GCLA.L Regulatory News (GCLA)

RNS Number : 7747L

Grupo Clarin S.A.

12 May 2010

 

Grupo Clarín announces its

Results for the First Quarter of 2010 (1Q10)

 

 

Buenos Aires, Argentina, May 12th, 2010 - 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 2010. Figures in this report have been prepared in accordance with Argentine GAAP as of March 31st, 2010 and are stated in Argentine Pesos, unless otherwise indicated.

 

Highlights (1Q10 vs. 1Q09):

 

§ Net Sales totaled Ps. 1,643.3 million, an increase of 8.8% from 1Q09, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, higher sales in the Printing and Publishing segment, and partially offset by lower revenues in the Broadcasting and Programming segment.

§ Adjusted EBITDA (1) reached Ps. 529.8 million, an increase of 21.6% from 1Q09, mainly driven by higher sales in the Cable and Internet access segment.

§ Grupo Clarín's Adjusted EBITDA Margin (2) for 1Q10 was 32.2%, compared to 28.9% in 1Q09.

§ Net Income totaled Ps. 94.1 million, compared to Ps. (34.8) million reported in 1Q09.

 

FINANCIAL HIGHLIGHTS

(In millions of Ps.)	1Q10	1Q09	% Ch.	4Q09	QoQ
Net Sales	1,643.3	1,509.8	8.8%	1,783.4	(7.9%)
Adjusted EBITDA (1)	529.8	435.7	21.6%	518.6	2.2%
Adjusted EBITDA Margin (2)	32.2%	28.9%	11.7%	29.1%	10.9%
Net Income	94.1	(34.8)	-	95.9	(1.9%)

 

 

(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. Because Adjusted EBITDA is not an Argentine GAAP measure, 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.

 

Enquiries:

 

In Buenos Aires:

Alfredo Marín/M. Julia Díaz Ardaya/Romina Vázquez

Grupo Clarín

Email: investors@grupoclarin.com

Website: http://www.grupoclarin.com/ir

 

In London:

Alex Money/Lorna Ellen

Temple Bar Advisory

Tel: +44 20 7002 1080

Email: clarin@templebaradvisory.com

 

In New York:

Melanie Carpenter/Peter Majeski

I-advize Corporate Communications

Tel: +1 212 406 3692

Email: clarin@i-advize.com

OPERATING RESULTS

 

Net sales reached Ps. 1,643.3 million, an increase of8.8% from Ps. 1,509.8 million in 1Q09 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment, higher sales in the Printing and Publishing segment and partially offset by lower revenues in the Broadcasting and Programming segment.

 

Following is a breakdown of Net Sales by business segment:

 

NET SALES

 

(In millions of Ps.)	1Q10	1Q09	YoY	4Q09	QoQ
Cable TV and Internet Access	1,111.9	995.5	11.7%	1,083.9	2.6%
Printing and Publishing	391.5	356.1	9.9%	461.0	(15.1%)
Broadcasting and Programming	182.6	225.0	(18.8%)	283.9	(35.7%)
Digital Content and Others	53.1	43.2	22.7%	56.5	(6.0%)
Subtotal	1,739.0	1,619.9	7.4%	1,885.4	(7.8%)
Eliminations	(95.7)	(110.1)	(13.0%)	(102.0)	(6.2%)
Total	1,643.3	1,509.8	8.8%	1,783.4	(7.9%)

 

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 760.6 million, an increase of 0.6% from Ps. 756.0 million reported for 1Q09 due to higher costs in our business segments, mainly in Printing and Publishing and Digital Contents and others, partially offset by lower costs in the Cable TV and Internet access and Broadcasting and Programming segments.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 352.9 million, an increase of 11.0% from Ps. 318.1 million in 1Q09. This increase was mainly due to higher costs in the Printing and Publishing and Cable and Internet access segments.

 

Adjusted EBITDA reached Ps. 529.8 million, an increase of 21.6% from Ps. 435.7 million reported for1Q09, driven by higher sales in the Cable and Internet access and Printing and Publishing segments, and mainly due to margin expansion in the Cable and Internet access segment.

 

Following is a breakdown of adjusted EBITDA by business segment:

 

ADJUSTED EBITDA

(In millions of Ps.)	1Q10	1Q09	YoY	4Q09	QoQ
Cable TV and Internet access	457.2	347.3	31.7%	400.1	14.3%
Printing and Publishing	58.5	59.1	(1.0%)	100.8	(41.9%)
Broadcasting and Programming	12.7	25.5	(50.3%)	18.2	(30.1%)
Digital Content and Others	1.3	3.8	(64.8%)	(0.4)	-
Subtotal	529.8	435.7	21.6%	518.6	2.2%
Eliminations	-	-	-	-	-
Total	529.8	435.7	21.6%	518.6	2.2%

 

Financial results nettotaled Ps. (133.8) million compared to Ps (292.7) million for 1Q09. The decrease was mainly due to lower financial debt and peso depreciation, which went from 3.80 pesos per dollar at the end of 2009, to 3.88 pesos per dollar as of March 31st, 2010.

 

Equity in earnings from unconsolidated affiliates in 1Q10 totaled Ps. 2.3 million, compared to Ps. 3.5 million for 1Q09.

 

Other expenses, net reached Ps.3.5 million, compared to Ps. 9.1 million in 1Q09.

 

Income tax as of March 2010 reached Ps. (98.0) million, from Ps. (35.2) million in March 2009.

 

Net income totaled Ps. 94.1 million, compared with Ps. (34.8) million reported for 1Q09. This was mainlya consequence of higher EBITDA in the Cable & Internet access segment, partially offset by the peso depreciation during the first quarter of 2010. 

 

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 216.9 million in1Q10, a decrease of 2.2% from Ps. 221.9 million reported for 1Q09. Out of the total CAPEX in 1Q10, 91.1% was allocated to the Cable TV and Internet access segment, 5.3% to the Printing and Publishing segment and the remaining 3.6% to other activities. Our Capex in the Cable TV and Internet access segment contemplates subscriber growth, network upgrades, digitalization and further development of the triple play strategy.

 

Debt profile (1): Debt coverage ratio for the period ended March 31st, 2010 was 1.3x while Net Debt at the end of this period totaled Ps. 2,134.8 million.

 

(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (last 12 months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. The Net Debt does not include cash in reserve accounts in Cablevisión S.A.

 

 

SALES BREAKDOWN BY SOURCE OF REVENUE - 1Q10

 

(In millions of Ps.)	Cable TV & Internet access	Printing & Publishing	Broadcasting & Programming	Digital Content & Others	Eliminations	Total	%
Advertising	8.8	197.0	103.9	6.9	(21.7)	294.9	17.9%
Circulation	-	125.4	-	-	(0.0)	125.4	7.6%
Printing	-	36.3	-	-	(7.8)	28.5	1.7%
Video Subscriptions	831.2	-	-	-	-	831.2	50.6%
Internet Subscriptions	233.0	-	-	-	(0.3)	232.7	14.2%
Programming	-	-	63.3	-	(25.9)	37.3	2.3%
Other Sales	38.9	32.8	15.5	46.1	(40.0)	93.3	5.7%
Total Sales	1,111.9	391.5	182.6	53.1	(95.7)	1,643.3	100.0%

 

 

SALES BREAKDOWN BY SOURCE OF REVENUE - 1Q09

 

(In millions of Ps.)	Cable TV & Internet access	Printing & Publishing	Broadcasting & Programming	Digital Content & Others	Eliminations	Total	%
Advertising	9.0	178.5	87.2	5.1	(18.3)	261.5	17.3%
Circulation	-	113.3	-	-	-	113.3	7.5%
Printing	-	29.6	-	-	(7.3)	22.3	1.5%
Video Subscriptions	777.8	-	-	-	-	777.8	51.5%
Internet Subscriptions	182.8	-	-	-	-	182.8	12.1%
Programming	-	-	107.8	-	(47.8)	60.0	4.0%
Other Sales	25.9	34.7	30.0	38.2	(36.7)	92.1	6.1%
Total Sales	995.5	356.1	225.0	43.2	(110.1)	1,509.8	100.0%

 

 

RESULTS BY BUSINESS SEGMENT

 

CABLE TV AND INTERNET ACCESS

 

Net Sales

Net sales increased by 11.7% to Ps.1,111.9 million for 1Q10compared to Ps. 995.5 million for 1Q09. 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. The company has discontinued the consolidation of 99.6 thousand subscribers since October 1st, 2009. Therefore, Total Consolidated Cable TV Basic Subscribers reached 3,227,766 as of March 2010, compared to the 3,212,365 reported for the same date in 2009. Internet subscribers reached 1,011,649 in March 2010, compared to the 933,174 of March 2009.

 

Cost of Sales(Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) decreased by (2.4%) to Ps. 439.4 million for March 2010, compared to Ps. 450.2 million in March 2009. This was mainly due to lower programming costs associated to the unilateral rescission of the football contract with the AFA for the premier league matches, now being aired on broadcast TV, and also due to renegotiations with programming suppliers, partially offset by an increase in salaries and transmission costs.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 8.7% to Ps. 215.2 million for 1Q10, compared to Ps. 198.1 million reported in 1Q09. This increase is driven by higher fees for services, higher taxes, duties and contributions and commissions. 

 

Depreciation and Amortization

Depreciation and amortization expenses increased by 1.8% to Ps. 114.9 million for 1Q10 from Ps. 112.9 million reported in 1Q09.

 

 

PRINTING AND PUBLISHING

 

Net Sales

Net sales increased by 9.9% to Ps. 391.5 million in 1Q10, compared to Ps. 356.1 million in 1Q09. This was the result of higher sales in advertising, circulation, printing services and CIMECO.

 

Cost of Sales(Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 7.6% to Ps. 211.3 million in 1Q10, compared to Ps. 196.3 million in 1Q09. The increase was mainly the result of higher salaries and social security expenses and higher printing costs.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 20.8% to Ps. 121.7 million in 1Q10, compared to the Ps. 100.7 million reported for 1Q09. This was primarily the result of an increase in marketing expenses, higher salaries, wages and social security charges.

 

Depreciation and Amortization

Depreciation and amortization expenses increased by 12.9% to Ps. 18.2 million in 1Q10 compared to Ps. 16.1 million in 1Q09.

 

BROADCASTING AND PROGRAMMING

 

Net Sales

Net sales decreased by (18.8%) to Ps. 182.6 million in 1Q10, compared to Ps. 225.0 million in 1Q09. The decrease was primarily the result of lower sports programming sales due to the unilateral contract rescission by AFA, and was partially offset by higher advertising sales at Canal 13.

 

Cost of Sales(Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) decreased by  (15.6%) to Ps.128.3 million in 1Q10, compared to Ps. 152.0 million in 1Q09. This is attributable to lower sports programming production due to the unilateral contract rescission by AFA and lower co-production and events costs, partially offset by increases in salaries.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) decreased by(12.3%) to Ps. 41.6 million in 1Q10, compared to Ps. 47.4 million in 1Q09. The decrease was primarily the result of Ps. 7 million due to a reversal of allowances for doubtful accounts related to advertising and partially offset by salary increases.

 

Depreciation and Amortization

Depreciation and amortization expenses decreased by (41.0%) to Ps. 8.7 million in 1Q10 compared to Ps. 14.8 million reported in 1Q09.

 

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. Net sales to third parties are largely derived from advertising in our web pages and portals. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers. 

 

In this period, net sales increased 22.7% to Ps. 53.1 million from Ps. 43.2 million reported in 1Q09, due to higher sales in digital content and Gestión Compartida. EBITDA resulted in Ps. 1.3 million in comparison with the Ps. 3.8 million reported for 1Q09.

 

OPERATING STATISTICS BY BUSINESS SEGMENT

 

CABLE TV AND INTERNET ACCESS

	1Q10	1Q09	YoY		4Q09	QoQ
Homes Passed (1)	7,445.8	6,753.6	10.2%		7,457.0	(0.2%)
Bidirectional Homes Passed	56.5%	47.0%	20.3%		56.6%	(0.0%)
Cable TV
Total Consolidated Subscribers (1)(3)	3,227.8	3,212.4	0.5%		3,193.0	1.1%
Subscribers - Argentina	3,032.6	3,028.9	0.1%		3,001.4	1.0%
Subscribers - International	195.2	183.4	6.4%		191.5	1.9%
Uruguay	95.5	90.6	5.4%		93.8	1.9%
Paraguay	99.7	92.8	7.4%		97.7	2.0%
% over Homes Passed	43.4%	47.6%	(8.9%)		42.8%	1.2%
Total Equity Subscribers(4)	3,298.6	3,189.3	3.4%		3,262.4	1.1%
Churn Rate %	13.9%	16.9%	(18.2%)		15.4%	(10.0%)
Digital Video
Digital Ready Pay TV Subs	2,143.7	2,049.0	4.6%		2,122.3	1.0%
Total Digital Decoders	499.1	443.5	12.5%		472.0	5.7%
Argentina	413.9	382.6	8.2%		393.6	5.2%
International	85.2	60.9	39.9%		78.4	8.7%
Penetration over Digital Ready TV Subs	23.3%	18.7%	24.5%		22.2%	4.7%
Internet Subscribers
Total Internet Subscribers (1)	1,011.6	933.2	8.4%		988.0	2.4%
Cablemodem(1)	979.2	888.8	10.2%		953.7	2.7%
ADSL(1)	21.26	30.04	(29.2%)		22.5	(5.7%)
Dial Up (1)	11.2	14.4	(22.2%)		11.8	(4.9%)
% over Bidirectional Homes Passed	24.0%	29.4%	(18.2%)		23.4%	2.6%
Total ARPU(2)	115.4	103.7	11.4%		113.2	2.0%

 

(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

	1Q10	1Q09	YoY		4Q09	QoQ
Circulation (1)	379.2	410.1	(7.5%)		388.8	(2.5%)
Circulation share % (1)	44.9%	47.1%	(4.7%)		46.5%	(3.4%)
Advertising share %(2)	54.5%	56.0%	(2.7%)		54.9%	(0.7%)

 

(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: Monitor de Medios Publicitarios S.A.

 

BROADCASTING AND PROGRAMMING

 

	1Q10	1Q09	YoY		4Q09	QoQ
Advertising share %(1)	37.2%	37.2%	0.1%		39.6%	(6.1%)
Audience share % (2)
Prime Time	38.4%	37.4%	2.7%		41.5%	(7.5%)
Total Time	28.9%	29.4%	(1.9%)		29.6%	(2.3%)

 

 

(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. Prime Time is defined as Monday through Friday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12pm to 12am.

 

 

DIGITAL CONTENT AND OTHERS

	1Q10	1Q09	YoY
Page Views (1)	530.0	454.1	16.7%
Unique Visitors(1)	19.6	14.9	31.2%

 

(1)In millions. Average. Source IAB

 

DEBT AND LIQUIDITY

 

(In millions of Ps.)	March 10	March 09	% change	December 09	% change
Short Term and Long Term Debt
Current Financial Debt	369.7	439.6	(15.9%)	349.7	5.7%
Financial loans	32.1	148.4	(78.4%)	50.5	(36.5%)
Negotiable obligations	224.5	167.7	33.8%	221.4	1.4%
Accrued interest	68.6	62.6	9.6%	30.2	127.2%
Acquisition of equipment	31.7	7.1	347.3%	30.6	3.7%
Sellers Financing Capital	4.3	13.0	(67.1%)	4.4	(2.7%)
Sellers Financing accrued interest	0.0	17.8	(99.9%)	1.7	(99.0%)
Related Parties Capital	-	12.5	-	-	-
Related Parties accrued interest	0.4	0.8	(40.8%)	-	-
Bank overdraft	8.1	9.8	(17.3%)	10.9	(25.8%)
Non-Current Financial Debt	2,309.7	2,750.0	(16.0%)	2,263.1	2.1%
Financial loans	103.9	31.0	234.5%	103.7	0.2%
Negotiable obligations	2,045.8	2,163.2	(5.4%)	2,005.2	2.0%
Accrued interest	-	1.1	-	-	-
Acquisition of equipment	33.8	28.6	18.1%	32.1	5.4%
Sellers Financing	118.2	526.1	(77.5%)	116.3	1.6%
Related Parties Capital	8.1	-	-	5.9	-
Total Financial Debt (A)	2,679.4	3,189.6	(16.0%)	2,612.9	2.5%
Measurement at fair Value	(5.5)	(39.2)	(85.9%)	(11.4)	(51.7%)
Total Short Term and Long Term Debt	2,673.9	3,150.4	(15.1%)	2,601.4	2.8%
Cash and Cash Equivalents (B)*	544.7	438.2	24.3%	459.4	18.5%
Net Debt (A) - (B)	2,134.8	2,751.4	(22.4%)	2,153.4	(0.9%)
Net Debt/Adjusted Ebitda (Last 12 Months)	1.03x	1.6x	(34.4%)	1.1x	(5.4%)
% USD Debt	93.2%	85.3%	9.2%	92.9%	0.3%
% Ar. Ps Debt	6.8%	14.7%	(53.6%)	7.1%	(4.2%)

 

* Does not include Reserve Accounts amounting to 110.2 MM ARS as of March 31st, 2010.

 

Negotiable obligations include Cablevisión USD 100.0 MM notes due October 2012; Cablevisión USD 235.1 MM notes due October 2015, Multicanal USD 100.4 MM notes due July 2013, Multicanal USD 80.3 MM notes due July 2016 and AGEA Ps.  150.0 MM notes due 2011.

 

Total Financial Debt(1) and Net Debt, decreased from Ps. 3,189.6 million to Ps.2,679.4 million and decreased from Ps. 2,751.4 million to Ps. 2,134.8  million. This represents a decrease of (16.0%) in the Total Debt and a decreaseof(22.4%)in the Net Debt. 

 

Debt coverage ratio (1) as of March 31st, 2010 was 1.3x in terms of Total Financial Debt and was 1.03x in the case of Net Debt.

 

(1) Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (last 12 months). Net Debt ratio does not include Reserve Accounts amounting to 110.2 MM ARS as of March 31st, 2010.

 

 

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)	12.40
GCLA (LSE) Price per GDS (USD)	6.20
Total Shares	287,418,584
Total GDSs	143,709,292
Market Value (USD MM)	891.0
Closing Price	May 11th 2010

 

 

CONFERENCE CALL AND WEBCAST INFORMATION

 

Grupo Clarín will host a conference call and webcast to discuss its First Quarter Results for 2010, on Wednesday, May 12th, 2010.

 

Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marín, Investor Relations Officer

 

Time: 12 pm Buenos Aires Time/4:00 pm London Time/11:00 am New York Time

 

To access the conference call, please dial: from within Argentina + 0 800 333 0050; from within the United Kingdom +44 (800) 092 3582; from within the United States +1 (800) 311 9401; and from all other countries +1 (334) 323 7224. The Conference ID is #6118.

 

To access the simultaneous webcast presentation, please direct your browser to:

http://www.grupoclarin.com/ir 

 

There will be a 60 day 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) 323-7226 from anywhere outside the U.S. The replay passcode is: 51048255

 

The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on May 12th, and archived in our Website after its conclusion.

 

ABOUT THE COMPANY

 

Grupo Clarín is the largest media company in Argentina and the market leader in the Cable Television and Internet Access, Printing and Publishing, and Broadcasting and Programming segments. It's Cable Television network is one of the largest in Latin America, with one of the largest broadband subscriber base in Argentina. Its flagship newspaper -Diario Clarín- is the highest circulation newspaper in Latin. 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.

CONSOLIDATED BALANCE SHEETS

As of March 31, 2010 and December 31, 2009

In Argentine Pesos (Ps.)

 

	March 31, 2010		December 31, 2009
ASSETS
CURRENT ASSETS
Cash and banks	407,568,959		353,448,122
Short-term investments	137,092,220		105,994,857
Trade receivables, net	748,738,292		807,894,500
Other receivables, net	347,947,584		224,291,008
Inventories	263,759,838		233,796,980
Other assets	122,335,173		66,634,166
Total current assets	2,027,442,066		1,792,059,633
NON-CURRENT ASSETS
Trade receivables, net	7,165,221		7,383,794
Other receivables, net	122,844,264		114,889,697
Inventories	37,227,717		46,722,943
Investment in unconsolidated affiliates	60,447,300		67,598,985
Other investments	1,108,813		1,099,540
Property, plant and equipment, net	2,642,950,755		2,538,482,919
Intangible assets, net	774,891,905		806,361,141
Other assets	253,494		253,494
Subtotal	3,646,889,469		3,582,792,513
Goodwill	2,717,525,128		2,716,022,085
Total non-current assets	6,364,414,597		6,298,814,598
Total assets	8,391,856,663		8,090,874,231
LIABILITIES
CURRENT LIABILITIES
Accounts payable	703,585,089		668,572,856
Long-term debt	363,826,567		341,535,190
Salaries and Social Security payable	280,402,020		318,166,460
Taxes payable	445,545,949		363,603,538
Sellers financing	4,273,958		6,115,988
Other liabilities	79,511,838		73,641,115
Total current liabilities	1,877,145,421		1,771,635,147
NON-CURRENT LIABILITIES
Accounts payable	23,734,962		22,365,991
Long-term debt	2,187,900,570		2,138,246,066
Salaries and Social Security payable	428,574		478,956
Taxes payable	121,091,695		129,545,361
Sellers financing	118,157,919		116,250,465
Other liabilities	281,251,664		293,098,838
Provisions	135,366,529		129,763,743
Total non-current liabilities	2,867,931,913		2,829,749,420
Total liabilities	4,745,077,334		4,601,384,567
MINORITY INTEREST	770,745,992		708,556,355
SHAREHOLDERS' EQUITY	2,876,033,337		2,780,933,309
Total liabilities, minority interest and shareholders' equity	8,391,856,663		8,090,874,231

 

CONSOLIDATED STATEMENTS OF OPERATIONS

For the three-month periods ended March 31, 2010 and 2009

In Argentine Pesos (Ps.)

 

	March 31, 2010		March 31, 2009
Net sales	1,643,313,242		1,509,803,030
Cost of sales (excluding depreciation and amortization)	(760,579,003)		(755,922,791)
Subtotal	882,734,239		753,880,239
Expenses (excluding depreciation and amortization)
Selling expenses	(156,751,110)		(145,177,250)
Administrative expenses	(196,176,271)		(173,032,430)
Expenses subtotal	(352,927,381)		(318,209,680)
Depreciation of property, plant and equipment (1) and other investments	(112,370,287)		(108,733,560)
Amortization of intangible assets, goodwill and other assets	(32,319,377)		(37,204,384)
Depreciation and amortization subtotal	(144,689,664)		(145,937,944)
Financing and holding results
Generated by assets
Interest	4,005,290		9,301,174
Other taxes and expenses	(23,077,193)		(23,778,536)
Impairment of inventories and materials	(949,699)		(1,297,233)
Exchange differences	5,377,397		14,931,801
Holding gains on inventories	3,719,320		7,662,820
Holding losses on derivatives	(121,313)		(8,551,718)
Effect of financial discounts on assets and other	400,522		(61,881)
Generated by liabilities
Interest	(54,129,268)		(113,052,716)
Exchange differences	(56,921,377)		(209,229,346)
Effect of financial discounts on liabilities	(11,009,729)		51,089,254
CER restatement	(496,912)		(191,855)
Holding losses on derivatives	(513,200)		(18,917,312)
Other	(56,636)		(583,433)
Equity in earnings from unconsolidated affiliates, net	2,273,883		3,473,751
Other net income	3,516,649		9,081,407
Income before income tax, tax on assets and minority interest	257,134,928		9,608,792
Income tax and tax on assets	(98,020,688)		(35,237,698)
Minority interest	(65,038,074)		(9,219,938)
Net income (loss) for the period	94,076,166		(34,848,844)

 

(1) Chargeable to:

Cost of sales	(98,817,407)	(94,756,749)
Selling expenses	(7,450,680)	(8,543,141)
Administrative expenses	(6,102,200)	(5,396,369)

 

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of March 31th, 2010, available at http://www.grupoclarin.com/ir

 

CONSOLIDATED STATEMENTS OF CASH FLOWs

For the three-month periods ended March 31, 2010 and 2009

In Argentine Pesos (Ps.)

 

	March 31, 2010		March 31, 2009
CASH PROVIDED BY OPERATING ACTIVITIES
Net income (loss) for the period	94,076,166		(34,848,844)
Income tax and tax on assets	98,020,688		35,237,698
Accrued interest	50,123,978		103,751,542
Adjustments to reconcile net income for the period to cash provided by operating activities:
Depreciation of property, plant and equipment and other investments	112,370,287		108,733,560
Amortization of intangible assets, goodwill and other assets	32,319,377		37,204,384
Allowance for doubtful accounts	2,567,033		13,666,172
Provision for contingencies	9,808,970		10,838,852
Allowance for impairment of inventories and materials	949,699		1,297,233
Exchange difference and other financial results	54,346,991		144,243,524
Equity in earnings from unconsolidated affiliates, net	(2,273,883)		(3,473,751)
Minority interest	65,038,074		9,219,938
Holding losses on derivatives	634,513		27,469,030
Holding gains on inventories	(3,719,320)		(7,662,820)
Results on sale of property, plant and equipment	-		(9,413,762)
Changes in assets and liabilities:
Trade receivables	55,336,815		46,240,089
Other receivables	(115,455,210)		(92,729,998)
Inventories	(17,052,104)		13,241,105
Other assets	(264,204)		(1,016,324)
Accounts payable	38,552,965		(9,564,668)
Salaries and Social Security payable	(37,313,263)		7,307,405
Taxes payable	(23,872,959)		(5,231,228)
Other liabilities	2,793,574		18,905,680
Provisions	(4,220,822)		(5,482,317)
Income tax and tax on assets payments	(22,855,949)		(11,274,803)
Cash provided by operating activities	389,911,416		396,657,697
CASH USED IN INVESTMENT ACTIVITIES
Acquisition of property, plant and equipment, net	(216,927,371)		(221,896,143)
Acquisition of intangible assets	(1,563,399)		(2,570,144)
Acquisition of subsidiaries, net of cash acquired	-		(473,985)
Proceeds from sale of property, plant and equipment	22,711		16,529,935
Certificates of deposit	-		(42,238,301)
Collection of loans	3,828,681		-
Collection of dividends	603,327		-
Cash used in investment activities	(214,036,051)		(250,648,638)

 

CONSOLIDATED STATEMENTS OF CASH FLOWs

For the three-month periods ended March 31, 2010 and 2009

In Argentine Pesos (Ps.)

 

	March 31, 2010		March 31, 2009
CASH USED IN FINANCING ACTIVITIES
Loans obtained	15,473,491		5,845,966
Payment of loans	(39,996,911)		(33,982,944)
Payment of interest	(11,904,621)		(21,549,947)
Net (payments) collections of derivatives	(4,179,900)		8,504,571
Payment of sellers financing	(626,381)		(89,233,074)
Reserve account / Escrow funds	(54,809,379)		(96,190,955)
Payments to minority shareholders	-		(5,190,319)
Cash used in financing activities	(96,043,701)		(231,796,702)
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS	5,379,993		14,143,862
Net Increase (decrease) in cash flow	85,211,657		(71,643,781)
Cash and cash equivalents at the beginning of the year	459,135,441		467,592,070
Cash and cash equivalents at period end (1)	544,347,098		395,948,289

 

(1) Includes:

Cash and banks	407,568,959		302,639,159
Investments with maturities of less than three months	136,778,139		93,309,130

 

 

 

 

 

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