7 Dec 2020 07:00
Grupo Clarín Announces its Nine Month and Third Quarter 2020 Results
Buenos Aires, Argentina, December 4, 2020 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its Nine month and Third quarter 2020 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") as of September 30, 2020 and are stated in Argentine Pesos ("Ps"), unless otherwise indicated.
(*) The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the financial statements.
Highlights (9M20 vs.9M19):
§ Total Revenues reached Ps. 16,874.6 million, a decrease of 28.7% compared to 9M19, mainly due to lower advertising revenues in all segments and lower circulation in the Printing and Publishing segment.
§ Adjusted EBITDA (1) reached Ps. 1,364.3 million, a decrease of 33.2% compared to 9M19, mainly driven by lower results in the Broadcasting and Programming segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) was 8.1% in 9M20, compared to 8.6% in 9M19.
§ Loss for the period totaled Ps. 883.8 million, compared to Ps. 979.8 million loss reported in 9M19. Loss for the period attributable to Equity Shareholders amounted Ps 708.7 million in 9M20.
FINANCIAL HIGHLIGHTS
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(In millions of Ps.) | 9M20 | 9M19 | % Ch. | 3Q20 | 2Q20 | 3Q19 | QoQ | YoY | ||||||||
Total Revenues | 16,874.6 | 23,665.7 | (28.7%) | 5,858.3 | 5,212.6 | 8,230.1 | 12.4% | (28.8%) | ||||||||
Adjusted EBITDA (1) | 1,364.3 | 2,041.4 | (33.2%) | 842.4 | 669.6 | 880.1 | 25.8% | (4.3%) | ||||||||
Adjusted EBITDA Margin (2) | 8.1% | 8.6% | (6.3%) | 14.4% | 12.8% | 10.7% | 11.9% | 34.5% | ||||||||
Income (Loss) for the period | (883.8) | (979.8) | (9.8%) | (477.3) | 305.6 | (624.8) | (256.2%) | (23.6%) | ||||||||
Attributable to: |
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Equity Shareholders | (708.7) | (865.9) | (18.2%) | (461.0) | 352.7 | (598.4) | (230.7%) | 23.0% | ||||||||
Non-Controlling Interests | (175.2) | (113.9) | 53.8% | (16.4) | (47.1) | (26.4) | (65.1%) | 37.7% | ||||||||
(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.
OPERATING RESULTS
Total Revenues reached Ps. 16,874.6 million, a decrease of 28.7% from Ps. 23,665.7 million in 9M19. Advertising revenues decreased 40.9% and represented around 37.4% of the Total Revenues of the Company. Circulation revenues decreased 22.4% and represented 29.4% of the Total.
Following is a breakdown of Total Revenues by business segment:
REVENUES
(In millions of Ps.) | 9M20 | 9M19 | YoY | 3Q20 | 2Q20 | 3Q19 | QoQ | YoY |
Printing and Publishing | 8,294.6 | 11,753.2 | (29.4%) | 2,696.7 | 2,664.3 | 4,122.0 | 1.2% | (34.6%) |
Broadcasting and Programming | 7,930.8 | 10,594.7 | (25.1%) | 2,907.2 | 2,431.3 | 3,768.1 | 19.6% | (22.8%) |
Others | 1,611.6 | 2,654.7 | (39.3%) | 552.5 | 431.2 | 798.5 | 28.2% | (30.8%) |
Subtotal | 17,836.9 | 25,002.6 | (28.7%) | 6,156.4 | 5,526.7 | 8,688.6 | 11.4% | (29.1%) |
Eliminations | (962.3) | (1,336.9) | (28.0%) | (298.1) | (314.1) | (458.5) | (5.1%) | (35.0%) |
Total | 16,874.6 | 23,665.7 | (28.7%) | 5,858.3 | 5,212.6 | 8,230.1 | 12.4% | (28.8%) |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 10,393.2 million, a decrease of 28.8% from Ps. 14,599.1 million reported in 9M19 due to lower costs across all business segments, mainly in Printing and Publishing segment due to lower salaries and printing costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 5,117.1 million, a decrease of 27.2% from Ps. 7,025.2 million in 9M19. This drop was mainly due to lower salaries and fees for services across all business segments.
Adjusted EBITDA reached Ps. 1,364.3 million, a decrease of 33.2% from Ps. 2,041.4 million reported for 9M19. This decrease was driven by lower advertising revenues across all business segments, partially offset by lower cost and expenses.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 9M20 | 9M19 | YoY | 3Q20 | 2Q20 | 3Q19 | QoQ | YoY |
Printing and Publishing | 165.2 | 41.1 | 302.3% | 208.4 | 57.3 | 230.2 | 263.4% | (9.5%) |
Broadcasting and Programming | 1,175.7 | 2,069.6 | (43.2%) | 622.7 | 598.2 | 712.1 | 4.1% | (12.5%) |
Others | 23.4 | (69.3) | (133.7%) | 11.3 | 14.1 | (62.2) | 20.0% | 118.1% |
Total | 1,364.3 | 2,041.4 | (33.2%) | 842.4 | 669.6 | 880.1 | 25.8% | (4.3%) |
Financial results net totaled Ps. (498.4) million compared to Ps. (1,522.0) million in 9M19. This decrease was mainly due to lower interest payments due to lower levels of debt.
Equity in earnings from unconsolidated affiliates in 9M20 totaled Ps. 688.9 million, compared to Ps. 236.3 million in 9M19.
Other Income (expenses), net reached Ps. (1,040.6) million, compared to Ps. (215.7) million in 9M19.
Income tax as of 9M20 reached Ps. (475.7) million, from Ps. (466.1) million in 9M19.
Loss for the period totaled Ps. 883.8 million compared to Ps. 979.8 million losses reported in 9M19. This was mainly due to lower EBITDA in the Broadcasting and Programming segment. The Equity Shareholders Loss for the period amounted Ps. 708.7 million.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 285.4 million in 9M20, a decrease of 55.3% from Ps. 638.3 million reported in 9M19. Out of the total CAPEX in 9M20, 49.2% was allocated towards the Broadcasting and Programming segment, 46.3% to the Printing and Publishing segment and the remaining 4.6% to other activities.
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2020
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Others | Eliminations | Total | % |
Advertising | 1,845.1 | 4,510.4 | 51.8 | (94.9) | 6,312.4 | 37.4% |
Circulation | 4,954.5 | - | - -
| - | 4,954.5 | 29.4% |
Printing | 609.9 | - | - -
| (36.2) | 573.7 | 3.4% |
Programming | - | 3,350.2 | - | - | 3,350.2 | 19.9% |
Other Sales
| 885.1 | 70.2 | 1,559.8 | (831.3) | 1,683.8 | 10.0% |
Total Sales | 8,294.6 | 7,930.8 | 1,611.6 | (962.3) | 16,874.6 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2019
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Others | Eliminations | Total | % |
Advertising | 3,611.6 | 7,126.4 | 107.5 | (163.9) | 10,681.6 | 45.1% |
Circulation | 6,386.0 | - | - | - | 6,386.0 | 27.0% |
Printing | 580.8 |
| - | (58.8) | 522.0 | 2.2% |
Programming | - | 3,121.0 | - | - | 3,121.0 | 13.2% |
Other Sales
| 1,174.9 | 347.3 | 2,547.1 | (1,114.2) | 2,955.1 | 12.5% |
Total Sales | 11,753.2 1,174.9 | 10,594.7 347.3 | 2,654.7 2,547.1 | (1,336.9) | 23,665.7 2,955.1 | 100.0% |
RESULTS BY BUSINESS SEGMENT
BROADCASTING AND PROGRAMMING
Revenues
Revenues decreased by 25.1% to Ps. 7,930.8 million in 9M20, compared to Ps. 10,594.7 million in 9M19 due to the lower advertising revenues that was partially offset by higher programming revenues.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales decreased by 23.9% to Ps. 5,026.9 million in 9M20, compared to Ps. 6,607.6 million in 9M19. This is mainly attributable to lower salaries and fees for services.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses decreased by 9.9% to Ps. 1,728.1 million in 9M20, compared to Ps. 1,917.6 million in 9M19. The decrease was primarily the result of lower salaries and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 4.3% to Ps. 435.4 million in 9M20 compared to Ps. 417.4 million reported in 9M19.
PRINTING AND PUBLISHING
Revenues
Total revenues decreased by 29.4% to Ps. 8,294.6 million in 9M20, mainly as a result of lower circulation and advertising revenues in real terms.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales decreased by 31.1% to Ps. 4,633.6 million in 9M20, compared to Ps. 6,729.5 million in 9M19. The decrease was mainly the result of lower salaries, printing costs and lower severance payments.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses decreased by 29.8% to Ps. 3,495.8 million in 9M20, compared to the Ps. 4,982.6 million reported in 9M19. This was primarily the result of lower salaries and advertising expenses.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 27.7% to Ps. 298.9 million in 9M20 compared to Ps. 413.2 million in 9M19.
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 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 decreased 39.3% to Ps. 1,611.6 from Ps. 2,654.7 million reported in 9M19, due to lower revenues from Gestión Compartida and Grupo Clarin. EBITDA resulted in Ps. 23.4 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
PRINTING AND PUBLISHING
| 9M20 | 9M19 | YoY | 3Q20 | 2Q20 | 3Q19 | QoQ | YoY |
Circulation (1) | 247.0 | 233.3 | 5.9% | 271.6 | 220.2 | 237.4 | 23.3% | 14.4% |
Circulation share % (2) | 44.0% | 40.4% | 8.7% | 43.2% | 46.7% | 41.4% | (7.6%) | 4.3% |
(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.
BROADCASTING AND PROGRAMMING
| 9M20 | 9M19 | YoY | 3Q20 | 2Q20 | 3Q19 | QoQ | YoY |
Advertising Share % (1) | 36.6% | 38.4% | (4.6%) | 37.5% | 36.0% | 38.8% | 4.3% | (3.3%) |
Audience Share % (2) |
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Prime Time | 30.1% | 37.4% | (19.5%) | 30.6% | 28.1% | 39.4% | 9.1% | (22.4%) |
Total Time | 30.3% | 32.6% | (7.1%) | 31.4% | 29.4% | 32.7% | 6.5% | (4.0%) |
(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
| 9M20 | 9M19
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Page Views (1) | 1,066.5 | 1,069.6 | (0.3%) |
Mobile page Views | 764.0 | 732.5 | 4.3% |
(1) In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 2020 | September 2019 | % Change |
Short Term and Long Term Debt |
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Current Financial Debt | 351.2 | 2,055.5 | (82.9%) |
Financial loans | 68.8 | 1,416.8 | (95.1%) |
Accrued interest | 11.0 | 31.5 | (65.1%) |
Acquisition of equipment | 11.2 | 9.9 | 13.3% |
Sellers Financing Capital | - | - | NA |
Related Parties Capital | 6.8 | 9.3 | (26.8%) |
Bank overdraft | 243.9 | 578.3 | (57.8%) |
Non-Current Financial Debt | 1,312.4 | 562.2 | 133.4% |
Financial loans | 1,299.0 | 559.4 | 132.2% |
Acquisition of equipment | 13.4 | 2.8 | 375.4% |
Related Parties Capital | - | - | NA |
Total Financial Debt (A) | 1,663.6 | 2,617.7 | (36.4%) |
Total Short Term and Long Term Debt | 1,663.6 | 2,617.7 | (36.4%) |
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Cash and Cash Equivalents (B) | 2,847.7 | 3,156.9 | (9.8%) |
Net Debt (A) - (B) | (1,184.0) | (539.2) | 119.6% |
Net Debt/Adjusted Ebitda (1) | (0.3x) | (0.2x) | 98.3% |
Total Financial Debt(1) decreased from Ps. 2,617.7 million to Ps. 1,663.6 million, this represents a decrease of 36.4% in the Total Debt. Debt coverage ratio (1) as of September 30, 2020 was 0.5x 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.
REVENUES AND EBITDA - IAS 29 Adjustment
REVENUES
(In millions of Ps.) | 9M20 | 9M19 | YoY | 9M20 ex IAS 29 | IAS 29 Adjustment | 9M20as reported | 9M19 ex IAS 29 | IAS 29 Adjustment | 9M19as reported |
Printing and Publishing | 8,294.6 | 11,753.2 | (29.4%) | 7,891.9 | 402.7 | 8,294.6 | 7,438.2 | 4,315.0 | 11,753.2 |
Broadcasting and Programming | 7,930.8 | 10,594.7 | (25.1%) | 7,545.7 | 385.0 | 7,930.8 | 6,705.1 | 3,889.7 | 10,594.7 |
Others | 1,611.6 | 2,654.7 | (39.3%) | 1,533.3 | 78.2 | 1,611.6 | 1,680.1 | 974.6 | 2,654.7 |
Subtotal | 17,836.9 | 25,002.6 | (28.7%) | 16,971.0 | 866.0 | 17,836.9 | 15,823.4 | 9,179.3 | 25,002.6 |
Eliminations | (962.3) | (1,336.9) | (28.0%) | (915.6) | (46.7) | (962.3) | (846.1) | (490.8) | (1,336.9) |
Total | 16,874.6 | 23,665.7 | (28.7%) | 16,055.3 | 819.2 | 16,874.6 | 14,977.2 | 8,688.4 | 23,665.7 |
(In millions of Ps.) | 3Q20 | 3Q19 | YoY | 3Q20 ex IAS 29 | IAS 29 Adjustment | 3Q20as reported | 3Q19 ex IAS 29 | IAS 29 Adjustment | 3Q19as reported |
Printing and Publishing | 2,696.7 | 4,122.0 | (34.6%) | 2,849.8 | (153.1) | 2,696.7 | 1,991.7 | 2,130.3 | 4,122.0 |
Broadcasting and Programming | 2,907.2 | 3,768.1 | (22.8%) | 2,600.5 | 306.7 | 2,907.2 | 1,897.3 | 1,870.9 | 3,768.1 |
Digital Content and Others | 552.5 | 798.5 | (30.8%) | 564.0 | (11.5) | 552.5 | 426.6 | 371.9 | 798.5 |
Subtotal | 6,156.4 | 8,688.6 | (29.1%) | 6,014.3 | 142.2 | 6,156.4 | 4,315.5 | 4,373.1 | 8,688.6 |
Eliminations | (298.1) | (458.5) | (35.0%) | (317.9) | 19.8 | (298.1) | (224.4) | (234.2) | (458.5) |
Total | 5,858.3 | 8,230.1 | (28.8%) | 5,696.3 | 162.0 | 5,858.3 | 4,139.0 | 4,139.0 | 8,230.1 |
EBITDA
(In millions of Ps.) | 9M20 | 9M19 | YoY | 9M20 ex IAS 29 | IAS 29 Adjustment | 9M20as reported | 9M19 ex IAS 29 | IAS 29 Adjustment | 9M19as reported |
Printing and Publishing | 165.2 | 41.1 | 302% | 157.2 | 8.0 | 165.2 | 26.0 | 15.1 | 41.1 |
Broadcasting and Programming | 1,175.7 | 2,069.6 | (43.2%) | 1,118.6 | 57.1 | 1,175.7 | 1,309.8 | 759.8 | 2,069.6 |
Digital Content and Others | 23.4 | (69.3) | 134% | 22.2 | 1.1 | 23.4 | (43.8) | (25.4) | (69.3) |
Total | 1,364.3 | 2,041.4 | (33.2%) | 1,298.0 | 66.2 | 1,364.3 | 1,291.9 | 749.4 | 2,041.4 |
(In millions of Ps.) | 3Q20 | 3Q19 | YoY | 3Q20 ex IAS 29 | IAS 29 Adjustment | 3Q20as reported | 3Q19 ex IAS 29 | IAS 29 Adjustment | 3Q19as reported |
Printing and Publishing | 208.4 | 230.2 | (9.5%) | 139.7 | 68.7 | 208.4 | 39.9 | 190.3 | 230.2 |
Broadcasting and Programming | 622.7 | 712.1 | (12.5%) | 493.5 | 129.2 | 622.7 | 376.8 | 335.2 | 712.1 |
Digital Content and Others | 11.3 | (62.2) | 118% | (39.6) | 50.9 | 11.3 | 4.5 | (66.8) | (62.2) |
Subtotal | 842.4 | 880.1 | (4.3%) | 593.7 | 248.7 | 842.4 | 421.3 | 458.8 | 880.1 |
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.
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GCLA (BCBA) Price per Share (ARS)
| 39.00 |
Total Shares | 106,776,004 |
Total GDSs | 53,388,002 |
Closing Price | December 4, 2020 |
CONFERENCE CALL AND WEBCAST INFORMATION
GRUPO CLARIN S.A.
(BCBA: GCLA; LSE: GCLA)
cordially invites you to participate in its conference call and webcast presentation
to discuss Third Quarter 2020 Results
Date: Wednesday, December 9, 2020
Time: 3:00pm Buenos Aires Time/6:00pm London Time/1:00pm New York Time
To access the conference call, please dial:Argentina Participants: 0-800-666-0250
U.S. Participants: 1-877-830-2576
All other countries: +1-785-424-1726Passcode: CLARIN
The 3Q20 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/gcla201209r0BN4pk0.html
NOTE: Grupo Clarín will release its Third Quarter 2020 Earnings on Friday, December 4, 2020
after the markets close.
There will be a replay available, for 7 days, starting four hours after the conclusion of the conference call. To access the replay, please dial 1-844-488-7474 toll free from the U.S., or +1-862-902-0129 from anywhere outside the U.S. The replay passcode is: 64633558
The webcast presentation will be archived at http://www.grupoclarin.com/ir/
Investor Relations Contacts |
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In Buenos Aires: | In London: | In New York: |
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Agustín Medina Manson
| Alex Money
| Melanie Carpenter
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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: alex@jasford.com | E-mail: clarin@i-advize.com
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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, 2020 AND 2019, AND FOR THE THREE-MONTH PERIODS BEGINNING ON JULY 1
AND ENDED ON SEPTEMBER 30, 2020 AND 2019
In Argentine Pesos (Ps.)
| September 30, 2020 |
| September 30, 2019 |
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July 1, 2020 through September 30, 2020 |
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July 1, 2019 through September 30, 2019 |
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Revenues | 16,874,575,390 |
| 23,665,661,300 |
| 5,858,319,188 |
| 8,230,116,627 |
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Cost of Sales (1) | (11,153,362,364) |
| (15,461,985,118) |
| (3,580,703,747) |
| (5,240,934,659) |
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Subtotal - Gross Profit | 5,721,213,026 |
| 8,203,676,182 |
| 2,277,615,441 |
| 2,989,181,968 |
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Selling Expenses (1) | (2,622,576,292) |
| (3,864,706,910) |
| (803,315,355) |
| (1,309,792,582) |
Administrative Expenses (1) | (2,656,693,395) |
| (3,351,266,957) |
| (917,279,091) |
| (1,128,015,756) |
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Other Income and Expenses, net | (1,040,579,987) |
| (215,664,421) |
| (802,236,594) |
| (183,642,213) |
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Financial Expenses on Debt | (575,804,610) |
| (1,149,498,591) |
| (147,956,317) |
| (605,560,180) |
Gain (Loss) on Net Monetary Position | (34,027,453) |
| (295,797,966) |
| (42,068,725) |
| (112,213,083) |
Other Financial Results, net | 111,388,397 |
| (76,703,591) |
| 15,337,105 |
| (83,196,397) |
Financial Results | (498,443,666) |
| (1,522,000,148) |
| (174,687,937) |
| (800,969,660) |
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Equity in Earnings from Associates | 688,934,646 |
| 236,310,922 |
| 240,288,816 |
| 82,393,136 |
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Income (Loss) before Income Tax | (408,145,668) |
| (513,651,332) |
| (179,614,720) |
| (350,845,107) |
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Income Tax | (475,682,433) |
| (466,135,288) |
| (297,712,602) |
| (273,935,720) |
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Net Income (Loss) for the Period | (883,828,101) |
| (979,786,620) |
| (477,327,322) |
| (624,780,827) |
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Other Comprehensive Income |
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|
|
Items which can be reclassified to Net Income (Loss) |
|
|
|
|
|
|
|
Variation in Translation Differences of Foreign Operations | (3,946,321) |
| (18,748,647) |
| 4,788,149 |
| (32,399,420) |
Other Comprehensive Income (Loss) for the Period | (3,946,321) |
| (18,748,647) |
| 4,788,149 |
| (32,399,420) |
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | (887,774,422) |
| (998,535,267) |
| (472,539,173) |
| (657,180,247) |
|
|
|
|
|
|
|
|
(Loss) Income Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Parent Company | (708,676,514) |
| (865,867,366) |
| (460,963,959) |
| (598,400,181) |
|
|
|
|
|
|
|
|
Non-Controlling Interests | (175,151,587) |
| (113,919,254) |
| (16,363,363) |
| (26,380,646) |
|
|
|
|
|
|
|
|
Total Comprehensive Income (Loss) Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Parent Company | (712,622,835) |
| (864,736,684) |
| (456,175,810) |
| (596,588,619) |
|
|
|
|
|
|
|
|
Non-Controlling Interests | (175,151,587) |
| (133,798,583) |
| (16,363,363) |
| (60,591,628) |
|
|
|
|
|
|
|
|
Basic and Diluted Net Income (Loss) per Share | (6.64) |
| (8.11) |
| (4.32) |
| (5.60) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of intangible assets and film library, right-of-use assets and depreciation of property, plant and equipment in the amount of $ 922,337,978 and $ 1,053,662,400 for the nine-month periods ended September 30, 2020 and 2019, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30th, 2020 available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2020, AND DECEMBER 31, 2019
In Argentine Pesos (Ps.)
| September 30, 2020 |
| December 31, 2019 |
ASSETS |
|
|
|
NON-CURRENT ASSETS |
|
|
|
Property, Plant and Equipment | 6,413,563,265 |
| 6,813,173,455 |
Intangible Assets | 442,617,420 |
| 518,456,690 |
Goodwill | 47,498,174 |
| 1,138,785,778 |
Deferred Tax Assets | 697,660,810 |
| 603,217,586 |
Investments in Unconsolidated Affiliates | 2,619,118,052 |
| 2,033,370,888 |
Right-of-Use Assets | 79,149,256 |
| 115,098,252 |
Other Investments | 13,437,910 |
| - |
Inventories | 62,366,026 |
| 21,984,757 |
Other Assets | 40,795,937 |
| 41,882,840 |
Other Receivables | 157,650,435 |
| 321,585,691 |
Trade Receivables | 58,081,667 |
| 51,068,322 |
Total Non-Current Assets | 10,631,938,952 |
| 11,658,624,259 |
|
|
|
|
CURRENT ASSETS |
|
|
|
Inventories | 1,115,695,695 |
| 1,604,724,620 |
Other Assets | 121,250,794 |
| 145,653,105 |
Other Receivables | 2,038,401,848 |
| 1,873,167,755 |
Trade Receivables | 6,416,170,143 |
| 7,094,379,251 |
Other Investments | 1,885,090,674 |
| 864,163,516 |
Cash and Banks | 995,918,549 |
| 1,841,317,110 |
Total Current Assets | 12,572,527,703 |
| 13,423,405,357 |
|
|
|
|
Total Assets | 23,204,466,655 |
| 25,082,029,616 |
|
|
|
|
EQUITY (as per the corresponding statement) |
|
|
|
Attributable to Shareholders of the Parent Company |
|
|
|
Shareholders' Contribution | 11,185,708,553 |
| 13,028,994,750 |
Other Items | 13,907,546 |
| 28,372,104 |
Retained Earnings | 632,845,270 |
| (501,764,413) |
Total Attributable to Shareholders of the Parent Company | 11,832,461,369 |
| 12,555,602,441 |
|
|
|
|
Attributable to Non-Controlling Interests | 84,633,426 |
| 252,566,804 |
Total Equity | 11,917,094,795 |
| 12,808,169,245 |
|
|
|
|
LIABILITIES |
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
Provisions and Other Charges | 894,496,434 |
| 974,885,793 |
Financial Debt | 1,288,439,607 |
| 1,099,570,377 |
Deferred Tax Liabilities | 353,183,707 |
| 344,949,215 |
Taxes Payable | 16,457,185 |
| 35,389,576 |
Lease Liabilities | 21,497,756 |
| 32,488,854 |
Other Liabilities | 232,322,887 |
| 223,890,537 |
Trade and Other Payables | 44,031,718 |
| 82,735,604 |
Total Non-Current Liabilities | 2,850,429,294 |
| 2,793,909,956 |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
Financial Debt | 375,209,488 |
| 1,188,849,993 |
Taxes Payable | 610,508,359 |
| 644,149,293 |
Lease Liabilities | 62,721,630 |
| 82,311,221 |
Other Liabilities | 961,389,797 |
| 996,323,616 |
Trade and Other Payables | 6,427,113,292 |
| 6,568,316,292 |
Total Current Liabilities | 8,436,942,566 |
| 9,479,950,415 |
|
|
|
|
Total Liabilities | 11,287,371,860 |
| 12,273,860,371 |
|
|
|
|
Total Equity and Liabilities | 23,204,466,655 |
| 25,082,029,616 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
In Argentine Pesos (Ps.)
| Equity attributable to Shareholders of the Parent Company |
| Equity Attributable to Non-Controlling Interests |
| Total Equity | |||||||||||
| Shareholders' Contribution |
| Other Items |
| Retained Earnings | 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 | Voluntary Reserves | Retained Earnings |
|
| |||
Balances as of January 1, 2020 | 106,776,004 | 4,487,880,245 | 8,434,338,501 | 13,028,994,750 |
| 173,413,695 | (145,041,591) |
| - | 1,341,521,784 | (1,843,286,197) | 12,555,602,441 |
| 252,566,804 |
| 12,808,169,245 |
Reversal of Additional Paid-in Capital(Note 9.a) | - | - | (1,843,286,197) | (1,843,286,197) |
| - | - |
| - | - | 1,843,286,197 | - |
| - |
| - |
Changes in minority interest in a subsidiary | - | - | - | - |
| - | (10,518,237) |
| - | - | - | (10,518,237) |
| 10,518,237 |
| - |
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | - |
| - | - | - | - |
| (3,300,028) |
| (3,300,028) |
Net Income (Loss) for the Period | - | - | - | - |
| - | - |
| - | - | (708,676,514) | (708,676,514) |
| (175,151,587) |
| (883,828,101) |
Other Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation in Translation Differences of Foreign Operations | - | - | - | - |
| (3,946,321) | - |
| - | - | - | (3,946,321) |
| - |
| (3,946,321) |
Balances as of September 30, 2020 | (1) 106,776,004 | 4,487,880,245 | 6,591,052,304 | 11,185,708,553 |
| 169,467,374 | (155,559,828) |
| - | (2) 1,341,521,784 | (708,676,514) | 11,832,461,369 |
| 84,633,426 |
| 11,917,094,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of January 1, 2019 | 106,776,004 | 4,487,880,245 | 10,804,762,479 | 15,399,418,728 |
| 172,554,672 | (145,041,591) |
| 153,829,141 | 11,270,656,011 | (12,453,387,346) | 14,398,029,615 |
| 229,366,219 |
| 14,627,395,834 |
Reversal of Reserves and Additional Paid-in capital | - | - | (2,370,423,978) | (2,370,423,978) |
| - | - |
| (153,829,141) | (9,929,134,227) | 12,453,387,346 | - |
| - |
| - |
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | - |
| - | - | - | - |
| (21,040,678) |
| (21,040,678) |
Net Income (Loss) for the Period | - | - | - | - |
| - | - |
| - | - | (865,867,366) | (865,867,366) |
| (113,919,254) |
| (979,786,620) |
Other Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation in Translation Differences of Foreign Operations | - | - | - | - |
| 1,130,682 | - |
| - | - | - | 1,130,682 |
| (19,879,329) |
| (18,748,647) |
Balances as of September 30, 2019 | (1) 106,776,004 | 4,487,880,245 | 8,434,338,501 | 13,028,994,750 |
| 173,685,354 | (145,041,591) |
| - | (2) 1,341,521,784 | (865,867,366) | 13,533,292,931 |
| 74,526,958 |
| 13,607,819,889 |
(1) Includes 1,485 treasury shares. See Note 12 to the separate financial statements.
(2) Corresponds to Judicial Reserve for Future Dividends Distribution
| September 30, 2020 |
| September 30, 2019 | |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES |
|
|
| |
Net Income (Loss) for the Period | (883,828,101) |
| (979,786,620) | |
Income Tax | 475,682,433 |
| 466,135,288 | |
Accrued Interest, net | 176,936,238 |
| 452,736,231 | |
Adjustments to reconcile Net Income (Loss) for the Period to Cash provided by Operating Activities: |
|
|
| |
Depreciation of Property, Plant and Equipment | 626,101,198 |
| 648,655,548 | |
Amortization of Intangible Assets and Film Library | 221,232,381 |
| 291,930,528 | |
Amortization of Right-of-Use Assets | 75,004,399 |
| 113,076,324 | |
Net Allowances | 287,562,434 |
| 324,352,005 | |
Financial Income, except Interest | 10,954,164 |
| 196,991,808 | |
Gain (Loss) on Net Monetary Position | 34,027,453 |
| 295,797,966 | |
Equity in Earnings from Associates | (688,934,646) |
| (236,310,922) | |
Impairment of Goodwill | 1,091,287,604 |
| - | |
Other Income and Expenses | (34,070,218) |
| 270,161,917 | |
Changes in Assets and Liabilities: |
|
|
| |
Trade Receivables | (1,020,611,223) |
| (1,145,413,227) | |
Other Receivables | (477,042,775) |
| (1,153,616,396) | |
Inventories | 320,209,396 |
| (72,208,168) | |
Other Assets | 25,840,419 |
| (73,309,586) | |
Trade and Other Payables | 1,425,034,272 |
| 1,858,941,167 | |
Taxes Payable | (130,611,752) |
| (157,069,104) | |
Other Liabilities | 202,072,733 |
| 784,343,751 | |
Provisions | (86,996,277) |
| (94,160,057) | |
Payments of Income tax | (386,992,286) |
| (242,070,783) | |
|
|
|
|
|
| Net Cash Flows provided by Operating Activities | 1,262,857,846 |
| 1,549,177,670 |
|
|
|
|
|
| CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES |
|
|
|
| Payments for Acquisition of Property, Plant and Equipment | (285,356,533) |
| (638,290,256) |
| Payments for Acquisition of Intangible Assets | (123,355,737) |
| (104,887,333) |
| Capital Contributions in Associates | (58,087) |
| (197,331) |
| Proceeds from Sale of Property, Plant and Equipment | 10,026,726 |
| - |
| Proceeds from Sale of Intangible Assets | - |
| 26,233,253 |
| Collection of granted loans | 32,171,557 |
| - |
| Proceeds from Sale of Other Assets | 1,588,174 |
| 2,742,107 |
| Dividends Collected | 68,063,146 |
| 17,098,815 |
| Transactions with Notes, Bonds and Other Placements, Net | 89,526,427 |
| 72,956,976 |
|
|
|
|
|
| Net Cash Flows used in Investing Activities | (207,394,327) |
| (624,343,769) |
|
|
|
|
|
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES |
|
|
|
| Loans Obtained | 757,008,500 |
| 2,124,459,633 |
| Payment of Financial Debt | (1,310,173,092) |
| (1,540,080,816) |
| Payment of Interest | (234,616,492) |
| (546,379,219) |
| Payment of Lease Liabilities | (59,221,911) |
| (129,634,914) |
| Payments to Non-Controlling Interests, net | (3,300,028) |
| (8,753,843) |
|
|
|
|
|
| Net Cash Flows used in Financing Activities | (850,303,023) |
| (100,389,159) |
|
|
|
|
|
| FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS | (62,862,689) |
| 2,218,395 |
|
|
|
|
|
| Net Increase in Cash Flow | 142,297,807 |
| 826,663,137 |
| Cash and Cash Equivalents at the Beginning of the Year | 2,705,399,108 |
| 2,330,279,350 |
| Cash and Cash Equivalents at the End of the Period (Note 2.4) | 2,847,696,915 |
| 3,156,942,487 |