TV Azteca Announces 14% EBITDA Growth to Ps.606 Million in 1Q09

TV Azteca Announces 14% EBITDA Growth to Ps.606 Million in 1Q09

--Net Sales Up 8% in the Quarter to Ps.1,995 Million--

MEXICO CITY, April 29 /PRNewswire-FirstCall/ -- TV Azteca, S.A. de C.V. (BMV: TVAZTCA; Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, announced today financial results for the first quarter of 2009.

"Our content reached audiences that were meaningful for many advertisers in Mexico and the US, expanding advertising sales in all our networks in the quarter," said Mario San Roman, Chief Executive Officer of TV Azteca. "The increased sales, combined with effective expense reduction strategies, resulted in a double digit expansion in EBITDA, to outstanding levels."

First Quarter Results

Net sales were Ps.1,995 million, 8% above the 1,844 million of the same quarter of 2008. Total costs and expenses were Ps.1,389 million, from Ps.1,312 million in the same period of the previous year.

As a result, TV Azteca reported EBITDA of Ps.606 million, 14% above the Ps.533 million in the first quarter of 2008. The EBITDA margin was 30%, one percentage point above the margin of the prior year. The company registered net majority loss of Ps.213 million, compared to loss of Ps.625 million a year ago.

Net Sales

"Content was particularly successful in pre-prime and prime times, where share of the commercial audience reached 40%, added Mr. San Roman. "Our sales force sold compelling space within the shows, allowing advertisers to reach target markets in an efficient manner."

First quarter revenue includes sales of Ps.24 million from Proyecto 40--UHF channel with pluralistic content in Mexico--compared to Ps.12 million in the same period of the prior year.

TV Azteca also reported net sales from Azteca America--the company's wholly owned broadcast television network focused on the U.S. Hispanic market--of Ps.184 million, 79% higher compared to Ps.103 million a year ago.

Programming sales to other countries were Ps.41 million in the period, compared to Ps.28 million the prior year. Revenue this quarter resulted from the sale of the programs Contrato de Amor, Cada Quien su Santo and Lo Que Callamos las Mujeres in Central and South America.

Revenue from barter sales was Ps.93 million, compared to Ps.52 million from the previous year.

Costs and Expenses

Total costs and expenses grew 6% in the quarter, as a result of a 9% increase in programming, production and transmission costs--to Ps.1,134 million, from Ps.1,038 million in the same period a year ago--and a 7% reduction in selling and administrative expenses--to Ps.255 million, from Ps.274 million in the same quarter of 2008.

The increase in costs reflects the effect of the exchange rate depreciation on the peso amount of costs and expenses of Azteca America, as well as on the acquired programming that was transmitted during the quarter. Higher costs also result from the transmission of an important number of sports events in the period.

Decrease in selling and administrative expenses derived from reductions in operating, personnel and travel expenses, as a result of initiatives that punctually control the company's outlays.

EBITDA and Net Income

EBITDA was Ps.606 million, 14% above Ps.533 million in the same period of the prior year.

The main change below EBITDA was a Ps.333 million reduction in provision for taxes, due primarily to an extraordinary charge in the deferred income tax a year ago.

Net majority loss for the period was Ps.213 million, compared to a net loss of Ps.625 million in the prior year.

Debt

As of March 31, 2009, TV Azteca's outstanding debt--excluding Ps.1,716 million debt due 2069--was Ps.7,143 million.

Such debt is peso denominated, and of it, Ps.6,000 million are long term Securities Certificates. The interest rate is fixed at 9.29% annually, thanks to interest coverage for the next three years.

The cash balance was Ps.3,119 million, which resulted in net debt of Ps.4,024 million. Debt to last twelve months (LTM) EBITDA ratio was 1.8 times, and net debt to LTM EBITDA was 1 time.

Company Profile

TV 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. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing U.S. Hispanic market, and Azteca Web, an Internet company for North American Spanish speakers.

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

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 TV Azteca and its subsidiaries are identified in documents sent to securities authorities.

First Call Analyst:
FCMN Contact: dmacias@elektra.com.mx

Source: TV Azteca, S.A. de C.V.

CONTACT: Investor Relations, Bruno Rangel, +52-55-1720-9167,
jrangelk@tvazteca.com.mx, or Dinorah Macias, +52-55-1720-0041,
dmacias@tvazteca.com.mx, or Press, Tristan Canales, +52-55-1720-1441,
tcanales@gruposalinas.com.mx, or Daniel McCosh, +52-55-1720-0059,
dmccosh@tvazteca.com.mx

Web Site: https://www.gruposalinas.com/

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Profile: International Entertainment