11 Mar 2020 08:37
Cablevisión Holding Announces its Full Year and Fourth Quarter 2019 Results (FY19 and 4Q19)
Buenos Aires, Argentina, March 10, 2020 - Cablevisión Holding S.A., ("Cablevision Holding", "CVH" or "the Company" - BCBA: CVH; LSE: CVH; Level 1: CVHSY), controlling shareholder of Telecom Argentina S.A. (NYSE: TEO, BCBA: TECO2), announces today its Full Year and fourth quarter 2019 Results. Figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in constant Argentine Pesos ("Ps." or "P$") as of December 31, 2019, unless otherwise indicated.
The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the annual financial statements.
CVH Highlights (2019 vs. 2018):
§ Total Revenues reached Ps. 237,024 million, a decrease of 8.3% in real terms as of December 31, 2019, compared to 2018, mainly due to lower mobile, internet and cable services revenues.
§ Total Costs (Excluding Depreciation and Amortization) reached Ps. 160,236 million, a decrease of 7.0% in constant currency, mainly driven by lower cost of taxes and fees with the regulatory authority (in line with a decrease in activity), commissions and advertising and cost of handsets sold.
§ EBITDA reached Ps. 76,788 million, a decrease of 11% in real terms compared to 2018, mainly driven by lower revenues. EBITDA Margin was 32.4% in 2019, compared to 33.4% in 2018.
§ Consolidated Net Income totaled a loss of Ps. 5,185 million. Consolidated Net Income attributable to the Controlling Company amounted a loss of Ps. 3,025 million.
FINANCIAL HIGHLIGHTS
(millions of Ps.in constant Currency as of December 31, 2019) | 2019 | 2018 | % Ch. | 4Q19 | 3Q19 | 4Q18 | QoQ | YoY |
Total Revenues | 237,024 | 258,518 | (8.3%) | 58,609 | 59,330 | 59,771 | (1.2%) | (1.9%) |
EBITDA (1) | 76,788 | 86,251 | (11.0%) | 17,632 | 19,334 | 17,168 | (8.8%) | 2.7% |
EBITDA Margin (2) | 32.4% | 33.4% | (2.9%) | 30.1% | 32.6% | 28.7% | (2.5%) | 1.4% |
Income for the period | (5,185) | 2,883 | (279.8%) | 11,695 | (24,836) | 23,472 | 147.1% | (50.2%) |
Attributable to: |
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Equity Shareholders | (3,025) | (2,467) | (22.6%) | 5,328 | (11,084) | 10,220 | 148.1% | (47.9%) |
Non-Controlling Interests | (2,160) | 5,350 | (140.4%) | 6,366 | (13,753) | 13,252 | 146.3% | (52.0%) |
(1) EBITDA is defined as Total Revenues minus operating cost and expenses (excluding depreciation and amortization). We believe that EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies based on operating performance, leverage and liquidity. Nonetheless, EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute EBITDA in a different manner; therefore, EBITDA as reported by other companies may not be comparable to EBITDA as we report it.
(2) EBITDA Margin is defined as EBITDA over Total Revenues.
OPERATING RESULTS
Total Revenues reached Ps. 237,024 million, a decrease of 8.3% compared to Ps. 258,518 million in 2018, mainly driven by lower revenues from Mobile, Internet and Cable TV services in constant currency.
Following is a breakdown of Total Revenues:
(millions of Ps.in constant Currency as of December 31, 2019) | 2019 | 2018 | YoY | 2019% of Total | 2018% of Total |
Mobile Services | 82,195 | 88,881 | (7.5%) | 34.7% | 34.4% |
Internet Services | 52,649 | 58,061 | (9.3%) | 22.2% | 22.5% |
Cable TV Services | 49,406 | 55,485 | (11.0%) | 20.8% | 21.5% |
Fixed Telephony and Data Services | 37,562 | 35,612 | 5.5% | 15.8% | 13.8% |
Other revenues from services | 774 | 735 | 5.3% | 0.3% | 0.3% |
Revenues From Services | 222,586 | 238,774 | (6.8%) | 93.9% | 92.4% |
Revenues From Equipment Sales | 14,438 | 19,744 | (26.9%) | 6.1% | 7.6% |
Total Revenues | 237,024 | 258,518 | (8.3%) | 100.0% | 100.0% |
Mobile Services Revenues amounted 82,195 as of December 31, 2019, decreasing by 7.5% in real terms compared to 2018. This was mainly the results of the restatement effect as of December 31,2019, which was partially offset by the increase in the prices of mobile plans.
In Argentina, Personal mobile subscriber amounted to 19.1 million at the end of 2019, increasing in more than 768 thousand clients compared to 2018, and around 40% of them are postpaid. Mobile internet revenues reached 76% of service revenues of Personal in Argentina (vs. 59% in 2018). During 2019, mobile ARPU was Ps. 317.1, resulting in an 3.6% lower ARPU restated in constant currency compared to 2018.
As of December 31, 2019, Núcleo customer base reached more than 2.3 million subscribers, of which 17% are postpaid. Revenues from Núcleo services were Ps 11,132 million in 2019, an increase of 8.2% compared to 2018. Mobile internet revenues represented 50% of 2019 service revenues (vs. 45% in 2018).
Internet Services Revenues dropped 9.3% to Ps. 52,649 in 2019, mainly due to the results of the restatement effect as of December 31, 2019. Of the 4.1 million broadband customers reached in 2019, around 62% of them subscribed to services with speeds of 20Mb or higher, increasing from the participation registered in 2018 (38%). Internet ARPU was Ps. 1,058.8 in 2019, decreasing 9.7% compared to 2018, mainly due to the restatement effect as of December 31, 2019. Monthly churn stood at 1.5% in 2019.
Cable TV Services Revenues amounted to Ps. 49,406 million in 2019, a decrease of 11.0% compared to 2018. ARPU had a reduction in real terms, from Ps. 1,314.2 in 2018 to Ps. 1,165.4 in 2019, a decrease of 11.3%. It is important to mention that with the aim of offering the best entertainment experience, an integrated content search solution of Netflix was included by Telecom in Flow´s decoder browser. In addition, Flow continued to promote national fictions through premiered new coproductions during the last part of 2019.
Fixed Telephony and Data Services Revenues reached Ps. 37,562 million in 2019, an increase of 5.5% compared to 2018. The increase was the result of higher Data services revenues, mainly driven by the growing position of Telecom Argentina as an integrated ICT provider (Datacenter, VPN, among other services) in the segment of Corporate and Government customers. Additionally, prices in fixed telephony services for both, corporates and residential, have increased and, consequently, ARBU in fixed telephony also increased 6.1%, from Ps. 416.6 in 2018 to Ps. 442.2 in 2019.
Lastly, Revenues from equipment sales amounted to Ps. 14,438 million (vs. Ps. 19,744 in 2018). This variation was mainly due to a decrease in the quantities sold in a general context of lower consumption of durable goods and difficulties in the access to consumer financing, partially offset by the increase in prices of handset sales.
Consolidated Operating Costs and Expenses (Excluding D&A and impairment of PP&E and intangible assets) totaled Ps. 160,236 million in 2019, a decrease of Ps. 12,031 million, or 7.0% compared to 2018. These lower operating costs and expenses were mainly due to lower cost of taxes and fees with the regulatory authority (in line with a decrease in activity), commissions and advertising, cost of handsets sold, interconnection and transmission costs, programming costs, partially offset by higher Fees for Services, Maintenance, Materials and Supplies, bad debt expenses and labor costs. . More than 99.8% of the costs and expenses are related to Telecom Argentina operations.
EBITDA reached Ps. 76,788 million, a decrease of 11.0% from Ps. 86,251 million reported for 2018, driven by lower revenues, mainly in Mobile, Internet and Cable TV Services.
Depreciation, amortization and impairment of PP&E, intangible assets and rights-of-use amounted Ps. 61,277 million in 2019, an increase of 13.5% compared to 2018. The increase was due to the impact of the amortization of the assets incorporated after December 31, 2018, as a consequence of the Capex Plan that Telecom Argentina is developing and the effect of the application of IFRS 16 since January 1, 2019, which was partially offset by assets that have stopped amortizing in 2019.
Equity in earnings from unconsolidated affiliates totaled Ps. (187) million in 2019, compared to Ps. 363 million in 2018.
Financial Results net totaled Ps. (6,293) million compared to Ps. (34,068) million in 2018, as a result of a lower impact of the peso depreciation on dollar denominated debt: positive FX results (including results of NDF) measured in real terms in 2019 for Ps. 311 million, compared to negative FX results measured in real terms registered in 2018 for Ps. 46,522 million. These results were partially offset by a lower inflation adjustment results.
Income tax as of December 2019 reached Ps. (14,216) million, from Ps. 4,340 million in December 2018.
Net Income for the period totaled a loss of Ps. 5,185 million, from Ps. 2,883 million reported for 2018. This was mainly a consequence of lower revenues and higher Depreciations and Amortizations, which was partially offset by lower negative financial results. The Equity Shareholders Income for the period amounted a loss of Ps. 3,025 million.
(millions of Ps.in constant Currency as of December 31, 2019) | 2019 | 2018 | YoY | 4Q19 | 3Q19 | 4Q18 | QoQ | YoY | |
Consolidated Revenues | 237,024 | 258,518 | (8.3%) | 58,609 | 59,330 | 59,771 | (1.2%) | (1.9%) | |
Employee benefit expenses and severance payments | (46,560) | (46,261) | 0.6% | (12,568) | (11,252) | (11,483) | 11.7% | 9.5% | |
Interconnection and Transmission Costs | (7,520) | (8,500) | (11.5%) | (1,820) | (1,946) | (2,131) | (6.5%) | (14.6%) | |
Fees for Services, Maintenance, Materials and Supplies | (26,755) | (25,265) | 5.9% | (7,392) | (6,996) | (5,830) | 5.7% | 26.8% | |
Taxes and Fees with the Regulatory Authority | (18,391) | (20,975) | (12.3%) | (4,404) | (4,536) | (4,978) | (2.9%) | (11.5%) | |
Commissions and Advertising | (14,612) | (17,245) | (15.3%) | (3,956) | (3,644) | (4,607) | 8.6% | (14.1%) | |
Cost of Equipment and Handsets | (10,749) | (14,871) | (27.7%) | (2,376) | (2,545) | (3,518) | (6.7%) | (32.5%) | |
Programming and Content Costs | (18,031) | (18,700) | (3.6%) | (4,577) | (4,478) | (4,445) | 2.2% | 3.0% | |
Bad Debt Expenses | (6,331) | (5,426) | 16.7% | (1,473) | (1,510) | (1,457) | (2.5%) | 1.2% | |
Other Operating Income and Expense | (11,287) | (15,024) | (24.9%) | (2,411) | (3,088) | (4,155) | (21.9%) | (42.0%) | |
EBITDA1 | 76,788 | 86,251 | (11.0%) | 17,632 | 19,334 | 17,168 | (8.8%) | 2.7% | |
EBITDA Margin2 | 32.4% | 33.4% | (1.0%) | 30.1% | 32.6% | 28.7% | (2.5%) | 1.36% | |
Net Income | (5,185) | 2,883 | NA | 11,695 | (24,836) | 23,472 | (147.1%) | (50.2%) | |
Attributable to: |
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Controlling Company | (3,025) | (2,467) | 23% | 5,328 | (11,084) | 10,220 | (148.1%) | (47.9%) | |
Non-controlling interest | (2,160) | 5,350 | (140%) | 6,366 | (13,753) | 13,252 | (146.3%) | (52.0%) |
OPERATING STATISTICS BY BUSINESS SEGMENT
| 2019 | 2018 | YoY |
Mobile Services |
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Total Subscribers | 21,410 | 20,695 | 3.5% |
Personal (Argentina) | 19,084 | 18,316 | 4.2% |
Nucleo (Paraguay) | 2,326 | 2,379 | (2.2%) |
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Postpaid |
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Personal (Argentina) | 40% | 39% | 2.6% |
Nucleo (Paraguay) | 17% | 17% | 0.0% |
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ARPU Personal(2) | 317.1 | 329.1 | (3.6%) |
Churn | 2.9% | 2.6% | 11.5% |
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Broadband Services |
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Subscribers | 4,123 | 4,138 | (0.4%) |
Speeds >20Mb (% of subs) | 62% | 38% | 63.2% |
ARPU(2) | 1,058.8 | 1,172.2 | (9.7%) |
Churn(4) | 1.5% | 1.3% | 15.4% |
Cable TV Services |
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Cable TV Subs | 3,517 | 3,532 | (0.4%) |
Argentina Subs | 3,294 | 3,310 | (0.5%) |
Uruguay Subs | 142 | 144 | (1.4%) |
Paraguay Subs | 81 | 78 | 3.8% |
ARPU(2) | 1,165.4 | 1,314.2 | (11.3%) |
Churn(4) | 1.3% | 1.3% | 0.0% |
Fixed Line Services |
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Subscribers | 3,183 | 3,544 | (10.2%) |
ARBU(3) | 442.2 | 416.6 | 6.1% |
(1) Figures in thousands
(2) ARPU = Average Revenue per user (restated by inflation as of December 31, 2019)
(3) ARBU = Average Billing per user (restated by inflation as of December 31, 2019)
(4) Monthly Average Churn
CAPITAL EXPENDITURE (CAPEX)
During 2019, our subsidiary, Telecom Argentina, invested Ps. 70,865 million, an increase of approximately 8.3% compared to 2018. The investments were focused on projects aimed to maximize the network capacity and on products and services developed to contribute the customer's needs in terms of connectivity and data availability. Moreover, transmission and transport networks has been extended to unify the different access technologies, reconverting the copper fixed networks into fiber or coaxial-fiber hybrid networks, in order to face the increasing services demand from mobile and fixed clients. In addition, our subsidiary has invested in the charging, billing and relationship systems with customers. Telecom Argentina aims to improve the capacity and coverage of its networks, which is a key factor, not only for the transformation towards convergent services, but also to leverage the content business, with Flow as an integral content platform and entertainment center. In relative terms, investments reached 29.9% of consolidated revenues in 2019, compared to 25.3% in 2018.
DEBT AND LIQUIDITY
(In millions of Ps.) | December 2019 | December 2018 | % Change |
Short Term and Long-Term Debt |
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Current Financial Debt | 35,280 | 43,419 | (18.7%) |
Bank overdraft | 9,710 | 3,501 | 177.3% |
Financial loans | 13,807 | 32,487 | (57.5%) |
Acquisition of equipment | 1,500 | 1,612 | (6.9%) |
NDF | 361 | 153 | NA |
Accrued interest | 9,902 | 5,666 | 74.8% |
Non-Current Financial Debt | 116,716 | 91,173 | 28.0% |
Negotiable obligations | 40,525 | 24,732 | 63.9% |
Financial loans | 56,687 | 52,716 | 7.5% |
NDF | 14 | 0 | NA |
Acquisition of equipment | 2,690 | 1,586 | 69.6% |
Accrued interest | 16,800 | 12,139 | 38.4% |
Total Financial Debt (A) | 151,996 | 134,592 | 12.9% |
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Cash and Cash Equivalents (B) | 28,652 | 21,922 | 30.7% |
Net Debt (A) - (B) | 123,344 | 112,670 | 9.5% |
Net Debt/Adjusted Ebitda (1) | 1.6 | 1.3 | 23.0% |
% USD Debt | 92% | 95% | (3.0%) |
% PYG Debt | 3% | 3% | 0.0% |
% ARS Debt | 5% | 2% | 3.0% |
Total Financial Debt(1) increased from Ps. 134,592 million to Ps. 151,996 million and Net Debt increased from Ps 112,670 to Ps. 123,344.
Debt coverage ratio (1) as of December 31, 2019 was 1.6x in the case of Net Debt and of 2.2x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Last Twelve Months EBITDA. Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
STOCK AND MARKET INFORMATION
Cablevisión Holding trades its stock on the Buenos Aires Stock Exchange (BCBA) and on the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.
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CVH (BCBA) Price per Share (ARS)
| 314.0 |
CVH or CVHSY Price per GDS (USD) | 3.5 |
Total Shares | 180,642,580 |
Total GDSs | 180,642,580 |
Market Value (USD MM) | 632.2 |
Closing Price | March 10, 2020
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CONFERENCE CALL AND WEBCAST INFORMATION
CABLEVISIÓN HOLDING S.A
(BCBA: CVH / LSE: CVH)
cordially invites you to participate in its conference call and webcast presentation
to discuss Fourth Quarter 2019 Results
Date: Thursday, March 12, 2020
Time: 12:00pm Buenos Aires Time/11:00am New York Time/3:00pm London
To access the conference call, please dial:Argentina Participants: 0-800-666-0250
U.S. Participants: 1-877-830-2576
All other countries: +1-785-424-1726Passcode: CVH
The 4Q19 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit:
https://services.choruscall.com/links/cvhsy200312AE2xfPba.html
A replay of the conference call will be available four hours after its conclusion and will remain available for 7 days. To access the replay, please dial from the within the U.S. 1-844-488-7474, or from anywhere outside the U.S. +1-862-902-0129. The passcode is: 50122820
The webcast presentation will be archived at: https://www.cablevisionholding.com/Investors/Presentations
Investor Relations Contacts:
In Buenos Aires: In New York:
Cablevisión Holding S.A i-advize Corporate Communications, Inc
Agustín Medina Manson, Head of Investor Relations Camilla Ferreira / Kenia Vargas
Valentina Lopez, Sr. Analyst Email: cferreira@i-advize.com
Email: ir@cvh.com.ar kvargas@i-advize.com
Tel: (+54 11) 4309 - 3417 Tel: +1 212 406 3695 / 3696
www.cvh.com.ar
ABOUT THE COMPANY
CVH was funded as corporate spin-off from Grupo Clarín S.A. and it is the first Argentine holding company that engages in the development of infrastructure and the provision of convergent telecommunications services, focusing on Argentina and the region. CVH's subsidiaries specialize in the provision of cable TV, broadband and mobile communications services; and their brands are already well known in the telecommunications and content distribution industries.
Disclaimer
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of CVH. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. CVH does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in CVH's projections or forward-looking statements, including, among others, general economic conditions, CVH's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to CVH and its operations.
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
(in millions of Argentine pesos)
| December 31, 2019 |
| December 31, 2018 |
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Revenues | 237,024 |
| 258,518 |
Employee benefit expenses and severance payments | (46,560) |
| (46,261) |
Interconnection and Transmission Costs | (7,520) |
| (8,500) |
Fees for Services, Maintenance, Materials and Supplies | (26,755) |
| (25,265) |
Taxes and Fees with the Regulatory Authority | (18,391) |
| (20,975) |
Commissions and Advertising | (14,612) |
| (17,245) |
Cost of Equipment and Handsets | (10,749) |
| (14,871) |
Programming and Content Costs | (18,031) |
| (18,700) |
Bad Debt Expenses | (6,331) |
| (5,426) |
Other Operating Costs | (11,287) |
| (15,024) |
Operating Income before Depreciation and Amortization | 76,788 |
| 86,251 |
Depreciation, Amortization and Impairment of Fixed Assets | (61,277) |
| (54,003) |
Operating Income | 15,511 |
| 32,248 |
Equity in Earnings from Associates | (187) |
| 363 |
Financial Expenses on Debts | (18,947) |
| (57,340) |
Other Financial Results, net | 12,654 |
| 23,272 |
Income (Loss) before Income Tax Expense | 9,031 |
| (1,457) |
Income Tax | (14,216) |
| 4,340 |
Net (Loss) / Income | (5,185) |
| 2,883 |
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Other Comprehensive Income |
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To be subsequently reclassified to profit or loss |
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Currency Translation Adjustments (no effect on Income Tax) | (1,944) |
| 1,843 |
Effect of NDF classified as hedges | (335) |
| 197 |
Tax Effect of NDF classified as hedges | 97 |
| (55) |
Not to be subsequently reclassified to profit or loss |
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Actuarial Results | 47 |
| 58 |
Tax Effect | (15) |
| (15) |
Other Comprehensive Income, net of Taxes | (2,150) |
| 2,028 |
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Total Comprehensive Income | (7,335) |
| 4,911 |
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Net Income attributable to: |
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Shareholders of the Controlling Company | (3,025) |
| (2,467) |
Non-Controlling Interest | (2,160) |
| 5,350 |
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Total Comprehensive Income (Loss) Attributable to: |
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Shareholders of the Controlling Company | (3,729) |
| (1,786) |
Non-Controlling Interest | (3,606) |
| 6,697 |
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Basic and Diluted Earnings per Share attributable to the Shareholders of the Controlling Company (in pesos) | (16.75) |
| (13.66) |
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2019 AND 2018
(in millions of Argentine pesos)
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ASSETS | December 31, 2019 |
| December 31, 2018 |
CURRENT ASSETS |
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Cash and Cash Equivalents | 27,063 |
| 11,470 |
Investments | 429 |
| 2,109 |
Trade Receivables | 16,965 |
| 26,790 |
Other Receivables | 4,614 |
| 7,892 |
Inventories | 3,212 |
| 4,210 |
Other Assets | - |
| 460 |
Total Current Assets | 52,283 |
| 52,931 |
NON-CURRENT ASSETS |
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Trade Receivables | 83 |
| 94 |
Other Receivables | 2,025 |
| 3,072 |
Deferred Income Tax Assets | 333 |
| 180 |
Investments | 2,123 |
| 8,607 |
Goodwill | 175,360 |
| 175,509 |
Property, Plant and Equipment ("PP&E") | 245,836 |
| 231,068 |
Intangible Assets | 82,376 |
| 91,234 |
Right-of-Use Assets | 9,444 |
| 873 |
Total Non-Current Assets | 517,580 |
| 510,637 |
Total Assets | 569,863 |
| 563,568 |
LIABILITIES |
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CURRENT LIABILITIES |
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Accounts Payable | 31,973 |
| 35,211 |
Financial Debt | 35,280 |
| 43,419 |
Salaries and Social Security Payables | 9,950 |
| 9,161 |
Taxes Payable | 3,313 |
| 3,615 |
Lease Liabilities | 2,639 |
| - |
Other Liabilities | 1,741 |
| 2,460 |
Provisions | 1,191 |
| 1,144 |
Total Current Liabilities | 86,087 |
| 95,010 |
NON-CURRENT LIABILITIES |
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Accounts Payable | 2,355 |
| 876 |
Financial Debt | 116,716 |
| 91,173 |
Salaries and Social Security Payables | 861 |
| 534 |
Deferred Income Tax Liabilities | 52,552 |
| 37,755 |
Taxes Payable | 14 |
| 40 |
Lease Liabilities | 3,672 |
| - |
Other Liabilities | 1,524 |
| 1,784 |
Provisions | 4,629 |
| 5,335 |
Total Non-Current Liabilities | 182,323 |
| 137,497 |
Total Liabilities | 268,410 |
| 232,507 |
EQUITY (as per the corresponding statement) |
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Attributable to Shareholders of the Parent Company | 125,051 |
| 128,820 |
Attributable to Non-Controlling Interests | 176,402 |
| 202,241 |
TOTAL EQUITY | 301,453 |
| 331,061 |
TOTAL LIABILITIES AND EQUITY | 569,863 |
| 563,568 |
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
(in millions of Argentine pesos)
| Equity attributable to Shareholders of the Parent Company |
| Equity Attributable to Non-Controlling Interests |
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| Shareholders' Contribution |
| Other Items |
| Retained Earnings | Total Equity of Controlling Interests |
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| Total Equity | |||||||
| Capital Stock (1) | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal |
| Other Comprehensive Income | Other Reserves |
| Legal Reserve | Voluntary Reserves | Retained Earnings |
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Balances as of January 1, 2018 | 181 | 6,175 | 14,948 | 21,304 |
| (1,737) | (12) |
| 212 | 10,464 | 21,238 | 51,469 |
| 25,404 |
| 76,873 |
Effect of Adopting New Accounting Policies | - | - | - | - |
| - | - |
| - | - | (153) | (153) |
| (112) |
| (265) |
Effect of the Merger (Note 4) | - | - | - | - |
| - | 79,513 |
| - | - | - | 79,513 |
| 197,626 |
| 277,139 |
Set-up of Reserves (Note 30.1) | - | - | - | - |
| - | - |
| - | 3,670 | (3,670) | - |
| - |
| - |
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | - |
| - | - | - | - |
| (27,022) |
| (27,022) |
Increase of the equity interest in CV Berazategui | - | - | - | - |
| - | (143) |
| - | - | - | (143) |
| (229) |
| (372) |
Changes in Other Reserves | - | - | - | - |
| - | (80) |
| - | - | - | (80) |
| (123) |
| (203) |
Net Income (Loss) for the Year | - | - | - | - |
| - | - |
| - | - | (2,467) | (2,467) |
| 5,350 |
| 2,883 |
Other Comprehensive Income | - | - | - | - |
| 681 | - |
| - | - | - | 681 |
| 1,347 |
| 2,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2018 | 181 | 6,175 | 14,948 | 21,304 |
| (1,056) | 79,278 |
| 212 | 14,134 | 14,948 | 128,820 |
| 202,241 |
| 331,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Set-up of Reserves (Note 30.1) | - | - | - | - |
| - | - |
| 1,058 | 88,686 | (89,744) | - |
| - |
| - |
Changes in Reserves | - | - | - | - |
| - | (9) |
| - | - | - | (9) |
| (15) |
| (24) |
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | - |
| - | - | - | - |
| (22,075) |
| (22,075) |
Acquisition of an equity interest in Tuves | - | - | - | - |
| - | 14 |
| - | - | - | 14 |
| (74) |
| (60) |
Irrevocable Call and Put Option on the Shares of AVC Continente Audiovisual | - | - | - | - |
| - | (45) |
| - | - | - | (45) |
| (69) |
| (114) |
Net Income (Loss) for the Year | - | - | - | - |
| - | - |
| - | - | (3,025) | (3,025) |
| (2,160) |
| (5,185) |
Other Comprehensive Income | - | - | - | - |
| (704) | - |
| - | - | - | (704) |
| (1,446) |
| (2,150) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2019 | 181 | 6,175 | 14,948 | 21,304 |
| (1,760) | 79,238 |
| 1,270 | (2) 102,820 | (77,821) | 125,051 |
| 176,402 |
| 301,453 |
(1) Includes 1,578 treasury shares. See Note 22.
(2) Broken down as follows: (i) Voluntary Reserve for Illiquid Results of $ 84,360, (ii) Voluntary Reserve for Financial Obligations of $ 18,460.
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
(in millions of Argentine pesos)
|
|
| |
| December 31, 2019 |
| December 31, 2018 |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
|
|
Net (Loss) / Income | (5,185) |
| 2,883 |
Adjustments to reconcile Net Income to net Cash flows provided by Operating Activities |
|
|
|
Allowances Deducted from Assets and Provisions for Lawsuits and Other Contingencies | 9,963 |
| 5,572 |
Depreciation of PP&E | 46,973 |
| 42,462 |
Amortization of Intangible Assets | 8,261 |
| 8,176 |
Amortization of Rights of Use | 3,479 |
| 150 |
Equity in Earnings from Associates | 187 |
| (363) |
Impairment of PP&E and Intangible Assets | 2,564 |
| 3,215 |
Net Book Value of PP&E and Consumption of Materials | 268 |
| 891 |
Financial Results and Other | 17,629 |
| 27,871 |
Accrued Income Tax and Tax on Assets | 14,216 |
| (4,340) |
Income Tax Paid | (1,764) |
| (9,135) |
Decrease (Increase) in Assets, Net | 3,882 |
| (7,930) |
Net Decrease in Liabilities | (18,870) |
| (4,732) |
Net Cash Flows provided by Operating Activities | 81,603 |
| 64,720 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
|
|
PP&E Acquisitions | (49,170) |
| (60,878) |
Intangible Assets Acquisition | (1,628) |
| (4471) |
Acquisition of Equity Interests | (61) |
| (375) |
Collection of Dividends | 185 |
| 86 |
Cash Incorporated under the Merger | - |
| 6,430 |
Income from Sale of PP&E and Intangible Assets | 102 |
| 9 |
Investments not considered as cash and cash equivalents | 7,285 |
| 11,072 |
Net Cash Flows used in Investing Activities | (43,287) |
| (48,127) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
|
|
Proceeds from Financial Debt | 58,507 |
| 42,719 |
Payment of Financial Debt | (50,282) |
| (29,694) |
Payment of Interest and Related Expenses | (8,990) |
| (6,850) |
Payment of Lease Liabilities | (3,626) |
| - |
Reversal of Reserve Account | 520 |
| 514 |
Payment of Cash Dividends to Non-Controlling Interests | (21,743) |
| (29,244) |
Net Cash Flows used in Financing Activities | (25,614) |
| (22,555) |
|
|
|
|
NET INCREASE / (DECREASE) IN CASH FLOW | 12,702 |
| (5,962) |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR: | 11,470 |
| 11,082 |
EFFECTS OF EXCHANGE RATE CHANGES AND GAIN (LOSS) ON NET MONETARY POSITION ON CASH AND CASH EQUIVALENTS | 2,891 |
| 6,350 |
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | 27,063 |
| 11,470 |