Transcript Document 7343735

CORPORACIÓN INTERAMERICANA DE ENTRETENIMIENTO, S.A. DE C.V.
FIRST QUARTER 2005
As a precautionary note to investors, except for the historic information
here provided, statements included in this document constitute
forward-looking statements. Such statements assume risks and uncertainties,
including the economic conditions in Mexico and other countries where CIE
operates, as well as the fluctuation of the Mexican peso compared to the
U.S. dollar.
The use of registered trademarks or commercial trademarks within this
document are exclusively for illustrative purposes and are not meant to
violate the rights of the creators and/or intellectual property laws
applicable in the countries in which CIE, its subsidiaries, and those
companies with which CIE maintains commercial or business relationships,
operate.
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Content
Financial Results 1Q2005
Operative Results 1Q2005 and Outlook for 2005
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Operative Highlights
1Q05
1Q04
Events*
747
863
(13.4%)
Ticketmaster Tickets (thousands)
Mexico
South America
Total
3.6
1.4
5.0
3.5
2.4
5.9
3.0%
(42.0%)
(15.3%)
Attendance (thousands of people)
Events
Amusement Parks
1.7
1.5
1.5
1.4
13.3%
7.1%
598
1,819
32
635
1,517
25
(5.8%)
19.9%
28%
197
734
136
528
44.9%
39.0%
1,462
1,344
8.8%
Sports Books & Yaks
Per capita Consumption (Ps.)
Attendance (in thousands)
Units in operation
Pedestrian Overpasses
Structures in operation
Advertisements
Cineminutos
Movie Theaters
% Chg
Note: The quarterly variation would have been (35.3%) on a pro forma basis, taking into account the 291 events that were
held in Spain during 1Q04
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Financial Highlights
1Q05
1Q04
% Chg
1,830
1,677
9.1%
400
21.8%
376
22.4%
6.3%
(60 pb)
152
2.63x
110
3.43x
38.3%
(0.80x)
4,920
10,347
15,267
4,647
9,998
14,645
5.9%
3.5%
4.3%
Debt
Total Liabilities
5,227
7,889
4,974
7,429
5.1%
6.2%
Stockholders´Equity
7,378
7,216
2.3%
Debt / Stockholders´Equity
0.71x
0.69x
(0.02x)
Revenue
EBITDA
EBITDA Margin
Interests paid, net
EBITDA / Interests paid, net
Current Assets
L.T. Assets & Other Assets
Total Assets
Note: Figures expressed in millons of Mexican pesos of purchasing power as of March 31, 2005
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Quarterly Revenue
1Q04
Comp.
1Q05
Comp.
% Chg
Quarterly Revenue
Entertainment
Commercial
Services
1,260
235
184
75.1%
14.0%
10.9%
1,368
273
189
74.8%
14.9%
10.3%
8.6%
16.4%
2.7%
Total
1,677
100.0%
1,830
100.0%
9.1%
% Chg Quarterly Revenue +7%
1,600
+9%
1,400
1,200
1,000
800
600
+16%
400
+3%
200
0
Entertainment
Commercial
1Q04
Services
1Q05
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Debt
At May.05, the Group’s debt was Ps. 5,227 millon,
26% of which is due in the short-term and the remainder in the long-term
UDIs
7.2%
USD
13.5%
Pesos
79.3%
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Debt Programs
The issuance of a bond in international markets in the amount of $200 millon dollars
Term: 10 years (matures in 2015)
Interest rate/ reference coupon: Between 8 ¾ and 9 ¼ (depending on the demand of the book)
Estimated closing date: Wednesday June 8, 2005
Use of Proceeds: Debt Refinancing (Banamex, Inbursa, CEBURES and UDI Bond)
Notes:
Amount: Program for up to $2,400 millon Pesos (estimated amount: $1,500 millon)
Term: 5 years
Use of resources: Exchange of 2 issued UDIs Bonds, both of which mature in 2007
Debt Profile
Total Debt:US$462mm
Proforma Debt Profile
Total Debt:US$462mm
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Content
Financial Results 1Q2005
Operative Results 1Q2005 and Outlook 2005
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CIE Entertainment
Events:
Cirque du Soleil: three dates for 3Q05 in Monterrey, Guadalajara and Mexico City
International: solid events calendar for the first six months of 2005. (p.e Paul MCartney,
Phil Collins, Avril Lavigne, Sarah Brightman)
Disney on Ice: “Finding Nemo,” which will run from May through July
Automobile Racing:
NASCAR (March 5-6th)
Champ Car Monterrey (May 20-22nd)
Champ Car México (Nov. 6-8)
Theater:
The closing of “Joseph and the Tecnicolor Dreamcoat” in 1Q05, which will be replaced by
Bésame Mucho during 3Q05
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Schedule of Upcoming Events
RBD
Finding Nemo
Bacilos
Los Tigres del Norte
Moenia
Mijares
La Gira de Bosé
Alejandro Fernández
Diego Torres
Placebo
Santana
Buena Vista Social Club
Vive Latino
Los Lobos
Laura Pausini
Silvio Rodríguez
Audioslave
The White Stripes
Alex Syntex
Creedence Clearwater
Lucybel
Peter Murphy
Nine Inch Nails
Black Party
Australian Pink Floyd
Jaguares
Lagrimas Negras
Ojos de Brujo
Keane
Avril Lavigne
Phil Collins
Sarah Brightman
Paul McCartney
Cirque du Soleil
Bésame Mucho
Ratones Paranóicos
Babasónicos
Los Tipitos
El Otro Yo
Andrés Calamaro
Los Cafres
Alma Fuerte
Las Pelotas
Catupecu Machu
Divididos
Kapanga
Bersuit
Rata Blanca
South Feast
Aladin
La Revista
Unipersonal de Posca
Sun Project
Skank
Roupa Nouva
Simone e Convidados
Placebo
George Benson
Xuxa
Daniela Mercury
Orishas
Eagle Eye Cherry
Jorge Ben Jor
Zeca Pagodinho
Steel Pulse
Australian Pink Floyd
Brune e Marrone
Momix
Cidade Negra
Tributo a Cassia Eller
Jammil e Uma Noites
Tony Bennett
Kid Abelha
Ivete Sangalo
David Copperfield
Lulú Santos
Maria Betania
Brian Adams
Barney
Ana Carolina
Jethro Tull & Orchestra
Beach Boys
Laura Pausini
Roberto Carlos
Diávolo
Ivan Lins
Festival de Blues
Abelardo e Berilo
Tonny Lima
Maria Rita
Festival de Jazz
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CIE Las Américas
Horse Racetrack
2005 Racing Season: Feb.4 – Dec.18; Friday through Sunday
Sports Books & Yaks:
Begin operations in Morelia with the inauguration of one unit. With this opening,
by the end of 1Q05 CIE will have 32 Books and 28 Yaks in operation.
Torreón
Monterrey
Hermosillo
León
Culiacán
Villahermosa
Cancún
Aguascalientes
Guadalajara
Morelia
Cd. México
And State of Mexico
41 units scheduled to be in operation by the end of 2005, including Tampico,
Cuautitlán and Puebla
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CIE Commercial
Pedestrian Overpasses:
Consolidation of operations in Guadalajara, Cuernavaca
and Aguascalientes, in addition to the expansion in Puebla
Continue with the process of renovating longer-term contracts for municipal concessions
to install and operate overpasses
Advertising in airports:
GACN: the installation of software & hardware in digital panels is almost completed
Proposal to other airport operators in Mexico
Media Innovations:
Media Innovations is participating more in its clients’ campaigns
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CIE Parques de Diversiones
Wannado Entertainment:
Consistent increase in monthly attendance at Wannado Miami, up from
18,000 visitors in Aug ‘04 to an average of 40,000 in 1Q05
Continued optimization of operations together with a reduction of costs and expenses
Strategies to reposition the park:
Prices: kids, adults, groups/ schools
Brand Sponsorships in pavillions and activities
Public Relations and media
Marketing tactis geared towards key markets
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CIE Internacional
Brazil:
An increase in the volume of local shows and regional tours
New offering of promotional and advertising tools:
Continue presenting medium-scale, theatrical productions; staging of Phantom of the Opera
Argentina:
A greater number of live events and theater productions due to the
improvement in the local economy
Continue redefining the sales and financing strategy for Radio stations;
renovation of licenses for a 10-year period
Mayo 2005: acquisition of Ticketek, an important ticketing company in
Argentina (US$800,000, differed for 5 years)
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