TV Azteca sells more but earns lees
Iñaki Ferreras ©RapidTVNews | 21-02-2012
Mexican second largest broadcaster TV Azteca has reported Q4 2011 sales of 3.821 billion pesos, 4% higher than in the same quarter of 2010.
Net income for the signing of Ricardo Salinas Pliego was 1.284 billion pesos, less than the 1.389 billion pesos in the fourth quarter of 2010.
"The increased demand (advertising) generated revenue growth, which resulted in an increase in EBITDA to the largest annual level ever recorded by the company," said Mario San Roman, CEO of Azteca on information sent to the Mexican Stock Exchange.
EBITDA, or EBITDA, stood at 1.836 million pesos, 1% more than the 1.816 billion pesos in the same period a year earlier.
Domestic sales of the company rose 3% in the fourth quarter to 3.472 million pesos. "The growth reflects a growing interest in Mexico for many advertisers to position their brands," the company added.
Sales of television revenues were supplemented with Azteca America, the broadcast television network focused on the U.S. Hispanic market, with 271 million pesos, up 4% as recorded in 2010.
TV Azteca entered 78 million pesos in the period from sales of content to other countries.
Total costs and expenses of the firm advanced 7% in the quarter as a result of a 6% increase in production costs, programming and transmission to 1.625 billion pesos.
In recent days, the network has been embroiled in controversy over its attempt to collect fees from cable TV companies. Before this, the group of firms that make PCTV (Cablemás, Cablevision Monterrey, Cablecom, Megacable and Telecable) complied with the requirement of Ricardo Salinas Pliego television station to stop broadcasting after failing to reach an agreement on the price per subscriber.