11 Mar 2013 12:00
Grupo Clarín announces its
Results for the Fourth Quarter (4Q12) and Full Year of 2012 (FY12)
Buenos Aires, Argentina, March 11th, 2013 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its fourth quarter and full year results for 2012. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of December 31th, 2012 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (FY12 vs. FY11):
§ Net Sales totaled Ps.11,318.9 million, an increase of 21.4% from 2011, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher sales in the Printing and Publishing segment.
§ Adjusted EBITDA (1) reached Ps. 2,772.7 million, an increase of 12.0% from 2011, mainly driven by higher sales in the Cable and Internet access segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) for 2012 was 24.5%, compared to 26.5% in 2011.
§ Net Income totaled Ps. 972.3 million; an increase of 23.8% from the Ps. 785.6 million reported in 2011, while Net Income attributable to Equity Shareholders decreased 6.3% to Ps 482.3 million from Ps. 514.8 million reported 2011.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 2012 | 2011 | % Ch. | 4Q12 | 3Q12 | 4Q11 | QoQ | YoY |
Net Sales | 11,318.9 | 9,325.2 | 21.4% | 3,176.9 | 2,930.2 | 2,715.0 | 8.4% | 17.0% |
Adjusted EBITDA (1) | 2,772.7 | 2,475.6 | 12.0% | 733.3 | 711.8 | 647.4 | 3.0% | 13.3% |
Adjusted EBITDA Margin (2) | 24.5% | 26.5% | (7.7%) | 23.1% | 24.3% | 23.8% | (5.0%) | (3.2%) |
Net Income(3) | 972.3 | 785.6 | 23.8% | 415.9 | 156.3 | 124.3 | 166.1% | 234.6% |
Attributable to: | ||||||||
Equity Shareholders | 482.3 | 514.8 | (6.3%) | 166.9 | 89.1 | 80.9 | 87.3% | 106.3% |
Non-Controlling Interests | 490.0 | 270.9 | 80.9% | 249.0 | 67.2 | 43.4 | 270.6% | 473.3% |
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies on the basis of operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
(3) We define Net Income as Income for the period.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Alfredo Marín Agustín Medina Manson | Alex Money Clare Gallagher | Melanie Carpenter Pete Majeski |
Grupo Clarín S.A. | Temple Bar Advisory Ltd. | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 7002 1080 | Tel: +1 212 406 3692 |
Email: investors@grupoclarin.com | E-mail: info@templebaradvisory.com | E-mail: clarin@i-advize.com
|
Net Sales reached Ps. 11,318.9 million, an increase of 21.4% from Ps. 9,325.2 million in 2011 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.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 2012 | 2011 | YoY | 4Q12 | 3Q12 | 4Q11 | QoQ | YoY |
Cable TV and Internet Access | 7,601.6 | 6,097.3 | 24.7% | 2,091.3 | 1,946.1 | 1,799.6 | 7.5% | 16.2% |
Printing and Publishing | 2,385.7 | 2,089.2 | 14.2% | 663.9 | 597.4 | 578.0 | 11.1% | 14.9% |
Broadcasting and Programming | 1,449.0 | 1,268.7 | 14.2% | 468.0 | 417.1 | 388.1 | 12.2% | 20.6% |
Digital Content and Others | 363.8 | 283.0 | 28.6% | 97.8 | 92.0 | 62.8 | 6.3% | 55.7% |
Subtotal | 11,800.1 | 9,738.2 | 21.2% | 3,321.0 | 3,052.6 | 2,828.5 | 8.8% | 17.4% |
Eliminations | (481.2) | (412.9) | 16.5% | (144.0) | (122.4) | (113.5) | 17.6% | 26.9% |
Total | 11,318.9 | 9,325.2 | 21.4% | 3,176.9 | 2,930.2 | 2,715.0 | 8.4% | 17.0% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 5,713.0 million, an increase of 21.9% from Ps. 4,685.5 million reported for 2011 due to higher costs in our business segments, mainly in Cable TV and Internet Access and in Broadcasting and Programming segments.
Selling and Administrative Expenses(Excluding Depreciation and Amortization) reached Ps. 2,833.2 million, an increase of 30.9% from Ps. 2,164.1 million in 2011. This increase was mainly due to higher costs in the Cable TV and Internet access and Printing and Publishing segments.
Adjusted EBITDA reached Ps.2,772.7 million, an increase of 12.0% from the Ps. 2,475.6 million reported for2011, driven by higher sales in the Cable TV and Internet access segment, though partially offset by a lower EBITDA in the Broadcasting and Programming and Printing and Publishing segments.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 2012 | 2011 | YoY | 4Q12 | 3Q12 | 4Q11 | QoQ | YoY |
Cable TV and Internet access | 2,406.9 | 1,963.8 | 22.6% | 573.8 | 621.0 | 505.5 | (7.6%) | 13.5% |
Printing and Publishing | 229.9 | 259.7 | (11.5%) | 72.4 | 46.1 | 79.5 | 56.9% | (9.0%) |
Broadcasting and Programming | 136.1 | 252.7 | (46.2%) | 94.2 | 45.2 | 75.3 | 108.6% | 25.1% |
Digital Content and Others | (0.2) | (0.6) | 64.7% | (7.1) | (0.5) | (12.9) | (1,246.3%) | 45.3% |
Subtotal | 2,772.7 | 2,475.6 | 12.0% | 733.3 | 711.8 | 647.4 | 3.0% | 13.3% |
Eliminations | - | - | NA | - | - | - | NA | NA |
Total | 2,772.7 | 2,475.6 | 12.0% | 733.3 | 711.8 | 647.4 | 3.0% | 13.3% |
Financial Results Net totaled Ps. (916.2) million compared to Ps. (582.1) million for 2011. The increase was mainly due to higher interest expenses and peso depreciation during 2012, which went from Ps 4.30 per dollar at the end of December 2011, to Ps 4.92 per dollar as of December 31th, 2012.
Equity in Earnings from Unconsolidated Affiliates in 2012 totaled Ps. 13.7 million, compared to Ps. 33.7 million for 2011.
Other Income (expenses), Netreached Ps.0.6 million, compared to Ps. 1.5 million in 2011.
Income Tax as of December 2012 reached Ps. (524.9) million, from Ps. (425.0) million in December 2011.
Income from Discontinued Operations, reached Ps. 498.7 million, compared to Ps.47.3 million in 2011.
Net Income totaled Ps. 972.3 million, an increase of 23.8% from Ps. 785.6 million reported for 2011. This was mainly a consequence of higher EBITDA in the Cable TV and Internet access and the income relating to the sale of the discontinued operations of Cablevisión's subsidiaries in Paraguay. Also it was partially offset by a lower EBITDA in the Broadcasting and Programming and higher peso depreciation. The Equity Shareholders Net Income amounted to Ps. 482.3million, a decrease of 6.3% compared with figures of December 2011.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 1,383.0 million in 2012, a decrease of 6.4% from Ps. 1,478.1 million reported for 2011. Out of the total CAPEX in 2012, 93.5% was allocated to the Cable TV and Internet access segment, 3.7% to the Broadcasting and Programming segment and the remaining 2.8% to other activities. Capex in the Cable TV and Internet Access segment pertains to subscriber growth, network upgrades and digitalization.
Debt profile (1): Debt coverage ratio for the period ended December 31th, 2012 was 1.17x and the Net Debt at the end of this period totaled Ps. 1,934.9 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Twelve Months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2012
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 49.7 | 1,251.8 | 1,069.6 | 51.2 | (126.5) | 2,295.7 | 20.3% |
Circulation | - | 879.5 | - | - | - | 879.5 | 7.8% |
Printing | - | 169.0 | - | - | (43.5) | 125.6 | 1.1% |
Video Subscriptions | 5,704.8 | - | - | - | - | 5,704.8 | 50.4% |
Internet Subscriptions | 1,595.2 | - | - | - | (6.8) | 1,588.4 | 14.0% |
Programming | - | - | 244.9 | - | (70.4) | 174.5 | 1.5% |
Other Sales
| 251.9 | 85.4 | 134.5 | 312.6 | (234.0) | 550.5 | 4.9% |
Total Sales | 7,601.6 | 2,385.7 | 1,449.0 | 363.8 | (481.2) | 11,318.9 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2011
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 44.0 | 1,184.3 | 979.3 | 21.6 | (125.7) | 2,103.5 | 22.6% |
Circulation | - | 645.4 | - | - | - | 645.4 | 6.9% |
Printing | - | 184.9 | - | - | (34.3) | 150.6 | 1.6% |
Video Subscriptions | 4,429.0 | - | - | - | - | 4,429.0 | 47.5% |
Internet Subscriptions | 1,356.1 | - | - | - | (2.9) | 1,353.2 | 14.5% |
Programming | - | - | 191.0 | - | (57.9) | 133.1 | 1.4% |
Other Sales
| 268.3 | 74.6 | 98.4 | 261.4 | (192.1) | 510.6 | 5.5% |
Total Sales | 6,097.3 | 2,089.2 | 1,268.7 | 283.0 | (412.9) | 9,325.2 | 100.0% |
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales in 2012 increased by 24.7%to Ps. 7,601.6 million for 2012 compared to Ps. 6,097.3 million for 2011. 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 3,404,698 as of December 2012, compared to the 3,374,438 (*) reported for the same date in 2011. Internet subscribers reached 1,504,380 in December 2012, compared to the 1,339,802(*) of December 2011.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 21.5% to Ps. 3,311.0 million for December 2012, compared to Ps. 2,724.4 million in December 2011. This was mainly due to higher salaries, programming costs and network expenses and fixed assets maintenance costs, though was partially offset by a lower cost of the goods sold.
(*) Total Consolidated Cable TV subscribers do not include those from discontinued operations in Paraguay (115,882 Cable TV subs and 11,305 internet subscribers, registered for the period ended in December 2011).
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 33.7% to Ps. 1,883.7 million for 2012, compared to the Ps. 1,409.1 million reported in 2011. This increase is driven by higher salaries, fees for services, taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 18.7% to Ps. 767.2 million for 2012 from Ps. 646.5 million reported in 2011.
PRINTING AND PUBLISHING
Net Sales
The 14.2% increase of Net Sales to Ps. 2,385.7 million in 2012 was the result of higher advertising and circulation sales, although it was partially offset by less printing services revenues.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 17.4% to Ps. 1,383.5 million in 2012, compared to Ps. 1,178.2 million in 2011. The increase was mainly the result of higher salaries and cost of the goods sold.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 18.6% to Ps. 772.3 million in 2012, compared to the Ps. 651.3 million reported for 2011. This was primarily the result of higher salaries, fees for services and taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increase by 5.4% to Ps. 56.8 million in 2012 compared to Ps. 53.9 million in 2011.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 14.2% to Ps. 1,449.0 million in 2012, compared to Ps. 1,268.7 million in 2011. The increase was primarily the result of higher sales related to Canal Trece and programming content, partially offset by lower sales in the racing car business.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 29.4% to Ps. 1,025.1 million in 2012, compared to Ps. 792.1 million in 2011. This is attributable mainly to higher salaries, production costs and fees to artists.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 28.6% to Ps. 287.9 million in 2012, compared to Ps. 223.9 million in 2011. The increase was primarily the result of higher salaries, fee for services and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 30.9% to Ps. 37.0 million in 2012 compared to Ps. 53.5 million reported in 2011.
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 28.6% to Ps. 363.8, from Ps. 283.0 million reported in 2011, due to higher fees at Grupo Clarín, higher sales in digital content, Gestión Compartida and trade fairs and exhibitions business. EBITDA resulted negative by Ps. 0.2 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
2012 | 2011 | YoY | 4Q12 | 3Q12 | 4Q11 | QoQ | YoY | |||||||||
Homes Passed (1) | 7,455.9 | 7,586.5 | (1.7%) | 7,455.9 | 7,590.8 | 7,586.5 | (1.8%) | (1.7%) |
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Bidirectional Homes Passed | 63.9% | 63.2% | 1.1% | 63.9% | 63.7% | 63.2% | 0.2% | 1.1% |
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Cable TV |
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Total Consolidated Subscribers (1)(3) | 3,404.7 | 3,490.3 | (2.5%) | 3,404.7 | 3,544.8 | 3,490.3 | (4.0%) | (2.5%) |
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Subscribers - Argentina | 3,288.8 | 3,264.4 | 0.7% | 3,288.8 | 3,305.6 | 3,264.4 | (0.5%) | 0.7% |
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Subscribers - International | 115.9 | 225.9 | (48.7%) | 115.9 | 239.1 | 225.9 | (51.5%) | (48.7%) |
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Uruguay | 115.9 | 110.0 | 5.4% | 115.9 | 116.2 | 110.0 | (0.3%) | 5.4% |
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Paraguay | - | 115.9 | - (100.0%) | - | 122.9 | 115.9 | - (100.0%) | (100.0%) |
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% over Homes Passed | 45.7% | 46.0% | (0.7%) | 45.7% | 46.7% | 46.0% | (2.2%) | (0.7%) |
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Total Equity Subscribers(5) | 3,523.2 | 3,566.6 | (1.2%) | 3,523.2 | 3,623.7 | 3,566.6 | (2.8%) | (1.2%) |
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Churn Rate % | 15.0% | 15.1% | (0.2%) | 16.0% | 13.4% | 15.5% | 19.0% | 3.0% |
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Digital Video (1)(3) |
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Digital Ready Pay TV Subs | 2,689.3 | 2,656.0 | 1.3% | 2,689.3 | 2,817.3 | 2,656.0 | (4.5%) | 1.3% |
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Total Digital Decoders | 1,107.2 | 1,082.5 | 2.3% | 1,107.2 | 1,185.6 | 1,082.5 | (6.6%) | 2.3% |
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Argentina | 990.0 | 875.0 | 13.1% | 990.0 | 944.4 | 875.0 | 4.8% | 13.1% |
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International | 117.2 | 207.6 | (43.5%) | 117.2 | 241.2 | 207.6 | (51.4%) | (43.5%) |
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Penetration over Digital Ready TV Subs | 41.2% | 40.8% | 1.0% | 41.2% | 42.1% | 40.8% | (2.2%) | 1.0% |
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Internet Subscribers(1)(3)(4) |
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Total Internet Subscribers (1)(4) | 1,504.4 | 1,351.1 | 11.3% | 1,504.4 | 1,490.9 | 1,351.1 | 0.9% | 11.3% |
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Cablemodem(1) | 1,489.4 | 1,331.3 | 11.9% | 1,489.4 | 1,474.8 | 1,331.3 | 1.0% | 11.9% |
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ADSL(1) | 8.40 | 12.1 | (30.8%) | 8.4 | 9.2 | 12.1 | (8.6%) | (30.8%) |
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Dial Up (1) | 6.6 | 7.6 | (13.9%) | 6.6 | 6.9 | 7.6 | (5.0%) | (13.9%) |
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% over Bidirectional Homes Passed | 31.6% | 28.2% | 12.0% | 31.6% | 30.8% | 28.2% | 2.5% | 12.0% |
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Total ARPU(2) | 186.9 | 153.4 | 21.9% | 204.2 | 190.4 | 178.1 | 7.3% | 14.7% |
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(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers (does not include subscribers from discontinued operations in Paraguay).
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total Internet Subscribers includes those from discontinued operations in Paraguay (13,654 and 11,305 subs for periods 3Q12 and 2011 respectively).
(5) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
2012 | 2011 | YoY | 4Q12 | 3Q12 | 4Q11 | QoQ | YoY | |
Circulation (1) | 311.7 | 331.2 | (5.9%) | 301.8 | 308.4 | 315.0 | (2.2%) | (4.2%) |
Circulation share % (2) | 38.7% | 40.0% | (3.3%) | 38.8% | 38.2% | 39.3% | 1.5% | (1.3%) |
Advertising share %(3) | 50.3% | 54.0% | (6.9%) | 49.5% | 49.8% | 53.5% | (0.7%) | (7.5%) |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: AGEA and IVC.
(3) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: Monitor de Medios Publicitarios S.A.
BROADCASTING AND PROGRAMMING
2012 | 2011 | YoY | 4Q12 | 3Q12 | 4Q11 | QoQ | YoY | |
Advertising Share % (1) | 36.6% | 36.6% | 0.1% | 37.3% | 37.9% | 37.8% | (1.6%) | (1.4%) |
Audience Share % (2) | ||||||||
Prime Time | 35.9% | 42.2% | (15.1%) | 34.1% | 35.4% | 45.0% | (3.8%) | (24.3%) |
Total Time | 29.4% | 33.0% | (10.9%) | 28.8% | 28.8% | 34.2% | (0.1%) | (15.8%) |
(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
2012 | 2011 | YoY | |
Page Views (1) | 625.3 | 613.9 | 1.9% |
Unique Visitors(1) | 27.9 | 25.9 | 7.6% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | December 12 | December 11 | % Change | September 12 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 501.3 | 446.7 | 12.2% | 643.9 | (22.1%) |
Financial loans | 130.6 | 118.6 | 10.1% | 200.2 | (34.8%) |
Negotiable obligations | 165.2 | 129.0 | 28.1% | 282.0 | (41.4%) |
Accrued interest | 95.0 | 86.0 | 10.5% | 41.9 | 126.9% |
Acquisition of equipment | 70.1 | 40.3 | 74.1% | 59.1 | 18.6% |
Sellers Financing Capital | 1.1 | 8.2 | (86.5%) | 1.1 | 4.2% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 13.2 | 13.2 | 0.3% | 3.4 | 288.1% |
Related Parties accrued interest | 0.1 | 0.1 | 6.8% | 0.0 | 419.0% |
Bank overdraft | 25.9 | 51.3 | (49.5%) | 56.3 | (53.9%) |
Non-Current Financial Debt | 2,738.3 | 2,808.7 | (2.5%) | 2,752.2 | (0.5%) |
Financial loans | 24.5 | 127.8 | (80.8%) | 36.2 | (32.3%) |
Negotiable obligations | 2,576.7 | 2,584.0 | (0.3%) | 2,588.8 | (0.5%) |
Accrued interest | - | - | NA | - | NA |
Acquisition of equipment | 131.0 | 90.4 | 44.9% | 121.2 | 8.1% |
Sellers Financing Capital | 0.3 | 0.8 | (60.2%) | 0.3 | 3.8% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 4.2 | 4.2 | - | 4.2 | - |
Related accrued interest | 1.5 | 1.5 | 3.9% | 1.4 | 11.5% |
Bank overdraft | - | - | NA | - | NA |
Total Financial Debt (A) | 3,239.7 | 3,255.4 | (0.5%) | 3,396.1 | (4.6%) |
Measurement at fair Value | (50.9) | (54.7) | 7.0% | (49.6) | (2.6%) |
Total Short Term and Long Term Debt | 3,188.8 | 3,200.7 | (0.4%) | 3,346.5 | (4.7%) |
Cash and Cash Equivalents (B) | 1,304.7 | 865.6 | 50.7% | 1,013.2 | 28.8% |
Net Debt (A) - (B) | 1,934.9 | 2,389.8 | (19.0%) | 2,382.9 | (18.8%) |
Net Debt/Adjusted Ebitda (Last 12 Months) | 0.70x | 0.97x | (27.7%) | 0.89x | (21.3%) |
% USD Debt | 96.6% | 94.5% | 2.1% | 95.1% | 1.5% |
% Ar. Ps Debt | 3.4% | 5.5% | (37.1%) | 4.9% | (29.8%) |
Total Financial Debt(1) and Net Debt, decreased from Ps. 3,255.4 million to Ps. 3,239.7 million and from Ps. 2,389.8 million to Ps. 1,934.9 million respectively. This represents a reduction of 0.5% in the Total Debt and a reduction of 19.0% in the Net Debt.
Debt coverage ratio (1) as of December 31th, 2012 was 0.7x in the case of Net Debt and of 1.17x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Twelve Months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
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)
| 9.70 |
GCLA (LSE) Price per GDS (USD) | 2.50 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 359.3 |
Closing Price | March 8th, 2013 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss Fourth Quarter and Full Year 2012 Results, on Monday, March 11th, 2013.
Time: 12:00 pm Buenos Aires Time/3:00 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: 19716326.
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on March 11th, 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
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
In Argentine Pesos (Ps.)
December 31, 2012 | December 31, 2011 | |||
Continuing Operations | ||||
Revenues | 11,318,906,093 | 9,325,238,616 | ||
Cost of Sales (1) | (6,508,186,503) | (5,374,316,188) | ||
Subtotal - Gross Profit | 4,810,719,590 | 3,950,922,428 | ||
Selling Expenses (1) | (1,387,819,339) | (1,094,247,032) | ||
Administrative Expenses (1) | (1,522,578,855) | (1,146,535,581) | ||
Financial Income | 162,251,896 | 102,687,565 | ||
Financial Costs | (1,078,405,434) | (684,773,400) | ||
Other Income and Expense, net | 639,370 | 1,507,210 | ||
Equity in Earnings from Affiliates and Subsidiaries | 13,682,715 | 33,653,927 | ||
Income before Income Tax and Tax on Assets | 998,489,943 | 1,163,215,117 | ||
Income Tax and Tax on Assets | (524,876,069) | (425,031,671) | ||
Income for the Year from Continuing Operations | 473,613,874 | 738,183,446 | ||
Discontinued Operations | ||||
Income/Loss from Discontinued Operations (2) | 498,717,214 | 47,426,493 | ||
Net Income for the Year | 972,331,088 | 785,609,939 | ||
Other Comprehensive Income | ||||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 182,068,772 | 79,305,275 | ||
Variation in Translation Differences of Foreign Operations from Discontinued Operations | (1,899,698) | 1,848,769 | ||
Other Comprehensive Income for the Year | 180,169,074 | 81,154,044 | ||
COMPREHENSIVE INCOME FOR THE YEAR | 1,152,500,162 | 866,763,983 | ||
Profit Attributable to: | ||||
Shareholders of the Parent Company | 482,310,720 | 514,753,208 | ||
Non-Controlling Interests | 490,020,368 | 270,856,731 | ||
Total Comprehensive Income Attributable to: | ||||
Shareholders of the Parent Company | 567,296,198 | 552,746,145 | ||
Non-Controlling Interests | 585,203,964 | 314,017,838 | ||
Basic and Diluted Earnings per Share from Continuing Operations | 0.96 | 1.72 | ||
Basic and Diluted Earnings per Share from Discontinued Operations | 0.72 | 0.07 | ||
Basic and Diluted Earnings per Share - Total | 1.68 | 1.79 | ||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount ofPs. 872,356,212 and Ps. 765,478,746 for the years ended December 31, 2012 and 2011, respectively.
(2) As of December 31, 2012, it includes approximately Ps. 444 million in connection with the sale of the interests described in Note 12.g. included in the NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31th, 2012, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2012, DECEMBER 31, 2011 AND JANUARY 1, 2011
In Argentine Pesos (Ps.)
December 31, 2012 | December 31, 2011 | January 1, 2011 | |||
ASSETS | |||||
NON-CURRENT ASSETS | |||||
Property, Plant and Equipment | 4,137,741,603 | 3,665,276,048 | 2,822,810,673 | ||
Intangible Assets | 554,781,161 | 622,168,215 | 715,133,399 | ||
Goodwill | 2,797,020,692 | 2,739,655,126 | 2,700,177,279 | ||
Deferred Tax Assets | 55,403,579 | 34,471,919 | 27,151,922 | ||
Investment in Affiliates and Subsidiaries | 389,212,589 | 387,673,671 | 345,840,683 | ||
Other Investments | 99,597,125 | 109,855 | 177,403 | ||
Inventories | 13,929,652 | 13,139,000 | 21,340,016 | ||
Other Assets | 1,896,642 | 1,546,764 | 2,204,616 | ||
Other Receivables | 128,770,432 | 205,230,179 | 95,888,460 | ||
Trade Receivables | 125,285,473 | 122,595,188 | 1,102,833 | ||
Total Non-Current Assets | 8,303,638,948 | 7,791,865,965 | 6,731,827,284 | ||
CURRENT ASSETS | |||||
Inventories | 342,773,949 | 371,180,023 | 252,092,555 | ||
Other Assets | 7,362,757 | 11,467,311 | 78,594,494 | ||
Other Receivables | 402,265,693 | 372,396,801 | 280,160,389 | ||
Trade Receivables | 1,638,550,031 | 1,224,589,935 | 954,007,800 | ||
Other Investments | 685,632,591 | 247,188,625 | 264,964,642 | ||
Cash and Banks | 623,395,314 | 629,155,403 | 332,257,837 | ||
Total Current Assets | 3,699,980,335 | 2,855,978,098 | 2,162,077,717 | ||
Total Assets | 12,003,619,283 | 10,647,844,063 | 8,893,905,001 | ||
EQUITY (as per the corresponding statement) | |||||
Attributable to Shareholders of the Parent Company | 4,090,030,112 | 3,634,142,107 | 3,203,295,205 | ||
Attributable to Non-Controlling Interests | 1,374,568,933 | 1,063,645,779 | 936,398,963 | ||
Total Shareholders' Equity | 5,464,599,045 | 4,697,787,886 | 4,139,694,168 | ||
LIABILITIES | |||||
NON-CURRENT LIABILITIES | |||||
Accruals and Other | 254,838,954 | 193,039,012 | 159,947,261 | ||
Long-Term Debt | 2,683,294,222 | 2,749,309,434 | 2,117,587,216 | ||
Sellers Financing | 325,330 | 816,853 | 1,127,017 | ||
Deferred Tax Liabilities | 261,847,892 | 182,336,021 | 219,731,774 | ||
Taxes Payable | 74,910,041 | 79,195,842 | 83,639,832 | ||
Other Liabilities | 97,588,589 | 104,354,485 | 89,429,579 | ||
Trade Payables and Other | 5,888,626 | 10,198,755 | 12,450,978 | ||
Total Non-Current Liabilities | 3,378,693,654 | 3,319,250,402 | 2,683,913,657 | ||
CURRENT LIABILITIES | |||||
Long-Term Debt | 504,084,669 | 442,432,030 | 260,618,199 | ||
Sellers Financing | 1,103,888 | 8,178,434 | 3,796,354 | ||
Taxes Payable | 411,769,236 | 299,925,923 | 472,091,432 | ||
Other Liabilities | 214,245,125 | 148,728,234 | 127,596,292 | ||
Trade Payables and Other | 2,029,123,666 | 1,731,541,154 | 1,206,194,899 | ||
Total Current Liabilities | 3,160,326,584 | 2,630,805,775 | 2,070,297,176 | ||
Total Liabilities | 6,539,020,238 | 5,950,056,177 | 4,754,210,833 | ||
Total Equity and Liabilities | 12,003,619,283 | 10,647,844,063 | 8,893,905,001 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | |||||||||||||||||
Shareholders' Contributions | Other items | Retained Earnings | Total Equity of Controlling Interests | Non-Controlling Interests | |||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves | Legal Reserve | Optional reserves (1) | Accumulated Results | Total Equity | ||||||||
Balances as of January 1, 2011 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | - | (16,485,290) | 38,054,509 | - | 1,171,087,483 | 3,203,295,205 | 936,398,963 | 4,139,694,168 | |||||
Set-up of Legal Reserve | - | - | - | - | - | - | 26,685,724 | - | (26,685,724) | - | - | - | |||||
Dividend Distribution | - | - | - | - | - | - | - | - | (120,000,000) | (120,000,000) | - | (120,000,000) | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (185,768,664) | (185,768,664) | |||||
Changes in Reserves for Acquisition of Minority Interests | - | - | - | - | - | (1,899,243) | - | - | - | (1,899,243) | (1,002,358) | (2,901,601) | |||||
Net Income for the Year | - | - | - | - | - | - | - | - | 514,753,208 | 514,753,208 | 270,856,731 | 785,609,939 | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 37,992,937 | - | - | - | - | 37,992,937 | 43,161,107 | 81,154,044 | |||||
Balances as of December 31, 2011 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 37,992,937 | (18,384,533) | 64,740,233 | - | 1,539,154,967 | 3,634,142,107 | 1,063,645,779 | 4,697,787,886 | |||||
Set-up of Reserves (Note 14) | - | - | - | - | - | - | 23,912,434 | 1,381,400,655 | (1,405,313,089) | - | - | - | |||||
Dividend Distribution (Note 14) | - | - | - | - | - | - | - | - | (135,000,000) | (135,000,000) | - | (135,000,000) | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (290,063,721) | (290,063,721) | |||||
Changes in Reserves for Acquisition of Minority Interests | - | - | - | - | - | 23,591,807 | - | - | - | 23,591,807 | 15,782,911 | 39,374,718 | |||||
Net Income for the Year | - | - | - | - | - | - | - | - | 482,310,720 | 482,310,720 | 490,020,368 | 972,331,088 | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 84,985,478 | - | - | - | - | 84,985,478 | 95,183,596 | 180,169,074 | |||||
Balances as of December 31, 2012 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 122,978,415 | 5,207,274 | 88,652,667 | 1,381,400,655 | 481,152,598 | 4,090,030,112 | 1,374,568,933 | 5,464,599,045 | |||||
(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 300,000,000; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756 and (iii) Optional reserve for illiquidity of results of Ps. 694,371,899.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
In Argentine Pesos (Ps.)
December 31, 2012 | December 31, 2011 | ||
CASH PROVIDED BY OPERATING ACTIVITIES | |||
Net Income for the Year | 972,331,088 | 785,609,939 | |
Income Tax and Tax on Assets | 524,876,069 | 425,031,671 | |
Accrued Interest, net | 265,004,506 | 265,343,618 | |
Adjustments to reconcile net income for the year to cash provided by operating activities: | |||
Depreciation of Property, Plant and Equipment | 726,074,731 | 613,264,887 | |
Amortization of Intangible Assets and Film Library | 146,281,481 | 152,213,859 | |
Net of allowances | 108,858,093 | 100,050,589 | |
Financial Income, except interest | 462,345,935 | 206,158,381 | |
Impairment of Goodwill | - | 12,053,573 | |
Equity in Earnings from Affiliates and Subsidiaries | (13,682,715) | (33,653,927) | |
Other Income and Expense | (3,063,467) | (57,874,035) | |
Income/Loss from Discontinued Operations | (399,258,357) | 34,644,754 | |
Changes in Assets and Liabilities: | |||
Trade Receivables | (475,493,666) | (408,049,432) | |
Other Receivables | 138,937,891 | (177,458,098) | |
Inventories | 27,062,977 | (98,517,084) | |
Other Assets | 2,376,684 | (2,437,218) | |
Trade Payables and Other | 278,599,757 | 467,607,043 | |
Taxes Payable | (125,281,919) | (55,643,520) | |
Other Liabilities | 46,750,050 | (10,480,719) | |
Provisions | (30,747,737) | (23,360,349) | |
Income Tax and Tax on Assets Payments | (360,027,710) | (617,284,673) | |
Net Cash Flows Provided by Operating Activities | 2,291,943,691 | 1,577,219,259 | |
CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
Acquisition of Property, Plant and Equipment, net | (1,382,972,222) | (1,478,115,464) | |
Acquisition of Intangible Assets | (73,781,197) | (57,018,157) | |
Acquisition of Subsidiaries, Net of Cash Acquired | (15,829,527) | (20,320,921) | |
Proceeds from Sale of Property, Plant and Equipment | 4,049,536 | 16,081,665 | |
Dividends collected | 3,415,980 | 7,591,703 | |
Collection from Sale of Permanent Establishment of Foreign Companies | 738,299,692 | - | |
Proceeds from Disposal of Long-Term Investments | - | 14,470,615 | |
Certificates of Deposit | (108,489,054) | (10,000,000) | |
Collections of Certificates of Deposit | 15,419,781 | - | |
Net Cash Flows used in Investment Activities | (819,887,011) | (1,527,310,559) | |
CASH PROVIDED BY FINANCING ACTIVITIES | |||
Loans | 158,849,820 | 861,143,588 | |
Repayment of Loans and Issuance Expenses | (388,699,658) | (208,488,413) | |
Payment of Interest | (293,133,497) | (206,425,022) | |
Acquisition of investment for the purchase of Notes from Subsidiaries | (195,525,800) | - | |
(Settlement) Collections on Derivatives | (6,177,500) | 41,790,297 | |
Payment of Sellers Financing | (6,642,392) | (748,725) | |
Dividends Paid | (135,000,000) | (120,000,000) | |
(Setup) Transfer of Reserve Account / Escrow Funds | (13,409,252) | 5,652,799 | |
Payments to Non-Controlling Interests, net | (230,279,010) | (185,291,562) | |
Net Cash Flows (used in) provided by Financing Activities | (1,110,017,289) | 187,632,962 | |
FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 77,116,220 | 42,090,041 | |
Net Increase in Cash Flow | 439,155,611 |
| 279,631,703 |
Cash and Cash Equivalents at the Beginning of the Year | 865,580,054 |
| 585,948,351 |
Cash and Cash Equivalents at Year-end | 1,304,735,665 |
| 865,580,054 |