TV AZTECA ANNOUNCES SALES OF Ps.2,915 MILLION AND EBITDA OF Ps.678 MILLION IN THE FIRST QUARTER OF 2022

MEXICO CITY, May 2, 2022 / PRNewswire/-TV Azteca, SAB de CV (BMV: AZTECACPO Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, today announced financial results for the first quarter 2022.

“Despite the positive performance of revenue in the quarter, the company’s net sales are still below levels prior to the health contingency due to Covid-19,” commented Rafael Rodríguez, CEO of TV Azteca. “In this context, in the coming months we will seek to boost the production and acquisition of content, the investment in maintenance and equipment and hiring human resources, suspended during the health contingency, and which are necessary to overcome the great challenges for the year and offer the most competitive programming to audiences, in order to strengthen the revenue generation and preserve the operational and financial viability of the company. “

“Regarding our balance sheet, TV Azteca continues with the constructive dialogue with the holders of the notes denominated in foreign currency, which began the previous year, to allow the reorganization of its debt, in line with the context and situation of the company, and has the firm conviction that favorable agreements can be reached in the near future for all parties and for the development of Mexican television, “added Mr. Rodríguez.

First quarter results

Net sales for the period were Ps.2,915 million, 14% above the Ps.2,563 million for the same quarter of the previous year. Total costs and expenses increased 13% to Ps.2,237 million, from Ps.1,978 million in the previous year.

As a result, TV Azteca reported EBITDA of Ps.678 million, compared to Ps.584 million a year ago. The company generated operating income of Ps.480 million, from a profit of Ps.417 million the previous year.

TV Azteca recorded net income of Ps.285 million, compared to a net loss of Ps.281 million in the same period of 2021.


1Q 2021

1Q 2022

Change




Ps.

%






Net sales

$ 2,563

$ 2,915

$ 352

14%






EBITDA

$ 584

$ 678

$ 94

16%






Operating income

$ 417

$ 480

$ 63

15%






Net result

$ (281)

$ 285

$ 566

—–






Net result per CPO

$ (0.09)

$ 0.10

$ 0.19

—–






Figures in millions of pesos.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.
The number of CPOs outstanding as of March 31, 2022 was 2,986 million, unchanged from the previous year.

Net sales

The company’s advertising sales in Mexico grew 14%, to Ps.2,867 million, from Ps.2,513 million a year earlier.

The sum of revenues from TV Azteca Guatemala and TV Azteca Honduras, as well as the company’s content sales outside of Mexicowas Ps.48 million, compared to Ps.50 million the previous year.

Costs and SG&A Expenses

Total costs and expenses increased 13% in the quarter as a result of a 14% growth in production, programming and transmission costs – to Ps.2,061 million, from Ps.1,804 million a year ago – together with a 1% increase in selling and administrative expenses, to Ps.176 million, compared to Ps.174 million in the previous year.

The increase in costs – consistent with the growth in income – reflects the production of content and the acquisition of exhibition rights required by the company’s different platforms in the period.

The increase in selling and administrative expenses is the result of higher personnel, fees and travel expenses, partially offset by a reduction in operating expenses and services.

EBITDA and net results

The company’s EBITDA was Ps.678 million, compared to Ps.584 million in the same period of the previous year. TV Azteca reported operating income of Ps.480 million, from Ps.417 million a year ago.

The main variations below EBITDA were as follows:

Reduction of Ps.103 million in other financial expenses that reflects expenses related to the cancellation of foreign exchange hedges and interest on the company’s cost-bearing debt a year ago.

Foreign exchange gain of Ps.229 million, compared to a foreign exchange loss of Ps.209 million in the same quarter of 2021 as a result of a dollar net liability monetary position, together with the appreciation of the exchange rate of the peso against the dollar this period, compared to depreciation the previous year.

Reduction of Ps.99 million in the balance of discontinued operations, due to losses related to the discontinued operation of Azteca Comunicaciones Perú this quarter, compared to profit from the operations of the company a year ago.

TV Azteca recorded a net income of Ps.285 million in the quarter, from a net loss of Ps.281 million the previous year.

Balance Sheet

As of March 31, 2022TV Azteca’s debt with cost was Ps.12,432 million, compared to Ps.12,548 million from the previous year.

The balance of cash and cash equivalents at the end of the quarter was Ps.949 million, compared to Ps.1,671 million a year ago. The company’s net debt as of March 31, 2022 was Ps.11,483 million, from Ps.10,877 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.1,655 million, compared to Ps.246 million a year ago.

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

Rolando Villarreal

Salinas Group

TV Azteca, SAB de CV

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

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

[email protected]

[email protected]



Press Relations:

Luciano Pascoe

Tel. +52 (55) 1720 1313 ext. 36553

[email protected]



TV AZTECA, SAB DE CV AND SUBSIDIARIES

CONSOLIDATED RESULTS OF OPERATIONS

(Millions of Mexican pesos of March 31 of 2021 and 2022)






















First Quarter of:






2021


2022










Change











Net revenue

Ps

2,563

100%

Ps

2,915

100%

Ps

352

14%











Programming, production and transmission costs


1,804

70%


2,061

71%


257

14%

Selling and administrative expenses


174

7%


176

6%


1

1%

Total costs and expenses


1,978

77%


2,237

77%


258

13%











EBITDA


584

23%


678

23%


94

16%











Depreciation and amortization


156



174



17


Other expense -Net


11



24



13


Operating profit


417

16%


480

16%


63

15%











Equity in income from affiliates


25



57



32












Comprehensive financing result:










Interest expense


(275)



(281)



(6)


Other financing expense


(186)



(83)



103


Interest income


17



40



23


Exchange loss -Net


(209)



229



439




(652)



(94)



558












Income before the following provision


(210)

-8%


443

15%


653












Provision for income tax


(92)



(79)



12












(Loss) Profit from continuing operations


(302)



363



665












Profit (loss) from discontinued operations


21



(78)



(99)












Net income

Ps

(281)


Ps

285


Ps

566












Non-controlling share in net profit

Ps

0


Ps


Ps

(0)












Controlling share in net profit

Ps

(281)

-11%

Ps

285

10%

Ps

566


TV AZTECA, SAB DE CV AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Millions of Mexican pesos of March 31 of 2021 and 2022)


















At March 31






2021


2022












Change

Current assets:










Cash and cash equivalents

Ps

1,671


Ps

949


Ps

(722)


Restricted Cash


246



1,655



1,409


Accounts receivable


3,413



4,185



772


Other current assets


2,646



2,995



349


Total current assets


7,976



9,784



1,808

23%











Accounts receivable


28



225



197


Exhibition rights


2005



2,249



244


Property, plant and equipment-Net


3,114



2,812



(302)


Television concessions-Net


9,452



9,399



(53)


Other assets


797



847



50


Deferred income tax asset


1,970



1,640



(330)


Total long term assets


17,366



17,172



(194)

-1%











Total assets

Ps

25,342


Ps

26,956


Ps

1,614

6%





















Current liabilities:










Short-term debt

Ps

4


Ps

10,729


Ps

10,725


Other current liabilities


5,902



7,477



1,575


Total current liabilities


5,906



18,206



12,300












Long-term debt:










Securities Certificates


2,771





(2,771)


Long-term debt


9,773



1,703



(8,070)


Total long-term debt


12,544



1,703



(10,841)

-86%

Other long term liabilities:










Advertising advances


4,571



4,065



(506)


Deferred income tax


572



543



(29)


Other long term liabilities


709



447



(262)


Total other long-term liabilities


5,852



5,055



(797)

-14%











Total liabilities


24,302



24,964



662

3%











Total stockholders’ equity


1,040



1,992



952

92%











Total liabilities and equity

Ps

25,342


Ps

26,956


Ps

1,614

6%

TV AZTECA, SAB DE CV AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of Mexican pesos of March 31 of 2021 and 2022)















Period ended March 31,



2021



2022

Operating activities:






Income before taxes on earnings

Ps

(210)


Ps

443







Charges to income not affecting resource


607



161

Cash flow generated before taxes to income


397



604







Accounts receivable and related parties


(548)



(529)

Inventories and performance rights


106



(1,245)

Accounts payable, accrued expenses and taxes on earnings


(218)



(667)

Net cash flow from operating activities


(263)



(1,837)







Investing activities:






Acquisitions of property and equipment, intangibles and others




20

Net cash flows from investing activities




20







Financing activities:






Repayment of borrowings, net


(1,212)



(1)

Interest paid


(145)



(166)

Others


(29)



(24)

Net cash flows from financing activities


(1,386)



(191)







Increase in cash and cash equivalents


(1,649)



(2008)

Cash and cash equivalents at beginning of year


3,566



4,612

Cash and cash equivalents at end of year

Ps

1,917


Ps

2,604

SOURCE TV Azteca, SAB de CV

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