10 Mar 2016 12:00
Grupo Clarín announces its
Results for the Fourth Quarter (4Q15) and Full Year of 2015 (FY15)
Buenos Aires, Argentina, March 10th, 2016 - 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 2015. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of December 31th, 2015 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (FY15 vs. FY14):
§Net Sales totaled Ps. 27,791.5 million, an increase of 41.0% from 2014, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming segment and circulation sales in the Printing and Publishing segment.
§Adjusted EBITDA (1) reached Ps. 8,360.8 million, an increase of 65.9% from 2014, mainly driven by higher sales in the Cable and Internet access segment.
§Grupo Clarín's Adjusted EBITDA Margin (2) for 2015 was 30.1%, compared to 25.6% in 2014.
§Income for the period totaled Ps. 2,915.9 million, an increase of 116.7% from the Ps. 1,345.5 million reported in 2014, and the Income for the period attributable to Equity Shareholders amount to Ps 1,884.9 million from Ps. 804.1 million, an increase of 134.4%.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 2015 | 2014 | % Ch. | 4Q15 | 3Q15 | 4Q14 | QoQ | YoY | |
Net Sales | 27,791.5 | 19,709.6 | 41.0% | 7,810.1 | 7,307.7 | 5,726.7 | 6.9% | 36.4% | |
Adjusted EBITDA (1) | 8,360.8 | 5,039.6 | 65.9% | 1,954.0 | 2,443.6 | 1,473.2 | (20.0%) | 32.6% | |
Adjusted EBITDA Margin (2) | 30.1% | 25.6% | 17.7% | 25.0% | 33.4% | 25.7% | (25.2%) | (2.7%) | |
Income for the period | 2,915.9 | 1,345.5 | 116.7% | 175.7 | 1,063.2 | 584.9 | (83.5%) | 70.0% | |
Attributable to: | |||||||||
Equity Shareholders | 1,884.9 | 804.1 | 134.4% | 140.7 | 709.9 | 357.2 | (80.2%) | 60.6% | |
Non-Controlling Interests | 1,031.0 | 541.4 | 90.4% | 35.0 | 353.3 | 227.7 | (90.1%) | 84.6% |
(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: |
Alfredo Marín Agustín Medina Manson | 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: alex@jasford.com | E-mail: clarin@i-advize.com
|
OPERATING RESULTS
Net sales reached Ps. 27,791.5 million, an increase of 41.0% from Ps. 19,709.6 million in 2014 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming segment 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.) | 2015 | 2014 | YoY | 4Q15 | 3Q15 | 4Q14 | QoQ | YoY |
Cable TV and Internet Access | 20,125.4 | 14,226.1 | 41.5% | 5,501.8 | 5,391.9 | 4,043.6 | 2.0% | 36.1% |
Printing and Publishing | 4,303.4 | 3,036.6 | 41.7% | 1,200.5 | 1,131.0 | 848.1 | 6.1% | 41.6% |
Broadcasting and Programming | 3,601.4 | 2,586.3 | 39.2% | 1,144.2 | 983.6 | 883.8 | 16.3% | 29.5% |
Digital Content and Others | 761.0 | 613.9 | 24.0% | 225.1 | 198.0 | 152.0 | 13.7% | 48.1% |
Subtotal | 28,791.1 | 20,463.0 | 40.7% | 8,071.7 | 7,704.6 | 5,927.5 | 4.8% | 36.2% |
Eliminations | (999.6) | (753.4) | 32.7% | (261.6) | (396.8) | (200.8) | (34.1%) | 30.3% |
Total | 27,791.5 | 19,709.6 | 41.0% | 7,810.1 | 7,307.7 | 5,726.7 | 6.9% | 36.4% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 12,258.7 million, an increase of 26.6% from Ps. 9,680.7 million reported for 2014 due to higher costs in our business segments, mainly in Cable TV and Internet access, in Printing and Publishing and in Broadcasting and Programming.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 7,172.0 million, an increase of 43.7% from Ps. 4,989.3 million in 2014. This increase was mainly due to higher costs in the Cable TV and Internet access and in Printing and Publishing segments.
Adjusted EBITDA reached Ps. 8,360.8 million, an increase of 65.9% from Ps. 5,039.6 million reported for 2014, driven by higher sales and margin expansion in the Cable TV and Internet access and Broadcasting and Programming segments and, to a lesser extent, to higher EBITDA in the Printing and Publishing.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 2015 | 2014 | YoY | 4Q15 | 3Q15 | 4Q14 | QoQ | YoY |
Cable TV and Internet access | 7,294.7 | 4,693.7 | 55.4% | 1,643.3 | 2,049.7 | 1,311.4 | (19.8%) | 25.3% |
Printing and Publishing | 112.6 | (136.7) | 182.3% | 5.1 | 65.2 | (55.3) | (92.2%) | 109.2% |
Broadcasting and Programming | 952.3 | 495.5 | 92.2% | 319.5 | 312.1 | 233.1 | 2.4% | 37.1% |
Digital Content and Others | 1.3 | (13.0) | 109.9% | (13.9) | 16.6 | (16.0) | (183.4%) | 13.3% |
Subtotal | 8,360.8 | 5,039.6 | 65.9% | 1,954.0 | 2,443.6 | 1,473.2 | (20.0%) | 32.6% |
Eliminations | - | - - | NA | - | - | - | NA | NA |
Total | 8,360.8 | 5,039.6 | 65.9% | 1,954.0 | 2,443.6 | 1,473.2 | (20.0%) | 32.6% |
Financial results net totaled Ps. (3,064.4) million compared to Ps. (1,730.4) million for 2014. The increase was mainly due to higher peso depreciation during 2015, which went from Ps 8.55 per dollar at the end of December 2014, to Ps 13.04 per dollar as of December 31th, 2015; compared with the 2014 which went from Ps 6.52 per dollar at the end of December 2013 to Ps. 8.55 per dollar as of December 31th, 2014.
Equity in earnings from unconsolidated affiliates in 2015 totaled Ps. 544.6 million, compared to Ps. 71.9 million for 2014.
Other Income (expenses), net reached Ps. 99.9 million, compared to Ps. (0.6) million in 2014.
Income tax as of December 2015 reached Ps. (1,229.5) million, from Ps. (590.1) million in December 2014.
Income for the period totaled Ps. 2,915.9 million, an increase of 116.7% from Ps. 1,345.5 million reported for 2014. This was mainly a consequence of higher EBITDA in the Cable TV and Internet access and Broadcasting and Programming segments, and was partially offset by higher peso depreciation. The Equity Shareholders Income for the period amounted to Ps.1,884.9 million, an increase of 134.4% compared with December 2014.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 4,306.5 million in 2015, an increase of 71.0% from Ps. 2,518.1 million reported for 2014. Out of the total CAPEX in 2015, 96.9% was allocated to the Cable TV and Internet access segment, 1.8% to the Broadcasting and Programming segment and the remaining 1.3% 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, 2015 was .89x and the Net Debt at the end of this period totaled Ps. 4,264.1 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 - DECEMBER 2015
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 118.9 | 1,744.6 | 2,622.7 | 80.3 | (216.4) | 4,349.9 | 15.7% |
Circulation | - | 1,995.5 | - | - | (0.1) | 1,995.4 | 7.2% |
Printing | - | 322.5 | - | - | (43.6) | 278.9 | 1.0% |
Video Subscriptions | 14,430.0 | - | - | - | - | 14,430.0 | 51.9% |
Internet Subscriptions | 4,818.0 | - | - | - | (16.4) | 4,801.6 | 17.3% |
Programming | - | - | 395.6 | - | (166.0) | 229.6 | 0.8% |
Other Sales
| 758.4 | 240.9 | 583.1 | 680.7 | (557.1) | 1,706.0 | 6.1% |
Total Sales | 20,125.4 | 4,303.4 | 3,601.4 | 761.0 | (999.6) | 27,791.5 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2014
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Elimination | Total | % |
Advertising | 87.2 | 1,407.3 | 1,898.2 | 41.7 | (174.5) | 3,260.0 | 16.5% |
Circulation | - | 1,288.4 | - | - | (0.0) | 1,288.3 | 6.5% |
Printing | - | 184.7 | - | - | (51.4) | 133.3 | 0.7% |
Video Subscriptions | 10,776.8 | - | - | - | - | 10,776.8 | 54.7% |
Internet Subscriptions | 2,755.6 | - | - | - | (12.1) | 2,743.4 | 13.9% |
Programming | - | - | 416.8 | - | (123.2) | 293.6 | 1.5% |
Other Sales
| 606.6 | 156.3 | 271.3 | 572.2 | (392.2) | 1,214.3 | 6.2% |
Total Sales | 14,226.1 | 3,036.6 | 2,586.3 | 613.9 | (753.4) | 19,709.6 | 100.0% |
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 41.5% to Ps. 20,125.4 million for 2015 compared to Ps. 14,226.1 million for 2014. 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 3,532,577 as of December 2015, compared to the 3,491,068 reported for the same date in 2014. Internet subscribers reached 2,025,860 in December 2015, compared to the 1,837,672 of December 2014.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 27.9% to Ps. 7,791.6 million for December 2015, compared to Ps. 6,091.3 million in December 2014. This was mainly due to higher programming costs, salaries, network expenses and fixed assets maintenance costs and taxes, duties and contributions.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 46.4% to Ps. 5,039.1 million for 2015, compared to Ps. 3,441.1 million reported in 2014. This increase is driven by higher salaries, fees for services, taxes, duties and contributions and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 25.2% to Ps. 1,663.3 million for 2015 from Ps. 1,328.3 million reported in 2014.
PRINTING AND PUBLISHING
Net Sales
The 41.7% increase of Net Sales to Ps. 4,303.4 million in 2015, 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 24.6% to Ps. 2,472.4 million in 2015, compared to Ps. 1,983.6 million in 2014. 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 44.4% to Ps. 1,718.5 million in 2015, compared to the Ps. 1,189.7 million reported for 2014. This was primarily the result of higher distribution costs, salaries, marketing expenses and fees for services
Depreciation and Amortization
Depreciation and amortization expenses increased by 10.9% to Ps. 67.8 million in 2015 compared to Ps. 61.2 million in 2014.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 39.2% to Ps. 3,601.4 million in 2015, compared to Ps. 2,586.3 million in 2014. The increase was primarily the result of higher advertising sales related to Canal Trece and Radio Mitre.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 25.5% to Ps. 2,007.9 million in 2015, compared to Ps. 1,600.2 million in 2014. This is attributable mainly to higher salaries, production and programming costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 30.7% to Ps. 641.1 million in 2015, compared to Ps. 490.7 million in 2014. The increase was primarily the result of higher salaries, fee for services, marketing expenses and taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 8.9% to Ps. 44.2 million in 2015 compared to Ps. 40.6 million reported in 2014.
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 24.0% to Ps. 761.0, from Ps. 613.9 million reported in 2014, due to due to higher sales at Gestión Compartida, fees at Grupo Clarín and revenues in digital content. EBITDA resulted in Ps. 1.3 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
2015 | 2014 | YoY | 4Q15 | 3Q15 | 4Q14 | QoQ | YoY | |
Homes Passed (1) | 7,795.4 | 7,514.1 | 3.7% | 7,795.4 | 7,753.8 | 7,514.1 | 0.5% | 3.7% |
Bidirectional Homes Passed | 72.1% | 68.9% | 4.6% | 72.1% | 70.2% | 68.9% | 2.7% | 4.6% |
Unique Subscribers | 3,873.7 | 3,791.7 | 2.2% | 3,873.7 | 3,871.0 | 3,791.7 | 0.1% | 2.2% |
Cable TV | ||||||||
Total Consolidated Subscribers (1)(3) | 3,532.6 | 3,491.1 | 1.2% | 3,532.6 | 3,535.0 | 3,491.1 | (0.1%) | 1.2% |
Subscribers - Argentina | 3,395.3 | 3,359.1 | 1.1% | 3,395.3 | 3,398.5 | 3,359.1 | (0.1%) | 1.1% |
Subscribers – International (Uruguay) | 137.3 | 131.9 | 4.0% | 137.3 | 136.5 | 131.9 | 0.5% | 4.0% |
% over Homes Passed | 45.3% | 46.5% | (2.5%) | 45.3% | 45.6% | 46.5% | (0.6%) | (2.5%) |
Total Equity Subscribers(4) | 3,664.1 | 3,619.8 | 1.2% | 3,664.1 | 3,666.3 | 3,619.8 | (0.1%) | 1.2% |
Churn Rate % | 12.6% | 13.6% | (7.1%) | 13.1% | 11.5% | 13.6% | 14.2% | (4.1%) |
Digital Video | ||||||||
Digital Ready Pay TV Subs | 3,180.3 | 2,774.0 | 14.6% | 3,180.3 | 3,118.1 | 2,774.0 | 2.0% | 14.6% |
Total Digital Decoders | 1,642.1 | 1,405.0 | 16.9% | 1,642.1 | 1,584.4 | 1,405.0 | 3.6% | 16.9% |
Argentina | 1,444.2 | 1,235.8 | 16.9% | 1,444.2 | 1,391.7 | 1,235.8 | 3.8% | 16.9% |
International | 197.9 | 169.2 | 16.9% | 197.9 | 192.7 | 169.2 | 2.7% | 16.9% |
Penetration over Digital Ready TV Subs | 51.6% | 50.6% | 1.9% | 51.6% | 50.8% | 50.6% | 1.6% | 1.9% |
Internet Subscribers | ||||||||
Total Internet Subscribers (1) | 2,025.9 | 1,837.7 | 10.2% | 2,025.9 | 1,982.0 | 1,837.7 | 2.2% | 10.2% |
Cablemodem(1) | 2,018.1 | 1,828.1 | 10.4% | 2,018.1 | 1,973.9 | 1,828.1 | 2.2% | 10.4% |
ADSL(1) | 3.31 | 4.5 | (26.5%) | 3.3 | 3.5 | 4.5 | (5.9%) | (26.5%) |
Dial Up (1) | 4.5 | 5.1 | (12.7%) | 4.5 | 4.6 | 5.1 | (2.1%) | (12.7%) |
% over Bidirectional Homes Passed | 34.9% | 35.5% | (1.7%) | 34.9% | 36.4% | 35.5% | (4.2%) | (1.7%) |
Total ARPU(2) | 477.6 | 339.5 | 40.7% | 519.0 | 510.2 | 385.1 | 1.7% | 34.8% |
(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
2015 | 2014 | YoY | 4Q15 | 3Q15 | 4Q14 | QoQ | YoY | |
Circulation (1) | 261.7 | 276.5 | (5.3%) | 254.4 | 259.1 | 269.0 | (1.8%) | (5.5%) |
Circulation share % (2) | 39.4% | 38.7% | 1.7% | 39.5% | 39.9% | 38.3% | (1.2%) | 2.9% |
Advertising share %(3) | 51.2% | 53.4% | (4.1%) | 50.4% | 51.1% | 52.5% | (1.2%) | (4.0%) |
(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
2015 | 2014 | YoY | 4Q15 | 3Q15 | 4Q14 | QoQ | YoY | |
Advertising Share % (1) | 39.0% | 37.4% | 4.2% | 39.5% | 40.2% | 38.7% | (1.8%) | 2.0% |
Audience Share % (2) | ||||||||
Prime Time | 37.3% | 33.3% | 12.2% | 37.3% | 39.3% | 34.2% | (5.2%) | 9.0% |
Total Time | 30.4% | 26.7% | 13.8% | 31.6% | 31.5% | 28.1% | 0.3% | 12.5% |
(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
2015 | 2014 | YoY | |
Page Views (1) | 783.9 | 752.9 | 4.1% |
Unique Visitors(1) | 65.1 | 44.4 | 46.5% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | December 2015 | December 2014 | % Change | September 2015 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 2,897.8 | 1,704.2 | 70.0% | 2,736.1 | 5.9% |
Financial loans | 532.8 | 396.6 | 34.3% | 769.5 | (30.8%) |
Negotiable obligations | 1,661.5 | 752.5 | 120.8% | 1,200.5 | 38.4% |
Accrued interest | 196.0 | 121.8 | 60.9% | 76.7 | 155.5% |
Acquisition of equipment | 389.9 | 168.9 | 130.9% | 239.7 | 62.7% |
Sellers Financing Capital | 1.9 | 3.8 | (50.6%) | 177.8 | (98.9%) |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 21.0 | 14.1 | 49.3% | 15.3 | 37.8% |
Related Parties accrued interest | 1.7 | 2.6 | (35.8%) | 3.9 | (56.6%) |
Bank overdraft | 93.0 | 243.9 | (61.9%) | 252.9 | (63.2%) |
Non-Current Financial Debt | 4,071.9 | 2,925.5 | 39.2% | 2,816.3 | 44.6% |
Financial loans | 149.5 | 40.5 | 269.0% | 22.8 | 556.7% |
Negotiable obligations | 3,321.7 | 2,568.1 | 29.3% | 2,400.1 | 38.4% |
Accrued interest | - | - | NA | - | NA |
Acquisition of equipment | 591.4 | 316.9 | 86.7% | 393.5 | 50.3% |
Sellers Financing Capital | - | - | NA | - | NA |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 9.2 | - | NA | - | NA |
Related accrued interest | - | - | NA | - | NA |
Bank overdraft | - | - | NA | - | NA |
Total Financial Debt (A) | 6,969.7 | 4,629.7 | 50.5% | 5,552.5 | 25.5% |
Measurement at fair Value | (32.7) | (36.5) | 10.3% | (28.2) | (15.9%) |
Total Short Term and Long Term Debt | 6,937.0 | 4,593.2 | 51.0% | 5,524.3 | 25.6% |
Cash and Cash Equivalents (B) | 2,705.6 | 1,745.0 | 55.0% | 1,935.6 | 39.8% |
Net Debt (A) - (B) | 4,264.1 | 2,884.7 | 47.8% | 3,616.9 | 17.9% |
Net Debt/Adjusted Ebitda (1) | 0.55x | 0.49x | 11.4% | 0.37x | 47.4% |
% USD Debt | 88.3% | 84.5% | 4.5% | 80.6% | 9.5% |
% Ar. Ps Debt | 11.7% | 15.5% | (24.5%) | 19.4% | (39.7%) |
Total Financial Debt(1) and Net Debt, increased from Ps. 4,629.7 million to Ps. 6,969.7 million and from Ps. 2,884.7 million to Ps. 4,264.1 million respectively. This represents an increase of 50.5% in the Total Debt and an increase of 47.8% in the Net Debt.
Debt coverage ratio (1) as of December 31th, 2015 was 0.55x in the case of Net Debt and of 0.89x 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)
| 156.0 |
GCLA (LSE) Price per GDS (USD) | 19.8 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 2,845.4 |
Closing Price | March 9th, 2016 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its Fourth Quarter Results for 2015, on Thursday, March 10th, 2016.
Time: 12:00pm Buenos Aires Time/3:00pm London Time/10:00am 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: 17825428
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on March 10th, 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, 2015 AND 2014
In Argentine Pesos (Ps.)
December 31, 2015 | December 31, 2014 | ||
Revenues | 27,791,529,688 | 19,709,606,003 | |
Cost of Sales (1) | (13,917,510,596) | (11,011,684,118) | |
Subtotal - Gross Profit | 13,874,019,092 | 8,697,921,885 | |
Selling Expenses (1) | (3,640,512,643) | (2,512,467,811) | |
Administrative Expenses (1) | (3,668,183,355) | (2,590,759,136) | |
Other Income and Expense, net | 99,907,085 | (638,268) | |
Financial Costs | (2,934,798,478) | (1,720,839,210) | |
Other Financial Results, net | (129,638,226) | (9,585,875) | |
Financial Results | (3,064,436,704) | (1,730,425,085) | |
Equity in Earnings from Affiliates and Subsidiaries | 544,629,950 | 71,895,433 | |
Income before Income Tax and Tax on Assets | 4,145,423,425 | 1,935,527,018 | |
Income Tax and Tax on Assets | (1,229,512,944) | (590,065,354) | |
Net Income for the Year | 2,915,910,481 | 1,345,461,664 | |
Other Comprehensive Income | |||
Items which may be reclassified to net income | |||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 165,911,907 | 359,868,325 | |
Other Comprehensive Income for the Year | 165,911,907 | 359,868,325 | |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 3,081,822,388 | 1,705,329,989 | |
Profit Attributable to: | |||
Shareholders of the Parent Company | 1,884,929,369 | 804,101,687 | |
Non-Controlling Interests | 1,030,981,112 | 541,359,977 | |
Total Comprehensive Income Attributable to: | |||
Shareholders of the Parent Company | 2,003,372,380 | 998,531,029 | |
Non-Controlling Interests | 1,078,450,008 | 706,798,960 | |
Basic and Diluted Earnings per Share from Continuing Operations | 6.56 | 2.80 | |
Basic and Diluted Earnings per Share - Total | 6.56 | 2.80 | |
(1)Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 1,795,472,451 and Ps. 1,444,862,809 for the years ended December 31, 2015 and 2014, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31th, 2015 available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2015 AND 2014
In Argentine Pesos (Ps.)
December 31, 2015 | December 31, 2014 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 9,026,866,357 | 6,370,192,626 | |
Intangible Assets | 258,146,566 | 330,614,131 | |
Goodwill | 2,907,928,844 | 2,932,411,625 | |
Deferred Tax Assets | 374,890,670 | 298,134,997 | |
Investments in unconsolidated affiliates | 1,721,354,821 | 345,510,998 | |
Other Investments | 458,789,781 | 275,625,916 | |
Inventories | 23,626,229 | 20,952,973 | |
Other Assets | 2,627,301 | 1,249,770 | |
Other Receivables | 1,389,317,682 | 134,959,494 | |
Trade Receivables | 82,905,052 | 91,505,064 | |
Total Non-Current Assets | 16,246,453,303 | 10,801,157,594 | |
CURRENT ASSETS | |||
Inventories | 490,692,852 | 272,051,027 | |
Other Assets | 11,456,124 | 7,063,276 | |
Other Receivables | 949,442,104 | 624,552,014 | |
Trade Receivables | 3,790,626,735 | 2,885,040,086 | |
Other Investments | 1,186,552,013 | 1,416,105,212 | |
Cash and Banks | 2,025,780,934 | 1,161,628,319 | |
Total Current Assets | 8,454,550,762 | 6,366,439,934 | |
Assets held for sale | - | 163,897,072 | |
Total Assets | 24,701,004,065 | 17,331,494,600 | |
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 | 592,243,638 | 477,244,708 | |
Retained Earnings | 4,630,068,532 | 2,995,139,163 | |
Total Attributable to Shareholders of the Parent Company | 7,232,950,673 | 5,483,022,374 | |
Attributable to Non-Controlling Interests | 3,175,288,997 | 2,282,464,286 | |
Total Shareholders' Equity | 10,408,239,670 | 7,765,486,660 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other | 432,475,314 | 336,650,704 | |
Debt | 4,033,351,896 | 2,870,498,547 | |
Deferred Tax Liabilities | - | 55,140,623 | |
Taxes Payable | 90,524,218 | 98,018,442 | |
Other Liabilities | 142,185,237 | 151,758,062 | |
Trade Payables and Other | 19,557,018 | 8,059,507 | |
Total Non-Current Liabilities | 4,718,093,683 | 3,520,125,885 | |
CURRENT LIABILITIES | |||
Debt | 2,901,737,366 | 1,718,898,323 | |
Seller Financings | 1,874,191 | 3,791,426 | |
Taxes Payable | 1,152,994,701 | 858,170,919 | |
Other Liabilities | 465,161,856 | 309,348,644 | |
Trade Payables and Other | 5,052,902,598 | 3,155,672,743 | |
Total Current Liabilities | 9,574,670,712 | 6,045,882,055 | |
Total Liabilities | 14,292,764,395 | 9,566,007,940 | |
Total Equity and Liabilities | 24,701,004,065 | 17,331,494,600 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | |||||||||||||||||
Shareholders' Contributions | Other items | Retained Earnings | Total Equity of Controlling Interests | Equity Attributable to 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 1st, 2014 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 283,025,052 | 5,207,274 | 112,710,297 | 1,838,495,623 | 479,831,556 | 4,729,908,305 | 1,748,885,854 | 6,478,794,159 | |||||
Set-up of reserves | - | - | - | - | - | - | 6,750,470 | 233,081,086 | (239,831,556) | - | - | - | |||||
Dividend Distribution | - | - | - | - | - | - | - | - | (240,000,000) | (240,000,000) | - | (240,000,000) | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (173,220,528) | (173,220,528) | |||||
Changes in Reserves for Acquisition of Investments | - | - | - | - | - | (5,416,960) | - | - | - | (5,416,960) | - | (5,416,960) | |||||
Net Income for the Year | - | - | - | - | - | - | - | - | 804,101,687 | 804,101,687 | 541,359,977 | 1,345,461,664 | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 194,429,342 | - | - | - | - | 194,429,342 | 165,438,983 | 359,868,325 | |||||
Balances as of December 31, 2014 | 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 (Note 14) | - | - | - | - | - | - | - | 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 | - | - | - | - | - | - | - | - | - | - | (185,625,298) | (185,625,298) | |||||
Changes in Reserves for Acquisition of Investments | - | - | - | - | - | (3,444,081) | - | - | - | (3,444,081) | - | (3,444,081) | |||||
Net Income for the Year | - | - | - | - | - | - | - | - | 1,884,929,369 | 1,884,929,369 | 1,030,981,112 | 2,915,910,481 | |||||
Other Comprehensive Income: | - | - | - | - | - | - | - | - | - | ||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 118,443,011 | - | - | - | - | 118,443,011 | 47,468,897 | 165,911,908 | |||||
Balances as of December 31, 2015 | 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 | |||||
(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, (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 YEARS ENDED DECEMBER 31, 2015 AND 2014
In Argentine Pesos (Ps.)
December 31, 2015 | December 31, 2014 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Net Income for the Year | 2,915,910,481 | 1,345,461,664 | ||
Income Tax and Tax on Assets | 1,229,512,944 | 590,065,354 | ||
Accrued Interest, net | 508,531,486 | 467,663,617 | ||
Adjustments to reconcile net income for the year to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 1,616,995,841 | 1,273,670,333 | ||
Amortization of Intangible Assets and Film Library | 178,476,610 | 171,192,476 | ||
Net of allowances | 395,243,945 | 308,809,307 | ||
Financial Income, except interest | 1,281,807,954 | 916,000,785 | ||
Equity in Earnings from Affiliates and Subsidiaries | (544,629,950) | (71,895,433) | ||
Other Income and Expense | (11,834,986) | (2,429,866) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (1,081,152,917) | (981,796,079) | ||
Other Receivables | (549,221,729) | 128,424,822 | ||
Inventories | (200,112,307) | (4,926,577) | ||
Other Assets | (3,623,522) | (8,147,338) | ||
Trade Payables and Other | 1,733,409,930 | 693,891,890 | ||
Taxes Payable | (103,331,874) | (50,789,403) | ||
Other Liabilities | 105,340,775 | 42,841,380 | ||
| Provisions | (68,382,752) | (61,751,565) | |
| Income Tax and Tax on Assets Payments | (968,324,342) | (300,721,859) | |
| ||||
| Net Cash Flows Provided by Operating Activities | 6,434,615,587 | 4,455,563,508 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (4,306,500,821) | (2,518,051,100) | |
| Acquisition of Intangible Assets | (84,902,589) | (52,783,723) | |
| Acquisition of Subsidiaries, Net of Cash Acquired | (817,329,686) | (7,496,998) | |
| Acquisition of Call Option | (849,919,134) | - | |
| Proceeds from Sale of Property, Plant and Equipment | 15,633,257 | 8,084,997 | |
| Dividends collected | 76,512,732 | 68,036,191 | |
| Transactions with Securities, Bonds and Other Financial Instruments, Net | 264,431,126 | (957,385,607) | |
| Collections of Interest | 2,951,410 | 2,330,092 | |
| Collections of Certificates of Deposit | 262,747,410 | 556,677,572 | |
| ||||
| Net Cash Flows used in Investment Activities | (5,436,376,295) | (2,900,588,576) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans | 1,526,831,691 | 994,580,890 | |
| Repayment of Loans and Issue Expenses | (1,348,076,730) | (1,684,625,657) | |
| Payment of Interest | (679,689,632) | (515,163,442) | |
| Collections (Settlement) on Derivatives | 55,304,520 | 4,242,112 | |
| Payment of Dividends | (250,000,000) | (240,000,000) | |
| Setup of Reserve Account / Escrow Funds | - | (11,428,239) | |
| Payments to Non-Controlling Interests, net | (189,836,977) | (172,501,105) | |
| ||||
| Net Cash Flows used in Financing Activities | (885,467,128) | (1,624,895,441) | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 847,812,488 | 164,435,765 | |
| ||||
| Net Increase in Cash Flow | 960,584,652 |
| 94,515,256 |
| Cash and Cash Equivalents at the Beginning of the Year (Note 2.25) | 1,717,383,640 |
| 1,650,463,169 |
| Effect of Consolidation of Companies | 27,594,786 |
| - |
| Cash and Cash Equivalents at the Closing of the Year (Note 2.25) | 2,705,563,078 |
| (1) 1,744,978,425 |
(1) Includes a reclassficiation of Ps. 27.6 million (as mentioned in Note 13 of the Consolidated Financial Statements).