TV Azteca Announces 10% Nominal EBITDA Growth and 9% Sales Increase for 2Q08

- Net Income Grew 48% in Nominal Terms -

MEXICO CITY, July 22 /PRNewswire-FirstCall/ -- TV Azteca, S.A. de C.V.
(BMV: TVAZTCA; Latibex: XTZA), one of the two largest producers of
Spanish-language television programming in the world, announced today net
sales of Ps.2,448 million and EBITDA of Ps.934 million for the second quarter
of 2008. EBITDA margin for the period was 38%.
In nominal terms -- considering figures for each quarter in current pesos
-- sales grew 9%, EBITDA increased 10%, and net income rose 48%.
"During the quarter we offered superior advertising plans to satisfy the
continuous demand of our advertisers in all of our time slots, which
translated into robust sales growth," commented Mario San Roman, Chief
Executive Officer of TV Azteca. "The increase further strengthened our market
positioning and was key in the solid EBITDA and net income growth."
Second Quarter Results
As detailed in previous financial reports, changes in financial reporting
standards were implemented this year. Under the new rules, 2008 figures are
expressed in current pesos, while 2007 figures are reported in constant pesos
as of December 2007. The following analysis presents financial results
under the new rules.

2Q 2007 2Q 2008 Ps. Change % Nominal*

Net Sales $ 2,309 $ 2,448 $ 139 6 % 9 %

Costs and Expenses $ 1,433 $ 1,514 $ 81 6 % 9 %

EBITDA $ 876 $ 934 $ 58 7 % 10 %

Net Majority Income $ 225 $ 323 $ 98 44 % 48 %

Net Income per CPO $ 0.08 $ 0.11 $ 0.03 44 % 48 %

EBITDA: Operating Profit Before Depreciation and Amortization.
The number of CPOs outstanding as of June 30, 2008 was 2,938 million.
Figures from 2Q07 in millions of pesos of constant purchasing power as of
December 31, 2007, and figures of 2Q08 in current pesos.
* Change in nominal terms is included to help in the analysis of this
report. The nominal change is equivalent to adding the accumulated inflation
between June and December of 2007 to the new financial reporting rules.
Net Sales
"Our sales force offered ad options designed to achieve superior impact in
the target segment of each one of our clients in Mexico, contributing to
optimally positioning their brands in the viewership's preference, and
positively impacting the demand for commercial airtime in TV Azteca," added
Mr. San Roman.
Second quarter revenue includes sales of Ps.54 million from Proyecto 40,
which have been consolidated in TV Azteca results beginning this year.
TV Azteca also reported net sales from Azteca America -- the company's
wholly owned broadcast television network focused on the U.S. Hispanic market
-- of Ps.116 million, compared to Ps.145 million a year ago. The reduction
this quarter is related to the adverse economic environment in the United
States.
Programming sales to other countries were Ps.18 million in the period,
compared to Ps.25 million the prior year. Revenue this quarter resulted from
the sale of the shows Cambio de Vida, Lo que Callamos las Mujeres and Vivir
por Ti, in Central and South America, and Bellezas Indomables in Asia and
Europe.
Revenue from barter sales was Ps.88 million, 40% above the Ps.63 million
from the previous year.
Costs and Expenses
Total costs and expenses grew 6% in the quarter, as a result of an
increase in the same proportion of programming, production and transmission
costs -- to Ps.1,212 million, from Ps.1,138 million in the same period a year
ago -- and a 3% raise in selling and administrative expenses -- to Ps.302
million, compared with Ps.294 million in the same quarter of 2007.
The increase in costs mainly reflects the consolidation of Proyecto 40 in
TV Azteca results, and the broadcast of important sports events this quarter.
Growth in selling and administrative expenses was primarily due to a raise
in personnel expenses, travel and advisory fees, in line with increased
operations this quarter.
EBITDA and Net Income
EBITDA was Ps.934 million, 7% above the Ps.876 million in the same period
of the prior year. EBITDA margin was 38%, constant compared with the same
quarter of 2007.
Below EBITDA the main changes were: i) reduction of Ps.84 million in other
expenses; ii) increase of Ps.23 million in comprehensive cost of financing,
mainly derived from increased foreign exchange loss this quarter; and iii) a
reduction of Ps.16 million in net income of minority stockholders.
Net income for the period was Ps.323 million, 44% above the Ps.225 million
from a year ago.
Outstanding Debt
As of June 30, 2008, TV Azteca's outstanding debt -- excluding
Ps.1,232 million debt due 2069 -- was Ps.6,302 million. The cash balance was
Ps.2,230 million, which resulted in net debt of Ps.4,072 million.
Debt to last twelve months (LTM) EBITDA ratio was 1.6 times, and net debt
to EBITDA was 1 time.
Six Months Results
Net sales in the first six months of the year were Ps.4,292 million, up 4%
from the Ps.4,138 million of the same period of 2007. Total costs and expenses
were Ps.2,825 million, from Ps.2,651 million in the same period a year ago. As
a result, TV Azteca recorded EBITDA of Ps.1,467 million, compared with
Ps.1,487 million in the first half of the prior year. The company recorded a
majority net loss of Ps.302 million, compared with net income of
Ps.409 million in the same period of 2007. This year's loss was due to an
extraordinary increase in the deferred income tax of Ps.474 million in the
first quarter of 2008 -- due to presales registered in the period -- as well
as the creation of a reserve of prior years' Proyecto 40 preoperating expenses
of Ps.234 million, also in the first quarter of the year.

6M 2007 6M 2008 Ps. Change % Nominal*

Net Sales $ 4,138 $ 4,292 $ 154 4 % 7 %

Costs and Expenses $ 2,651 $ 2,825 $ 174 7 % 10 %

EBITDA $ 1,487 $ 1,467 $ (20) -1 % 2 %

Net Majority Income $ 409 $ (302) $ (711) -- --

Net Income per CPO $ 0.14 $ (0.10) $ (0.24) -- --

EBITDA: Operating Profit Before Depreciation and Amortization.
The number of CPOs outstanding as of June 30, 2008 was 2,938 million.
Figures of 2Q07 in millions of pesos of constant purchasing power as of
December 31, 2007, and figures of 2Q08 in current pesos.
* Change in nominal terms is included to help in the analysis of this
report. The nominal change is equivalent to adding the accumulated inflation
between June and December of 2007 to the new financial reporting rules.
Company Profile
TV Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national television
networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and
operated stations across the country, and Proyecto 40 that is broadcast on
UHF. TV Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing U.S. Hispanic market, and
Azteca Web, an Internet company for North American Spanish speakers.
TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of
dynamic, fast-growing, and technologically advanced companies focused on
creating shareholder value, contributing to build the middle class of the
countries in which they operate, and improving society through excellence.
Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com),
Grupo Salinas operates a as a management development and decision forum for
the top leaders of member companies. The companies include: TV Azteca
(www.irtvazteca.com), Azteca America (www.aztecaamerica.com), Grupo Elektra
(www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Afore Azteca
(www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx) and Grupo
Iusacell (www.iusacell.com). Each of the Grupo Salinas companies operates
independently, with its own management, board of directors and shareholders.
Grupo Salinas has no equity holdings. However, member companies share 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 forward-looking statements and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected. Other risks that may affect TV Azteca and its subsidiaries are
identified in documents sent to securities authorities.
Investor Relations:
Bruno Rangel Carla SanchezArmas
+ 52 (55) 1720 9167 + 52 (55) 1720 0041
jrangelk@tvazteca.com.mx csanchezarmas@tvazteca.com.mx

Press Relations:
Tristan Canales Daniel McCosh
+ 52 (55) 1720 1441 + 52 (55) 1720 0059
tcanales@gruposalinas.com.mx dmccosh@tvazteca.com.mx

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

Investor Relations, Bruno Rangel, +011-52-55-1720-9167,
jrangelk@tvazteca.com.mx, or Carla SanchezArmas, +011-52-55-1720-0041,
csanchezarmas@tvazteca.com.mx; or Press Relations, Tristan Canales,
+011-52-55-1720-1441, tcanales@gruposalinas.com.mx, or Daniel McCosh,
+011-52-55-1720-0059, dmccosh@tvazteca.com.mx, all of TV Azteca