12 Nov 2019 07:19
Cablevisión Holding Announces nine months and Third Quarter 2019 Results (9M19 and 3Q19)
Buenos Aires, Argentina, November 11, 2019 - 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), announced today its nine months and third 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 September 30, 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 (9M19 vs. 9M18):
§ Total Revenues reached Ps. 159,699 million, a decrease of 10.2% in real terms as of September 30, 2019, compared to 9M18, mainly driven by lower mobile and cable services revenues.
§ Total Costs (Excluding Depreciation and Amortization) reached Ps. 106,749 million, a decrease of 8.0% in constant currency, mainly driven by lower labor costs, taxes and fees, commissions and advertising, cost of handsets sold and programing and content costs.
§ EBITDA reached Ps. 52,950 million, a decrease of 14.4% in real terms compared to 9M18, mainly driven by lower revenues. EBITDA Margin was 33.2% in 9M19, compared to 34.8% in 9M18.
§ Consolidated Net Income totaled a loss of Ps. (15,109) million. Consolidated Net Income attributable to the Controlling Company amounted to Ps. (7,477) million.
FINANCIAL HIGHLIGHTS
(millions of Ps.in constant Currency as of September 30, 2019) | 9M19 | 9M18 | % Ch. | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY |
Total Revenues | 159,699 | 177,898 | (10.2%) | 53,106 | 52,010 | 57,444 | 2.1% | (7.6%) |
EBITDA (1) | 52,950 | 61,836 | (14.4%) | 17,306 | 17,887 | 18,839 | (3.2%) | (8.1%) |
EBITDA Margin (2) | 33.2% | 34.8% | (1.6%) | 32.6% | 34.4% | 32.8% | (1.8%) | (0.2%) |
Income for the period | (15,109) | (18,429) | (18.0%) | (22,231) | 6,264 | (18,210) | (454.9%) | (22.1%) |
Attributable to: |
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Equity Shareholders | (7,477) | (11,356) | 34.2% | (9,921) | 2,657 | (8,780) | (473.4%) | (13.0%) |
Non-Controlling Interests | (7,632) | (7,073) | (7.9%) | (12,310) | 3,606 | (9,430) | (441.3%) | (30.5%) |
(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. 159,699 million, a decrease of 10.2% compared to Ps. 177,898 million in 9M18, mainly driven by lower revenues from Mobile and Cable TV services in constant currency.
Following is a breakdown of Total Revenues:
(millions of Ps.in constant Currency as of September 30, 2019) | 9M19 | 9M18 | YoY | 9M19% of Total | 9M18% of Total |
Mobile Services | 54,829 | 61,857 | (11.4%) | 34.3% | 34.8% |
Internet Services | 35,859 | 40,003 | (10.4%) | 22.5% | 22.5% |
Cable TV Services | 33,390 | 38,283 | (12.8%) | 20.9% | 21.5% |
Fixed Telephony and Data Services | 25,021 | 23,297 | 7.4% | 15.7% | 13.1% |
Other revenues from services | 542 | 864 | (37.3%) | 0.3% | 0.5% |
Revenues From Services | 149,641 | 164,304 | (8.9%) | 93.7% | 92.4% |
Revenues From Equipment Sales | 10,058 | 13,594 | (26.0%) | 6.3% | 7.6% |
Total Revenues | 159,699 | 177,898 | (10.2%) | 100.0% | 100.0% |
Mobile Services Revenues decreased by 11.4% in real terms. This was mainly the results of the restatement effect as of September 30,2019, which was partially offset by the increase in the mobile plan prices.
In Argentina, Personal mobile subscriber amounted to 19 million and around 40% of them are postpaid. Thanks to the value proposition of Personal, the Company increased in more than 560 thousand and 490 clients comparing to the 2Q19 and the same period of 2019, respectively. Mobile internet revenues reached 76% of service revenues of Personal in Argentina (vs. 59% in 9M18). During the nine months of 2019, mobile ARPU was Ps. 281.1, resulting in an 8.3% lower ARPU restated in constant currency compared to 9M18. Revenues excluding revenues from equipment sales amounted to Ps 54,829 million.
As of September 30, 2019, Núcleo customer base reached more than 2.3 million subscribers, of which 17% are postpaid. Revenues from Núcleo services were Ps 7,304 million in 9M19, an increase of 10.6% compared to 9M18. Mobile internet revenues represented 50% of 9M19 service revenues (vs. 44% in 9M18).
Internet Services Revenues dropped 10.4% to Ps. 35,859 in 9M19, mainly due to the results of the restatement effect as of September 30, 2019. Of the 4.1 million broadband customers reached in 9M19, around 58% of them subscribed to services with speeds of 20Mb or higher, increasing from the participation registered in 9M18 (34%). Internet ARPU was Ps. 967.2 in 9M19, decreasing 11.2% compared to 9M18, mainly due to the restatement effect as of September 30, 2019. Monthly churn stood at 1.5% in 9M19.
Cable TV Services Revenues amounted to Ps. 33,390 million in 9M19, a decrease of 12.8% compared to 9M18. ARPU had a reduction in real terms (as of September 30, 2019) from Ps. 1,205.2 in 9M18 to Ps. 1065.7 in 9M19, a decrease of 11.6%. With the aim to continue offering to its customers the best entertainment experience, Telecom renewed Cablevisión Flow´s App. The development of this project was entirely in-house, thanks to a multi-disciplinary work team. The renewal of Flow App permitted to modernize its interface, optimize the navigation, improve the search engine and organize the selected contents for each client.
Fixed Telephony and Data Services Revenues reached Ps. 25,021 million in 9M19, an increase of 7.4% compared to 9M18. 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 3.1%, from Ps. 378.5 in 9M18 to Ps. 390.1 in 9M19.
Consolidated Operating Costs and Expenses (Excluding D&A and impairment of PP&E and intangible assets) totaled Ps. 106,749 million in 9M19, a decrease of Ps. 9,313 million, or 8.0% compared to 9M18. These lower operating costs and expenses were mainly due to lower cost of taxes and fees with the regulatory authority, commissions and advertising, cost of handsets sold, interconnection and transmission costs, programming costs and labor costs. More than 99.7% of the costs and expenses are related to Telecom Argentina operations.
EBITDA reached Ps. 52,950 million, a decrease of 14.4% from Ps. 61,835 million reported for 9M18, driven by lower revenues mainly in Mobile Services and Cable TV.
Depreciation, amortization and impairment of PP&E, intangible assets and rights-of-use amounted Ps. 38,812 million in 9M19, an increase of 14.8% compared to 9M18. The increase was due to the impact of the amortization of the incorporations after September 30, 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. (204) million in 9M19, compared to Ps. 209 million in 9M18.
Financial Results net totaled Ps. (16,500) million compared to Ps. (57,935) million in 9M18, as a result of a lower impact of the peso depreciation on dollar denominated debt: lower negative FX results (including results of NDF) measured in real terms in 9M19 for Ps. 9,807 million (due to a depreciation of the Argentine peso against the US dollar of 53% vs. an inflation of 38% during the same period), while negative FX results measured in real terms registered in 9M18 amounted to Ps. 57,130 million (due to a depreciation of the Argentine peso against the US dollar of 121% vs. an inflation of 32% during the same period). These results were partially offset by a lower inflation adjustment results.
Income tax as of September 2019 reached Ps. (12,543) million, from Ps. 11,257 million in September 2018.
Net Income for the period totaled a loss of Ps. (15,109) million, from Ps. (18,429) million reported for 9M18. This was mainly a consequence of lower peso depreciation and lower financial costs in 9M19. The Equity Shareholders Income for the period amounted to Ps. (7,477) million.
(millions of Ps.in constant Currency as of September 30, 2019) | 9M19 | 9M18 | YoY | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY | |
Consolidated Revenues | 159,699 | 177,898 | (10.2%) | 53,106 | 52,010 | 57,444 | 2.1% | (7.6%) | |
Employee benefit expenses and severance payments | (30,426) | (31,130) | (2.3%) | (10,072) | (9,530) | (10,353) | 5.7% | (2.7%) | |
Interconnection and Transmission Costs | (5,102) | (5,701) | (10.5%) | (1,742) | (1,555) | (1,943) | 12.1% | (10.3%) | |
Fees for Services, Maintenance, Materials and Supplies | (17,332) | (17,396) | (0.4%) | (6,262) | (5,475) | (6,262) | 14.4% | 0.0% | |
Taxes and Fees with the Regulatory Authority | (12,520) | (14,319) | (12.6%) | (4,060) | (4,170) | (4,505) | (2.6%) | (9.9%) | |
Commissions and Advertising | (9,538) | (11,312) | (15.7%) | (3,262) | (3,175) | (3,747) | 2.8% | (12.9%) | |
Cost of Equipment and Handsets | (7,495) | (10,162) | (26.2%) | (2,278) | (2,530) | (3,065) | (10.0%) | (25.7%) | |
Programming and Content Costs | (12,043) | (12,760) | (5.6%) | (4,008) | (3,831) | (4,259) | (4.6%) | 5.9% | |
Bad Debt Expenses | (4,348) | (3,553) | 22.4% | (1,352) | (1,209) | (1,165) | (11.8%) | (16.1%) | |
Other Operating Income and Expense | (7,945) | (9,729) | (18.3%) | (2,764) | (2,648) | (3,306) | 4.4% | (16.4%) | |
EBITDA1 | 52,950 | 61,836 | (14.4%) | 17,306 | 17,887 | 18,839 | (3.2%) | (8.1%) | |
EBITDA Margin2 | 33.2% | 34.8% | (1.6%) | 32.6% | 34.4% | 32.8% | (1.8%) | (0.21%) | |
Net Income | (15,109) | (18,429) | 18.0% | (22,231) | 6,264 | (18,210) | (454.9%) | (22.1%) | |
Attributable to: |
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Controlling Company | (7,477) | (11,356) | (34.2%) | (9,921) | 2,657 | (8,780) | (473.4%) | (13.0%) | |
Non-controlling interest | (7,632) | (7,073) | (7.9%) | (12,310) | 3,606 | (9,430) | (441.3%) | (30.5%) |
OPERATING STATISTICS BY BUSINESS SEGMENT
| 9M19 | 9M18 | YoY |
Mobile Services |
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Total Subscribers | 21,282 | 20,851 | (2.1%) |
Personal (Argentina) | 18,974 | 18,484 | (2.7%) |
Nucleo (Paraguay) | 2,308 | 2,368 | (2.5%) |
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Postpaid |
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Personal (Argentina) | 40% | 38% | 5.3% |
Nucleo (Paraguay) | 17% | 17% | - |
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ARPU Personal(2) | 281.1 | 306.5 | (8.3%) |
Churn | 2.1% | 2.7% | (23.5%) |
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Broadband Services |
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Subscribers | 4,144 | 4,133 | 0.3% |
Speeds >20Mb (% of subs) | 58% | 34% | 70.6% |
ARPU(2) | 967.2 | 1089.0 | (11.2%) |
Churn(4) | 1.5% | 1.3% | 11.2% |
Cable TV Services |
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Cable TV Subs | 3,515 | 3,564 | (1.4%) |
Argentina Subs | 3,291 | 3,345 | (1.6%) |
Uruguay Subs | 143 | 143 | - |
Paraguay Subs | 81 | 76 | 6.6% |
ARPU(2) | 1065.7 | 1205.2 | (11.6%) |
Churn(4) | 1.3% | 1.2% | 5.6% |
Fixed Line Services |
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Subscribers | 3,272 | 3,617 | (9.5%) |
ARBU(3) | 390.1 | 378.5 | 3.1% |
(1) Figures in thousands
(2) ARPU = Average Revenue per user (restated by inflation as of September 30, 2019)
(3) ARBU = Average Billing per user (restated by inflation as of September 30, 2019)
(4) Monthly Average Churn
CAPITAL EXPENDITURE (CAPEX)
During 9M19, our subsidiary, Telecom Argentina, invested Ps. 43,939 million, an increase of approximately 4.0% compared to 9M18. 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 27.5% of consolidated revenues in 9M19, compared to 23.7% in 9M18.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 2019 | December 2018 | % Change |
Short Term and Long-Term Debt |
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Current Financial Debt | 38,938 | 38,864 | 0.2% |
Bank overdraft | 7,358 | 3,134 | 134.8% |
Financial loans | 12,693 | 29,078 | (56.3%) |
Acquisition of equipment | 1,481 | 1,443 | 2.6% |
NDF | 178 | 138 | NA |
Accrued interest | 17,228 | 5,071 | 239.7% |
Non-Current Financial Debt | 115,473 | 81,609 | 41.5% |
Negotiable obligations | 38,344 | 25,929 | 47.9% |
Financial loans | 57,054 | 47,174 | 20.9% |
NDF | 23 | 0 | NA |
Acquisition of equipment | 2,420 | 1,420 | 70.4% |
Accrued interest | 17,632 | 7,086 | 148.8% |
Total Financial Debt (A) | 154,411 | 120,473 | 28.2% |
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Cash and Cash Equivalents (B) | 42,906 | 19,911 | 37,2% |
Net Debt (A) - (B) | 111,505 | 100,562 | (8,2%) |
Net Debt/Adjusted Ebitda (1) | 1,6x | 1,3x | 20,7% |
% USD Debt | 93,4% | 94,8% | (1.5%) |
% PYG Debt | 2,7% | 2,6% | 0.2% |
% ARS Debt | 3,9% | 2,6% | 1.3% |
Total Financial Debt(1) increased from Ps. 120,473 million to Ps. 154,411 million and Net Debt increased from Ps 100,562 to Ps. 111,505.
Debt coverage ratio (1) as of September 30, 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 Quarter Annualized EBITDA. Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
CVH Standalone Debt
(In millions of Ps.) | Sep 2019 | Dec 2018 | % change |
Short Term and Long-Term Debt |
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Current Financial Debt | 8,181 | 11,265 | (27.4%)
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Financial loans | 8,170 | 11,280 | (27.6%) |
Accrued interest | 11 | 11 | - |
Measurement at fair Value
| 0 | (26) | N.A. |
Non-Current Financial Debt | 0 | 0 | - |
Financial loans | 0 | 0 | - |
Total Short Term and Long-Term Debt (A) | 8,181 | 11,265 | 27.4% |
Cash and Equivalents (B) (1) | 1,657 | 1,489 | 11.3% |
Net Debt (A)-(B) | 6,524 | 9,776 | (33.3%) |
(1) Includes Ps. 357 million and Ps. 412 million of Reserve Account as of September 19 and Dec 18, respectively.
On 28 October, 2019, the Company informed the Argentine Securities Commission and the Buenos Aires Stock Exchange that it had made a prepayment of the outstanding principal amount under the USD750,000,000 Loan with Citibank, N.A, Goldman Sachs Bank USA, the Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch and Itaú Unibanco S.A. Nassau Branch, pursuant to amendment dated on 20 March 2019, for the amount of USD 25,401,114.77.
As of today, the Loan has been totally paid and there is no debt at holding level.
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)
| 241.0 |
CVH or CVHSY Price per GDS (USD) | 3.2 |
Total Shares | 180,642,580 |
Total GDSs | 180,642,580 |
Market Value (USD MM) | 583.5 |
Closing Price | November 11, 2019
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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 Third Quarter 2019 Results
Date: Wednesday, November 13, 2019
Time: 12:00pm Buenos Aires Time/10:00am 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 3Q19 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/cvhsy1911136CK23nUM.html
NOTE: Cablevisión Holding S.A. will release its Third Quarter 2019 Earnings Report on Monday, November 11, 2019 after the markets close.
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: 85288137
The webcast presentation will be archived at: https://www.cablevisionholding.com/Investors/Presentations
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.
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
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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018,
AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1 AND ENDING ON SEPTEMBER 30, 2019 AND 2018
(in millions of Argentine pesos)
| September 30, 2019 |
| September 30, 2018 |
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July 1, 2019 through September 30, 2019 |
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July 1, 2018 through September 30, 2018 |
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Revenues | 159,699 |
| 177,898 |
| 53,106 |
| 57,444 |
Employee benefit expenses and severance payments | (30,426) |
| (31,130) |
| (10,072) |
| (10,353) |
Interconnection and Transmission Costs | (5,102) |
| (5,701) |
| (1,742) |
| (1,943) |
Fees for Services, Maintenance, Materials and Supplies | (17,332) |
| (17,396) |
| (6,262) |
| (6,262) |
Taxes and Fees with the Regulatory Authority | (12,520) |
| (14,319) |
| (4,060) |
| (4,505) |
Commissions and Advertising | (9,538) |
| (11,312) |
| (3,262) |
| (3,747) |
Cost of Equipment and Handsets | (7,495) |
| (10,162) |
| (2,278) |
| (3,065) |
Programming and Content Costs | (12,043) |
| (12,760) |
| (4,008) |
| (4,259) |
Bad Debt Expenses | (4,348) |
| (3,553) |
| (1,352) |
| (1,165) |
Other Operating Income and Expense | (7,945) |
| (9,729) |
| (2,764) |
| (3,306) |
Operating Income before Depreciation and Amortization | 52,950 |
| 61,836 |
| 17,306 |
| 18,839 |
Depreciation, Amortization and Impairment of PP&E, Intangible Assets and Rights of Use. | (38,812) |
| (33,796) |
| (13,535) |
| (12,196) |
Operating Income | 14,138 |
| 28,040 |
| 3,771 |
| 6,643 |
Equity in Earnings from Associates | (204) |
| 209 |
| (390) |
| 11 |
Financial Expenses on Debts | (25,817) |
| (68,344) |
| (28,040) |
| (46,413) |
Other Financial Results, net | 9,317 |
| 10,409 |
| 6,398 |
| 14,397 |
Loss before Income Tax Expense | (2,566) |
| (29,686) |
| (18,261) |
| (25,362) |
Income Tax | (12,543) |
| 11,257 |
| (3,970) |
| 7,152 |
Net Loss | (15,109) |
| (18,429) |
| (22,231) |
| (18,210) |
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Other Comprehensive Income - to be subsequently reclassified to profit or loss |
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Currency Translation Adjustments (no effect on Income Tax) |
(495) |
| 3,874 |
|
1,668 |
| 1,872 |
Effect of NDF classified as hedges | (360) |
| 544 |
| (83) |
| 214 |
Tax Effect of NDF classified as hedges | 94 |
| (153) |
| 40 |
| (52) |
Other Comprehensive Income, net of Taxes | (761) |
| 4,265 |
| 1,625 |
| 2,034 |
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Total Comprehensive Income | (15,870) |
| (14,164) |
| (20,606) |
| (16,176) |
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Net Income attributable to: |
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Shareholders of the Controlling Company | (7,477) |
| (11,356) |
| (9,921) |
| (8,780) |
Non-Controlling Interest | (7,632) |
| (7,073) |
| (12,310) |
| (9,430) |
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Total Comprehensive Income (Loss) Attributable to: |
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Shareholders of the Controlling Company | (7,762) |
| (10,122) |
| (9,464) |
| (8,132) |
Non-Controlling Interest | (8,108) |
| (4,042) |
| (11,142) |
| (8,044) |
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Basic and Diluted Earnings per Share attributable to the Shareholders of the Controlling Company (in pesos) | (41.39) |
| (62.86) |
| (54.92) |
| (48.62) |
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018
(in millions of Argentine pesos)
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ASSETS | September 30, 2019 |
| December 31, 2018 |
CURRENT ASSETS |
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Cash and Cash Equivalents | 38,854 |
| 10,267 |
Investments | 1,251 |
| 1,888 |
Trade Receivables | 16,192 |
| 23,979 |
Other Receivables | 6,049 |
| 7,063 |
Inventories | 3,459 |
| 3,769 |
Other Assets | 357 |
| 412 |
Total Current Assets | 66,162 |
| 47,378 |
NON-CURRENT ASSETS |
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Trade Receivables | 101 |
| 84 |
Other Receivables | 1,986 |
| 2,750 |
Deferred Income Tax Assets | 171 |
| 161 |
Investments | 2,079 |
| 7,704 |
Goodwill | 157,047 |
| 157,098 |
Property, Plant and Equipment ("PP&E") | 215,165 |
| 206,826 |
Intangible Assets | 77,184 |
| 81,667 |
Right-of-Use Assets | 8,207 |
| 781 |
Total Non-Current Assets | 461,940 |
| 457,071 |
Total Assets | 528,102 |
| 504,449 |
LIABILITIES |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts Payable | 29,791 |
| 31,517 |
Financial Debt | 38,938 |
| 38,864 |
Salaries and Social Security Payables | 7,431 |
| 8,200 |
Taxes Payable | 2,525 |
| 3,236 |
Lease Liabilities | 2,829 |
| - |
Other Liabilities | 1,782 |
| 2,202 |
Provisions | 909 |
| 1,024 |
Total Current Liabilities | 84,205 |
| 85,043 |
NON-CURRENT LIABILITIES |
|
|
|
Accounts Payable | 1,725 |
| 785 |
Financial Debt | 115,473 |
| 81,609 |
Salaries and Social Security Payables | 609 |
| 478 |
Deferred Income Tax Liabilities | 46,008 |
| 33,793 |
Taxes Payable | 17 |
| 36 |
Lease Liabilities | 3,657 |
| - |
Other Liabilities | 1,355 |
| 1,597 |
Provisions | 4,247 |
| 4,775 |
Total Non-Current Liabilities | 173,091 |
| 123,073 |
Total Liabilities | 257,296 |
| 208,116 |
EQUITY (as per the corresponding statement) |
|
|
|
Attributable to Shareholders of the Parent Company | 107,516 |
| 115,307 |
Attributable to Non-Controlling Interests | 163,290 |
| 181,026 |
TOTAL EQUITY | 270,806 |
| 296,333 |
TOTAL LIABILITIES AND EQUITY | 528,102 |
| 504,449 |
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018
(in millions of Argentine pesos)
| Equity attributable to Shareholders of the Parent Company |
| Equity Attributable to Non-Controlling Interests |
|
| |||||||||||
| Shareholders' Contribution |
| Other Items |
| Retained Earnings | Total Equity of Controlling Interests |
|
| 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 |
|
| |||
Balances as of January 1, 2018 | 181 | 5,509 | 13,380 | 19,070 |
| (1,555) | (10) |
| 190 | 9,366 | 19,010 | 46,071 |
| 22,737 |
| 68,808 |
Effect of Adopting New Accounting Policies | - | - | - | - |
| - | - |
| - | - | (137) | (137) |
| (99) |
| (236) |
Effect of the Merger | - | - | - | - |
| - | 71,172 |
| - |
| - | 71,172 |
| 176,896 |
| 248,068 |
Set-up of Reserves | - | - | - | - |
| - | - |
| - | 3,285 | (3,285) | - |
| - |
| - |
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | - |
| - | - | - | - |
| (24,188) |
| (24,188) |
Changes in Other Reserves | - | - | - | - |
| - | (70) |
| - | - | - | (70) |
| (112) |
| (182) |
Net Income (Loss) for the Period | - | - | - | - |
| - | - |
| - | - | (11,356) | (11,356) |
| (7,073) |
| (18,429) |
Other Comprehensive Income | - | - | - | - |
| 1,234 | - |
| - | - | - | 1,234 |
| 3,031 |
| 4,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of September 30, 2018 | 181 | 5,509 | 13,380 | 19,070 |
| (321) | 71,092 |
| 190 | 12,651 | 4,232 | 106,914 |
| 171,192 |
| 278,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019 | 181 | 5,509 | 13,380 | 19,070 |
| (945) | 70,962 |
| 190 | 12,651 | 13,379 | 115,307 |
| 181,026 |
| 296,333 |
Set-up of Reserves (Note 26.1) | - | - | - | - |
| - | - |
| 948 | 79,382 | (80,330) | - |
| - |
| - |
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | - |
| - | - | - | - |
| (9,500) |
| (9,500) |
Acquisition of an equity interest in Tuves | - | - | - | - |
| - | 12 |
| - | - | - | 12 |
| (66) |
| (54) |
Irrevocable Call and Put Option on the Shares of AVC Continente Audiovisual | - | - | - | - |
| - | (41) |
| - | - | - | (41) |
| (62) |
| (103) |
Net Income (Loss) for the Period | - | - | - | - |
| - | - |
| - | - | (7,477) | (7,477) |
| (7,632) |
| (15,109) |
Other Comprehensive Income | - | - | - | - |
| (285) | - |
| - | - | - | (285) |
| (476) |
| (761) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of September 30, 2019 | 181 | 5,509 | 13,380 | 19,070 |
| (1,230) | 70,933 |
| 1,138 | (2) 92,033 | (74,428) | 107,516 |
| 163,290 |
| 270,806 |
(1) Includes 1,578 treasury shares. See Note 20.
(2) Broken down as follows: (i) Voluntary Reserve for Illiquid Results of $ 75,510, (ii) Voluntary Reserve for Financial Obligations of $ 16,523.
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018
(in millions of Argentine pesos)
|
|
| |
| September 30, 2019 |
| September 30, 2018 |
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
|
|
Net Loss | (15,109) |
| (18,429) |
Adjustments to reconcile Net Income to net Cash flows provided by Operating Activities |
|
|
|
Allowances Deducted from Assets and Provisions for Lawsuits and Other Contingencies | 7,059 |
| 3,628 |
Depreciation of PP&E | 30,946 |
| 27,701 |
Amortization of Intangible Assets | 5,648 |
| 5,566 |
Amortization of Rights of Use | 2,195 |
| 73 |
Equity in Earnings from Associates | 204 |
| (209) |
Impairment of PP&E | 23 |
| 456 |
Net Book Value of PP&E | 97 |
| 984 |
Financial Results and Other | 24,322 |
| 54,244 |
Income Tax Expense | 12,543 |
| (11,257) |
Income Tax Paid | (1,352) |
| (8,937) |
Decrease (Increase) in Assets, Net | 2,175 |
| (5,573) |
Net Decrease in Liabilities | (13,222) |
| (9,237) |
Net Cash Flows provided by Operating Activities | 55,529 |
| 39,010 |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
|
|
PP&E Acquisitions | (31,154) |
| (30,629) |
Intangible Assets Acquisition | (1,111) |
| (3,528) |
Acquisition of an equity interest in Tuves | (54) |
| - |
Acquisition of an equity interest in CV Berazategui | - |
| (324) |
Collection of Dividends | 147 |
| 68 |
Cash Incorporated under the Merger | - |
| 5,658 |
Income from Sale of PP&E and Intangible Assets | 1 |
| 57 |
Investments not considered as cash and cash equivalents | 4,344 |
| 3,694 |
Net Cash Flows used in Investing Activities | (27,827) |
| (25,004) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
|
|
Proceeds from Financial Debt | 48,402 |
| 42,384 |
Payment of Financial Debt | (31,145) |
| (24,889) |
Payment of Interest and Related Expenses | (6,558) |
| (4,293) |
Payment of Lease Liabilities | (1,755) |
| - |
Decrease in the Reserve Account | 108 |
| 497 |
Payment of Cash Dividends to Non-Controlling Interests | (9,257) |
| (26,030) |
Net Cash Flows used in Financing Activities | (205) |
| (12,331) |
|
|
|
|
NET INCREASE IN CASH FLOWS | 27,497 |
| 1,675 |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR: | 10,267 |
| 10,199 |
EFFECTS OF EXCHANGE RATE DIFFERENCES AND GAIN (LOSS) ON NET MONETARY POSITION ON CASH AND CASH EQUIVALENTS |
1,090 |
| 4,960 |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 38,854 |
| 16,834 |