11 Aug 2016 13:00
Grupo Clarín announces its
Results for the First Half (1H16) and Second Quarter of 2016 (2Q16)
Buenos Aires, Argentina, August 11th, 2016 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its first half and second quarter results for 2016. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of June 30th, 2016 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1H16 vs. 1H15):
§ Net Sales totaled Ps. 18,724.3 million, an increase of 49.1% from 1H15, mainly due to ARPU and subscriber growth in the Cable TV, Internet access and Telephony segment and, to a lesser extent, driven by the consolidation of Nextel Argentina in the Cable TV, Internet access and Telephony segment.
§ Adjusted EBITDA (1) reached Ps. 5,721.5 million, an increase of 44.4% from 1H15, mainly driven by higher sales in the Cable, Internet access and Telephony segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) for 1H16 was 30.6%, compared to 31.6% in 1H15.
§ Income for the period totaled Ps. 2,062.9 million, an increase of 23.0% from the Ps. 1,677.1 million reported in 1H15, and the Income for the period attributable to Equity Shareholders amount to Ps 1,227.8 million from Ps. 1,034.3 million, an increase of 18.7%.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 1H16 | 1H15 | % Ch. | 2Q16 | 1Q16 | 2Q15 | QoQ | YoY |
Net Sales | 18,724.3 | 12,555.6 | 49.1% | 9,738.7 | 8,985.6 | 6,586.0 | 8.4% | 47.9% |
Adjusted EBITDA (1) | 5,721.5 | 3,963.2 | 44.4% | 2,876.8 | 2,844.7 | 2,027.1 | 1.1% | 41.9% |
Adjusted EBITDA Margin (2) | 30.6% | 31.6% | (3.2%) | 29.5% | 31.7% | 30.8% | (6.7%) | (4.0%) |
Income for the period | 2,062.9 | 1,677.1 | 23.0% | 949.7 | 1,113.2 | 876.7 | (14.7%) | 8.3% |
Attributable to: | ||||||||
Equity Shareholders | 1,227.8 | 1,034.3 | 18.7% | 595.0 | 632.7 | 565.1 | (6.0%) | 5.3% |
Non-Controlling Interests | 835.1 | 642.7 | 29.9% | 354.7 | 480.5 | 311.6 | (26.2%) | 13.8% |
(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.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Agustín Medina Manson / Patricio Gentile | Alex Money | Melanie Carpenter |
Grupo Clarín S.A. | Jasford IR | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 3289 5300 | Tel: +1 212 406 3692 |
Email: investors@grupoclarin.com | E-mail: alexm@jasford.com | E-mail: clarin@i-advize.com |
OPERATING RESULTS
Net sales reached Ps. 18,724.3 million, an increase of 49.1% from Ps. 12,555.6 million in 1H15 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, driven by the consolidation of Nextel Argentina in this segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 1H16 | 1H15 | YoY | 2Q16 | 1Q16 | 2Q15 | QoQ | YoY |
Cable TV, Internet access and Telephony | 14,242.7 | 9,231.7 | 54.3% | 7,174.2 | 7,068.5 | 4,672.6 | 1.5% | 53.5% |
Printing and Publishing | 2,608.7 | 1,971.8 | 32.3% | 1,394.9 | 1,213.8 | 1,073.3 | 14.9% | 30.0% |
Broadcasting and Programming | 1,914.8 | 1,473.5 | 29.9% | 1,202.9 | 711.9 | 917.1 | 69.0% | 31.2% |
Digital Content and Others | 523.7 | 337.8 | 55.0% | 249.5 | 274.2 | 152.7 | (9.0%) | 63.5% |
Subtotal | 19,289.9 | 13,014.8 | 48.2% | 10,021.6 | 9,268.3 | 6,815.6 | 8.1% | 47.0% |
Eliminations | (565.6) | (459.3) | 23.1% | (282.9) | (282.7) | (229.6) | 0.1% | 23.2% |
Total | 18,724.3 | 12,555.6 | 49.1% | 9,738.7 | 8,985.6 | 6,586.0 | 8.4% | 47.9% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 8,152.4 million, an increase of 47.7% from Ps. 5,519.2 million reported for 1H15 due to higher costs across all business segments, mainly in Cable TV, Internet access and Telephony that was also impacted by the consolidation of the Mobile Argentine operation (Nextel Argentina).
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 4,850.4 million, an increase of 57.8% from Ps. 3,073.2 million in 1H15. This increase was mainly due to higher costs and the consolidation of Nextel in the Cable TV, Internet access and Telephony segment.
Adjusted EBITDA reached Ps. 5,721.5 million, an increase of 44.4% from Ps. 3,963.2 million reported for 1H15, driven by higher sales in Cable TV, Internet access and Telephony and to a lesser extent, to higher EBITDA in the Broadcasting and Programming segment.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 1H16 | 1H15 | YoY | 2Q16 | 1Q16 | 2Q15 | QoQ | YoY |
Cable TV, Internet access and Telephony | 5,339.3 | 3,601.6 | 48.2% | 2,561.3 | 2,778.1 | 1,720.3 | (7.8%) | 48.9% |
Printing and Publishing | (3.9) | 42.3 | (109.2%) | 3.6 | (7.5) | 33.2 | (147.7%) | (89.3%) |
Broadcasting and Programming | 405.6 | 320.7 | 26.5% | 332.8 | 72.8 | 279.5 | 356.8% | 19.1% |
Digital Content and Others | (19.5) | (1.5) | 1,214.3% | (20.8) | 1.3 | (6.0) | (1,702.9%) | (247.6%) |
Subtotal | 5,721.5 | 3,963.2 | 44.4% | 2,876.8 | 2,844.7 | 2,027.1 | 1.1% | 41.9% |
Eliminations | - | - | NA | - | - | - | NA | NA |
Total | 5,721.5 | 3,963.2 | 44.4% | 2,876.8 | 2,844.7 | 2,027.1 | 1.1% | 41.9% |
Financial results net totaled Ps. (1,566.4) million compared to Ps. (714.1) million for 1H15. The increase was mainly due to higher peso depreciation during 1H16, which went from Ps 13.04 per dollar at the end of December 2015, to Ps 15.04 per dollar as of June 30th, 2016; compared with the 1H15 with went from Ps 8.55 per dollar at the end of December 2014 to Ps. 9.09 per dollar as of June 30th, 2015.
Income from Acquisitions of Companies amounted to Ps. 114.1 million in 1H16.
Equity in earnings from unconsolidated affiliates in 1H15 totaled Ps. 74.1 million, compared to Ps. 53.1 million for 1H15.
Other Income (expenses), net reached Ps. 15.4 million, compared to Ps. 8.3 million in 1H15.
Income tax as of June 2016 reached Ps. (1,068.0) million, from Ps. (804.0) million in June 2015.
Income for the period totaled Ps. 2,062.9 million, an increase of 23.0% from Ps. 1,677.1 million reported for 1H15. This was mainly a consequence of higher EBITDA in the Cable TV, Internet access and Telephony and Broadcasting and Programming segments, and it was partially offset by higher peso depreciation. The Equity Shareholders Income for the period amounted to Ps.1,227.8 million, an increase of 18.7% compared with June 2015.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 3,746.0 million in 1H16, an increase of 145.5% from Ps. 1,526.1 million reported for 1H15. Out of the total CAPEX in 1H16, 96.6% was allocated to the Cable TV, Internet access and Telephony segment, 2.0% to the Broadcasting and Programming segment and the remaining 1.4% to other activities. Capex in the Cable TV, Internet access and Telephony segment pertains to subscriber growth, network upgrades and digitalization.
Debt profile (1): Debt coverage ratio for the period ended June 30th, 2016 was .97x and the Net Debt at the end of this period totaled Ps. 6,532.0 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2016
(In millions of Ps.) | Cable TV, Internet access and Telephony | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 49.1 | 994.2 | 1,330.6 | 35.2 | (148.3) | 2,260.7 | 12.1% |
Circulation | - | 1,357.8 | - | - | (78.7) | 1,279.1 | 6.8% |
Printing | - | 179.4 | - | - | (27.3) | 152.1 | 0.8% |
Video Subscriptions | 8,801.9 | - | - | - | - | 8,801.9 | 47.0% |
Internet Subscriptions | 3,338.8 | - | - | - | (13.8) | 3,325.1 | 17.8% |
Programming | - | - | 281.6 | - | (29.9) | 251.8 | 1.3% |
IDEN Telecommunication | 1,536.9 | - | - | - | - | 1,536.9 | 8.2% |
Other Sales
| 515.9 | 77.3 | 302.6 | 488.5 | (267.6) | 1,116.8 | 6.0% |
Total Sales | 14,242.7 | 2,608.7 | 1,914.8 | 523.7 | (565.6) | 18,724.3 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2015
(In millions of Ps.) | Cable TV, Internet access and Telephony | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % | |
Advertising | 51.4 | 767.5 | 1,077.3 | 111.7 | (99.4) | 1,908.5 | 15.2% | |
Circulation | - | 947.3 | - | - | - | 947.3 | 7.5% | |
Printing | - | 160.7 | - | - | (22.1) | 138.6 | 1.1% | |
Video Subscriptions | 6,733.7 | - | - | - | - | 6,733.7 | 53.6% | |
Internet Subscriptions | 2,136.2 | - | - | - | (6.4) | 2,129.8 | 17.0% | |
Programming | - | - | 174.2 | - | (77.0) | 97.2 | 0.8% | |
IDEN Telecommunication | - | - | - | - | - | - | - | |
Other Sales
| 310.3 | 96.4 | 222.0 | 226.1 | (254.2) | 600.5 | 4.8% | |
Total Sales | 9,231.7 | 1,971.8 | 1,473.5 | 337.8 | (459.3) | 12,555.6 | 100.0% | |
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS AND TELEPHONY
Net Sales
Net sales increased by 54.3% to Ps. 14,242.7 million for 1H16 compared to Ps. 9,231.7 million for 1H15. The increase is mostly attributable to an increase in subscription charges (Cable TV and Internet) registered during the last twelve months and also reflects the growth in Cable, Broadband and Digital subscribers and the consolidation of Nextel Argentina. Total Consolidated Cable TV basic subscribers reached 3,522,074 as of June 2016, compared to the 3,510,790 reported for the same date in 2015. Internet subscribers reached 2,101,425 in June 2016, compared to the 1,923,843 of June 2015.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased (including the consolidation of Nextel Argentina) by 53.9% to Ps. 5,455.2 million in June 2016, compared to Ps. 3,543.6 million in June 2015. This was mainly due to higher 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 (including the consolidation of Nextel Argentina) by 65.3% to Ps. 3,448.2 million for 1H16, compared to Ps. 2,086.4 million reported in 1H15. This increase is driven by higher taxes, duties and contributions, salaries and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 49.2% to Ps. 1,147.3 million for 1H16 from Ps. 769.2 million reported in 1H15.
PRINTING AND PUBLISHING
Net Sales
The 32.3% increase of Net Sales to Ps. 2,608.7 million in 1H16, was the result of higher sales in circulation, advertising and printing services.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 37.4% to Ps. 1,557.6 million in 1H16, compared to Ps. 1,133.6 million in 1H15. The increase was mainly the result of higher salaries, printing costs and cost of the goods sold.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 32.5% to Ps. 1,055.0 million in 1H16, compared to the Ps. 796.0 million reported for 1H15. This was primarily the result of higher fees for services, salaries, distribution costs and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 23.9% to Ps. 40.9 million in 1H16 compared to Ps. 33.0 million in 1H15.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 29.9% to Ps. 1,914.8 million in 1H16, compared to Ps. 1,473.5 million in 1H15. The increase was primarily the result of higher advertising and programming sales related to Canal Trece and Radio Mitre.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 27.4% to Ps. 1,100.6 million in 1H16, compared to Ps. 863.9 million in 1H15. This is attributable mainly to higher salaries, rights and fees for services.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 41.4% to Ps. 408.6 million in 1H16, compared to Ps. 288.9 million in 1H15. The increase was primarily the result of higher fees for services and salaries.
Depreciation and Amortization
Depreciation and amortization expenses increased by 41.9% to Ps. 28.3 million in 1H16 compared to Ps. 19.9 million reported in 1H15.
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 55.0% to Ps. 523.7, from Ps. 337.8 million reported in 1H16, due to higher sales in digital content and Gestión Compartida. EBITDA resulted negative in Ps. 19.5 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
1H16 | 1H15 | YoY | 2Q16 | 1Q16 | 2Q15 | QoQ | YoY | |||||||||
Homes Passed (1) | 7,815.4 | 7,732.2 | 1.1% | 7,815.4 | 7,812.9 | 7,732.2 | 0.0% | 1.1% |
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Bidirectional Homes Passed | 73.4% | 69.0% | 6.3% | 73.4% | 73.1% | 69.0% | 0.5% | 6.3% |
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Unique Subscribers | 3,900.0 | 3,836.8 | 1.6% | 3,900.0 | 3,873.7 | 3,836.8 | 0.7% | 1.6% |
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Cable TV |
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Total Consolidated Subscribers (1)(3) | 3,522.1 | 3,510.8 | 0.3% | 3,522.1 | 3,506.6 | 3,510.8 | 0.4% | 0.3% |
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Subscribers - Argentina | 3,380.3 | 3,375.5 | 0.1% | 3,380.3 | 3,368.6 | 3,375.5 | 0.3% | 0.1% |
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Subscribers - International (Uruguay) | 141.8 | 135.3 | 4.8% | 141.8 | 138.0 | 135.3 | 2.7% | 4.8% |
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% over Homes Passed | 45.1% | 45.4% | (0.7%) | 45.1% | 44.9% | 45.4% | 0.4% | (0.7%) |
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Total Equity Subscribers(4) | 3,654.1 | 3,641.1 | 0.4% | 3,654.1 | 3,638.0 | 3,641.1 | 0.4% | 0.4% |
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Churn Rate % | 14.0% | 12.9% | 8.7% | 12.8% | 15.3% | 11.9% | (16.4%) | 7.4% |
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Digital Video |
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Digital Ready Pay TV Subs | 3,012.8 | 2,787.9 | 8.1% | 3,012.8 | 2,994.2 | 2,787.9 | 0.6% | 8.1% |
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Total Digital Decoders | 1,727.8 | 1,508.2 | 14.6% | 1,727.8 | 1,655.3 | 1,508.2 | 4.4% | 14.6% |
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Argentina | 1,513.9 | 1,322.8 | 14.4% | 1,513.9 | 1,452.5 | 1,322.8 | 4.2% | 14.4% |
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International | 214.0 | 185.4 | 15.4% | 214.0 | 202.9 | 185.4 | 5.5% | 15.4% |
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Penetration over Digital Ready TV Subs | 57.3% | 54.1% | 6.0% | 57.3% | 55.3% | 54.1% | 3.7% | 6.0% |
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Internet Subscribers |
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Total Internet Subscribers (1) | 2,101.4 | 1,923.8 | 9.2% | 2,101.4 | 2,041.8 | 1,923.8 | 2.9% | 9.2% |
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Cablemodem(1) | 2,094.3 | 1,915.4 | 9.3% | 2,094.3 | 2,034.3 | 1,915.4 | 2.9% | 9.3% |
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ADSL(1) | 2.81 | 3.8 | (25.6%) | 2.8 | 3.1 | 3.8 | (8.6%) | (25.6%) |
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Dial Up (1) | 4.3 | 4.6 | (7.5%) | 4.3 | 4.4 | 4.6 | (2.2%) | (7.5%) |
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% over Bidirectional Homes Passed | 35.5% | 38.1% | (6.9%) | 35.5% | 34.7% | 38.1% | 2.4% | (6.9%) |
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Total ARPU(2) | 598.0 | 439.5 | 36.1% | 602.3 | 590.3 | 445.9 | 2.0% | 35.1% |
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(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.
TELEPHONY
1H16 | |
Mobile Postpaid Subs(1) | 852.6 |
Postpaid ARPU(2) | 230.9 |
(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers
PRINTING AND PUBLISHING
1H16 | 1H15 | YoY | 2Q16 | 1Q16 | 2Q15 | QoQ | YoY | |
Circulation (1) | 242.3 | 266.7 | (9.2%) | 237.3 | 247.4 | 261.5 | (4.1%) | (9.3%) |
Circulation share % (2) | 40.5% | 39.1% | 3.5% | 40.5% | 40.6% | 39.2% | (0.3%) | 3.3% |
Advertising share %(3) | 53.2% | 51.7% | 2.8% | 51.5% | 55.0% | 51.4% | (6.4%) | 0.2% |
(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
1H16 | 1H15 | YoY | 2Q16 | 1Q16 | 2Q15 | QoQ | YoY | |
Advertising Share % (1) | 38.2% | 37.8% | 0.9% | 38.6% | 37.2% | 38.6% | 3.8% | 0.1% |
Audience Share % (2) | ||||||||
Prime Time | 31.8% | 36.3% | (12.2%) | 31.4% | 32.3% | 37.6% | (2.8%) | (16.5%) |
Total Time | 30.1% | 29.3% | 2.8% | 31.1% | 29.1% | 30.2% | 6.8% | 2.7% |
(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
1H16 | 1H15 | YoY | |
Page Views (1) | 880.2 | 773.4 | 13.8% |
Unique Visitors(1) | 62.5 | 62.5 | 0.1% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | June 2016 | June 2015 | % Change | March 2016 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 2,639.6 | 1,573.3 | 67.8% | 4,452.9 | (40.7%) |
Financial loans | 140.0 | 762.3 | (81.6%) | 410.2 | (65.9%) |
Negotiable obligations | 1,208.1 | 56.1 | 2,051.8% | 3,075.8 | (60.7%) |
Accrued interest | 37.2 | 140.6 | (73.5%) | 114.5 | (67.5%) |
Acquisition of equipment | 646.6 | 222.1 | 191.1% | 511.8 | 26.3% |
Sellers Financing Capital | 149.5 | 1.3 | 11,347.5% | 2.1 | 7,064.5% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 5.4 | 8.4 | (35.1%) | 22.5 | (75.9%) |
Related Parties accrued interest | 2.0 | 2.2 | (5.7%) | 2.9 | (30.8%) |
Bank overdraft | 450.6 | 380.3 | 18.5% | 313.1 | 43.9% |
Non-Current Financial Debt | 8,484.2 | 3,959.9 | 114.3% | 3,302.4 | 156.9% |
Financial loans | 133.0 | 166.3 | (20.0%) | 155.6 | (14.5%) |
Negotiable obligations | 7,520.0 | 3,444.9 | 118.3% | 2,496.4 | 201.2% |
Accrued interest | - | - | NA | - | NA |
Acquisition of equipment | 818.1 | 348.7 | 134.6% | 640.7 | 27.7% |
Sellers Financing Capital | - | - | NA | - | NA |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 12.8 | - | NA | 9.7 | 32.2% |
Related accrued interest | 0.2 | - | NA | - | NA |
Bank overdraft | - | - | NA | - | NA |
Total Financial Debt (A) | 11,123.8 | 5,533.2 | 101.0% | 7,755.3 | 43.4% |
Measurement at fair Value | (47.5) | (30.9) | (53.7%) | (5.7) | (734.6%) |
Total Short Term and Long Term Debt | 11,076.3 | 5,502.2 | 101.3% | 7,749.6 | 42.9% |
Cash and Cash Equivalents (B) | 4,591.8 | 3,052.5 | 50.4% | 4,305.7 | 6.6% |
Net Debt (A) - (B) | 6,532.0 | 2,480.7 | 163.3% | 3,449.6 | 89.4% |
Net Debt/Adjusted Ebitda (1) | 0.57x | 0.31x | 85.5% | 0.3x | 87.2% |
% USD Debt | 93.4% | 75.5% | 23.7% | 88.3% | 5.7% |
% Ar. Ps Debt | 6.6% | 24.5% | (73.0%) | 11.7% | (43.4%) |
Total Financial Debt(1) and Net Debt, increased from Ps. 5,533.2 million to Ps. 11,123.8 million and from Ps. 2,480.7 million to Ps. 6,532.0 million respectively. This represents an increase of 101.0% in the Total Debt and an increase of 163.3% in the Net Debt.
Debt coverage ratio (1) as of June 30th, 2016 was 0.57x in the case of Net Debt and of 0.97x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
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)
| 149.5 |
GCLA (LSE) Price per GDS (USD) | 19.6 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 2,816.7 |
Closing Price | August 10th, 2016 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss Second Quarter Results for 2016, on Thursday, August 11th, 2016.
Time: 12:00pm Buenos Aires Time/4:00pm London Time/11:00am New York Time.
Those interested in connecting via conference call are invited to please dial 1-800-311-9404 toll free from the U.S., 0-800-444-7657 from Argentina, or 1 (334) 323-7224 from elsewhere 5-10 minutes prior to the start time. The Conference ID is 9011.
To access the simultaneous webcast presentation, please direct your browser to:
http://www.grupoclarin.com/ir.
There will be a two weeks replay available starting one hour after the conclusion of the conference call. To access the replay, please dial 1-877-919-4059 toll free from the U.S., or 1-334-323-0140 from anywhere outside the U.S. The replay passcode is: 51290980
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on August 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 SIX-MONTH PERIODS ENDED JUNE 30, 2016 AND 2015, AND FOR THE THREE-MONTH PERIODS BEGINNING ON APRIL 1 AND
ENDED ON JUNE 30, 2016 AND 2015
In Argentine Pesos (Ps.)
June 30, 2016 | June 30, 2015 |
April 1, 2016 through June 30, 2016 |
April 1, 2015 through June 30, 2015 | |||||
Revenues | 18,724,346,000 | 12,555,569,583 | 9,738,724,889 | 6,586,042,764 | ||||
Cost of Sales (1) | (9,269,796,980) | (6,285,625,367) | (4,886,640,113) | (3,320,493,207) | ||||
Subtotal - Gross Profit | 9,454,549,020 | 6,269,944,216 | 4,852,084,776 | 3,265,549,557 | ||||
Selling Expenses (1) | (2,661,602,509) | (1,587,875,488) | (1,348,576,872) | (831,980,394) | ||||
Administrative Expenses (1) | (2,299,199,994) | (1,548,397,097) | (1,259,427,220) | (836,467,263) | ||||
Other Income and Expense, net | 15,400,565 | 8,344,669 | 7,400,581 | 7,964,912 | ||||
Financial Costs | (1,826,129,466) | (624,065,676) | (653,479,001) | (334,858,535) | ||||
Other Financial Results, net | 259,694,604 | (90,034,652) | (140,828,770) | 1,111,283 | ||||
Financial Results | (1,566,434,862) | (714,100,328) | (794,307,771) | (333,747,252) | ||||
- | ||||||||
Acquisition of Companies | 114,093,096 | - | - | - | ||||
Equity in Earnings from Affiliates and Subsidiaries | 74,088,951 | 53,143,888 | 17,940,247 | 16,286,794 | ||||
Income before Income Tax and Tax on Assets | 3,130,894,267 | 2,481,059,860 | 1,475,113,741 | 1,287,606,354 | ||||
Income Tax and Tax on Assets | (1,068,001,904) | (803,997,958) | (525,391,674) | (410,860,418) | ||||
Income for the period | 2,062,892,363 | 1,677,061,902 | 949,722,067 | 876,745,936 | ||||
Other Comprehensive Income | ||||||||
Items which may be reclassified to net income | ||||||||
Variation in Translation Differences of Foreign Operations | 61,433,014 | (219,898,921) | 12,105,633 | (20,810,169) | ||||
Other Comprehensive Income for the period | 61,433,014 | (219,898,921) | 12,105,633 | (20,810,169) | ||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
2,124,325,377 |
1,457,162,981 | 961,827,700 |
855,935,767 | ||||
Profit Attributable to: | ||||||||
Shareholders of the Parent Company | 1,227,753,295 | 1,034,343,289 | 595,043,467 | 565,103,591 | ||||
Non-Controlling Interests | 835,139,068 | 642,718,613 | 354,678,600 | 311,642,345 | ||||
Total Comprehensive Income Attributable to: | ||||||||
Shareholders of the Parent Company | 1,277,202,305 | 927,979,029 | 602,739,301 | 549,538,291 | ||||
Non-Controlling Interests | 847,123,072 | 529,183,952 | 359,088,399 | 306,397,476 | ||||
Basic and Diluted Earnings per Share from Continuing Operations | 4.27 | 3.60 | 2.07 | 1.97 | ||||
Basic and Diluted Earnings per Share - Total | 4.27 | 3.60 | 2.07 | 1.97 | ||||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 1,227,779,272 and Ps. 829,497,022 for the six-month periods ended June 30, 2016 and 2015, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of August 11th, 2016, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2016 AND DECEMBER 31, 2015
In Argentine Pesos (Ps.)
June 30, 2016 | December 31, 2015 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 12,374,980,095 | 9,026,866,357 | |
Intangible Assets | 267,221,040 | 258,146,566 | |
Goodwill | 4,877,401,321 | 2,907,928,844 | |
Deferred Tax Assets | 679,382,982 | 374,890,670 | |
Investments in unconsolidated affiliates | 596,745,957 | 1,721,354,821 | |
Other Investments | 573,448,913 | 458,789,781 | |
Inventories | 28,197,220 | 23,626,229 | |
Other Assets | 2,948,300 | 2,627,301 | |
Other Receivables | 417,004,370 | 1,389,317,682 | |
Trade Receivables | 89,536,430 | 82,905,052 | |
Total Non-Current Assets | 19,906,866,628 | 16,246,453,303 | |
CURRENT ASSETS | |||
Inventories | 956,228,709 | 490,692,852 | |
Other Assets | 9,237,648 | 11,456,124 | |
Other Receivables | 1,230,844,980 | 949,442,104 | |
Trade Receivables | 4,791,325,658 | 3,790,626,735 | |
Other Investments | 3,032,154,173 | 1,186,552,013 | |
Cash and Banks | 1,906,667,689 | 2,025,780,934 | |
Total Current Assets | 11,926,458,857 | 8,454,550,762 | |
Total Assets | 31,833,325,485 | 24,701,004,065 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | |||
Shareholders' Contributions | 2,010,638,503 | 2,010,638,503 | |
Other items | 641,692,648 | 592,243,638 | |
Retained Earnings | 5,557,821,827 | 4,630,068,532 | |
Total Attributable to Shareholders of the Parent Company | 8,210,152,978 | 7,232,950,673 | |
Attributable to Non-Controlling Interests | 3,408,381,053 | 3,175,288,997 | |
Total Shareholders' Equity | 11,618,534,031 | 10,408,239,670 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other | 910,585,129 | 432,475,314 | |
Debt | 8,392,956,450 | 4,033,351,896 | |
Taxes Payable | 78,435,162 | 90,524,218 | |
Other Liabilities | 132,020,688 | 142,185,237 | |
Trade Payables and Other | 21,509,446 | 19,557,018 | |
Total Non-Current Liabilities | 9,535,506,875 | 4,718,093,683 | |
CURRENT LIABILITIES | |||
Debt | 2,533,782,720 | 2,901,737,366 | |
Seller Financings | 149,526,159 | 1,874,191 | |
Taxes Payable | 1,292,184,492 | 1,152,994,701 | |
Other Liabilities | 1,128,438,656 | 465,161,856 | |
Trade Payables and Other | 5,575,352,552 | 5,052,902,598 | |
Total Current Liabilities | 10,679,284,579 | 9,574,670,712 | |
Total Liabilities | 20,214,791,454 | 14,292,764,395 | |
Total Equity and Liabilities | 31,833,325,485 | 24,701,004,065 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2016 AND 2015
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | Equity Attributable to Non-Controlling Interests | |||||||||||||||
Shareholders' Contributions | Other items | Retained Earnings | Total Equity of Controlling Interests | |||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves | Legal Reserve | Optional reserves (1) | Accumulated Results | Total Equity | |||||||
Balances as of January 1st, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 595,897,405 | (3,653,767) | 119,460,767 | 2,625,678,396 | 1,884,929,369 | 7,232,950,673 | 3,175,288,997 | 10,408,239,670 | ||||
Set-up of reserves (Note 10.a.) | - | - | - | - | - | - | - | 1,584,929,369 | (1,584,929,369) | - | - | - | ||||
Dividend Distribution (Note 10.a.) | - | - | - | - | - | - | - | - | (300,000,000) | (300,000,000) | - | (300,000,000) | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (614,031,016) | (614,031,016) | ||||
Income for the period | - | - | - | - | - | - | - | - | 1,227,753,295 | 1,227,753,295 | 835,139,068 | 2,062,892,363 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 49,449,010 | - | - | - | - | 49,449,010 | 11,984,004 | 61,433,014 | ||||
Balances as of June 30, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 645,346,415 | (3,653,767) | 119,460,767 | 4,210,607,765 | 1,227,753,295 | 8,210,152,978 | 3,408,381,053 | 11,618,534,031 | ||||
Balances as of January 1st, 2015 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 477,454,394 | (209,686) | 119,460,767 | 2,071,576,709 | 804,101,687 | 5,483,022,374 | 2,282,464,286 | 7,765,486,660 | ||||
Set-up of reserves | - | - | - | - | - | - | - | 554,101,687 | (554,101,687) | - | - | - | ||||
Dividend Distribution | - | - | - | - | - | - | - | - | (250,000,000) | (250,000,000) | - | (250,000,000) | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (188,750,023) | (188,750,023) | ||||
Income for the period | - | - | - | - | - | - | - | - | 1,034,343,289 | 1,034,343,289 | 642,718,613 | 1,677,061,902 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | (106,364,260) | - | - | - | - | (106,364,260) | (113,534,661) | (219,898,921) | ||||
Balances as of June 30, 2015 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 371,090,134 | (209,686) | 119,460,767 | 2,625,678,396 | 1,034,343,289 | 6,161,001,403 | 2,622,898,215 | 8,783,899,618 | ||||
(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 1,884,929,369; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756, (iii) Optional reserve for illiquidity of results of
Ps. 694,371,899 and (iv) Optional reserve to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of Ps. 1,244,277,741.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2016 AND 2015
In Argentine Pesos (Ps.)
June 30, 2016 | June 30, 2015 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Income for the period | 2,062,892,363 | 1,677,061,902 | ||
Income Tax and Tax on Assets | 1,068,001,904 | 803,997,958 | ||
Accrued Interest, net | 260,115,777 | 243,407,797 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 1,124,193,218 | 743,870,156 | ||
Amortization of Intangible Assets and Film Library | 103,586,054 | 85,626,866 | ||
Net of allowances | 282,743,464 | 166,944,261 | ||
Financial Income, except interest | 733,044,167 | 58,996,747 | ||
Equity in Earnings from Affiliates and Subsidiaries | (74,088,951) | (53,143,888) | ||
Acquisition of Associates | (114,093,096) | - | ||
Other Income and Expense | (5,287,405) | (7,477,222) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (816,526,800) | (467,603,969) | ||
Other Receivables | (704,421,210) | (433,427,684) | ||
Inventories | (253,438,535) | (90,224,430) | ||
Other Assets | 1,897,477 | 1,260,881 | ||
Trade Payables and Other | (2,179,188) | 498,886,115 | ||
Taxes Payable | (311,853,153) | (22,690,878) | ||
Other Liabilities | 483,111,695 | 57,588,009 | ||
Provisions | (43,106,340) | (27,874,652) | ||
| Income Tax and Tax on Assets Payments | (712,081,134) | (622,559,369) | |
| ||||
| Net Cash Flows Provided by Operating Activities | 3,082,510,307 | 2,612,638,600 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (3,745,995,187) | (1,526,770,093) | |
| Acquisition of Intangible Assets | (64,715,964) | (24,856,380) | |
| Acquisition of Subsidiaries, Net of Cash Acquired | (1,889,331,621) | (31,252) | |
| Proceeds from Sale of Property, Plant and Equipment and other | 26,198,896 | 14,088,186 | |
| Dividends collected | 1,621,157 | 23,409,125 | |
| Certificates of Deposit | 204,447,415 | (189,728,123) | |
| Collections of Interest | 50,547,297 | 321,288 | |
| Collections of Certificates of Deposit | 10,417,602 | 163,850,951 | |
| ||||
| Net Cash Flows used in Investment Activities | (5,406,810,405) | (1,539,716,298) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans | 7,939,320,504 | 1,026,390,187 | |
| Repayment of Loans and Issue Expenses | (4,933,765,638) | (387,222,820) | |
| Payment of Interest | (656,036,653) | (322,426,674) | |
| Collections (Settlement) on Derivatives | 25,401,250 | (5,120,500) | |
| Payment of Dividends | (300,000,000) | (125,000,000) | |
| Payments to Non-Controlling Interests, net | (614,656,831) | (184,587,629) | |
| ||||
| Net Cash Flows provided by Financing Activities | 1,460,262,632 | 2,032,564 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 697,368,904 | 261,999,860 | |
| ||||
| (Decrease) / Increase in cash flow, net | (166,668,562) |
| 1,336,954,726 |
| Cash and Cash Equivalents at the Beginning of the Year | 2,705,563,078 |
| 1,744,978,426
|
| Cash and Cash Equivalents from Acquisition of Companies | 2,052,951,267 |
| - |
| Cash and Cash Equivalents at the End of the Period | 4,591,845,783 |
| 3,081,933,152 |
| ||||