19 Nov 2012 12:00
Grupo Clarín announces its
Results for the Nine Months (9M12) and Third Quarter of 2012 (3Q12)
Buenos Aires, Argentina, November 19th, 2012 - 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 2012. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of September 30th, 2012 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (9M12 vs. 9M11):
§Net Sales totaled Ps. 8,142.0 million, an increase of 23.2% from 9M11, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher sales in the Printing and Publishing segment.
§Adjusted EBITDA (1) reached Ps. 2,039.3 million, an increase of 11.5% from 9M11, mainly driven by higher sales in the Cable and Internet access segment.
§Grupo Clarín's Adjusted EBITDA Margin(2) for 9M12 was 25.0%, compared to 27.7% in 9M11.
§Net Income totaled Ps. 556.5 million, a decrease of 15.9% from the Ps. 661.3 million reported in 9M11, and the Net Income attributable to Equity Shareholders amount to Ps 315.4 million from Ps. 433.9 million, a decrease of 27.3%.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 9M12 | 9M11 | % Ch. | 3Q12 | 2Q12 | 3Q11 | QoQ | YoY |
Net Sales | 8,142.0 | 6,610.2 | 23.2% | 2,930.2 | 2,725.3 | 2,377.4 | 7.5% | 23.2% |
Adjusted EBITDA (1) | 2,039.3 | 1,828.2 | 11.5% | 711.8 | 706.8 | 595.6 | 0.7% | 19.5% |
Adjusted EBITDA Margin (2) | 25.0% | 27.7% | (9.4%) | 24.3% | 25.9% | 25.1% | (6.3%) | (3.0%) |
Net Income | 556.5 | 661.3 | (15.9%) | 156.3 | 195.4 | 172.6 | (20.0%) | (9.4%) |
Attributable to: | ||||||||
Equity Shareholders | 315.4 | 433.9 | (27.3%) | 89.1 | 107.7 | 117.2 | (17.3%) | (24.0%) |
Non-Controlling Interests | 241.0 | 227.4 | 6.0% | 67.2 | 87.7 | 55.4 | (23.4%) | 21.3% |
(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. 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.
(3) We define Net Income as Income for the period.
Net sales reached Ps.8,142.0 million, an increase of 23.2% from Ps. 6,610.2 million in 9M11, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher circulation and advertising sales in the Printing and Publishing segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 9M12 | 9M11 | YoY | 3Q12 | 2Q12 | 3Q11 | QoQ | YoY |
Cable TV and Internet Access | 5,510.3 | 4,297.7 | 28.2% | 1,946.1 | 1,825.0 | 1,488.1 | 6.6% | 30.8% |
Printing and Publishing | 1,721.8 | 1,511.1 | 13.9% | 597.4 | 577.8 | 562.5 | 3.4% | 6.2% |
Broadcasting and Programming | 981.0 | 880.6 | 11.4% | 417.1 | 344.9 | 358.7 | 20.9% | 16.3% |
Digital Content and Others | 266.0 | 220.2 | 20.8% | 92.0 | 83.3 | 70.6 | 10.5% | 30.2% |
Subtotal | 8,479.1 | 6,909.6 | 22.7% | 3,052.6 | 2,831.0 | 2,479.9 | 7.8% | 23.1% |
Eliminations | (337.2) | (299.4) | 12.6% | (122.4) | (105.6) | (102.5) | 15.9% | 19.5% |
Total | 8,142.0 | 6,610.2 | 23.2% | 2,930.2 | 2,725.3 | 2,377.4 | 7.5% | 23.2% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 4,130.4 million, an increase of 27.3% from Ps. 3,243.8 million reported for 9M11 due to higher costs in our business segments, mainly in Cable TV and Internet access and in Broadcasting and Programming segments.
Selling and Administrative Expenses(Excluding Depreciation and Amortization) reached Ps. 1,972.2 million, an increase of 28.2% from Ps. 1,538.1 million in 9M11. This increase was mainly due to higher costs in the Cable TV and Internet access and Printing and Publishing segments.
Adjusted EBITDA reached Ps.2,039.3 million, an increase of 11.5% from Ps. 1,828.2 million reported for9M11, driven by higher sales in the Cable TV and Internet access segment, though was partially offset by a lower EBITDA in the Broadcasting and Programming and Printing and Publishing segments.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 9M12 | 9M11 | YoY | 3Q12 | 2Q12 | 3Q11 | QoQ | YoY |
Cable TV and Internet access | 1,833.1 | 1,458.3 | 25.7% | 621.0 | 631.3 | 448.4 | (1.6%) | 38.5% |
Printing and Publishing | 157.5 | 180.1 | (12.5%) | 46.1 | 54.0 | 68.6 | (14.6%) | (32.8%) |
Broadcasting and Programming | 41.8 | 177.4 | (76.4%) | 45.2 | 23.6 | 81.5 | 91.7% | (44.6%) |
Digital Content and Others | 6.9 | 12.4 | (44.4%) | (0.5) | (2.1) | (2.9) | 74.5% | 82.2% |
Subtotal | 2,039.3 | 1,828.2 | 11.5% | 711.8 | 706.8 | 595.6 | 0.7% | 19.5% |
Eliminations | - | - | NA | - | - | - | NA | NA |
Total | 2,039.3 | 1,828.2 | 11.5% | 711.8 | 706.8 | 595.6 | 0.7% | 19.5% |
Financial results net totaled Ps. (592.8) million compared to Ps. (401.1) million for 9M11. The increase was mainly due to higher interest expenses and peso depreciation during 9M12, which went from Ps 4.30 per dollar at the end of December 2011, to Ps 4.70 per dollar as of September 30th, 2012.
Equity in earnings from unconsolidated affiliates in 9M12 totaled Ps. 18.4 million, compared to Ps. 35.1 million for 9M11.
Other income (expenses), netreached Ps.1.8 million, compared to Ps. 15.1 million in 9M11.
Income tax as of September 2012 reached Ps. (309.3) million, from Ps. (332.6) million in September 2011.
Income from discontinued operations, reached Ps. 50.0 million, compared to Ps. 43.7 million in 9M11.
Net income totaled Ps. 556.5 million, a decrease of 15.9% from Ps. 661.3 million reported for 9M11. This was mainly a consequence of higher interest expenses, the peso depreciation and a lower EBITDA in the Broadcasting and Programming and Printing and Publishing segments.The Equity Shareholders Net Income amounted to Ps. 315.4million, a decrease of 27.3% compared with September 2011.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 971.5 million in 9M12, a decrease of 7.1% from Ps. 1,046.0 million reported for 9M11. Out of the total CAPEX in 9M12, 93.9% was allocated to the Cable TV and Internet access segment, 3.5% to the Broadcasting and Programming segment and the remaining 2.6% 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, 2012 was 1.19x and the Net Debt at the end of this period totaled Ps. 2,382.9 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 2012
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 37.0 | 886.0 | 713.3 | 33.9 | (80.0) | 1,590.3 | 19.5% |
Circulation | - | 654.8 | - | - | - | 654.8 | 8.0% |
Printing | - | 118.2 | - | - | (31.2) | 87.0 | 1.1% |
Video Subscriptions | 4,143.4 | - | - | - | - | 4,143.4 | 50.9% |
Internet Subscriptions | 1,163.3 | - | - | - | (5.2) | 1,158.1 | 14.2% |
Programming | - | - | 174.1 | - | (51.3) | 122.8 | 1.5% |
Other Sales
| 166.6 | 62.8 | 93.5 | 232.1 | (169.5) | 385.5 | 4.7% |
Total Sales | 5,510.3 | 1,721.8 | 981.0 | 266.0 | (337.2) | 8,142.0 | 100.0% |
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 | 823.0 | 642.9 | 24.4 | (92.3) | 1,456.9 | 22.0% |
Circulation | - | 498.7 | - | - | (0.0) | 498.7 | 7.5% |
Printing | - | 142.9 | - | - | (25.1) | 117.7 | 1.8% |
Video Subscriptions | 3,124.6 | - | - | - | - | 3,124.6 | 47.3% |
Internet Subscriptions | 978.8 | - | - | - | (2.5) | 976.3 | 14.8% |
Programming | - | - | 157.9 | - | (38.5) | 119.4 | 1.8% |
Other Sales
| 135.3 | 46.6 | 79.8 | 195.8 | (141.0) | 316.5 | 4.8% |
Total Sales | 4,297.7 | 1,511.1 | 880.6 | 220.2 | (299.4) | 6,610.2 | 100.0% |
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 28.2%to Ps. 5,510.3 million for 9M12 compared to Ps. 4,297.7 million for 9M11. 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 3,544,765 as of September 2012, compared to the 3,476,757 reported for the same date in 2011. Internet subscribers reached 1,490,886 in September 2012, compared to the 1,293,321 of September 2011. (*)
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 29.7% to Ps. 2,383.2 million for September 2012, compared to Ps. 1,836.9 million in September 2011. This was mainly due to higher salaries, programming costs, cost of goods sold, network expenses and fixed assets maintenance costs.
(*) Total Consolidated Cable TV subscriber includes from discontinued operations in Paraguay 122,914 and 114,886 subs for the period ended in September 2012 and 2011 respectively, and 13,654 and 8,940 internet subscribers for the period ended in September 2012 and 2011 respectively.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 29.1% to Ps. 1,294.1 million for 9M12, compared to Ps. 1,002.4 million reported in 9M11. This increase is driven by higher salaries, fees for services, taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 26.7% to Ps. 571.5 million for 9M12 from Ps. 451.3 million reported in 9M11.
PRINTING AND PUBLISHING
Net Sales
The 13.9% increase of Net Sales to Ps. 1,721.8 million in 9M12 was the result of higher advertising and circulation sales, although it was partially offset by less printing services revenues.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 18.2% to Ps. 1,016.1 million in 9M12, compared to Ps. 859.4 million in 9M11. The increase was mainly the result of higher salaries and cost of the goods sold.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 16.2% to Ps. 548.2 million in 9M12, compared to the Ps. 471.6 million reported for 9M11. This was primarily the result of higher salaries, fees for services and taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 13.6% to Ps. 45.3 million in 9M12 compared to Ps. 39.9 million in 9M11.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 11.4% to Ps. 981.0 million in 9M12, compared to Ps. 880.6 million in 9M11. The increase was primarily the result of higher sales related to Canal Trece, partially offset by lower sales in programming content and in our racing car business.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 34.2% to Ps. 737.1 million in 9M12, compared to Ps. 549.2 million in 9M11. This is attributable mainly to higher salaries, production costs and fees to artists.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 31.2% to Ps. 202.1 million in 9M12, compared to Ps. 154.0 million in 9M11. The increase was primarily the result of higher salaries and fee for services.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 1.3% to Ps. 26.9 million in 9M12 compared to Ps. 27.2 million reported in 9M11.
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 and the organization of trade fairs and exhibitions. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers.
In this period, net sales increased 20.8% to 266.0, from Ps. 220.2 million reported in 9M11, due to higher fees at Grupo Clarín, higher sales in digital content, Gestión Compartida and trade fairs and exhibitions business. EBITDA resulted in Ps. 6.9 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
9M12 | 9M11 | YoY | 3Q12 | 2Q12 | 3Q11 | QoQ | YoY | |||||||||
Homes Passed (1) | 7,590.8 | 7,549.0 | 0.6% | 7,590.8 | 7,592.4 | 7,549.0 | (0.0%) | 0.6% |
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Bidirectional Homes Passed | 63.7% | 62.0% | 2.8% | 63.7% | 63.3% | 62.0% | 0.7% | 2.8% |
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Cable TV |
| |||||||||||||||
Total Consolidated Subscribers (1)(3) | 3,544.8 | 3,476.8 | 2.0% | 3,544.8 | 3,513.3 | 3,476.8 | 0.9% | 2.0% |
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Subscribers - Argentina | 3,305.6 | 3,252.4 | 1.6% | 3,305.6 | 3,279.6 | 3,252.4 | 0.8% | 1.6% |
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Subscribers - International | 239.1 | 224.3 | 6.6% | 239.1 | 233.7 | 224.3 | 2.3% | 6.6% |
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Uruguay | 116.2 | 109.4 | 6.2% | 116.2 | 114.0 | 109.4 | 2.0% | 6.2% |
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Paraguay | 122.9 | 114.9 | 7.0% | 122.9 | 119.7 | 114.9 | 2.7% | 7.0% |
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% over Homes Passed | 46.7% | 46.1% | 1.4% | 46.7% | 46.3% | 46.1% | 0.9% | 1.4% |
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Total Equity Subscribers(5) | 3,623.7 | 3,553.4 | 2.0% | 3,623.7 | 3,593.5 | 3,553.4 | 0.8% | 2.0% |
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Churn Rate % | 14.6% | 14.7% | (0.7%) | 13.4% | 14.2% | 13.7% | (5.8%) | (2.0%) |
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Digital Video (1)(3) |
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Digital Ready Pay TV Subs | 2,817.3 | 2,489.5 | 13.2% | 2,817.3 | 2,789.6 | 2,489.5 | 1.0% | 13.2% |
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Total Digital Decoders | 1,185.6 | 1,026.6 | 15.5% | 1,185.6 | 1,121.6 | 1,026.6 | 5.7% | 15.5% |
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Argentina | 944.4 | 828.4 | 14.0% | 944.4 | 894.5 | 828.4 | 5.6% | 14.0% |
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International | 241.2 | 198.2 | 21.7% | 241.2 | 227.1 | 198.2 | 6.2% | 21.7% |
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Penetration over Digital Ready TV Subs | 42.1% | 41.2% | 2.0% | 42.1% | 40.2% | 41.2% | 4.7% | 2.0% |
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Internet Subscribers(1)(3)(4) |
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Total Internet Subscribers (1) | 1,490.9 | 1,293.3 | 15.3% | 1,490.9 | 1,432.8 | 1,293.3 | 4.1% | 15.3% |
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Cablemodem(1) | 1,474.8 | 1,273.1 | 15.8% | 1,474.8 | 1,415.9 | 1,273.1 | 4.2% | 15.8% |
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ADSL(1) | 9.18 | 12.1 | (24.0%) | 9.2 | 9.8 | 12.1 | (6.1%) | (24.0%) |
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Dial Up (1) | 6.9 | 8.1 | (15.0%) | 6.9 | 7.1 | 8.1 | (2.7%) | (15.0%) |
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% over Bidirectional Homes Passed | 30.8% | 27.6% | 11.5% | 30.8% | 29.8% | 27.6% | 3.4% | 11.5% |
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Total ARPU(2) | 180.2 | 144.4 | 24.8% | 190.4 | 179.9 | 144.4 | 5.8% | 31.8% |
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(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers (does not include subscribers from discontinued operations in Paraguay).
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total Internet Subscribers includes from discontinued operations in Paraguay 13,654, 8,940 and 12,672 subs for periods 9M12, 9M11 and 6M12 respectively.
(5) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
9M12 | 9M11 | YoY | 3Q12 | 2Q12 | 3Q11 | QoQ | YoY | |
Circulation (1) | 314.9 | 336.7 | (6.4%) | 308.4 | 319.6 | 333.7 | (3.5%) | (7.6%) |
Circulation share % (2) | 38.6% | 40.2% | (3.9%) | 38.2% | 38.6% | 39.9% | (0.9%) | (4.1%) |
Advertising share %(3) | 50.6% | 54.2% | (6.6%) | 49.8% | 50.3% | 53.3% | (0.9%) | (6.5%) |
(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
9M12 | 9M11 | YoY | 3Q12 | 2Q12 | 3Q11 | QoQ | YoY | |
Advertising Share % (1) | 36.2% | 36.0% | 0.5% | 37.9% | 35.1% | 37.3% | 8.1% | 1.8% |
Audience Share % (2) | ||||||||
Prime Time | 36.5% | 41.3% | (11.8%) | 35.4% | 38.0% | 43.0% | (6.8%) | (17.6%) |
Total Time | 29.6% | 32.6% | (9.3%) | 28.8% | 30.3% | 33.6% | (4.9%) | (14.3%) |
(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
9M12 | 9M11 | YoY | |
Page Views (1) | 628.3 | 608.0 | 3.3% |
Unique Visitors(1) | 27.8 | 25.2 | 10.2% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 12 | September 11 | % Change | June 12 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 643.9 | 291.2 | 121.1% | 669.7 | (3.8%) |
Financial loans | 200.2 | 48.7 | 310.8% | 191.3 | 4.7% |
Negotiable obligations | 282.0 | 100.7 | 180.2% | 271.8 | 3.8% |
Accrued interest | 41.9 | 41.2 | 1.7% | 89.6 | (53.2%) |
Acquisition of equipment | 59.1 | 44.0 | 34.2% | 49.8 | 18.6% |
Sellers Financing Capital | 1.1 | 2.9 | (63.8%) | 2.0 | (47.5%) |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 3.4 | 8.1 | (58.0%) | 16.2 | (78.9%) |
Related Parties accrued interest | 0.0 | 0.1 | (70.2%) | 0.3 | (92.3%) |
Bank overdraft | 56.3 | 45.5 | 23.8% | 48.8 | 15.4% |
Non-Current Financial Debt | 2,752.2 | 2,850.6 | (3.5%) | 2,722.8 | 1.1% |
Financial loans | 36.2 | 176.9 | (79.5%) | 46.8 | (22.6%) |
Negotiable obligations | 2,588.8 | 2,593.0 | (0.2%) | 2,577.2 | 0.5% |
Accrued interest | - | 0.1 | (100.0%) | 0.1 | (100.0%) |
Acquisition of equipment | 121.2 | 74.0 | 63.6% | 92.6 | 30.8% |
Sellers Financing Capital | 0.3 | 1.0 | (69.8%) | 0.3 | 3.3% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 4.2 | 4.2 | - | 4.2 | - |
Related accrued interest | 1.4 | 1.3 | 4.4% | 1.5 | (8.5%) |
Total Financial Debt (A) | 3,396.1 | 3,159.9 | 7.5% | 3,392.4 | 0.1% |
Measurement at fair Value | (49.6) | (55.6) | 10.8% | (51.5) | (3.8%) |
Total Short Term and Long Term Debt | 3,346.5 | 3,104.3 | 7.8% | 3,340.9 | 0.2% |
Cash and Cash Equivalents (B) | 1,013.2 | 905.4 | 11.9% | 905.3 | 11.9% |
Net Debt (A) - (B) | 2,382.9 | 2,210.3 | 7.8% | 2,487.1 | (4.2%) |
Net Debt/Adjusted Ebitda (1) | 0.84x | 0.87x | (3.6%) | 0.88x | (4.9%) |
% USD Debt | 95.1% | 93.4% | 1.8% | 94.9% | 0.2% |
% Ar. Ps Debt | 4.9% | 6.6% | (26.0%) | 5.1% | (4.3%) |
Total Financial Debt(2) and Net Debt, increased from Ps. 3,159.9 million to Ps. 3,396.1 million and from Ps. 2,210.3 million to Ps. 2,382.9 million respectively. This represents an increase of 7.5% in the Total Debt and an increase of 7.8% in the Net Debt.
Debt coverage ratio (2) as of September 30th, 2012 was 0.84x in the case of Net Debt and of 1.19x in terms of Total Financial Debt.
(1) Last Quarter Annualized EBITDA.
(2) 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.
RELEVANT MATTERS
SALE OF PARAGUAY OPERATIONS
On 2 October 2012, Grupo Clarín S.A. (the "Company") disclosed additional information to the Argentine Securities Commission and the Buenos Aires Stock Exchange in connection with the sale of the operations of the current subsidiaries of Cablevisión S.A. ("Cablevisión") in the Republic of Paraguay to Telefónica Celular del Paraguay S.A., a subsidiary of Millicom International Cellular S.A. The Company informed that on 1 October 2012, the Parties formalized the closing of the transactions relating to the sale of the operations of the current subsidiaries of Cablevisión in the Republic of Paraguay to Telefónica Celular del Paraguay S.A.
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)
| 6.79 |
GCLA (LSE) Price per GDS (USD) | 2.49 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 357.8 |
Closing Price | November 16th, 2012 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its Third Quarter Results for 2012, on Monday, November 19th, 2012.
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: 55980658. 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 19th, and archived in our Website after its conclusion.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Alfredo Marín Agustín Medina Manson | Alex Money Clare Gallagher | 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
|
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.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2012 AND 2011,
AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1 AND ENDING ON SEPTEMBER 30, 2012 AND 2011
In Argentine Pesos (Ps.)
September 30, 2012 | September 30, 2011 | July 1, 2012 through September 30, 2012 | July 1, 2011 through September 30, 2011 | |||||
Continuing operations | ||||||||
Revenues | 8,141,957,229 | 6,610,191,164 | 2,930,159,950 | 2,377,424,681 | ||||
Cost of Sales (1) | (4,722,747,143) | (3,717,863,497) | (1,701,805,109) | (1,395,362,181) | ||||
Subtotal - Gross Profit | 3,419,210,086 | 2,892,327,667 | 1,228,354,841 | 982,062,500 | ||||
Selling Expenses (1) | (965,698,471) | (782,459,529) | (361,340,521) | (279,288,007) | ||||
Administrative Expenses (1) | (1,065,194,534) | (808,773,820) | (379,622,927) | (299,357,864) | ||||
Financial Income | 109,352,009 | 86,944,209 | 37,257,227 | 19,937,683 | ||||
Financial Costs | (702,114,101) | (488,065,653) | (282,635,098) | (190,019,428) | ||||
Other Income and Expense, net | 1,784,467 | 15,127,220 | (1,973,791) | 2,904,489 | ||||
Equity in Earnings from Affiliates and Subsidiaries | 18,423,945 | 35,129,138 | 2,615,502 | 13,447,104 | ||||
Income before Income Tax and Tax on Assets | 815,763,401 | 950,229,232 | 242,655,233 | 249,686,477 | ||||
Income Tax and Tax on Assets | (309,263,415) | (332,619,369) | (100,055,201) | (84,274,570) | ||||
Income for the period from continuing operations | 506,499,986 | 617,609,863 | 142,600,032 | 165,411,907 | ||||
Discontinued operations | ||||||||
Income from discontinued operations | 49,966,211 | 43,697,499 | 13,676,969 | 7,163,554 | ||||
Income for the period | 556,466,197 | 661,307,362 | 156,277,001 | 172,575,461 | ||||
Other Comprehensive Income | ||||||||
Variation in Translation Differences of Foreign Operations from continuing operations | 73,725,293 | 29,470,999 | 41,969,970 | (22,969,611) | ||||
Variation in Translation Differences of Foreign Operations from discontinued operations | 1,473,771 | 2,886,392 | 827,760 | (535,853) | ||||
Other Comprehensive Income for the period | 75,199,064 | 32,357,391 | 42,797,730 | (23,505,464) | ||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 631,665,261 | 693,664,753 | 199,074,731 | 149,069,997 | ||||
Profit Attributable to: | ||||||||
Shareholders of the Parent Company | 315,448,727 | 433,882,723 | 89,095,825 | 117,201,182 | ||||
Non-Controlling Interests | 241,017,470 | 227,424,639 | 67,181,176 | 55,374,279 | ||||
Total Comprehensive Income Attributable to: | ||||||||
Shareholders of the Parent Company | 351,123,695 | 450,383,304 | 108,924,624 | 108,936,037 | ||||
Non-Controlling Interests | 280,541,566 | 243,281,449 | 90,150,107 | 40,133,960 | ||||
Basic and Diluted Earnings per Share from continuing operations | 1.02 | 1.44 | 0.29 | 0.40 | ||||
Basic and Diluted Earnings per Share from discontinued operations | 0.08 | 0.07 | 0.02 | 0.01 | ||||
Basic and Diluted Earnings per Share - Total | 1.10 | 1.51 | 0.31 | 0.41 | ||||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount ofPs. 651,019,170 and Ps. 527,155,452 for nine-month periods ended September 30, 2012 and 2011, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30th, 2012, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2012, DECEMBER 31, 2011 AND JANUARY 1, 2011
In Argentine Pesos (Ps.)
September 30, 2012 | December 31, 2011 | January 1, 2011 | ||||
ASSETS | ||||||
NON-CURRENT ASSETS | ||||||
Property, Plant and Equipment | 3,904,824,062 | 3,665,276,048 | 2,822,810,673 | |||
Intangible Assets | 552,076,221 | 622,168,215 | 715,133,399 | |||
Goodwill | 2,749,746,885 | 2,739,655,126 | 2,700,177,279 | |||
Deferred Tax Assets | 65,783,095 | 34,471,919 | 27,151,922 | |||
Investment in Affiliates and Subsidiaries | 394,310,116 | 387,673,671 | 345,840,683 | |||
Other Investments | 2,646,820 | 109,855 | 177,403 | |||
Inventories | 14,761,819 | 13,139,000 | 21,340,016 | |||
Other Assets | 1,498,710 | 1,546,764 | 2,204,616 | |||
Other Receivables | 143,093,792 | 205,230,179 | 95,888,460 | |||
Trade Receivables | 113,733,508 | 122,595,188 | 1,102,833 | |||
Total Non-Current Assets | 7,942,475,028 | 7,791,865,965 | 6,731,827,284 | |||
CURRENT ASSETS | ||||||
Inventories | 407,484,795 | 371,180,023 | 252,092,555 | |||
Other Assets | 7,061,437 | 11,467,311 | 78,594,494 | |||
Other Receivables | 418,196,402 | 372,396,801 | 280,160,389 | |||
Trade Receivables | 1,431,938,390 | 1,224,589,935 | 954,007,800 | |||
Other Investments | 549,601,705 | 247,188,625 | 264,964,642 | |||
Cash and Banks | 463,598,915 | 629,155,403 | 332,257,837 | |||
Total Current Assets | 3,277,881,644 | 2,855,978,098 | 2,162,077,717 | |||
Assets held for sale | 250,269,121 | - | - | |||
Total Assets | 11,470,625,793 | 10,647,844,063 | 8,893,905,001 | |||
EQUITY (as per the corresponding statement) | ||||||
Attributable to Shareholders of the Parent Company | 3,850,265,802 | 3,634,142,107 | 3,203,295,205 | |||
Attributable to Non-Controlling Interests | 1,251,306,956 | 1,063,645,779 | 936,398,963 | |||
Total Shareholders' Equity | 5,101,572,758 | 4,697,787,886 | 4,139,694,168 | |||
LIABILITIES | ||||||
NON-CURRENT LIABILITIES | ||||||
Accruals and Other | 241,218,183 | 193,039,012 | 159,947,261 | |||
Long-Term Debt | 2,702,858,826 | 2,749,309,434 | 2,117,587,216 | |||
Sellers Financing | 313,330 | 816,853 | 1,127,017 | |||
Deferred Tax Liabilities | 154,078,513 | 182,336,021 | 219,731,774 | |||
Taxes Payable | 76,728,950 | 79,195,842 | 83,639,832 | |||
Other Liabilities | 90,352,208 | 104,354,485 | 89,429,579 | |||
Trade Payables and Other | 8,130,084 | 10,198,755 | 12,450,978 | |||
Total Non-Current Liabilities | 3,273,680,094 | 3,319,250,402 | 2,683,913,657 | |||
CURRENT LIABILITIES | ||||||
Long-Term Debt | 642,313,060 | 442,432,030 | 260,618,199 | |||
Sellers Financing | 1,059,659 | 8,178,434 | 3,796,354 | |||
Taxes Payable | 323,072,539 | 299,925,923 | 472,091,432 | |||
Other Liabilities | 225,769,903 | 148,728,234 | 127,596,292 | |||
Trade Payables and Other | 1,885,803,383 | 1,731,541,154 | 1,206,194,899 | |||
Total Current Liabilities | 3,078,018,544 | 2,630,805,775 | 2,070,297,176 | |||
Liabilities held for sale | 17,354,397 | - | - | |||
Total Liabilities | 6,369,053,035 | 5,950,056,177 | 4,754,210,833 | |||
Total Equity and Liabilities | 11,470,625,793 | 10,647,844,063 | 8,893,905,001 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2012 AND 2011
In Argentine Pesos (Ps.)
September 30, 2012 | September 30, 2011 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Income for the period | 556,466,197 | 661,307,362 | ||
Income Tax and Tax on Assets | 309,263,415 | 332,619,369 | ||
Accrued Interest, net | 199,644,279 | 195,899,448 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 545,074,773 | 425,809,971 | ||
Amortization of Intangible Assets and Film Library | 105,944,397 | 101,345,481 | ||
Net of allowances | 87,677,549 | 67,429,815 | ||
Financial Results | 322,294,384 | 124,094,841 | ||
Equity in Earnings from Affiliates and Subsidiaries | (18,423,945) | (35,129,138) | ||
Other Income and Expense | (3,110,925) | (56,985,487) | ||
Loss from discontinued operations | 32,461,124 | 27,300,528 | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (264,201,238) | (94,129,374) | ||
Other Receivables | 35,460,810 | (102,177,037) | ||
Inventories | (41,593,770) | (345,331,610) | ||
Other Assets | 5,558,202 | (1,029,069) | ||
Trade Payables and Other | 156,700,688 | 386,152,883 | ||
Taxes Payable | (93,220,435) | (67,192,631) | ||
Other Liabilities | 46,250,701 | (3,356,345) | ||
| Provisions | (26,060,473) | (19,028,507) | |
| Income Tax and Tax on Assets Payments | (272,251,991) | (514,882,891) | |
| ||||
| Net Cash Flows Provided by Operating Activities | 1,683,933,742 | 1,082,717,609 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (971,481,955) | (1,045,976,374) | |
| Acquisition of Intangible Assets | (31,773,693) | (43,680,822) | |
| Loans granted | (1,586,753) | - | |
| Acquisition of Subsidiaries, Net of Cash Acquired | (11,506,938) | (16,093,389) | |
| Proceeds from Sale of Property, Plant and Equipment | 3,121,715 | 15,301,003 | |
| Dividends collected | 624,990 | 886,007 | |
| Proceeds from the Disposal of Long-Term Investments | - | 14,470,615 | |
| Certificates of Deposit | (4,848,000) | - | |
| Collections of Certificates of Deposit | 15,363,727 | - | |
| ||||
| Net Cash Flows used in Investment Activities | (1,002,086,907) | (1,075,092,960) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Debts Obtained | 117,913,446 | 787,926,318 | |
| Repayment of Loans and Issuance Expenses | (184,090,190) | (131,273,969) | |
| Payment of Interest | (270,300,709) | (173,716,101) | |
| (Payments) collections on Derivatives, Net | (6,177,500) | 21,532,823 | |
| Payment of Sellers Financing | (6,666,392) | (562,745) | |
| Dividends paid | (118,854,787) | (120,000,000) | |
| (Setup) Transfer of Reserve Account / Escrow Funds | (6,520,985) | 5,655,633 | |
| Payments to Non-Controlling Interests, net | (92,004,628) | (104,850,733) | |
| ||||
| Net Cash Flows (used in) provided by Financing Activities | (566,701,745) | 284,711,226 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 41,482,873 | 26,775,774 | |
| ||||
| Net Increase in Cash Flow | 156,627,963 |
| 319,111,649 |
| Cash and Cash Equivalents at the Beginning of the Year | 865,580,054 |
| 585,948,351 |
| Effect of decrease in cash from disposal of businesses for sale | (12,960,031) |
| - |
| Cash and Cash Equivalents at the End of the Period | 1,009,247,986 |
| 905,060,000 |
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