TV Azteca Posts Loss

MEXICO CITY, April 24: For
the first quarter, TV Azteca has recorded a Ps. 624 million ($59.7 million)
loss, versus its profit of Ps. 184 million ($17.6 million) in the same period
last year, on revenues of Ps. 1.6 billion ($153.2 million), just a 1 percent
gain on Q1 2007.

The loss was related to an
increase in deferred income tax of Ps.474 million, due to presales recorded in
the period, an increase in other expenses of Ps.237 million, and a Ps.29
million rise in financing costs.

The company also recorded
a lower EBITDA, of Ps.533 million, compared with Ps.611 million in the same
quarter of the prior year.

"Continued preference
from advertisers to develop effective marketing campaigns in our solid
programming preserved the positive sales trend, despite reduced seasonal
activity due to Holy Week this quarter," commented Mario San Roman, the
CEO of TV Azteca. "Our clients’ perspective is positive, and translates
into solid results of the presale campaign, which together with robust
operating fundamentals, anticipate a year of growth and strength in our market
positioning."

He continued: "On the
strategic front, we announced the launch of operations in Guatemala to take
place in June, which gives an additional boost to the company's scope abroad,
and enhances the outlook for revenue and profitability.”

The company’s financial
statement stressed the difficulties of prior-year comparison, following the
introduction of changes in financial reporting standards and the consolidation
of the Proyecto 40 local channel in TV Azteca’s results. In comparable terms,
revenues grew 6 percent and EBITDA increased 4 percent.

Revenues include Ps. 28
million from international programming sales, 13 percent higher on the year-ago
period. Revenues from the Hispanic broadcaster Azteca America fell to Ps.103
million from Ps.124 million, as a result of the economic downturn in the U.S.

—By Mansha Daswani