First quarter results
Net sales for the quarter were Ps.2,541 million, 5% above the Ps.2,417 million for the same quarter of last year. Total costs and expenses were Ps.2,013 million, compared to Ps.1,803 million from the same period last year.
As a result, Azteca reported EBITDA of Ps.528 million, compared to Ps.614 million from last year; EBITDA margin for the quarter was 21%. The company registered a net loss of Ps.178 million, compared to a net profit of Ps.152 million for the same quarter of 2013.
|1Q 2013||1Q 2014||Change|
|Net result per CPO||----|
Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of
Domestic ad sales were Ps.2,227 million in the quarter, 4% above the Ps.2,135 million for the same period of the previous year. In addition, the company registered sales from Azteca America—the company's wholly-owned broadcast television network focused on the U.S. Hispanic market—of Ps.269 million this quarter, a 8% growth compared to Ps.250 million a year ago, in the context of superior preference of advertisers to reach their targeted market segments through the company's programming.
Content sales to other countries were Ps.45 million in the quarter, from Ps.32 million from the previous year. The revenue was mainly related to the export of the programs Siempre Tuya Acapulco and Prohibido Amar, to Central and
Costs and expenses
Costs and expenses increased 12% during the period, as a result of a 14% growth in production, programming and transmission costs —to Ps.1,622 million, from Ps.1,423 million in the same period a year ago— and a 3% increase in selling and administrative expenses —to Ps.391 million, compared to Ps.380 million in the same quarter of 2013.
The growth in costs results mainly from the consolidation of the Atlas soccer team in the results of Azteca, as well as the strengthening of its player rooster. As it was previously announced, the soccer team was acquired by the company on
The increase in costs also reflects the consolidation of Azteca Comunicaciones Colombia in the results of the company. Azteca anticipates that the commercialization of telecommunications services in
The smaller increase in total costs and expenses compared to revenue is the result of strategies that generate additional operating efficiencies.
EBITDA and net result
EBITDA was Ps.528 million, compared to Ps.614 million in the same period of the prior year.
The most significant change below EBITDA was a Ps.240 million increase in comprehensive financing cost, as a result of deterioration in the exchange result during the quarter.
The company registered a net loss of Ps.178 million for the quarter, compared to a net income of Ps.152 million for the same period a year ago
Debt to last twelve months (LTM) EBITDA ratio was 2.5 times, and net debt to LTM EBITDA was one time.
Fiber optics network in
During the quarter Azteca made solid progress in the construction of the largest fiber optic network in
As previously announced, Azteca is building in a fiber optic network that will cover close to 80% of
Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in
Azteca is a
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, |
|CONSOLIDATED RESULTS OF OPERATIONS|
|(Millions of Mexican pesos of |
|First Quarter of :|
|Net revenue||Ps 2,417||100%||Ps 2,541||100%||Ps 124||5%|
|Programming, production and transmission costs||1,423||59%||1,622||64%||199||14%|
|Selling and administrative expenses||380||16%||391||15%||11||3%|
|Total costs and expenses||1,803||75%||2,013||79%||210||12%|
|Depreciation and amortization||149||171||22|
|Other expense -Net||59||61||2|
|Equity in income from affiliates||(10)||12||22|
|Comprehensive financing result:|
|Other financing expense||(12)||(21)||(10)|
|Exchange loss -Net||207||(5)||(212)|
|Income before the following provision||392||16%||64||3%||(328)||-84%|
|Provision for income tax||(244)||(246)||(2)|
|Net income||Ps 148||Ps (182)||Ps (330)|
|Non-controlling share in net profit||Ps (4)||Ps (4)||Ps (0)|
|Controlling share in net profit||Ps 152||6%||Ps (178)||-7%||Ps (329)||-217%|
|TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(Millions of Mexican pesos of March 31 of 2013 and 2014)|
|Cash and cash equivalents||Ps 6,728||Ps 6,013||Ps (714)|
|Other current assets||2,779||3,413||633|
|Total current assets||16,043||16,412||369||2%|
|Property, plant and equipment-Net||3,451||3,599||148|
|Deferred income tax asset||4,672||4,672||--|
|Total long term assets||19,682||21,675||1,993||10%|
|Total assets||Ps 35,725||Ps 38,087||Ps 2,362||7%|
|Short-term debt||Ps 667||Ps --||Ps (667)|
|Other current liabilities||2,468||3,438||970|
|Total current liabilities||3,135||3,438||303||10%|
|Structured Securities Certificates||4,444||--||(4,444)|
|Total long-term debt||8,077||10,199||2,122|
|Other long term liabilities:|
|American Tower Corporation (due 2069)||1,480||1,198||(282)|
|Deferred income tax asset||3,463||3,463||--|
|Total other long-term liabilities||12,631||12,381||(250)||-2%|
|Total stockholders' equity||11,882||12,069||187||2%|
|Total liabilities and equity||Ps 35,725||Ps 38,087||Ps 2,362||7%|
Source: TV Azteca, SAB de CV
CONTACT: Investor Relations
Bruno Rangel Grupo SalinasTel. +52 (55) 1720-9167 firstname.lastname@example.org Rolando VillarrealGrupo Elektra S.A.B. de C.V. Tel. +52 (55) 1720-9167 email@example.com Press Relations Luciano Pascoe Grupo SalinasTel. +52 (55) 1720 1313 ext. 36553 firstname.lastname@example.org Daniel McCosh Grupo SalinasTel. +52 (55) 1720-0059 email@example.com