MEXICO CITY, Oct. 22 /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 third quarter and nine months ended September 30, 2010. All figures were prepared in accordance with the Financial Reporting Standards issued by the Mexican Board for Research and Development of Financial Information Standards.

Third Quarter Results

Broadcasting revenue in the third quarter 2010 was Ps. 226,147,000, an 18.3% increase compared to the Ps. 191,215,000 reported in the third quarter 2009. This increase was mainly attributable to higher advertising expenditures by the Company's clients in Mexico during the third quarter 2010 compared to the same period 2009, as well as broadcasting revenue from Los Angeles radio station KXOS-FM.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the third quarter 2010 were Ps. 172,511,000, an 8.6% increase compared to the Ps. 158,817,000 reported in the third quarter 2009. This increase was primarily due to higher commissions paid to the Company's sales force due to higher broadcasting revenue in the third quarter 2010 compared to the same period in 2009. This increase was partially offset by a decrease in broadcasting expenses from Los Angeles radio station KXOS-FM.

For the third quarter 2010, the Company recorded broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 53,636,000, a 65.6% increase compared to the Ps. 32,398,000 reported in the third quarter 2009. This increase was mainly attributable to the increase in broadcasting revenue described above.

Depreciation and amortization expenses in the third quarter 2010 were Ps. 5,828,000, a slight decrease compared to the Ps. 6,404,000 reported in the third quarter 2009, as a result of a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses were Ps. 2,808,000 in both the third quarter of 2009 and 2010.

The Company recorded operating income of Ps. 45,000,000 in the third quarter 2010, a 94.1% increase compared to the Ps. 23,186,000 in operating income reported in the third quarter 2009. This increase was due to increased broadcasting revenue during the third quarter 2010 compared to the third quarter 2009 as described above.

During the third quarter 2010, other expenses, net, were Ps. 9,925,000, a 46.4% decrease compared to the Ps. 18,517,000 reported in the third quarter 2009. This decrease was mainly attributable to tax credits recorded by the Company's subsidiaries during the third quarter 2010.

The Company's comprehensive financing cost in the third quarter 2010 was Ps. 5,261,000, compared to Ps. 861,000 in the third quarter 2009. This change was primarily due to a Ps. 5,193,000 gain on net foreign currency exchange in the third quarter 2009, which was attributable to an appreciation in the peso value of a U.S. denominated loan from the Company to a U.S. subsidiary compared to a Ps. 10,000 gain in the third quarter 2010.

During the third quarter 2010, the Company recorded income before taxes of Ps. 29,814,000, compared to income before taxes of Ps. 3,808,000 reported in the third quarter 2009, which was primarily attributable to an increase in operating income, as well as a decrease in other expenses, net, during the third quarter 2010.

The Company recorded income taxes of Ps. 17,827,000 in the third quarter 2010, an increase of 61.7% compared to the Ps. 11,027,000 recorded in the third quarter 2009. This increase was due to higher taxable income in the third quarter 2010 than the third quarter 2009.

As a result of the foregoing, the Company recorded net income in the third quarter 2010 of Ps. 11,987,000, compared to a net loss of Ps. 7,219,000 in the third quarter 2009.

Nine-Month Results

For the nine months ended September 30, 2010, broadcasting revenue was Ps. 601,017,000, a 14.5% increase compared to the Ps. 524,996,000 reported in the same period 2009. The increase was mainly attributable to an increase in advertising expenditures by the Company's clients, who purchased more airtime in the first nine months 2010 than the comparable period in 2009, as well as the incorporation of the Company's Los Angeles radio station KXOS-FM.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the first nine months 2010 were Ps. 500,539,000, an 18.6% increase compared to the Ps. 422,128,000 reported in the same period 2009. This increase was primarily due to (i) broadcasting expenses incurred in connection with the Los Angeles radio station KXOS-FM beginning in April 2009, resulting in a comparison between nine months for the 2010 period and five and a half months for the 2009 period, (ii) higher sales commissions due to the increase in broadcasting revenue, and (iii) expenses related to the Company's mass media advertising campaigns.

Broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) in the first nine months 2010 was Ps. 100,478,000, a 2.3% decrease compared to the Ps. 102,868,000 reported in the same period 2009.

Depreciation and amortization expenses in the first nine months 2010 were Ps. 18,117,000, a 7.4% decrease compared to the Ps. 19,558,000 reported in the same period 2009. This decrease was due to a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses in the first nine months 2010 were Ps. 10,365,000, the same amount reported in 2009.

As a result of the foregoing, the Company recorded operating income of Ps. 71,996,000 in the first nine months 2010, a 1.3% decrease compared to the Ps. 72,945,000 reported in the same period 2009.

Other expenses, net, in the first nine months 2010 were Ps. 36,390,000, a 20.5% decrease compared to the Ps. 45,800,000 reported in the same period 2009. This decrease was mainly attributable to legal expenses incurred in 2009 related to agreements for the Los Angeles radio station, as well as revenue from tax credits during the third quarter 2010.

The Company's comprehensive cost of financing in the first nine months 2010 was Ps. 18,101,000, compared to Ps. 26,643,000 in the same period 2009. This change was primarily due to a lower loss on net foreign currency exchange from Ps. 10,048,000 in the first nine months 2009 to a Ps. 164,000 loss on net foreign currency exchange in the first nine months 2010.

For the first nine months 2010, the Company recorded income before taxes of Ps. 17,505,000 compared to income before taxes of Ps. 502,000 in the same period 2009, mainly due to the aforementioned decrease in the Company's other expenses, net, and comprehensive cost of financing.

The Company recorded income taxes of Ps. 29,994,000 in the first nine months 2010, compared to Ps. 21,345,000 recorded in the same period 2009.

As a result of the foregoing, the Company recorded a net loss of Ps. 12,489,000 in the first nine months 2010, compared to a net loss of Ps. 20,843,000 in the first nine months 2009.

Company Description

Grupo Radio Centro owns and/or operates 15 radio stations. Of these 15 radio stations, 12 are located in Mexico City, two AM stations, in Guadalajara and Monterrey, and one FM station in Los Angeles. The Company's principal activities are the production and broadcasting of musical and entertainment programs, talk shows, news and special events programs. Revenue is primarily derived from the sale of commercial airtime. In addition to the Organizacion Radio Centro radio stations, the Company also operates Grupo RED radio stations and Organizacion Impulsora de Radio (OIR), a radio network that acts as the national sales representative for, and provides programming to, 108 Grupo Radio Centro-affiliated radio stations throughout Mexico.

Note on Forward Looking Statements

This release may contain projections or other forward-looking statements related to Grupo Radio Centro that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Grupo Radio Centro with the United States Securities and Exchange Commission, specifically the most recent filing on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to Grupo Radio Centro on the date hereof, and Grupo Radio Centro assumes no obligation to update such statements.


    RI Contacts
    In Mexico:                         In NY:
    Pedro Beltran / Alfredo Azpeitia   Maria Barona / Peter Majeski
    Grupo Radio Centro, S.A.B. de C.V. i-advize Corporate Communications, Inc.
    Tel: (5255) 5728-4800 Ext. 4910    Tel: (212) 406-3690

                         GRUPO RADIO CENTRO, S.A.B. DE C.V.
                        CONSOLIDATED UNAUDITED BALANCE SHEETS
                          as of September 30, 2010 and 2009
          (figures in thousands of  Mexican pesos ("Ps.") and U.S. dollars
                                   ("U.S. $") (1)
                                                    September 30,
                                                    -------------
                                                                       2010
                                                     U.S. $
                                                        (1)          Ps.
                                                     -------         ---
                         ASSETS
                         ------
    Current assets:
      Cash and temporary investments                   3,092         38,656
                                                       -----         ------

    Accounts receivable:
      Broadcasting, net                               18,837        235,483
      Other                                              856         10,695
                                                      19,693        246,178
                                                      ------        -------

    Prepaid expenses                                   5,227         65,337
                                                       -----         ------
      Total current assets                            28,012        350,171

    Property and equipment, net                       35,402        442,565
    Prepaid expenses                                       0              0
    Deferred charges, net                                442          5,526
    Excess of cost over book value of net assets of
     subsidiaries, net                                66,303        828,863
    Other assets                                         268          3,338
                                                         ---          -----
                      Total assets                   130,427      1,630,463
                                                     =======      =========

                      LIABILITIES
                      -----------
    Current:
      Notes payable                                    5,704         71,305
      Advances from customers                          4,593         57,413
      Suppliers and other accounts payable             5,238         65,478
      Taxes payable                                    2,360         29,501
         Total current liabilities                    17,895        223,697

    Long-Term:
      Notes payable                                    7,999        100,000
      Reserve for labor liabilities                    5,427         67,841
      Deferred taxes                                   1,563         19,545
                                                       -----         ------
                      Total liabilities               32,884        411,083
                                                      ------        -------

                  SHAREHOLDERS' EQUITY
                  --------------------
    Capital stock                                     90,425      1,130,410
    Cumulative earnings                                5,011         62,644
    Reserve for repurchase of shares                   3,507         43,837
    Accumulated effect by conversion                  (1,425)       (17,820)
    Minority interest                                     25            309
                                                         ---            ---
         Total shareholders'  equity                  97,543      1,219,380
                                                      ------      ---------
         Total liabilities and Shareholders' equity  130,427      1,630,463
                                                     =======      =========


                                                    September 30,
                                                    -------------
                                                                       2009
                                                                     Ps.
                                                                     ---
                         ASSETS
                         ------
    Current assets:
      Cash and temporary investments                                 70,988
                                                                     ------

    Accounts receivable:
      Broadcasting, net                                             222,642
      Other                                                          32,119
                                                                    254,761
                                                                    -------

    Prepaid expenses                                                113,688
                                                                    -------
      Total current assets                                          439,509

    Property and equipment, net                                     466,107
    Prepaid expenses                                                 51,208
    Deferred charges, net                                             3,717
    Excess of cost over book value of net assets of
     subsidiaries, net                                              828,863
    Other assets                                                      3,340
                                                                      -----
                      Total assets                                1,792,744
                                                                  =========

                      LIABILITIES
                      -----------
    Current:
      Notes payable                                                  31,950
      Advances from customers                                        82,567
      Suppliers and other accounts payable                           72,725
      Taxes payable                                                  31,242
         Total current liabilities                                  218,484

    Long-Term:
      Notes payable                                                 150,000
      Reserve for labor liabilities                                  64,614
      Deferred taxes                                                      0
                                                                        ---
                      Total liabilities                             433,098
                                                                    -------

                  SHAREHOLDERS' EQUITY
                  --------------------
    Capital stock                                                 1,130,410
    Cumulative earnings                                             173,095
    Reserve for repurchase of shares                                 43,837
    Accumulated effect by conversion                                 (1,393)
    Minority interest                                                13,697
                                                                     ------
         Total shareholders'  equity                              1,359,646
                                                                  ---------
         Total liabilities and Shareholders' equity               1,792,744
                                                                  =========



    (1)  Peso amounts have been translated into U.S. dollars, solely for
    the convenience of the reader, at the rate of Ps. 12.5011  per U.S.
    dollar, the rate on September 30, 2010.

                     GRUPO RADIO CENTRO, S.A.B. DE C.V.
                 CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
     for the three-month and nine-month periods ended September 30, 2010
                                  and 2009
      (figures in thousands of  Mexican pesos ("Ps.") and U.S. dollars
            ("U.S. $")(1), except per Share and per ADS amounts)
                                                       3rd Quarter
                                                       -----------
                                                          2010        2009
                                                U.S.$
                                                  (1)    Ps.        Ps.
                                               ------    ---        ---

    Broadcasting revenue (2)                   18,090  226,147     191,215
    Broadcasting expenses, excluding
     depreciation,
    amortization and corporate, general and
     administrative expenses                   13,800  172,511     158,817
                                               ------  -------     -------
    Broadcasting income                         4,290   53,636      32,398
                                                -----   ------      ------

    Depreciation and amortization                 466    5,828       6,404
    Corporate, general and administrative
     expenses                                     225    2,808       2,808
                                                  ---    -----       -----
    Operating income                            3,599   45,000      23,186
                                                -----   ------      ------

    Other expenses, net                          (794) (9,925)     (18,517)

    Comprehensive financing cost:
      Interest expense                           (418) (5,227)      (6,054)
      Interest income (2)                          (4)     (44)          0
      (Loss) on foreign currency exchange, net      1       10       5,193
                                                  ---      ---       -----
                                                 (421) (5,261)        (861)
                                                 ----   ------        ----

    Income (loss)  before income taxes          2,384   29,814       3,808

      Income taxes                              1,426   17,827      11,027
                                                -----   ------      ------
    Net income (loss)                             958   11,987      (7,219)

    Net income (loss)  applicable to:
      Majority interest                           958   11,987       9,619
      Minority interest                             0        0     (16,838)
                                                                   -------
                                                  958   11,987      (7,219)
                                                  ===   ======      ======

    Net income  per Series A Share (3)
    Net income  per ADS (3)
    Weighted average common shares outstanding
     (000's) (3)



                                               Accumulated 9 months
                                               --------------------
                                                           2010        2009
                                               U.S.$
                                                  (1)    Ps.         Ps.
                                               -----     ---         ---

    Broadcasting revenue (2)                   48,077   601,017     524,996
    Broadcasting expenses, excluding
     depreciation,
    amortization and corporate, general and
     administrative expenses                   40,040   500,539     422,128
                                               ------   -------     -------
    Broadcasting income                         8,037   100,478     102,868
                                                -----   -------     -------

    Depreciation and amortization               1,449    18,117      19,558
    Corporate, general and administrative
     expenses                                     829    10,365      10,365
                                                  ---    ------      ------
    Operating income                            5,759    71,996      72,945
                                                -----    ------      ------

    Other expenses, net                        (2,911)  (36,390)    (45,800)

    Comprehensive financing cost:
      Interest expense                         (1,475)  (18,439)    (16,790)
      Interest income (2)                          40       502         195
      (Loss) on foreign currency exchange, net    (13)     (164)    (10,048)
                                                  ---      ----     -------
                                               (1,448)  (18,101)    (26,643)
                                               ------   -------     -------

    Income (loss)  before income taxes          1,400    17,505         502

      Income taxes                              2,399    29,994      21,345
                                                -----    ------      ------
    Net income (loss)                            (999)  (12,489)    (20,843)

    Net income (loss)  applicable to:
      Majority interest                          (999)  (12,494)     15,277
      Minority interest                             0         5     (36,120)
                                                 (999)  (12,489)    (20,843)
                                                 ====   =======     =======

    Net income  per Series A Share (3)          0.015    0.1881      0.4483
    Net income  per ADS (3)                     0.135    1.6929      4.0347
    Weighted average common shares outstanding
     (000's) (3)                                        162,725     162,725




    (1)  Peso amounts have been translated into U.S. dollars, solely for
    the convenience of the reader, at the rate of Ps. 12.5011 per U.S.
    dollar, the rate on September 30, 2010.

    (2)  Broadcasting revenue for a particular period includes (as a
    reclassification of interest income) interest earned on funds
    received by the Company pursuant to advance sales of commercial air
    time to the extent that the underlying funds were earned by the
    Company during the period in question. Advances from advertisers are
    recognized as broadcasting revenue only when the corresponding
    commercial air  time has been transmitted. Interest earned and
    treated as broadcasting revenue for the third quarter of 2010 and
    2009 was Ps. 1,126,000 and Ps. 1,051,000, respectively. Interest
    earned and treated as broadcasting revenue for the nine months ended
    September 30, 2010 and 2009 was Ps. 3,468,000 and Ps. 3,620,000,
    respectively.

    (3) Earnings per share calculations are made for the last twelve
    months as of the date of the income statement, as required by the
    Mexican Stock Exchange.

SOURCE Grupo Radio Centro, S.A.B. de C.V.