Telecommunications company TV Azteca from Mexico had one of the worst possible 2015. IT recorded in its annual financial report a net loss of USD 144.7 million, when in 2014 the company had revenues of USD 15.4 million, a figure that already aroused fears.
In addition, the company reported an annual operating cash flow of USD 139.3 million, which represents a drop of 33% (in local currency) compared to 2014. Its EBITDA for the fourth quarter of 2015 was of USD 71.4 million, 6% less than the same period last year but higher than the USD 39.7 million from 3Q 2015.
TV Azteca reported net income for 2015 by USD 706.7 million, practically the same as in 2014, while in 4Q it achieved sales for USD 227.9 million, an 8% increase over the same period the previous year and USD 35.2 million more than in the third quarter of 2015.
The Director General of TV Azteca, Benjamin Salinas, justified that “the higher costs are the results from the effect of exchange rate depreciation in exhibition rights in dollars and of the kick-start to operational phase of Azteca Comunicaciones in Colombia” while he promised to reverse the situation by betting on content, among other things.
“During the quarter we started the development of innovative formats, that surprise the vast market where broadcast television reaches, which together with maximum efficiency alternatives in production will result in higher cash generation and a gradual improvement in our debt levels”, said the executive in the letter to investors.