Grupo Salinas Companies Post Strong Performance in 2010

USA - English

• Latin America - español

MEXICO CITY, Jan. 3, 2011 /PRNewswire/ -- Grupo Salinas, a group of dynamic, fast-growing and technologically advanced companies deeply committed to the modernization of the countries in which they operate— founded by Ricardo Salinas (www.ricardosalinas.com)— announced today that 2010 was once again a year of solid operating and financial performance for its primary companies.

Grupo Elektra —Latin America's leading financial services company and specialty retailer— generated incremental revenue, thanks to increased commercial sales, particularly electronics, motorcycles and computers, as a result of the preference of millions of families for brands that positively affect their living standards in Mexico and Latin America. Higher revenues, combined with strict financial cost control resulted in a double-digit expansion in consolidated EBITDA for Grupo Elektra in 2010.

Banco Azteca —the most important financial subsidiary of Grupo Elektra—ended the year with over 10 million deposit accounts in Mexico, a remarkable number for a country with approximately 25 million families. The consolidated deposits balance was around Ps. 50 billion, practically doubling the loan portfolio, placing the company in an unparalleled position to increase lending to the bottom of the pyramid in Mexico, Central and South America. Banco Azteca's asset quality was outstanding, and it favorably compares to other institutions focused on the same market segment in the country. That strength translated into lower required credit reserves and financial costs.

Considering Grupo Salinas' presence in the broadcast television market, TV Azteca —one of the two largest producers of Spanish-language television programming in the world— further strengthened its successful programming grids, which resulted in a 40 % full-day commercial audience share for the year. Prime time and pre-prime programs were especially important, including La Loba, Mujer Comprada, Cosas de la Vida, Box Internacional, and the company's proven musical reality show La Academia, which garnered large audiences and generated optimum frameworks for the development of successful campaigns for many advertisers. Azteca America, TV Azteca's subsidiary for the U.S. Hispanic market, achieved strong revenue due to the preference of advertisers for the popular content of the network, and expanded its EBITDA thanks to effective cost controls.

In the telecommunications sector, Grupo Iusacell —the first provider of wireless cellular third generation services in Mexico with a national footprint— installed its high-speed GSM/HSPA+ network throughout the country, adding to its existing CDMA network, which enables thousands of users to access the latest technology in voice and data transmission, with competitive handset and airtime prices. The dynamism in sales of smart phones was strong, and the company consolidated its positioning as a first-class provider of high-speed Internet access.

Beyond financial and operating strength, Grupo Salinas continues to improve the quality of life of millions of families through Fundacion Azteca.

With the Limpiemos Nuestro Mexico campaign, it called to action more than two million people who gathered 8,500 tons of garbage, creating consciousness about the need to improve the environment; with the Jugueton it collected more than 15 million toys that were delivered to needy children; and through six Movimientos Azteca— television fundraising and awareness campaigns to improve society— 100 ambulances were acquired and more than 60,000 people in need for food, medical attention, and social assistance, were directly benefited with donations that exceeded Ps. 200 million.

The music education program Esperanza Azteca was also promoted— where 5,000 children from low income families participated in 23 youth orchestras from 18 states throughout Mexico— with the goal of creating better citizens through music by practicing values such as tolerance, team work, constancy and discipline; additionally, Plantel Azteca provided more than 2,300 low-income youth with scholarships for one of the top high schools in the nation. Red Social Azteca reached 900 affiliated organizations with the donation of electronics and household appliances; four new Rural Cities are under construction to improve the quality of life of 10,000 people that currently live in extreme poverty and are marginalized through geographical dispersion; and the Caminos de la Libertad program created awareness regarding the importance of defending freedom as a fundamental human right.

Fundacion Azteca not only improves living conditions of families in Mexico. It also extends benefits to the US, Peru and Guatemala.

Grupo Salinas has more than 100 years of adding value to the communities in which it operates, and considers itself to be in an unparalleled position to continue its solid development for 2011.

Company Profile

Grupo Salinas (www.gruposalinas.com) is a group of dynamic, fast growing, and technologically advanced companies focused on creating shareholder value, building the Mexican middle class, and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include: TV Azteca (www.tvazteca.com.mx; 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.

SOURCE TV Azteca