Azteca Announces Growth to Ps.3,821 Million in Sales, and Ps.1,836 Million in EBITDA in 4Q11

Azteca Announces Growth to Ps.3,821 Million in Sales, and Ps.1,836 Million in EBITDA in 4Q11

--2011 EBITDA grows 4%, to Ps.4,905 million, historical maximum for a full year--

--Remarkable strength in audience levels, share reaches 41% in the year--

MEXICO CITY, Feb. 16, 2012 /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 fourth quarter, and full year 2011.

"Our programming grids showed enormous strength throughout the year, resulting in 41% full day audience share in Mexico and a significant demand for advertising slots at all times, during 2011. The higher demand generated an increase in income that led to historical maximum annual EBITDA," commented Mario San Roman, CEO of Azteca.

Fourth quarter results

Net sales were Ps.3,821 million, 4% above of Ps.3,667 million for the same quarter of 2010. Total costs and expenses were Ps.1,985 million, from Ps.1,851 million in the same period of the previous year.

As a result, Azteca reported EBITDA of Ps.1,836 million, 1% more than the Ps.1,816 million for the same period of last year. The EBITDA margin was 48%. The company registered net income of Ps.1,284 million, compared to Ps.1,389 million from the previous year.

4Q 2010 4Q 2011 Change
Ps. %
--- ---

Net sales $3,667 $3,821 $154 4%

EBITDA $1,816 $1,836 $20 1%

Net income $1,389 $1,284 $(106) -8%

Net income per CPO $0.46 $0.43 $(0.03) -8%

Figures in millions of pesos.
EBITDA: Operating Profit Before Depreciation and Amortization.
The number of CPOs outstanding as of December 31, 2010 was 3,000
million and as of December 31, 2011 was 2,985 million.

Net sales

Domestic ad sales were Ps.3,472 million in the quarter, 3% above compared to Ps.3,355 million from the fourth quarter of 2010. The increase reflects the growing interest of numerous advertisers to position their brands through the successful programming of Azteca.

The increase in sales was complemented by revenue from Azteca America--the company's wholly-owned broadcast television network focused on the U.S. Hispanic market--of Ps.271 million, 4% above the Ps.260 million a year ago.

Programming sales to other countries were Ps.78 million in the period, from Ps.52 million from the previous year. The revenue was directly related to the export of programs to global audiences, especially outstanding were Cielo Rojo and Emperatriz, which where commercialized in diverse countries in Latin America.

Costs and expenses

The 7% increase in costs and expenses was the result of a 6% growth in production, programming and transmission costs --to Ps.1,625 million, from Ps.1,530 million in the same period a year ago-- and a 12% increase in selling and administrative expenses --to Ps.360 million, from Ps.321 million in the same quarter of 2010.

The costs increase is the result of the production of content that positively influenced audience share and allowed a wide number of advertisers to reach their client base directly.

The performance of sales and administrative expenses is mainly related to the growth in operation and fees expenses in the period, in the context of growing operations in the company.

EBITDA and net income

EBITDA was Ps.1,836 million, compared to Ps.1,816 million in the same period of the prior year; the EBITDA margin was 48%.

The most significant change below EBITDA was a Ps.206 million deterioration in the exchange result, mainly related to the devaluation of the Mexican peso this period.

Net income for the quarter was Ps.1,284 million, compared to Ps.1,389 million from a year ago.

Debt

As of December 31, 2011, Azteca's outstanding debt --excluding Ps.1,674 million debt due in 2069--was Ps.10,139 million.

The cash balance of the company was Ps.8,297 million, compared to Ps.5,002 million a year ago. As a result, net debt was Ps.1,842 million, 38% below the Ps.2,977 million from the prior year. Debt to last twelve months (LTM) EBITDA ratio was 2.1 times, and net debt to LTM EBITDA was 0.4 times.

Twelve months results

Net sales in 2011 were Ps.11,903 million, 3% above the Ps.11,554 million in 2010. Total costs and expenses were Ps.6,998 million, from Ps.6,831 million the year ago. As a result, Azteca reported EBITDA of Ps.4,905 million, 4% above the Ps.4,723 million from the prior year, and a historical annual maximum; the EBITDA margin for the year was 41%, without changes compared to last year. The company recorded net income of Ps.2,219 million, from Ps.2,317 million from the previous year.

2010 2011 Change
Ps. %
--- ---

Net sales $11,554 $11,903 $349 3%

EBITDA $4,723 $4,905 $182 4%

Net income $2,317 $2,219 $(98) -4%

Net income per CPO $0.77 $0.74 $(0.03) -4%

Figures in millions of pesos.
EBITDA: Operating Profit Before Depreciation and Amortization. The
number of CPOs outstanding as of December 31, 2010 was 3,000
million and as of December 31, 2011 was 2,985 million.

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 December 31 of 2010 and 2011 )

Fourth Quarter of :
--------------------
2010 2011
---- ----
Change
------

Net revenue Ps 3,667 100% Ps 3,821 100% Ps 154 4%
--- ---

Programming,
production and
transmission
costs 1,530 42% 1,625 43% 94 6%
Selling and
administrative
expenses 321 9% 360 9% 40 12%

Total costs and
expenses 1,851 50% 1,985 52% 134 7%
----- ----- ---

EBITDA 1,816 50% 1,836 48% 20 1%

Depreciation and
amortization 134 129 (5)

Operating profit 1,682 46% 1,707 45% 25 1%
----- ----- ---

Other expense -Net (128) (43) 85

Comprehensive
financing result:
Interest expense (226) (252) (25)
Other financing
expense (40) (19) 20
Interest income 18 37 19
Exchange Gain
-loss net 100 (105) (206)
(147) (339) (191)
---- ---- ----

Income before the
following
provision 1,407 38% 1,325 35% (81) -6%

Provision for
income tax (18) (41) (23)

Net income Ps 1,389 Ps 1,285 Ps (104)
=== ===== === ===== === ====

Non-controlling
share in net
profit Ps (0) Ps 1 Ps 1
=== === === === === ===

Controlling share
in net profit Ps 1,389 38% Ps 1,284 34% Ps (106) -8%
=== ===== === ===== === ====

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

Period ended December 31,
-------------------------
2010 2011
---- ----
Change
------

Net revenue Ps 11,554 100% Ps 11,903 100% Ps 349 3%
--- ---

Programming,
production
and
transmission
costs 5,646 49% 5,707 48% 62 1%
Selling and
administrative
expenses 1,185 10% 1,290 11% 105 9%

Total costs
and
expenses 6,831 59% 6,998 59% 167 2%
----- ----- ---

EBITDA 4,723 41% 4,905 41% 182 4%

Depreciation
and
amortization 528 494 (34)

Operating
profit 4,196 36% 4,411 37% 216 5%
----- ----- ---

Other
expense
-Net (621) (462) 159

Comprehensive
financing
result:
Interest
expense (866) (891) (25)
Other
financing
expense (116) (97) 19
Interest
income 109 143 35
Exchange
Gain- Loss
-Net 106 (327) (433)
(768) (1,171) (403)
---- ------ ----

Income
before the
following
provision 2,807 24% 2,778 23% (29) -1%

Provision
for income
tax (489) (557) (68)

Net income Ps 2,318 Ps 2,221 Ps (97)
=== ===== === ===== === ===

Non-
controlling
share in
net profit Ps 1 Ps 2 Ps 1
=== === === === === ===

Controlling
share in
net profit Ps 2,317 20% Ps 2,219 19% Ps (98) -4%
=== ===== === ===== === ===

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

At December 31
--------------
2010 2011
---- ----
Change
------
Current assets:
Cash and cash
equivalents Ps 5,002 Ps 8,297 Ps 3,295
Accounts receivable 4,867 7,389 2,522
Other current assets 1,799 1,856 57

Total current assets 11,668 17,542 5,874 50%

Long-term accounts
receivable from Pappas 1,927 2,180 253
Exhibition rights 865 1,328 463
Property, plant and
equipment-Net 3,152 3,383 231
Television concessions-
Net 4,756 4,758 2
Other assets 1,082 1,469 387
Goodwill -Net 19 - (19)
Deferred income tax
asset 4,429 4,860 431
Total long term assets 16,230 17,978 1,748 11%

Total assets Ps 27,898 Ps 35,520 Ps 7,622 27%
== ====== == ====== == =====

Current liabilities:
Short-term debt Ps 1,769 Ps 667 Ps (1,102)
Other current
liabilities 2,470 2,192 (278)

Total current
liabilities 4,239 2,859 (1,380) -33%

Long-term debt:
Structured Securities
Certificates 5,944 5,278 (666)
Long-term debt 266 4,194 3,928
Total long-term debt 6,210 9,472 3,262
Other long term liabilities:
Advertising advances 4,401 7,466 3,065
American Tower
Corporation (due 2069) 1,480 1,674 194
Deferred income tax
asset 3,550 3,566 16

Total other long-term
liabilities 9,431 12,706 3,275 35%

Total liabilities 19,880 25,037 5,157 26%

Total stockholders'
equity 8,018 10,483 2,465 31%

Total liabilities
and equity Ps 27,898 Ps 35,520 Ps 7,622 27%
=== ====== === ====== === =====

SOURCE Azteca

Azteca

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

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