Azteca Announces EBITDA of Ps.1,060 Million for the Third Quarter of 2012

Azteca Announces EBITDA of Ps.1,060 Million for the Third Quarter of 2012

--Net sales increase to Ps.3,198 million--

--Net income grows 89%, to Ps.718 million--

--During the first nine months of the year, net sales expand 7%, to Ps.8,943 million--













MEXICO CITY, Oct. 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 third quarter, and first nine months of 2012.



Third quarter results



Net sales for the quarter were Ps.3,198 million, 2% above the Ps.3,122 million for the same quarter of 2011. Total costs and expenses were Ps.2,138 million, from Ps.1,906 million in the same period of the previous year. As a result, Azteca reported EBITDA of Ps.1,060 million, from Ps.1,217 million for the same period of last year. The EBITDA margin was 33%.



The company registered net income of Ps.718 million, 89% higher than the Ps.380 million for the same quarter of 2011.






3Q 2011 3Q 2012 Change
Ps. %
--- ---

Net sales $3,122 $3,198 $76 2%

EBITDA $1,217 $1,060 $(157) -13%

Net income $380 $718 $338 89%

Net income per CPO $0.13 $0.24 $0.11 89%


Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and
Amortization. The number of CPOs outstanding as of September
30, 2011 was 2,985 million and as of September 30, 2012 was
2,984 million.





Net sales



Domestic ad sales were Ps.2,923 million in the period, 6% above the Ps.2,765 million from the same period of the previous year. The increase reflects the solid interest of numerous advertisers in Mexico to reach their target markets through the programming of Azteca.



Sales were complemented by revenue from Azteca America--the company's wholly-owned broadcast television network focused on the U.S. Hispanic market--of Ps.229 million, compared to Ps.258 million a year ago.



Programming sales to other countries were Ps.46 million in the period, from Ps.99 million from the previous year. The revenue resulted from the export of the programs Los Rey and La Mujer de Judas to Europe, as well as Cielo Rojo to Central America, Europe, and Asia.



Costs and expenses



The 12% increase in costs and expenses during the period was the result of a 14% increase in production, programming and transmission costs --to Ps.1,761 million, from Ps.1,540 million in the same period a year ago-- and a 3% increase in selling and administrative expenses --to Ps.377 million, from Ps.366 million in the same quarter of 2011.



The costs increase is mainly the result of the exhibition rights, and the production costs related to the transmission of the London 2012 Olympic Games.



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



EBITDA and net income



EBITDA was Ps.1,060 million, compared to Ps.1,217 million in the same period of last year; the EBITDA margin was 33% for this period.



The most significant change below EBITDA was a Ps.441 million decrease in the financial cost, mainly related to a foreign exchange gain for the period.



Net income for the quarter grew 89%, to Ps.718 million, from Ps.380 million last year.



Debt



As of September 30, 2012, Azteca's outstanding debt --excluding Ps.1,539 million debt due in 2069--was Ps.9,010 million.



The cash balance of the company was Ps.6,896 million, compared to Ps.7,181 million a year ago. As a result, net debt was Ps.2,114 million, 15% below the Ps.2,500 million from the prior year. Debt to last twelve months (LTM) EBITDA ratio was 1.9 times, and net debt to LTM EBITDA was 0.5 times.



Nine months results



Net sales in the first nine months of the year were Ps.8,943 million, 7% above Ps.8,325 million in the same period of 2011. Total costs and expenses were Ps.6,068 million, from Ps.5,431 million for the third quarter last year. The increase in costs results from the exhibition rights and production costs related to the London 2012 Olympic Games, as well as the production of competitive content that drove advertising demand.



Azteca reported EBITDA of Ps.2,875 million, compared to Ps.2,894 million from the prior year; the EBITDA margin for the nine month period was 32%. The company recorded net income of Ps.1,196 million, 28% above the Ps.936 million for the same period of the previous year.








9M2011 9M2012 Change
Ps. %
--- ---

Net sales $8,325 $8,943 $618 7%

EBITDA $2,894 $2,875 $(19) -1%

Net income $936 $1,196 $260 28%

Net income per CPO $0.31 $0.40 $0.09 28%


Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and
Amortization.
The number of CPOs outstanding as of September 30, 2011 was
2,895 million and as of September 30, 2012 was 2,984 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), Advance America (www.advanceamerica.net), 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 September 30 of 2011
and 2012 )


Third Quarter of :
------------------
2011 2012
---- ----
Change
------

Net
revenue Ps 3,122 100% Ps 3,198 100% Ps 76 2%
--- ---

Programming,
production
and
transmission
costs 1,540 49% 1,761 55% 221 14%
Selling
and
administrative
expenses 366 12% 377 12% 11 3%
Total
costs
and
expenses 1,906 61% 2,138 67% 233 12%
----- ----- ---

EBITDA 1,217 39% 1,060 33% (157) -13%

Depreciation
and
amortization 119 143 24
Other
expense
-Net 142 57 (84)

Operating
profit 956 31% 860 27% (97) -10%
--- --- ---

Equity in
income
from
affiliates 3 6 3


Comprehensive
financing
result:
Interest
expense (233) (244) (11)
Other
financing
expense (28) (16) 12
Interest
income 37 51 15
Exchange
loss
-Net (233) 193 425
(457) (17) 441
---- --- ---

Income
before
the
following
provision 502 16% 849 27% 347 69%

Provision
for
income
tax (123) (136) (14)

Net
income Ps 380 Ps 713 Ps 333
=== === === === === ===

Non-
controlling
share in
net
profit Ps (0) Ps (5) Ps (5)
=== === === === === ===

Controlling
share in
net
profit Ps 380 12% Ps 718 22% Ps 338 89%
=== === === === === ===











TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of September 30 of 2011 and
2012 )


Period ended September
30,
-----------------------
2011 2012
---- ----
Change
------

Net revenue Ps 8,325 100% Ps 8,943 100% Ps 618 7%
--- ---

Programming,
production
and
transmission
costs 4,360 52% 4,966 56% 606 14%
Selling and
administrative
expenses 1,070 13% 1,102 12% 32 3%
Total costs
and
expenses 5,431 65% 6,068 68% 637 12%
----- ----- ---

EBITDA 2,894 35% 2,875 32% (19) -1%

Depreciation
and
amortization 368 413 44
Other
expense
-Net 247 208 (38)

Operating
profit 2,279 27% 2,254 25% (25) -1%
----- ----- ---

Equity in
income
from
affiliates 1 7 6


Comprehensive
financing
result:
Interest
expense (640) (733) (94)
Other
financing
expense (77) (139) (61)
Interest
income 110 172 61
Exchange
Gain -Net (221) 184 405
(828) (516) 311
---- ---- ---

Income
before the
following
provision 1,453 17% 1,745 20% 292 20%

Provision
for income
tax (517) (561) (44)

Net income Ps 936 Ps 1,184 Ps 248
=== === === ===== === ===

Non-
controlling
share in
net profit Ps 0 Ps (12) Ps (13)
=== === === === === ===

Controlling
share in
net profit Ps 936 11% Ps 1,196 13% Ps 260 28%
=== === === ===== === ===













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


At September 31
---------------
2011 2012
---- ----
Change
------
Current
assets:
Cash and
cash
equivalents Ps 7,181 Ps 6,896 Ps (285)
Accounts
receivable 6,238 6,250 12
Other
current
assets 2,073 2,383 310

Total
current
assets 15,492 15,529 37 0%

Exhibition
rights 1,308 1,363 55
Property,
plant and
equipment-
Net 3,318 3,577 259
Television
concessions-
Net 6,781 6,803 22
Other assets 943 1,303 360
Goodwill
-Net 19 - (19)
Deferred
income tax
asset 4,456 4,277 (179)
Total long
term assets 16,825 17,323 498 3%

Total assets Ps 32,318 Ps 32,852 Ps 535 2%
== ====== == ====== == ===


Current
liabilities:
Short-term
debt Ps 532 Ps 648 Ps 117
Other
current
liabilities 2,280 2,973 693

Total
current
liabilities 2,812 3,621 810 29%

Long-term
debt:
Structured
Securities
Certificates 5,218 4,588 (630)
Long-term
debt 3,931 3,774 (157)
Total long-
term debt 9,149 8,362 (787)
Other long
term
liabilities:
Advertising
advances 6,227 5,800 (427)
American
Tower
Corporation
(due 2069) 1,607 1,539 (68)
Deferred
income tax
asset 3,572 3,106 (466)

Total other
long-term
liabilities 11,406 10,445 (961) -8%


Total
liabilities 23,366 22,428 (938) -4%

Total
stockholders'
equity 8,951 10,424 1,473 16%

Total
liabilities
and equity Ps 32,318 Ps 32,852 Ps 535 2%
=== ====== === ====== === ===













SOURCE Azteca

Azteca

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


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