TV AZTECA ANNOUNCES NET SALES OF Ps.3,589 MILLION AND EBITDA OF Ps.672 MILLION IN THE SECOND QUARTER OF 2022

—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.}

Net sales

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.

^{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.}

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.

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

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