21 May 2012 13:00
Grupo Clarín announces its
Results for the First Quarter for 2012 (1Q12)
Buenos Aires, Argentina, May 21st, 2012 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its first quarter results for 2012. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of March 31st, 2012 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1Q12 vs. 1Q11):
§ Net Sales totaled Ps. 2,539.6 million, an increase of 22.4% from 1Q11, 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. 644.3 million, an increase of 5.3% from 1Q11, mainly driven by higher sales in the Cable and Internet access and Printing and Publishing segments.
§ Grupo Clarín's Adjusted EBITDA Margin (2) for 1Q12 was 25.4%, compared to 29.5% in 1Q11.
§ Net Income totaled Ps. 206.3 million, a decrease of 16.7% from the Ps.247.7 million reported in 1Q11. And the Net Income attributable to Equity Shareholders amount to Ps 118.7 million from Ps. 154.0 million, a decrease of 22.9%.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 1Q12 | 1Q11 | % Ch. |
|
Net Sales | 2,539.6 | 2,074.9 | 22.4% |
|
Adjusted EBITDA (1) | 644.3 | 612.1 | 5.3% |
|
Adjusted EBITDA Margin (2) | 25.4% | 29.5% | (14.0%) |
|
Net Income(3) | 206.3 | 247.7 | (16.7%) |
|
Attributable to: |
| |||
Equity Shareholders | 118.7 | 154.0 | (22.9%) |
|
Non-Controlling Interests | 87.6 | 93.7 | (6.5%) |
|
(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.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Alfredo Marín Agustín Medina Manson | Alex Money Helen Greenwood | Melanie Carpenter Pete Majeski |
Grupo Clarín S.A. | Temple Bar Advisory Ltd. | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 7002 1080 | Tel: +1 212 406 3692 |
Email: investors@grupoclarin.com | E-mail: info@templebaradvisory.com | E-mail: clarin@i-advize.com
|
Net sales reached Ps.2,539.6 million, an increase of 22.4% from Ps. 2,074.9 million in 1Q11 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising and circulation sales in the Printing and Publishing segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 1Q12 | 1Q11 | YoY |
Cable TV and Internet Access | 1,792.3 | 1,458.5 | 22.9% |
Printing and Publishing | 546.7 | 439.3 | 24.4% |
Broadcasting and Programming | 218.9 | 200.7 | 9.1% |
Digital Content and Others | 90.8 | 62.9 | 44.3% |
Subtotal | 2,648.7 | 2,161.4 | 22.5% |
Eliminations | (109.1) | (86.5) | 26.2% |
Total | 2,539.6 | 2,074.9 | 22.4% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 1,286.0 million, an increase of 30.6% from Ps. 984.7 million reported for 1Q11 due to higher costs in our business segments, mainly in Cable TV and Internet access and in Printing and Publishing.
Selling and Administrative Expenses(Excluding Depreciation and Amortization) reached Ps. 609.3 million, an increase of27.4% from Ps.478.2 million in 1Q11. This increase was mainly due to higher costs in the Cable TV and Internet access and Printing and Publishing segments.
Adjusted EBITDA reached Ps.644.3 million, an increase of 5.3% from Ps. 612.1 million reported for1Q11, driven by higher sales and EBITDA in the Cable TV and Internet access and in the Printing and Publishing segments; although was partially offset by a negative EBITDA in Broadcasting and Programming segment.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 1Q12 | 1Q11 | YoY |
Cable TV and Internet access | 604.3 | 543.9 | 11.1% |
Printing and Publishing | 57.4 | 46.7 | 22.7% |
Broadcasting and Programming | (26.9) | 15.4 | (274.6%) |
Digital Content and Others | 9.5 | 6.1 | 55.7% |
Subtotal | 644.3 | 612.1 | 5.3% |
Eliminations | - | - | NA |
Total | 644.3 | 612.1 | 5.3% |
Financial results nettotaled Ps.(161.3) million compared to Ps. (85.7) million for 1Q11. The increase was mainly due to higher interest expenses and peso depreciation during 1Q12, which went from Ps 4.30 per dollar at the end of December 2011, to Ps 4.38 per dollar as of March 31th, 2012.
Equity in earnings from unconsolidated affiliates in March 2012 totaled Ps. 13.5 million, compared to Ps. 12.2 million for 1Q11.
Other income (expenses), netreached Ps.(1.9) million, compared to Ps. 11.1 million in March 2011.
Income tax as of March 2012 reached Ps. (82.7) million, from Ps. (129.7) million in March 2011.
Net income totaled Ps.206.3 million, a decrease of16.7% from Ps.247.7 million reported for 1Q11. This was mainlya consequence of higher interest expenses, the peso depreciation and a negative EBITDA in the Broadcasting and Programming segment. The Equity Shareholders Net Income amounted to Ps. 118.7 million, a decrease of 22.9% compared with March 2011.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 244.8 million in 1Q12, an decrease of 24.6% from Ps. 324.7 million reported for1Q11. Out of the total CAPEX in 1Q12, 89.6% was allocated to the Cable TV and Internet access segment, 7.9% to the Broadcasting and Programming segment and the remaining 2.5% 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 March 31st, 2012 was 1.27x and the Net Debt at the end of this period totaled Ps. 2,242.3 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. The Net Debt does not include cash in reserve accounts in Cablevisión S.A.
SALES BREAKDOWN BY SOURCE OF REVENUE - MARCH 2012
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 14.7 | 255.4 | 153.7 | 33.5 | (23.6) | 433.6 | 17.1% |
Circulation | - | 181.6 | - | - | - | 181.6 | 7.1% |
Printing | - | 87.5 | - | - | (9.8) | 77.7 | 3.1% |
Video Subscriptions | 1,352.3 | - | - | - | - | 1,352.3 | 53.2% |
Internet Subscriptions | 377.5 | - | - | - | (0.5) | 376.9 | 14.8% |
Programming | - | - | 53.6 | - | (16.6) | 36.9 | 1.5% |
Other Sales
| 47.9 | 22.2 | 11.7 | 57.3 | (58.5) | 80.5 | 3.2% |
Total Sales | 1,792.3 | 546.7 | 218.9 | 90.8 | (109.1) | 2,539.6 | 100.0% |
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 22.9% to Ps.1,792.3 million for 1Q12compared to Ps. 1,458.5 million for 1Q11. 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 3,488,555 as of March 2012, compared to the 3,372,611 reported for the same date in 2011. Internet subscribers reached 1,385,651 in March 2012, compared to the 1,153,587 of March 2011.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 29.4% to Ps.777.9 million for March 2012, compared to Ps. 601.2 million in March 2011. This was mainly due to higher salaries, cost of goods sold, programming costs, network expenses and fixed assets maintenance costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 30.9% to Ps. 410.1 million for 1Q12, compared to Ps. 313.4 million reported in 1Q11. This increase is driven by higher salaries, fees for services, network and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 21.2% to Ps. 179.0 million for 1Q12 from Ps. 147.7 million reported in 1Q11.
PRINTING AND PUBLISHING
Net Sales
Net sales increased by 24.4% to Ps.546.7 million in 1Q12, compared to Ps. 439.3 million in 1Q11. This was the result of higher sales in advertising, circulation and printing services.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 31.1% to Ps. 324.3 million in 1Q12, compared to Ps. 247.4 million in 1Q11. The increase was mainly the result of higher salaries, fee for services and printing costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 13.7% to Ps. 165.0 million in 1Q12, compared to the Ps. 145.1 million reported for 1Q11. This was primarily the result of higher salaries and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 18.1% to Ps. 16.1 million in 1Q12 compared to Ps. 13.6 million in 1Q11.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 9.1% to Ps. 218.9 million in 1Q12, compared to Ps. 200.7 million in 1Q11. The increase was primarily the result of higher sales related to Canal Trece, partially offset by lower sales in our racing car business and programming content.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 36.7% to Ps. 186.9 million in 1Q12, compared to Ps. 136.8 million in 1Q11. 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 by21.3% to Ps.58.9 million in 1Q12, compared to Ps. 48.5 million in 1Q11. The increase was primarily the result of higher fee for services, salaries and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 0.2% to Ps. 8.2 million in 1Q12 compared to Ps. 8.3 million reported in 1Q11.
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 44.3% to 90.8, from Ps. 62.9 million reported in 1Q11, due to higher fees at Grupo Clarín, higher sales in digital content, Gestión Compartida and trade fairs and exhibitions business. EBITDA resulted in Ps. 9.5 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
1Q12 | 1Q11 | YoY | 4Q11 | QoQ | |
Homes Passed (1) | 7,593.2 | 7,498.0 | 1.3% | 7,586.5 | 0.1% |
Bidirectional Homes Passed | 63.2% | 60.0% | 5.2% | 63.2% | (0.1%) |
Cable TV | |||||
Total Consolidated Subscribers (1)(3) | 3,488.6 | 3,372.6 | 3.4% | 3,490.3 | (0.1%) |
Subscribers - Argentina | 3,259.8 | 3,158.2 | 3.2% | 3,264.4 | (0.1%) |
Subscribers - International | 228.8 | 214.4 | 6.7% | 225.9 | 1.3% |
Uruguay | 110.6 | 103.7 | 6.7% | 110.0 | 0.6% |
Paraguay | 118.1 | 110.8 | 6.7% | 115.9 | 1.9% |
% over Homes Passed | 45.9% | 45.0% | 2.1% | 46.0% | (0.1%) |
Total Equity Subscribers(4) | 3,564.0 | 3,449.5 | 3.3% | 3,566.6 | (0.1%) |
Churn Rate % | 16.1% | 15.0% | 7.8% | 15.5% | 4.1% |
Digital Video | |||||
Digital Ready Pay TV Subs | 2,763.7 | 2,412.8 | 14.5% | 2,656.0 | 4.1% |
Total Digital Decoders | 1,101.6 | 741.7 | 48.5% | 1,082.5 | 1.8% |
Argentina | 882.8 | 622.1 | 41.9% | 875.0 | 0.9% |
International | 218.8 | 119.6 | 82.9% | 207.6 | 5.4% |
Penetration over Digital Ready TV Subs | 39.9% | 30.7% | 29.7% | 40.8% | (2.2%) |
Internet Subscribers | |||||
Total Internet Subscribers (1) | 1,385.7 | 1,153.6 | 20.1% | 1,351.1 | 2.6% |
Cablemodem(1) | 1,366.8 | 1,129.4 | 21.0% | 1,331.3 | 2.7% |
ADSL(1) | 11.5 | 15.2 | (24.6%) | 12.1 | (5.3%) |
Dial Up (1) | 7.4 | 8.9 | (17.0%) | 7.6 | (3.3%) |
% over Bidirectional Homes Passed | 28.9% | 25.6% | 12.7% | 28.2% | 2.5% |
Total ARPU(2) | 171.2 | 144.5 | 18.5% | NA | NA |
(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
1Q12 | 1Q11 | YoY | 4Q11 | QoQ | |
Circulation (1) | 316.8 | 336.9 | (6.0%) | 315.0 | 0.6% |
Circulation share % (2) | 39.2% | 40.2% | (2.6%) | 39.3% | (0.4%) |
Advertising share %(3) | 51.9% | 55.7% | (6.8%) | 53.5% | (2.9%) |
(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
1Q12 | 1Q11 | YoY | 4Q11 | QoQ | |
Advertising Share % (1) | 34.5% | 33.1% | 4.1% | 37.8% | (8.8%) |
Audience Share % (2) | |||||
Prime Time | 35.7% | 38.4% | (7.0%) | 45.0% | (20.6%) |
Total Time | 29.6% | 31.4% | (5.7%) | 34.2% | (13.4%) |
(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
1Q12 | 1Q11 | YoY | |
Page Views (1) | 598.1 | 505.4 | 18.3% |
Unique Visitors(1) | 26.9 | 22.0 | 22.0% |
(1)In millions. Average. Source IAB, Certifica and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | March 12 | March 11 | % Change | December 11 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 497.6 | 281.8 | 76.6% | 446.7 | 11.4% |
Financial loans | 153.6 | 40.0 | 283.9% | 118.6 | 29.5% |
Negotiable obligations | 197.2 | 134.9 | 46.1% | 129.0 | 52.8% |
Accrued interest | 41.7 | 36.4 | 14.7% | 86.0 | (51.5%) |
Acquisition of equipment | 47.1 | 35.8 | 31.6% | 40.3 | 16.9% |
Sellers Financing Capital | 5.3 | 4.4 | 21.4% | 8.2 | (35.1%) |
Related Parties Capital | 14.3 | 6.5 | 119.2% | 13.2 | 8.4% |
Related Parties accrued interest | 0.1 | 0.1 | 131.3% | 0.1 | 27.7% |
Bank overdraft | 38.3 | 23.7 | 61.6% | 51.3 | (25.4%) |
Non-Current Financial Debt | 2,781.1 | 2,221.4 | 25.2% | 2,808.7 | (1.0%) |
Financial loans | 108.6 | 102.7 | 5.7% | 127.8 | (15.0%) |
Negotiable obligations | 2,566.4 | 2,069.2 | 24.0% | 2,584.0 | (0.7%) |
Accrued interest | 0.1 | 0.1 | (40.3%) | 0.0 | 50.0% |
Acquisition of equipment | 95.1 | 43.2 | 120.3% | 90.4 | 5.2% |
Sellers Financing Capital | 0.6 | 0.9 | (36.3%) | 0.8 | (28.5%) |
Related Parties Capital | 4.9 | 4.2 | 15.4% | 4.2 | 15.4% |
Related accrued interest | 1.6 | 1.0 | 63.1% | 1.5 | 10.6% |
Bank overdraft | 3.9 | 0.0 | NA | 0.0 | NA |
Total Financial Debt (A) | 3,278.7 | 2,503.2 | 31.0% | 3,255.4 | 0.7% |
Measurement at fair Value | (55.9) | (53.8) | 4.0% | (54.7) | 2.2% |
Total Short Term and Long Term Debt | 3,222.8 | 2,449.4 | 31.6% | 3,200.7 | 0.7% |
Cash and Cash Equivalents (B)* | 1,036.4 | 829.8 | 24.9% | 876.3 | 18.3% |
Net Debt (A) - (B) | 2,242.3 | 1,673.4 | 34.0% | 2,379.1 | (5.7%) |
Net Debt/Adjusted EBITDA(1) | 0.87x | 0.68x | 27.3% | 0.93x | (6.2%) |
% USD Debt | 94.4% | 94.7% | (0.3%) | 94.5% | (0.2%) |
% Ar. Ps Debt | 5.6% | 5.3% | 5.5% | 5.5% | 2.7% |
* Does not include cash in reserve accounts in Cablevisión S.A.
Total Financial Debt(2) and Net Debt, increased from Ps. 2,503.2 million to Ps. 3,278.7 million and from Ps. 1,673.4 million to Ps. 2,242.3 million. This represents an increase of 31.0% in the Total Debt and 34.0% in the Net Debt.
Debt coverage ratio (2) as of March 31st, 2012 was 0.87x in the case of Net Debt and of 1.27x in terms of Total Financial Debt.
(1) Last Quarter Annualized EBITDA (for March 12 and March 11) and Last Twelve Months (December 11).
(2) Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized).
RELEVANT MATTERS
GRUPO CLARIN S.A. ANNOUNCES PAYMENT OF CASH DIVIDENDS
On 7 May 2012, Grupo Clarín S.A. (the "Company") informed the Buenos Aires Stock Exchange that pursuant to the resolutions passed by the Shareholders Meeting held on April 26, 2012, the payment of the dividend will be made starting on May 21, 2012 in the amount of AR$ 135,000,000 (Argentine Pesos one hundred and thirty five Million). The amount to be distributed is in the equivalent to AR$ 0.4697 per share or AR$0.9394 per GDS.
In the case of GDS holders, the record date has been set on May 18, 2012 and payment is expected to occur on May 29, 2012, through the Depositary, JP Morgan Chase N.A.
For holders of common stock, payment will be available starting on May 21, 2012 through Caja de Valores S.A., 25 de Mayo Street, 362, Ciudad Autónoma de Buenos Aires, Argentina, in compliance with applicable laws and regulations.
TRANSITION TO IFRS
The Argentine Securities Commission ("CNV" for its Spanish acronym) has established, through General Resolutions No. 562 and 576, as mandatory for public companies in Argentina, the implementation of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
The mandatory adoption of IFRS is effective for fiscal year beginning January 1, 2012; starting with the first quarterly financial statements corresponding to March 31, 2012.
Therefore, in compliance with CNV Resolutions, the Company´s figures for the first quarterly financial statement for 2012 and the comparative figures have been prepared in accordance to IFRS.
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)
| 8.50 |
GCLA (LSE) Price per GDS (USD) | 3.50 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 503.0 |
Closing Price | May 18th, 2012 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its First Quarter Results for 2012, on Monday, May 21th, 2012.
Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marin, Investor Relations Officer.
Time: 12:00 pm Buenos Aires Time/4:00 pm London Time/11:00 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 40330154. 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 May 21th, and archived in our Website after its conclusion.
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in 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
AS OF MARCH 31, 2012 AND 2011
In Argentine Pesos (Ps.)
March 31, 2012 | March 31, 2011 | |||
Revenues | 2,539,595,199 | 2,074,926,048 | ||
Cost of Sales (1) | (1,472,914,121) | (1,140,617,060) | ||
Subtotal - Gross profit | 1,066,681,078 | 934,308,988 | ||
Selling Expenses (1) | (296,334,758) | (247,303,823) | ||
Administrative Expenses (1) | (331,694,839) | (247,295,654) | ||
Financial Income | 30,238,733 | 51,509,579 | ||
Financial Costs | (191,512,347) | (137,218,778) | ||
Other Income and Expense, net | (1,932,259) | 11,125,153 | ||
Equity in Earnings from Affiliates and Subsidiaries | 13,503,600 | 12,227,120 | ||
Income before Income Tax and Tax on Assets | 288,949,208 | 377,352,585 | ||
Income Tax and Tax on Assets | (82,650,620) | (129,652,259) | ||
Income for the period | 206,298,588 | 247,700,326 | ||
Other Comprehensive Income | ||||
Translation Differences of Foreign Operations | 9,597,858 | 38,014,478 | ||
Other Comprehensive Income for the period | 9,597,858 | 38,014,478 | ||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 215,896,446 | 285,714,804 | ||
Profit Attributable to: | ||||
Shareholders of the Parent Company | 118,683,453 | 154,001,128 | ||
Non-Controlling Interests | 87,615,135 | 93,699,198 | ||
Total Comprehensive Income Attributable to: | ||||
Shareholders of the Parent Company | 123,684,322 | 171,130,714 | ||
Non-Controlling Interests | 92,212,124 | 114,584,090 | ||
Basic Earnings per share | 0.41 | 0.54 | ||
Diluted Earnings per share | 0.41 | 0.54 | ||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 205,634,937 and Ps. 172,351,672 as of March 31, 2012 and 2011, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of March 31st, 2012, available at http://www.grupoclarin.com/ir
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2012, DECEMBER 31, 2011 AND JANUARY 1, 2011
In Argentine Pesos (Ps.)
March 31, 2012 | December 31, 2011 | January 1, 2011 | ||||
ASSETS | ||||||
NON-CURRENT ASSETS | ||||||
Property, Plant and Equipment | 3,744,858,659 | 3,665,276,048 | 2,822,810,673 | |||
Intangible Assets | 598,278,216 | 622,168,215 | 715,133,399 | |||
Goodwill | 2,739,962,162 | 2,739,655,126 | 2,700,177,279 | |||
Net Deferred Tax Assets | 49,486,806 | 34,471,919 | 27,151,922 | |||
Investment in Unconsolidated Affiliates | 402,025,218 | 387,673,671 | 345,840,683 | |||
Other Investments | 122,254 | 109,855 | 177,403 | |||
Inventories | 18,101,763 | 13,139,000 | 21,340,016 | |||
Other Assets | 1,546,765 | 1,546,764 | 2,204,616 | |||
Other Receivables | 220,746,443 | 205,230,179 | 95,888,460 | |||
Trade Receivables | 122,478,688 | 122,595,188 | 1,102,833 | |||
Total Non-Current Assets | 7,897,606,974 | 7,791,865,965 | 6,731,827,284 | |||
CURRENT ASSETS | ||||||
Inventories | 406,979,249 | 371,180,023 | 252,092,555 | |||
Other Assets | 14,283,064 | 11,467,311 | 78,594,494 | |||
Other Receivables | 423,868,728 | 372,396,801 | 280,160,389 | |||
Trade Receivables | 1,150,418,922 | 1,224,589,935 | 954,007,800 | |||
Other Investments | 533,036,528 | 247,188,625 | 264,964,642 | |||
Cash and Banks | 503,358,502 | 629,155,403 | 332,257,837 | |||
Total Current Assets | 3,031,944,993 | 2,855,978,098 | 2,162,077,717 | |||
Total Assets | 10,929,551,967 | 10,647,844,063 | 8,893,905,001 | |||
SHAREHOLDERS' EQUITY (as per the corresponding statement) | ||||||
Attributable to Shareholders of the Parent Company | 3,757,826,429 | 3,634,142,107 | 3,203,295,205 | |||
Attributable to Non-Controlling Interests | 1,154,193,993 | 1,063,645,779 | 936,398,963 | |||
Total Shareholders' Equity | 4,912,020,422 | 4,697,787,886 | 4,139,694,168 | |||
LIABILITIES | ||||||
NON-CURRENT LIABILITIES | ||||||
Accruals and Other | 194,825,874 | 193,039,012 | 159,947,261 | |||
Long-term Debt | 2,724,512,284 | 2,749,309,434 | 2,117,587,216 | |||
Sellers Financing | 583,994 | 816,853 | 1,127,017 | |||
Net Deferred Tax Liabilities | 163,345,659 | 182,336,021 | 219,731,774 | |||
Taxes Payable | 86,730,415 | 79,195,842 | 83,639,832 | |||
Other Liabilities | 91,028,824 | 104,354,485 | 89,429,579 | |||
Trade Payables and Other | 10,975,298 | 10,198,755 | 12,450,978 | |||
Total Non-Current Liabilities | 3,272,002,348 | 3,319,250,402 | 2,683,913,657 | |||
CURRENT LIABILITIES | ||||||
Long-term Debt | 492,432,532 | 442,432,030 | 260,618,199 | |||
Sellers Financing | 5,306,592 | 8,178,434 | 3,796,354 | |||
Taxes Payable | 295,478,546 | 299,925,923 | 472,091,432 | |||
Other Liabilities | 229,689,071 | 148,728,234 | 127,596,292 | |||
Trade Payables and Other | 1,722,622,456 | 1,731,541,154 | 1,206,194,899 | |||
Total Current Liabilities | 2,745,529,197 | 2,630,805,775 | 2,070,297,176 | |||
Total Liabilities | 6,017,531,545 | 5,950,056,177 | 4,754,210,833 | |||
Total Liabilities and Shareholders' Equity | 10,929,551,967 | 10,647,844,063 | 8,893,905,001 | |||
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
AS OF MARCH 31, 2012 AND 2011
In Argentine Pesos (Ps.)
March 31, 2012 | March 31, 2011 | ||
CASH PROVIDED BY OPERATING ACTIVITIES | |||
Income for the period | 206,298,588 | 247,700,326 | |
Income Tax and Tax on Assets | 82,650,620 | 129,652,259 | |
Accrued Interest, net | 65,792,596 | 56,179,013 | |
Adjustments to reconcile net income for the period to cash provided by operating activities: | |||
Depreciation of Property, Plant and Equipment | 171,067,291 | 138,727,989 | |
Amortization of Intangible Assets and Film Library | 34,567,646 | 33,623,683 | |
Allowance for Doubtful Accounts | 18,566,408 | 13,949,428 | |
Provision for Contingencies | 13,143,059 | 12,768,041 | |
Allowance for Impairment of Inventories and Materials | 8,774,224 | 942,940 | |
Exchange Difference and Other Financial Results | 55,211,733 | 30,422,244 | |
Equity in Earnings from Unconsolidated Affiliates, net | (13,503,600) | (12,227,120) | |
Holding Losses (Gains) on Derivatives | 4,127,875 | (1,036,242) | |
Income from Sale of Property, Plant and Equipment | (1,580,163) | (6,401,110) | |
Disposal of Long-Term Investments | - | (6,657,315) | |
Financial Debt Financing Result | - | (41,021,843) | |
Changes in Assets and Liabilities: | |||
Trade Receivables | 39,381,813 | 21,509,836 | |
Other Receivables | (47,728,123) | (98,921,745) | |
Inventories | (49,274,063) | (80,961,628) | |
Other assets | (4,346,713) | (3,679,589) | |
Trade Payables and Other | (10,877,132) | 119,848,334 | |
Taxes Payable | (5,436,624) | (6,325,327) | |
Other Liabilities | 63,467,251 | (10,539,119) | |
Provisions | (11,710,499) | (4,277,491) | |
Income Tax and Tax on Assets Payments | (111,388,021) | (60,733,736) | |
Net Cash Flows Provided by Operating Activities | 507,204,166 | 472,541,828 | |
CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
Acquisition of Property, Plant and Equipment, net | (244,835,763) | (324,666,241) | |
Acquisition of Intangible Assets | (9,107,035) | (11,409,898) | |
Acquisition of Subsidiaries, Net of Cash Acquired | (1,737,342) | (2,461,184) | |
Proceeds from Sale of Property, Plant and Equipment | 1,343,900 | 9,530,085 | |
Proceeds from the Disposal of Long-Term Investments | - | 14,470,615 | |
Certificates of Deposit | (4,848,000) | - | |
Collections of Certificates of Deposit | 10,398,767 | - | |
Net Cash Flows used in Investment Activities | (248,785,473) | (314,536,623) | |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
AS OF MARCH 31, 2012 AND 2011
In Argentine Pesos (Ps.)
March 31, 2012 | March 31, 2011 | ||
CASH PROVIDED BY FINANCING ACTIVITIES | |||
Loans Obtained | 46,649,136 | 102,982,240 | |
Repayment of Loans and Issue Expenses | (31,974,376) | (38,517,392) | |
Payment of Interest | (119,358,936) | (50,997,247) | |
Payments on Derivatives, Net | (1,412,500) | - | |
Payment of Sellers Financing | (185,278) | (188,548) | |
(Setup) Transfer of Reserve Account / Escrow Funds | (652) | 65,786,134 | |
Payments to Non-Controlling Interests, net | (1,663,910) | (1,227,049) | |
Net Cash Flows (used in) provided by Financing Activities | (107,946,516) | 77,838,138 | |
FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 15,725,169 | 7,633,466 | |
Net Increase in cash flow | 166,197,346 |
| 243,476,809 |
Cash and Cash Equivalents at the Beginning of the Year | 865,580,054 |
| 585,948,351 |
Cash and Cash Equivalents at the End of the Period | 1,031,777,400 |
| 829,425,160 |