Grupo Radio Centro Reports Fourth Quarter and Year-End Results for the Period Ended December 31, 2007

Grupo Radio Centro Reports Fourth Quarter and Year-End Results for the Period Ended December 31, 2007

MEXICO CITY, Feb. 19 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B. de C.V. (NYSE:RC) (NYSE:BMV:) (NYSE:RCENTRO-A) (the "Company"), one of Mexico's leading radio broadcasting companies, announced today its results of operations for the fourth quarter and year ended December 31, 2007. All figures were prepared in accordance with the Mexican Financial Reporting Standards ("MFRS") issued by the Mexican Board for Research and Development of Financial Information Standards and have been restated in constant pesos as of December 31, 2007.

Fourth Quarter Results

Broadcasting revenue for the fourth quarter 2007 was Ps. 206,960,000, a 0.5% increase compared to the Ps. 205,961,000 reported in the fourth quarter 2006. This increase was mainly attributable to higher advertising expenditures by the Company's clients, who purchased more airtime in the fourth quarter 2007 compared to the fourth quarter 2006.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the fourth quarter 2007 were Ps. 109,899,000, a 4.6% increase compared to Ps. 105,054,000 reported in the fourth quarter 2006. This increase was primarily due to an increase in market research and advertising campaign expenses in the fourth quarter 2007.

For the fourth quarter 2007, the Company reported broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 97,061,000, a 3.8% decrease compared to the Ps. 100,907,000 reported in the fourth quarter 2006. This decrease in broadcasting income was mainly attributable to the increase in broadcasting expenses described above.

Depreciation and amortization expense for the fourth quarter 2007 was Ps. 8,051,000, a 13.1% decrease compared to the Ps. 9,266,000 reported in fourth quarter of 2006. This decrease was attributable to the Company no longer recording depreciation on certain assets due to the conclusion of its useful life after the fourth quarter 2006.

The Company's corporate, general and administrative expenses were Ps. 4,916,000 in the fourth quarter 2007, a slight increase compared to the Ps. 4,897,000 reported in the fourth quarter 2006.

The Company reported operating income of Ps. 84,094,000 in the fourth quarter 2007, a 3.1% decrease compared to the Ps. 86,744,000 in operating income of the fourth quarter 2006. This decrease was mainly due to an increase in broadcasting expenses during the fourth quarter 2007 compared to the fourth quarter 2006.

During the fourth quarter 2007, other expenses, net were Ps. 14,152,000, a 14.0% decrease compared to the Ps. 16,464,000 reported in the fourth quarter 2006. This decrease is primarily attributable to the recording of non- recurring expenses during 2006 in connection with the Company's 60th anniversary celebration.

The Company's comprehensive financing cost for the fourth quarter 2007 was Ps. 745,000, compared to a comprehensive financing cost of Ps. 31,738,000 in the fourth quarter 2006. This favorable change was mainly due to lower interest expenses in the fourth quarter 2007 which totaled Ps. 781,000 compared to the fourth quarter 2006, when the Company classified as 'interest expenses' the excess of book value over the purchase price obtained on the sale of certain accounts receivable of Ps. 27,877,000.

For the fourth quarter 2007, the Company reported income before extraordinary items of Ps. 69,197,000, a 79.5% increase compared to the Ps. 38,542,000 reported in the fourth quarter 2006, mainly as a result of the decrease in the comprehensive financing cost described above.

The Company's income before income taxes was the same as income before extraordinary items (Ps. 69,197,000) as the Company did not have any extraordinary items in the fourth quarter 2007. Income before income taxes in the fourth quarter 2006 was Ps. 41,902,000, reflecting an extraordinary item of Ps. 3,360,000 due to an inflation adjustment recorded in June 2006 in connection with the reversal of the provision for the contingent liability related to the arbitration proceeding.

The Company recorded income taxes of Ps. 23,161,000 in the fourth quarter 2007, compared to a negative provision of Ps. 4,700,000 in the fourth quarter 2006. This increase was primarily due to higher taxable income in the fourth quarter 2007 compared to the fourth quarter of 2006.

As a result of the foregoing, the Company's net income for the fourth quarter 2007 was Ps. 46,036,000, compared to net income of Ps. 46,602,000 in the fourth quarter 2006.

Twelve-Month Results

For the year ended December 31, 2007, broadcasting revenue was Ps. 654,760,000, a 20.7% decrease compared to the Ps. 825,588,000 reported in the same period of 2006. The decrease was mainly attributable to a decrease in advertising expenditures by political parties, which purchased more airtime in 2006 in connection with the July 2006 presidential and congressional elections.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the year ended December 31, 2007 were Ps. 421,970,000, an 8.3% decrease compared to the Ps. 460,070,000 reported in the same period 2006. This decrease was primarily due to a lower allowance for doubtful accounts, a decrease in sales commissions to the Company's general sales force resulting from the decrease in broadcasting revenue, and a lower provision for severance payments to Company employees (in accordance with Bulletin D-3 "Labor Obligations" under MFRS) during the year ended December 31, 2007 compared to 2006.

Broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) for the year ended December 31, 2007 was Ps. 232,790,000, a 36.3% decrease compared to the Ps. 365,518,000 reported in the same period 2006. This decrease was mainly attributable to the decrease in broadcasting revenue described above.

Depreciation and amortization expense for the year ended December 31, 2007 was Ps. 33,687,000, a 9.4% decrease compared to the Ps. 37,183,000 reported in the same period 2006. This decrease was attributable to the Company no longer recording depreciation on certain assets due to the conclusion of its useful life after the fourth quarter 2006.

The Company's corporate, general and administrative expenses for the year ended December 31, 2007 were Ps. 14,774,000, a 0.3% decrease compared to the Ps. 14,813,000 reported in 2006.

As a result of the foregoing, the Company reported operating income of Ps. 184,329,000 for the year ended December 31, 2007, a 41.2% decrease compared to the Ps. 313,522,000 in 2006.

Other expenses, net, for the year ended December 31, 2007 were Ps. 45,806,000, a 23.0% decrease compared to the Ps. 59,511,000 of 2006. This decrease was mainly attributed to lower legal expenses during 2007 compared to 2006, as well as non-recurring expenses incurred during 2006 in connection with the Company's 60th anniversary celebration.

The Company's comprehensive financing cost for the year ended December 31, 2007 was Ps. 5,850,000, an 85.3% decrease compared to the Ps. 39,842,000 reported in 2006. This favorable change was mainly due to a decrease in interest expense during, 2007 compared to 2006, when (i) the Company no longer recording interest on bank debt after paying off the remaining balance of its bank debt in May 2006, and (ii) the Company classified as interest expenses the excess of book value over the price obtained from the sale of certain accounts receivable.

For the year ended December 31, 2007, the Company reported income before extraordinary item of Ps. 132,673,000, a 38.1% decrease compared to the Ps. 214,169,000 reported in 2006, mainly as a result of the decrease in broadcasting revenue described above.

For the year ended December 31, 2007, the Company reported income before income taxes of Ps. 132,673,000, a 72.2% decrease compared to the Ps. 477,692,000 reported in 2006. In addition to higher broadcasting revenue, the 2006 period benefited from extraordinary items of Ps. 263,523,000, resulting from the reversal in June 2006 of the provision for the contingent liability related to the arbitration proceeding.

The Company recorded income taxes of Ps. 41,554,000 for 2007, compared to Ps. 42,944,000 in 2006.

As a result of the foregoing, the Company reported net income of Ps. 91,119,000 in 2007, compared to net income of Ps. 434,748,000 in 2006.

Company Description

Grupo Radio Centro owns and/or operates 14 radio stations. Of these 14 radio stations, Grupo Radio Centro operates 11 in Mexico City. The Company's principal activities are the production and broadcasting of musical and entertainment programs, talk shows, news and special events programs. Revenue is primarily derived from the sale of commercial airtime. In addition to the Organizacion Radio Centro radio stations, the Company also operates Grupo RED radio stations and Organizacion Impulsora de Radio (OIR), a radio network that acts as the national sales representative for, and provides programming to, Grupo Radio Centro-affiliated radio stations.

Note on Forward Looking Statements

This release may contain projections or other forward-looking statements related to Grupo Radio Centro that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Grupo Radio Centro with the United States Securities and Exchange Commission, specifically the most recent filing on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to Grupo Radio Centro on the date hereof, and Grupo Radio Centro assumes no obligation to update such statements.

                     GRUPO RADIO CENTRO, S.A.B. DE C.V.                    CONSOLIDATED AUDITED BALANCE SHEETS                      as of December 31, 2007 and 2006   in Mexican Pesos ("Ps.") with purchasing power as of December 31, 2007         (figures in thousands of Ps. and U.S. dollars ("U.S.$")(1)                                                      December 31,                                                     2007           2006                                             U.S.$(1)    Ps.         Ps.            ASSETS   Current assets:     Cash and temporary investments          15,298    167,011    101,741    Accounts receivable:     Broadcasting, net                       17,927    195,707    256,601     Other                                      427      4,663     19,367                                             18,354    200,370    275,968    Prepaid expenses                           3,056     33,360     26,469     Total current assets                    36,708    400,741    404,178    Property and equipment, net               42,279    461,555    481,220   Deferred charges, net                        554      6,047      4,631   Excess of cost over book value of    net assets of subsidiaries, net          75,925    828,863    828,734   Other assets                                 298      3,239      3,410         Total assets                       155,764  1,700,445  1,722,173             LIABILITIES   Current:     Advances from customers                 11,397    124,418    132,546     Suppliers and other accounts      payable                                 5,077     55,420     47,256     Taxes payable                            4,658     50,847     90,831        Total current liabilities            21,132    230,685    270,633    Long-Term:     Reserve for labor liabilities            5,368     58,605     54,706     Deferred taxes                             470      5,130      9,389        Total liabilities                    26,970    294,420    334,728             SHAREHOLDERS' EQUITY   Capital stock                            103,547  1,130,410  1,130,410   Cumulative earnings                       30,525    333,241    314,077   Reserve for repurchase of shares           4,016     43,837     43,837   Cumulative effect of deferred    income taxes                             (9,739)  (106,320)  (106,320)   Effects from labor liabilities               (83)      (907)      (310)   Surplus on restatement of capital            466      5,084      5,084   Minority interest                             62        680        667        Total shareholders' equity          128,794  1,406,025  1,387,445    Total liabilities and     Shareholders' equity                   155,764  1,700,445  1,722,173    (1)  Peso amounts have been translated into U.S. dollars, solely for the        convenience of the reader, at the rate of Ps. 10.9169 per U.S.        dollar, the noon buying rate for Mexican pesos on December 31, 2007        as published by the Federal Reserve Bank of New York.                        GRUPO RADIO CENTRO, S.A.B. DE C.V.  

CONSOLIDATED AUDITED STATEMENTS OF INCOME for the three-month and twelve-month periods ended December 31, 2007 and 2006

expressed in Mexican Pesos ("Ps.") with purchasing power as of

December 31, 2007 (figures in thousands of Ps. and U.S. dollars ("U.S. $")(1), except per Share

                            and per ADS amounts)                                  4th Quarter         Accumulated 12 months                               2007         2006          2007        2006                          U.S.$(1)  Ps.      Ps.    U.S.$(1)  Ps.      Ps.    Broadcasting    revenue(2)            18,958  206,960  205,961  59,977  654,760  825,588   Broadcasting expenses,    excluding    depreciation,    amortization and    corporate, general    and administrative    expenses              10,067  109,899  105,054  38,653  421,970  460,070   Broadcasting income     8,891   97,061  100,907  21,324  232,790  365,518    Depreciation and    amortization             737    8,051    9,266   3,086   33,687   37,183   Corporate, general    and administrative    expenses                 450    4,916    4,897   1,353   14,774   14,813   Operating income        7,704   84,094   86,744  16,885  184,329  313,522    Other expenses, net(3) (1,296) (14,152) (16,464) (4,196) (45,806) (59,511)    Comprehensive    financing cost:     Interest expense        (72)    (781) (27,820)   (253)  (2,767) (37,665)     Interest income (2)      (7)     (79)    (184)     37      399      480     (Loss) Gain on       foreign currency       exchange, net          (1)     (12)     (32)      0       (5)       8     (Loss) Gain on net       monetary position      12      127   (3,702)   (318)  (3,477)  (2,665)                             (68)    (745) (31,738)   (534)  (5,850) (39,842)    Income before    extraordinary item    and income taxes:      6,340   69,197   38,542  12,155  132,673  214,169    Extraordinary item          0        0    3,360       0        0  263,523   Income before income    taxes                  6,340   69,197   41,902  12,155  132,673  477,692      Income taxes          2,122   23,161   (4,700)  3,806   41,554   42,944   Net income              4,218   46,036   46,602   8,349   91,119  434,748    Net income applicable    to:     Majority interest     4,217   46,025   46,611   8,347   91,098  434,685     Minority interest         1       11       (9)      2       21       63                           4,218   46,036   46,602   8,349   91,119  434,748    Net income (loss) per    Series A Share(4)                                0.051   0.5598   2.6712   Net income (loss) per    ADS(4)                                           0.459   5.0382  24.0408   Weighted average    common shares    outstanding (000's)(4)                                  162,725  162,500     (1)  Peso amounts have been translated into U.S. dollars, solely for the        convenience of the reader, at the rate of Ps. 10.9169 per U.S.        dollar, the noon buying rate for Mexican pesos on December 31, 2007        as published by the Federal Reserve Bank of New York.   (2)  Broadcasting revenue for a particular period includes (as a        reclassification of interest income) interest earned on funds        received by the Company pursuant to advance sales of commercial air        time to the extent that the underlying funds were earned by the        Company during the period in question. Advances from advertisers are        recognized as broadcasting revenue only when the corresponding        commercial air time has been transmitted. Interest earned and treated        as broadcasting revenue for the fourth quarter of 2007 and 2006 was        Ps. 1,867,000 and Ps. 1,724,000, respectively. Interest earned and        treated as broadcasting revenue for the twelve months ended December        31, 2007 and 2006 was Ps. 3,333,000 and Ps. 4,797,000, respectively.   (3)  "Other expenses, net" include employee profit sharing expenses, which        were previously recorded under "Provisions for income tax and        employee profit sharing". This reclassification is required by        Bulletin D-3 ("Beneficios a los empleados"), published by the Mexican        Board for Research and Development of Financial Information        Standards.   (4)  Earnings per share calculations are made for the last twelve months        as of the date of the income statement, as required by the Mexican        Stock Exchange.  

Source: Grupo Radio Centro, S.A.B. de C.V.

CONTACT: In Mexico, Pedro Beltran, or Alfredo Azpeitia,
aazpeitia@grc.com.mx, both of Grupo Radio Centro, S.A.B. de C.V.,
+52-55-5728-4800 Ext. 7018; or In NY, Maria Barona, or Peter Majeski, both of
i-advize Corporate Communications, Inc. for Grupo Radio Centro, S.A.B. de
C.V., +1-212-406-3690, grc@i-advize.com.mx

Web site: http://www.radiocentro.com.mx/

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