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Grupo Radio Centro Reports First Quarter 2010 Results
Date:4/26/2010

MEXICO CITY, April 26 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B. de C.V. ( RC, BMV: RCENTRO-A) (the "Company"), one of Mexico's leading radio broadcasting companies, announced today its results of operations for the quarter ended March 31, 2010. All figures were prepared in accordance with the Mexican Financial Reporting Standards ("MFRS") issued by the Mexican Board for Research and Development of Financial Information Standards.

First Quarter Results

Broadcasting revenue in the first quarter of 2010 was Ps. 166,281,000, 6.7% higher than Ps. 155,791,000 in the first quarter of 2009. This increase was attributable to broadcasting revenue from our radio station KXOS-FM in Los Angeles, California, which we began operating in the second quarter of 2009.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the first quarter of 2010 totaled Ps. 160,783,000, a 43.4% increase compared to Ps. 112,150,000 in the first quarter of 2009. This increase was attributable to broadcasting expenses incurred in connection with KXOS-FM.

The Company's broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) in the first quarter of 2010 was Ps. 5,498,000, an 87.4% decrease compared to Ps. 43,641,000 in the first quarter of 2009. This decrease was attributable to the increase in broadcasting expenses as described above.

Depreciation and amortization expenses in the first quarter of 2010 were Ps. 6,144,000, a 6.1% decrease compared to Ps. 6,540,000 in the first quarter of 2009. This decrease was attributable to a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses in the first quarter of 2010 totaled Ps. 3,778,000, compared to Ps. 3,778,000 in the first quarter 2009.

For the first quarter of 2010 the Company reported an operating loss of Ps. 4,424,000, compared to an operating income of Ps. 33,323,000 in the first quarter of 2009, mainly due to the increase in broadcasting expenses as described above.

For the first quarter of 2010, other expenses, net, were of Ps. 13,455,000, an increase of 13.2% compared to Ps. 11,885,000 in the first quarter 2009. This increase was mainly due to fees paid to HSBC Mexico, S.A., as the common representative of the Company's CPO (ordinary participation certificates) holders.

The Company's comprehensive financing cost in the first quarter of 2010 increased to Ps. 7,360,000 from Ps. 1,072,000 in the first quarter of 2009. This increase was mainly attributable to the interest expense paid in the first quarter of 2010.

The Company reported a loss before income taxes in the first quarter of 2010 of Ps. 25,239,000, compared to income of Ps. 20,366,000 in the first quarter of 2009, primarily as a result of the increase in broadcasting expenses.

The Company recorded income taxes of Ps. 2,358,000 in the first quarter 2010, compared to Ps. 5,703,000 in the first quarter 2009 due to a decrease in taxable income.

As a result of the foregoing, the Company's net loss in the first quarter of 2010 was Ps. 27,597,000, compared to net income of Ps. 14,663,000 in the first quarter of 2009.

Recent Events

-- On March 18, 2010, the Company renegotiated the interest rate of the credit facility with Banco Inbursa, S.A. from a fixed annual rate of 13% to a fixed annual rate of 9.5%.

-- On March 16, 2010, in the Annual Stockholders Meeting, the shareholders approved, in accordance with the recommendation of the Company's Board of Directors, a dividend payment to all shareholders from retained earnings for fiscal year 2009 in the amount of Ps. 100,000,000, or approximately Ps. 0.6145 per each of the 162,724,561 Series A Shares outstanding. The dividend was paid in one disbursement on March 24, 2010.

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.



                        GRUPO RADIO CENTRO, S.A.B. DE C.V.
                       CONSOLIDATED UNAUDITED BALANCE SHEET
                          as of March 31, 2010 and 2009
        (figures in thousands of Mexican pesos ("Ps.") and U.S. dollars
                                   ("U.S. $")(1))
                                                         March 31
                                                     2010              2009
                                            U.S. $(1)      Ps.          Ps.
                 ASSETS
    Current assets:
      Cash and temporary investments          2,814       35,071      347,183

    Accounts receivable:
      Broadcasting, net                      16,157      201,376      194,848
      Other                                     678        8,446        8,008
      Prepaid taxes                               0            0        2,672
                                             16,835      209,822      205,528

    Prepaid expenses                          8,886      110,754       34,391
      Total current assets                   28,535      355,647      587,102

    Property and equipment, net              36,361      453,203      470,810
    Prepaid expenses                            292        3,636            0
    Deferred charges, net                       217        2,704        4,478
    Excess of cost over book value of net
     assets of subsidiaries, net             66,501      828,863      828,863
    Other assets                                269        3,353        3,325
              Total assets                  132,175    1,647,406    1,894,578

              LIABILITIES
    Current:
      Short-term debt                         3,257       40,591       30,433
      Advances from customers                 7,688       95,820       99,652
      Suppliers and other accounts
       payable                                6,577       81,976       72,850
      Taxes payable                           2,799       34,891        6,022
         Total current liabilities           20,321      253,278      208,957

    Long-Term:
      Long-term debt                          9,628      120,000      170,000
      Reserve for labor liabilities           5,401       67,312       61,862
      Deferred taxes                            174        2,166        6,309
              Total liabilities              35,524      442,756      447,128

          SHAREHOLDERS' EQUITY
    Capital stock                            90,694    1,130,410    1,130,410
    Cumulative earnings                       3,899       48,595      272,457
    Reserve for repurchase of shares          3,517       43,837       43,837
    Accumulated Effect by Conversion         (1,484)     (18,498)         -
    Majority shareholders' equity            96,626    1,204,344    1,446,704
    Minority interest                            25          306          746
      Total shareholders' equity             96,651    1,204,650    1,447,450
         Total liabilities and
          shareholders' equity              132,175    1,647,406    1,894,578

(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 12.464 per U.S. dollar, the rate on March 31, 2010.


                       GRUPO RADIO CENTRO, S.A.B. DE C.V.
                   CONSOLIDATED UNAUDITED STATEMENT OF INCOME
           for the three-month  periods ended March 31, 2010 and 2009
     (figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S.
                  $")(1), except per Share and per ADS amounts)
                                                         March 31
                                                    2010              2009
                                             U.S.$ (1)     Ps.         Ps.

    Broadcasting revenue (2)                  13,341     166,281     155,791
    Broadcasting expenses, excluding
     depreciation,
      amortization and corporate, general
       and administrative expenses            12,900     160,783     112,150
    Broadcasting income                          441       5,498      43,641

    Depreciation and amortization                493       6,144       6,540
    Corporate, general and administrative
     expenses                                    303       3,778       3,778
    Operating (loss) income                     (355)     (4,424)     33,323

    Other expenses, net                       (1,080)    (13,455)    (11,885)

    Comprehensive financing income (cost):
      Interest expense                          (611)     (7,620)     (1,893)
      Interest income (2)                          1           9          32
      Gain (loss) on foreign currency
       exchange, net                              20         251         789
                                                (590)     (7,360)     (1,072)

    (Loss) income before income taxes         (2,025)    (25,239)     20,366

    Income taxes                                 189       2,358       5,703
    Net (loss) income                         (2,214)    (27,597)     14,663

    Net (loss) income applicable to:
      Majority interest                       (2,214)    (27,600)     14,639
      Minority interest                            0           3          24
                                              (2,214)    (27,597)     14,663

    Net income (loss) per Series A Share (3)   0.008      0.0992      0.8637
    Net income (loss) per ADS (3)              0.072      0.8928      7.7733
    Weighted average common shares
     outstanding  (000's) (3)                            162,724     162,724

(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 12.464 per U.S. dollar, the rate on March 31, 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 airtime 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 airtime has been transmitted. Interest earned and treated as broadcasting revenue for the first quarter of 2010 and 2009 was Ps. 920,000 and Ps. 1,348,000, 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.


    IR Contacts
    In Mexico:
    Pedro Beltran / Alfredo Azpeitia
    Grupo Radio Centro, S.A.B. de C.V.
    Tel: (5255) 5728-4800 Ext. 7018
    aazpeitia@grc.com.mx

    In NY:
    Maria Barona / Peter Majeski
    i-advize Corporate Communications, Inc.
    Tel: (212) 406-3690
    grc@i-advize.com.mx


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