Mexico City, October 8, 2002--TV Azteca, S.A. de C.V. (NYSE:TZA;
BMV:TVAZTCA), one of the two largest producers of Spanish-language television
programming in the world, announced today that Mario San Roman, prior Director
of Distribution Channels of TV Azteca, was appointed COO. The move is designed
to further improve TV Azteca's organizational structure and efficiency of
operations.
"After a year at TV Azteca, I have decided to streamline the operations
of the company by building on a solid COO position," said Pedro Padilla, TV
Azteca's CEO. "Mario, who will be reporting directly to me, is the natural
selection for this post, as he has full knowledge of our production and
distribution process, he has been our in-house expert in viewer tastes for the
past four years. His experience, methods, and approach to viewers' preferences,
were key in strengthening our programming decision processes, which has been
decisive in our overall results."
In prior days, Mr. Padilla submitted Mario San Roman's appointment to
TV Azteca's board of directors for ratification, obtaining full support for the
decision.
Mr. San Roman joined TV Azteca in 1998, and started to be in charge of
the Azteca 13 network. He was soon in charge of all of our distribution
channels, responsibilities that he will maintain along with his new position.
The announcement comes at a time when TV Azteca is seeking dynamic
growth through innovative programming concepts, and new distribution channels
such as the Azteca America Network that is dedicated to serve the US Hispanic
population. The naming of Mr. San Roman is part of the management streamlining
at TV Azteca, and supports last year's appointment of Pedro Padilla as CEO, as
well as the August appointment of Carlos Hesles as company CFO. The post of COO
had been vacant for several quarters.
"I am excited about the challenges of the new appointment," commented
Mr. San Roman. "I am committed to delivering the same top quality programming
grids that have characterized us, and closely related to that, I will work hard
to bringing even more efficient operations into the company, which I consider is
an excellent opportunity to prove ourselves that things can
1
always be better."Mr. San Roman will head the company's Executive Committee that
is in charge of the day-to-day operations of TV Azteca.
Prior to joining TV Azteca, Mr. San Roman worked at the consumer
products company BDF Mexico as marketing director for Mexico for the company's
personal care products.
Mr. San Roman holds a B.A. in communication and marketing from the
Universidad Iberoamericana in Mexico. He also did post-graduate marketing and
management studies at the Stanford Graduate School of Business, the Instituto
Panamericano de Alta Direccion de Empresa, and the Ashridge Business School in
London.
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. TV Azteca affiliates include Azteca America
Network, a new broadcast television network focused on the rapidly growing US
Hispanic; Unefon, a Mexican mobile telephony operator focused on the mass
market; and Todito.com, an Internet portal for North American Spanish speakers.
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. Risks that may affect TV Azteca are identified in its Form 20-F and
other filings with the US Securities and Exchange Commission.
TV AZTECA ANNOUNCES 3Q02 EBITDA OF US$64 MILLION,
WITH A 43% MARGIN
--Net Sales Up 2% to 3Q Record--
FOR IMMEDIATE RELEASE
Mexico City, October 25, 2002--TV Azteca, S.A. de C.V. (NYSE:TZA;
BMV:TVAZTCA), one of the two largest producers of Spanish language television
programming in the world, reported today third quarter EBITDA of US$64 million,
unchanged from $64 million reported for the same period last year. EBITDA margin
for the quarter was 43%. Net sales increased 2% to US$149 million, which
represents a third quarter record level.
"Advertising demand was soft early in the quarter because many of our
clients overspent their budgets on the 2002 World Cup soccer championship," said
Pedro Padilla, TV Azteca's Chief Executive Officer. "Despite the glum start of
the quarter, we were able to offset some of the effects through innovative
programming and proactive sales efforts, and thus continue with our positive
quarterly sales trend."
"We were also able to partly offset costs of new programming formats
during the quarter through expense controls, which allowed us to preserve
profitability," Mr. Padilla added.
Third Quarter Results
Net revenue grew 2% to US$149 million, up from US$145 million one year
ago. Total costs and expenses increased 4% to US$84 million from US$81 million
for the same period last year. As a result, the Company reported EBITDA of US$64
million, the same as the third quarter of last year. EBITDA margin was 43%,
compared with 44% for the prior year period. Net income for the quarter was US$1
million, compared with US$5 million for the same period of last year.
1
Millions of pesos1 and dollars 2 except percentages and per share amounts.
--------------------------------------------------------------------------
3Q 2001 3Q 2002 Change
US$ %
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net Revenue
Pesos Ps. 1,484 Ps. 1,517
US$ US$ 145 US$ 149 4 +2%
EBITDA
Pesos Ps. 655 Ps. 657
US$ US$ 64 US$ 64 0 0%
Net Income
Pesos Ps. 50 Ps. 10
US$ US$ 5 US$ 1 (4) -80%
Income per ADS3
Pesos Ps. 0.26 Ps. 0.05
US$ US$ 0.03 US$ 0.005 (0.03) -83%
1 Pesos of constant purchasing power as of September 30, 2002.
2 Conversion based on the exchange rate of Ps.10.21 per US dollar as of
September 30, 2002.
3 Calculated based on 188.9 million ADSs outstanding as of September 30,
2002.
Share of Commercial Audience
TV Azteca's full day commercial audience share was 36% during the
quarter, compared with 39% for the same period of 2001, and 34% for the prior
quarter.
Prime time share of the commercial audience during the third quarter
was 37%, compared with 40% for the same period of the prior year, and 34% for
the previous quarter.
"We're turning the ratings corner this year just in time for second
half seasonal demand. This is consistent with our strategy to provide our
clients with a level of gross rating points that matches their needs," commented
COO Mario San Roman. "La Academia, our new reality show that respects audiences
and advertisers' most significant values, together with our full lineup of
attractive programming, enabled us to capture sizeable, high-quality
viewership."
Net Revenue
The 2% increase in net revenue mirrors client budget spending, an 8%
average increase in third quarter's advertising rates in real terms, and a 5%
decrease in weighted-average full day utilization rates, compared with the same
quarter of last year.
"Product placement and sponsorships in our popular La Academia reality
show was key in making the best of a tough quarter," added Mr. San Roman. "Our
clients want to be part of the dreams that fuel our program's popularity."
Third quarter net revenue includes US$30 million from local advertising
sales, which were up 12% from the US$27 million reported in the same period of
2001. Local sales represented 20% of total net revenue compared to 18% a year
ago.
2
Sales of programming abroad, were US$2.8 million, 22% above the US$2.3
million of the third quarter of the prior year. Growth in programming exports
was principally driven by increased sales of the company's popular novelas
Cuando seas Mia and Como en el Cine, and by the opening of new markets in Asia.
During the quarter, TV Azteca reported content and advertising sales to
Todito.com of US$4.2 million, and US$1.6 million of advertising sales to Unefon.
Sales to Todito and Unefon were US$3.7 million and
US$500,000, respectively, in the same period last year.
Azteca America Network contributed an additional US$1.4 million to TV
Azteca's advertising sales during the quarter. Azteca America did not contribute
sales during the prior-year period.
Costs and Expenses
The 4% increase in third quarter costs and expenses resulted from a 5%
increase in production, programming and transmission costs from US$58 million to
US$61 million. Administration and sales costs were unchanged from the year-ago
quarter, at US$23 million.
"Cost increases reflect primarily immediate amortization of costs
incurred during the quarter for the production and transmission of La Academia,"
said CFO Carlos Hesles. "These conservative accounting practices will help avoid
future profitability constraints."
"We were able to partially counteract La Academia related costs through
stricter profitability control of other internally produced content, as well as
through lower operating and service expenses, which allowed us to continue
delivering sound EBITDA levels," Mr. Hesles added.
EBITDA and Net Income
The 2% increase in third quarter net sales combined with the 4%
increase in overall costs and expenses resulted in unchanged EBITDA of US$64
million, when compared with the third quarter last year. EBITDA margin was 43%.
Third quarter net income was US$1 million, compared with US$5 million
for the same quarter of 2001. The net income decrease was the result of a US$2
million increase in other expenses, and a US$2 million net comprehensive
financing cost increase during the quarter.
Management Changes
In August, the company announced the appointment of Carlos Hesles to
the position of Chief Financial Officer. Mr. Hesles has six years experience in
different financial and administrative positions within TV Azteca; including
treasury, budgeting and cost control, as well as in the company's operations,
which included direct supervision of Azteca Digital studios.
3
In October, Mario San Roman, prior Director of Distribution Channels of
TV Azteca, was appointed Chief Operating Officer. Mr. San Roman has extensive
knowledge of the company's production, distribution and marketing operations and
strategies. His experience, methods and approach to viewers' preferences have
been instrumental in strengthening TV Azteca's programming decision processes.
Both appointments will report to company CEO Pedro Padilla, and are
part of the company's management streamlining, which aims to bring further
efficiencies to daily operations. The appointments were ratified by the
company's board of directors.
Azteca America
During the quarter, Azteca America Network, TV Azteca's wholly owned
Spanish language broadcasting network focused on the US Hispanic market,
increased its coverage to 35% of Hispanics in the United States from 31% at the
end of the previous quarter, with no associated equity investment from TV
Azteca. This was achieved through the affiliation of stations in Albuquerque,
New Mexico; Austin, Texas; Wichita, Kansas; as well as Palm Springs and Santa
Barbara, California.
On the commercial side, Azteca America opened a sales office in New
York, and appointed Phillip Woodie as Executive Vice President of Network Sales.
Mr. Woodie, was formerly the head of national sales for Univision.
Regarding the Azteca America Network's relationship with Pappas
Telecasting, there have been a number of recent disputes between the company and
Pappas, the owner of Azteca America's station affiliates, in the Los Angeles and
San-Francisco-Oakland-San Jose, California; Houston, Texas; and
Reno-Sparks-Carson City, Nevada market areas. First, Pappas has refused to
permit Azteca International Corporation, the Company's U.S. subsidiary, to
complete the exercise of its option to purchase an equity interest in Pappas'
Los Angeles television station. Pappas claims that Azteca International
Corporation has not satisfied certain conditions to the purchase of the equity
interest. Azteca International Corporation filed a lawsuit against Pappas in
Delaware seeking specific performance of the equity option agreement, and the
matter is scheduled for trial in December 2002. In connection with its effort to
exercise the option, the Company paid US$32.3 million to acquire an existing
senior secured loan previously made by UBS AG that is secured by the Los Angeles
station, which increased the Company's secured loan to Pappas Telecasting of
Southern California LLC to US$52 million.
Second, Pappas alleged that Azteca International Corporation breached
its affiliation agreements covering these four U.S. television stations, and has
threatened to terminate these agreements. This matter is now the subject of
litigation in New York. Azteca International Corporation intends to preserve its
affiliation agreements with the Pappas Telecasting stations, and will seek to
enjoin Pappas if required in order to prevent the termination of the affiliation
agreements.
TV Azteca believes the U.S. Hispanic market continues to offer an
interesting opportunity to grow overall revenues and profitability for the
Company in the long term, and anticipates it can reach a 20% share of the US
Hispanic broadcast TV ad market in a
4
five-year period. TV Azteca considers that within that term, the Hispanic
broadcast TV ad market in the U.S. can surpass the size of the broadcast TV ad
market in Mexico.
Unefon
In October, the Company approved a one-year extension of its plan to
spin off its investment in Unefon, the Mexican mobile telephony company. Under
this plan, TV Azteca shareholders have rights, on a pro-rata basis, to acquire
the Company's equity interest in Unefon, for an exercise price similar to the
price TV Azteca paid for Unefon at the date of purchase, with an exercise date
on December 11, 2002, subject to certain conditions. The exercise date has been
extended until December 11, 2003.
TV Azteca had previously announced that its board of directors approved
a spin off of the Company's investment in Unefon in the form of a distribution
of Unefon shares to TV Azteca shareholders at no monetary cost, before the end
of year 2002. However, as a consequence of a dispute between Unefon and Nortel
Networks Limited, Unefon's major equipment supplier and lender, TV Azteca's
board of directors postponed the distribution to allow Unefon time to resolve
Unefon's disagreements with Nortel.
Nine Months Results
Net revenue for the first nine months of 2002 was US$454 million, 12%
up compared with US$405 million recorded one year ago. Nine months EBITDA was
US$192 million, 14% above the same period of 2001. EBITDA margin was 42%, the
same as the one reported in the first nine months of a year ago. Net income for
the period was US$26 million compared with US$80 million for the same period of
last year, principally due to foreign exchange losses.
Millions of pesos1 and dollars 2 except percentages and per share amounts.
9M 2001 9M 2002 Change
US$ %
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net Revenue
Pesos Ps. 4,132 Ps. 4,636
US$ US$ 405 US$ 454 49 +12%
EBITDA
Pesos Ps. 1,723 Ps. 1,965
US$ US$ 169 US$ 192 24 +14%
Net Income
Pesos Ps. 820 Ps. 263
US$ US$ 80 US$ 26 54) -68%
Income per ADS3
Pesos Ps. 4.34 Ps. 1.39
US$ US$ 0.43 US$ 0.14 0.29) -68%
1 Pesos of constant purchasing power as of September 30, 2002.
2 Conversion based on the exchange rate of Ps.10.21 per US dollar as of
September 30, 2002.
3 Calculated based on 188.9 million ADSs outstanding as of September 30,
2002.
5
TV Azteca will conduct a conference call to further discuss its third
quarter results on October 28, at 11:30 Eastern Time. Participants in the US may
dial: 877-858-7380, and in the rest of the world: 706-679-0213. Conference ID:
6322629. You may also access the conference call through our website:
http://www.tvazteca.com/corporativo/inversionistas/
Company Profile
TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national television networks,
Azteca 13 and Azteca 7, through more than 300 owned and operated stations across
Mexico. TV Azteca affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic market; Unefon, a
Mexican mobile telephony operator focused on the mass market; and Todito.com, an
Internet portal for North American Spanish speakers.
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. Risks that may affect TV Azteca are identified in its Form 20-F and
other filings with the US Securities and Exchange Commission. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
Investor Relations:
Bruno Rangel Rolando Villarreal
5255 3099 9167 5255 3099 0041
jrangelk@tvazteca.com.mx rvillarreal@tvazteca.com.mx
Media Relations:
Tristan Canales
5255?3099?5786
tcanales@tvazteca.com.mx
(financial tables follow)
6
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS*
(Millions of Mexican pesos of September 30, 2002 purchasing power)
Millions of US Dollars **
-------------------------
Third Quarter of: Third Quarter of:
----------------- -----------------
2001 2002 2001 % 2002 % Change
---- ---- ---- ---- ------
-------- -------- ------- ------- -----------
Dls %
Net revenue $ 1,484 $ 1,517 $ 145 100% $ 149 100% 3 2%
Programming, production and transmission costs 596 626 58 40% 61 41% 3 5%
Sales and administrative expenses 233 233 23 16% 23 15% 0 0%
----------- ---------- ---------- ---------- -------
EBITDA 655 657 64 44% 64 43% 0 0%
Depreciation and amortization 152 137 15 13 (1)
----------- ---------- ---------- ---------- -------
Operating profit 503 521 49 34% 51 34% 2 3%
----------- ---------- ---------- ---------- -------
Other expense -Net (81) (98) (8) (10) (2)
----------- ---------- ---------- ---------- -------
Comprehensive financing cost:
Interest expense (196) (175) (19) (17) 2
Other financing expense (9) (120) (1) (12) (11)
Interest income 50 49 5 5 (0)
Exchange loss-Net (160) (98) (16) (10) 6
Loss on monetary position (10) (4) (1) (0) 1
----------- ---------- ---------- ---------- -------
Net comprehensive financing cost (325) (349) (32) (34) (2)
----------- ---------- ---------- ---------- -------
Income before provision for income tax and deferred inc97e tax 73 9 7% 7 5% (2) -24%
Provision for:
Income tax (75) (63) (7) (6) 1
Deferred income tax benefit 29 3 - (3)
----------- ---------- ---------- ---------- -------
Net income $ 50 $ 10 $ 5 3% $ 1 1% (4) -80%
=========== ========== ========== ========== =======
----------- ---------- ---------- ---------- -------
Net loss of minority stock holders $ (0.3) $ 0.0 $ (0) $ 0 0
=========== ========== ========== ========== =======
----------- ---------- ---------- ---------- -------
Net income of majority stock holders $ 50 $ 10 $ 5 $ 1 (4)
=========== ========== ========== ========== =======
End of period exchange rate** $ 9.52 $ 10.21
* Mexican GAAP.
** The U.S. dollar figures represent the Mexican peso amounts as of September 30, 2002 expresed
as of September 30, 2002 purchasing power, translated at the exchange rate of Ps. 10.21 per U.S. dollar.
7
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS*
(Millions of Mexican pesos of September 30, 2002 purchasing power)
Millions of US Dollars **
-------------------------
Nine months ended September 30, Nine months ended September 30,
------------------------------- -------------------------------
2001 2002 2001 % 2002 % Change
---- ---- ---- ---- ------
Dls %
--- --
Net revenue $ 4,132 $ 4,636 $ 405 100% $ 454 100% 49 2%
Programming, production and transmission costs 1,727 1,973 169 42% 193 43% 24 4%
Sales and administrative expenses 681 697 67 16% 68 15% 2 2%
----------- ---------- --------- -------- -----
EBITDA 1,723 1,965 169 42% 192 42% 24 4%
Depreciation and amortization 449 384 44 38 (6)
----------- ---------- --------- --------- ----
Operating profit 1,274 1,581 125 31% 155 34% 30 24%
----------- ---------- --------- --------- ----
Other expense -Net (240) (265) (23) (26) (3)
---------- ---------- --------- --------- ----
Comprehensive financing cost:
Interest expense (554) (524) (54) (51) 3
Other financing expense (25) (118) (2) (12) (9)
Interest income 187 154 18 15 (3)
Exchange gain (loss)-Net 80 (371) 8 (36) (44)
Gain (loss) on monetary position 13 (45) 1 (4) (6)
---------- ---------- --------- --------- ----
Net comprehensive financing cost (298) (904) (29) (88) (59)
---------- ---------- --------- --------- ----
Income before provision for income tax and deferred in737e tax 412 72 18% 40 9% (32) -44%
Provision for:
Income tax (112) (149) (11) (15) (4)
Deferred income tax benefit 193 - 19 - (19)
---------- ---------- --------- --------- ----
Net income $ 818 $ 263 $ 80 20% $ 26 6% (54) -68%
=========== ========== ========== ========= ====
---------- ---------- --------- --------- ----
Net loss of minority stock holders $ (2) $ (0.3) $ (0) $ (0) 0
=========== ========== ========== ========= ====
---------- ---------- --------- --------- ----
Net income of majority stock holders $ 820 $ 263 $ 80 $ 26 (54)
=========== ========== ========== ========= ====
End of period exchange rate** $ 9.52 $ 10.21
* Mexican GAAP.
** The U.S. dollar figures represent the Mexican peso amounts as of September 30, 2002 expresed
as of September 30, 2002 purchasing power, translated at the exchange rate of Ps. 10.21 per U.S. dollar.
8
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS*
(Millions of Mexican pesos of September 30, 2002 purchasing power)
Millions of US Dollars**
------------------------
At September 30, At September 30, Change
------------------------------------- ------------------------------- -----------------
2001 2002 2001 2002 Dls %
---------- ---------- --------- ---------
Current assets:
Cash and cash equivalents $ 1,303 $ 1,304 $ 128 $ 128 0
Accounts receivable 3,657 2,862 358 280 (78)
Other current assets 1,029 1,071 101 105 4
Total current assets 5,989 5,237 586 513 (74) -13%
Accounts receivable from Unefon 1,996 2,042 195 200 5
Property, plant and equipment-Net 2,356 2,208 231 216 (14)
Television concessions-Net 3,710 3,597 363 352 (11)
Invesment in Unefon 1,835 1,755 180 172 (8)
Invesment in Todito 405 322 40 32 (8)
Investment in Azteca America - 1,006 - 98 98
Exhibition rights 816 1,242 80 122 42
Other assets 1,110 1,200 109 117 9
Goodwill -Net 673 637 66 62 (4)
Total long term assets 12,901 14,009 1,263 1,372 108 9%
--------------- -------------- --------------- ------------- ----------
Total assets $ 18,890 $ 19,246 $ 1,849 $ 1,884 35 2%
=============== ============== =============== ============= ==========
Current liabilities:
Short-term debt $ 407 $ 723 $ 40 $ 71 31
Other current liabilities 1,317 1,577 129 154 25
Total current liabilities 1,724 2,300 169 225 56 33%
Long-term liabilities
Guaranteed senior notes 4,245 4,341 416 425 9
Bank loans 1,573 1,544 154 151 (3)
Advertising advances 3,204 2,189 314 214 99) -32%
Unefon advertising advance 2,243 2,166 220 212 (8)
Todito advances 757 577 74 56 18)
Other long term liabilities 61 194 6 19 13
Total long-term liabilities 12,083 11,011 1,183 1,078 05) -9%
--------------- -------------- --------------- ------------- ----------
Total liabilities 13,807 13,311 1,352 1,303 (49) -4%
Total stockholders' equity 5,083 5,935 498 581 83 17%
--------------- -------------- --------------- ------------- ----------
Total liabilities and equity $ 18,890 $ 19,246 $ 1,849 $ 1,884 35 2%
=============== ============== =============== ============= ==========
End of period exchange rate $ 9.52 $ 10.21
* Mexican GAAP.
** The U.S. dollar figures represent Mexican peso amounts as of September 30, 2002, expresed
as of September 30, 2002 purchasing power, translated at the exchange rate of Ps. 10.21 per U.S. dollar.
9
TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(Millions of Mexican pesos of September 30, 2002 purchasing power)
Nine months ended September 30,
-------------------------------
Operations: 2001 2002
----------- ---- ----
Net income $ 818 $ 263
Charges (credits) to results of operation not affecting resources:
Amortization of concessions and goodwill 119 119
Depreciation 329 265
Equity method in associate and affiliates 56 77
Deferred income tax benefit (193) -
Net change in accounts receivable, inventories, exhibition rights,
related parties, accounts payable and accrued expenses 618 1,497
Unefon advertising advances (31) (54)
Todito advertising, programming, and services advances (139) (126)
Advertising advances (1,179) (2,373)
------------ --------------
Resources provided by (used in) operations 397 (334)
------------ --------------
Investment:
-----------
Acdquisition of property, machinery and equipment -Net (103) (143)
Account receivable from Pappas Southern California, LLC (185)
Investment in affiliates of Pappas Telecasting Companies, through
Azteca America (343)
Minority interest (3) 1
------------ --------------
Resources used in investing activities (290) (485)
------------ --------------
Financing:
----------
Guaranteed senior notes (205) 295
Bank loans -Net (24) 227
Stock options excercised 79 49
Preferred dividend paid (39) (37)
Repurchase of shares (5) (167)
Sale of treasury shares 143 134
------------ --------------
Resources (used in ) provided by financing activities (52) 501
------------ --------------
Increase (decrease) in cash and cash equivalents 55 (319)
Cash and cash equivalents at beginning of period 1,248 1,623
------------ --------------
Cash and cash equivalents at end of period $ 1,303 $ 1,304
============ ==============
10
[LETTERHEAD OF TV AZTECA]
AZTECA AMERICA OPENS NETWORK SALES OFFICE IN
NEW YORK CITY
--Midtown Manhattan Sales Office to be Headed by Hispanic Sales
Veteran Phillip R. Woodie--
FOR IMMEDIATE RELEASE
Mexico City, October 24, 2002--TV Azteca, S.A. de C.V. (NYSE: TZA; BMV:
TVAZTCA), one of the two largest producers of Spanish language television
programming in the world announced today that Azteca America, the company's
wholly-owned broadcasting network focused on the US Hispanic market, has opened
its network sales office in New York City.
Located in the heart of midtown Manhattan, the office will be led by
Phillip R. Woodie, a veteran of Hispanic television sales, who was appointed
Executive Vice President of Sales and Marketing. Azteca America will spearhead
its network sales efforts from this office, as well as managing national spot
sales for the majority of its affiliates.
Mr. Woodie has ample experience in Hispanic marketing and sales. From
1996 to 2000, he served as Senior Vice President of National Sales for Univision
Communications, Inc., where he was instrumental in rebuilding the company's
sales force. Previously, Mr. Woodie worked for the ABC Television for twelve
years in both local and national capacities.
"Phillip is unmatched in his ability to build top-notch sales teams.
We're excited to have his expertise with us at Azteca America," said Luis J.
Echarte, Azteca America President and CEO. "Although we are a relatively new
network, we're confident that Phillip will be key in taking us to the Big
Leagues in coming years. We have a top quality product. Phillip's first task has
been a nation-wide road show covering Los Angeles, New York, Chicago, Dallas,
Houston, San Antonio, and San Francisco," added Mr. Echarte.
Azteca America currently covers 35% of the US Hispanic market and plans
to achieve more coverage in the upcoming months. The road show represents an
opportunity for agencies and clients to learn about the potential of the
network.
1
"We were very well received by clients as well as agencies," said Mr.
Woodie. "All of them voiced interest in supporting an alternative in the market.
Many are aware of the success of TV Azteca in Mexico, and are looking forward to
the rollout of Azteca America as a network".
Joining Mr. Woodie's team will be Court Stroud, as Senior Vice
President of Sales and Marketing, and Gladys Ruiz-Abreu, as Marketing Director.
Mr. Stroud was local sales manager for Latino Mix 105.9 FM, in New York, and
previously, manager of Univision's New York spot sales office. Ms. Ruiz-Abreu
was senior marketing research analyst for Univision Communications in New York.
Company Profile
TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national television networks,
Azteca 13 and Azteca 7, through 554 owned transmitters across the country. TV
Azteca affiliates include Azteca America Network, a new broadcast television
network focused on the rapidly growing US Hispanic; Unefon, a Mexican mobile
telephony operator focused on the mass market; and Todito.com, an Internet
portal for North American Spanish speakers.
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. Risks that may affect TV Azteca are identified in its Form 20-F and
other filings with the US Securities and Exchange Commission.
Investor Relations:
Bruno Rangel
Director of Investor Relations
TV Azteca, S.A. de C.V.
5255 3099 9167
jrangelk@tvazteca.com.mx
Media Relations:
Daniel McCosh Carmen Lawrence or Anne Burkhimer
Corporate Communications Weber Shandwick
TV Azteca, S.A. de C.V. 310-407-6570 or
5255 3099 1313, ext. 1585 310-407-6568
dmccosh@tvazteca.com.mx clawrence@webershandwick.com,
aburkhimer@webershandwick.com
Next Section
Previous Section