10 Nov 2017 07:00
Grupo Clarín Announces Third Quarter and Nine-Month 2017
Results
Buenos Aires, Argentina, November 9th, 2017 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its third quarter and nine-month 2017 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of September 30, 2017, and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (9M17 vs. 9M16):
§ Total Revenues reached Ps. 10,041.1 million, an increase of 26.8% compared to 9M16, mainly due to higher advertising and programming sales in the Broadcasting and Programming segment and, to a lesser extent, driven by higher circulation and advertising revenues in the Printing and Publishing segment.
§ Adjusted EBITDA (1) reached Ps. 818.8 million, an increase of 15.4% compared to 9M16, mainly driven by higher EBITDA in the Broadcasting and Programming segment, partially offset by higher severance payments in the Printing and Publishing segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) was 8.2% in 9M17, compared to 9.0% in 9M16.
§ Income for the period totaled Ps. 2,657.7 million, a decrease of 19.3% compared to Ps. 3,291.7 million reported in 9M16. Income for the period attributable to Equity Shareholders amounted Ps 1,708.8 million in 9M17 from Ps. 1,995.5 million in 9M16, a decrease of 14.4%.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 9M17 | 9M16 | % Ch. | 3Q17 | 2Q17 | 3Q16 | QoQ | YoY |
Total Revenues | 10,041.1 | 7,917.4 | 26.8% | 3,759.2 | 3,606.0 | 3,085.3 | 4.2% | 21.8% |
Adjusted EBITDA (1) | 818.8 | 709.9 | 15.4% | 517.4 | 388.5 | 327.7 | 33.2% | 57.9% |
Adjusted EBITDA Margin (2) | 8.2% | 9.0% | (9.0%) | 13.8% | 10.8% | 10.6% | 27.7% | 29.6% |
Income for the period | 2,657.7 | 3,291.7 | (19.3%) | 214.3 | 637.0 | 1,228.8 | (66.4%) | (82.6%) |
Attributable to: | ||||||||
Equity Shareholders | 1,708.8 | 1,995.5 | (14.4%) | 214.6 | 445.5 | 767.7 | (51.8%) | 72.1% |
Non-Controlling Interests | 949.0 | 1,296.2 | (26.8%) | (0.3) | 191.4 | 461.1 | (100.1%) | 100.1% |
(1) We define Adjusted EBITDA as Total Revenues minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted 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, Adjusted 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 Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Total Revenues.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Agustín Medina Manson Patricio Gentile | Alex Money
| Melanie Carpenter
|
Grupo Clarín S.A. | Jasford IR | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 3289 5300 | Tel: +1 212 406 3692 |
Email: investors@grupoclarin.com | E-mail: alexm@jasford.com | E-mail: clarin@i-advize.com
|
Total Revenues reached Ps. 10,041.1 million, an increase of 26.8% from Ps. 7,917.4 million in 9M16. Advertising revenues increased 25.6% and represented around 49% of the Total Revenues of the Company.
Following is a breakdown of Total Revenues by business segment:
REVENUES
(In millions of Ps.) | 9M17 | 9M16 | YoY | 3Q17 | 2Q17 | 3Q16 | QoQ | YoY |
Printing and Publishing | 4,704.3 | 4,120.6 | 14.2% | 1,746.7 | 1,578.1 | 1,511.9 | 10.7% | 15.5% |
Broadcasting and Programming | 4,683.7 | 3,285.3 | 42.6% | 1,797.8 | 1,819.2 | 1,370.5 | (1.2%) | 31.2% |
Digital Content and Others | 1,227.6 | 858.7 | 43.0% | 428.6 | 396.4 | 334.9 | 8.1% | 28.0% |
Subtotal | 10,615.6 | 8,264.6 | 28.4% | 3,973.2 | 3,793.8 | 3,217.4 | 4.7% | 23.5% |
Eliminations | (574.5) | (347.1) | 65.5% | (213.9) | (187.8) | (132.0) | 13.9% | 62.0% |
Total | 10,041.1 | 7,917.4 | 26.8% | 3,759.2 | 3,606.0 | 3,085.3 | 4.2% | 21.8% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 6,218.1 million, an increase of 30.7% from Ps. 4,758.1 million reported in 9M16 due to higher costs across all business segments, mainly in Broadcasting and Programming segment due to programming costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 3,004.1 million, an increase of 22.6% from Ps. 2,449.5 million in 9M16. This increase was mainly due to higher salaries costs across all business segments, mainly in Broadcasting and Programming and in Printing and Publishing.
Adjusted EBITDA reached Ps. 818.8 million, an increase of 15.4% from Ps. 709.9 million reported for 9M16. This result was driven by higher EBITDA and margin expansion in the Broadcasting and Programming segment, partially offset by negative EBITDA in in the Printing and Publishing segment, as result of the strategic cost reduction plan implemented.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 9M17 | 9M16 | YoY | 3Q17 | 2Q17 | 3Q16 | QoQ | YoY |
Printing and Publishing | (248.0) | (13.1) | (1,790%) | 21.5 | 10.8 | (9.2) | 99.6% | 333.7% |
Broadcasting and Programming | 1,164.4 | 777.0 | 49.9% | 535.2 | 414.8 | 371.4 | 29.0% | 44.1% |
Digital Content and Others | (97.5) | (54.0) | (80.5%) | (39.3) | (37.0) | (34.5) | (6.0%) | (13.8%) |
Total | 818.8
| 709.9
| 15.4%
| 517.4
| 388.5
| 327.7
| 33.2%
| 57.9%
|
Financial results net totaled Ps. (346.0) million compared to Ps. (255.4) million in 9M16. This increase of the negative result was mainly due to higher interest payments and the impact of the peso depreciation on higher dollar denominated debt.
Equity in earnings from unconsolidated affiliates in 9M17 totaled Ps. 104.6 million, compared to Ps. 38.7 million in 9M16.
Other Income (expenses), net reached Ps. 93.6 million, compared to Ps. 19.5 million in 9M16.
Income tax as of September 2017 reached Ps. (202.9) million, from Ps. (193.5) million in 9M16.
Income from Discontinued Operations, reached Ps. 2,366.6 million in 9M17 (four months of Cablevision's results are included), compared to Ps. 3,100.9 million in 9M16.
Income for the period totaled Ps. 2,657.7 million, a decrease of 19.3% from Ps. 3,291.7 million reported in 9M16. This was mainly a consequence of lower results of discontinued operations, four months of Cablevisión S.A.'s results were considered in 9M17, while in the same period of 2016, this line item reflected the results of nine months. The Equity Shareholders Income for the period amounted to Ps. 1,708.8 million, a decrease of 14.4% compared with September 2016.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 266.9 million in 2017, an increase of 13.0% from Ps. 236.1 million reported in 9M16. Out of the total CAPEX in 9M17, 73.6% was allocated towards the Broadcasting and Programming segment, 19.9% to the Printing and Publishing segment and the remaining 6.5% to other activities.
Debt profile (1): Debt coverage ratio for the period ended September 30th, 2017 was .6x and the Net Debt at the end of this period totaled Ps. 285.0 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2017
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 1,769.6 | 3,252.8 | 52.7 | (141.6) | 4,933.5 | 49.1% |
Circulation | 2,371.2 | - | - | - | 2,371.2 | 23.6% |
Printing | 149.9 | - | - | (3.2) | 146.7 | 1.5% |
Programming | - | 886.0 | - | - | 886.0 | 8.8% |
Other Sales
| 413.7 | 544.8 | 1,175.0 | (429.7) | 1,703.7 | 17.0% |
Total Sales | 4,704.3 | 4,683.7 | 1,227.6 | (574.5) | 10,041.1 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2016
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 1,639.0 | 2,322.2 | 67.8 | (100.8) | 3,928.2 | 49.6% |
Circulation | 2,089.5 | - | - | (8.5) | 2,081.0 | 26.3% |
Printing | 273.1 | - | - | (0.1) | 273.0 | 3.4% |
Programming | - | 414.1 | - | - | 414.1 | 5.2% |
Other Sales
| 119.0 | 549.1 | 790.8 | (237.8) | 1,221.1 | 15.4% |
Total Sales | 4,120.6 | 3,285.3 | 858.7 | (347.1) | 7,917.4 | 100.0% |
BROADCASTING AND PROGRAMMING
Revenues
Revenues increased by 42.6% to Ps. 4,683.7 million in 9M17, compared to Ps. 3,285.3 million in 9M16 due to the strong performance of Channel 13 and Radio Mitre. Advertising revenues increased 40.1% compared to the 9M16 period reflecting higher ratings in our TV and radio signals.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales increased by 45.5% to Ps. 2,715.4 million in 9M17, compared to Ps. 1,866.8 million in 9M16. This is mainly attributable to higher programming costs, salaries and co-production costs. The Company's efforts to produce superior content derived in higher revenues.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses increased by 25.3% to Ps. 804.0 million in 9M17, compared to Ps. 641.5 million in 9M16. The increase was primarily the result of higher salaries and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 41.8% to Ps. 65.3 million in 9M17 compared to Ps. 46.0 million reported in 9M16.
PRINTING AND PUBLISHING
Revenues
Total revenues increased by 14.2% to Ps. 4,704.3 million in 9M17, mainly as a result of higher sales in circulation and advertising.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales increased by 18.5% to Ps. 2,885.1 million in 9M17, compared to Ps. 2,434.8 million in 9M16. The increase was mainly the result of higher severance payments, printing and distribution costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses increased by 21.7% to Ps. 2,067.2 million in 9M17, compared to the Ps. 1,698.9 million reported in 9M16. This was primarily the result of higher salaries, distribution costs and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 38.5% to Ps. 87.2 million in 9M17 compared to Ps. 62.9 million in 9M16.
DIGITAL CONTENT AND OTHERS
Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gestión Compartida S.A. to third parties, as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content, e-commerce and the organization of trade fairs and exhibitions. Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.
In this period, total revenues increased 43.0% to Ps. 1,227.6, from Ps. 858.7 million reported in 9M16, due to higher sales in digital content, e-commerce, Gestión Compartida and revenues from trade fairs and exhibitions business. EBITDA resulted in Ps. (97.5) million.
OPERATING STATISTICS BY BUSINESS SEGMENT
PRINTING AND PUBLISHING
9M17 | 9M16 | YoY | 3Q17 | 2Q17 | 3Q16 | QoQ | YoY | |
Circulation (1) | 215.3 | 239.4 | (10.0%) | 217.6 | 216.7 | 233.7 | 0.4% | (6.9%) |
Circulation share % (2) | 39.4% | 40.6% | (3.0%) | 39.4% | 38.8% | 40.9% | 1.6% | (3.6%) |
Advertising share %(3) | 51.8% | 53.1% | (2.5%) | 53.8% | 49.9% | 53.0% | 8.0% | 1.6% |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: AGEA and IVC.
(3) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: Monitor de Medios Publicitarios S.A.
BROADCASTING AND PROGRAMMING
9M17 | 9M16 | YoY | 3Q17 | 2Q17 | 3Q16 | QoQ | YoY | |
Advertising Share % (1) | 38.7% | 39.5% | (2.0%) | 40.0% | 38.9% | 41.4% | 2.9% | (3.2%) |
Audience Share % (2) | ||||||||
Prime Time | 37.5% | 33.4% | 12.3% | 42.5% | 37.2% | 36.3% | 14.2% | 17.0% |
Total Time | 33.3% | 31.4% | 5.9% | 35.7% | 33.4% | 33.9% | 6.9% | 5.6% |
(1) Company estimate, over ad spend in Ps. In broadcast TV for AMBA region.
(2) Share of broadcast TV audience according to IBOPE for AMBA. PrimeTime is defined as Monday through Friday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12 pm to 12 am.
DIGITAL CONTENT AND OTHERS
9M17 | 9M16 | YoY | |
Page Views (1) | 1,003.2 | 898.1 | 11.7% |
Unique Visitors(1) | 65.9 | 63.7 | 3.5% |
(1)In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 2017 | September 2016 | % Change | June 2017 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 637.8 | 335.5 | 90.1% | 580.5 | 9.9% |
Financial loans | 218.3 | 116.4 | 87.5% | 196.5 | 11.1% |
Accrued interest | 13.7 | 3.5 | 294.3% | 8.3 | 63.9% |
Acquisition of equipment | 4.6 | 2.8 | 64.3% | 4.1 | 10.2% |
Sellers Financing Capital | 0.1 | 16.3 | (99.7%) | 13.0 | (99.6%) |
Related Parties Capital | - | 0.1 | (100.0%) | 1.2 | (100.0%) |
Bank overdraft | 401.2 | 196.5 | 104.2% | 357.4 | 12.3% |
Non-Current Financial Debt | 607.9 | 123.5 | 392.4% | 502.2 | 21.1% |
Financial loans | 592.1 | 108.2 | 447.3% | 486.2 | 21.8% |
Acquisition of equipment | 5.6 | 6.4 | (12.9%) | 6.3 | (11.9%) |
Related Parties Capital | 10.2 | 13.5 | (24.1%) | 9.6 | 6.2% |
Total Financial Debt (A) | 1,245.7 | 458.9 | 171.4% | 1,082.7 | 15.1% |
Total Short Term and Long Term Debt | 1,245.7 | 458.9 | 171.4% | 1,082.7 | 15.1% |
Cash and Cash Equivalents (B) | 960.7 | 536.8 | 79.0% | 656.4 | 46.4% |
Net Debt (A) - (B) | 285.0 | (77.9) | 465.8% | 426.4 | (33.1%) |
Net Debt/Adjusted Ebitda (1) | 0.14x | (0.06x) | (331.6%) | 0.27x | (49.8%) |
Total Financial Debt(1) and Net Debt, increased from Ps. 458.9 million to Ps. 1,245.7 million and from Ps. (77.9) million to Ps. 285.0 million respectively.
Debt coverage ratio (1) as of September 30th, 2017 was 0.14x in the case of Net Debt and of 0.6x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
STOCK AND MARKET INFORMATION
Grupo Clarín trades its stock in the Buenos Aires Stock Exchange (BCBA) and in the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.
GCLA (BCBA) Price per Share (ARS)
| 55.0 |
GCLA (LSE) Price per GDS (USD) | 6.1 |
Total Shares | 106,776,004 |
Total GDSs | 53,388,002 |
Market Value (USD MM) | 326 MM |
Closing Price | November 9th, 2017 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín S.A. will host a conference call and webcast presentation to discuss its results for the Third Quarter of 2017 on Friday, November 10, 2017.
Time: 12:00pm Buenos Aires Time/3:00pm London Time/10:00am New York Time.
Those interested in connecting via conference call are invited to please dial 1-800-311-9404 toll free from the U.S., 0-800-444-7657 from Argentina, or 1 (334) 323-7224 from elsewhere 5-10 minutes prior to the start time. The Conference ID is 9011.
To access the simultaneous webcast presentation, please direct your browser to:
https://www.webcaster4.com/Webcast/Page/1117/23274
There will be a replay available, for two weeks, starting one hour after the conclusion of the conference call. To access the replay, please dial 1-877-919-4059 toll free from the U.S., or 1-334-323-0140 from anywhere outside the U.S. The replay passcode is: 34908002
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com/ir prior to the call, on November 10th, and archived in our Website after its conclusion.
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in printing and publishing and broadcasting and programming markets. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers in Latin America. Grupo Clarín is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age.
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 Grupo Clarín. 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. Grupo Clarín 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 Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2017 AND 2016,AND FOR THE THREE-MONTH PERIODS BEGINNING JULY 1 AND ENDED
SEPTEMBER 30, 2017 AND 2016
In Argentine Pesos (Ps.)
September 30, 2017 | September 30, 2016 |
July 1, 2017 through September 30, 2017 |
July 1, 2016 through September 30, 2016 | ||||
Revenues | 10,041,080,306 | 7,917,444,360 | 3,759,245,606 | 3,085,325,216 | |||
Cost of Sales (1) | (6,356,749,462) | (4,858,758,670) | (2,232,900,669) | (1,865,700,701) | |||
Subtotal - Gross Profit | 3,684,330,844 | 3,058,685,690 | 1,526,344,937 | 1,219,624,515 | |||
Selling Expenses (1) | (1,523,280,466) | (1,219,398,367) | (544,741,749) | (465,059,243) | |||
Administrative Expenses (1) | (1,519,227,521) | (1,257,795,456) | (526,769,250) | (474,804,645) | |||
Other Income and Expenses, net | 93,631,617 | 19,478,034 | 33,307,057 | 5,588,893 | |||
Financial Costs | (180,870,581) | (172,826,431) | (75,735,971) | (55,047,742) | |||
Other Financial Results, net | (165,082,841) | (82,568,842) | (65,229,827) | (40,426,006) | |||
Financial Results | (345,953,422) | (255,395,273) | (140,965,798) | (95,473,748) | |||
Equity in Earnings from Affiliates and Subsidiaries | 104,566,858 | 38,666,583 | 20,733,683 | 8,306,404 | |||
Income before Income Tax and Tax on Assets | 494,067,910 | 384,241,211 | 367,908,880 | 198,182,176 | |||
Income Tax and Tax on Assets | (202,885,600) | (193,454,717) | (153,610,842) | (92,304,408) | |||
Income for the period from continuing operations | 291,182,310 | 190,786,494 | 214,298,038 | 105,877,768 | |||
Discontinued Operations | |||||||
Net Income from Discontinued Operations | 2,366,560,702 | 3,100,944,609 | - | 1,122,960,972 | |||
Net Income for the period | 2,657,743,012 | 3,291,731,103 | 214,298,038 | 1,228,838,740 | |||
Other Comprehensive Income | |||||||
Items which can be reclassified to net income | |||||||
Variation in Translation of Foreign Operations from Continuing Operations | 2,825,472 | 8,027,822 | 553,501 | 1,617,992 | |||
Variation in Translation of Foreign Operations from Discontinued Operations | (77,530,768) | 265,661,869 | - | 210,638,685 | |||
Other Comprehensive Income for the period | (74,705,296) | 273,689,691 | 553,501 | 212,256,677 | |||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 2,583,037,716 | 3,565,420,794 | 214,851,539 | 1,441,095,417 | |||
Profit Attributable to: | |||||||
Shareholders of the Parent Company | 1,708,753,540 | 1,995,483,835 | 214,579,500 | 767,730,540 | |||
Non-Controlling Interests | 948,989,472 | 1,296,247,268 | (281,462) | 461,108,200 | |||
Total Comprehensive Income Attributable to: | |||||||
Shareholders of the Parent Company | 1,679,658,216 | 2,143,591,764 | 215,847,777 | 866,389,459 | |||
Non-Controlling Interests | 903,379,500 | 1,421,829,030 | (996,238) | 574,705,958 | |||
Basic and Diluted Earnings per Share from Continuing Operations (See Note 11) | 1.62 | 0.68 | 2.01 | 0.38 | |||
Basic and Diluted Earnings per Share from Discontinued Operations (See Note 11) | 7.51 | 6.26 | - | 2.29 | |||
Basic and Diluted Earnings per Share - Total (See Note 11) | 9.13 | 6.94 | 2.01 | 2.67 | |||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 177,011,286 and Ps. 128,361,588 for the nine-month periods ended September 30, 2017 and 2016, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30th, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2017 AND DECEMBER 31, 2016
In Argentine Pesos (Ps.)
September 30, 2017 | December 31, 2016 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 928,156,906 | 780,775,774 | |
Intangible Assets | 234,141,832 | 221,713,090 | |
Goodwill | 270,923,529 | 270,923,529 | |
Deferred Tax Assets | 735,336,443 | 532,896,812 | |
Investments in Unconsolidated Affiliates | 411,429,196 | 368,314,257 | |
Other Investments | - | 7,412,878 | |
Inventories | 29,142,439 | 15,805,039 | |
Other Assets | 1,986,984 | 2,122,552 | |
Other Receivables | 183,623,629 | 159,206,993 | |
Trade Receivables | 100,576,851 | 99,857,137 | |
Total Non-Current Assets | 2,895,317,809 | 2,459,028,061 | |
CURRENT ASSETS | |||
Inventories | 675,511,923 | 901,013,829 | |
Other Assets | 39,381,947 | 11,838,743 | |
Other Receivables | 786,219,811 | 486,550,805 | |
Trade Receivables | 4,314,984,566 | 3,582,782,739 | |
Other Investments | 665,352,441 | 328,346,695 | |
Cash and Banks | 307,988,847 | 416,006,084 | |
Total Current Assets | 6,789,439,535 | 5,726,538,895 | |
Assets Held for Distribution to Shareholders | - | 28,082,220,838 | |
Total Assets | 9,684,757,344 | 36,267,787,794 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | |||
Shareholders' Contributions | 746,952,203 | 2,010,638,503 | |
Other Items | (24,073,851) | 755,638,189 | |
Accumulated Income | 3,487,854,055 | 6,860,110,364 | |
Total Attributable to Shareholders of the Parent Company | 4,210,732,407 | 9,626,387,056 | |
Attributable to Non-Controlling Interests | 35,527,773 | 4,416,373,963 | |
Total Shareholders' Equity | 4,246,260,180 | 14,042,761,019 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other Charges | 265,657,096 | 228,252,293 | |
Debt | 599,934,892 | 469,172,621 | |
Deferred Tax Liabilities | - | 209,849 | |
Taxes Payable | 57,823,631 | 59,188,405 | |
Other Liabilities | 58,515,477 | 61,662,068 | |
Trade Payables and Other | 52,426,964 | 27,347,968 | |
Total Non-Current Liabilities | 1,034,358,060 | 845,833,204 | |
CURRENT LIABILITIES | |||
Debt | 645,745,062 | 339,731,089 | |
Seller Financings | 50,000 | 14,256,467 | |
Taxes Payable | 356,414,393 | 296,868,894 | |
Other Liabilities | 410,083,119 | 508,464,913 | |
Trade Payables and Other | 2,991,846,530 | 2,958,209,807 | |
Total Current Liabilities | 4,404,139,104 | 4,117,531,170 | |
Liabilities Held for Distribution to Shareholders | - | 17,261,662,401 | |
Total Liabilities | 5,438,497,164 | 22,225,026,775 | |
Total Equity and Liabilities | 9,684,757,344 | 36,267,787,794 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2017 AND 2016
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | Equity Attributable to Non-Controlling Interests | ||||||||||||||||
Shareholders' Contributions | Other Items | Accumulated Income | Total Equity of Controlling Interests | ||||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves | Legal Reserve | Optional reserves (2) | Retained Earnings | Total Equity | ||||||||
Balances as of January 1st, 2017 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 814,523,312 | (58,885,123) | 119,460,767 | 4,210,607,765 | 2,530,041,832 | 9,626,387,056 | 4,416,373,963 | 14,042,761,019 | |||||
Set-up of reserves (Note 10.a.) | - | - | - | - | - | (3,941,711) | - | 2,050,041,832 | (2,050,041,832) | (3,941,711) | - | (3,941,711) | |||||
Dividend Distribution (Note 10.a.) | - | - | - | - | - | - | - | - | (480,000,000) | (480,000,000) | - | (480,000,000) | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (659,031,187) | (659,031,187) | |||||
Exchange of shares - Payment of fractions in cash (see Note 16 to the parent company only financial statements. | - | - | - | - | - | (407,728) | - | - | - | (407,728) | - | (407,728) | |||||
Net Income for the period | - | - | - | - | - | - | - | - | 1,708,753,540 | 1,708,753,540 | 948,989,472 | 2,657,743,012 | |||||
Spun-off Balances (See Note 13) | (180,642,580) | (194,762,882) | (888,280,838) | (1,263,686,300) | (749,470,539) | 3,203,262 | (75,081,092) | (3,691,570,698) | (834,358,059) | (6,610,963,426) | (4,625,194,503) | (11,236,157,929) | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation of Foreign Operations | - | - | - | - | (29,095,324) | - | - | - | - | (29,095,324) | (45,609,972) | (74,705,296) | |||||
Balances as of September 30, 2017 | (1) 106,776,004 | 115,122,371 | 525,053,828 | 746,952,203 | 35,957,449 | (60,031,300) | 44,379,675 | 2,569,078,899 | 874,395,481 | 4,210,732,407 | 35,527,773 | 4,246,260,180 | |||||
Balances as of January 1st, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 595,897,405 | (3,653,767) | 119,460,767 | 2,625,678,396 | 1,884,929,369 | 7,232,950,673 | 3,175,288,997 | 10,408,239,670 | |||||
Set-up of reserves | - | - | - | - | - | - | - | 1,584,929,369 | (1,584,929,369) | - | - | - | |||||
Dividend Distribution | - | - | - | - | - | - | - | - | (300,000,000) | (300,000,000) | - | (300,000,000) | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (615,331,023) | (615,331,023) | |||||
Net Income for the period | - | - | - | - | - | - | - | - | 1,995,483,835 | 1,995,483,835 | 1,296,247,268 | 3,291,731,103 | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation of Foreign Operations | - | - | - | - | 148,107,929 | - | - | - | - | 148,107,929 | 125,581,762 | 273,689,691 | |||||
Balances as of September 30, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 744,005,334 | (3,653,767) | 119,460,767 | 4,210,607,765 | 1,995,483,835 | 9,076,542,437 | 3,981,787,004 | 13,058,329,441 | |||||
(1) Includes 1,485 treasury shares. See Note 16 to the Parent Company Only Financial Statements.
(2) Broken down as follows: (i) Optional reserve for future dividends of Ps. 1,071,751,261; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756, (iii) Optional reserve for illiquidity of results of Ps. 257,959,160, (iv) Optional reserve to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of Ps. 462,249,181, and (v) Optional reserve to ensure the liquidity of the Company and its subsidiaries of Ps. 390,090,541.
September 30, 2017 | September 30, 2016 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Net Income for the period | 2,657,743,012 | 3,291,731,103 | ||
Income Tax and Tax on Assets | 202,885,600 | 193,454,717 | ||
Accrued Interest, net | 141,996,945 | 106,016,954 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 112,971,856 | 81,531,250 | ||
Amortization of Intangible Assets and Film Library | 64,039,430 | 46,830,338 | ||
Net allowances | 116,698,972 | 89,283,267 | ||
Financial Income, except interest | (3,208,414) | (55,736,422) | ||
Equity in Earnings from Affiliates and Subsidiaries | (104,566,858) | (38,666,583) | ||
Other Income and Expenses | (12,530,117) | (34,263,512) | ||
Net Income from Discontinued Operations | (2,366,560,702) | (3,100,944,609) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (906,197,873) | (658,702,227) | ||
Other Receivables | (687,810,843) | (130,028,093) | ||
Inventories | 208,847,317 | (340,834,871) | ||
Other Assets | (28,378,011) | 3,168,865 | ||
Trade Payables and Other | 186,547,312 | 371,864,979 | ||
Taxes Payable | 17,605,558 | (45,623,276) | ||
Other Liabilities | 380,124,821 | 267,820,744 | ||
| Provisions | (58,899,433) | (63,435,958) | |
| Income Tax and Tax on Assets Payments | (356,427,620) | (358,969,148) | |
| Net Cash Flows Provided by Discontinued Operating Activities | 3,398,556,976 | 6,626,367,640 | |
| ||||
| Net Cash Flows Provided by Operating Activities | 2,963,437,928 | 6,250,865,158 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (266,850,903) | (236,114,334) | |
| Acquisition of Intangible Assets | (69,694,692) | (121,628,457) | |
| Payments for Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates | - | (1,572,823) | |
| Dividends collected | 317,526,539 | 2,375,400 | |
| Proceeds from Sale of Property, Plant and Equipment | 20,941,886 | 35,680,366 | |
| Transactions with Securities, Bonds and Other Financial Instruments, Net | 18,821,493 | 2,359,421 | |
| Collections of Certificates of Deposit | - | 10,199,505 | |
| Net Cash Flows used in Discontinued Investment Activities | (3,185,408,150) | (8,205,592,681) | |
| ||||
| Net Cash Flows used in Investment Activities | (3,164,663,827) | (8,514,293,603) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans Obtained | 1,248,310,041 | 606,581,796 | |
| Repayment of Loans and Issue Expenses | (495,316,152) | (522,515,201) | |
| Payment of Interest | (143,687,591) | (107,286,037) | |
| Payment of Dividends | (480,000,000) | (300,000,000) | |
| Payments to Non-Controlling Interests, net | (11,828,620) | (11,916,721) | |
| Payment of fractions of shares in cash | (407,728) | - | |
| Collection of Derivatives | - | 59,303,370 | |
| Net Cash Flows (used in) / provided by Discontinued Financing Activities | (396,395,065) | 230,083,295 | |
| ||||
| Net Cash Flows used in Financing Activities | (279,325,115) | (45,749,498) | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR CONTINUING OPERATIONS | 56,223,555 | 68,630,182 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR DISCONTINUED OPERATIONS | 36,860,464 | 793,474,356 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 93,084,019 | 862,104,538 | |
| ||||
| Net decrease in cash flow | (387,466,995) |
| (1,447,073,405) |
| Cash and Cash Equivalents at the Beginning of the Year | 3,350,687,278 |
| 2,705,563,078 |
| Spun-off Balances of Cash and Cash Equivalents (See Note 14) | (2,002,522,766) |
| - |
| Effect of Consolidation of Companies | - |
| 2,052,951,267 |
| Cash and Cash Equivalents at the Closing of the Period (Note 2.4) | 960,697,517 |
| 3,311,440,940 |