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

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 + 52 (55) 1720 9167 [e-mail]		Carlos Casillas [phone] [e-mail]

Press Relations:
Jaime Ramos [phone] [e-mail]		Daniel McCosh [phone] [e-mail]

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