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TV Azteca Announces Net Revenue Of Ps.3,583 Million and EBITDA Of Ps.985 Million In The Third Quarter Of 2021


MEXICO CITY, Oct. 26, 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 third quarter 2021.

“The gradual recovery of economic activity indicators strengthened the advertising market in Mexico in the period, which, together with the company’s competitive content and our special coverage of segments of the Tokyo Olympic Games and the soccer Gold Cup, boosted the demand of numerous advertisers for commercial spaces on TV Azteca,” commented Rafael Rodríguez, CEO of TV Azteca. “In order to preserve the financial and operational viability of the company, we developed strategies that effectively controlled production costs in all of our programs, which, in the context of increased revenues, generated higher EBITDA levels in the quarter.”

Third quarter results

Net revenue for the period was Ps.3,583 million, 44% higher the Ps.2,494 million for the same quarter of last year. Total costs and expenses increased 21% to Ps.2,597 million, from Ps.2,139 million for the previous year.

As a result, the company reported EBITDA of Ps.985 million, compared to Ps.356 million a year ago. TV Azteca generated operating income of Ps.800 million, from an operating income of Ps.120 million in the previous year.

The company recorded net income of Ps.102 million, compared to net loss of Ps.77 million in the same period of 2020.






3Q 2020

3TQ2021

Change




Ps.

%






Net sales

$2,494

$3,583

$1,088

44%






EBITDA 

$356

$985

$630

—-






Operating result   

$120

$800

$680

—-






Net result     

$(77)

$102

$179

—-






Net result per CPO

$(0.03)

$0.03

$0.06

—-











Figures in millions of pesos.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

The number of CPOs outstanding as of September 30, 2020 was 2,984 million and as of September 30, 2021 was 2,986 million.

Net sales

The company’s advertising sales in Mexico grew 47%, to Ps.3,409 million, from Ps.2,322 million in the previous year, in the context of an improvement in the performance of domestic economic aggregates, as well as the transmission of segments of sporting events such as the Tokyo Olympics and the 2021 soccer Gold Cup.

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.62 million, compared to Ps.59 million the previous year.

Azteca Comunicaciones Perú reported revenue of Ps.112 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 21% in the quarter as a result of a 17% growth in production, programming and transmission and telecommunications services costs — to Ps.2,343 million, from Ps.1,995 million a year ago — together with a 76% increase in selling and administrative expenses, to Ps.254 million, compared to Ps.144 million from the previous year.

The increase in costs, which was lower than the revenue growth this period, reflects strategies that strengthen efficiencies 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.56 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, travelling and personnel expenses.

EBITDA and net results

The company’s EBITDA was Ps.985 million, compared to Ps.356 million in the same period of the previous year. TV Azteca reported operating income of Ps.800 million, from an operating income of Ps.120 million a year ago.

Significant variations below EBITDA were the following:

Ps.22 million in income from affiliates compared to loss of Ps.132 million a year ago, mainly due to positive results of Grupo Orlegi this period compared to a loss in the same quarter of 2020.

Ps.305 million losses in foreign exchange this period, compared to a profit of Ps.345 million a year ago, as a consequence of the net liability monetary position in dollars together with a depreciation of the exchange rate of the peso against the dollar this period, compared with exchange appreciation the previous year.

A Ps.151 million reduction in assets impairment, due to cancellation of a provision for contingencies related to the Atlas soccer team the previous year.

TV Azteca recorded a net income of Ps.102 million in the quarter, from a net loss of Ps.77 million a year ago.

Balance Sheet

As of September 30, 2021, TV Azteca’s debt with cost was Ps.12,642 million, compared to Ps.14,410 million from the previous year. The decrease is mainly due to 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 due in 2022, as a consequence of the purchase of Certificates in the secondary market.

The balance of cash and cash equivalents at the end of the quarter totaled Ps.3,646 million, compared to Ps.1,782 million a year ago. The company’s net debt as of September 30, 2021 was Ps.8,996 million, from Ps.12,628 million from the previous year.

Nine months’ results

Net sales for the first nine months of 2021 grew 35%, to Ps.9,232 million, from Ps.6,813 million in the same period of 2020, largely as a result of higher demand for advertising space in the context recovery of economic activity indicators in Mexico.

Total costs and expenses were Ps.6,960 million, an increase of 6% from Ps.6,588 million in the same period of the previous year. As of result, TV Azteca reported EBITDA of Ps.2,271 million, compared to Ps.225 million in the first nine months of the previous year. Operating income was Ps.1,720 million, from a loss of Ps.529 million a year ago.

The company recorded a net profit of Ps.103 million, compared to a loss of Ps.3,560 million in the same period of 2020.






9M 2020

9M 2021

Change




Ps.

%






Net sales

$6,813

$9,232

$2,419

35%






EBITDA

$225

$2,271

$2,046

—-






Operating result    

$(529)

$1,720

$2,249

—-






Net result     

$(3,560)

$103

$3,664

—-






Net result per CPO

$(1.19)

$0.03

$1.23

—-











Figures in millions of pesos.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

The number of CPOs outstanding as of September 30, 2020 was 2,984 million and as of September 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 Spain’s 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


Rolando Villarreal

Grupo Salinas


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

Tel. +52 (55) 2601-5400, ext. 11502


Tel. +52 (55) 2601-5400, ext. 11508

jrangelk@gruposalinas.com.mx


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 September 30 of 2020 and  2021 )






















Third Quarter  of :





2020


2021









Change











Net revenue

Ps

2,494

100%

Ps

3,583

100%

Ps

1,088

44%











Programming, production and transmission costs


1,995

80%


2,343

65%


348

17%

Selling and administrative expenses


144

6%


254

7%


110

76%

Total costs and expenses


2,139

86%


2,597

72%


458

21%











EBITDA


356

14%


985

28%


630

177%











Depreciation and amortization


179



166



(13)


Other expense -Net


57



20



(37)


Operating profit


120

5%


800

22%


680

567%











Equity in income from affiliates


(132)



22



154












Comprehensive financing result:










Interest expense


(316)



(264)



52


Other financing expense


(49)



(13)



36


Interest income


18



29



11


Exchange loss  -Net


345



(305)



(649)




(1)



(552)



(551)












Income before the following provision


(14)

-1%


269

8%


283












Provision for income tax


(184)



(167)



17












(Loss) Profit from continuing operations


(198)



102



300












Impairment of long-live assets


(30)





30


Profit (loss) from discontinued operations


151





(151)












Net income

Ps

(77)


Ps

102


Ps

179












Non-controlling share in net profit

Ps

0


Ps

(1)


Ps

(1)












Controlling share in net profit  

Ps

(77)

-3%

Ps

103

3%

Ps

180


 

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

CONSOLIDATED RESULTS OF OPERATIONS

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






















Period ended September 30,





2020


2021











Change











Net revenue

Ps

6,813

100%

Ps

9,232

100%

Ps

2,419

35%











Programming, production and transmission costs


6,112

90%


6,313

68%


201

3%

Selling and administrative expenses


476

7%


648

7%


172

36%

Total costs and expenses


6,588

97%


6,960

75%


373

6%











EBITDA


225

3%


2,271

25%


2,046

907%











Depreciation and amortization


546



489



(57)


Other expense -Net


208



62



(146)


Operating profit


(529)

-8%


1,720

19%


2,249












Equity in income from affiliates


(85)



51



136












Comprehensive financing result:










Interest expense


(995)



(805)



190


Other financing expense


(312)



(299)



12


Interest income


58



63



4


Exchange Gain  -Net


(1,211)



(274)



937




(2,460)



(1,316)



1,143












Income before the following provision


(3,073)

-45%


456

5%


3,528












Provision for income tax


(544)



(352)



192












(Loss) Profit from continuing operations


(3,617)



103



3,721












Impairment of long-live assets


(94)





94


Profit (loss) from discontinued operations


151





(151)












Net income

Ps

(3,560)


Ps

103


Ps

3,664












Non-controlling share in net profit  

Ps

1


Ps

(0)


Ps

(2)












Controlling share in net profit  

Ps

(3,561)

-52%

Ps

104

1%

Ps

3,665


 

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

CONSOLIDATED BALANCE SHEETS

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


















At September 30






2020


2021












Change

Current assets:










Cash and cash equivalents

 Ps 

1,782


 Ps 

3,646


 Ps 

1,864


Accounts receivable


4,002



3,583



(419)


Other current assets


2,564



2,225



(339)












Total current assets


8,348



9,454



1,106

13%











Accounts receivable


52



233



181


Exhibition rights


2,697



1,989



(708)


Property, plant and equipment-Net


3,328



2,974



(354)


Television concessions-Net


9,457



9,452



(5)


Other assets


1,318



738



(580)


Deferred income tax asset


2,201



1,970



(231)


Total long term assets


19,053



17,356



(1,697)

-9%











Total assets

 Ps 

27,401


 Ps 

26,810


 Ps 

(591)

-2%





















Current liabilities:










Short-term debt

 Ps 

174


 Ps 

2,799


 Ps 

2,625


Other current liabilities


5,917



7,142



1,225


Total current liabilities


6,091



9,942



3,850

63%











Long-term debt:










Securities Certificates


3,967





(3,967)


Long-term debt


10,269



9,843



(426)


Total long-term debt


14,236



9,843



(4,393)

-31%

Other long term liabilities:










Advertising advances


5,626



4,416



(1,210)


Deferred income tax


665



567



(98)


Other long term liabilities


779



620



(159)


Total other long-term liabilities


7,070



5,602



(1,467)

-21%











Total liabilities


27,397



25,387



(2,010)

-7%











Total stockholders’ equity


4



1,423



1,419












Total liabilities and equity

 Ps 

27,401


 Ps 

26,810


 Ps 

(591)

-2%

 

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

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















Period ended September 30,



2020



2021

Operating activities:






Income before taxes on earnings

Ps

(3,073)


Ps

456







  Charges to income not affecting resource


2,873



2,019

Cash flow generated before taxes to income


(200)



2,474







  Accounts receivable and related parties


499



(765)

  Inventories and performance rights


26



64

  Accounts payable, accrued expenses and taxes on earnings


589



449

Net cash flow from operating activities


913



2,222







Investing activities:






  Acquisitions of property and equipment, intangibles and others


(154)



(481)

Net cash flows from investing activities


(154)



(481)







Financing activities:






  Repayment of borrowings, net


(1,710)



(1,214)

  Proceeds from borrowings


1,708



  Interest paid


(1,158)



(367)

  Others


(102)



(79)

Net cash flows from financing activities


(1,262)



(1,660)







  Increase in cash and cash equivalents


(502)



81

  Cash and cash equivalents at beginning of year


2,284



3,566

Cash and cash equivalents at end of year

Ps

1,782


Ps

3,646

 

Cision View original content:https://www.prnewswire.com/news-releases/tv-azteca-announces-net-revenue-of-ps3-583-million-and-ebitda-of-ps985-million-in-the-third-quarter-of-2021–301409253.html

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



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