Grupo Radio Centro Reports Results for Third Quarter and First Nine Months of 2010

Grupo Radio Centro Reports Results for Third Quarter and First Nine Months of 2010

MEXICO CITY, Oct. 22 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B. de C.V. (NYSE: RC, BMV: RCENTRO-A) (the "Company"), one of Mexico's leading radio broadcasting companies, announced today its results of operations for the third quarter and nine months ended September 30, 2010. All figures were prepared in accordance with the Financial Reporting Standards issued by the Mexican Board for Research and Development of Financial Information Standards.

Third Quarter Results

Broadcasting revenue in the third quarter 2010 was Ps. 226,147,000, an 18.3% increase compared to the Ps. 191,215,000 reported in the third quarter 2009. This increase was mainly attributable to higher advertising expenditures by the Company's clients in Mexico during the third quarter 2010 compared to the same period 2009, as well as broadcasting revenue from Los Angeles radio station KXOS-FM.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the third quarter 2010 were Ps. 172,511,000, an 8.6% increase compared to the Ps. 158,817,000 reported in the third quarter 2009. This increase was primarily due to higher commissions paid to the Company's sales force due to higher broadcasting revenue in the third quarter 2010 compared to the same period in 2009. This increase was partially offset by a decrease in broadcasting expenses from Los Angeles radio station KXOS-FM.

For the third quarter 2010, the Company recorded broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 53,636,000, a 65.6% increase compared to the Ps. 32,398,000 reported in the third quarter 2009. This increase was mainly attributable to the increase in broadcasting revenue described above.

Depreciation and amortization expenses in the third quarter 2010 were Ps. 5,828,000, a slight decrease compared to the Ps. 6,404,000 reported in the third quarter 2009, as a result of a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses were Ps. 2,808,000 in both the third quarter of 2009 and 2010.

The Company recorded operating income of Ps. 45,000,000 in the third quarter 2010, a 94.1% increase compared to the Ps. 23,186,000 in operating income reported in the third quarter 2009. This increase was due to increased broadcasting revenue during the third quarter 2010 compared to the third quarter 2009 as described above.

During the third quarter 2010, other expenses, net, were Ps. 9,925,000, a 46.4% decrease compared to the Ps. 18,517,000 reported in the third quarter 2009. This decrease was mainly attributable to tax credits recorded by the Company's subsidiaries during the third quarter 2010.

The Company's comprehensive financing cost in the third quarter 2010 was Ps. 5,261,000, compared to Ps. 861,000 in the third quarter 2009. This change was primarily due to a Ps. 5,193,000 gain on net foreign currency exchange in the third quarter 2009, which was attributable to an appreciation in the peso value of a U.S. denominated loan from the Company to a U.S. subsidiary compared to a Ps. 10,000 gain in the third quarter 2010.

During the third quarter 2010, the Company recorded income before taxes of Ps. 29,814,000, compared to income before taxes of Ps. 3,808,000 reported in the third quarter 2009, which was primarily attributable to an increase in operating income, as well as a decrease in other expenses, net, during the third quarter 2010.

The Company recorded income taxes of Ps. 17,827,000 in the third quarter 2010, an increase of 61.7% compared to the Ps. 11,027,000 recorded in the third quarter 2009. This increase was due to higher taxable income in the third quarter 2010 than the third quarter 2009.

As a result of the foregoing, the Company recorded net income in the third quarter 2010 of Ps. 11,987,000, compared to a net loss of Ps. 7,219,000 in the third quarter 2009.

Nine-Month Results

For the nine months ended September 30, 2010, broadcasting revenue was Ps. 601,017,000, a 14.5% increase compared to the Ps. 524,996,000 reported in the same period 2009. The increase was mainly attributable to an increase in advertising expenditures by the Company's clients, who purchased more airtime in the first nine months 2010 than the comparable period in 2009, as well as the incorporation of the Company's Los Angeles radio station KXOS-FM.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the first nine months 2010 were Ps. 500,539,000, an 18.6% increase compared to the Ps. 422,128,000 reported in the same period 2009. This increase was primarily due to (i) broadcasting expenses incurred in connection with the Los Angeles radio station KXOS-FM beginning in April 2009, resulting in a comparison between nine months for the 2010 period and five and a half months for the 2009 period, (ii) higher sales commissions due to the increase in broadcasting revenue, and (iii) expenses related to the Company's mass media advertising campaigns.

Broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) in the first nine months 2010 was Ps. 100,478,000, a 2.3% decrease compared to the Ps. 102,868,000 reported in the same period 2009.

Depreciation and amortization expenses in the first nine months 2010 were Ps. 18,117,000, a 7.4% decrease compared to the Ps. 19,558,000 reported in the same period 2009. This decrease was due to a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses in the first nine months 2010 were Ps. 10,365,000, the same amount reported in 2009.

As a result of the foregoing, the Company recorded operating income of Ps. 71,996,000 in the first nine months 2010, a 1.3% decrease compared to the Ps. 72,945,000 reported in the same period 2009.

Other expenses, net, in the first nine months 2010 were Ps. 36,390,000, a 20.5% decrease compared to the Ps. 45,800,000 reported in the same period 2009. This decrease was mainly attributable to legal expenses incurred in 2009 related to agreements for the Los Angeles radio station, as well as revenue from tax credits during the third quarter 2010.

The Company's comprehensive cost of financing in the first nine months 2010 was Ps. 18,101,000, compared to Ps. 26,643,000 in the same period 2009. This change was primarily due to a lower loss on net foreign currency exchange from Ps. 10,048,000 in the first nine months 2009 to a Ps. 164,000 loss on net foreign currency exchange in the first nine months 2010.

For the first nine months 2010, the Company recorded income before taxes of Ps. 17,505,000 compared to income before taxes of Ps. 502,000 in the same period 2009, mainly due to the aforementioned decrease in the Company's other expenses, net, and comprehensive cost of financing.

The Company recorded income taxes of Ps. 29,994,000 in the first nine months 2010, compared to Ps. 21,345,000 recorded in the same period 2009.

As a result of the foregoing, the Company recorded a net loss of Ps. 12,489,000 in the first nine months 2010, compared to a net loss of Ps. 20,843,000 in the first nine months 2009.

Company Description

Grupo Radio Centro owns and/or operates 15 radio stations. Of these 15 radio stations, 12 are located in Mexico City, two AM stations, in Guadalajara and Monterrey, and one FM station in Los Angeles. 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, 108 Grupo Radio Centro-affiliated radio stations throughout Mexico.

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.

RI Contacts
In Mexico: In NY:
Pedro Beltran / Alfredo Azpeitia Maria Barona / Peter Majeski
Grupo Radio Centro, S.A.B. de C.V. i-advize Corporate Communications, Inc.
Tel: (5255) 5728-4800 Ext. 4910 Tel: (212) 406-3690

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of September 30, 2010 and 2009
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars
("U.S. $") (1)

September 30,
-------------
2010
U.S. $
(1) Ps.
------- ---
ASSETS
------
Current assets:
Cash and temporary investments 3,092 38,656
----- ------

Accounts receivable:
Broadcasting, net 18,837 235,483
Other 856 10,695
19,693 246,178
------ -------

Prepaid expenses 5,227 65,337
----- ------
Total current assets 28,012 350,171

Property and equipment, net 35,402 442,565
Prepaid expenses 0 0
Deferred charges, net 442 5,526
Excess of cost over book value of net assets of
subsidiaries, net 66,303 828,863
Other assets 268 3,338
--- -----
Total assets 130,427 1,630,463
======= =========

LIABILITIES
-----------
Current:
Notes payable 5,704 71,305
Advances from customers 4,593 57,413
Suppliers and other accounts payable 5,238 65,478
Taxes payable 2,360 29,501
Total current liabilities 17,895 223,697

Long-Term:
Notes payable 7,999 100,000
Reserve for labor liabilities 5,427 67,841
Deferred taxes 1,563 19,545
----- ------
Total liabilities 32,884 411,083
------ -------

SHAREHOLDERS' EQUITY
--------------------
Capital stock 90,425 1,130,410
Cumulative earnings 5,011 62,644
Reserve for repurchase of shares 3,507 43,837
Accumulated effect by conversion (1,425) (17,820)
Minority interest 25 309
--- ---
Total shareholders' equity 97,543 1,219,380
------ ---------
Total liabilities and Shareholders' equity 130,427 1,630,463
======= =========

September 30,
-------------
2009
Ps.
---
ASSETS
------
Current assets:
Cash and temporary investments 70,988
------

Accounts receivable:
Broadcasting, net 222,642
Other 32,119
254,761
-------

Prepaid expenses 113,688
-------
Total current assets 439,509

Property and equipment, net 466,107
Prepaid expenses 51,208
Deferred charges, net 3,717
Excess of cost over book value of net assets of
subsidiaries, net 828,863
Other assets 3,340
-----
Total assets 1,792,744
=========

LIABILITIES
-----------
Current:
Notes payable 31,950
Advances from customers 82,567
Suppliers and other accounts payable 72,725
Taxes payable 31,242
Total current liabilities 218,484

Long-Term:
Notes payable 150,000
Reserve for labor liabilities 64,614
Deferred taxes 0
---
Total liabilities 433,098
-------

SHAREHOLDERS' EQUITY
--------------------
Capital stock 1,130,410
Cumulative earnings 173,095
Reserve for repurchase of shares 43,837
Accumulated effect by conversion (1,393)
Minority interest 13,697
------
Total shareholders' equity 1,359,646
---------
Total liabilities and Shareholders' equity 1,792,744
=========

(1) Peso amounts have been translated into U.S. dollars, solely for
the convenience of the reader, at the rate of Ps. 12.5011 per U.S.
dollar, the rate on September 30, 2010.

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three-month and nine-month periods ended September 30, 2010
and 2009
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars
("U.S. $")(1), except per Share and per ADS amounts)

3rd Quarter
-----------
2010 2009
U.S.$
(1) Ps. Ps.
------ --- ---

Broadcasting revenue (2) 18,090 226,147 191,215
Broadcasting expenses, excluding
depreciation,
amortization and corporate, general and
administrative expenses 13,800 172,511 158,817
------ ------- -------
Broadcasting income 4,290 53,636 32,398
----- ------ ------

Depreciation and amortization 466 5,828 6,404
Corporate, general and administrative
expenses 225 2,808 2,808
--- ----- -----
Operating income 3,599 45,000 23,186
----- ------ ------

Other expenses, net (794) (9,925) (18,517)

Comprehensive financing cost:
Interest expense (418) (5,227) (6,054)
Interest income (2) (4) (44) 0
(Loss) on foreign currency exchange, net 1 10 5,193
--- --- -----
(421) (5,261) (861)
---- ------ ----

Income (loss) before income taxes 2,384 29,814 3,808

Income taxes 1,426 17,827 11,027
----- ------ ------
Net income (loss) 958 11,987 (7,219)

Net income (loss) applicable to:
Majority interest 958 11,987 9,619
Minority interest 0 0 (16,838)
-------
958 11,987 (7,219)
=== ====== ======

Net income per Series A Share (3)
Net income per ADS (3)
Weighted average common shares outstanding
(000's) (3)

Accumulated 9 months
--------------------
2010 2009
U.S.$
(1) Ps. Ps.
----- --- ---

Broadcasting revenue (2) 48,077 601,017 524,996
Broadcasting expenses, excluding
depreciation,
amortization and corporate, general and
administrative expenses 40,040 500,539 422,128
------ ------- -------
Broadcasting income 8,037 100,478 102,868
----- ------- -------

Depreciation and amortization 1,449 18,117 19,558
Corporate, general and administrative
expenses 829 10,365 10,365
--- ------ ------
Operating income 5,759 71,996 72,945
----- ------ ------

Other expenses, net (2,911) (36,390) (45,800)

Comprehensive financing cost:
Interest expense (1,475) (18,439) (16,790)
Interest income (2) 40 502 195
(Loss) on foreign currency exchange, net (13) (164) (10,048)
--- ---- -------
(1,448) (18,101) (26,643)
------ ------- -------

Income (loss) before income taxes 1,400 17,505 502

Income taxes 2,399 29,994 21,345
----- ------ ------
Net income (loss) (999) (12,489) (20,843)

Net income (loss) applicable to:
Majority interest (999) (12,494) 15,277
Minority interest 0 5 (36,120)
(999) (12,489) (20,843)
==== ======= =======

Net income per Series A Share (3) 0.015 0.1881 0.4483
Net income per ADS (3) 0.135 1.6929 4.0347
Weighted average common shares outstanding
(000's) (3) 162,725 162,725

(1) Peso amounts have been translated into U.S. dollars, solely for
the convenience of the reader, at the rate of Ps. 12.5011 per U.S.
dollar, the rate on September 30, 2010.

(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 third quarter of 2010 and
2009 was Ps. 1,126,000 and Ps. 1,051,000, respectively. Interest
earned and treated as broadcasting revenue for the nine months ended
September 30, 2010 and 2009 was Ps. 3,468,000 and Ps. 3,620,000,
respectively.

(3) 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.

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

CONTACT: In Mexico:  Pedro Beltran or Alfredo Azpeitia, Grupo Radio Centro S.A.B. de C.V., +011-5255-5728-4800, Ext. 4910; or in NY: Maria Barona or Peter Majeski, i-advize Corporate Communications, Inc., +1-212-406-3690

-------
Profile: intent