Azteca Announces 5% Net Sales Growth to Ps.2,327 Million in 1Q11

Azteca Announces 5% Net Sales Growth to Ps.2,327 Million in 1Q11

--EBITDA grows to Ps.777 million in the quarter--

--23% growth in Net Income, to Ps.162 million--

--Consistent gains in commercial audience to 41% full-day share --

MEXICO CITY, April 26, 2011 /PRNewswire/ -- 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 first quarter of 2011.

"Again, we achieved superior results, as a consequence of strong demand for advertising spaces in our content, together with solid execution in the period", commented Azteca CEO Mario San Roman. "The higher demand is related to significant commercial audience levels during the full-day, resulting from our successful programming grid that was complemented with enormously attractive new content, in this quarter, in all of our channels."

First Quarter Results

Net sales were Ps.2,327 million, 5% above the Ps.2,221 million of the same quarter of 2010. Total costs and expenses were Ps.1,550 million, compared to Ps.1,460 million in the same period of the previous year.

As a result, Azteca reported EBITDA of Ps.777 million, 2% above the Ps.761 million in the first quarter of 2010. The EBITDA margin for the period was 33%. The company registered net majority income of Ps.162 million, 23% above the Ps.132 from last year.

1Q 2010 1Q 2011 Change
Ps. %
--- ---

Net Sales $2,221 $2,327 $106 5%

EBITDA $761 $777 $16 2%

Net Income $132 $162 $30 23%

Net Income per CPO $0.04 $0.05 $0.01 23%

Figures in millions of pesos.
EBITDA: Operating Profit Before Depreciation and Amortization.
The number of CPOs outstanding as of March 31, 2010 was 3,009 million
and as of March 31, 2011 was 3,002 million.

Net Sales

"The solid programming in the period translated into a 41% full-day commercial audience share in Mexico, what was the foundation for wide-reaching and high-impact advertising campaigns. Advertisers found an unparalleled structure to show the characteristics of their brands to target markets on our platform," added Mr. San Roman.

First quarter revenue includes sales at Azteca America--the company's wholly-owned broadcast television network focused on the U.S. Hispanic market--of Ps.209 million, 7% higher than the Ps.196 million a year ago.

Revenue from barter sales was Ps.58 million in the period, from Ps.67 million from the previous year.

Costs and Expenses

Total costs and expenses grew 6% in the quarter, as a result of an increase of the same magnitude in programming, production and transmission costs --to Ps.1,268 million, from Ps.1,191 million in the same period a year ago-- and a 5% increase in selling and administrative expenses--to Ps.282 million, from Ps.269 million in the same quarter of 2010.

The increase in costs reflects the production of new successful content for our screens, which was translated into commercial audience share increases and strength in this period's income.

The selling and administrative expenses results are due to higher operating, personnel and services expenses, in the context of growing company operations.

EBITDA and Net Income

EBITDA was Ps.777 million, 2% above the Ps.761 million in the same period of the prior year.

The main change below EBITDA was a decrease of Ps.18 million in comprehensive financing cost, due mainly to lower interest cost on debt combined with higher interest on investments.

Net income for the period was Ps.162 million, 23% above of Ps.132 million from a year ago.

Debt

As of March 31, 2011, Azteca's outstanding debt --excluding Ps.1,433 million debt due 2069--was Ps.7,819 million. The debt is peso denominated --congruent with most of the company income.

The cash balance of the company was Ps.5,658 million, 32% higher than Ps.4,288 million a year ago.

Net debt was Ps.2,161 million, 35% below the Ps.3,318 million from the previous year. Debt to last twelve months (LTM) EBITDA ratio was 1.7 times, and net debt to LTM EBITDA was 0.5 times.

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 a 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), 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.

Investor Relations:
Bruno Rangel Carlos Casillas
+ 52 (55) 1720 9167 + 52 (55) 1720 0041
jrangelk@tvazteca.com.mx cjcasillas@tvazteca.com.mx

Press Relations:
Tristan Canales Daniel McCosh
+ 52 (55) 1720 1441 + 52 (55) 1720 0059
tcanales@gruposalinas.com.mx dmccosh@tvazteca.com.mx

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of March 31 of 2010 and 2011 )

First Quarter of :
-------------------
2010
----

Net revenue Ps 2,221 100%

Programming, production
and transmission costs 1,191 54%
Selling and
administrative
expenses 269 12%
Total costs and
expenses 1,460 66%
-----

EBITDA 761 34%

Depreciation and
amortization 129

Operating profit 632 28%
---

Other expense -Net (114)

Comprehensive financing
result:
Interest expense (211)
Other financing expense (26)
Interest income 25
Exchange Gain -Net 32
(181)
----

Income before the
following provision 338 15%

Provision for income
tax (206)

Net income Ps 132
=== ===

Non-controlling share
in net profit Ps 0
=== ===

Controlling share in
net profit Ps 132 6%
=== ===

First Quarter of :
-------------------
2011
----

Net revenue Ps 2,327 100%

Programming, production
and transmission costs 1,268 54%
Selling and
administrative
expenses 282 12%
Total costs and
expenses 1,550 67%
-----

EBITDA 777 33%

Depreciation and
amortization 124

Operating profit 654 28%
---

Other expense -Net (106)

Comprehensive financing
result:
Interest expense (195)
Other financing expense (24)
Interest income 36
Exchange Gain -Net 20
(162)
----

Income before the
following provision 385 17%

Provision for income
tax (223)

Net income Ps 162
=== ===

Non-controlling share
in net profit Ps 0
=== ===

Controlling share in
net profit Ps 162 7%
=== ===

Change
------

Net revenue Ps 106 5%
--- ---

Programming, production
and transmission costs 77 6%
Selling and
administrative
expenses 13 5%

Total costs and
expenses 90 6%
---

EBITDA 16 2%

Depreciation and
amortization (5)

Operating profit 21 3%
---

Other expense -Net 8

Comprehensive financing
result:
Interest expense 16
Other financing expense 2
Interest income 12
Exchange Gain -Net (11)
18
---

Income before the
following provision 47 14%

Provision for income
tax (17)

Net income Ps 30
=== ===

Non-controlling share
in net profit Ps (0)
=== ===

Controlling share in
net profit Ps 30 23%
=== ===

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of March 31 of 2010 and 2011)

At March 31
-----------
2010
----

Current assets:
Cash and cash equivalents Ps 4,288
Accounts receivable 5,091
Other current assets 2,566

Total current assets 11,945

Long-term accounts receivable
from Pappas 1,919
Exhibition rights 1,076
Property, plant and equipment-
Net 2,996
Television concessions-Net 4,648
Other assets 1,125
Goodwill -Net 159
Deferred income tax asset 4,058
Total long term assets 15,981

Total assets Ps 27,926
== ======

Current liabilities:
Short-term debt Ps 1,602
Other current liabilities 2,591

Total current liabilities 4,193

Long-term debt:
Structured Securities
Certificates 6,000
Long-term debt 5
Total long-term debt 6,005
Other long term liabilities:
Advertising advances 6,571
Exhibition rights payable -
American Tower Corporation (due
2069) 1,493
Deferred income tax asset 3,378

Total other long-term
liabilities 11,442

Total liabilities 21,640

Total stockholders' equity 6,286

Total liabilities and equity Ps 27,926
== ======

At March 31
-----------
2011
----

Current assets:
Cash and cash equivalents Ps 5,658
Accounts receivable 6,930
Other current assets 2,223

Total current assets 14,811

Long-term accounts receivable
from Pappas 1,867
Exhibition rights 1,123
Property, plant and equipment-
Net 3,030
Television concessions-Net 4,756
Other assets 1,054
Goodwill -Net 19
Deferred income tax asset 4,442
Total long term assets 16,291

Total assets Ps 31,102
== ======

Current liabilities:
Short-term debt Ps 1,916
Other current liabilities 2,610

Total current liabilities 4,526

Long-term debt:
Structured Securities
Certificates 5,778
Long-term debt 125
Total long-term debt 5,903
Other long term liabilities:
Advertising advances 7,747
Exhibition rights payable -
American Tower Corporation (due
2069) 1,433
Deferred income tax asset 3,378

Total other long-term
liabilities 12,558

Total liabilities 22,987

Total stockholders' equity 8,115

Total liabilities and equity Ps 31,102
== ======

Change
------
Current assets:
Cash and cash equivalents Ps 1,370
Accounts receivable 1,839
Other current assets (343)

Total current assets 2,866 24%

Long-term accounts receivable
from Pappas (52)
Exhibition rights 47
Property, plant and equipment-
Net 34
Television concessions-Net 108
Other assets (71)
Goodwill -Net (140)
Deferred income tax asset 384
Total long term assets 310 2%

Total assets Ps 3,176 11%
== =====

Current liabilities:
Short-term debt Ps 314
Other current liabilities 19

Total current liabilities 333 8%

Long-term debt:
Structured Securities
Certificates (222)
Long-term debt 120
Total long-term debt (102)
Other long term liabilities:
Advertising advances 1,176
Exhibition rights payable -
American Tower Corporation (due
2069) (60)
Deferred income tax asset -

Total other long-term
liabilities 1,116 10%

Total liabilities 1,347 6%

Total stockholders' equity 1,829 29%

Total liabilities and equity Ps 3,176 11%
== =====

SOURCE Azteca

Azteca

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

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