversal in June 2006 of the provision for the contingent liability related to the arbitration proceeding.

The Company recorded income taxes of Ps. 41,554,000 for 2007, compared to Ps. 42,944,000 in 2006.

As a result of the foregoing, the Company reported net income of Ps. 91,119,000 in 2007, compared to net income of Ps. 434,748,000 in 2006.

Company Description

Grupo Radio Centro owns and/or operates 14 radio stations. Of these 14 radio stations, Grupo Radio Centro operates 11 in Mexico City. The Company's principal activities are the production and broadcasting of musical and entertainment programs, talk shows, news and special events programs. Revenue is primarily derived from the sale of commercial airtime. In addition to the Organizacion Radio Centro radio stations, the Company also operates Grupo RED radio stations and Organizacion Impulsora de Radio (OIR), a radio network that acts as the national sales representative for, and provides programming to, Grupo Radio Centro-affiliated radio stations.

Note on Forward Looking Statements

This release may contain projections or other forward-looking statements related to Grupo Radio Centro that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Grupo Radio Centro with the United States Securities and Exchange Commission, specifically the most recent filing on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to Grupo Radio Centro on the date hereof, and Grupo Radio Centro assumes no obligation to update such statements.

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED AUDITED BALANCE SHEETS
as of December 31, 2007 and 2006
in Mexican Pesos ("Ps.") with purchasing power as of December 31, 2007
(figures in thousands of Ps. and U.S. dollars ("U.S.$")(1)

December 31,
2007 2006
U.S.$(1) Ps. Ps.
ASSETS
Current assets:
Cash and temporary investments 15,298 167,011 101,741

Accounts receivable:
Broadcasting, net 17,927 195,707 256,601
Other 427 4,663 19,367
18,354 200,370 275,968

Prepaid expenses 3,056 33,360 26,469
Total current assets 36,708 400,741 404,178

Property and equipment, net 42,279 461,555 481,220
Deferred charges, net 554 6,047 4,631
Excess of cost over book value of
net assets of subsidiaries, net 75,925 828,863 828,734
Other assets 298 3,239 3,410
Total assets 155,764 1,700,445 1,722,173

LIABILITIES
Current:
Advances from customers 11,397 124,418 132,546
Suppliers and other accounts
payable 5,077 55,420 47,256
Taxes payable 4,658 50,847 90,831
Total current liabilities 21,132 230,685 270,633

Long-Term:
Reserve for labor liabilities 5,368 58,605 54,706
Deferred taxes 470 5,130 9,389
Total liabilities 26,970 294,420 334,728

SHAREHOLDERS' EQUITY
Capital stock 103,547 1,130,410 1,130,410
Cumulative earnings 30,525 333,241 314,077
Reserve for repurchase of shares 4,016 43,837 43,837
Cumulative effect of deferred
income taxes (9,739) (106,320) (106,320)
Effects from labor liabilities (83) (907) (310)
Surplus on restatement of capital 466 5,084 5,084
Minority interest 62 680 667
Total shareholders' equity 128,794 1,406,025 1,387,445
Total liabilities and
Shareholders' equity 155,764 1,700,445 1,722,173

(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.9169 per U.S.
dollar, the noon buying rate for Mexican pesos on December 31, 2007
as published by the Federal Reserve Bank of New York.

GRUPO RADIO CENTRO, S.A.B. DE C.V.

CONSOLIDATED AUDITED STATEMENTS OF INCOME for the three-month and twelve-month periods ended December 31, 2007 and 2006

expressed in Mexican Pesos ("Ps.") with purchasing power as of

December 31, 2007 (figures in thousands of Ps. and U.S. dollars ("U.S. $")(1), except per Share

and per ADS amounts)

4th Quarter Accumulated 12 months
2007 2006 2007 2006
U.S.$(1) Ps. Ps. U.S.$(1) Ps. Ps.

Broadcasting
revenue(2) 18,958 206,960 205,961 59,977 654,760 825,588
Broadcasting expenses,
excluding
depreciation,
amortization and
corporate, general
and administrative
expenses 10,067 109,899 105,054 38,653 421,970 460,070
Broadcasting income 8,891 97,061 100,907 21,324 232,790 365,518

Depreciation and
amortization 737 8,051 9,266 3,086 33,687 37,183
Corporate, general
and administrative
expenses 450 4,916 4,897 1,353 14,774 14,813
Operating income 7,704 84,094 86,744 16,885 184,329 313,522

Other expenses, net(3) (1,296) (14,152) (16,464) (4,196) (45,806) (59,511)

Comprehensive
financing cost:
Interest expense (72) (781) (27,820) (253) (2,767) (37,665)
Interest income (2) (7) (79) (184) 37 399 480
(Loss) Gain on
foreign currency
exchange, net (1) (12) (32) 0 (5) 8
(Loss) Gain on net
monetary position 12 127 (3,702) (318) (3,477) (2,665)
(68) (745) (31,738) (534) (5,850) (39,842)

Income before
extraordinary item
and income taxes: 6,340 69,197 38,542 12,155 132,673 214,169

Extraordinary item 0 0 3,360 0 0 263,523
Income before income
taxes 6,340 69,197 41,902 12,155 132,673 477,692

Income taxes 2,122 23,161 (4,700) 3,806 41,554 42,944
Net income 4,218 46,036 46,602 8,349 91,119 434,748

Net income applicable
to:
Majority interest 4,217 46,025 46,611 8,347 91,098 434,685
Minority interest 1 11 (9) 2 21 63
4,218 46,036 46,602 8,349 91,119 434,748

Net income (loss) per
Series A Share(4) 0.051 0.5598 2.6712
Net income (loss) per
ADS(4) 0.459 5.0382 24.0408
Weighted average
common shares
outstanding (000's)(4) 162,725 162,500

(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.9169 per U.S.
dollar, the noon buying rate for Mexican pesos on December 31, 2007
as published by the Federal Reserve Bank of New York.
(2) Broadcasting revenue for a particular period includes (as a
reclassification of interest income) interest earned on funds
received by the Company pursuant to advance sales of commercial air
time to the extent that the underlying funds were earned by the
Company during the period in question. Advances from advertisers are
recognized as broadcasting revenue only when the corresponding
commercial air time has been transmitted. Interest earned and treated
as broadcasting revenue for the fourth quarter of 2007 and 2006 was
Ps. 1,867,000 and Ps. 1,724,000, respectively. Interest earned and
treated as broadcasting revenue for the twelve months ended December
31, 2007 and 2006 was Ps. 3,333,000 and Ps. 4,797,000, respectively.
(3) "Other expenses, net" include employee profit sharing expenses, which
were previously recorded under "Provisions for income tax and
employee profit sharing". This reclassification is required by
Bulletin D-3 ("Beneficios a los empleados"), published by the Mexican
Board for Research and Development of Financial Information
Standards.
(4) Earnings per share calculations are made for the last twelve months
as of the date of the income statement, as required by the Mexican
Stock Exchange.

Source: Grupo Radio Centro, S.A.B. de C.V.

CONTACT: In Mexico, Pedro Beltran, or Alfredo Azpeitia,
aazpeitia@grc.com.mx, both of Grupo Radio Centro, S.A.B. de C.V.,
+52-55-5728-4800 Ext. 7018; or In NY, Maria Barona, or Peter Majeski, both of
i-advize Corporate Communications, Inc. for Grupo Radio Centro, S.A.B. de
C.V., +1-212-406-3690, grc@i-advize.com.mx

Web site:

http://www.radiocentro.com.mx/

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