11 Nov 2011 12:00
Grupo Clarín announces its
Results for the Nine Months (9M11) and Third Quarter of 2011 (3Q11)
Buenos Aires, Argentina, November 11th, 2011 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its nine months and third quarter results for 2011. Figures in this report have been prepared in accordance with Argentine GAAP as of September 30th, 2011 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (9M11 vs. 9M10):
§ Net Sales totaled Ps. 6,915.4 million, an increase of 25.7% from 9M10, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming and Printing and Publishing segments.
§ Adjusted EBITDA (1) reached Ps. 1,942.4 million, an increase of 11.1% from 9M10, mainly driven by higher sales in the Cable and Internet access segment.
§ Grupo Clarín's Adjusted EBITDA Margin(2) for 9M11 was 28.1%, compared to 31.8% in 9M10.
§ Net Income totaled Ps. 438.4 million, an increase of 15.0% from the Ps.381.1 million reported in 9M10.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 9M11 | 9M10 | % Ch. | 3Q11 | 2Q11 | 3Q10 | QoQ | YoY |
Net Sales | 6,915.4 | 5,502.1 | 25.7% | 2,484.6 | 2,357.4 | 1,986.0 | 5.4% | 25.1% |
Adjusted EBITDA (1) | 1,942.4 | 1,748.9 | 11.1% | 632.2 | 689.7 | 595.9 | (8.3%) | 6.1% |
Adjusted EBITDA Margin (2) | 28.1% | 31.8% | (11.6%) | 25.4% | 29.3% | 30.0% | (13.0%) | (15.2%) |
Net Income | 438.4 | 381.1 | 15.0% | 123.0 | 163.8 | 134.0 | (24.9%) | (8.2%) |
(1) We define Adjusted EBITDA as net sales 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 on the basis of 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. Because Adjusted EBITDA is not an Argentine GAAP measure, 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 Net Sales.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Alfredo Marín Agustín Medina Manson | Alex Money Helen Greenwood | Melanie Carpenter Pete Majeski |
Grupo Clarín S.A. | Temple Bar Advisory Ltd. | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 7002 1080 | Tel: +1 212 406 3692 |
Email: investors@grupoclarin.com | E-mail: info@templebaradvisory.com | E-mail: clarin@i-advize.com
|
Net sales reached Ps.6,915.4 million, an increase of 25.7% from Ps. 5,502.1 million in 9M10 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming, and Printing and Publishing segments.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 9M11 | 9M10 | YoY | 3Q11 | 2Q11 | 3Q10 | QoQ | YoY |
Cable TV and Internet Access | 4,456.1 | 3,562.1 | 25.1% | 1,540.1 | 1,495.9 | 1,281.9 | 3.0% | 20.1% |
Printing and Publishing | 1,573.3 | 1,296.7 | 21.3% | 583.7 | 537.9 | 447.9 | 8.5% | 30.3% |
Broadcasting and Programming | 1,055.3 | 774.7 | 36.2% | 418.3 | 387.3 | 301.6 | 8.0% | 38.7% |
Digital Content and Others | 209.3 | 168.0 | 24.6% | 70.5 | 75.9 | 59.2 | (7.0%) | 19.0% |
Subtotal | 7,294.0 | 5,801.5 | 25.7% | 2,612.6 | 2,496.9 | 2,090.7 | 4.6% | 25.0% |
Eliminations | (378.6) | (299.4) | 26.4% | (128.1) | (139.5) | (104.7) | (8.2%) | 22.3% |
Total | 6,915.4 | 5,502.1 | 25.7% | 2,484.6 | 2,357.4 | 1,986.0 | 5.4% | 25.1% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 3,363.1 million, an increase of 30.3% from Ps. 2,580.7 million reported for 9M10 due to higher costs in our business segments, mainly in Cable TV and Internet access and in Printing and Publishing.
Selling and Administrative Expenses(Excluding Depreciation and Amortization) reached Ps. 1,609.9 million, an increase of37.3% from Ps.1,172.5 million in 9M10. This increase was mainly due to higher costs in the Cable TV and Internet access, Printing and Publishing and Broadcasting and Programming segments.
Adjusted EBITDA reached Ps.1,942.4 million, an increase of 11.1% from Ps. 1,748.9 million reported for9M10, driven by higher sales in the Cable TV and Internet access and Broadcasting and Programming segments, and mainly due to margin expansion in Broadcasting and Programming segment; although was partially offset by a lower EBITDA in the Printing and Publishing segment.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 9M11 | 9M10 | YoY | 3Q11 | 2Q11 | 3Q10 | QoQ | YoY |
Cable TV and Internet access | 1,527.0 | 1,391.2 | 9.8% | 464.5 | 522.5 | 473.6 | (11.1%) | (1.9%) |
Printing and Publishing | 183.2 | 223.3 | (17.9%) | 72.5 | 65.4 | 65.1 | 10.9% | 11.5% |
Broadcasting and Programming | 223.2 | 131.1 | 70.3% | 97.1 | 96.9 | 58.0 | 0.3% | 67.5% |
Digital Content and Others | 8.9 | 3.4 | 160.7% | -1.9 | 4.9 | -0.7 | (139.4%) | (160.2%) |
Subtotal | 1,942.4 | 1,748.9 | 11.1% | 632.2 | 689.7 | 595.9 | (8.3%) | 6.1% |
Eliminations | - | - | NA | - | - | - | NA | NA |
Total | 1,942.4 | 1,748.9 | 11.1% | 632.2 | 689.7 | 595.9 | (8.3%) | 6.1% |
Financial results nettotaled Ps.(396.9) million compared to Ps. (335.6) million for 9M10. The increase was mainly due to higher interest expenses and the peso depreciation during 9M11, which went from Ps 3.98 per dollar at the end of 2010 to Ps 4.21 per dollar as of September 30th, 2011; and partially offset by an accounting gain accrued as a result of Cablevision refinancing debt.
Equity in earnings from unconsolidated affiliates in 9M11 totaled Ps. 8.5 million, compared to Ps. 0.5 million for 9M10.
Other income (expense), netreached Ps.10.3 million, compared to Ps. (4.6) million in 9M10.
Income tax as of September 2011 reached Ps. (365.1) million, from Ps. (361.5) million in September 2010.
Net income totaled Ps.438.4 million, an increase of15.0% from Ps.381.1 million reported for 9M10. This was mainlya consequence of higher EBITDA in the Cable TV and Internet access and Broadcasting and Programming segments, and was partially offset by a lower EBITDA in the Printing and Publishing segment and the peso depreciation.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 1,052.1 million in 9M11, an increase of 44.8% from Ps. 726.4 million reported for9M10. Out of the total CAPEX in 9M11, 92.2% was allocated to the Cable TV and Internet access segment, 4.9% to the Broadcasting and Programming segment and the remaining 2.9% to other activities. Capex in the Cable TV and Internet Access segment pertains to subscriber growth, network upgrades, digitalization and further development of the triple play strategy.
Debt profile (1): Debt coverage ratio for the period ended September 30th, 2011 was 1.24x and the Net Debt at the end of this period totaled Ps. 2,210.3 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (last 12 months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. The Net Debt does not include cash in reserve accounts in Cablevisión S.A.
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2011
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 58.9 | 826.9 | 662.7 | 20.5 | (94.6) | 1,474.4 | 21.3% |
Circulation | - | 503.2 | - | - | - | 503.2 | 7.3% |
Printing | - | 189.7 | - | - | (26.1) | 163.5 | 2.4% |
Video Subscriptions | 3,283.0 | - | - | - | - | 3,283.0 | 47.5% |
Internet Subscriptions | 978.8 | - | - | - | (2.5) | 976.3 | 14.1% |
Programming | - | - | 301.5 | - | (114.4) | 187.1 | 2.7% |
Other Sales
| 135.3 | 53.5 | 91.1 | 188.9 | (141.0) | 327.8 | 4.7% |
Total Sales | 4,456.1 | 1,573.3 | 1,055.3 | 209.3 | (378.6) | 6,915.4 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2010
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 35.8 | 706.3 | 464.2 | 46.4 | (79.2) | 1,173.6 | 21.3% |
Circulation | - | 398.3 | - | - | - | 398.3 | 7.2% |
Printing | - | 132.9 | - | - | (23.6) | 109.3 | 2.0% |
Video Subscriptions | 2,651.1 | - | - | - | - | 2,651.1 | 48.2% |
Internet Subscriptions | 754.8 | - | - | - | (1.8) | 753.1 | 13.7% |
Programming | - | - | 240.5 | - | (78.0) | 162.4 | 3.0% |
Other Sales
| 120.3 | 59.1 | 70.0 | 121.6 | (116.8) | 254.3 | 4.6% |
Total Sales | 3,562.1 | 1,296.7 | 774.7 | 168.0 | (299.4) | 5,502.1 | 100.0% |
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 25.1% to Ps.4,456.1 million for 9M11compared to Ps. 3,562.1 million for 9M10. The increase is mostly attributable to an increase in subscription charges registered during the last twelve months, and also reflects the growth in Cable, Broadband and Digital subscribers. Total Consolidated Cable TV basic subscribers reached 3,476,757 as of September 2011, compared to the 3,350,800 reported for the same date in 2010. Internet subscribers reached 1,293,321 in September 2011, compared to the 1,102,189 of September 2010.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 31.4% to Ps.1,889.7 million for September 2011, compared to Ps. 1,438.0 million in September 2010. This was mainly due to higher programming costs, salaries and network expenses and fixed assets maintenance costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 41.8% to Ps.1,039.4 million for 9M11, compared to Ps. 732.9 million reported in 9M10. This increase is driven by higher fees for services, salaries, marketing expenses and taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 23.6% to Ps. 461.6 million for 9M11 from Ps. 373.4 million reported in 9M10.
PRINTING AND PUBLISHING
Net Sales
Net sales increased by 21.3% to Ps.1,573.3 million in 9M11, compared to Ps. 1,296.7 million in 9M10. This was the result of higher sales in advertising, circulation and printing services.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 31.2% to Ps. 907.8 million in 9M11, compared to Ps. 691.9 million in 9M10. The increase was mainly the result of higher salaries and printing costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 26.4% to Ps. 482.3 million in 9M11, compared to the Ps. 381.5 million reported for 9M10. This was primarily the result of higher salaries, marketing expenses and fees.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 8.9% to Ps. 42.0 million in 9M11 compared to Ps. 46.1 million in 9M10.
We have discontinued the proportional consolidation of the 49% stake in Papel Prensa from April 1st, 2010.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 36.2% to Ps. 1,055.3 million in 9M11, compared to Ps. 774.7 million in 9M10. The increase was primarily the result of higher sales related to Canal Trece, sports programming and our racing car business.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 28.0% to Ps. 647.6 million in 9M11, compared to Ps. 505.8 million in 9M10. This is attributable mainly to higher salaries, fees and production costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 33.8% to Ps. 184.4 million in 9M11, compared to Ps. 137.8 million in 9M10. The increase was primarily the result of higher salaries and also affected by the reversal of allowances for doubtful accounts accounted for 2010.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 15.1% to Ps. 31.3 million in 9M11 compared to Ps. 27.2 million reported in 9M10.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our 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. Net sales to third parties are largely derived from advertising in our web pages and portals. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers.
In this period, net sales increased 24.6% to 209.3, from Ps. 168.0 million reported in 9M10, due to higher fees at Grupo Clarín, higher sales in digital content and Gestión Compartida. EBITDA resulted in Ps. 8.9 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
9M11 | 9M10 | YoY | 3Q11 | 2Q11 | 3Q10 | QoQ | YoY | |||||||||
Homes Passed (1) | 7,549.0 | 7,468.8 | 1.1% | 7,549.0 | 7,514.4 | 7,468.8 | 0.5% | 1.1% |
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Bidirectional Homes Passed | 62.0% | 58.2% | 6.6% | 62.0% | 60.9% | 58.2% | 1.8% | 6.6% |
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Cable TV |
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Total Consolidated Subscribers (1)(3) | 3,476.8 | 3,350.8 | 3.8% | 3,476.8 | 3,414.2 | 3,350.8 | 1.8% | 3.8% |
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Subscribers - Argentina | 3,252.4 | 3,144.7 | 3.4% | 3,252.4 | 3,194.8 | 3,144.7 | 1.8% | 3.4% |
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Subscribers - International | 224.3 | 206.2 | 8.8% | 224.3 | 219.4 | 206.2 | 2.3% | 8.8% |
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Uruguay | 109.4 | 102.0 | 7.3% | 109.4 | 106.9 | 102.0 | 2.4% | 7.3% |
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Paraguay | 114.9 | 104.1 | 10.3% | 114.9 | 112.4 | 104.1 | 2.2% | 10.3% |
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% over Homes Passed | 46.1% | 44.9% | 2.7% | 46.1% | 45.4% | 44.9% | 1.4% | 2.6% |
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Total Equity Subscribers(4) | 3,553.4 | 3,426.8 | 3.7% | 3,553.4 | 3,491.2 | 3,426.8 | 1.8% | 3.7% |
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Churn Rate % | 14.7% | 13.7% | 7.7% | 13.7% | 15.1% | 13.1% | (9.6%) | 4.4% |
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Digital Video |
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Digital Ready Pay TV Subs | 2,489.5 | 2,201.4 | 13.1% | 2,489.5 | 2,429.8 | 2,201.4 | 2.5% | 13.1% |
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Total Digital Decoders | 1,026.6 | 663.5 | 54.7% | 1,026.6 | 836.5 | 663.5 | 22.7% | 54.7% |
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Argentina | 828.4 | 557.4 | 48.6% | 828.4 | 708.3 | 557.4 | 17.0% | 48.6% |
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International | 198.2 | 106.0 | 87.0% | 198.2 | 128.2 | 106.0 | 54.6% | 87.0% |
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Penetration over Digital Ready TV Subs | 41.2% | 30.1% | 36.8% | 41.2% | 34.4% | 30.1% | 19.8% | 36.8% |
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Internet Subscribers |
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Total Internet Subscribers (1) | 1,293.3 | 1,102.2 | 17.3% | 1,293.3 | 1,219.6 | 1,102.2 | 6.0% | 17.3% |
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Cablemodem(1) | 1,273.1 | 1,074.5 | 18.5% | 1,273.1 | 1,197.2 | 1,074.5 | 6.3% | 18.5% |
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ADSL(1) | 12.09 | 17.8 | (32.2%) | 12.1 | 14.0 | 17.8 | (13.5%) | (32.2%) |
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Dial Up (1) | 8.1 | 9.8 | (17.0%) | 8.1 | 8.5 | 9.8 | (4.1%) | (17.0%) |
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% over Bidirectional Homes Passed | 27.6% | 25.4% | 8.9% | 27.6% | 26.6% | 25.4% | 3.7% | 8.9% |
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Total ARPU(2) | 144.9 | 121.0 | 19.8% | 149.0 | 146.9 | 128.3 | 1.4% | 16.2% |
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(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
9M11 | 9M10 | YoY | 3Q11 | 2Q11 | 3Q10 | QoQ | YoY | |
Circulation (1) | 336.7 | 364.8 | (7.7%) | 333.7 | 339.3 | 350.3 | (1.7%) | (4.7%) |
Circulation share % (2) | 40.2% | 43.7% | (7.9%) | 39.9% | 41.0% | 43.1% | (2.8%) | (7.6%) |
Advertising share %(3) | 54.2% | 54.9% | (1.2%) | 53.3% | 53.9% | 55.0% | (1.2%) | (3.2%) |
(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
9M11 | 9M10 | YoY | 3Q11 | 2Q11 | 3Q10 | QoQ | YoY | |
Advertising Share % (1) | 36.0% | 35.8% | 0.4% | 37.3% | 36.3% | 34.9% | 2.5% | 6.6% |
Audience Share % (2) | ||||||||
Prime Time | 41.3% | 40.8% | 1.3% | 43.0% | 42.0% | 45.6% | 2.5% | (5.6%) |
Total Time | 32.6% | 29.8% | 9.4% | 33.6% | 32.5% | 33.2% | 3.3% | 1.2% |
(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
9M11 | 9M10 | YoY | |
Page Views (1) | 608.0 | 541.5 | 12.3% |
Unique Visitors(1) | 25.2 | 20.7 | 21.7% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 11 | September 10 | % Change | June 11 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 294.6 | 407.5 | (27.7%) | 288.9 | 2.0% |
Financial loans | 52.2 | 56.4 | (7.4%) | 44.3 | 17.8% |
Negotiable obligations | 100.7 | 239.4 | (58.0%) | 39.0 | 158.2% |
Accrued interest | 41.2 | 67.9 | (39.3%) | 77.9 | (47.1%) |
Acquisition of equipment | 44.0 | 30.1 | 46.4% | 43.6 | 1.1% |
Sellers Financing Capital | 2.9 | 3.8 | (22.5%) | 3.5 | (17.4%) |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 8.1 | - | NA | 6.5 | 24.6% |
Related Parties accrued interest | 0.1 | 1.0 | (92.5%) | 0.6 | (87.6%) |
Bank overdraft | 45.5 | 8.8 | 415.5% | 73.5 | (38.1%) |
Non-Current Financial Debt | 2,865.2 | 2,275.3 | 25.9% | 2,785.6 | 2.9% |
Financial loans | 192.7 | 118.5 | 62.6% | 140.3 | 37.3% |
Negotiable obligations | 2,593.0 | 1,997.4 | 29.8% | 2,593.1 | (0.0%) |
Accrued interest | 1.7 | - | NA | 1.4 | 15.3% |
Acquisition of equipment | 74.0 | 31.2 | 137.0% | 47.3 | 56.5% |
Sellers Financing Capital | 1.0 | 120.1 | (99.1%) | 0.7 | 48.7% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 2.1 | 8.1 | (73.8%) | 2.1 | NA |
Related accrued interest | 0.7 | - | NA | 0.6 | 13.7% |
Total Financial Debt (A) | 3,159.9 | 2,682.8 | 17.8% | 3,074.5 | 2.8% |
Measurement at fair Value | (55.6) | 6.8 | (922.9%) | (53.1) | (4.6%) |
Total Short Term and Long Term Debt | 3,104.3 | 2,689.5 | 15.4% | 3,021.4 | 2.7% |
Cash and Cash Equivalents (B)* | 949.6 | 588.2 | 61.4% | 1,006.3 | (5.6%) |
Net Debt (A) - (B) | 2,210.3 | 2,094.6 | 5.5% | 2,068.2 | 6.9% |
Net Debt/Adjusted Ebitda (Last 12 Months) | 0.87x | 0.92x | (6.0%) | 0.82x | 5.3% |
% USD Debt | 93.4% | 94.1% | (0.8%) | 94.2% | (0.8%) |
% Ar. Ps Debt | 6.6% | 5.9% | 12.3% | 5.8% | 13.7% |
* Does not include cash in reserve accounts in Cablevisión S.A.
Total Financial Debt(1) and Net Debt, increased from Ps. 2,682.8 million to Ps. 3,159.9 million and increased from Ps. 2,094.6 million to Ps. 2,210.3 million respectively. This represents a Total Debt increase of 17.8% and a Net Debt rise of 5.5%.
Debt coverage ratio (1) as of September 30th, 2011 was 0.87x in the case of Net Debt and of 1.24x in terms of Total Financial Debt.
(1) Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (last 12 months).
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)
| 12.00 |
GCLA (LSE) Price per GDS (USD) | 5.00 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 718.5 |
Closing Price | November 10th, 2011 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its Third Quarter Results for 2011, on Friday, November 11th, 2011.
Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marin, Investor Relations Officer.
Time: 12:00 pm Buenos Aires Time/3:00 pm London Time/10:00 am New York Time.
To access the conference call, please dial: from within Argentina + 0 800 333 0050; from within the United Kingdom +44 (800) 092 3582; from within the United States +1 (800) 311 9401; and from all other countries +1 (334) 323 7224. The Conference ID is #6118.
To access the simultaneous webcast presentation, please direct your browser to:
http://www.grupoclarin.com/ir
A replay of the conference call will be available one hour after its conclusion, and will remain available for two weeks. To access the replay, please dial from the within the U.S. +1-877-919-4059, or from anywhere outside the U.S. +1-334-323-7226. The passcode is: 65206380. The webcast presentation will be archived at http://www.grupoclarin.com.ar/ir.
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on November 11th, and archived in our Website after its conclusion.
ABOUT THE COMPANY
About the Company
Grupo Clarín is the largest media company in Argentina and a leading company in the cable television and Internet access, printing and publishing, and broadcasting and programming markets. Its cable television network is one of the largest in Latin America in term of subscribers, and is a leading broadband provider in Argentina. 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.
CONSOLIDATED BALANCE SHEETS
As of September 30, 2011 and December 31, 2010
In Argentine Pesos (Ps.)
September 30, 2011 | December 31, 2010 | ||
ASSETS | |||
CURRENT ASSETS | |||
Cash and banks | 647,906,561 | 363,449,825 | |
Short-term investments | 301,647,092 | 277,247,561 | |
Trade receivables, net | 1,105,261,288 | 1,015,996,822 | |
Other receivables, net | 367,557,235 | 248,497,309 | |
Inventories | 625,037,125 | 289,139,219 | |
Other assets | 14,169,899 | 85,541,681 | |
Total Current Assets | 3,061,579,200 | 2,279,872,417 | |
NON-CURRENT ASSETS | |||
Trade receivables, net | 711,350 | 1,404,343 | |
Other receivables, net | 117,148,473 | 90,789,315 | |
Inventories | 45,978,693 | 30,047,212 | |
Investment in unconsolidated affiliates | 270,888,589 | 252,353,874 | |
Other investments | 1,043,699 | 1,117,346 | |
Property, plant and equipment, net | 3,451,333,428 | 2,827,844,624 | |
Intangible assets, net | 666,111,678 | 719,512,758 | |
Other assets | 13,129,770 | 13,098,995 | |
Subtotal | 4,566,345,680 | 3,936,168,467 | |
Goodwill | 2,753,086,017 | 2,731,985,120 | |
Total Non-Current Assets | 7,319,431,697 | 6,668,153,587 | |
Total Assets | 10,381,010,897 | 8,948,026,004 | |
LIABILITIES | |||
CURRENT LIABILITIES | |||
Accounts payable | 1,183,624,106 | 844,165,448 | |
Long-term debt | 293,707,155 | 264,268,493 | |
Salaries and Social Security payable | 446,865,276 | 389,830,493 | |
Taxes payable | 293,280,892 | 475,316,163 | |
Sellers financing | 2,929,786 | 3,796,354 | |
Other liabilities | 189,331,050 | 93,806,786 | |
Total Current Liabilities | 2,409,738,265 | 2,071,183,737 | |
NON-CURRENT LIABILITIES | |||
Accounts payable | 21,025,276 | 20,781,453 | |
Long-term debt | 2,806,666,887 | 2,129,893,236 | |
Salaries and Social Security payable | 2,008,497 | 233,346 | |
Taxes payable | 80,945,877 | 88,063,896 | |
Sellers financing | 1,038,519 | 1,127,017 | |
Other liabilities | 237,864,924 | 230,117,451 | |
Provisions | 172,319,098 | 155,378,087 | |
Total Non-Current Liabilities | 3,321,869,078 | 2,625,594,486 | |
Total Liabilities | 5,731,607,343 | 4,696,778,223 | |
MINORITY INTEREST | 975,594,177 | 922,359,837 | |
SHAREHOLDERS' EQUITY | 3,673,809,377 | 3,328,887,944 | |
Total Liabilities, Minority Interest and Shareholders' Equity | 10,381,010,897 | 8,948,026,004 |
CONSOLIDATED STATEMENTS OF OPERATIONS
As of September 30, 2011 and 2010
In Argentine Pesos (Ps.)
September 30, 2011 | September 30, 2010 | ||
Net sales | 6,915,373,489 | 5,502,089,679 | |
Cost of sales (excluding depreciation and amortization) | (3,363,080,393) | (2,580,702,323) | |
Subtotal | 3,552,293,096 | 2,921,387,356 | |
Expenses (excluding depreciation and amortization) | |||
Selling expenses | (777,905,494) | (530,994,419) | |
Administrative expenses | (832,027,578) | (641,461,327) | |
Expenses subtotal | (1,609,933,072) | (1,172,455,746) | |
Depreciation of property, plant and equipment (1) and other investments | (444,166,255) | (357,763,339) | |
Amortization of intangible assets, goodwill and other assets | (99,474,112) | (98,164,313) | |
Depreciation and amortization subtotal | (543,640,367) | (455,927,652) | |
Financing and holding results | |||
Generated by assets | |||
Interest | 14,230,008 | 12,166,758 | |
Other taxes and expenses | (102,210,570) | (72,535,110) | |
Impairment of inventories and materials | (4,171,457) | (2,228,013) | |
Exchange differences | 25,575,168 | 9,038,383 | |
Holding gains on inventories | 17,473,507 | 20,720,783 | |
Holding gains (losses) on derivatives | 2,231,136 | 5,617,152 | |
Effect of financial discounts on assets and other | (5,340,169) | (3,875,787) | |
Generated by liabilities | |||
Interest | (212,301,393) | (166,514,224) | |
Exchange differences | (161,164,145) | (110,786,909) | |
Effect of financial discounts on liabilities | (7,271,823) | (25,326,907) | |
CER restatement | (1,198,197) | (1,340,794) | |
Financial debt refinancing result | 41,021,843 | - | |
Holding losses on derivatives | (2,295,000) | (449,600) | |
Other | (1,489,762) | (132,017) | |
Equity in earnings from unconsolidated affiliates, net | 8,506,131 | 496,301 | |
Other income (expense), net | 10,344,780 | (4,559,374) | |
Income before income tax, tax on assets and minority interest | 1,020,659,714 | 953,294,600 | |
Income tax and tax on assets | (365,087,151) | (361,497,458) | |
Minority interest | (217,199,091) | (210,712,950) | |
Net Income for the period | 438,373,472 | 381,084,192 |
(1) Chargeable to:
Cost of sales | (390,276,012) | (313,204,646) |
Selling expenses | (30,575,492) | (25,322,884) |
Administrative expenses | (23,314,751) | (19,235,809) |
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30th, 2011, available at http://www.grupoclarin.com/ir
CONSOLIDATED STATEMENTS OF CASH FLOWs
As of September 30, 2011 and 2010
In Argentine Pesos (Ps.)
September 30, 2011 | September 30, 2010 | ||
CASH PROVIDED BY OPERATING ACTIVITIES | |||
Income for the period | 438,373,472 | 381,084,192 | |
Income tax and tax on assets | 365,087,151 | 361,497,458 | |
Accrued interest, net | 198,071,385 | 154,347,466 | |
Adjustments to reconcile net income for the period to cash provided by operating activities: | |||
Depreciation of property, plant and equipmentand other investments | 444,166,255 | 357,763,339 | |
Amortization of intangible assets, goodwill and other assets | 99,474,112 | 98,164,313 | |
Allowance for doubtful accounts | 26,902,643 | (2,730,895) | |
Provision for contingencies | 34,936,667 | 32,168,743 | |
Allowance for impairment of inventories and materials | 4,171,457 | 2,228,013 | |
Exchange difference and other financial results | 137,849,549 | 126,091,286 | |
Equity in earnings from unconsolidated affiliates, net | (8,506,131) | (496,301) | |
Minority interest | 217,199,091 | 210,712,950 | |
Holding (gains) losses on derivatives | 63,864 | (5,167,552) | |
Holding gains on inventories | (17,473,507) | (20,720,783) | |
Disposal of long-term investments | (6,657,315) | - | |
Results on sale of property, plant and equipment | (9,315,045) | 418,255 | |
Financial debt refinancing result | (41,021,843) | - | |
Changes in assets and liabilities: | |||
Trade receivables | (115,970,867) | (100,378,814) | |
Other receivables | (125,416,587) | (8,867,449) | |
Inventories | (338,768,050) | (33,081,985) | |
Other assets | (1,138,980) | (4,987,327) | |
Accounts payable | 330,569,816 | 163,363,918 | |
Salaries and Social Security payable | 58,808,199 | 37,556,358 | |
Taxes payable | (65,190,312) | (132,162,737) | |
Other liabilities | 3,102,327 | 37,280,954 | |
Provisions | (19,430,431) | (15,747,809) | |
Income tax and tax on assets payments | (514,882,891) | (323,463,368) | |
Cash provided by operating activities | 1,095,004,029 | 1,314,872,225 | |
CASH USED IN INVESTMENT ACTIVITIES | |||
Acquisition of property, plant and equipment, net | (1,052,054,620) | (718,156,548) | |
Acquisition of intangible assets | (44,070,894) | (15,429,913) | |
Capital contributions and acquisition of subsidiaries | (16,093,389) | - | |
Proceeds from sale of property, plant and equipment | 15,309,719 | 27,233 | |
Proceeds from the disposal of long-term investments | 14,470,615 | - | |
Collection of loans | - | 3,849,499 | |
Collection of dividends | 886,007 | 9,469,412 | |
Cash used in investment activities | (1,081,552,562) | (720,240,317) | |
CONSOLIDATED STATEMENTS OF CASH FLOWs
As of September 30, 2011 and 2010
In Argentine Pesos (Ps.)
September 30, 2011 | September 30, 2010 | ||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | |||
Loans obtained | 790,077,796 | 58,238,426 | |
Repayment of loans and issue expenses | (137,410,303) | (94,421,802) | |
Payment of interest | (174,503,675) | (39,020,913) | |
Collections (payments) of derivatives, net | 21,532,823 | (8,988,613) | |
Payment of sellers financing | (562,745) | (1,413,133) | |
Transfer (setup) of Reserve account / Escrow funds | 5,655,633 | (278,944,571) | |
Payment of dividends | (120,000,000) | - | |
Payments to minority shareholders, net | (104,850,733) | (72,875,900) | |
Cash provided by (used in) financing activities | 279,938,796 | (437,426,506) | |
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 26,392,900 | 14,120,135 | |
Net Increase in cash flow | 319,783,163 | 171,325,537 | |
Cash and cash equivalents at the beginning of the year | 629,423,258 | 459,135,441 | |
Effect of decrease in cash due to deconsolidation of companies | - | (42,633,400) | |
Cash and cash equivalents at period end (1) | 949,206,421 | 587,827,578 |
(1) Includes:
Cash and banks | 647,906,561 | 390,089,200 | |
Investments with maturities of less than three months | 301,299,860 | 197,738,378 |