—As part of the firm commitment to preserve its long-term viability, the company purchases Ps.2,136 million of its Certificados Bursátiles—
MEXICO CITY , July 28, 2022 /PRNewswire/ — TV Azteca, S.A.B. de C.V. (BMV: AZTECACPO Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, today announced financial results for the second quarter 2022.
“In line with our commitment to generate financial and operational efficiencies in order to be competitive in the long-term, and as part of the actions we have undertaken since 2021, we continue to take firm steps to ensure the orderly and responsible reorganization of our debt”, commented Rafael Rodríguez, CEO of TV Azteca. “During the quarter, we carried out the purchase in the secondary market of Ps.2,136 million of the company’s Certificados Bursátiles — of the principal for Ps.4,000 million due this year —, with the objective to amortize, in time and form, the remainder of the issued Certificados Bursátiles and strengthen our capital structure”, he added.
Second quarter results
Net sales for the period totaled Ps.3,589 million, 25% above the Ps.2,876 million for the same quarter of the previous year. Total costs and expenses increased 31% to Ps.2,917 million, from Ps.2,222 million in the previous year.
As a result, the company reported EBITDA of Ps.672 million, compared to Ps.654 million a year ago. TV Azteca generated operating income of Ps.479 million, from Ps.471 million the previous year.
The company recorded net income of Ps.162 million, compared to Ps.283 million in the same period of 2021.
Figures in millions of pesos.EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization. The number of CPOs outstanding as of June 30, 2022 was 2,986 million, unchanged from the previous year.
2Q 2021
2Q 2022
Change
Ps.
%
Net sales
$2,876
$3,589
$713
25 %
EBITDA
$654
$672
$18
3 %
Operating result
$471
$479
$8
2 %
Net result
$283
$162
$(120)
-43 %
Net result per CPO
$0.09
$0.05
$(0.04)
The company’s advertising sales in Mexico grew 11%, to Ps.3,122 million, from Ps.2,809 million a year earlier.
During the quarter, TV Azteca organized the Mexico Open at Vidanta golf tournament, a sporting event that creates important synergies with the company. The income generated by the tournament was Ps.377 million; the previous year the event was not held due to the health contingency derived from Covid 19.
The sum of revenues from TV Azteca Guatemala and TV Azteca Honduras, as well as the company’s content sales outside of Mexico, was Ps.90 million, compared to Ps.67 million the previous year.
Costs and SG&A Expenses
Total costs and expenses increased 31% in the quarter as a result of a 36% growth in production, programming and transmission costs — to Ps.2,719 million, from Ps.2,003 million a year ago — together with a 10% reduction in selling and administrative expenses, to Ps.198 million, compared to Ps.219 million in the previous year.
The increase in costs reflects Ps.410 million of costs related to the Mexico Open at Vidanta golf tournament, as well as costs related to efforts to generate competitive content during the period.
The reduction in selling and administrative expenses reflects lower fees, and personnel and travel expenses, in line with strategies to preserve the operational viability of the company.
EBITDA and net results
The company’s EBITDA was Ps.672 million, compared to Ps.654 million in the same period of the previous year. TV Azteca reported operating income of Ps.479 million, from Ps.471 million a year ago.
The main variations below EBITDA were as follows:
Increase of Ps.139 million from the participation in the results from affiliates, mainly due to profits growth of Grupo Orlegi and Arena Monterrey this period.
Foreign exchange loss of Ps.54 million, compared to gain of Ps.222 million a year ago, as a result of a net liability monetary position in dollars, together with depreciation of the exchange rate of the peso against the dollar this quarter, as of appreciation the previous year.
TV Azteca recorded net income of Ps.162 million in the quarter, from Ps.283 million the previous year.
Balance sheet
As of June 30, 2022, TV Azteca’s debt with cost was Ps.10,351 million, compared to Ps.12,356 million from the previous year.
In accordance with the company’s commitment to reorganize its debt, during the period TV Azteca bought in the secondary market Ps.2,136 million of its Certificados Bursátiles with a principal of Ps.4,000 million, due in 2022.
The balance of cash and cash equivalents at the end of the quarter was Ps.1,087 million, compared to Ps.2,281 million a year ago. The company’s net debt as of June 30, 2022 was Ps.9,264 million, from Ps.10,075 million the previous year.
The restricted cash balance — which reflects the amount to cover payments for content exhibition rights and other short-term obligations of the company — was Ps.1,103 million, compared to Ps.269 million a year ago.
Six month results
Net sales for the first six months of 2022 were Ps.6,504 million, compared to Ps.5,438 million in the same period of 2021. Total costs and expenses were Ps.5,154 million, from Ps.4,200 million in same period of the previous year,
As a consequence, TV Azteca reported EBITDA of Ps.1,350 million, compared to Ps.1,238 million in the first half of the previous year. Operating income was Ps.959 million, from Ps.888 million a year ago. The company recorded net income of Ps.447 million, compared to Ps.1 million in the same period of 2021.
6M 2021
6M 2022
$5,438
$6,504
$1,065
20 %
EBITDA
$1,238
$1,350
$112
9 %
Operating result
$888
$959
$71
8 %
Net result
$1
$447
$446
—-
Net result CPO
$0.00
$0.15
About TV Azteca
TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating four television networks in Mexico: Azteca uno, Azteca 7, adn40 and a+, through more than 300 owned and operated stations across the country. The company also owns TV Azteca Digital, operator of several of the most visited digital platforms and social networks in Mexico.
TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast growing, and technologically advanced companies focused on creating: economic value through market innovation and goods and services that improve standards of living; social value to improve community wellbeing; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include TV Azteca (www.TVazteca.com; www.irtvazteca.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Purpose Financial (havepurpose.com), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx), Punto Casa de Bolsa (www.puntocasadebolsa.mx), Totalplay (irtotalplay.mx; www.totalplay.com.mx) and Totalplay Empresarial (totalplayempresarial.com.mx). TV Azteca and Grupo Elektra trade shares on the Mexican Stock Market and in Spains’ Latibex market. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares 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 concepts about the future that involve risks and uncertainty that may cause actual results to differ materially from those projected. Other risks that may affect TV Azteca and its subsidiaries are presented in documents sent to the securities authorities.
Investor Relations:
Bruno Rangel
Grupo Salinas
Tel. +52 (55) 2601-5400, ext. 11502
[email protected]
Rolando Villarreal
TV Azteca, S.A.B. de C.V.
Tel. +52 (55) 2601-5400, ext. 11508
Press Relations:
Luciano PascoeTel. +52 (55) 1720 1313 ext. 36553[email protected]
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Millions of Mexican pesos of June 30 of 2021 and 2022 )
Second Quarter of :
2021
2022
Net revenue
Ps
2,876
100 %
3,589
713
Programming, production and transmission costs
2,003
70 %
2,719
76 %
716
36 %
Selling and administrative expenses
219
198
6 %
(21)
-10 %
Total costs and expenses
2,222
77 %
2,917
81 %
695
31 %
654
23 %
672
19 %
18
Depreciation and amortization
151
168
17
Other expense -Net
31
24
(7)
Operating profit
471
16 %
479
13 %
8
Equity in income from affiliates
5
145
139
Comprehensive financing result:
Interest expense
(258)
(0)
Other financing expense
(88)
(59)
29
Interest income
16
14
(2)
Exchange loss -Net
222
(54)
(275)
(108)
(357)
(248)
Income before the following provision
368
267
7 %
(101)
Provision for income tax
(93)
(90)
3
(Loss) Profit from continuing operations
274
177
(97)
Impairment of long-live assets
–
Profit (loss) from discontinued operations
(15)
(23)
Net income
283
162
(120)
Non-controlling share in net profit
1
(1)
Controlling share in net profit
282
10 %
5 %
-42 %
Period ended June 30,
5,438
6,504
1,065
3,807
4,780
74 %
973
26 %
393
374
(20)
-5 %
4,200
5,154
79 %
954
1,238
1,350
21 %
112
308
342
34
42
48
6
888
959
15 %
71
30
201
172
(533)
(539)
(274)
(142)
132
54
20
Exchange Gain -Net
12
176
163
(761)
(451)
310
157
710
11 %
552
(185)
(169)
(27)
540
568
(122)
447
446
Non-controlling share in net profit
0 %
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Millions of Mexican pesos of June 30 of 2021 and 2022)
At June 30
Current assets:
Cash and cash equivalents
Ps
2,281
1,087
(1,194)
Restricted Cash
269
1,103
834
Accounts receivable
3,636
4,217
581
Other current assets
2,410
2,910
500
Total current assets
8,597
9,317
720
226
218
(8)
Exhibition rights
2,012
Property, plant and equipment-Net
3,019
2,755
(263)
Television concessions-Net
9,450
9,350
(100)
Other assets
700
887
188
Deferred income tax asset
1,970
1,642
(329)
Total long term assets
17,376
17,134
(243)
-1 %
Total assets
25,973
26,450
477
Current liabilities:
Short-term debt
4
8,647
8,643
Other current liabilities
6,506
8,729
2,223
Total current liabilities
6,510
10,866
167 %
Long-term debt:
Securities Certificates
2,774
(2,774)
Long-term debt
9,578
1,704
(7,875)
Total long-term debt
12,352
(10,648)
-86 %
Other long term liabilities:
Advertising advances
4,595
4,550
(44)
Deferred income tax
571
254
(317)
Other long term liabilities
628
414
(214)
Total other long-term liabilities
5,794
5,218
(576)
Total liabilities
24,656
24,298
(358)
Total stockholders’ equity
1,317
2,152
835
63 %
Total liabilities and equity
TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Operating activities:
Income before taxes on earnings
Charges to income not affecting resource
1,333
809
Cash flow generated before taxes to income
1,490
1,519
Accounts receivable and related parties
(688)
Inventories and performance rights
(57)
(1,220)
Accounts payable, accrued expenses and taxes on earnings
158
(359)
Net cash flow from operating activities
903
(18)
Investing activities:
Acquisitions of property and equipment, intangibles and others
(442)
(74)
Net cash flows from investing activities
Financing activities:
Repayment of borrowings, net
(1,214)
(2,088)
Interest paid
(202)
(196)
Others
(61)
(46)
Net cash flows from financing activities
(1,477)
(2,330)
Increase in cash and cash equivalents
(1,016)
(2,422)
Cash and cash equivalents at begining of year
3,566
4,612
Cash and cash equivalents at end of year
2,550
2,190
View original content:https://www.prnewswire.com/news-releases/tv-azteca-announces-net-sales-of-ps3-589-million-and-ebitda-of-ps672-million-in-the-second-quarter-of-2022–301595802.html
SOURCE TV Azteca, S.A.B. de C.V.
Disclaimer: The above press release comes to you under an arrangement with PR Newswire. TheTechOutlook.com takes no editorial responsibility for the same.
