Azteca Announces 19% Growth in EBITDA, to Ps.850 Million in 1Q12

Azteca Announces 19% Growth in EBITDA, to Ps.850 Million in 1Q12

-- Net sales increase 15% in the quarter, to historical maximum of Ps.2,751 million --

-- Remarkable expansion in net income, to Ps.438 million, from Ps.162 million --











MEXICO CITY, April 25, 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 first quarter of 2012.



"Net sales represent a historical maximum for a first quarter, resulting from outstanding demand for advertising in our successful content, in all time slots," commented Mario San Roman, CEO of Azteca. "The dynamism in sales, together with strategies that continue strengthening our operating efficiency, led to remarkable EBITDA and net sales expansion, with solid profitability growth for Azteca in the quarter."



First quarter results



Net sales were Ps.2,751 million, 15% above the Ps.2,386 million for the same quarter of 2011. Total costs and expenses were Ps.1,901 million, from Ps.1,672 million in the same period of the previous year.



As a result, Azteca reported EBITDA of Ps.850 million, 19% more than the Ps.714 million for the same period of last year. The EBITDA margin was 31%, one percentage point above the previous year. The company registered net income of Ps.438 million, compared to Ps.162 million from the same quarter of 2011.






1Q 2011 1Q 2012 Change
Ps. %
--- ---

Net sales $2,386 $2,751 $365 15%

EBITDA $714 $850 $136 19%

Net income $162 $438 $276 ---

Net income per CPO $0.05 $0.15 $0.9 ---


Figures in millions of pesos.
EBITDA: Operating Profit Before Depreciation and Amortization.
The number of CPOs outstanding as of March 31, 2011 was 3,002
million and as of March 31, 2012 was 2,983 million.







Net sales



Domestic ad sales were Ps.2,463 million in the period, 15% above the Ps.2,146 million from the first quarter of 2011. 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.251 million, 20% above the Ps.209 million a year ago.



Programming sales to other countries were Ps.37 million in the period, 19% above of Ps.31 million from the previous year. The revenue was directly related to the export of the programs Cielo Rojo --commercialized in Europe and Latin America-- and La Mujer de Judas, sold in several countries of Central and South America.



Costs and expenses



The 14% increase in costs and expenses during the period was the result of a 16% growth in production, programming and transmission costs --to Ps.1,555 million, from Ps.1,343 million in the same period a year ago-- and a 5% increase in selling and administrative expenses --to Ps.345 million, from Ps.329 million in the same quarter of 2011.



The costs increase is the result of the production of content that attracted large audiences and further strengthened ad demand from advertisers.



The performance of sales and administrative expenses is mainly related to the growth in advisory fees in the period, in the context of growing company operations. The increase in expenses is smaller than the expansion in net sales, reflecting effective actions to improve the operating efficiency of the company.



EBITDA and net income



EBITDA was Ps.850 million, compared to Ps.714 million in the same period of last year; the EBITDA margin was 31%, from 30% for the prior year period.



The most significant change below EBITDA was a Ps.160 million improvement in the financial result, mainly related to the foreign exchange gain for the period.



Net income for the quarter was Ps.438 million, more than double the Ps.162 million from a year ago.



Debt



As of March 31, 2012, Azteca's outstanding debt --excluding Ps.1,539 million debt due in 2069--was Ps.9,294 million.



The cash balance of the company was Ps.8,239 million, compared to Ps.5,659 million a year ago. As a result, net debt was Ps.1,055 million, 43% below the Ps.1,860 million from the prior year. Debt to last twelve months (LTM) EBITDA ratio was 1.9 times, and net debt to LTM EBITDA was 0.2 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) 17 20 91 67
jrangelk@tvazteca.com.mx cjcasillas@tvazteca.com.mx










Press Relations:
Jaime Ramos Daniel McCosh
+52 (55) 17 20 14 16 +52 (55) 17 20 00 59
jramosr@tvazteca.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 2011 and 2012
)

First Quarter of :
-------------------
2011 2012
---- ----
Change
------

Net
revenue Ps 2,386 100% Ps 2,751 100% Ps 365 15%
--- ---

Programming,
production
and
transmission
costs 1,343 56% 1,555 57% 213 16%
Selling
and
administrative
expenses 329 14% 345 13% 16 5%
Total
costs
and
expenses 1,672 70% 1,901 69% 229 14%
----- ----- ---

EBITDA 714 30% 850 31% 136 19%

Depreciation
and
amortization 125 129 5
Other
expense
-Net 42 58 16

Operating
profit 548 23% 663 24% 115 21%
--- --- ---

Equity
in
income
from
affiliates (1) 13 15


Comprehensive
financing
result:
Interest
expense (195) (244) (48)
Other
financing
expense (24) (13) 11
Interest
income 38 54 16
Exchange
loss
-Net 20 201 181
(161) (1) 160
---- --- ---

Income
before
the
following
provision 385 16% 675 25% 290 75%

Provision
for
income
tax (223) (241) (17)

Net
income Ps 162 Ps 434 Ps 272
=== === === === === ===

Non-
controlling
share
in net
profit Ps 0 Ps (3) Ps (4)
=== === === === === ===

Controlling
share
in net
profit Ps 162 7% Ps 438 16% Ps 276 171%
--- --- --- --- --- ---









TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of March 31 of 2011 and
2012)


At March 31
-----------
2011 2012
---- ----
Change
------
Current
assets:
Cash
and
cash
equivalents Ps 5,659 Ps 8,239 Ps 2,580
Accounts
receivable 7,042 8,548 1,506
Other
current
assets 2,206 2,297 91

Total
current
assets 14,907 19,084 4,177 28%

Exhibition
rights 1,123 1,274 151
Property,
plant
and
equipment-
Net 3,109 3,471 362
Television
concessions-
Net 6,297 6,546 249
Other
assets 740 1,101 361
Goodwill
-Net 19 - (19)
Deferred
income
tax
asset 4,456 4,887 431
Total
long
term
assets 15,744 17,278 1,535 10%

Total
assets Ps 30,651 Ps 36,362 Ps 5,712 19%
=== ====== === ====== === =====


Current
liabilities:
Short-
term
debt Ps 1,840 Ps 595 Ps (1,245)
Other
current
liabilities 2,599 2,381 (218)

Total
current
liabilities 4,439 2,976 (1,463) -33%

Long-
term
debt:
Structured
Securities
Certificates 5,554 4,920 (634)
Long-
term
debt 125 3,779 3,654
Total
long-
term
debt 5,679 8,699 3,020
Other
long
term
liabilities:
Advertising
advances 7,801 9,351 1,550
American
Tower
Corporation
(due
2069) 1,433 1,539 106
Deferred
income
tax
asset 3,572 3,578 6

Total
other
long-
term
liabilities 12,806 14,468 1,662 13%


Total
liabilities 22,924 26,143 3,219 14%

Total
stockholders'
equity 7,727 10,220 2,493 32%


Total
liabilities
and
equity Ps 30,651 Ps 36,362 Ps 5,712 19%
--- ------ --- ------ --- -----










SOURCE Azteca

Azteca


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