Grupo Radio Centro Reports Results for the Third Quarter and First Nine Months of 2011

Grupo Radio Centro Reports Results for the Third Quarter and First Nine Months of 2011

MEXICO CITY, Oct. 21, 2011 /PRNewswire/ -- Grupo Radio Centro, S.A.B. de C.V. (NYSE: RC, BMV: RCENTRO-A) (the "Company"), one of Mexico's leading radio broadcasting companies, announced today its results of operations for the third quarter and nine months ended September 30, 2011. All figures were prepared in accordance with International Financial Reporting Standards (IFRS).

Third Quarter Results

The Company's broadcasting revenue in third quarter 2011 totaled Ps. 255,215,000, a 12.9% increase compared to the Ps. 226,147,000 reported in third quarter 2010. This increase was mainly attributable to higher advertising expenditures by the Company's clients in Mexico who purchased more airtime during the third quarter 2011 compared to the same period in 2010.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in third quarter 2011 totaled Ps. 175,318,000, a 1.6% increase compared to the Ps. 172,511,000 reported in third quarter 2010. This increase was mainly attributable to: (i) higher promotion and advertising expenses and (ii) higher commissions paid to the Company's sales force and advertising agencies due to higher broadcasting revenue, in each case, incurred during the third quarter 2011 compared to the same period in 2010.

The Company's broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) in third quarter 2011 totaled Ps. 79,897,000, a 49.0% increase compared to the Ps. 53,636,000 reported in third quarter 2010. This increase was attributable to the increase in broadcasting revenue described above.

The Company's depreciation and amortization expenses in third quarter 2011 totaled Ps. 6,337,000, an 8.7% increase compared to the Ps. 5,828,000 reported in third quarter 2010. This increase was due to a correction in the amortization expenses in the third quarter 2011 compared to the same period in 2010.

The Company's corporate, general and administrative expenses in third quarter 2011 totaled Ps. 2,808,000, the same amount reported in the third quarter 2010.

The Company's operating income in third quarter 2011 totaled Ps. 70,752,000, a 57.2% increase compared to the Ps. 45,000,000 reported in third quarter 2010. This increase was mainly due to the increase in broadcasting income described above.

The Company's other expenses, net, in third quarter 2011 totaled Ps. 12,581,000, a 26.8% increase compared to the Ps. 9,925,000 reported in third quarter 2010. This increase was mainly attributable to a decrease in tax credits combined with an increase in legal expenses, in each case, during the third quarter 2011 compared to the same period in 2010.

The Company's comprehensive financing cost in third quarter 2011 totaled Ps. 5,293,000, a slight increase compared to the Ps. 5,261,000 reported in third quarter 2010.

The Company's income before income taxes in third quarter 2011 totaled Ps. 52,878,000, a 77.4% increase compared to the Ps. 29,814,000 reported in third quarter 2010.

The Company's income taxes totaled Ps. 21,768,000 in third quarter 2011, a 22.1% increase compared to the Ps. 17,827,000 reported in third quarter 2010. This increase was due to an increase in taxable income during third quarter 2011 compared to the same period in 2010.

As a result of the foregoing, the Company's net income in third quarter 2011 totaled Ps. 31,110,000, more than double than the Ps. 11,987,000 reported in the third quarter 2010.

Nine-Month Results

The Company's broadcasting revenue in the nine months ended September 30, 2011 totaled Ps. 674,412,000, a 12.2% increase compared to the Ps. 601,017,000 reported in the same period 2010. This increase was mainly attributable to an increase in advertising expenditures by the Company's clients who purchased more airtime during the first nine months of 2011 than the same period in 2010.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the first nine months 2011 totaled Ps. 513,516,000, a 2.6% increase compared to the Ps. 500,539,000 reported in the same period 2010. This increase was primarily due to (i) higher research and promotion costs, and (ii) higher commissions paid to the Company's sales force and to advertising agencies due to higher broadcasting revenue in the first nine months 2011 compared to the same period in 2010.

The Company's broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) in the first nine months of 2011 totaled Ps. 160,896,000, a 60.1% increase compared to the Ps. 100,478,000 reported in the same period 2010.

The Company's depreciation and amortization expenses in the first nine months 2011 totaled Ps. 17,525,000, a 3.3% decrease compared to the Ps. 18,117,000 reported in the same period 2010. This decrease was due to a reduction in the amount of depreciable assets in the first nine months 2011 compared to the same period in 2010.

The Company's corporate, general and administrative expenses in the first nine months 2011 totaled Ps. 10,365,000, the same amount reported in the same period 2010.

As a result of the foregoing, the Company recorded operating income of Ps. 133,006,000 in the first nine months 2011, an 84.7% increase compared to the Ps. 71,996,000 reported in the same period 2010.

The Company's other expenses, net, for the first nine months 2011 totaled Ps. 43,784,000, a 20.3% increase compared to the Ps. 36,390,000 reported in the same period 2010. This increase was mainly attributable to a decrease in tax credits combined with an increase in legal expenses in the first nine months 2011 compared to the same period in 2010.

The Company's comprehensive cost of financing in the first nine months 2011 totaled Ps. 15,677,000, a decrease of 13.4% compared to the Ps. 18,101,000 reported in the same period 2010. This decrease was mainly attributable to a reduction in the principal amount of the Company's loan with Banco Inbursa, S.A., combined with a reduction in the annual interest rate of the loan, from 13% through March 18, 2010 to 9.5% thereafter.

The Company's income before income taxes in the first nine months 2011 totaled Ps. 73,545,000, a significant increase compared to the Ps. 17,505,000 reported in the same period 2010. This increase was mainly due to the aforementioned increase in broadcasting revenue.

The Company's income taxes in the first nine months 2011 totaled Ps. 43,344,000, a 44.5% increase compared to the Ps. 29,994,000 recorded in the same period 2010. This increase was mainly due to an increase in taxable income during the first nine months 2011 compared to the same period in 2010.

As a result of the foregoing, the Company recorded net income of Ps. 30,201,000 during the first nine months 2011, compared to a net loss of Ps. 12,489,000 in the same period in 2010.

Company Description

Grupo Radio Centro owns and/or operates 15 radio stations. Of these 15 radio stations, 12 are located in Mexico City, two stations are located in Guadalajara and Monterrey, and one station is located in Los Angeles. 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 110 Grupo Radio Centro-affiliated radio stations throughout Mexico.

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.

IR Contacts
In Mexico: In NY:
Pedro Beltran / Alfredo Azpeitia Maria Barona / Peter Majeski
i-advize Corporate
Grupo Radio Centro, S.A.B. de C.V. Communications, Inc.
Tel: (5255) 5728-4800 Ext. 4910 Tel: (212) 406-3690
aazpeitia@grc.com.mx grc@i-advize.com.mx

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of September 30, 2011 and 2010
(figures in thousands of Mexican pesos ("Ps.") and U.S.
dollars ("U.S. $") (1)
--------------------------------------------------------
September 30,
-------------
2011 2010
U.S. $(1) Ps. Ps.
--------- --- ---
ASSETS
------
Current assets:
Cash and
temporary
investments 10,093 135,463 38,656
------ ------- ------

Accounts
receivable:
Broadcasting, net 18,846 252,946 235,483
Other 669 8,976 10,695
Income taxes
recoverable 133 1,782 0
--- ----- ---
19,648 263,704 246,178

Prepaid expenses 2,534 34,009 65,337
----- ------ ------
Total current
assets 32,275 433,176 350,171

Property and
equipment, net 31,875 427,820 442,565
Deferred charges,
net 277 3,723 5,526
Excess of cost
over book value
of net assets of
subsidiaries,
net 61,755 828,863 828,863
Other assets 253 3,404 3,338
--- ----- -----
Total assets 126,435 1,696,986 1,630,463
======= ========= =========

LIABILITIES
-----------
Current:
Notes payable 3,039 40,792 71,305
Advances from
customers 7,494 100,581 57,413
Suppliers and
other accounts
payable 4,859 65,219 65,478
Taxes payable 2,671 35,845 29,501
Total current
liabilities 18,063 242,437 223,697

Long-Term:
Notes payable 4,470 60,000 100,000
Reserve for labor
liabilities 4,646 62,361 67,841
Deferred taxes 1,776 23,842 19,545
----- ------ ------
Total liabilities 28,955 388,640 411,083
------ ------- -------

SHAREHOLDERS'
EQUITY
-------------
Capital stock 78,974 1,059,962 1,059,962
Cumulative
earnings 6,352 85,256 (3,701)
Reserve for
repurchase of
shares 2,234 29,989 29,989
Effect from
Initial Adoption
of IFRS 9,896 132,821 132,821
----- ------- -------
Controlling
Interest 97,456 1,308,028 1,219,071
Non-controlling
Interest 24 318 309
--- --- ---
Total
shareholders'
equity 97,480 1,308,346 1,219,380
------ --------- ---------
Total liabilities
and
Shareholders'
equity 126,435 1,696,986 1,630,463
======= ========= =========

(1) Peso amounts have been translated into U.S. dollars,
solely for the convenience of the reader, at the rate of
Ps. 13.4217 per U.S. dollar, the rate on September 30,
2011.

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three-month and nine-month periods ended September 30, 2011 and 2010
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(1), except per Share and per
ADS amounts)
--------------------------------------------------------------------------------------------------------
3rd Quarter Accumulated 9 months
----------- --------------------
2011 2010 2011 2010
U.S.$ (1) Ps. Ps. U.S.$ (1) Ps. Ps.
--------- --- --- --------- --- ---

Broadcasting revenue (2) 19,015 255,215 226,147 50,248 674,412 601,017
Broadcasting expenses, excluding
depreciation,
amortization and corporate,
general and administrative
expenses 13,062 175,318 172,511 38,260 513,516 500,539
------ ------- ------- ------ ------- -------
Broadcasting income 5,953 79,897 53,636 11,988 160,896 100,478

Depreciation and
amortization 472 6,337 5,828 1,306 17,525 18,117
Corporate, general and
administrative expenses 209 2,808 2,808 772 10,365 10,365
--- ----- ----- --- ------ ------
Operating income 5,272 70,752 45,000 9,910 133,006 71,996

Other expenses, net (937) (12,581) (9,925) (3,262) (43,784) (36,390)

Comprehensive financing cost:
Interest expense (365) (4,895) (5,227) (1,137) (15,266) (18,439)
Interest income (2) 0 0 (44) 0 2 502
(Loss) on foreign currency
exchange, net (30) (398) 10 (31) (413) (164)
(395) (5,293) (5,261) (1,168) (15,677) (18,101)
---- ------ ------ ------ ------- -------

Income (loss) before income
taxes 3,940 52,878 29,814 5,480 73,545 17,505

Income taxes 1,622 21,768 17,827 3,229 43,344 29,994
----- ------ ------ ----- ------ ------
Net income (loss) 2,318 31,110 11,987 2,251 30,201 (12,489)

Net income (loss) applicable to:
Majority interest 2,318 31,109 11,987 2,251 30,197 (12,494)
Minority interest 0 1 0 0 4 5

2,318 31,110 11,987 2,251 30,201 (12,489)
===== ====== ====== ===== ====== =======

Net income per Series A Share (3) 0.047 0.6335 0.1881
Net income per ADS (3) 0.425 5.7015 1.6929
Weighted average common shares
outstanding (000's) (3) 162,725 162,725

(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at
the rate of Ps. 13.4217 per U.S. dollar,
the rate on September 30, 2011.

(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 third quarter of
2011 and 2010 was Ps. 1,215,000
and Ps. 1,126,000, respectively. Interest earned and treated as broadcasting revenue for the nine months
ended September 30, 2011 and
2010 was Ps. 2,238,000 and Ps. 3,468,000, respectively.

(3) 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.

Grupo Radio Centro S.A.B de C.V.

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