TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES

                     CONSOLIDATED RESULTS OF OPERATIONS*

      (Millions of Mexican pesos of December 31, 2003 purchasing power)

 

                  Fourth Quarter of:   Fourth Quarter of:

                     2002     2003     2002           2003            Change

                                           Millions of US Dollars **         %

 

    Net revenue  Ps 2,054 Ps 2,296  US$ 183  100%  US$ 204  100%  US$ 22   12%

    Programming,

     production

     and transmission

     costs            524      859       47   26%       76   37%      30   64%

    Sales and

     administrative

     expenses         276      274       25   13%       24   12%      (0)  -1%

 

    EBITDA          1,254    1,163      112   61%      104   51%      (8)  -7%

 

    Depreciation and

     amortization      (5)     111       (0)            10            10

 

    Operating

     profit         1,259    1,052      112   61%       94   46%     (18) -16%

 

    Other

     expenses - Net  (178)    (168)     (16)           (15)            1

 

    Comprehensive

     financing cost:

    Interest expense (200)    (208)     (18)           (19)           (1)

    Other financing

     expense          (16)     (10)      (1)            (1)            1

    Interest income    37       46        3              4             1

    Exchange gain

     (loss) - Net      25      (55)       2             (5)           (7)

    Loss on monetary

     position         (38)     (11)      (3)            (1)            2

    Net comprehensive

     financing cost  (192)    (238)     (17)           (21)           (4)

 

    Income before

     provision for

     income tax and

     deferred

     income tax       889      646       79   43%       58   28%     (22) -27%

    Provision for:

    Income tax       (117)     106      (10)             9            20

    Deferred

     income tax       (27)    (157)      (2)           (14)          (12)

 

    Net income     Ps 745   Ps 595   US$ 66   36%   US$ 53   26% US$ (13) -20%

 

    Net income of

     minority

     stockholders  Ps 0.1   Ps 0.4    US $0          US$ 0          US$0

 

    Net income of

     majority

     stockholders  Ps 745   Ps 595   US $66   36%   US$ 53   26%  US$(13) -20%

 

    End of

     period

     exchange

     rate        Ps 10.40 Ps 11.23

 

     * Mexican GAAP.

    ** The U.S. dollar figures  represent the Mexican peso amounts as of

       December 31, 2003 expressed as of  December 31, 2003 purchasing power,

       translated at the exchange rate of Ps. 11.23 per U.S. dollar.

 

                   TV AZTECA, S.A. DE C.V. AND SUBSIDIARIES

                     CONSOLIDATED RESULTS OF OPERATIONS*

      (Millions of Mexican pesos of December 31, 2003 purchasing power)

 

                      Year ended          Year ended

                     December 31,         December 31,

                    2002      2003    2002           2003            Change

                                        Millions of US Dollars **           %

 

    Net revenue  Ps 6,956 Ps 7,281  US$ 619  100%  US$ 648  100%  US$ 29    5%

    Programming,

     production and

     transmission

     costs          2,611    2,854      232   38%      254   39%      22    9%

    Sales and

     administrative

     expenses       1,013    1,051       90   15%       94   14%       3    4%

 

    EBITDA          3,332    3,376      297   48%      301   46%       4    1%

 

    Depreciation

    and amortization  401      369       36             33            (3)

 

    Operating

     profit         2,931    3,007      261   42%      268   41%       7    3%

 

    Other

     expenses - Net  (459)    (458)     (41)           (41)            0

 

    Comprehensive

     financing cost:

    Interest expense (754)    (767)     (67)           (68)           (1)

    Other financing

     expense         (140)     (52)     (12)            (5)            8

    Interest income   200      205       18             18             0

    Exchange

     loss - Net      (367)    (192)     (33)           (17)           16

    Loss on monetary

     position         (85)     (31)      (8)            (3)            5

    Net comprehensive

     financing

     cost          (1,146)    (837)    (102)           (75)           28

 

    Income before

     provision for

     income tax

     and deferred

     income tax     1,326    1,712      118   19%      152   24%      34   29%

    Provisions for:

    Income tax       (275)      (3)     (24)            (0)           24

    Deferred

     income tax       (27)    (132)      (2)           (12)           (9)

 

    Net income   Ps 1,024 Ps 1,577   US$ 91   15%  US$ 140   22%  US$ 49   54%

 

    Net (loss)

     income of

     minority

     stockholders Ps (0.2)  Ps 1.4 US$ (0.0)       US$ 0.1         US$ 0

 

    Net income of

     majority

      stock-

       holders   Ps 1,024 Ps 1,576   US$ 91   15%  US$ 140   22%  US$ 49  54%

    End of

     period

     exchange

     rate        Ps 10.40 Ps 11.23

 

     * Mexican GAAP.

    ** The U.S. dollar figures represent the Mexican peso amounts as of

       December 31, 2003 expressed as of  December 31, 2003 purchasing power,

       translated at the exchange rate of Ps. 11.23 per U.S. dollar.

 

 

                  TV AZTECA, S.A.  DE C.V. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS*

      (Millions of Mexican pesos of December 31, 2003 purchasing power)

 

                            At December 31,      At December 31,

                             2002      2003      2002        2003       Change

                                               Millions of US Dollars**

    Current assets:                                                          %

    Cash and cash

     equivalents         Ps 1,449  Ps 2,481    US$129     US$ 221 US$ 92

    Accounts receivable     5,117     5,615       456         500     44

    Other current assets      965     1,133        86         101     15

 

    Total current assets    7,531     9,229       670         822    151   23%

 

    Accounts receivable

     from Unefon            2,089     1,798       186         160    (26)

    Property, plant and

     equipment-Net          2,320     2,185       207         195    (12)

    Television

     concessions-Net        3,890     3,852       346         343     (3)

    Invesment in Unefon     1,826        --       163          --   (163)

    Invesment in Todito       333       215        30          19    (11)

    Investment in Azteca

     America                1,200     1,451       107         129     22

    Exhibition rights       1,434     1,192       128         106    (22)

    Other assets              861       679        77          60    (16)

    Goodwill -Net             667       591        59          53     (7)

 

    Total long term assets 14,989    11,963     1,334       1,065   (269) -20%

 

 

    Total assets        Ps 22,520 Ps 21,192  US$ 2,005  US$ 1,887 US$(118) -6%

    Current liabilities:

    Short-term debt        Ps 455    Ps 779     US$ 41     US$ 69  US$ 29

    Guaranteed senior notes           1,404                   125     125

    Other current

     liabilities            1,580     1,580        141        141      --

 

    Total current

     liabilities            2,035     3,763        181        335     154  85%

 

    Long-term liabilities

    Guaranteed senior notes 4,593     3,370        409        300    (109)

    Bank loans                 61       619          5         55      50

    Subtotal debt           4,654     3,989        414        355     (59)

    Exhibition rights

     payable                  256       120         23         11     (12)

    American Tower

     Corporation (due 2069) 1,294     1,345        115        120       5

    Advertising advances    4,623     4,903        412        437      25   6%

    Unefon advertising

     advance                2,253     2,075        201        185     (16)

    Todito advances           524       320         47         28     (18)

    Deferred income tax

     payable                   27        78          2          7       5

 

    Total long-term

     liabilities           13,631    12,830      1,214      1,142     (71) -6%

 

    Total liabilities      15,666    16,593      1,395      1,477      83   6%

    Total stockholders'

     equity                 6,854     4,599        610        409    (201)-33%

 

    Total liabilities

     and equity         Ps 22,520 Ps 21,192  US$ 2,005  US$ 1,887 US$(118) %6%

 

    End of period

     exchange rate       Ps 10.40  Ps 11.23

 

     *   Mexican GAAP.

     **  The U.S. dollar figures represent Mexican peso amounts as of December

         31, 2003, expressed as of  December 31, 2003 purchasing power,

         translated at the exchange rate of Ps. 11.23 per U.S. dollar.

 

 

                  TV AZTECA, S.A.  DE C.V. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS*

      (Millions of Mexican pesos of December 31, 2003 purchasing power)

 

                                               At December 31, 2003

                                   TV Azteca    Unefon Holdings    TV Azteca

                           Before split off                     Post split off

 

    Current assets:

    Cash and cash equivalents       Ps 2,481                        Ps 2,481

    Accounts receivable                5,615                           5,615

    Other current assets               1,133                           1,133

 

    Total current assets               9,229             --            9,229

 

    Accounts receivable from Unefon    1,798                           1,798

    Property, plant and equipment-Net  2,185                           2,185

    Television concessions-Net         3,852                           3,852

    Invesment in Unefon                  513         Ps 513               --

    Invesment in Cosmofrecuencias        116            116               --

    Invesment in Todito                  215                             215

    Investment in Azteca America       1,451                           1,451

    Exhibition rights                  1,192                           1,192

    Other assets                         679                             679

    Goodwill -Net                        591                             591

    Total long term assets            12,592            629           11,963

 

    Total assets                   Ps 21,821         Ps 629        Ps 21,192

 

    Current liabilities:

    Short-term debt                   Ps 779         Ps 779

    Guaranteed senior notes            1,404                           1,404

    Other current liabilities          1,580                           1,580

 

    Total current liabilities          3,763             --            3,763

 

    Long-term liabilities

    Guaranteed senior notes            3,370                           3,370

    Bank loans                           619                             619

    Subtotal debt                      3,989                           3,989

    Exhibition rights payable            120                             120

    American Tower Corporation

     (due 2069)                        1,345                           1,345

    Advertising advances               4,903                           4,903

    Unefon advertising advance         2,075                           2,075

    Todito advances                      320                             320

    Deferred income tax payable           78                              78

 

    Total long-term liabilities       12,830                          12,830

 

    Total liabilities                 16,593             --           16,593

 

    Total stockholders' equity         5,228         Ps 629            4,599

 

    Total liabilities and equity   Ps 21,821         Ps 629        Ps 21,192

 

    End of period exchange rate     Ps 11.23

                                          --

 

     *  Mexican GAAP.

 

 

                  TV AZTECA, S.A.  DE C.V. AND SUBSIDIARIES

 

           CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

       Millions of Mexican pesos of December 31, 2003  purchasing power

 

                                                       Year ended December 31,

    Operations:                                              2002       2003

 

    Net income                                            Ps 1,023   Ps 1,577

    Charges (credits) to results of operation not

     affecting resources:

    Amortization of goodwill                                    44         39

    Depreciation                                               357        330

    Equity in loss of affiliates                               116         48

    Deferred income tax                                         27        132

    Gain on sale of subsidiaries                                           (2)

 

    Net change in accounts receivable,

     inventories, exhibition rights, related parties,

     accounts payable and accrued expenses                    (124)      (575)

    Unefon advertising advances                                (95)      (178)

    Todito advertising, programming, and services advances    (219)      (205)

    Advertising advances                                      (201)       280

    Resources provided by operations                           928      1,446

 

    Investment:

    Acquisition of property, machinery and equipment -Net     (250)      (172)

    Split off of investments in Unefon and Cosmofrecuencias             2,194

    Advance payments to Pappas Telecasting

     Companies, through Azteca America                        (474)

    Reimbursement of premium on issuance

     of capital stock of Todito                                            34

    Minority interest                                            1        (10)

    Resources (used in) provided by investing activities      (723)     2,046

 

    Financing:

    Guaranteed senior notes                                    315        180

    Bank loans -Net                                           (348)       934

    Loan granted to related party                             (207)

    Stock options exercised                                     25         29

    Preferred dividend paid                                    (42)       (37)

    Repurchase of shares                                      (177)        -

    Sale of treasury shares                                    142        100

    Capital stock decrease                                      -      (1,442)

    Changes resulting from the split off of

     investments in Unefon and Cosmofrecuencias                        (2,124)

    Financial instruments                                     (180)      (100)

    Resources used in financing activities                    (472)    (2,460)

     (Decrease) increase in cash and cash equivalents         (267)     1,032

    Cash and cash equivalents at beginning of period         1,716      1,449

 

    Cash and cash equivalents at end of period            Ps 1,449   Ps 2,481