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

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.

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.

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.

SOURCE Azteca