TV Azteca Announces Sales of Ps.2,475 Million and EBITDA of Ps.944 Million in 2Q09

TV Azteca Announces Sales of Ps.2,475 Million and EBITDA of Ps.944 Million in 2Q09

-- Continued Strength in Azteca America as Sales Grow 68% in the Quarter, to Ps.195 Million -- -- Solid Audience Share in Mexico and the U.S.--

MEXICO CITY, July 22 /PRNewswire/ -- TV Azteca, S.A. de C.V. (BMV: TVAZTCA; Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, controlled by Ricardo Salinas, announced today financial results for the second quarter of 2009.

"We were able, once again, to deliver superior results this quarter, despite the weak economic environment," said Mario San Roman, Chief Executive Officer of TV Azteca. "Full day commercial audience share further increased, and demand for advertising time rose in the most significant day parts, which combined with a double digit decline in expenses, resulted in solid EBITDA levels."

Second Quarter Results

Net sales were Ps.2,475 million, 1% above the Ps.2,448 million of the same quarter of 2008. Total costs and expenses were Ps.1,532 million, from Ps.1,514 million in the same period of the previous year.

As a result, TV Azteca reported EBITDA of Ps.944 million, 1% above the Ps.934 million in the second quarter of 2008. The EBITDA margin in the period was 38%, consistent with the margin of the year-ago quarter. The company registered net majority income of Ps.307 million, compared to net income of Ps.323 million a year ago.

Net Sales

"Full day commercial audience share in Mexico rose to 41% from 39% a year ago, as a result of additional strength in prime time and pre-prime time slots," added Mr. San Roman. "Many advertisers found in the successful programming an unparalleled opportunity to effectively transmit the attributes of their brands to their target markets."

The popularity of the programming of Azteca America--the company's wholly owned broadcast television network focused on the U.S. Hispanic market--also grew significantly in the quarter; prime time audience share, individuals 18-49(1), rose 38%

TV Azteca reported sales from Azteca America of Ps.195 million, 68% higher than the Ps.116 million a year ago.

First quarter revenue includes sales of Ps.39 million from Proyecto 40--UHF channel with pluralistic content in Mexico--compared to Ps.51 million in the same period of the prior year.

Revenue from barter sales was Ps.92 million, compared to Ps.88 million from the previous year.

Costs and Expenses

Total costs and expenses grew 1% as a result of a 4% increase in programming, production and transmission costs--to Ps.1,263 million, from Ps.1,212 million in the same period a year ago--and an 11% reduction in selling and administrative expenses--to Ps.268 million, from Ps.302 million in the same quarter of 2008.

The increase in costs reflects the effect of the exchange rate depreciation on the peso amount of costs and expenses of Azteca America, as well as on the acquired programming that was transmitted during the quarter. Higher costs also result from the transmission of an important number of sports events in the period.

Decrease in selling and administrative expenses derived from reductions in personnel, travel and services expenses, as a result of initiatives that further improve the company's operating efficiency.

EBITDA and Net Income

EBITDA was Ps.944 million, compared to Ps.934 million in the same period of the prior year.

The main change below EBITDA was a Ps.22 million increase in other expenses. Net majority income of the quarter was Ps.307 million, compared to net income of Ps.323 million a year ago.

Debt

As of June 30, 2009, TV Azteca's outstanding debt--excluding Ps.1,581 million debt due 2069--was Ps.7,144 million; this last figure is peso denominated.

The cash balance was Ps.2,748 million, which resulted in net debt of Ps.4,396 million. Debt to last twelve months (LTM) EBITDA ratio was 1.8 times, and net debt to LTM EBITDA was 1.1 times.

Six Months Results

Net sales in the first six months of the year were Ps.4,470 million, up 4% from the Ps.4,292 million of the same period of 2008. Total costs and expenses were Ps.2,921 million, from Ps.2,825 million in the same period a year ago. As a result, TV Azteca recorded EBITDA of Ps.1,550 million, 6% higher than Ps.1,467 million in the first half of the prior year. The EBITDA margin of the six month period was 35%, from 34% a year ago.

The company recorded a majority net income of Ps.93 million, compared to net loss of Ps.302 million in the same period of 2008, mainly as a result of a Ps.336 million reduction in provision for taxes this quarter.

Company Profile

TV 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. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing U.S. Hispanic market, and Azteca Web, an Internet company for North American Spanish speakers.

TV 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 a as a management development and decision forum for the top leaders of member companies. The companies include: TV Azteca (www.irtvazteca.com), Azteca America (www.aztecaamerica.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), 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 TV Azteca and its subsidiaries are identified in documents sent to securities authorities.

(1) Source: The Nielsen Company NPM. 2Q 2008- 2Q 2009 (Broadcast weeks) Monday-Friday Day part averages Live Impressions Total 18-49.

Source: TV Azteca, S.A. de C.V.

CONTACT: Investor Relations Contacts: Bruno Rangel, + 52(55) 1720 9167,
jrangelk@tvazteca.com.mx or Dinorah Macias, + 52 (55) 1720 0041,
dmacias@tvazteca.com.mx, both of TV Azteca, S.A. de C.V.; or for Press
Relations: Tristan Canales, + 52 (55) 1720 1441, tcanales@gruposalinas.com.mx,
for TV Azteca, S.A. de C.V.,or Daniel McCosh of TV Azteca, S.A. de C.V., + 52
(55) 1720 0059, dmccosh@tvazteca.com.mx

Web Site: http://www.gruposalinas.com/

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