MEXICO CITY, July 21 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B.
de C.V. (NYSE: RC; BMV: RCENTRO-A) (the 'Company'), one of Mexico's leading
radio broadcasting companies, announced today its results of operations for
the second quarter and first half ended June 30, 2009. All figures were
prepared in accordance with the Financial Reporting Standards issued by the
Mexican Board for Research and Development of Financial Information Standards.
Second Quarter Results
Broadcasting revenue for the second quarter of 2009 was Ps. 177,990,000, a
2.52% increase compared to the Ps. 173,613,000 reported for the second quarter
of 2008. This increase was mainly attributable to slightly higher advertising
expenditures by the Company's clients in Mexico during the second quarter of
2009 compared to the same period of 2008, and to the incorporation of the
Company's operation of Los Angeles radio station, KXOS-FM, pursuant to a Local
Marketing Agreement (the 'LMA') with Emmis Communications Corporation during
its first months of operations.
The Company's broadcasting expenses (excluding depreciation, amortization
and corporate, general and administrative expenses) for the second quarter of
2009 were Ps. 131,700,000, a 20.99% increase compared to the Ps. 108,856,000
reported for the second quarter of 2008. This increase was primarily due to
(i) broadcasting expenses incurred in connection with the Los Angeles radio
station KXOS-FM, to which the Company began providing programming in April
2009 pursuant to the LMA and (ii) an increase in the peso cost of U.S.
dollar-denominated rental payments under the Company's agreement to operate
Mexican station XHFO-FM, given the lower value of the Mexican peso in the
second quarter of 2009 compared to the second quarter of 2008.
For the second quarter of 2009, the Company recorded broadcasting income
(i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
of Ps. 46,290,000, a 28.52% decrease compared to the Ps. 64,757,000 reported
for the second quarter of 2008. This decrease was mainly attributable to the
aforementioned increase in broadcasting expenses.
Depreciation and amortization expenses for the second quarter of 2009 were
Ps. 6,614,000, a 17.85% decrease compared to the Ps. 8,051,000 reported for
the second quarter of 2008, due to a reduction in the amount of depreciable
assets.
The Company's corporate, general and administrative expenses were
Ps. 3,779,000 in the second quarter of 2009, a slight decline compared to the
Ps. 3,805,000 reported for the second quarter of 2008.
The Company recorded operating income of Ps. 35,897,000 in the second
quarter of 2009, a 32.14% decrease compared to the Ps. 52,901,000 in operating
income reported for the second quarter of 2008. This decline was due to
increased broadcasting expenses during the second quarter of 2009 compared to
the second quarter of 2008, as described above.
During the second quarter of 2009, other expenses, net, were
Ps. 34,859,000, a 176.18% increase compared to the Ps. 12,622,000 reported for
the second quarter of 2008. This increase was mainly attributable to legal
expenses incurred during the second quarter of 2009 in connection with the
Company's entry into the LMA.
The Company's comprehensive financing cost for the second quarter of 2009
was Ps. 24,710,000, compared to Ps. 4,370,000 in the second quarter of 2008.
This unfavorable change was primarily due to (i) a Ps. 16,030,000 loss on net
foreign currency exchange attributable to a decline in the peso value of a
U.S. denominated loan from the Company to a U.S. subsidiary, and (ii) a
130.05% increase in interest expense associated with the Company's loan from
Banco Inbursa, S.A. to fund amounts payable under the LMA.
For the second quarter of 2009, the Company recorded a loss before taxes
of Ps. 23,672,000, representing a decline from income before taxes of
Ps. 35,909,000 reported for the second quarter of 2008, which was primarily
attributable to the increases in broadcasting expenses, other expenses and in
the Company's comprehensive financing cost during the second quarter of 2009,
as described above.
The Company recorded income taxes of Ps. 4,615,000 in the second quarter
of 2009, a 55.92% decrease compared to the Ps. 10,469,000 recorded in the
second quarter of 2008. This decline was due to lower taxable income in the
second quarter of 2009 than in the second quarter of 2008.
As a result of the foregoing, the Company had a net loss for the second
quarter of 2009 of Ps. 28,287,000, compared to net income of Ps. 25,440,000 in
the second quarter of 2008.
First Half Results
For the six months ended June 30, 2009, broadcasting revenue was
Ps. 333,781,000, a 10.57% increase compared to the Ps. 301,871,000 reported
for the same period of 2008. The increase was mainly attributable to an
increase in advertising expenditures by the Company's clients, who purchased
more airtime during the first half of 2009 than the comparable period of 2008
and to a lesser extent to the incorporation of the Company's operation of Los
Angeles radio station KXOS-FM, during its first months of operations.
The Company's broadcasting expenses (excluding depreciation, amortization
and corporate, general and administrative expenses) for the first six months
of 2009 were Ps. 243,850,000, a 14.57% increase compared to the
Ps. 212,837,000 reported for the same period of 2008.
