EconomyFinancialLAST MINUTE: TV Azteca profits plummet due to less...

LAST MINUTE: TV Azteca profits plummet due to less advertising and the exchange rate

The drop in advertising sales and the exchange rate reduced TV Azteca’s financial results during the third quarter of 2022. In the period, the company’s net income plummeted 96% , reporting 4 million pesos compared to 102 million pesos that he obtained in the same period of 2021.

Between July and September the television station reported revenues of 3,392 million pesos , which meant a drop of 2% compared to the 3,471 million pesos reached in the third quarter of last year.

TV Azteca recognized in the financial report sent to the Mexican Stock Exchange (BMV) that currently television stations face great challenges to do business advertising due to the new ways in which brands can advertise .

Despite the fact that its sales were affected by this item, the operating flow (EBITDA, for its acronym in English) managed to remain at the levels of the third quarter of the previous year. From July to September, the company reported 932 million pesos, compared to the 929 million pesos registered in the same period of 2021, thanks to its expense control strategy.

The company explains that costs fell 3%. The reduction in expenses was reflected in content for both open television and digital media during the period. Currently, the company has broadcast programs such as Dragon Ball Z, which, according to specialists, helps reduce costs since it does not involve the recording and production of new programs.

The reduction in selling and administrative expenses reflects expenses for fees related to financial advisory services a year ago, as well as lower expenses for services this period, in line with strategies to preserve the operational viability of the company.

On the other hand, the company revealed that, as of September 30, 2022, TV Azteca’s cost-bearing debt amounts to 9,839 million , compared to 12,642 million the previous year.

In addition, during the third quarter, TV Azteca finished liquidating its Stock Certificates for 4,000 million pesos and maturing in 2022 as part of its commitment to reorganize its debt.

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