Azteca Announces EBITDA of Ps.966 Million for the Second Quarter of 2012

- Net sales increase 6% in the quarter to historical maximum of Ps.2,994 million -

- During the first six months of the year, net sales expand 10% and EBITDA 8% -

Jul 24, 2012, 20:05 ET from Azteca

MEXICO CITY, July 24, 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 second quarter of 2012.

"We reached a historical maximum in sales for a second quarter, resulting from growing demand from advertisers looking to build far-reaching advertising campaigns through our programming, with remarkable success in all time slots in all our channels," commented Mario San Roman, CEO of Azteca.

Second quarter results

Net sales for the quarter were Ps.2,994 million, 6% above the Ps.2,817 million for the same quarter of 2011.  Total costs and expenses were Ps.2,028 million, from  Ps.1,853 million in the same period of the previous year.  

As a result, Azteca reported EBITDA of Ps.966 million, from Ps.964 million for the same period of last year. The EBITDA margin was 32%.  The company registered net income of Ps.40 million, compared to Ps.394 million for the same quarter of 2011.




2Q 2011

2Q 2012

Change




Ps.

%






Net sales

$2,817

$2,994

$177

6%






EBITDA    

$964

$966

$2

0%






Net income    

$394

$40

$(354)

---






Net income per CPO

$0.13

$0.01

$(0.12)

---






 Figures in millions of pesos.
 EBITDA: Operating Profit Before Depreciation and Amortization.
 The number of CPOs outstanding as of June 30, 2011 was 3,000 million and as of June 30, 2012 was 2,985 million.



Net sales

Domestic ad sales were Ps.2,706 million in the period, 5% above the Ps.2,585 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, 15% above the Ps.200 million a year ago.

Programming sales to other countries were Ps.59 million in the period, well above the Ps.32 million from the previous year. The revenue was directly related to the export of popular programs for global audiences, of which Quererte asi, Cielo Rojo and La Mujer de Judas, stood out and were commercialized in several countries of Central and South America.

Costs and expenses

The 9% increase in costs and expenses during the period was the result of a 12% growth in production, programming and transmission costs —to Ps.1,650 million, from Ps.1,478 million in the same period a year ago— and a 1% increase in selling and administrative expenses —to Ps.379 million, from Ps.375 million in the same quarter of 2011.

The costs increase is the result of the production of successful content, which further drove the demand for advertising from numerous clients, and strengthened the preference for our content abroad.

The performance of sales and administrative expenses is mainly related to the growth in advisory fees and services payments. However, 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.966 million, compared to Ps.964 million in the same period of last year; the EBITDA margin was 32% for this period.

The most significant change below EBITDA was a Ps.289 million increase in the financial cost, mainly related to the foreign exchange loss for the period.

Net income for the quarter was Ps.40 million, compared to Ps.394 million from a year ago.

Debt

As of June 30, 2012, Azteca's outstanding debt —excluding Ps.1,635 million debt due in 2069—was Ps.9,394 million.  

The cash balance of the company was Ps.7,764 million, compared to Ps.7,248 million a year ago. As a result, net debt was Ps.1,630 million, 20% below the Ps.2,048 million from the prior year.  Debt to last twelve months (LTM) EBITDA ratio was 2 times, and net debt to LTM EBITDA was 0.3 times.

Six months results

Net sales in the semester were Ps.5,745 million, 10% above Ps.5,203 million in the same period of 2011. Total costs and expenses were Ps.3,929 million, from Ps.3,525 million from the second quarter of a year ago. As a result, Azteca reported EBITDA of Ps.1,816 million, 8% above the Ps.1,678 million from the first semester of the prior year; the EBITDA margin for this six months period was 32%, unchanged from the prior year. The company recorded net income of Ps.478 million, from Ps.555  million for the same period of the previous year.




6M2011

6M2012

Change




Ps.

%






Net sales

$5,203

$5,745

$542

10%






EBITDA    

$1,678

$1,816

$138

8%






Net income    

$555

$478

$(77)

-14%






Net income per CPO

$0.19

$0.16

$(0.03)

-14%






 Figures in millions of pesos.
 EBITDA: Operating Profit Before Depreciation and Amortization.
 The number of CPOs outstanding as of June 30, 2011  was 3,000 million and as of June 30, 2012 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.tvazteca.com.mx; 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

jrangelk@tvazteca.com.mx


Carlos Casillas

+52 (55) 17 20 91 67

cjcasillas@tvazteca.com.mx






Press Relations:

Jaime Ramos

+52 (55) 17 20 14 16

jramosr@tvazteca.com.mx


Daniel McCosh

+52 (55) 17 20 00 59

dmccosh@tvazteca.com.mx






TV AZTECA, S.A.B. DE C.V. AND  SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS

(Millions of Mexican pesos of June 30 of  2011 and 2012 )






















Second Quarter of :





2011


2012









Change











Net revenue

Ps

2,817

100%

Ps

2,994

100%

Ps

177

6%











Programming, production and transmission costs


1,478

52%


1,650

55%


172

12%

Selling and administrative expenses


375

13%


379

13%


4

1%

Total costs and expenses


1,853

66%


2,028

68%


175

9%











EBITDA


964

34%


966

32%


2

0%











Depreciation and amortization


125



140



15


Other expense -Net


64



94



30












Operating profit


775

28%


732

24%


(43)

-6%











Equity in income from affiliates


(1)



(13)



(12)












Comprehensive financing result:










Interest expense


(212)



(245)



(34)


Other financing expense


(25)



(109)



(85)


Interest income


36



66



30


Exchange loss  -Net


(8)



(210)



(201)




(209)



(499)



(289)












Income before the following provision


565

20%


221

7%


(344)

-61%











Provision for income tax


(171)



(184)



(13)












Net income

Ps

394


Ps

37


Ps

(357)












Non-controlling share in net profit

Ps

0


Ps

(4)


Ps

(4)












Controlling share in net profit  

Ps

394

14%

Ps

40

1%

Ps

(353)

-90%





TV AZTECA, S.A.B. DE C.V.  AND  SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS

(Millions of Mexican pesos of June 30 of  2011 and  2012 )






















Period ended June 30,





2011


2012











Change











Net revenue

Ps

5,203

100%

Ps

5,745

100%

Ps

542

10%











Programming, production and transmission costs


2,820

54%


3,205

56%


384

14%

Selling and administrative expenses


704

14%


724

13%


20

3%

Total costs and expenses


3,525

68%


3,929

68%


404

11%











EBITDA


1,678

32%


1,816

32%


138

8%











Depreciation and amortization


250



270



20


Other expense -Net


106



152



46












Operating profit


1,323

25%


1,395

24%


72

5%











Equity in income from affiliates


(2)



1



3












Comprehensive financing result:










Interest expense


(407)



(489)



(82)


Other financing expense


(49)



(122)



(73)


Interest income


74



120



46


Exchange Gain  -Net


12



(9)



(21)




(370)



(500)



(130)












Income before the following provision


950

18%


895

16%


(55)

-6%











Provision for income tax


(394)



(425)



(30)












Net income

Ps

556


Ps

471


Ps

(85)












Non-controlling share in net profit  

Ps

1


Ps

(7)


Ps

(8)












Controlling share in net profit  

Ps

555

11%

Ps

478

8%

Ps

(77)

-14%





TV AZTECA, S.A.B.  DE C.V. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Millions of Mexican pesos of June 30 of 2011 and 2012)


















At June 30






2011


2012












Change

Current assets:










Cash and cash equivalents

Ps

7,248


Ps

7,764


Ps

516


Accounts receivable


6,245



7,270



1,025


Other current assets


2,184



2,381



197












Total current assets


15,677



17,415



1,738

11%











Exhibition rights


1,090



1,367



277


Property, plant and equipment-Net


3,144



3,608



464


Television concessions-Net


6,532



6,936



404


Other assets


890



1,225



335


Goodwill -Net


19



-



(19)


Deferred income tax asset


4,456



4,277



(179)


Total long term assets


16,131



17,413



1,282

8%











Total assets

Ps

31,808


Ps

34,828


Ps

3,020

9%





















Current liabilities:










Short-term debt

Ps

458


Ps

629


Ps

171


Other current liabilities


2,272



2,672



400












Total current liabilities


2,730



3,301



571

21%











Long-term debt:










Structured Securities Certificates


8,838



4,755



(4,083)


Long-term debt


-



4,010



4,010


Total long-term debt


8,838



8,765



(73)


Other long term liabilities:










Advertising advances


6,905



7,665



760


American Tower Corporation (due 2069)


1,418



1,635



217


Deferred income tax asset


3,572



3,106



(466)












Total other long-term liabilities


11,895



12,406



511

4%











Total liabilities


23,463



24,472



1,009

4%











Total stockholders' equity


8,345



10,356



2,011

24%











Total liabilities and equity

Ps

 31,808


Ps

 34,828


Ps

  3,020

9%














SOURCE Azteca



RELATED LINKS

http://www.irtvazteca.com