12 May 2017 13:00
Grupo Clarín announces its
Results for the First Quarter 2017 (1Q17)
Buenos Aires, Argentina, May 12th, 2017 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its first quarter results for 2017. Figures are stated in Argentine Pesos, unless otherwise indicated.
On September 28, 2016, Grupo Clarín's Shareholders approved a split-up of Grupo Clarín's equity interest in Cablevisión S.A, the subsidiary that operates Grupo Clarín's cable television, internet and telephony segment, into a new Argentine corporation under the name of Cablevisión Holding S.A. ("CVH"). After the split-up is complete, CVH will own directly and indirectly, 60% equity interest in Cablevision.
Grupo Clarín will retain substantially all assets and liabilities, and continue with substantially all the activities and operations of its remaining business segments that are not be specifically allocated to CVH.
Accordingly, the Company Financial Statements as of March 2017 presented the figures of the Cable, Internet Access and Telephony segment as discontinued operations for all periods; all the activities and operations of its remaining business segments are consolidated as continued operations. This is the result of the implementation of International Financial Reporting Standards ("IFRS") number 5.
In spite of that, for the purpose of this presentation, figures have been prepared including continued and discontinued operations. For further information about continued and discontinued operations, see the appendix of this presentation or our Financial Statements as of March 2017.
Highlights (1Q17 vs. 1Q16):
§Net Sales totaled Ps. 11,876.2 million, an increase of 32.2% from 1Q16, 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 Broadcasting and Programming and circulation sales in the Printing and Publishing segments.
§Adjusted EBITDA (1) reached Ps. 3,693.7 million, an increase of 29.8% from 1Q16, mainly driven by higher sales in the Cable, Internet access and Telephony segment and, to a lesser extent, to higher sales in the Broadcasting and Programming segment.
§Grupo Clarín's Adjusted EBITDA Margin (2) for 1Q17 was 31.1%, compared to 31.7% in 1Q16.
§Income for the period totaled Ps. 1,806.5 million, an increase of 62.3% from the Ps. 1,113.2 million reported in 1Q16, and the Income for the period attributable to Equity Shareholders amount to Ps 1,048.7 million from Ps. 632.7 million, an increase of 65.7%.
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: alex@jasford.com | E-mail: clarin@i-advize.com
|
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 1Q17 | 1Q16 | % Ch. | 4Q16 | QoQ |
Net Sales | 11,876.2 | 8,985.6 | 32.2% | 11,580.5 | 2.6% |
Adjusted EBITDA (1) | 3,693.7 | 2,844.7 | 29.8% | 3,009.1 | 22.8% |
Adjusted EBITDA Margin (2) | 31.1% | 31.7% | (1.8%) | 26.0% | 19.7% |
Income for the period | 1,806.5 | 1,113.2 | 62.3% | 887.9 | 103.5% |
Attributable to: | |||||
Equity Shareholders | 1,048.7 | 632.7 | 65.7% | 534.6 | 96.2% |
Non-Controlling Interests | 757.8 | 480.5 | 57.7% | 353.3 | 114.5% |
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies on the basis of operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
OPERATING RESULTS
Net sales reached Ps. 11,876.2 million, an increase of 32.2% from Ps. 8,985.6 million in 1Q16 mainly due to ARPU and subscriber growth in the Cable TV, Internet access segment and to a lesser extent, to higher advertising sales in Broadcasting and Programming and circulation revenues in the Printing and Publishing segments.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 1Q17 | 1Q16 | YoY | 4Q16 | QoQ |
Cable TV, Internet access and Telephony | 9,433.1 | 7,068.5 | 33.5% | 8,333.8 | 13.2% |
Printing and Publishing | 1,379.5 | 1,213.8 | 13.7% | 1,655.1 | (16.7%) |
Broadcasting and Programming | 1,066.6 | 711.9 | 49.8% | 1,614.6 | (33.9%) |
Digital Content and Others | 402.6 | 274.2 | 46.8% | 409.3 | (1.6%) |
Subtotal | 12,281.8 | 9,268.3 | 32.5% | 12,012.8 | 2.2% |
Eliminations | (405.6) | (282.7) | 43.5% | (432.4) | (6.2%) |
Total | 11,876.2 | 8,985.6 | 32.2% | 11,580.5 | 2.6% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 5,030.9 million, an increase of 31.0% from Ps. 3,841.1 million reported for 1Q16 due to higher costs across all business segments, mainly in Cable TV and Internet access and Telephony and in Printing and Publishing segments.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 3,151.7 million, an increase of 37.0% from Ps. 2,299.8 million in 1Q16. This increase was mainly due to higher costs in the Cable TV, Internet access and Telephony and in Printing and Publishing segments.
Adjusted EBITDA reached Ps. 3,693.7 million, an increase of 29.8% from Ps. 2,844.7 million reported for 1Q16, driven by higher sales in the Cable TV, Internet access and Telephony segment and to a lesser extent, to higher EBITDA and margin expansion in the Broadcasting and Programming segment.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 1Q17 | 1Q16 | YoY | 4Q16 | QoQ |
Cable TV, Internet access and Telephony | 3,780.8 | 2,778.1 | 36.1% | 2,753.3 | 37.3% |
Printing and Publishing | (280.3) | (7.5) | NA | (91.6) | NA |
Broadcasting and Programming | 214.4 | 72.8 | 194.3% | 424.6 | (49.5%) |
Digital Content and Others | (21.2) | 1.3 | NA | (77.1) | NA |
Subtotal | 3,693.7 | 2,844.7 | 29.8% | 3,009.1 | 22.8% |
Eliminations(2) | -
| -
| NA
| -
| NA
|
Total | 3,693.7
| 2,844.7
| 29.8%
| 3,009.1
| 22.8%
|
Financial results net totaled Ps. (91.0) million compared to Ps. (772.1) million for 1Q16. The decrease of the negative result was mainly due to peso appreciation during 1Q17, which went from Ps 15.89 per dollar at the end of December 2016, to Ps 15.39 per dollar as of March 31th, 2017; compared with the peso depreciation of 2016 with went from Ps 13.04 per dollar at the end of December 2015 to Ps. 14.70 per dollar as of March 31th, 2016.
Equity in earnings from unconsolidated affiliates in 1Q17 totaled Ps. 97.6 million, compared to Ps. 170.2 million for 1Q16.
Other Income (expenses), net reached Ps. 42.1 million, compared to Ps. 8.0 million in 1Q16.
Income tax as of March 2017 reached Ps. (935.3) million, from Ps. (542.6) million in March 2016.
Income for the period totaled Ps. 1,806.5 million, an increase of 62.3% from Ps. 1,113.2 million reported for 1Q16. This was mainly a consequence of higher EBITDA in the Cable TV, Internet access and Telephony and Broadcasting and Programming segments, and peso appreciation. The Equity Shareholders Income for the period amounted to Ps.1,048.7million, an increase of 65.7% compared with 1Q16.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 2,588.4 million in 1Q17, an increase of 53.6% from Ps. 1,684.7 million reported for 1Q16. Out of the total CAPEX in 1Q17, 97.1% was allocated to the Cable TV, Internet access and Telephony segment, 1.8% to the Broadcasting and Programming segment and the remaining 1.1% 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 March 31th, 2017 was .69x and the Net Debt at the end of this period totaled Ps. 6,427.5 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 - MARCH 2017
(In millions of Ps.) | Cable TV, Internet access and Telephony | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 20.2 | 469.3 | 746.3 | 34.4 | (67.7) | 1,202.6 | 10.1% |
Circulation | - | 734.2 | - | - | (57.9) | 676.3 | 5.7% |
Printing | - | 50.5 | - | - | (13.1) | 37.5 | 0.3% |
Video Subscriptions | 5,673.8 | - | - | - | - | 5,673.8 | 47.8% |
Internet Subscriptions | 2,738.4 | - | - | - | (8.8) | 2,729.6 | 23.0% |
Programming | - | - | 255.4 | - | (65.6) | 189.8 | 1.6% |
IDEN Telecommun. | 633.3
| - | - | - | - | 633.3 | 5.3% |
Other Sales
| 367.5 | 125.4 | 65.0 | 368.1 | (192.6) | 733.4 | 6.2% |
Total Sales | 9,433.1 | 1,379.5 | 1,066.6 | 402.6 | (405.6) | 11,876.2 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - MARCH 2016
(In millions of Ps.) | Cable TV, Internet access and Telephony | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % | |
Advertising | 20.6 | 415.1 | 460.2 | 22.4 | (73.5) | 844.8 | 9.4% | |
Circulation | - | 669.8 | - | - | (34.8) | 635.0 | 7.1% | |
Printing | - | 82.7 | - | - | (13.3) | 69.4 | 0.8% | |
Video Subscriptions | 4,405.8 | - | - | - | - | 4,405.8 | 49.0% | |
Internet Subscriptions | 1,616.1 | - | - | - | (6.1) | 1,609.9 | 17.9% | |
Programming | - | - | 121.7 | - | (15.0) | 106.7 | 1.2% | |
IDEN Telecommun. | 763.2 | - | - | - | - | 763.3 | 8.5% | |
Other Sales
| 262.7 | 46.2 | 130.0 | 251.8 | (139.9) | 550.7 | 6.1% | |
Total Sales | 7,068.5 | 1,213.8 | 711.9 | 274.2 | (282.7) | 8,985.6 | 100.0% | |
RESULTS BY BUSINESS SEGMENT
CABLE TV, INTERNET ACCESS AND TELEPHONY
Net Sales
Net sales increased by 33.5% to Ps. 9,433.1 million for 1Q17 compared to Ps. 7,068.5 million for 1Q16. 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 TV, Broadband and Digital subscribers. Total Consolidated Cable TV basic subscribers reached 3,510,434 as of March 2017, compared to the 3,506,595 reported for the same date in 2016. Internet subscribers reached 2,208,381 in March 2017, compared to the 2,041,775 of March 2016.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 27.8% to Ps. 3,339.3 million for March 2017, compared to Ps. 2,612.7 million in March 2016. This was mainly due to higher programming costs, salaries, duties and contributions and fixed assets maintenance costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 37.9% to Ps. 2,313.0 million for 1Q17, compared to Ps. 1,677.8 million reported in 1Q16. This increase is driven by higher salaries, fees for services, duties and contributions and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 69.6% to Ps. 941.2 million for 1Q17 from Ps. 554.8 million reported in 1Q16.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 49.8% to Ps. 1,066.6 million in 1Q17, compared to Ps. 711.9 million in 1Q16. 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 35.5% to Ps. 634.9 million in 1Q17, compared to Ps. 468.6 million in 1Q16. This is attributable mainly to higher salaries, programming costs and fees for services.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 27.5% to Ps. 217.3 million in 1Q17, compared to Ps. 170.4 million in 1Q16. The increase was primarily the result of higher salaries, marketing expenses and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 36.4% to Ps. 18.6 million in 1Q17 compared to Ps. 13.7 million reported in 1Q16.
PRINTING AND PUBLISHING
Net Sales
The 13.7% increase of Net Sales to Ps. 1,379.5 million in 1Q17, was the result of higher sales in circulation and advertising.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 37.8% to Ps. 1,018.3 million in 1Q17, compared to Ps. 739.1 million in 1Q16. The increase was mainly the result of severance payments, printing and distribution costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 33.0% to Ps. 641.5 million in 1Q17, compared to the Ps. 482.2 million reported for 1Q16. This was primarily the result of distribution costs, salaries, severance payments and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 44.6% to Ps. 30.6 million in 1Q17 compared to Ps. 21.2 million in 1Q16.
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, e-commerce 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 46.8% to Ps. 402.6, from Ps. 274.2 million reported in 1Q16, due to higher sales in digital content, e-commerce, Gestión Compartida and revenues from trade fairs and exhibitions business. EBITDA resulted in Ps. (21,2) million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
1Q17 | 1Q16 | YoY | 4Q16 | QoQ | ||||||
Homes Passed (1) | 7,833.7 | 7,812.9 | 0.3% | 7,832.9 | 0.0% |
| ||||
Bidirectional Homes Passed | 76.0% | 73.1% | 4.1% | 75.1% | 1.2% |
| ||||
Unique Subscribers | 3,902.3
| 3,871.0
| 0.8%
| 3,912.2
| (0.3%)
|
| ||||
Cable TV |
| |||||||||
Total Consolidated Subscribers (1)(3) | 3,510.4 | 3,506.6 | 0.1% | 3,527.7 | (0.5%) |
| ||||
Subscribers - Argentina | 3,367.7 | 3,368.6 | (0.0%) | 3,385.5 | (0.5%) |
| ||||
Subscribers - International (Uruguay) | 142.7 | 138.0 | 3.4% | 142.2 | 0.3% |
| ||||
% over Homes Passed | 44.8% | 44.9% | (0.2%) | 45.0% | (0.5%) |
| ||||
Total Equity Subscribers(4) | 3,641.6 | 3,638.0 | 0.1% | 3,658.2 | (0.5%) |
| ||||
Churn Rate % | 15.3% | 15.3% | (0.1%) | 14.4% | 6.6% |
| ||||
Digital Video |
| |||||||||
Digital Ready Pay TV Subs | 3,021.1 | 2,994.2 | 0.9% | 3,014.7 | 0.2% |
| ||||
Total Digital Decoders | 2,076.8 | 1,655.3 | 25.5% | 1,828.6 | 13.6% |
| ||||
Argentina | 1,849.5 | 1,452.5 | 27.3% | 1,605.7 | 15.2% |
| ||||
International | 227.3 | 202.9 | 12.0% | 222.9 | 2.0% |
| ||||
Penetration over Digital Ready TV Subs | 68.7% | 55.3% | 24.3% | 60.7% | 13.3% |
| ||||
Internet Subscribers |
| |||||||||
Total Internet Subscribers (1) | 2,208.4 | 2,041.8 | 8.2% | 2,182.6 | 1.2% |
| ||||
Cablemodem(1) | 2,206.1 | 2,034.3 | 8.4% | 2,180.2 | 1.2% |
| ||||
ADSL(1) | 2.23 | 3.1 | (27.6%) | 2.4 | (8.2%) |
| ||||
Dial Up (1) | 0.0 | 4.4 | (99.8%) | 0.0 | NA |
| ||||
% over Bidirectional Homes Passed | 36.0% | 34.7% | 4.0% | 36.0% | 0.0% |
| ||||
Total ARPU(2) | 822.2 | 590.3 | 39.3% | 710.6 | 15.7% |
| ||||
TELEPHONY
1Q17 | 1Q16 | YoY | 4Q16 | QoQ | |
Mobile Postpaid Subs(1) | 674.49 | 892.75 | (24.4%) | 730.86 | (7.7%) |
Postpaid ARPU(2) | 271.8 | 223.1 | 21.8% | 262.4 | 3.6% |
(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
1Q17 | 1Q16 | YoY | 4Q16 | QoQ | |
Circulation (1) | 211.6 | 247.4 | (14.5%) | 230.3 | (8.1%) |
Circulation share % (2) | 40.1% | 40.6% | (1.2%) | 41.6% | (3.6%) |
Advertising share %(3) | 51.3% | 55.0% | (6.8%) | 51.2% | 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
1Q17 | 1Q16 | YoY | 4Q16 | QoQ | |
Advertising Share % (1) | 36.2% | 37.2% | (2.7%) | 39.4% | (8.0%) |
Audience Share % (2) | |||||
Prime Time | 32.1% | 32.3% | (0.5%) | 38.9% | (17.3%) |
Total Time | 30.4% | 29.1% | 4.4% | 33.6% | (9.6%) |
(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
1Q17 | 1Q16 | YoY | |
Page Views (1) | 926.4 | 825.2 | 12.3% |
Unique Visitors(1) | 65.7 | 61.6 | 6.7% |
(1)In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | March 2017 | March 2016 | % Change | December 2016 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 1,814.0 | 4,452.9 | (59.3%) | 1,300.9 | 39.4% |
Financial loans | 385.3 | 410.2 | (6.1%) | 239.8 | 60.7% |
Negotiable obligations | - | 3,075.8 | (100.0%) | - | NA |
Accrued interest | 163.5 | 114.5 | 42.8% | 44.7 | 266.1% |
Acquisition of equipment | 757.8 | 511.8 | 48.1% | 795.1 | (4.7%) |
Sellers Financing Capital | 13.1 | 2.1 | 525.4% | 14.3 | (8.5%) |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 8.4 | 22.5 | (62.7%) | 8.4 | - |
Related Parties accrued interest | 0.2 | 2.9 | (93.4%) | 0.2 | 3.6% |
Bank overdraft | 485.8 | 313.1 | 55.2% | 198.6 | 144.6% |
Non-Current Financial Debt | 8,400.8 | 3,302.4 | 154.4% | 8,760.9 | (4.1%) |
Financial loans | 63.2 | 155.6 | (59.4%) | 83.4 | (24.2%) |
Negotiable obligations | 7,695.0 | 2,496.4 | 208.2% | 7,945.0 | (3.1%) |
Accrued interest | - | - | NA | - | NA |
Acquisition of equipment | 632.5 | 640.7 | (1.3%) | 723.0 | (12.5%) |
Sellers Financing Capital | - | - | NA | - | NA |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 10.0 | 9.7 | 3.9% | 9.4 | 6.2% |
Related accrued interest | - | - | NA | - | NA |
Bank overdraft | - | - | NA | - | NA |
Total Financial Debt (A) | 10,214.8 | 7,755.3 | 31.7% | 10,061.8 | 1.5% |
Measurement at fair Value | (46.1) | (5.7) | (709.4%) | (47.9) | 3.8% |
Total Short Term and Long Term Debt | 10,168.7 | 7,749.6 | 31.2% | 10,013.9 | 1.5% |
Cash and Cash Equivalents (B) | 3,787.3 | 4,305.7 | (12.0%) | 3,350.7 | 13.0% |
Net Debt (A) - (B) | 6,427.5 | 3,449.6 | 86.3% | 6,711.1 | (4.2%) |
Net Debt/Adjusted Ebitda (1) | 0.44x | 0.3x | 43.5% | 0.56x | (22.0%) |
% USD Debt | 91.9% | 88.3% | 4.1% | 95.1% | (3.3%) |
% Ar. Ps Debt | 8.1% | 11.7% | (30.8%) | 4.9% | 64.5% |
Total Financial Debt(1) and Net Debt, increased from Ps. 7,755.3 million to Ps. 10,214.8 million and from Ps. 3,449.6 million to Ps. 6,427.5 million respectively. This represents an increase of 31.7% in the Total Debt and an increase of 86.3% in the Net Debt.
Debt coverage ratio (1) as of March 31th, 2017 was 0.44x in the case of Net Debt and of 0.69x 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.
APPENDIX
NET SALES
(In millions of Ps.) | 1Q17 | 1Q16 | YoY | 4Q16 | QoQ | |
Discontinued | Cable TV, Internet access and Telephony | 9,433.1 | 7,068.5 | 33.5% | 8,333.8 | 13.2% |
Operations | ||||||
Continued Operations | Printing and Publishing | 1,379.5 | 1,213.8 | 13.7% | 1,655.1 | (16.7%) |
Broadcasting and Programming | 1,066.6 | 711.9 | 49.8% | 1,614.6 | (33.9%) | |
Digital Content and Others | 402.6 | 274.2 | 46.8% | 409.3 | (1.6%) | |
Eliminations | (172.9) | (113.9) | 51.7% | (217.6) | (20.6%) | |
Subtotal Continued Operations | 2,675.8 | 2,085.9 | 28.3% | 3,461.4 | (22.7%) | |
Eliminations | (232.7) | (168.8) | 37.9% | (214.8) | 8.3% | |
Total | 11,876.2 | 8,985.6 | 32.2% | 11,580.5 | 2.6% | |
ADJUSTED EBITDA
(In millions of Ps.) | 1Q17 | 1Q16 | YoY | 4Q16 | QoQ | |
Discontinued | Cable TV, Internet access and Telephony | 3,780.8 | 2,778.1 | 36.1% | 2,753.3 | 37.3% |
Operations | ||||||
Continued Operations | Printing and Publishing | (280.3) | (7.5) | NA | (91.6) | NA |
Broadcasting and Programming | 214.4 | 72.8 | 194.3% | 424.6 | (49.5%) | |
Digital Content and Others | (21.2) | 1.3 | NA | (77.1) | NA | |
Subtotal Continued Operations | (87.1) | 66.7 | NA | 255.9 | NA | |
Total | 3,693.7 | 2,844.7 | 29.8% | 3,009.1 | 22.8% | |
STOCK AND MARKET INFORMATION
Grupo Clarín trades its stock in the Buenos Aires Stock Exchange (BCBA) and in the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.
GCLA (BCBA) Price per Share (ARS)
| 243.0 |
GCLA (LSE) Price per GDS (USD) | 31.0 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 4,455.0 |
Closing Price | May 11th, 2017 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín S.A. will host a conference call and webcast presentation to discuss its results for the First Quarter of 2017 on Friday, May 12, 2017.
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:
https://www.webcaster4.com/Webcast/Page/1117/20929
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: 69230240
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com/ir prior to the call, on March 13th, 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 THREE-MONTH PERIODS ENDED MARCH 31, 2017 AND 2016
In Argentine Pesos (Ps.)
March 31, 2017 | March 31, 2016 | ||
Revenues | 2,675,819,784 | 2,085,888,673 | |
Cost of Sales (1) | (1,904,624,432) | (1,371,558,308) | |
Subtotal - Gross Profit | 771,195,352 | 714,330,365 | |
Selling Expenses (1) | (454,754,672) | (353,627,428) | |
Administrative Expenses (1) | (463,035,318) | (334,275,388) | |
Other Income and Expenses, net | 33,443,757 | 6,992,237 | |
Financial Costs | (50,861,350) | (53,115,585) | |
Other Financial Results, net | (40,880,207) | (25,387,508) | |
Financial Results | (91,741,557) | (78,503,093) | |
Equity in Earnings from Affiliates and Subsidiaries | 57,142,577 | 22,830,572 | |
Income before Income Tax and Tax on Assets | (147,749,861) | (22,252,735) | |
Income Tax and Tax on Assets | 50,158,851 | (7,024,098) | |
Income for the period from continuing operations | (97,591,010) | (29,276,833) | |
Discontinued Operations | |||
Net Income from Discontinued Operations | 1,904,073,495 | 1,142,447,129 | |
Income for the period | 1,806,482,485 | 1,113,170,296 | |
Other Comprehensive Income | |||
Items which may be reclassified to net income | |||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 668,578 | 7,663,836 | |
Variation in Translation Differences of Foreign Operations from Discontinued Operations | (104,748,428) | 41,663,545 | |
Other Comprehensive Income for the period | (104,079,850) | 49,327,381 | |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 1,702,402,635 | 1,162,497,677 | |
Profit Attributable to: | |||
Shareholders of the Parent Company | 1,048,656,644 | 632,709,828 | |
- | |||
Non-Controlling Interests | 757,825,841 | 480,460,468 | |
Total Comprehensive Income Attributable to: | |||
Shareholders of the Parent Company | 1,001,695,405 | 674,463,004 | |
Non-Controlling Interests | 700,707,230 | 488,034,673 | |
Basic and Diluted Earnings per Share from Continuing Operations | (0.30) | (0.10) | |
Basic and Diluted Earnings per Share from Discontinued Operations | 3.95 | 2.30 | |
Basic and Diluted Earnings per Share - Total | 3.65 | 2.20 | |
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 59,467,576 and Ps. 40,240,265 for the three-month periods ended March 31, 2017 and 2016, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of March 2017, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2017 AND DECEMBER 31, 2016
In Argentine Pesos (Ps.)
March 31, 2017 | December 31, 2016 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 821,907,433 | 780,775,774 | |
Intangible Assets | 210,629,178 | 221,713,090 | |
Goodwill | 270,923,529 | 270,923,529 | |
Deferred Tax Assets | 659,416,467 | 532,896,812 | |
Investment in Unconsolidated Affiliates | 370,762,956 | 368,314,257 | |
Other Investments | - | 7,412,878 | |
Inventories | 22,134,993 | 15,805,039 | |
Other Assets | 2,032,096 | 2,122,552 | |
Other Receivables | 166,331,299 | 159,206,993 | |
Trade Receivables | 97,072,417 | 99,857,137 | |
Total Non-Current Assets | 2,621,210,368 | 2,459,028,061 | |
CURRENT ASSETS | |||
Inventories | 1,000,464,399 | 901,013,829 | |
Other Assets | 35,413,643 | 11,838,743 | |
Other Receivables | 1,177,175,552 | 486,550,805 | |
Trade Receivables | 3,303,983,506 | 3,582,782,739 | |
Other Investments | 546,108,637 | 328,346,695 | |
Cash and Banks | 259,665,337 | 416,006,084 | |
Total Current Assets | 6,322,811,074 | 5,726,538,895 | |
Assets Held for Distribution to Shareholders | 30,244,610,193 | 28,082,220,838 | |
Total Assets | 39,188,631,635 | 36,267,787,794 | |
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 | 708,676,950 | 755,638,189 | |
Accumulated Income | 7,908,767,008 | 6,860,110,364 | |
Total Attributable to Shareholders of the Parent Company | 10,628,082,461 | 9,626,387,056 | |
Attributable to Non-Controlling Interests | 4,477,011,590 | 4,416,373,963 | |
Total Shareholders' Equity | 15,105,094,051 | 14,042,761,019 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other | 225,769,950 | 228,252,293 | |
Debt | 80,683,774 | 469,172,621 | |
Deferred Tax Liabilities | 686,199 | 209,849 | |
Taxes Payable | 78,952,249 | 59,188,405 | |
Other Liabilities | 56,424,826 | 61,662,068 | |
Trade Payables and Other | 38,652,921 | 27,347,968 | |
Total Non-Current Liabilities | 481,169,919 | 845,833,204 | |
CURRENT LIABILITIES | |||
Debt | 614,130,847 | 339,731,089 | |
Seller Financings | 13,051,699 | 14,256,467 | |
Taxes Payable | 251,763,536 | 296,868,894 | |
Other Liabilities | 612,644,306 | 508,464,913 | |
Trade Payables and Other | 2,926,490,128 | 2,958,209,807 | |
Total Current Liabilities | 4,418,080,516 | 4,117,531,170 | |
Liabilities Held for Distribution to Shareholders | 19,184,287,149 | 17,261,662,401 | |
Total Liabilities | 24,083,537,584 | 22,225,026,775 | |
Total Equity and Liabilities | 39,188,631,635 | 36,267,787,794 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2017 AND 2016
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | Equity Attributable to Non-Controlling Interests | |||||||||||||||
Shareholders' Contributions | Other Items | Accumulated Income | 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) | Retained Earnings | Total Equity | |||||||
Balances as of January 1st, 2017 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 814,523,312 | (58,885,123) | 119,460,767 | 4,210,607,765 | 2,530,041,832 | 9,626,387,056 | 4,416,373,963 | 14,042,761,019 | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (640,069,603) | (640,069,603) | ||||
Income for the period | - | - | - | - | - | - | - | - | 1,048,656,644 | 1,048,656,644 | 757,825,841 | 1,806,482,485 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | (46,961,239) | - | - | - | - | (46,961,239) | (57,118,611) | (104,079,850) | ||||
Balances as of March 31, 2017 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 767,562,073 | (58,885,123) | 119,460,767 | 4,210,607,765 | 3,578,698,476 | 10,628,082,461 | 4,477,011,590 | 15,105,094,051 | ||||
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 | ||||
Income for the period | - | - | - | - | - | - | - | - | 632,709,828 | 632,709,828 | 480,460,468 | 1,113,170,296 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 41,753,176 | - | - | - | - | 41,753,176 | 7,574,205 | 49,327,381 | ||||
Balances as of March 31, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 637,650,581 | (3,653,767) | 119,460,767 | 2,625,678,396 | 2,517,639,197 | 7,907,413,677 | 3,663,323,670 | 11,570,737,347 | ||||
(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.
March 31, 2017 | March 31, 2016 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Income for the period | 1,806,482,485 | 1,113,170,296 | ||
Income Tax and Tax on Assets | (50,158,851) | 7,024,098 | ||
Accrued Interest, net | 42,160,514 | 25,685,001 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 33,260,083 | 24,297,293 | ||
Amortization of Intangible Assets and Film Library | 26,207,493 | 15,942,972 | ||
Net allowances | 17,730,047 | 13,215,361 | ||
Financial Income, except interest | 5,821,246 | (41,895,761) | ||
Equity in Earnings from Affiliates and Subsidiaries | (57,142,577) | (22,830,572) | ||
Other Income and Expenses | (10,395,580) | (3,607,814) | ||
Net Income from Discontinued Operations | (1,904,073,495) | (1,142,447,129) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | 283,082,436 | 274,125,844 | ||
Other Receivables | (103,122,614) | (78,625,779) | ||
Inventories | (106,678,975) | (137,025,656) | ||
Other Assets | (24,454,819) | 922,131 | ||
Trade Payables and Other | (21,039,499) | (59,304,608) | ||
Taxes Payable | (5,015,517) | (28,916,625) | ||
Other Liabilities | 90,653,508 | 61,190,989 | ||
| Provisions | (22,703,944) | (12,975,030) | |
| Income Tax and Tax on Assets Payments | (97,181,619) | (67,233,022) | |
| Net Cash Flows Provided by Discontinued Operating Activities | 2,561,918,016 | 1,518,202,369 | |
| ||||
| Net Cash Flows Provided by Operating Activities | 2,465,348,338 | 1,458,914,358 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (75,236,141) | (62,960,970) | |
| Acquisition of Intangible Assets | (14,364,259) | (14,048,016) | |
| Payments for Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates | - | (964,250) | |
| Collection of Interest | - | 14,621,310 | |
| Proceeds from Sale of Property, Plant and Equipment | 11,552,656 | 3,607,815 | |
| Transactions with Securities, Bonds and Other Financial Instruments, Net | 3,237,301 | - | |
| Collections of Certificates of Deposit | - | 5,515,462 | |
| Net Cash Flows used in Discontinued Investment Activities | (2,214,117,198) | (2,131,380,167) | |
| ||||
| Net Cash Flows used in Investment Activities | (2,288,927,641) | (2,185,608,816) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans Obtained | 290,000,288 | 270,948,668 | |
| Repayment of Loans and Issue Expenses | (55,023,003) | (29,950,485) | |
| Payment of Interest | (27,135,096) | (19,805,054) | |
| Payments to Non-Controlling Interests, net | - | (560,001) | |
| Net Cash Flows used in Discontinued Financing Activities | 13,167,204 | (422,260,703) | |
| ||||
| Net Cash Flows provided by / (used in) Financing Activities | 221,009,393 | (201,627,575) | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR CONTINUING OPERATIONS | 22,156,221 | 27,645,954 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR DISCONTINUED OPERATIONS | 17,004,194 | 460,499,469 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 39,160,415 | 488,145,423 | |
| ||||
| Net Increase / (Decrease) in cash flow | 436,590,505 |
| (440,176,610) |
| Cash and Cash Equivalents at the Beginning of the Year | 3,350,687,278 |
| 2,705,563,078 |
| Effect of Consolidation of Companies | - |
| 2,040,277,249 |
| Cash and Cash Equivalents at the Closing of the Period (Note 2.4) | 3,787,277,783 |
| 4,305,663,717 |