TV AZTECA ANNOUNCES SALES OF Ps.3,392 MILLION AND EBITDA OF Ps.932 MILLION IN THE THIRD QUARTER OF 2022
MEXICO CITY, Oct. 25, 2022 /PRNewswire/ -- TV Azteca, S.A.B. de C.V. (BMV: AZTECACPO Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, today announced financial results for the third quarter 2022.
"Consistent with the great challenges of the Mexican broadcast advertising market, our net sales decreased in the quarter, however, the company's firm determination to deepen cost control and to boost operating efficiency, allowed it to obtain stable EBITDA compared to the previous year", commented Rafael Rodríguez, CEO of TV Azteca. " In this way, TV Azteca reaffirms its commitment to implement orderly and responsible business strategies that allow it to compete in the market and ensure its long-term viability."
Third quarter results
Net sales for the period totaled Ps.3,392 million, 2% below the Ps.3,471 million for the same quarter of the previous year. Total costs and expenses decreased 3% to Ps.2,461 million, from Ps.2,542 million in the previous year.
As a result, the company reported EBITDA of Ps.932 million, practically unchanged compared to Ps.929 million a year ago. TV Azteca generated operating income of Ps.715 million, from Ps.764 million the previous year.
The company recorded net income of Ps.4 million, compared to Ps.102 million in the same period of 2021.
3Q 2021 | 3Q 2022 | Change | ||
Ps. | % | |||
Net sales | $3,471 | $3,392 | $(78) | -2 % |
EBITDA Operating result | $929 $764 | $932 $715 | $2 $(49) | 0% -6% |
Net result | $102 | $4 | $(98) | -96 % |
Net result per CPO | $0.03 | $0 | $(0.03) | -96 % |
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of September 30, 2022 was 2,986 million, unchanged from the previous year.
Net sales
The company's advertising sales in Mexico decreased 3%, to Ps.3,304 million, from Ps.3,409 million in the prior year.
The sum of revenue from TV Azteca Guatemala and TV Azteca Honduras, as well as the company's content sales outside of Mexico, was Ps.88 million, compared to Ps.62 million the previous year.
Costs and SG&A Expenses
Total costs and expenses decreased 3% in the quarter as a result of a 1% growth in production, programming and transmission costs — to Ps.2,320 million, from Ps.2,287 million a year ago — together with a reduction in 45% in selling and administrative expenses, to Ps.141 million, compared to Ps.254 million in the previous year.
Cost performance reflects competitive content generation efforts for both broadcast television and digital media during the period.
The reduction in selling and administrative expenses reflects fees expenditures related to financial advisory services a year ago, as well as lower expenses for services this period, in line with strategies to preserve the operational viability of the company.
EBITDA and net results
The company's EBITDA was Ps.932 million, compared to Ps.929 million in the same period of the previous year. TV Azteca reported operating income of Ps.715 million, from Ps.764 million a year ago.
The main variation below EBITDA was a decrease of Ps.108 million in foreign exchange loss as a result of net liability monetary position in dollars, together with a lower depreciation in the exchange rate of the peso against the dollar this quarter, compared to the previous year.
The company recorded net income of Ps.4 million, from Ps.102 million in the same period of 2021.
Balance sheet
As of September 30, 2022, TV Azteca's debt with cost was Ps.9,839 million, compared to Ps.12,642 million from the previous year.
In accordance with the company's commitment to reorganize its debt, during the quarter, TV Azteca finished amortizing its Cebures with principal of Ps.4,000 million due in 2022.
The balance of cash and cash equivalents at the end of the quarter was Ps.1,660 million, compared to Ps.3,322 million a year ago. The company's net debt as of September 30, 2022 was Ps.8,179 million, from Ps.9,320 million the previous year.
The restricted cash balance — which reflects the amount to cover payments for content exhibition rights and other short-term obligations of the company — was Ps.1,143 million, compared to Ps.324 million a year ago.
Nine months results
Net sales for the first nine months totaled Ps.9,896 million, compared to Ps.8,909 million in the same period of 2021. Total costs and expenses were Ps.7,615 million, from Ps.6,742 million in the same period of the previous year.
As a consequence, TV Azteca reported EBITDA of Ps.2,281 million, compared to Ps.2,167 million from the previous year. Operating income was Ps.1,675 million, from Ps.1,652 million a year ago. The company recorded net income of Ps.451 million, compared to Ps.103 million in the same period of 2021.
9M 2021 | 9M 2022 | Change | ||
Ps. | % | |||
Net sales | $8,909 | $9,896 | $987 | 11 % |
EBITDA Operating result | $2,167 $1,652 | $2,281 $1,675 | $114 $22 | 5% 1% |
Net result | $103 | $451 | $348 | ---- |
Net result per CPO | $0.03 | $0.15 | $0.12 | ---- |
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of September 30, 2022 was 2,986 million, unchanged from the previous year.
About TV Azteca
TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating four television networks in Mexico: Azteca uno, Azteca 7, adn40 and a más +, through more than 300 owned and operated stations across the country. The company also owns TV Azteca Digital, operator of several of the most visited digital platforms and social networks in Mexico.
TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast growing, and technologically advanced companies focused on creating: economic value through market innovation and goods and services that improve standards of living; social value to improve community wellbeing; and environmental value by reducing the negative impact of its business activities. 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; www.irtvazteca.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Purpose Financial (havepurpose.com), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx), Punto Casa de Bolsa (www.puntocasadebolsa.mx), Totalplay (irtotalplay.mx; www.totalplay.com.mx) and Totalplay Empresarial (totalplayempresarial.com.mx). TV Azteca and Grupo Elektra trade shares on the Mexican Stock Market and in Spains' Latibex market. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares 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 concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect TV Azteca and its subsidiaries are presented in documents sent to the securities authorities.
Investor Relations:
Bruno Rangel
Grupo Salinas
Tel. +52 (55) 2601-5400, ext. 11502
[email protected]
Rolando Villarreal
TV Azteca, S.A.B. de C.V.
Tel. +52 (55) 2601-5400, ext. 11508
[email protected]
Press Relations:
Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
[email protected]
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES | |||||||||
CONSOLIDATED RESULTS OF OPERATIONS | |||||||||
(Millions of Mexican pesos of September 30 of 2021 and 2022 ) | |||||||||
Third Quarter of : | |||||||||
2021 | 2022 | ||||||||
Change | |||||||||
Net revenue | Ps | 3,471 | 100 % | Ps | 3,392 | 100 % | Ps | (78) | -2 % |
Programming, production and transmission costs | 2,287 | 66 % | 2,320 | 68 % | 33 | 1 % | |||
Selling and administrative expenses | 254 | 7 % | 141 | 4 % | (114) | -45 % | |||
Other expense -Net | - | - | - | ||||||
Total costs and expenses | 2,542 | 73 % | 2,461 | 73 % | (81) | -3 % | |||
EBITDA | 929 | 27 % | 932 | 27 % | 2 | 0 % | |||
Depreciation and amortization | 145 | 201 | 56 | ||||||
Other expense -Net | 20 | 15 | (5) | ||||||
Impairment of assets | - | - | - | ||||||
Operating profit | 764 | 22 % | 715 | 21 % | (49) | -6 % | |||
Equity in income from affiliates | 22 | (8) | (30) | ||||||
Comprehensive financing result: | |||||||||
Interest expense | (265) | (247) | 18 | ||||||
Other financing expense | (5) | (23) | (18) | ||||||
Interest income | 29 | 31 | 2 | ||||||
Exchange loss -Net | (317) | (209) | 108 | ||||||
(558) | (448) | 110 | |||||||
Income before the following provision | 227 | 7 % | 259 | 8 % | 32 | ||||
Provision for income tax | (167) | (256) | (89) | ||||||
(Loss) Profit from continuing operations | 60 | 3 | (57) | ||||||
Profit (loss) from discontinued operations | 42 | 1 | (41) | ||||||
Net income | Ps | 102 | Ps | 4 | Ps | (98) | -96 % | ||
Non-controlling share in net profit | Ps | (1) | Ps | - | Ps | 1 | |||
Controlling share in net profit | Ps | 103 | 3 % | Ps | 4 | 0 % | Ps | (99) | -96 % |
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES | |||||||||
CONSOLIDATED RESULTS OF OPERATIONS | |||||||||
(Millions of Mexican pesos of September 30 of 2021 and 2022 ) | |||||||||
Period ended September 30, | |||||||||
2021 | 2022 | ||||||||
Change | |||||||||
Net revenue | Ps | 8,909 | 100 % | Ps | 9,896 | 100 % | Ps | 987 | 11 % |
Programming, production and transmission costs | 6,094 | 68 % | 7,101 | 72 % | 1,006 | 17 % | |||
Selling and administrative expenses | 648 | 7 % | 514 | 5 % | (133) | -21 % | |||
Other expense -Net | - | 0 % | - | - | |||||
Total costs and expenses | 6,742 | 76 % | 7,615 | 77 % | 873 | 13 % | |||
EBITDA | 2,167 | 24 % | 2,281 | 23 % | 114 | 5 % | |||
Depreciation and amortization | 453 | 543 | 90 | ||||||
Other expense -Net | 62 | 63 | 1 | ||||||
Impairment of assets | - | - | - | ||||||
Operating profit | 1,652 | 19 % | 1,675 | 17 % | 22 | 1 % | |||
Equity in income from affiliates | 51 | 194 | 142 | ||||||
Comprehensive financing result: | |||||||||
Interest expense | (798) | (786) | 11 | ||||||
Other financing expense | (280) | (166) | 114 | ||||||
Interest income | 63 | 85 | 23 | ||||||
Exchange Gain -Net | (304) | (33) | 271 | ||||||
(1,319) | (899) | 419 | |||||||
Income before the following provision | 385 | 4 % | 969 | 10 % | 584 | ||||
Provision for income tax | (352) | (425) | (73) | ||||||
(Loss) Profit from continuing operations | 33 | 543 | 511 | ||||||
Profit (loss) from discontinued operations | 71 | (92) | (163) | ||||||
Net income | Ps | 103 | Ps | 451 | Ps | 348 | |||
Non-controlling share in net profit | Ps | (0) | Ps | - | Ps | 0 | |||
Controlling share in net profit | Ps | 104 | 1 % | Ps | 451 | 5 % | Ps | 348 | |
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Millions of Mexican pesos of September 30 of 2021 and 2022) | |||||||||
At September 30 | |||||||||
2021 | 2022 | ||||||||
Change | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | Ps | 3,322 | Ps | 1,660 | Ps | (1,662) | |||
Restricted Cash | 324 | 1,143 | 819 | ||||||
Accounts receivable | 3,583 | 3,857 | 274 | ||||||
Other current assets | 2,225 | 3,571 | 1,346 | ||||||
Total current assets | 9,454 | 10,231 | 777 | 8 % | |||||
Accounts receivable | 233 | 219 | (14) | ||||||
Exhibition rights | 1,989 | 2,174 | 185 | ||||||
Property, plant and equipment-Net | 2,974 | 2,712 | (262) | ||||||
Television concessions-Net | 9,452 | 9,301 | (151) | ||||||
Other assets | 738 | 829 | 91 | ||||||
Deferred income tax asset | 1,970 | 1,642 | (328) | ||||||
Total long term assets | 17,356 | 16,877 | (479) | -3 % | |||||
Total assets | Ps | 26,810 | Ps | 27,108 | Ps | 298 | 1 % | ||
Current liabilities: | |||||||||
Short-term debt | Ps | 2,799 | Ps | 8,145 | Ps | 5,346 | |||
Other current liabilities | 7,142 | 9,518 | 2,376 | ||||||
Total current liabilities | 9,941 | 17,663 | 7,722 | 78 % | |||||
Long-term debt: | |||||||||
Long-term debt | 9,843 | 1,694 | (8,149) | ||||||
Total long-term debt | 9,843 | 1,694 | (8,149) | -83 % | |||||
Other long term liabilities: | |||||||||
Advertising advances | 4,416 | 4,796 | 380 | ||||||
Deferred income tax | 567 | 252 | (315) | ||||||
Other long term liabilities | 620 | 536 | (84) | ||||||
Total other long-term liabilities | 5,603 | 5,584 | (19) | 0 % | |||||
Total liabilities | 25,387 | 24,941 | (446) | -2 % | |||||
Total stockholders' equity | 1,423 | 2,167 | 744 | 52 % | |||||
Total liabilities and equity | Ps | 26,810 | Ps | 27,108 | Ps | 298 | 1 % | ||
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Millions of Mexican pesos of September 30 of 2021 and 2022 ) | |||||
Period ended September 30, | |||||
2021 | 2022 | ||||
Operating activities: | |||||
Income before taxes on earnings | Ps | 385 | Ps | 969 | |
Charges to income not affecting resource | 2,097 | 1,453 | |||
Cash flow generated before taxes to income | 2,482 | 2,422 | |||
Accounts receivable and related parties | (739) | 682 | |||
Inventories and performance rights | 88 | (622) | |||
Accounts payable, accrued expenses and taxes on earnings | 366 | (961) | |||
Net cash flow from operating activities | 2,197 | 1,521 | |||
Investing activities: | |||||
Acquisitions of property and equipment, intangibles and others | (520) | (191) | |||
Net cash flows from investing activities | (520) | (191) | |||
Financing activities: | |||||
Repayment of borrowings, net | (1,215) | (2,760) | |||
Interest paid | (303) | (319) | |||
Others | (79) | (60) | |||
Net cash flows from financing activities | (1,597) | (3,139) | |||
Increase in cash and cash equivalents | 80 | (1,809) | |||
Cash and cash equivalents at begining of year | 3,566 | 4,612 | |||
Cash and cash equivalents at end of year | Ps | 3,646 | Ps | 2,803 | |
SOURCE TV Azteca, S.A.B. de C.V.
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