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TV Azteca Announces Net Revenue of Ps.2,980 Million and EBITDA of Ps.676 Million in the Second Quarter of 2021

·12 min read

MEXICO CITY, July 22, 2021 /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 2021.

"Higher demand for advertising time in the company's competitive content, in the context of the recovery of economic activity indicators — from limited levels of activity a year ago — drove growth in sales this quarter," commented Rafael Rodríguez, CEO of TV Azteca. "Higher revenue was congruent with initiatives that generate higher efficiencies in our programming production process, which contributed to strengthening the operational and financial viability of the company in the period."

Second quarter results

Net revenue for the period was Ps.2,980 million, 60% higher the Ps.1,857 million for the same quarter of last year. Total costs and expenses increased 34% to Ps.2,304 million, from Ps.1,714 million for the previous year.

As a result, the company reported EBITDA of Ps.676 million, compared to Ps.142 million a year ago. TV Azteca reported operating income of Ps.485 million, from an operating loss of Ps.112 million in the previous year.

The company recorded a net income of Ps.283 million, compared to a net loss of Ps.707 million in the same period of 2020.


2Q 2020

2Q 2021

Change




Ps.

%






Net sales

$1,857

$2,980

$1,123

60%






EBITDA

$142

$676

$533

374%






Operating income

-$112

$485

$597

----






Net result

-$707

$283

$989

----






Net result per CPO

-$0.24

$0.09

$0.33

----

Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of June 30, 2020 was 2,984 million and as of June 30, 2021 was 2,986 million.

Net sales

Advertising sales for the company in Mexico increased 66% to Ps.2,810 million, from Ps.1,694 million the previous year, in the context of better performing economic aggretates compared to the previous year.

The sum of revenue of TV Azteca Guatemala and TV Azteca Honduras, as well as the company's content sales outside of Mexico, was Ps.66 million, compared to Ps.50 million the previous year.

Azteca Comunicaciones Perú reported revenue of Ps.104 million from Ps.113 million a year ago. The revenue resulted from telecommunications services and reimbursements from the Peruvian government for maintenance and operation of the fiber optic network.

Costs and SG&A Expenses

Total costs and expenses increased 34% in the quarter as a result of a 29% growth in production, programming and transmission and telecommunications services costs — to Ps.2,085 million, from Ps.1,612 million a year ago —together with a 114% increase in selling and administrative expenses, to Ps.219 million, compared to Ps.103 million from the previous year.

The increase in costs, which was lower than the revenue growth this period, reflects strategies that strengthen efficienices in the content production process, which preserve the operational viability of the company, while maintaining the superior quality of the programming.

The costs of Azteca Comunicaciones Perú were Ps.82 million, from Ps.85 million a year ago. The reduction is mainly due to lower costs for the maintenance of the transmission infrastructure.

The increase in selling and administrative expenses reflects fees related to financial advisory services in the period, partially offset by lower operating and personnel expenses.

EBITDA and net results

The company's EBITDA was Ps.676 million, compared to Ps.142 million in the same period of the previous year. TV Azteca reported operating income of Ps.485 million, from an operating loss of Ps.112 million a year ago.

Significant variations below EBITDA were the following:

A Ps.79 million reduction in paid interests, as a result of a lower balance of debt with cost in the company, as well as a lower average exchange rate during the first half of this year, compared to 2020.

A Ps.78 million decrease in other financial expenses, derived from the sale of the company's investment portfolio a year ago.

A Ps.72 million increase in foreign exchange gain, as a consequence of the net monetary liability position in dollars, together with a greater appreciation of the exchange rate of the peso against the dollar this quarter compared to the previous year.

A Ps.64 million reduction in asset impairment, due to a change of venue and image of the Club Atlético Morelia soccer team a year ago.

An Ps.87 million decrease in tax provision, derived from an extraordinary provision of income tax a year ago.

TV Azteca recorded a net income of Ps.283 million in the quarter, from a net loss of Ps.707 million a year ago.

Balance Sheet

As of June 30, 2021, TV Azteca's debt with cost was Ps.12,356 million, compared to Ps.14,791 million from the previous year. The decrease results from the effect of a lower exchange rate — as of June 30, 2021, compared to the previous year — on the dollar denominated debt with cost, as well as a reduction in the balance of the company's Certificados Bursátiles.

In March, the company announced that it repurchased and canceled Ps.1,211 million of its Certificados Bursátiles with a principal of Ps.4,000 million and maturity in 2022, as a consequence of the purchase of Certificates in the secondary market.

The cash and cash equivalents balance at the end of the quarter was Ps.2,550 million, compared to Ps.2,234 million a year ago. The company's net debt as of June 30, 2021, was Ps.9,806 million, from Ps.12,557 million the previous year.

Six months' results

Net sales for the first six months of 2021 were Ps.5,649 million, in comparison with Ps.4,319 million for the same period of 2020. The growth derives from higher demand for advertising time in the context of the recovery of economic activity indicators in Mexico.

Total costs and expenses were Ps.4,363 million, a 2% reduction from Ps.4,449 million in the same period of the previous year, largely as a consequence of the implementation of strategies that generate greater efficiency in content production.

TV Azteca reported EBITDA of Ps.1,286 million, compared to a negative figure of Ps.130 million in the first half of the previous year. Operating income was Ps.921 million, from a negative result of Ps.649 million a year ago. The company recorded a net income of Ps.1 million, compared to a net loss of Ps.3,483 million in the same period of 2020.


6M 2020

6M 2021

Change




Ps.

%






Net sales

$4,319

$5,649

$1,130

31%






EBITDA

-$130

$1,286

$1,416

----






Operating income

-$649

$921

$1,569

----






Net result

-$3,483

$1

$3,485

----






Net result per CPO

-$1.17

$0.00

$1.17

----

Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of June 30, 2020 was 2,984 million and as of June 30, 2021 was 2,986 million.

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
jrangelk@gruposalinas.com.mx

Rolando Villarreal
TV Azteca, S.A.B. de C.V.
Tel. +52 (55) 2601-5400, ext. 11508
rvillarreal@tvazteca.com.mx

Press Relations:
Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
lpascoe@gruposalinas.com.mx

TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS

(Millions of Mexican pesos of June 30 of 2020 and 2021 )






















Second Quarter of :





2020


2021









Change











Net revenue

Ps

1,857

100%

Ps

2,980

100%

Ps

1,123

60%











Programming, production and transmission costs


1,612

87%


2,085

70%


473

29%

Selling and administrative expenses


103

6%


219

7%


117

114%

Total costs and expenses


1,714

92%


2,304

77%


590

34%











EBITDA


142

8%


676

23%


533

374%











Depreciation and amortization


186



159



(27)


Other expense -Net


68



31



(37)


Operating profit


(112)

-6%


485

16%


597












Equity in income from affiliates


(6)



5



12












Comprehensive financing result:










Interest expense


(341)



(262)



79


Other financing expense


(173)



(95)



78


Interest income


16



16



1


Exchange loss -Net


154



226



72




(345)



(114)



231












Income before the following provision


(463)

-25%


376

13%


839












Provision for income tax


(180)



(93)



87












(Loss) Profit from continuing operations


(643)



283



926












Impairment of long-live assets


(64)



-



64












Net income

Ps

(707)


Ps

283


Ps

989












Non-controlling share in net profit

Ps

1


Ps

1


Ps

(1)












Controlling share in net profit

Ps

(708)

-38%

Ps

282

9%

Ps

990












TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS

(Millions of Mexican pesos of June 30 of 2020 and 2021 )






















Period ended June 30,





2020


2021











Change











Net revenue

Ps

4,319

100%

Ps

5,649

100%

Ps

1,330

31%











Programming, production and transmission costs


4,117

95%


3,970

70%


(147)

-4%

Selling and administrative expenses


332

8%


393

7%


62

19%

Total costs and expenses


4,449

103%


4,363

77%


(86)

-2%











EBITDA


(130)

-3%


1,286

23%


1,416












Depreciation and amortization


367



323



(43)


Other expense -Net


152



42



(110)


Operating profit


(649)

-15%


921

16%


1,569












Equity in income from affiliates


48



30



(18)












Comprehensive financing result:










Interest expense


(680)



(541)



139


Other financing expense


(263)



(287)



(24)


Interest income


40



34



(6)


Exchange Gain -Net


(1,556)



30



1,586




(2,458)



(764)



1,695












Income before the following provision


(3,059)

-71%


186

3%


3,246












Provision for income tax


(360)



(185)



175












(Loss) Profit from continuing operations


(3,420)



1



3,421












Impairment of long-live assets


(64)



-



64












Net income

Ps

(3,483)


Ps

1


Ps

3,485












Non-controlling share in net profit

Ps

1


Ps

1


Ps

(0)












Controlling share in net profit

Ps

(3,484)

-81%

Ps

1

0%

Ps

3,485






















TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Millions of Mexican pesos of June 30 of 2020 and 2021)


















At June 30






2020


2021












Change

Current assets:










Cash and cash equivalents

Ps

2,234


Ps

2,550


Ps

316


Accounts receivable


4,355



3,636



(719)


Other current assets


2,932



2,411



(521)












Total current assets


9,521



8,597



(924)

-10%











Accounts receivable


28



-



(28)


Exhibition rights


2,469



2,012



(457)


Property, plant and equipment-Net


3,478



3,019



(459)


Television concessions-Net


9,461



9,450



(11)


Other assets


1,726



925



(801)


Deferred income tax asset


2,332



1,970



(362)


Total long term assets


19,494



17,376



(2,118)

-11%











Total assets

Ps

29,015


Ps

25,973


Ps

(3,042)

-10%





















Current liabilities:










Short-term debt

Ps

174


Ps

4


Ps

(170)


Other current liabilities


6,408



6,745



337


Total current liabilities


6,582



6,749



167

3%











Long-term debt:










Securities Certificates


3,969



2,774



(1,195)


Long-term debt


10,648



9,578



(1,070)


Total long-term debt


14,617



12,352



(2,265)

-15%

Other long term liabilities:










Advertising advances


6,472



4,594



(1,878)


Deferred income tax


608



571



(37)


Other long term liabilities


584



390



(194)


Total other long-term liabilities


7,664



5,555



(2,109)

-28%











Total liabilities


28,863



24,656



(4,207)

-15%











Total stockholders' equity


152



1,317



1,165

766%











Total liabilities and equity

Ps

29,015


Ps

25,973


Ps

(3,042)

-10%











TV AZTECA, S.A.B. DE C.V. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of Mexican pesos of June 30 of 2020 and 2021 )















Period ended June 30,



2020



2021

Operating activities:






Income before taxes on earnings

Ps

(3,059)


Ps

186







Charges to income not affecting resource


2,601



1,237

Cash flow generated before taxes to income


(459)



1,424







Accounts receivable and related parties


795



(688)

Inventories and performance rights


148



(57)

Accounts payable, accrued expenses and taxes on earnings


268



157

Net cash flow from operating activities


752



836







Investing activities:






Acquisitions of property and equipment, intangibles and others


(129)



(343)

Net cash flows from investing activities


(129)



(343)







Financing activities:






Repayment of borrowings, net


(1,709)



(1,213)

Proceeds from borrowings


1,708



-

Interest paid


(616)



(235)

Others


(57)



(61)

Net cash flows from financing activities


(674)



(1,509)







Increase in cash and cash equivalents


(50)



(1,016)

Cash and cash equivalents at begining of year


2,284



3,566

Cash and cash equivalents at end of year

Ps

2,234


Ps

2,550







Cision
Cision

View original content:https://www.prnewswire.com/news-releases/tv-azteca-announces-net-revenue-of-ps2-980-million-and-ebitda-of-ps676-million-in-the-second-quarter-of-2021--301339919.html

SOURCE TV Azteca, S.A.B. de C.V.