Company News: Page (1) of 1 - 02/21/13

Azteca Announces Sales of Ps.3,627 Million and EBITDA of Ps.1,608 Million for the Fourth Quarter of 2012

(February 21, 2013)

Net Sales Grow to Ps.12,570 Million in 2012, EBITDA is Ps.4,483 Million

Solid Progress in Construction of Fiber Optics Network, Which Will Cover Close to 80% of the Territory of Colombia

MEXICO CITY, Feb. 21, 2013 (GLOBE NEWSWIRE) -- 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 2012.

Fourth quarter results

Net sales for the quarter were Ps.3,627 million, compared to Ps.3,874 million for the same quarter of 2011. Total costs and expenses were Ps.2,019 million, 3% below Ps.2,092 million in the same period of the previous year. As a result, Azteca reported EBITDA of Ps.1,608 million, from Ps.1,782 million for the same period of last year. The EBITDA margin was 44%.

The company registered net income of Ps.1,111 million, compared to Ps.1,263 million for the same quarter of 2011.


	4Q 2011	4Q 2012	Change
			Ps.	%

Net sales	$3,874	$3,627	$(247)	-6%

EBITDA	$1,782	$1,608	$(174)	-10%

Net income	$1,263	$1,111	$(152)	-12%

Net income per CPO	$0.42	$0.37	$(0.05)	-12%

Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of December 31, 2011 was 2,985 million and as of December 31, 2012 was 2,984 million.

Net sales

Domestic ad sales were Ps.3,402 million in the period, compared to Ps.3,525 million from the same period of the previous year. 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.190 million, compared to Ps.271 million a year ago.

Programming sales to other countries were Ps.35 million in the period, from Ps.78 million from the previous year. The revenue resulted from the export of programs such as Los Rey and Amor Cautivo to Central America, as well as La Tenienteto South America, and Asia.

Costs and expenses

Costs and expenses decreased 3% during the period, as the result of a 5% reduction in production, programming and transmission costs —to Ps.1,611 million, from Ps.1,696 million in the same period a year ago— and a 3% increase in selling and administrative expenses —to Ps.408 million, from Ps.396 million in the same quarter of 2011.

The reduction in costs results from higher efficiency in the production of successful content, derived from solid strategies that control disbursements effectively; while the performance of sales and administrative expenses is mainly related to the growth in advisory fees and service payments.

EBITDA and net income

EBITDA was Ps.1,608 million, compared to Ps.1,782 million in the same period of last year. The most significant change below EBITDA was a Ps.180 million decrease in comprehensive financial cost, mainly related to lower interest related expenses this period.

Net income for the quarter was Ps.1,111 million, from Ps.1,263 million last year.

Debt

As of December 31, 2012, Azteca's outstanding debt —excluding Ps.1,558 million debt due in 2069—was Ps.9,039 million, 9% bellow the Ps.9,993 million from the previous year.

The cash balance of the company was Ps.7,271 million, compared to Ps.8,318 million a year ago. As a result, net debt was Ps.1,768 million, from Ps.1,675 million from the prior year. Debt to last twelve months (LTM) EBITDA ratio was 2 times, and net debt to LTM EBITDA was 0.4 times.

Fiber optic network

Azteca successfully concluded the installation of fiber optics in 226 municipalities in Colombia during the quarter, from a total of 753 municipalities in which it will deploy a network of 19,000 kilometers in a two and a half year period.

As previously announced, Azteca is building the largest network in Latin America, which will cover close to 80% of Colombian territory, and will commercialize telecommunications services in the country. For its installation, the government of Colombia will provide close to US$235 million. The commercialization of the services will result in the diversification and strengthening of Azteca's results, by adding its operation to the solid performance of its broadcast television business.

Twelve months results

Net sales in the year were Ps.12,570 million, 3% above the Ps.12,199 million in 2011. Total costs and expenses were Ps.8,087 million, from Ps.7,522 million for 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.

Azteca reported EBITDA of Ps.4,483 million, compared to Ps.4,677 million from the prior year; the EBITDA margin for 2012 was 36%. The company recorded net income of Ps.2,307 million, 5% above the Ps.2,199 million from 2011, mainly due to an exchange gain in the year, compared to exchange loss in 2011.


	2011	2012	Change
			Ps.	%

Net sales	$12,199	$12,570	$371	3%

EBITDA	$4,677	$4,483	$(194)	-4%

Net income	$2,199	$2,307	$109	5%

Net income per CPO	$0.74	$0.77	$0.03	5%

Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of December 31, 2011 was 2,985 million and as of December 31, 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.



TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of December 31 of 2011 and 2012)

	Fourth Quarter of:
	2011		2012
					Change

Net revenue	Ps 3,874	100%	Ps 3,627	100%	Ps (247)	-6%

Programming, production and transmission costs	1,696	44%	1,611	44%	(85)	-5%
Selling and administrative expenses	396	10%	408	11%	12	3%
Total costs and expenses	2,092	54%	2,019	56%	(73)	-3%

EBITDA	1,782	46%	1,608	44%	(174)	-10%

Depreciation and amortization	141		144		3
Other expense -Net	42		123		81

Operating profit	1,599	41%	1,341	37%	(258)	-16%

Equity in income from affiliates	56		29		(27)

Comprehensive financing result:
Interest expense	(292)		(189)		102
Other financing expense	(19)		(10)		10
Interest income	39		51		12
Exchange loss -Net	(107)		(52)		55
	(379)		(199)		180

Income before the following provision	1,277	33%	1,171	32%	(105)	-8%

Provision for income tax	(31)		(58)		(27)

Net income	Ps 1,245		Ps 1,113		Ps (132)

Non-controlling share in net profit	Ps (17)		Ps 2		Ps 20

Controlling share in net profit	Ps 1,263	33%	Ps 1,111	31%	Ps (152)	-12%




TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of December 31 of 2011 and 2012)

	Period ended December 31,
	2011		2012
					Change

Net revenue	Ps 12,199	100%	Ps 12,570	100%	Ps 371	3%

Programming, production and transmission costs	6,056	50%	6,577	52%	521	9%
Selling and administrative expenses	1,467	12%	1,510	12%	44	3%
Total costs and expenses	7,522	62%	8,087	64%	565	8%

EBITDA	4,677	38%	4,483	36%	(194)	-4%

Depreciation and amortization	509		556		47
Other expense -Net	289		331		42

Operating profit	3,879	32%	3,595	29%	(283)	-7%

Equity in income from affiliates	57		36		(21)

Comprehensive financing result:
Interest expense	(931)		(922)		9
Other financing expense	(97)		(148)		(52)
Interest income	149		223		73
Exchange Gain -Net	(328)		132		460
	(1,206)		(715)		491

Income before the following provision	2,730	22%	2,916	23%	186	7%

Provision for income tax	(548)		(619)		(71)

Net income	Ps 2,182		Ps 2,297		Ps 116

Non-controlling share in net profit	Ps (17)		Ps (10)		Ps 7

Controlling share in net profit	Ps 2,199	18%	Ps 2,307	18%	Ps 109	5%




TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of December 31 of 2011 and 2012)

	At December 31
	2011	2012
			Change
Current assets:
Cash and cash equivalents	Ps 8,318	Ps 7,271	Ps (1,047)
Accounts receivable	7,751	5,894	(1,857)
Other current assets	1,875	2,110	235

Total current assets	17,944	15,275	(2,669)	-15%

Exhibition rights	1,328	1,505	177
Property, plant and equipment-Net	3,339	3,465	126
Television concessions-Net	7,721	7,565	(156)
Other assets	1,021	1,481	460
Goodwill -Net	--	--	--
Deferred income tax asset	4,286	4,286	--
Total long term assets	17,695	18,302	607	3%

Total assets	Ps 35,639	Ps 33,577	Ps (2,062)	-6%


Current liabilities:
Short-term debt	Ps 667	Ps 667	Ps --
Other current liabilities	2,561	2,493	(68)

Total current liabilities	3,228	3,160	(68)	-2%

Long-term debt:
Structured Securities Certificates	5,210	4,547	(663)
Long-term debt	4,116	3,825	(291)
Total long-term debt	9,326	8,372	(954)
Other long term liabilities:
Advertising advances	7,532	5,419	(2,113)
American Tower Corporation (due 2069)	1,674	1,558	(116)
Deferred income tax asset	3,106	3,112	6

Total other long-term liabilities	12,312	10,089	(2,223)	-18%

Total liabilities	24,866	21,621	(3,245)	-13%

Total stockholders' equity	10,773	11,956	1,183	11%

Total liabilities and equity	Ps 35,639	Ps 33,577	Ps (2,062)	-6%

CONTACT: Investor Relations:

Bruno Rangel
+ 52 (55) 1720 9167
jrangelk@tvazteca.com.mx

Carlos Casillas
+ 52 (55) 1720 9167
cjcasillas@tvazteca.com.mx

Press Relations:

Jaime Ramos
+ 52 (55) 1720 1416
jramosr@tvazteca.com.mx

Daniel McCosh
+ 52 (55) 1720 0059
dmccosh@tvazteca.com.mx

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