Quarterly Financial Information

(1)

Quarterly Financial Information

[105000] Management commentary

... 2

[110000] General information about financial statements

... 19

[210000] Statement of financial position, current/non-current

... 21

[310000] Statement of comprehensive income, profit or loss, by function of expense

... 23

[410000] Statement of comprehensive income, OCI components presented net of tax

... 24

[520000] Statement of cash flows, indirect method

... 26

[610000] Statement of changes in equity - Accumulated Current

... 28

[610000] Statement of changes in equity - Accumulated Previous

... 31

[700000] Informative data about the Statement of financial position

... 34

[700002] Informative data about the Income statement

... 35

[700003] Informative data - Income statement for 12 months

... 36

[800001] Breakdown of credits

... 37

[800003] Annex - Monetary foreign currency position

... 39

[800005] Annex - Distribution of income by product

... 40

[800007] Annex - Financial derivate instruments

... 41

[800100] Notes - Subclassifications of assets, liabilities and equities

... 42

[800200] Notes - Analysis of income and expense

... 46

[800500] Notes - List of notes

... 47

[800600] Notes - List of accounting policies

... 68

(2)

[105000] Management commentary

Management commentary [text block]

TV AZTECA ANNOUNCES NET SALES OF Ps.3,292 MILLION

AND EBITDA OF Ps.446 MILLION IN 1Q17

—Within the framework of the solid reinvention of TV Azteca, with agile and top-quality content, advertising

sales in Mexico grew 5%—

—The company expects to receive US$156 million in 2017

from US stations auctions—

Mexico City, May 2, 2017—TV Azteca, S.A.B. de C.V. (BMV: AZTECACPO; Latibex: XTZA),

one of the two largest producers of Spanish-language television programming in the world,

announced today financial results for the first quarter of 2017.

Consolidated first quarter results

"TV Azteca continued to drive its strong reinvention through a clear strategy of top-quality

content programming to further strengthen its strong market position in Mexico," said Benjamín

Salinas, CEO of TV Azteca. "In addition, during the quarter, we launched two additional channels,

adn40 and a+, which will effectively compete for the domestic audience and provide a world-class

alternative for national and local advertisers."

"In addition to strong business prospects in Mexico, which will further strengthen the

company's results, it is expected to receive US$156 million this year, as a result of the participation

of Azteca America-related stations in the US spectrum auctions," said Esteban Galíndez, CFO of TV

Azteca. "Azteca America has commercial and programming relationships at the Los Angeles and

(3)

San Francisco stations, which allow it to receive such revenues, as a result from the sale of radio

spectrum from auctions held by the US Federal Communications Commission."

Disclosure of nature of business [text block]

TV Azteca, S.A.B. de C.V. fue adquirida en julio de 1993 por sus accionistas actuales. Lasactividadesprincipalesde la Compañía y sus subsidiarias incluyen: (i) la transmisión y producción de programas de televisión, (ii) la venta de tiempo de publicidad y (iii) la explotación de una red de fibra óptica en Colombia (hasta diciembre de 2016) y en Perú.

Cuando en estas notas a los estados financieros consolidados se utilizan los términos “la Compañía” o “la Controladora”, ellos se refieren exclusivamente a TV Azteca, S.A.B. de C.V. Cuando se utilizan los términos “la Compañía y subsidiarias” o “el Grupo”, ellos se refieren a TV Azteca, S.A.B. de C.V. y sus Compañías subsidiarias consolidadas.

Las acciones ordinarias de la Compañía (AZTECA.CPO) cotizan en la Bolsa Mexicana de Valores (BMV) y en Latibex, mercado internacional dedicado a las acciones latinoamericanas en Euros, regulado por las leyes vigentes del Mercado de Valores Español. La Compañía es la sociedad tenedora y controladora en última instancia del Grupo. La Compañía es una Sociedad Anónima Bursátil de Capital Variable (S.A.B. de C.V.), con una duración de 99 años a partir de 1993. Sus oficinas principales están ubicadas en Periférico Sur 4121, Colonia Fuentes del Pedregal, C.P. 14141, Ciudad de México.

Disclosure of management's objectives and its strategies for meeting those

objectives [text block]

TV Azteca es uno de los dos productores más importantes de programación en idioma español en el mundo. TV Azteca considera que su capacidad para proporcionar una mezcla diversa de programación de calidad ha sido, y seguirá siendo, uno de los principales factores para mantener y aumentar la popularidad de su programación. TV Azteca se centra en producir y adquirir

(4)

programación que atraiga a sus diferentes audiencias objetivo. TV Azteca también considera que el desarrollo de identidades separadas para sus canales le ha ayudado a captar una parte importante de la audiencia televisiva mexicana y ha ofrecido a sus anunciantes la oportunidad de ajustar sus anuncios a grupos demográficos específicos.

Con el fin de mantener la alta calidad de su programación, TV Azteca reúne grupos de enfoque y realiza encuestas para evaluar la popularidad esperada de nuevas ideas de programación. TV Azteca utiliza también parte de su tiempo de publicidad no vendido para promocionar de manera agresiva tanto su programación producida internamente como su programación comprada con el fin de crear y mantener el interés de los televidentes.

La compañía construyó con éxito y opera la red de fibra óptica más grande de América Latina, en Colombia. TV Azteca brinda servicios de telecomunicaciones de clase mundial, que impulsan de manera efectiva el bienestar de la población y la productividad en los negocios.

Disclosure of entity's most significant resources, risks and relationships [text block]

Factores de Riesgo

A continuación se establecen ciertos riesgos asociados con TV Azteca e inversiones en los valores de TV Azteca. Los riesgos e incertidumbre, descritos a continuación no son los únicos que enfrenta la compañía y representan algunos de los riesgos que la administración de TV Azteca considera como relevantes. Algunos de los riesgos de invertir en los valores de TV Azteca son riesgos generales asociados con la realización de operaciones en México, mientras que otros riesgos son relacionados con las operaciones de la compañía. La explicación que se encuentra más adelante, respecto a los riesgos generales asociados con la realización de operaciones en México, contiene información acerca del Gobierno Mexicano y la economía mexicana obtenida de publicaciones oficiales del Gobierno Mexicano. TV Azteca no ha verificado esta información. Cualquiera de los siguientes riesgos, si tienen lugar, podrían afectar de manera importante y adversa las operaciones, situación financiera o resultados de operación de TV Azteca. Si ello sucediera, el precio de operación de los valores de TV Azteca podría disminuir y los inversionistas de TV Azteca podrían perder toda o parte de su inversión.

Riesgos Relacionados con las Operaciones de TV Azteca

-TV Azteca se encuentra endeudada y las obligaciones por su endeudamiento y pago de su deuda podrían afectar

adversamente sus operaciones.

-La temporalidad de las operaciones de la compañía afecta los ingresos de ésta y en caso de que los ingresos del cuarto

trimestre sean bajos, podrían tener un impacto negativo en los resultados de operación de TV Azteca.

-Si la compañía pierde uno o más de sus anunciantes clave, puede perder una cantidad importante de sus ingresos. -Los costos de la compañía para producir y adquirir programación pueden incrementarse.

(5)

-La compañía puede carecer de la capacidad suficiente para pagar deudas exigibles por cambio de control.

Riesgos Relacionados con la Realización de Operaciones en México

-Si el Peso se devalúa aún más en el futuro respecto al Dólar, será más difícil para TV Azteca pagar su deuda y otras

obligaciones.

-Las fluctuaciones en las tasas de interés y la inflación pueden afectar adversamente las operaciones de TV Azteca. -La situación política en México puede afectar de manera negativa los resultados de operación de TV Azteca.

Riesgos Relacionados con la Industria de los Medios de Comunicación en México

-Un aumento en la popularidad de medios de comunicación alternos a la Televisión Abierta puede afectar adversamente

las operaciones de TV Azteca.

-Las fusiones en diversos sectores económicos pueden dar como resultado un mercado publicitario más concentrado. -Los costos de producción de contenido pueden aumentar cuando el talento artístico emigra a los Estados Unidos.

Riesgos Relacionados con Litigios

-De manera periódica, los litigios que involucran a TV Azteca han dado como resultado, y en el futuro pueden dar como

resultado, el gasto de recursos financieros importantes y atención de la administración a la resolución de dichas controversias.

Disclosure of results of operations and prospects [text block]

(6)

TV AZTECA ANNOUNCES NET SALES OF Ps.3,292 MILLION

AND EBITDA OF Ps.446 MILLION IN 1Q17

—Within the framework of the solid reinvention of TV Azteca, with agile and top-quality content, advertising

sales in Mexico grew 5%—

—The company expects to receive US$156 million in 2017

from US stations auctions—

Mexico City, May 2, 2017—TV Azteca, S.A.B. de C.V. (BMV: AZTECACPO; Latibex: XTZA),

one of the two largest producers of Spanish-language television programming in the world,

announced today financial results for the first quarter of 2017.

Consolidated first quarter results

"TV Azteca continued to drive its strong reinvention through a clear strategy of top-quality

content programming to further strengthen its strong market position in Mexico," said Benjamín

Salinas, CEO of TV Azteca. "In addition, during the quarter, we launched two additional channels,

adn40 and a+, which will effectively compete for the domestic audience and provide a world-class

alternative for national and local advertisers."

"In addition to strong business prospects in Mexico, which will further strengthen the

company's results, it is expected to receive US$156 million this year, as a result of the participation

of Azteca America-related stations in the US spectrum auctions," said Esteban Galíndez, CFO of TV

Azteca. "Azteca America has commercial and programming relationships at the Los Angeles and

San Francisco stations, which allow it to receive such revenues, as a result from the sale of radio

spectrum from auctions held by the US Federal Communications Commission."

(7)

Net sales for the quarter were Ps.3,292 million, 21% higher than the Ps.2,717 million for the

same quarter of last year. Total costs and expenses were Ps.2,846 million, compared to Ps.2,185

million for the same period last year.

As a result, TV Azteca reported EBITDA of Ps.446 million, 16% less than Ps.533 million from

last year; EBITDA margin for the quarter was 14%. Operating profit was of Ps.159 million, in

comparison with Ps.273 million of previous year.

The company registered a net result of Ps.404 million, compared to a net loss of Ps.554

million for the same quarter of 2016.

1Q 2016

1Q 2017

Change

Ps.

%

Net sales

$2,717

$3,292

$574

21%

EBITDA

Operatingprofit

$533

$273

$446

$159

$(87)

$(133)

-16%

-42%

Net result

$(554)

$404

$958

----

Net result per CPO

$(0.19)

$0.14

$0.33

----

Figures in millions of pesos.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

The number of CPOs outstanding as of March 31, 2016 was 2,991 million and as of March 31, 2017 was 2,982 million.

Results by business segment

(8)

Domestic advertising sales grew 5% to Ps.2,175 million, from Ps.2,067 million a year ago,

due to the generation of programming grids that effectively reached the target market for numerous

advertisers in Mexico.

Production, programming and transmission costs in Mexico were Ps.1,372 million, similar to

the Ps.1,369 million a year ago. Domestic costs grew less than revenue, as a result of strategies

that drive efficiency in content production.

Contribution generated by operations of the media business in Mexico was Ps.803 million,

15% higher than the Ps.698 million of the previous year.

Azteca America

In addition, the company registered sales from Azteca America

̶

the company’s

wholly-owned broadcast television network focused on the U.S. Hispanic market

̶

of Ps.337 million this

quarter, 3% higher in comparison to the Ps.328 million a year ago, in the framework of increasingly

successful programming.

Azteca America's costs were Ps.408 million compared to Ps.347 million a year ago. The

increase is largely due to higher costs related to strengthening the geographic coverage, in order to

boost the company's dynamism and profitability in the future.

The contribution of Azteca America was a negative Ps.70 million, in comparison to a negative

figure of Ps.19 million a year ago.

TV Azteca Guatemala and Honduras

Revenue from TV Azteca Guatemala and TV Azteca Honduras was Ps.14 million, in contrast

to Ps.12 million the previous year. The costs of TV Azteca Guatemala and TV Azteca Honduras

were Ps.30 million, compared to Ps.28 million for the previous year. Contribution was a negative

Ps.16 million, constant compared to the previous year.

Exports

Content sales to other countries were Ps.24 million in the period, from Ps.29 million in the

previous year; revenue for the quarter resulted from the commercialization of the shows La Mujer de

Judas in Africa and Latin America, La Teniente in South America, and Vivir a Destiempoin Europe,

(9)

Exported content does not have associated costs, thus exports revenue is equal to its

contribution.

Azteca ComunicacionesPerú

Azteca ComunicacionesPerú had revenue of Ps.186 million, from Ps.281 million a year ago.

The decrease results from lower reimbursements by the Peruvian government for the construction

and maintenance of the National Dorsal Fiber Optic Network of that country in this period; such

construction was completed in 2016 and in this quarter we received the remaining reimbursement,

relatively smaller compared to the previous year.

The Company registered costs of Ps.151 million in the quarter, compared to Ps.120 million a

year ago. The increase reflects, to a large extent, the cost of maintaining the network, which was not

present the previous year when the network was under construction.

The contribution of Azteca ComunicacionesPerú was Ps.35 million, compared to.161 million

a year ago.

WGC Mexico Championship

During the quarter, TV Azteca organized the golf tournament WGC Mexico Championship,

one of the most important sporting events in the world, creating synergies relevant to the company.

The income generated from this tournament was of Ps.556 million.

The costs related to the golf tournament WGC Mexico Championship were Ps.555 million this

period.

Consolidated SG&A expenses

The company's total selling and administrative expenses were Ps.330 million, up 3%

compared to Ps.320 million a year earlier, as a result of higher service and fee expenses this

quarter.

Consolidated EBITDA and net result

(10)

EBITDA of the company was Ps.446 million, in comparison to Ps.533 million for the same

period of the prior year. Operating profit was Ps.159 million, from Ps.273 million a year ago.

The most significant variations below EBITDA were the following:

A loss of Ps.52 million in equity resulted from affiliates in comparison to an income of Ps.4

million a year ago, derived from the recognition of this period of the 40% stake of TV Azteca in the

results of Azteca Comunicaciones Colombia. As of the first quarter of 2017, TV Azteca no longer

consolidates the results of Azteca Comunicaciones Colombia in its financial statements, which

means that only its 40% share in the results of the telecommunications company is recognized in

the line of Equity in income from affiliates. As previously announced, last year TV Azteca´s

shareholders agreed to contribute US$60 million to be invested in Azteca Comunicaciones

Colombia, while TV Azteca, which had invested US$40 million recently, remains with 40% of the

company's equity.

An increase of Ps.36 million in interest payments due to the effect of exchange rate

depreciation on the peso equivalent of the company's debt, which is denominated in US dollars,

partially offset by lower dollar debt at the end of this quarter, due to the cancellation of US$42.5

million in the period.

Growth of Ps.920 million in foreign exchange gains, as a consequence of a stronger

appreciation of the peso versus the dollar this quarter, compared to the same period of the previous

year.

Decrease of Ps.46 million in tax provision as a result of lower tax charge associated with

Azteca ComunicacionesPerú this quarter.

Reduction of Ps.177 million in discontinued operations, as a result of the recognition of the

loss generated by the operations of Azteca Comunicaciones Colombia a year ago. This is a

consequence of the company ceasing to consolidate its results in the financial statements of TV

Azteca, and for periods prior to the current quarter, its net result are only recorded in the line of

discontinued operations.

TV Azteca registered net income of Ps.404 million for the quarter, compared to a net loss of

Ps.554 million for the same period a year ago.

Debt

As of March 31, 2017, TV Azteca’s outstanding debt

_̶

excluding Ps.1,725 million debt due in

2069

_̶

was Ps.14,119 million.

(11)

The cash and cash equivalents balance at the end of the quarter totaled Ps.3,009 million,

25% higher than the Ps.2,414 million a year ago. As a result, net debt of the company as of March

31, 2017, excluding debt due in 2069, was Ps.11,110 million.

As previously announced, during the quarter the company canceled out US$42.5 million of its

US$300 million senior notes with coupon of 7.5% due in 2018. Such cancellation was carried out

through repurchase operations that the company previously performed with cash generated by the

operation of the business.

The transaction reflects the solid financial performance in TV Azteca, and the firm

commitment of the company to reduce the full amount of dollar-denominated debt to strengthen its

capital structure.

Stations Auction in the United States

In order to free up radio spectrum that can be used to offer mobile broadband in the United

States — due to the growing demand from users for data usage over wireless devices — the US

Federal Communications Commission designed an auction where television broadcasting

concessionaires could sell their spectrum to be used by telecommunications companies.

Stations related with Azteca America in Los Angeles and San Francisco were winners in the

auction, so Azteca America, which has commercial and programming relationships at these

stations, expects to receive US$156 million this year, by means from the sale of the spectrum.

Azteca America will look for options to continue broadcasting its programming in these

locations where the stations that sold spectrum are located.

Fiber-optic network in Peru

As previously announced, Azteca ComunicacionesPerú — a subsidiary of TV Azteca —

completed the deployment of 13,500 kilometers of the Red Dorsal Nacional de FibraÓptica of the

country, which will offer telecommunications services in approximately 80% of Peruvian territory.

(12)

The government provided the funds for the construction and provides resources for the operation

through a 20 year concession, and TV Azteca will commercialize the telecommunications services

in 339 population centers.

TV Azteca’s administration is in the process of updating the valuation and perspectives of its

investments in telecommunications in Peru, as previously requested by the Board, in order to

determine its consistency with the strategic definition of the company. Based on this analysis TV

Azteca will formulate a plan of action regarding these investments.

Company Profile

TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating three national television networks in Mexico, Azteca Trece, Azteca 7 and Proyecto 40, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America, a broadcast television network focused on the rapidly growing U.S. Hispanic market, and Azteca Web, an Internet company for North American Spanish speakers.

TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, contributing to build the middle class of the countries in which they operate and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. Thecompaniesinclude TV Azteca (www.tvazteca.com; www.irtvazteca.com), Azteca America (us.azteca.com), Grupo Elektra (www.elektra.com.mx: www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Advance America (www.advanceamerica.net), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx), Totalplay (www.totalplay.com.mx) and Enlace TP (enlacetp.mx). Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, the member companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.

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. Other risks that may affect TV Azteca and its subsidiaries are identified in documents sent to securities authorities.

Investor Relations:

Bruno Rangel

Grupo Salinas

Tel. +52 (55) 1720-9167

[email protected]

Rolando Villarreal

TV Azteca, S.A.B. de C.V.

Tel. +52 (55) 1720-9167

[email protected]

PressRelations

Luciano Pascoe

Grupo Salinas

Tel. +52 (55) 1720-1313 ext. 36553

Daniel McCosh

Grupo Salinas

Tel. +52 (55) 1720-0059

(13)

[email protected]

Financial position, liquidity and capital resources [text block]

As of March 31, 2017, TV Azteca’s outstanding debt

̶

excluding Ps.1,725 million debt due in

2069

_̶

was Ps.14,119 million.

The cash and cash equivalents balance at the end of the quarter totaled Ps.3,009 million,

25% higher than the Ps.2,414 million a year ago. As a result, net debt of the company as of March

31, 2017, excluding debt due in 2069, was Ps.11,110 million.

As previously announced, during the quarter the company canceled out US$42.5 million of its

US$300 million senior notes with coupon of 7.5% due in 2018. Such cancellation was carried out

through repurchase operations that the company previously performed with cash generated by the

operation of the business.

The transaction reflects the solid financial performance in TV Azteca, and the firm commitment of

the company to reduce the full amount of dollar-denominated debt to strengthen its capital structure.

(14)

Disclosure of critical performance measures and indicators that management uses to

evaluate entity's performance against stated objectives [text block]

Net sales for the quarter were Ps.3,292 million, 21% higher than the Ps.2,717 million for the

same quarter of last year. Total costs and expenses were Ps.2,846 million, compared to Ps.2,185

million for the same period last year.

As a result, TV Azteca reported EBITDA of Ps.446 million, 16% less than Ps.533 million from

last year; EBITDA margin for the quarter was 14%. Operating profit was of Ps.159 million, in

comparison with Ps.273 million of previous year.

The company registered a net result of Ps.404 million, compared to a net loss of Ps.554

million for the same quarter of 2016.

1Q 2016

1Q 2017

Change

Ps.

%

Net sales

$2,717

$3,292

$574

21%

EBITDA

Operatingprofit

$533

$273

$446

$159

$(87)

$(133)

-16%

-42%

Net result

$(554)

$404

$958

----

(15)

Figures in millions of pesos.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

The number of CPOs outstanding as of March 31, 2016 was 2,991 million and as of March 31, 2017 was 2,982 million.

Results by business segment

Domestic operations

Domestic advertising sales grew 5% to Ps.2,175 million, from Ps.2,067 million a year ago,

due to the generation of programming grids that effectively reached the target market for numerous

advertisers in Mexico.

Production, programming and transmission costs in Mexico were Ps.1,372 million, similar to

the Ps.1,369 million a year ago. Domestic costs grew less than revenue, as a result of strategies

that drive efficiency in content production.

Contribution generated by operations of the media business in Mexico was Ps.803 million,

15% higher than the Ps.698 million of the previous year.

Azteca America

In addition, the company registered sales from Azteca America

_̶

the company’s

wholly-owned broadcast television network focused on the U.S. Hispanic market

_̶

of Ps.337 million this

quarter, 3% higher in comparison to the Ps.328 million a year ago, in the framework of increasingly

successful programming.

Azteca America's costs were Ps.408 million compared to Ps.347 million a year ago. The

increase is largely due to higher costs related to strengthening the geographic coverage, in order to

boost the company's dynamism and profitability in the future.

The contribution of Azteca America was a negative Ps.70 million, in comparison to a negative

figure of Ps.19 million a year ago.

(16)

Revenue from TV Azteca Guatemala and TV Azteca Honduras was Ps.14 million, in contrast

to Ps.12 million the previous year. The costs of TV Azteca Guatemala and TV Azteca Honduras

were Ps.30 million, compared to Ps.28 million for the previous year. Contribution was a negative

Ps.16 million, constant compared to the previous year.

Exports

Content sales to other countries were Ps.24 million in the period, from Ps.29 million in the

previous year; revenue for the quarter resulted from the commercialization of the shows La Mujer de

Judas in Africa and Latin America, La Teniente in South America, and Vivir a Destiempoin Europe,

as well as the sale of TV Azteca content to pay TV channels in the rest of the world.

Exported content does not have associated costs, thus exports revenue is equal to its

contribution.

Azteca ComunicacionesPerú

Azteca ComunicacionesPerú had revenue of Ps.186 million, from Ps.281 million a year ago.

The decrease results from lower reimbursements by the Peruvian government for the construction

and maintenance of the National Dorsal Fiber Optic Network of that country in this period; such

construction was completed in 2016 and in this quarter we received the remaining reimbursement,

relatively smaller compared to the previous year.

The Company registered costs of Ps.151 million in the quarter, compared to Ps.120 million a

year ago. The increase reflects, to a large extent, the cost of maintaining the network, which was not

present the previous year when the network was under construction.

The contribution of Azteca ComunicacionesPerú was Ps.35 million, compared to.161 million

a year ago.

WGC Mexico Championship

During the quarter, TV Azteca organized the golf tournament WGC Mexico Championship,

one of the most important sporting events in the world, creating synergies relevant to the company.

The income generated from this tournament was of Ps.556 million.

The costs related to the golf tournament WGC Mexico Championship were Ps.555 million this

period.

(17)

Consolidated SG&A expenses

The company's total selling and administrative expenses were Ps.330 million, up 3%

compared to Ps.320 million a year earlier, as a result of higher service and fee expenses this

quarter.

Consolidated EBITDA and net result

EBITDA of the company was Ps.446 million, in comparison to Ps.533 million for the same

period of the prior year. Operating profit was Ps.159 million, from Ps.273 million a year ago.

The most significant variations below EBITDA were the following:

A loss of Ps.52 million in equity resulted from affiliates in comparison to an income of Ps.4

million a year ago, derived from the recognition of this period of the 40% stake of TV Azteca in the

results of Azteca Comunicaciones Colombia. As of the first quarter of 2017, TV Azteca no longer

consolidates the results of Azteca Comunicaciones Colombia in its financial statements, which

means that only its 40% share in the results of the telecommunications company is recognized in

the line of Equity in income from affiliates. As previously announced, last year TV Azteca´s

shareholders agreed to contribute US$60 million to be invested in Azteca Comunicaciones

Colombia, while TV Azteca, which had invested US$40 million recently, remains with 40% of the

company's equity.

An increase of Ps.36 million in interest payments due to the effect of exchange rate

depreciation on the peso equivalent of the company's debt, which is denominated in US dollars,

partially offset by lower dollar debt at the end of this quarter, due to the cancellation of US$42.5

million in the period.

Growth of Ps.920 million in foreign exchange gains, as a consequence of a stronger

appreciation of the peso versus the dollar this quarter, compared to the same period of the previous

year.

Decrease of Ps.46 million in tax provision as a result of lower tax charge associated with

Azteca ComunicacionesPerú this quarter.

Reduction of Ps.177 million in discontinued operations, as a result of the recognition of the

loss generated by the operations of Azteca Comunicaciones Colombia a year ago. This is a

consequence of the company ceasing to consolidate its results in the financial statements of TV

(18)

Azteca, and for periods prior to the current quarter, its net result are only recorded in the line of

discontinued operations.

TV Azteca registered net income of Ps.404 million for the quarter, compared to a net loss of Ps.554 million

for the same period a year ago.

(19)

[110000] General information about financial statements

Ticker: AZTECA

Period covered by financial statements: 2017-01-01 AL 2017-03-31

Date of end of reporting period: 2017-03-31

Name of reporting entity or other means of identification:

TV AZTECA S.A.B. DE C.V.

Description of presentation currency: MXN

Level of rounding used in financial statements: MILES DE PESOS

Consolidated: Yes

Number of quarter: 1

Type of issuer: ICS

Explanation of change in name of reporting entity or other means of identification from end of preceding reporting period:

Description of nature of financial statements:

Disclosure of general information about financial statements [text block]

Follow-up of analysis [text block]

TV Azteca, S.A.B. de C.V., informa que de acuerdo a lo establecido por el reglamento interior de la BM en el artículo 4.033.01 fracción. VIII en materia de requisitos de mantenimiento, las casas de bolsa /institución de crédito que dan cobertura de análisis a nuestros valores son Bank of America, Merrill Lynch, Grupo Bursátil Mexicano, S.A. de C.V. "GBM", Actinver Casa de Bolsa, Banorte Ixe, Vector Casa de Bolsa, Monex Grupo Financiero y SignumResearch debido a los requisitos del sistema de información de la bolsa mexicana de valores para la revelación de la cobertura de análisis mencionada anteriormente.

(20)

(21)

[210000] Statement of financial position, current/non-current

Concept Close Current

Quarter 2017-03-31

Close Previous Exercise 2016-12-31 Statement of financial position [abstract]

Assets [abstract] Current assets [abstract]

Cash and cash equivalents 3,008,554,000 4,470,314,000 Trade and other current receivables 10,388,628,000 7,903,589,000

Current tax assets, current 0 0

Other current financial assets 761,349,000 1,005,345,000

Current inventories 2,293,051,000 2,412,895,000

Current biological assets 0 0

Other current non-financial assets 0 0

Total current assets other than non-current assets or disposal groups classified as held for sale or as held for distribution to owners

16,451,582,000 15,792,143,000 Non-current assets or disposal groups classified as held for sale or as held for distribution to owners 0 0 Total current assets 16,451,582,000 15,792,143,000

Non-current assets [abstract]

Trade and other non-current receivables 0 0

Current tax assets, non-current 0 0

Non-current inventories 0 0

Non-current biological assets 0 0

Other non-current financial assets 0 0

Investments accounted for using equity method 0 0 Investments in subsidiaries, joint ventures and associates 338,500,000 332,180,000 Property, plant and equipment 4,007,001,000 4,111,107,000

Investment property 0 0

Goodwill 15,922,000 15,922,000

Intangible assets other than goodwill 10,512,326,000 10,974,045,000

Deferred tax assets 1,825,118,000 1,825,118,000

Other non-current non-financial assets 4,613,354,000 4,513,618,000 Total non-current assets 21,312,221,000 21,771,990,000

Total assets 37,763,803,000 37,564,133,000

Equity and liabilities [abstract] Liabilities [abstract]

Current liabilities [abstract]

Trade and other current payables 9,941,976,000 8,057,451,000 Current tax liabilities, current 798,147,000 379,731,000

Other current financial liabilities 0 0

Other current non-financial liabilities 3,493,642,000 3,336,093,000

Current provisions [abstract]

Current provisions for employee benefits 0 0

Other current provisions 0 0

Total current provisions 0 0

Total current liabilities other than liabilities included in disposal groups classified as held for sale 14,233,765,000 11,773,275,000 Liabilities included in disposal groups classified as held for sale 0 0 Total current liabilities 14,233,765,000 11,773,275,000

Non-current liabilities [abstract]

Trade and other non-current payables 1,132,582,000 1,075,505,000

Current tax liabilities, non-current 0 0

(22)

Concept Close Current Quarter 2017-03-31 Close Previous Exercise 2016-12-31

Other non-current non-financial liabilities 0 0

Non-current provisions [abstract]

Non-current provisions for employee benefits 188,035,000 188,035,000

Other non-current provisions 0 0

Total non-current provisions 188,035,000 188,035,000 Deferred tax liabilities 518,752,000 601,622,000 Total non-current liabilities 17,685,145,000 20,126,487,000

Total liabilities 31,918,910,000 31,899,762,000 Equity [abstract] Issued capital 715,616,000 715,229,000 Share premium 207,419,000 207,419,000 Treasury shares 0 0 Retained earnings 5,315,798,000 4,919,130,000 Other reserves (412,260,000) (201,976,000)

Total equity attributable to owners of parent 5,826,573,000 5,639,802,000

Non-controlling interests 18,320,000 24,569,000

Total equity 5,844,893,000 5,664,371,000

(23)

[310000] Statement of comprehensive income, profit or loss, by function of

expense

Concept Accumulated Current Year 01-01 - 2017-03-31 Accumulated Previous Year 01-01 - 2016-03-31 Profit or loss [abstract]

Profit (loss) [abstract]

Revenue 3,291,514,000 2,717,250,000 Cost of sales 2,696,999,000 2,012,044,000 Gross profit 594,515,000 705,206,000 Distribution costs 0 0 Administrative expenses 353,384,000 345,822,000 Other income 0 0 Other expense 81,830,000 86,675,000

Profit (loss) from operating activities 159,301,000 272,709,000

Finance income 962,545,000 35,288,000

Finance costs 384,680,000 361,275,000

Share of profit (loss) of associates and joint ventures accounted for using equity method (51,986,000) 3,812,000 Profit (loss) before tax 685,180,000 (49,466,000)

Tax income (expense) 287,222,000 333,338,000

Profit (loss) from continuing operations 397,958,000 (382,804,000) Profit (loss) from discontinued operations 0 (177,302,000)

Profit (loss) 397,958,000 (560,106,000)

Profit (loss), attributable to [abstract]

Profit (loss), attributable to owners of parent 404,207,000 (553,516,000) Profit (loss), attributable to non-controlling interests (6,249,000) (6,590,000) Earnings per share [text block] -0.35 -0.30

Earnings per share [abstract] Earnings per share [line items] Basic earnings per share [abstract]

Basic earnings (loss) per share from continuing operations (0.35) (0.3) Basic earnings (loss) per share from discontinued operations 0 0 Total basic earnings (loss) per share (0.35) (0.3)

Diluted earnings per share [abstract]

Diluted earnings (loss) per share from continuing operations (0.29) (0.2) Diluted earnings (loss) per share from discontinued operations 0 0 Total diluted earnings (loss) per share (0.29) (0.2)

(24)

[410000] Statement of comprehensive income, OCI components presented net

of tax

Concept Accumulated Current Year 2017-01-01 - 2017-03-31 Accumulated Previous Year 2016-01-01 - 2016-03-31 Statement of comprehensive income [abstract]

Profit (loss) 397,958,000 (560,106,000)

Other comprehensive income [abstract]

Components of other comprehensive income that will not be reclassified to profit or loss, net of tax [abstract]

Other comprehensive income, net of tax, gains (losses) from investments in equity instruments 0 0 Other comprehensive income, net of tax, gains (losses) on revaluation 0 0 Other comprehensive income, net of tax, gains (losses) on remeasurements of defined benefit plans 0 0 Other comprehensive income, net of tax, change in fair value of financial liability attributable to change in credit risk of liability 0 0 Other comprehensive income, net of tax, gains (losses) on hedging instruments that hedge investments in equity instruments 0 0 Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified

to profit or loss, net of tax

0 0

Total other comprehensive income that will not be reclassified to profit or loss, net of tax 0 0

Components of other comprehensive income that will be reclassified to profit or loss, net of tax [abstract] Exchange differences on translation [abstract]

Gains (losses) on exchange differences on translation, net of tax (479,303,000) (129,919,000) Reclassification adjustments on exchange differences on translation, net of tax 0 0 Other comprehensive income, net of tax, exchange differences on translation (479,303,000) (129,919,000)

Available-for-sale financial assets [abstract]

Gains (losses) on remeasuring available-for-sale financial assets, net of tax 269,019,000 (240,694,000) Reclassification adjustments on available-for-sale financial assets, net of tax 0 0 Other comprehensive income, net of tax, available-for-sale financial assets 269,019,000 (240,694,000)

Cash flow hedges [abstract]

Gains (losses) on cash flow hedges, net of tax 0 0 Reclassification adjustments on cash flow hedges, net of tax 0 0 Amounts removed from equity and included in carrying amount of non-financial asset (liability) whose acquisition or incurrence was

hedged highly probable forecast transaction, net of tax

0 0

Other comprehensive income, net of tax, cash flow hedges 0 0

Hedges of net investment in foreign operations [abstract]

Gains (losses) on hedges of net investments in foreign operations, net of tax 0 0 Reclassification adjustments on hedges of net investments in foreign operations, net of tax 0 0 Other comprehensive income, net of tax, hedges of net investments in foreign operations 0 0

Change in value of time value of options [abstract]

Gains (losses) on change in value of time value of options, net of tax 0 0 Reclassification adjustments on change in value of time value of options, net of tax 0 0 Other comprehensive income, net of tax, change in value of time value of options 0 0

Change in value of forward elements of forward contracts [abstract]

Gains (losses) on change in value of forward elements of forward contracts, net of tax 0 0 Reclassification adjustments on change in value of forward elements of forward contracts, net of tax 0 0 Other comprehensive income, net of tax, change in value of forward elements of forward contracts 0 0

Change in value of foreign currency basis spreads [abstract]

Gains (losses) on change in value of foreign currency basis spreads, net of tax 0 0 Reclassification adjustments on change in value of foreign currency basis spreads, net of tax 0 0 Other comprehensive income, net of tax, change in value of foreign currency basis spreads 0 0 Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to

profit or loss, net of tax

0 0

Total other comprehensive income that will be reclassified to profit or loss, net of tax (210,284,000) (370,613,000) Total other comprehensive income (210,284,000) (370,613,000)

(25)

Concept Accumulated Current Year 2017-01-01 - 2017-03-31 Accumulated Previous Year 2016-01-01 - 2016-03-31

Total comprehensive income 187,674,000 (930,719,000)

Comprehensive income attributable to [abstract]

Comprehensive income, attributable to owners of parent 193,923,000 (924,129,000) Comprehensive income, attributable to non-controlling interests (6,249,000) (6,590,000)

(26)

[520000] Statement of cash flows, indirect method

Concept Accumulated Current Year 01-01 - 2017-03-31 Accumulated Previous Year 01-01 - 2016-03-31 Statement of cash flows [abstract]

Cash flows from (used in) operating activities [abstract]

Profit (loss) 397,958,000 (560,106,000)

Adjustments to reconcile profit (loss) [abstract]

Discontinued operations 0 0

Adjustments for income tax expense 287,222,000 333,338,000 Adjustments for finance costs 379,611,000 343,284,000 Adjustments for depreciation and amortisation expense 204,478,000 173,298,000 Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss 0 0 Adjustments for provisions 17,136,000 22,151,000 Adjustments for unrealised foreign exchange losses (gains) (1,222,742,000) (7,617,000)

Adjustments for share-based payments 0 0

Adjustments for fair value losses (gains) 0 0

Adjustments for undistributed profits of associates 0 0 Adjustments for losses (gains) on disposal of non-current assets 0 0 Participation in associates and joint ventures 51,986,000 (3,812,000) Adjustments for decrease (increase) in inventories (236,467,000) (300,762,000) Adjustments for decrease (increase) in trade accounts receivable (2,516,017,000) (2,149,636,000) Adjustments for decrease (increase) in other operating receivables (10,190,000) (31,969,000) Adjustments for increase (decrease) in trade accounts payable 2,334,970,000 1,547,972,000 Adjustments for increase (decrease) in other operating payables 478,157,000 877,275,000 Other adjustments for non-cash items (179,216,000) (370,463,000) Other adjustments for which cash effects are investing or financing cash flow 0 0

Straight-line rent adjustment 0 0

Amortization of lease fees 0 0

Setting property values 0 0

Other adjustments to reconcile profit (loss) 0 0 Total adjustments to reconcile profit (loss) (411,072,000) 433,059,000 Net cash flows from (used in) operations (13,114,000) (127,047,000)

Dividends paid 0 0

Dividends received 0 0

Interest paid 0 0

Interest received 0 0

Income taxes refund (paid) 56,648,000 140,571,000

Other inflows (outflows) of cash 0 0

Net cash flows from (used in) operating activities (69,762,000) (267,618,000)

Cash flows from (used in) investing activities [abstract]

Cash flows from losing control of subsidiaries or other businesses 0 0 Cash flows used in obtaining control of subsidiaries or other businesses 0 0 Other cash receipts from sales of equity or debt instruments of other entities 0 0 Other cash payments to acquire equity or debt instruments of other entities 0 0 Other cash receipts from sales of interests in joint ventures 0 0 Other cash payments to acquire interests in joint ventures 0 0 Proceeds from sales of property, plant and equipment 6,694,000 6,886,000 Purchase of property, plant and equipment 107,687,000 35,229,000

Proceeds from sales of intangible assets 0 0

Purchase of intangible assets 0 70,729,000

(27)

Concept Accumulated Current Year 01-01 - 2017-03-31 Accumulated Previous Year 01-01 - 2016-03-31

Purchase of other long-term assets 0 0

Proceeds from government grants 0 0

Cash advances and loans made to other parties 0 0 Cash receipts from repayment of advances and loans made to other parties 0 0 Cash payments for future contracts, forward contracts, option contracts and swap contracts 0 0 Cash receipts from future contracts, forward contracts, option contracts and swap contracts 0 0

Dividends received 0 0

Interest paid 0 0

Interest received 0 0

Income taxes refund (paid) 0 0

Other inflows (outflows) of cash 0 (528,509,000) Net cash flows from (used in) investing activities (100,993,000) (627,581,000)

Cash flows from (used in) financing activities [abstract]

Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control 0 0 Payments from changes in ownership interests in subsidiaries that do not result in loss of control 0 0

Proceeds from issuing shares 0 0

Proceeds from issuing other equity instruments 0 0 Payments to acquire or redeem entity's shares 0 0

Payments of other equity instruments 0 0

Proceeds from borrowings 0 0

Repayments of borrowings 832,053,000 0

Payments of finance lease liabilities 0 0

Proceeds from government grants 0 0

Dividends paid 0 0

Interest paid 451,800,000 410,069,000

Income taxes refund (paid) 0 0

Other inflows (outflows) of cash (7,152,000) (1,808,000) Net cash flows from (used in) financing activities (1,291,005,000) (411,877,000) Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes (1,461,760,000) (1,307,076,000)

Effect of exchange rate changes on cash and cash equivalents [abstract]

Effect of exchange rate changes on cash and cash equivalents 0 0 Net increase (decrease) in cash and cash equivalents (1,461,760,000) (1,307,076,000) Cash and cash equivalents at beginning of period 4,470,314,000 3,721,373,000 Cash and cash equivalents at end of period 3,008,554,000 2,414,297,000

(28)

[610000] Statement of changes in equity - Accumulated Current

Components of equity [axis]

Sheet 1 of 3 Issued capital

[member] Share premium [member] Treasury shares [member] Retained earnings [member] Revaluation surplus [member] Reserve of exchange differences on translation [member] Reserve of cash flow hedges [member] Reserve of gains and losses on hedging instruments that hedge investments in equity instruments [member]

Reserve of change in value of time value of options [member]

Statement of changes in equity [line items]

Equity at beginning of period 715,229,000 207,419,000 0 4,919,130,000 0 1,421,746,000 0 0 0

Changes in equity [abstract] Comprehensive income [abstract]

Profit (loss) 0 0 0 404,207,000 0 0 0 0 0

Other comprehensive income 0 0 0 0 0 (479,303,000) 0 0 0

Total comprehensive income 0 0 0 404,207,000 0 (479,303,000) 0 0 0

Issue of equity 0 0 0 0 0 0 0 0 0

Dividends recognised as distributions to owners 0 0 0 0 0 0 0 0 0

Increase through other contributions by owners, equity 0 0 0 0 0 0 0 0 0

Decrease through other distributions to owners, equity 0 0 0 0 0 0 0 0 0

Increase (decrease) through other changes, equity 0 0 0 0 0 0 0 0 0

Increase (decrease) through treasury share transactions, equity 387,000 0 0 (7,539,000) 0 0 0 0 0

Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity

0 0 0 0 0 0 0 0 0

Increase (decrease) through share-based payment transactions, equity 0 0 0 0 0 0 0 0 0

Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied

0 0 0 0 0 0 0 0 0

Amount removed from reserve of change in value of time value of options and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied

0 0 0 0 0 0 0 0 0

Amount removed from reserve of change in value of forward elements of forward contracts and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied

0 0 0 0 0 0 0 0 0

Amount removed from reserve of change in value of foreign currency basis spreads and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied

0 0 0 0 0 0 0 0 0

Total increase (decrease) in equity 387,000 0 0 396,668,000 0 (479,303,000) 0 0 0

(29)

Sheet 2 of 3 Reserve of change in

value of forward elements of forward contracts [member] Reserve of change in value of foreign currency basis spreads [member]

Reserve of gains and losses on remeasuring available-for-sale financial assets [member] Reserve of share-based payments [member] Reserve of remeasurements of defined benefit plans

[member] Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale

[member]

Reserve of gains and losses from investments in equity instruments [member]

Reserve of change in fair value of financial liability attributable to change in credit risk of liability [member]

Reserve for catastrophe [member]

Equity at beginning of period 0 0 (1,623,722,000) 0 0 0 0 0 0

Profit (loss) 0 0 0 0 0 0 0 0 0

Other comprehensive income 0 0 269,019,000 0 0 0 0 0 0

Total comprehensive income 0 0 269,019,000 0 0 0 0 0 0

Issue of equity 0 0 0 0 0 0 0 0 0

Increase (decrease) through treasury share transactions, equity 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

Total increase (decrease) in equity 0 0 269,019,000 0 0 0 0 0 0

(30)

Sheet 3 of 3 Reserve for

equalisation [member] Reserve of discretionary participation features [member] Other comprehensive income [member] Other reserves [member] Equity attributable to owners of parent [member] Non-controlling interests [member] Equity [member]

Equity at beginning of period 0 0 0 (201,976,000) 5,639,802,000 24,569,000 5,664,371,000

Profit (loss) 0 0 0 0 404,207,000 (6,249,000) 397,958,000

Other comprehensive income 0 0 0 (210,284,000) (210,284,000) 0 (210,284,000)

Total comprehensive income 0 0 0 (210,284,000) 193,923,000 (6,249,000) 187,674,000

Issue of equity 0 0 0 0 0 0 0

Dividends recognised as distributions to owners 0 0 0 0 0 0 0

Increase through other contributions by owners, equity 0 0 0 0 0 0 0

Decrease through other distributions to owners, equity 0 0 0 0 0 0 0

Increase (decrease) through other changes, equity 0 0 0 0 0 0 0

Increase (decrease) through treasury share transactions, equity 0 0 0 0 (7,152,000) 0 (7,152,000)

0 0 0 0 0 0 0

Increase (decrease) through share-based payment transactions, equity 0 0 0 0 0 0 0

0 0 0 0 0 0 0

Total increase (decrease) in equity 0 0 0 (210,284,000) 186,771,000 (6,249,000) 180,522,000

(31)

[610000] Statement of changes in equity - Accumulated Previous

Sheet 1 of 3 Issued capital

[member] Share premium [member] Treasury shares [member] Retained earnings [member] Revaluation surplus [member] Reserve of exchange differences on translation [member] Reserve of cash flow hedges [member] Reserve of gains and losses on hedging instruments that hedge investments in equity instruments [member]

Reserve of change in value of time value of options [member]

Equity at beginning of period 716,436,000 207,419,000 0 9,171,061,000 0 621,567,000 0 0 0

Profit (loss) 0 0 0 (553,516,000) 0 0 0 0 0

Other comprehensive income 0 0 0 0 0 (129,919,000) 0 0 0

Total comprehensive income 0 0 0 (553,516,000) 0 (129,919,000) 0 0 0

Issue of equity 0 0 0 0 0 0 0 0 0

Increase (decrease) through treasury share transactions, equity (300,000) 0 0 (1,508,000) 0 0 0 0 0

0 0 0 0 0 0 0 0 0

Total increase (decrease) in equity (300,000) 0 0 (555,024,000) 0 (129,919,000) 0 0 0

(32)

Sheet 2 of 3 Reserve of change in

value of forward elements of forward contracts [member] Reserve of change in value of foreign currency basis spreads [member]

Reserve of gains and losses on remeasuring available-for-sale financial assets [member] Reserve of share-based payments [member] Reserve of remeasurements of defined benefit plans

[member] Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale

[member]

Reserve of gains and losses from investments in equity instruments [member]

Reserve of change in fair value of financial liability attributable to change in credit risk of liability [member]

Reserve for catastrophe [member]

Equity at beginning of period 0 0 (2,242,220,000) 0 0 0 0 0 0

Profit (loss) 0 0 0 0 0 0 0 0 0

Other comprehensive income 0 0 (240,694,000) 0 0 0 0 0 0

Total comprehensive income 0 0 (240,694,000) 0 0 0 0 0 0

Issue of equity 0 0 0 0 0 0 0 0 0

Increase (decrease) through treasury share transactions, equity 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

Total increase (decrease) in equity 0 0 (240,694,000) 0 0 0 0 0 0