14 Nov 2022 07:25
Grupo Clarín Announces Nine months and Third Quarter 2022 Results
Buenos Aires, Argentina, November 11, 2022 - 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 2022 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") as of September 30, 2022 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) as per Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), that establishes that the restatement must be applied to the financial statements.
Highlights (9M22 vs. 9M21):
§ Total Revenues reached Ps. 47,115.1 million, a decrease of 2.8% in real terms compared to 9M21, mainly due to lower revenues in the Broadcasting and Programming segment, partially offset by higher revenues in Digital and Printed Publications.
§ Adjusted EBITDA(1) reached Ps. 7,036.2 million, a decrease of 17.5% compared to 8,531.1 for 9M21, mainly driven by lower EBITDA in Broadcasting and Programming, partially offset by a higher EBITDA in the Digital and Printed Publications and Others segments.
§ Grupo Clarín's Adjusted EBITDA Margin(2) was 14.9% in 9M22, compared to 17.6% in 9M21.
§ Net Income for the period resulted in a loss of Ps. 467.7 million, a decrease of -119.0% compared to a profit of Ps. 2,462.9 million reported in 9M21. Loss for the period attributable to Equity Shareholders amounted Ps 496.0 million in 9M22 from a profit of Ps. 2,413.4 million in 9M21, a decrease of -120.6%.
FINANCIAL HIGHLIGHTS
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(In millions of Ps.) | 9M22 | 9M21 | % Ch. | 3Q22 | 2Q22 | 3Q21 | QoQ | YoY |
Total Revenues | 47,115.1 | 48,462.9 | (2.8%) | 15,659.2 | 16,397.3 | 17,420.8 | (4.5%) | (10.1%) |
Adjusted EBITDA (1) | 7,036.2 | 8,531.1 | (17.5%) | 2,640.7 | 2,351.5 | 3,318.8 | 12.3% | (20.4%) |
Adjusted EBITDA Margin (2) | 14.9% | 17.6% | (15.2%) | 16.9% | 14.3% | 19.1% | 17.6% | (11.5%) |
Profit/(Loss) for the period | (467.7) | 2,462.9 | (119.0%) | (691.5) | 143.3 | 605.7 | (582.4%) | (214.2%) |
Attributable to: | ||||||||
Equity Shareholders | (496.0) | 2,413.4 | (120.6%) | (657.0) | 84.0 | 584.4 | (882.6%) | (212.4%) |
Non-Controlling Interests | 28.3 | 49.5 | (42.7%) | (34.5) | 59.4 | 21.2 | (158.1%) | (262.5%) |
(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. 47,115.1 million, a decrease of 2.8% in real terms from Ps. 48,462.9 million in , in a context of increasing inflation (which reached 83.0% interannually). Advertising revenues decreased 3.7% in real terms and represented around 45.8% of the Total Revenues of the Company. Circulation revenues increased 7.0% YoY and represented 29.3% of the Total. Programming revenues decreased 10.0% YoY and represented 16.2% of the Total.
Following is a breakdown of Total Revenues by business segment:
REVENUES
(In millions of Ps.) | 9M22 | 9M21 | YoY | 3Q22 | 2Q22 | 3Q21 | QoQ | YoY |
Digital and Printed Publications | 21,558.0 | 21,073.3 | 2.3% | 6,801.8 | 7,173.7 | 7,294.1 | (5.2%) | (6.7%) |
Broadcasting and Programming | 24,062.5 | 26,201.7 | (8.2%) | 8,333.7 | 8,727.2 | 9,896.1 | (4.5%) | (15.8%) |
Others | 3,394.6 | 3,273.5 | 3.7% | 981.8 | 1,126.8 | 1,206.5 | (12.9%) | (18.6%) |
Subtotal | 49,015.1 | 50,548.5 | (3.0%) | 16,117.3 | 17,027.7 | 18,396.7 | (5.3%) | (12.4%) |
Eliminations | (1,900.0) | (2,085.7) | (8.9%) | (458.1) | (630.3) | (975.9) | (27.3%) | (53.1%) |
Total | 47,115.1 | 48,462.9 | (2.8%) | 15,659.2 | 16,397.3 | 17,420.8 | (4.5%) | (10.1%) |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 27,875.7 million, an increase of 4.7% from Ps. 26,629.7 million reported in 9M21, due to higher costs, mainly related to the content on air in El Trece's screen and the return of fiction productions for third parties and higher costs in the Digital and Printed Publications segment related to the increase in circulation revenues.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) totaled Ps. 12,203.2 million, a decrease of 8.3% from Ps. 13,302.0 million in 9M21. This decrease was mainly due to lower distribution costs, contingencies and salaries and severance payments.
Adjusted EBITDA amounted to Ps. 7,036.2 million, a decrease of 17.5% from Ps. 8,531.1 million reported in 9M21. This a decrease was driven by lower EBITDA in Broadcasting and Programming, mainly as a result of lower programming revenues; partially offset by a higher EBITDA in Digital and Printed Publications as a result of higher circulation revenues.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 9M22 | 9M21 | YoY | 3Q22 | 2Q22 | 3Q21 | QoQ | YoY |
Digital and Printed Publications | 1,782.7 | 1,578.3 | 12.9% | 500.7 | 340.4 | 751.7 | 47.1% | (33.4%) |
Broadcasting and Programming | 4,961.4 | 6,793.4 | (27.0%) | 2,159.8 | 1,994.8 | 2,505.0 | 8.3% | (13.8%) |
Others | 292.0 | 159.4 | 83.3% | (19.9) | 16.2 | 62.1 | (222.6%) | (132.0%) |
Total | 7,036.2 | 8,531.1 | (17.5%) | 2,640.7 | 2,351.5 | 3,318.8 | 12.3% | (20.4%) |
Financial results net totaled Ps. (4,656.7) million compared to Ps. (3,364.2) million in 9M21. This increase was mainly due to higher negative inflation adjustment results versus 2021.
Equity in earnings from unconsolidated affiliates in 9M22 totaled Ps. 237.7 million, compared to Ps. 778.5 million in 9M21, mainly related to negative results in BIMO -whose operation has been suspended-, partially offset by higher net income in our subsidiary Papel Prensa.
Other Income (expenses), net reached Ps. (48.3) million, compared to Ps. 116.1 million in 9M21.
Income tax as of 9M22 reached Ps. (1,132.4) million, from Ps. Ps. (1,459.0) million in 9M21, mainly as a result of lower taxable income (after considering taxable Inflation Adjustment).
Income for the period totaled Ps. 467.7 million, a decrease of -119.0% from a gain of Ps. 2,462.9 million reported in 9M21. The Equity Shareholders Loss for the period amounted Ps. 496.0 million, a decrease of -120.6% YoY from a profit of 2,413.4 million.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 1,380.0 million in 9M22, an increase of 15.0% from Ps. 1,199.6 million reported in 9M21. Out of the total CAPEX in 9M22, 87.5% was allocated towards the Broadcasting and Programming segment, 9.1% to the Digital and Printed Publications segment and the remaining 3.4% to other activities.
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2022
(In millions of Ps.) | Digital & Printed Publications | Broadcasting & Programming | Others | Eliminations | Total | % |
Advertising | 5,545.4 | 16,255.2 | - | (244.7) | 21,555.9 | 45.8% |
Circulation | 13,827.0 | - | - | - | 13,827.0 | 29.3% |
Printing | 1,090.7 | - | - | - | 1,090.7 | 2.3% |
Programming | - | 7,616.7 | - | - | 7,616.7 | 16.2% |
Other Sales
| 1,094.9 | 190.6 | 3,394.6 | (1,655.3) | 3,024.7 | 6.4% |
Total Sales | 21,558.0 | 24,062.5 | 3,394.6 | (1,900.0) | 47,115.1 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2021
(In millions of Ps.) | Digital & Printed Publications | Broadcasting & Programming | Others | Eliminations | Total | % |
Advertising | 5,601.1 | 16,955.2 | - | (164.8) | 22,391.5 | 46.2% |
Circulation | 12,922.6 | - | - | - | 12,922.6 | 26.7% |
Printing | 1,126.1 | - | - | - | 1,126.1 | 2.3% |
Programming | - | 8,464.0 | - | - | 8,464.0 | 17.5% |
Other Sales
| 1,423.4 | 782.5 | 3,273.5 | (1,920.9) | 3,558.6 | 7.3% |
Total Sales | 21,073.3 | 26,201.7 | 3,273.5 | (2,085.7) | 48,462.9 | 100.0% |
RESULTS BY BUSINESS SEGMENT
BROADCASTING AND PROGRAMMING
Revenues
Revenues decreased by 8.2% to Ps. 24,062.5 million in 9M22, compared to Ps. 26,201.7 million in 9M21 mainly as a result of lower programming revenues related to Pay-TV operators being unable to raise prices in line with inflation, which as a consequence lowers revenues for content producers such as ARTEAR; lower advertising revenues; and the un-consolidation of the car races operations from 2Q22 after the sale of the subsidiary Auto Sports S.A. and lower revenues in the same subsidiary in 1Q22 vis a vis 1Q21 due to rescheduling of care races during 1Q21 as a consequence of the easing of lockdowns from 4Q20; partially offset by revenues from fiction production sold to third parties.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 1.6% to Ps. 14,331.0 million in 9M22, compared to Ps. 14,103.2 million in 9M21. This is mainly attributable to higher content costs generated by the return of fiction to El Trece's screen and a more attractive programming schedule, and the return of fiction productions for third parties; partly offset by lower costs as a consequence the un-consolidation of the subsidiary Auto Sports S.A. from 2Q22 and lower costs in the same subsidiary in 1Q22 vis a vis 1Q21 due to rescheduling of care races during 1Q21 following the easing of lockdowns from 4Q20.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) decreased by 10.1% to Ps. 4,770.0 million in 9M22, compared to Ps. 5,305.1 million in 9M21. The decrease was primarily the result of lower salaries and severance payments and lower contingencies; partly offset by higher fees for services related to IT implementations provided by GC Gestión Compartida S.A. which are eliminated in the consolidation.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 12.9% to Ps. 940.3 million in 9M22 compared to Ps. 1,079.4 million reported in 9M21.
DIGITAL AND PRINTED PUBLICATIONS
Revenues
Total revenues increased by 2.3% to Ps. 21,558.0 million in 9M22, mainly as a result of higher circulation revenues from school textbooks, as school activity returned to normal after two years under the Covid-19 pandemic in 1Q22; higher book circulation revenues with the return of the International Book Fair and normalization of commercial activity; and higher Paywall revenues, partially offset by lower traditional circulation revenues.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 4.0% to Ps. 11,684.8 million in 9M22, compared to Ps. 11,231.3 million in 9M21. The increase is the result of higher costs related to the increase in circulation revenues - and higher international prices of newsprint compensated by lower consumption; partially offset by lower salaries.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) decreased by 2.1% to Ps. 8,090.5 million in 9M22, compared to the Ps. 8,263.7 million reported in 9M21. This was primarily the result of lower distribution costs and bad debt, partially offset by higher advertising and promotion costs and higher salaries and severance payments.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 4.1% to Ps. 640.6 million in 9M22 compared to Ps. 668.0 million in 9M21.
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). Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.
In this period, total revenues increased 3.7% to Ps. 3,394.6 , from Ps. 3,273.5 million reported in 9M21. EBITDA resulted in Ps. 292.0 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
DIGITAL AND PRINTED PUBLICATIONS
| 9M22 | 9M21 | YoY | 3Q22 | 2Q22 | 3Q21 | QoQ | YoY |
Circulation (1) | 175.6 | 217.2 | -19.2% | 167.7 | 176.0 | 206.8 | -0.3% | -18.9% |
Circulation share % (2) | 56.4% | 58.1% | -2.8% | 56.0% | 56.3% | 57.3% | 0.3% | -2.2% |
Total Digital Subs (3) | 554.6 | 414.4 | 33.8% | 554.6 | 521.4 | 414.4 | 6.4% | 33.8% |
(1) Average number of copies according to IVC (including Diario Clarín and Olé) in thousands
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín/Clarín+La Nación. Source: IVC.
(3) Total Clarin.com subs, in thousand, EOP. Company information.
BROADCASTING AND PROGRAMMING
| 9M22 | 9M21 | YoY | 3Q22 | 2Q22 | 3Q21 | QoQ | YoY |
Advertising Share % (1) | 35.0% | 36.3% | -3.4% | 35.7% | 35.1% | 35.9% | -0.3% | -0.6% |
Audience Share % (2) | ||||||||
Prime Time | 33.8% | 28.3% | 19.2% | 34.5% | 34.8% | 27.7% | -2.9% | 24.6% |
Total Time | 31.5% | 29.6% | 6.4% | 32.3% | 32.8% | 29.0% | -3.9% | 11.6% |
(1) Company estimates, 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 KPIs
| 9M22 | 9M21 | YoY | 3Q22 | 2Q22 | 3Q21 | QoQ | YoY |
Page Views (1) | 974.5 | 890.6 | 9.4% | 896.5 | 857.5 | 933.0 | 13.6% | -3.9% |
Mobile page Views | 731.7 | 587.2 | 24.6% | 661.6 | 626.6 | 606.1 | 16.8% | 9.2% |
(1) In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 2022 | September 2021 | % Change |
Short Term and Long-Term Debt |
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Current Financial Debt | 1,483.2 | 3,370.6 | (56.0%) |
Financial loans | 806.3 | 2,906.4 | (72.3%) |
Accrued interest | 162.5 | 75.2 | 116.2% |
Acquisition of equipment | 37.1 | 47.2 | (21.4%) |
Related Parties Accrued Interest
| - | 21.2 | (100.0%) |
Related Parties Capital | - | 12.4 | (100.0%) |
Bank overdraft | 477.3 | 308.2 | 54.9% |
Non-Current Financial Debt | 1,421.2 | 611.0 | 132.6% |
Financial loans | 1,412.5 | 588.8 | 139.9% |
Acquisition of equipment | 8.7 | 22.2 | (60.6%) |
Total Financial Debt (A) | 2,904.4 | 3,981.6 | (27.1%) |
Total Short Term and Long-Term Debt | 2,904.4 | 3,981.6 | (27.1%) |
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Cash and Cash Equivalents (B) | 6,650.2 | 7,399.3 | (10.1%) |
Net Debt (A) - (B) | (3,745.7) | (3,417.7) | 9.6% |
Net Debt/Adjusted Ebitda (1) | (0.42x) | (0.27x) | 58.9% |
Total Financial Debt(1) and Net Debt, decreased 27.1% to Ps. 2,904.4 million from Ps. 3,981.6 million and to Ps. (3,745.7) million from Ps. (3,417.7) million, respectively.
Debt coverage ratio (1) as of September 30, 2022 was (0.42x) in the case of Net Debt and of 0.33x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Last Twelve Months Adjusted EBITDA. 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.) | 9M22 | 9M21 | YoY | 9M22 ex IAS 29 | IAS 29 Adjustment | 9M22as reported | 9M21 ex IAS 29 | IAS 29 Adjustment | 9M21 as reported |
Digital and Printed Publications | 21,558.0 | 21,073.3 | 2.3% | 17,105.8 | 4,452.2 | 21,558.0 | 10,157.4 | 10,915.9 | 21,073.3 |
Broadcasting and Programming | 24,062.5 | 26,201.7 | (8.2%) | 19,093.1 | 4,969.4 | 24,062.5 | 12,629.3 | 13,572.4 | 26,201.7 |
Others | 3,394.6 | 3,273.5 | 3.7% | 2,693.6 | 701.1 | 3,394.6 | 1,577.8 | 1,695.7 | 3,273.5 |
Subtotal | 49,015.1 | 50,548.5 | (3.0%) | 38,892.4 | 10,122.7 | 49,015.1 | 24,364.5 | 26,184.0 | 50,548.5 |
Eliminations | (1,900.0) | (2,085.7) | (8.9%) | (1,507.6) | (392.4) | (1,900.0) | (1,005.3) | (1,080.4) | (2,085.7) |
Total | 47,115.1 | 48,462.9 | (2.8%) | 37,384.8 | 9,730.3 | 47,115.1 | 23,359.2 | 25,103.6 | 48,462.9 |
REVENUES (In millions of Ps.) | 3Q22 | 3Q21 | YoY | 3Q22 ex IAS 29 | IAS 29 Adjustment | 3Q22as reported | 3Q21 ex IAS 29 | IAS 29 Adjustment | 3Q21 as reported |
Digital and Printed Publications | 6,801.8 | 7,294.1 | (6.7%) | 6,484.2 | 317.6 | 6,801.8 | 3,844.0 | 3,450.1 | 7,294.1 |
Broadcasting and Programming | 8,333.7 | 9,896.1 | (15.8%) | 7,771.4 | 562.3 | 8,333.7 | 5,158.4 | 4,737.7 | 9,896.1 |
Others | 981.8 | 1,206.5 | (18.6%) | 956.8 | 25.0 | 981.8 | 630.8 | 575.7 | 1,206.5 |
Subtotal | 16,117.3 | 18,396.7 | (12.4%) | 15,212.4 | 904.9 | 16,117.3 | 9,633.2 | 8,763.5 | 18,396.7 |
Eliminations | (458.1) | (975.9) | (53.1%) | (469.7) | 11.6 | (458.1) | (496.8) | (479.1) | (975.9) |
Total | 15,659.2 | 17,420.8 | (10.1%) | 14,742.7 | 916.5 | 15,659.2 | 9,136.3 | 8,284.5 | 17,420.8 |
EBITDA (In millions of Ps.) | 9M22 | 9M21 | YoY | 9M22 ex IAS 29 | IAS 29 Adjustment | 9M22as reported | 9M21 ex IAS 29 | IAS 29 Adjustment | 9M21 as reported |
Digital and Printed Publications | 1,782.7 | 1,578.3 | 12.9% | 1,414.5 | 368.2 | 1,782.7 | 760.8 | 817.6 | 1,578.3 |
Broadcasting and Programming | 4,961.4 | 6,793.4 | (27.0%) | 3,936.8 | 1,024.6 | 4,961.4 | 3,274.5 | 3,519.0 | 6,793.4 |
Others | 292.0 | 159.4 | 83.3% | 231.7 | 60.3 | 292.0 | 76.8 | 82.5 | 159.4 |
Total | 7,036.2 | 8,531.1 | (17.5%) | 5,583.1 | 1,453.1 | 7,036.2 | 4,112.0 | 4,419.1 | 8,531.1 |
EBITDA (In millions of Ps.) | 3Q22 | 3Q21 | YoY | 3Q22 ex IAS 29 | IAS 29 Adjustment | 3Q22as reported | 3Q21 ex IAS 29 | IAS 29 Adjustment | 3Q21 as reported |
Digital and Printed Publications | 500.7 | 751.7 | (33.4%) | 491.8 | 9.0 | 500.7 | 382.0 | 369.7 | 751.7 |
Broadcasting and Programming | 2,159.8 | 2,505.0 | (13.8%) | 1,920.2 | 239.6 | 2,159.8 | 1,309.6 | 1,195.4 | 2,505.0 |
Others | (19.9) | 62.1 | (132.0%) | 7.2 | (27.1) | (19.9) | 32.3 | 29.9 | 62.1 |
Subtotal | 2,640.7 | 3,318.8 | (20.4%) | 2,419.1 | 221.5 | 2,640.7 | 1,723.8 | 1,594.9 | 3,318.8 |
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)
| 163.00 |
GCLA (LSE) Price per GDS (USD) | 1.00 |
Total Shares | 106,776,004 |
Shares per GDS | 2 |
Closing Price | November 11, 2022 |
CONFERENCE CALL AND WEBCAST INFORMATION
GRUPO CLARIN S.A.
(BCBA: GCLA; LSE: GCLA)
cordially invites you to participate in its Webcast Presentation
to discuss its Nine months and Third Quarter 2022 Results
Date: Tuesday, November 15, 2022
Time: 1:00pm Buenos Aires Time/4:00pm London Time/11:00am New York Time
To access the live stream and slide presentation, visit:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=MYmQ4022
The webcast presentation will also be available at https://ir.grupoclarin.com
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Samantha Olivieri | Alex Money | Camilla Ferreira and Marcella Ewerton Dragone |
Grupo Clarín S.A. | Jasford IR | Fig Corporate Communications |
Tel: +54 11 4309 7104 | Tel: +44 20 3289 5300 | Tel: +1 917 691-4047 |
Email: investors@grupoclarin.com | E-mail: alex@jasford.com | E-mail: fig@fig.ooo
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ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in Digital and Printed Publications and broadcasting and programming markets. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers and has the largest base of paid digital subscribers 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, 2022 AND 2021,
AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1
AND ENDING ON SEPTEMBER 30, 2022 AND 2021
September 30, 2022 | September 30, 2021 |
| July 1, 2022 through September 30, 2022 |
| July 1, 2021 through September 30, 2021 | ||
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Revenues | 47,115,061,331 | 48,462,851,169 | 15,659,246,469 | 17,420,823,421 | |||
Cost of Sales (1) | (29,371,306,477) | (28,333,601,282) | (9,315,528,626) | (10,103,936,961) | |||
Subtotal - Gross Profit | 17,743,754,854 |
| 20,129,249,887 |
| 6,343,717,843 |
| 7,316,886,460 |
Selling Expenses (1) | (5,727,416,757) | (6,079,124,169) | (1,963,497,920) | (2,124,475,495) | |||
Administrative Expenses (1) | (6,884,227,666) | (7,658,486,045) | (2,374,526,033) | (2,587,678,120) | |||
Other Income and Expenses, net | (48,308,977) | 116,095,154 | 62,154,033 | (20,205,263) | |||
Financial Expenses on Debt | (1,036,203,862) | (723,001,151) | (492,910,003) | (168,253,185) | |||
Gain (Loss) on Net Monetary Position | (2,843,335,998) | (1,587,146,939) | (1,260,825,748) | (442,845,100) | |||
Other Financial Results, net | (777,178,987) | (1,054,085,753) | (130,002,021) | (409,119,139) | |||
Financial Results | (4,656,718,847) | (3,364,233,843) | (1,883,737,772) | (1,020,217,424) | |||
Equity in Earnings from Associates | 237,660,434 | 778,455,454 | (310,413,666) | 63,707,409 | |||
Income (Loss) before Income Tax | 664,743,041 |
| 3,921,956,438 |
| (126,303,515) |
| 1,628,017,567 |
|
|
|
|
|
|
| |
Income Tax | (1,132,395,922) | (1,459,030,639) | (565,239,233) | (1,022,350,320) | |||
Net Income (Loss) for the Period | (467,652,881) |
| 2,462,925,799 |
| (691,542,748) |
| 605,667,247 |
|
| ||||||
Other Comprehensive Income | |||||||
Items which can be reclassified to Net Income (Loss) | |||||||
Variation in Translation Differences of Foreign Operations | (60,599,189) | (61,722,580) | (18,773,995) | (33,291,806) | |||
Other Comprehensive Income (Loss) for the Period | (60,599,189) | (61,722,580) | (18,773,995) | (33,291,806) | |||
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | (528,252,070) |
| 2,401,203,219 |
| (710,316,743) |
| 572,375,441 |
(Loss) Income Attributable to: | |||||||
Shareholders of the Controlling Company | (495,999,790) | 2,413,420,036 | (657,008,913) | 584,418,021 | |||
Non-Controlling Interests | 28,346,909 | 49,505,763 | (34,533,835) | 21,249,226 | |||
Total Comprehensive Income (Loss) Attributable to: | |||||||
Shareholders of the Controlling Company | (556,598,979) | 2,351,861,650 | (675,782,908) | 551,184,546 | |||
Non-Controlling Interests | 28,346,909 | 49,341,569 | (34,533,835) | 21,190,895 | |||
Basic and Diluted Earnings per Share (Note 11) | (4.65) | 22.60 | (6.15) | 5.47 | |||
- |
(1) Includes amortization of intangible assets and film library, right-of-use assets, depreciation of property, plant and equipment, and investment properties in the amount of $ 1,904,088,954 and $ 2,139,491,449 for the nine-month periods ended September 30, 2022 and 2021, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30st, 2022 available at https://ir.grupoclarin.com
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021
| September 30, 2022 | December 31, 2021 | |
ASSETS |
|
|
|
NON-CURRENT ASSETS |
|
|
|
Property, Plant and Equipment | 14,689,740,798 | 16,730,473,820 | |
Intangible Assets | 1,331,570,427 | 1,350,760,614 | |
Investment Properties | 1,827,026,817 | - | |
Goodwill | 45,653,410 | 45,653,410 | |
Deferred Tax Assets | 1,844,186,569 | 2,351,026,099 | |
Investments in Unconsolidated Affiliates | 7,975,417,212 | 7,472,981,346 | |
Other Investments | 375,597,966 | 5,259,898 | |
Right-of-Use Assets | 103,226,332 | 116,103,042 | |
Inventories | 25,891,786 | 277,456,264 | |
Other Assets | 102,494,701 | 133,412,065 | |
Other Receivables | 156,372,113 | 214,055,513 | |
Total Non-Current Assets | 28,477,178,131 | 28,697,182,071 | |
| |||
CURRENT ASSETS | |||
Inventories | 2,619,023,248 | 4,288,528,947 | |
Other Assets | 513,978,439 | 459,817,434 | |
Other Receivables | 4,222,707,018 | 4,449,458,045 | |
Trade Receivables | 14,894,838,373 | 18,717,511,217 | |
Other Investments | 3,329,520,188 | 3,469,557,123 | |
Cash and Banks | 3,648,805,386 | 3,674,579,686 | |
Total Current Assets | 29,228,872,652 | 35,059,452,452 | |
|
| ||
Total Assets | 57,706,050,783 | 63,756,634,523 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Controlling Company | |||
Shareholders' Contribution | 30,524,723,475 | 30,524,723,475 | |
Other Items | (79,104,501) | (18,505,312) | |
Retained Earnings | 4,973,334,520 | 5,469,334,310 | |
Total Attributable to Shareholders of the Controlling Company | 35,418,953,494 | 35,975,552,473 | |
| |||
Attributable to Non-Controlling Interests | 216,751,225 | 241,562,677 | |
Total Equity | 35,635,704,719 | 36,217,115,150 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other Charges | 2,253,538,085 | 2,791,933,447 | |
Financial Debt | 1,421,229,217 | 144,171,312 | |
Deferred Tax Liabilities | 1,497,503,095 | 1,053,397,773 | |
Taxes Payable | 121,516,668 | 12,342,067 | |
Lease Liabilities | 17,774,780 | 25,542,856 | |
Other Liabilities | 826,890,083 | 521,787,879 | |
Trade and Other Payables | 32,207,730 | 46,012,298 | |
Total Non-Current Liabilities | 6,170,659,658 | 4,595,187,632 | |
|
| ||
CURRENT LIABILITIES | |||
Financial Debt | 1,483,186,174 | 2,663,766,996 | |
Taxes Payable | 610,398,179 | 760,712,597 | |
Lease Liabilities | 78,519,362 | 91,807,225 | |
Other Liabilities | 2,333,461,928 | 2,599,746,910 | |
Trade and Other Payables | 11,394,120,763 | 16,828,298,013 | |
Total Current Liabilities | 15,899,686,406 | 22,944,331,741 | |
| |||
Total Liabilities | 22,070,346,064 | 27,539,519,373 | |
|
| ||
Total Equity and Liabilities | 57,706,050,783 | 63,756,634,523 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021
Equity attributable to Shareholders of the Controlling Company | |||||||||||||||||
Shareholders' Contribution | Other Items | Retained Earnings | Total Equity of Controlling Company | Equity Attributable to Non-Controlling Interests | |||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves(1) | Legal Reserve | Voluntary Reserves | Retained Earnings | Total Equity | ||||||||
Balances as of January 1st 2022 | 106,776,004 | 12,715,441,219 | 17,702,506,252 | 30,524,723,475 | 412,194,253 | (430,699,565) | - | 3,743,758,571 | 1,725,575,739 | 35,975,552,473 | 241,562,677 | 36,217,115,150 | |||||
Set-up of Reserves (Note 10.a) | 1,725,575,739 | - | (1,725,575,739) | - | - | - | |||||||||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (53,158,361) | (53,158,361) | |||||
Net Income (Loss) for the Period | - | - | - | - | - | - | - | - | (495,999,790) | (495,999,790) | 28,346,909 | (467,652,881) | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | (60,599,189) | - | - | - | - | (60,599,189) | - | (60,599,189) | |||||
Balances as of September 30, 2022 | 106,776,004 | 12,715,441,219 | 17,702,506,252 | 30,524,723,475 | 351,595,064 | (430,699,565) | 1,725,575,739 | 3,743,758,571 | (495,999,790) | 35,418,953,494 | 216,751,225 | 35,635,704,719 | |||||
Balances as of January 1, 2021 | 106,776,004 | 12,715,441,219 | 18,393,520,608 | 31,215,737,831 | 492,205,418 | (430,699,565) | - | 3,743,758,571 | (691,014,356) | 34,329,987,899 | 240,603,663 | 34,570,591,562 | |||||
Reversal of Additional Paid-in Capital (Note 10.a) | - | - | (691,014,356) | (691,014,356) | - | - | - | - | 691,014,356 | - | - | - | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (77,340,009) | (77,340,009) | |||||
Net Income (Loss) for the Period | - | - | - | - | - | - | - | 2,413,420,036 | 2,413,420,036 | 49,505,763 | 2,462,925,799 | ||||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | (61,558,386) | - | - | -. | - | (61,558,386) | (164,194) | (61,722,580) | |||||
Balances as of September 30, 2021 | 106,776,004
| 12,715,441,219
| 17,702,506,252
| 30,524,723,475
| 430,647,032 | (430,699,565) | - | 3,743,758,571 | 2,413,420,036 | 36,681,849,549
| 212,605,223
| 36,894,454,772
| |||||
(1) Corresponds to Judicial Reserve for Future Dividends Distribution.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021
September 30, 2022 | September 30, 2021 | ||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | |||
Net Income (Loss) for the Period | (467,652,881) | 2,462,925,799 | |
Income Tax | 1,132,395,922 | 1,459,030,639 | |
Accrued Interest, net | 185,877,013 | 15,092,378 | |
Adjustments to reconcile net (loss) income for the period to cash provided by operating activities: | |||
Depreciation of Property, Plant and Equipment | 1,434,837,432 | 1,563,872,981 | |
Amortization of Intangible Assets and Film Library | 321,897,091 | 438,598,347 | |
Amortization of Right-of-Use Assets | 129,924,335 | 137,020,121 | |
Depreciation of Investment Properties | 17,430,096 | - | |
Net Allowances | 552,473,161 | 917,596,150 | |
Financial Income, except Interest | 1,131,857,363 | 1,003,748,126 | |
Gain (Loss) on Net Monetary Position | 2,843,335,998 | 1,587,146,939 | |
Equity in Earnings from Associates | (237,660,434) | (778,455,454) | |
Other Income and Expenses | 34,179,127 | (50,308,730) | |
Changes in Assets and Liabilities: | |||
Trade Receivables | (5,969,399,697) | (6,087,098,587) | |
Other Receivables | (1,797,560,871) | (1,143,593,973) | |
Inventories | 1,212,750,192 | (1,535,545,447) | |
Other Assets | (36,159,091) | 130,720,650 | |
Trade and Other Payables | 2,278,984,618 | 3,413,141,439 | |
Taxes Payable | 729,681,326 | 80,525,869 | |
Other Liabilities | 875,724,826 | 1,987,906,319 | |
Provisions | (137,140,536) | (269,591,701) | |
Payments of Income tax | (913,971,840) | (2,652,795,583) | |
Net Cash Flows provided by Operating Activities | 3,321,803,150 |
| 2,679,936,282 |
CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES |
| ||
Payments for Acquisition of Property, Plant and Equipment | (1,380,025,405) | (1,199,617,010) | |
Payments for Acquisition of Intangible Assets | (302,197,738) | (480,502,263) | |
Certificates of Deposit | (671,971,699) | (722,757,531) | |
Collection from Settlement of Government and Corporate Securities | 13,610,721 | 1,746,308,321 | |
Proceeds from Sale of Property, Plant and Equipment | 16,277,206 | 104,650,846 | |
Dividends Collected | 172,192,558 | 287,161,269 | |
Collection of granted loans | - | 66,449,925 | |
Collection of Loans - interest | - | (38,547,068) | |
Proceeds from Disposal of Unconsolidated Affiliates | 45,547,577 | 102,401,906 | |
Transactions with Securities, Bonds and Other Placements, Net | (693,938,107) | (926,134,557) | |
Payment of capital contributions | (335,681,756) | (292,896,566) | |
Net Cash Flows used in Investing Activities | (3,136,186,643) |
| (1,353,482,728) |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES |
| ||
Loans Obtained | 1,192,740,627 | 942,774,700 | |
Collection of Counter Guarantee (Note 9.a) | 454,630,832 | - | |
Payment of Financial Debt | (500,724,782) | (393,743,268) | |
Payment of Interest | (213,089,197) | (119,274,182) | |
Payment of Lease Liabilities | (116,133,634) | (121,800,016) | |
Payments to Non-Controlling Interests, net | (15,436,965) | (25,443,119) | |
Net Cash Flows provided by Financing Activities | 801,986,881 | 282,514,115 | |
FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS | (1,453,900,042) | (1,177,943,231) | |
(Decrease) Increase in cash flow, net | (466,296,654) |
| 431,024,438 |
Increase (Decrease) of cash from consolidation and deconsolidation of subsidiaries (1) | 1,713,289 | (18,607,772) | |
Cash and Cash Equivalents at the Beginning of the Year | 7,114,742,057 |
| 6,986,894,905 |
Cash and Cash Equivalents at the End of the Period (Note 2.4) | 6,650,158,692 |
| 7,399,311,571 |