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Results for the Fourth Quarter and Full Year 2016

13 Mar 2017 12:00

RNS Number : 2657Z
Grupo Clarin S.A.
13 March 2017
 

Grupo Clarín announces its

 Results for the Fourth Quarter (4Q16) and Full Year of 2016 (FY16)

 

Buenos Aires, Argentina, March 13th, 2017 - 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 2016. 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 December 2016 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 December 2016.

 

 

Highlights (FY16 vs. FY15):

 

§ Net Sales totaled Ps. 41,178.1 million, an increase of 48.2% from 2015, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, driven by the consolidation of Nextel Argentina in the Cable TV, Internet access and Telephony segment.

§ Adjusted EBITDA (1) reached Ps. 11,896.6 million, an increase of 42.3% from 2015, mainly driven by higher sales in the Cable and Internet access and Telephony segment.

§ Grupo Clarín's Adjusted EBITDA Margin (2) for 2016 was 28.9%, compared to 30.1% in 2015.

§ Income for the period totaled Ps. 4,179.6 million, an increase of 43.3% from the Ps. 2,915.9 million reported in 2015, and the Income for the period attributable to Equity Shareholders amount to Ps 2,530.0 million from Ps. 1,884.9 million, an increase of 34.2%.

Investor Relations Contacts

In Buenos Aires:

In London:

In New York:

Agustín Medina Manson

Patricio Gentile

Alex Money

 

Melanie Carpenter

 

Grupo Clarín S.A.

Jasford IR

I-advize Corporate Communications

Tel: +54 11 4309 7215

Tel: +44 20 3289 5300

Tel: +1 212 406 3692

Email: investors@grupoclarin.com

E-mail: alexm@jasford.com

E-mail: clarin@i-advize.com

 

 

 

FINANCIAL HIGHLIGHTS

(In millions of Ps.)

2016

2015

% Ch.

4Q16

3Q16

4Q15

QoQ

YoY

Net Sales

 41,178.1

 27,791.5

 48.2%

 11,580.5

10,873.3

 7,810.1

 6.5%

48.3%

Adjusted EBITDA (1)

 11,896.6

 8,360.8

 42.3%

 3,009.1

 3,165.9

 1,954.0

 (5.0%)

54.0%

Adjusted EBITDA Margin (2)

28.9%

30.1%

 (4.0%)

26.0%

29.1%

25.0%

 (10.8%)

 3.9%

Income for the period

 4,179.6

 2,915.9

 43.3%

 887.9

 1,228.8

 175.7

 (27.7%)

 405.4%

Attributable to:

Equity Shareholders

 2,530.0

 1,884.9

 34.2%

534.6

767.7

 140.7

 (30.4%)

 279.9%

Non-Controlling Interests

1,649.6

 1,031.0

 60.0%

353.3

461.1

 35.0

 (23.4%)

 910.2%

 

(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. 41,178.1 million, an increase of 48.2% from Ps. 27,791.5 million in 2015 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, driven by the consolidation of Nextel Argentina in the Cable TV, Internet access and Telephony segment.

 

Following is a breakdown of Net Sales by business segment:

 

NET SALES

 

(In millions of Ps.)

2016

2015

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Cable TV, Internet access and Telephony

 30,571.2

20,125.4

 51.9%

 8,333.8

7,994.7

 5,501.8

 4.2%

 51.5%

Printing and Publishing

 5,775.8

 4,303.4

 34.2%

 1,655.1

1,511.9

 1,200.5

 9.5%

 37.9%

Broadcasting and Programming

 4,899.9

 3,601.4

 36.1%

 1,614.6

1,370.5

 1,144.2

 17.8%

 41.1%

Digital Content and Others

 1,268.0

 761.0

 66.6%

 409.3

 334.9

 225.1

 22.2%

 81.8%

Subtotal

 42,514.8

28,791.1

 47.7%

12,012.8

11,212.1

 8,071.7

 7.1%

 48.8%

Eliminations

 (1,336.7)

 (999.6)

 33.7%

 (432.4)

(338.8)

 (261.6)

 27.6%

 65.3%

Total

 41,178.1

27,791.5

 48.2%

 11,580.5

10,873.3

 7,810.1

 6.5%

 48.3%

 

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 18,227.7 million, an increase of 48.7% from Ps. 12,258.7 million reported for 2015 due to higher costs across all business segments, mainly in Cable TV and Internet access and Telephony because of the consolidation of the Mobile Argentine operations (Nextel Argentina).

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 11,053.8 million, an increase of 54.1% from Ps. 7,172.0 million in 2015. This increase was mainly due to higher costs and the consolidation of Nextel in the Cable TV, Internet access and Telephony segment.

 

Adjusted EBITDA reached Ps. 11,896.6 million, an increase of 42.3% from Ps. 8,360.8 million reported for 2015, driven by higher sales in Cable TV, Internet access and Telephony and to a lesser extent, to higher EBITDA in the Broadcasting and Programming segment.

 

 

Following is a breakdown of adjusted EBITDA by business segment:

 

ADJUSTED EBITDA

(In millions of Ps.)

2016

2015

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Cable TV, Internet access and Telephony

10,930.9

7,294.7

 49.8%

2,753.3

2,838.3

1,643.3

 (3.0%)

 67.5%

Printing and Publishing

 (104.7)

 112.6

 (193.1%)

 (91.6)

 (9.2)

 5.1

 NA

NA

Broadcasting and Programming

 1,201.6

 952.3

 26.2%

 424.6

 371.4

 319.5

 14.3%

 32.9%

Digital Content and Others

 (131.1)

 1.3

NA

 (77.1)

 (34.5)

 (13.9)

123.5%

 456.3%

Subtotal

11,896.6

8,360.8

 42.3%

3,009.1

3,165.9

1,954.0

 (5.0%)

 54.0%

Eliminations

-

 

-

 

 NA

 

-

 

-

 

-

 

 NA

 

 NA

 

Total

11,896.6

 

8,360.8

 

42.3%

 

3,009.1

 

3,165.9

 

1,954.0

 

 (5.0%)

 

54.0%

 

 

Financial results net totaled Ps. (2,857.2) million compared to Ps. (3,064.4) million for 2015. The decrease of the negative result was mainly due to lower peso depreciation during 2016, which went from Ps 13.04 per dollar at the end of December 2015, to Ps 15.89 per dollar as of December 31th, 2016; compared with the 2015 with went from Ps 8.55 per dollar at the end of December 2014 to Ps. 13.04 per dollar as of December 31th, 2015.

 

Equity in earnings from unconsolidated affiliates in 2016 totaled Ps. 160.2 million, compared to Ps. 544.6 million for 2015.

 

Other Income (expenses), net reached Ps. 158.1 million, compared to Ps. 99.9 million in 2015.

 

Income tax as of December 2016 reached Ps. (2,333.7) million, from Ps. (1,229.5) million in December 2015.

 

Income for the period totaled Ps. 4,179.6 million, an increase of 43.3% from Ps. 2,915.9 million reported for 2015. This was mainly a consequence of higher EBITDA in the Cable TV, Internet access and Telephony and Broadcasting and Programming segments, and it was partially offset by negative EBITDA in the Printing and Publishing segment. The Equity Shareholders Income for the period amounted to Ps.2,530.0 million, an increase of 34.2% compared with December 2015.

 

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 9,355.1 million in 2016, an increase of 117.2% from Ps. 4,306.5 million reported for 2015. Out of the total CAPEX in 2016, 96.7% was allocated to the Cable TV, Internet access and Telephony segment, 2.2% to the Broadcasting and Programming segment and the remaining 1.2% 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 December 31th, 2016 was .84x and the Net Debt at the end of this period totaled Ps. 6,711.1 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 2016

 

(In millions of Ps.)

Cable TV, Internet access and Telephony

Printing & Publishing

Broadcasting

& Programming

Digital Content

& Others

Eliminations

Total

%

Advertising

 111.6

 2,374.8

 3,513.1

 103.9

(269.1)

 5,834.3

14.2%

Circulation

 -

 2,548.3

 -

 -

(183.5)

 2,364.8

5.7%

Printing

 -

 361.5

 -

 -

(56.4)

 305.1

0.7%

Video Subscriptions

 18,750.4

 -

 -

 -

 -

 18,750.4

45.5%

Internet Subscriptions

 7,697.5

 -

 -

 -

(29.3)

 7,668.2

18.6%

Programming

 -

 -

 942.5

 -

(216.5)

 726.0

1.8%

IDEN Telecommun.

2,804.4

 

-

-

-

-

2,804.4

6.8%

Other Sales

 

 1,207.3

 491.1

 444.3

 1,164.1

(582.0)

 2,724.8

6.6%

Total Sales

 30,571.2

 5,775.8

 4,899.9

 1,268.0

(1,336.7)

 41,178.1

100.0%

 

 

SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2015

 

(In millions of Ps.)

Cable TV, Internet access and Telephony

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%

IDEN Telecommun.

-

-

-

-

-

-

0,0%

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%

 

 

 

 

 

 

RESULTS BY BUSINESS SEGMENT

 

CABLE TV AND INTERNET ACCESS AND TELEPHONY

 

Net Sales

Net sales increased by 51.9% to Ps. 30,571.2 million for 2016 compared to Ps. 20,125.4 million for 2015. 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 (on average), Broadband and Digital subscribers and the consolidation of Nextel Argentina. Total Consolidated Cable TV basic subscribers reached 3,527,674 as of December 2016, compared to the 3,532,577 reported for the same date in 2015. Internet subscribers reached 2,182,598 in December 2016, compared to the 2,025,860 of December 2015.

 

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased (including the consolidation of Nextel Argentina) by 52.1% to Ps. 11,849.0 million for December 2016, compared to Ps. 7,791.6 million in December 2015. This was mainly due to higher programming costs, network expenses and fixed assets maintenance costs.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased (including the consolidation of Nextel Argentina) by 54.6% to Ps. 7,791.3 million for 2016, compared to Ps. 5,039.1 million reported in 2015. This increase is driven by higher taxes, duties and contributions, salaries and fees for services.

 

Depreciation and Amortization

Depreciation and amortization expenses increased by 60.0% to Ps. 2,660.9 million for 2016 from Ps. 1,663.3 million reported in 2015.

 

BROADCASTING AND PROGRAMMING

 

Net Sales

Net sales increased by 36.1% to Ps. 4,899.9 million in 2016, compared to Ps. 3,601.4 million in 2015. 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 36.0% to Ps. 2,731.0 million in 2016, compared to Ps. 2,007.9 million in 2015. This is attributable mainly to higher salaries, fees for services, rights and programming costs.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 50.9% to Ps. 967.3 million in 2016, compared to Ps. 641.1 million in 2015. The increase was primarily the result of higher fees for services and salaries. 

 

Depreciation and Amortization

Depreciation and amortization expenses increased by 49.9% to Ps. 66.3 million in 2016 compared to Ps. 44.2 million reported in 2015.

 

PRINTING AND PUBLISHING

 

Net Sales

The 34.2% increase of Net Sales to Ps. 5,775.8 million in 2016, was the result of higher sales in advertising and circulation.

 

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 39.8% to Ps. 3,455.9 million in 2016, compared to Ps. 2,472.4 million in 2015. The increase was mainly the result of higher salaries, severance payments and printing costs.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 41.1% to Ps. 2,424.6 million in 2016, compared to the Ps. 1,718.5 million reported for 2015. This was primarily the result of higher salaries, fees for services and severance payments.

 

Depreciation and Amortization

Depreciation and amortization expenses increased by 30.8% to Ps. 88.7 million in 2016 compared to Ps. 67.8 million in 2015.

 

 

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 66.6% to Ps. 1,268.0, from Ps. 761.0 million reported in 2015, due to higher sales in digital content, e-commerce, Gestión Compartida and revenues from trade fairs and exhibitions business. EBITDA resulted in Ps. (131.1) million.

 

OPERATING STATISTICS BY BUSINESS SEGMENT

 

CABLE TV AND INTERNET ACCESS

2016

2015

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Homes Passed (1)

 7,832.9

 7,795.4

 0.5%

 7,832.9

 7,822.5

 7,795.4

 0.1%

 0.5%

 

Bidirectional Homes Passed

75.1%

72.1%

 4.2%

75.1%

74.2%

72.1%

 1.2%

 4.2%

 

Unique Subscribers

3,912.2

 

3,873.7

 

1.0%

 

3,912.2

 

3,911.2

 

3,873.7

 

0.0%

 

1.0%

 

 

Cable TV

 

Total Consolidated Subscribers (1)(3)

 3,527.7

 3,532.6

 (0.1%)

 3,527.7

 3,526.2

 3,532.6

 0.0%

 (0.1%)

 

Subscribers - Argentina

 3,385.5

 3,395.3

 (0.3%)

 3,385.5

 3,383.9

 3,395.3

 0.0%

 (0.3%)

 

Subscribers - International (Uruguay)

 142.2

 137.3

 3.6%

 142.2

 142.3

 137.3

 (0.0%)

 3.6%

 

% over Homes Passed

45.0%

45.3%

 (0.6%)

45.0%

45.1%

45.3%

 (0.1%)

 (0.6%)

 

Total Equity Subscribers(4)

 3,658.2

 3,664.1

 (0.2%)

 3,658.2

 3,659.0

 3,664.1

 (0.0%)

 (0.2%)

 

Churn Rate %

13.8%

12.6%

 9.1%

14.4%

12.8%

13.1%

 12.5%

 9.9%

 

Digital Video

 

Digital Ready Pay TV Subs

 3,014.7

 2,891.8

 4.2%

 3,014.7

 3,016.7

 2,891.8

 (0.1%)

 4.2%

 

Total Digital Decoders

 1,828.6

 1,642.1

 11.4%

 1,828.6

 1,789.9

 1,642.1

 2.2%

 11.4%

 

Argentina

 1,605.7

 1,444.2

 11.2%

 1,605.7

 1,570.5

 1,444.2

 2.2%

 11.2%

 

International

 222.9

 197.9

 12.6%

 222.9

 219.4

 197.9

 1.6%

 12.6%

 

Penetration over Digital Ready TV Subs

60.7%

56.8%

 6.8%

60.7%

59.3%

56.8%

 2.2%

 6.8%

 

Internet Subscribers

 

Total Internet Subscribers (1)

 2,182.6

 2,025.9

 7.7%

 2,182.6

 2,148.9

 2,025.9

 1.6%

 7.7%

 

Cablemodem(1)

 2,180.2

 2,018.1

 8.0%

 2,180.2

 2,145.8

 2,018.1

 1.6%

 8.0%

 

ADSL(1)

 2.42

 3.3

 (26.7%)

 2.4

 2.6

 3.3

 (7.4%)

 (26.7%)

 

Dial Up (1)

 0.0

 4.5

 (99.8%)

0.0

 0.4

 4.5

 (98.2%)

 (99.8%)

 

% over Bidirectional Homes Passed

36.0%

34.9%

 3.2%

36.0%

35.9%

34.9%

 0.3%

 3.2%

 

Total ARPU(2)

 643.5

 477.6

 34.8%

 710.6

 677.2

 519.0

 4.9%

 36.9%

 

 

TELEPHONY

2016

4Q16

3Q16

QoQ

Mobile Postpaid Subs(1)

730.9

 

730.9

807.5

(9.5%)

Postpaid ARPU(2)

243.0

262.4

251.3

4.4%

 

(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

2016

2015

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Circulation (1)

 237.1

 261.7

 (9.4%)

 230.3

 233,7

 254.4

 (1.4%)

 (9.4%)

Circulation share % (2)

40.9%

39.4%

 3.7%

41.6%

40.9%

39.5%

 1.7%

 5.4%

Advertising share %(3)

52.6%

51.2%

 2.8%

51.2%

53.0%

50.4%

 (3.5%)

 1.4%

 

(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

2016

2015

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Advertising Share % (1)

39.5%

39.0%

 1.3%

39.4%

41.4%

39.5%

 (4.8%)

 (0.2%)

Audience Share % (2)

Prime Time

34.8%

37.3%

 (6.8%)

38.9%

36.3%

37.3%

 7.0%

 4.2%

Total Time

32.0%

30.4%

 5.0%

33.6%

33.9%

31.6%

 (0.8%)

 6.4%

 

(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

2016

2015

YoY

Page Views (1)

 895.8

 783.9

 14.3%

Unique Visitors(1)

 64.5

 65.1

 (0.9%)

 

(1)In millions. Average. Source DAX and Company Estimates.

 

DEBT AND LIQUIDITY

 

(In millions of Ps.)

December 2016

December 2015

% Change

September 2016

% Change

Short Term and Long Term Debt

Current Financial Debt

 1,300.9

 2,897.8

 (55.1%)

 1,357.6

 (4.2%)

Financial loans

 239.8

 532.8

 (55.0%)

 220.1

 8.9%

Negotiable obligations

 -

 1,661.5

 (100.0%)

 -

 NA

Accrued interest

 44.7

 196.0

 (77.2%)

 166.2

 (73.1%)

Acquisition of equipment

 795.1

 389.9

 103.9%

 755.0

 5.3%

Sellers Financing Capital

 14.3

 1.9

 660.7%

 16.3

 (12.5%)

Sellers Financing accrued interest

 -

 -

 NA

 -

 NA

Related Parties Capital

 8.4

 21.0

 (60.1%)

 3.4

 147.1%

Related Parties accrued interest

 0.2

 1.7

 (88.8%)

 0.1

 115.7%

Bank overdraft

 198.6

 93.0

 113.5%

 196.5

 1.1%

Non-Current Financial Debt

 8,760.9

 4,071.9

 115.2%

 8,577.8

 2.1%

Financial loans

 83.4

 149.5

 (44.2%)

 108.2

 (22.9%)

Negotiable obligations

 7,945.0

 3,321.7

 139.2%

 7,655.0

 3.8%

Accrued interest

 -

 -

 NA

 -

 NA

Acquisition of equipment

 723.0

 591.4

 22.3%

 805.8

 (10.3%)

Sellers Financing Capital

 -

 -

 NA

 -

 NA

Sellers Financing accrued interest

 -

 -

 NA

 -

 NA

Related Parties Capital

 9.4

 9.2

 2.6%

 8.8

 6.8%

Related accrued interest

 -

 -

 NA

 -

 NA

Bank overdraft

 -

 -

 NA

 -

 NA

Total Financial Debt (A)

 10,061.8

 6,969.7

 44.4%

 9,935.4

 1.3%

Measurement at fair Value

 (47.9)

 (32.7)

 (46.6%)

 (47.3)

 (1.3%)

Total Short Term and Long Term Debt

 10,013.9

 6.937,0

 44.4%

 9,888.1

 1.3%

Cash and Cash Equivalents (B)

 3,350.7

 2,705.6

 23.8%

 3,311.4

 1.2%

Net Debt (A) - (B)

 6,711.1

 4,264.1

 57.4%

 6,624.0

 1.3%

Net Debt/Adjusted Ebitda (1)

0.56x

0.55x

 2.2%

0.52x

 6.6%

% USD Debt

95.1%

88.3%

 7.6%

95.1%

 (0.0%)

% Ar. Ps Debt

4.9%

11.7%

 (57.8%)

4.9%

 0.0%

 

Total Financial Debt(1) and Net Debt, increased from Ps. 6,969.7 million to Ps. 10,061.8 million and from Ps. 4,264.1 million to Ps. 6,711.1 million respectively. This represents an increase of 57.4% in the Total Debt and an increase of 57.4% in the Net Debt.

 

Debt coverage ratio (1) as of December 31th, 2016 was 0.56x in the case of Net Debt and of 0.84x 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.)

FY16

FY15

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Discontinued

Cable TV, Internet access and Telephony

30,571.2

20,125.4

51.9%

8,333.8

7,994.7

5,501.8

4.2%

51.5%

Operations

Continued Operations

Printing and Publishing

5,775.8

4,303.4

34.2%

1,655.1

1,511.9

1,200.5

9.5%

37.9%

Broadcasting and Programming

4,899.9

3,601.4

36.1%

1,614.6

1,370.5

1,144.2

17.8%

41.1%

Digital Content and Others

1,268.0

761.0

66.6%

409.3

334.9

225.1

22.2%

81.8%

Eliminations

(564.7)

(373.7)

51.1%

(217.6)

(132.0)

(103.7)

64.8%

109.8%

Subtotal Continued Operations

11,378.9

8,292.0

37.2%

3,461.4

3,085.3

2,466.2

12.2%

40.4%

Eliminations

(772.0)

(625.8)

23.4%

(214.8)

(206.7)

(157.9)

3.9%

36.0%

Total

41,178.1

27,791.5

48.2%

11,580.5

10,873.3

7,810.1

6.5%

48.3%

 

 

ADJUSTED EBITDA

 

(In millions of Ps.)

FY16

FY15

YoY

4Q16

3Q16

4Q15

QoQ

YoY

Discontinued

Cable TV, Internet access and Telephony

10,930.9

7,294.7

49.8%

2,753.3

2,838.3

1,643.3

(3.0%)

67.5%

Operations

Continued Operations

Printing and Publishing

(104.7)

112.6

(193.1%)

(91.6)

(9.2)

5.1

894.5%

(1903.7%)

Broadcasting and Programming

1,201.6

952.3

26.2%

424.6

371.4

319.5

14.3%

32.9%

Digital Content and Others

(131.1)

1.3

(10360%)

(77.1)

(34.5)

(13.9)

123.5%

456.3%

Subtotal Continued Operations

965.7

1,066.1

(9.4%)

255.9

327.7

310.7

(21.9%)

(17.7%)

Total

11,896.6

8,360.8

42.3%

3,009.1

3,165.9

1,954.0

(5.0%)

54.0%

 

 

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)

 

 207.0

GCLA (LSE) Price per GDS (USD)

 26.5

Total Shares

287,418,584

Total GDSs

143,709,292

Market Value (USD MM)

 3,808.3

Closing Price

Mar 10th, 2017

 

CONFERENCE CALL AND WEBCAST INFORMATION

 

Grupo Clarín S.A. will host a conference call and webcast presentation to discuss its results for the Fourth Quarter of 2016 on Monday, March 13, 2017.

 

Time: 12:00pm Buenos Aires Time/3:00pm 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/1117/19733

 

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: 33860231

 

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 YEARS ENDED DECEMBER 31, 2016 AND 2015

In Argentine Pesos (Ps.)

 

December 31, 2016

December 31, 2015

Revenues

11,378,887,347

8,291,992,388

Cost of Sales (1)

(7,003,551,922)

(4,926,694,896)

Subtotal - Gross Profit

4,375,335,425

3,365,297,492

Selling Expenses (1)

(1,728,968,802)

(1,202,643,174)

Administrative Expenses (1)

(1,864,144,211)

(1,228,754,283)

Other Income and Expenses, net

55,465,753

98,222,054

Financial Costs

(267,623,007)

(150,123,485)

Other Financial Results, net

(130,553,073)

19,155,581

Financial Results

(398,176,080)

(130,967,904)

Equity in Earnings from Affiliates and Subsidiaries

48,725,499

61,298,581

Income before Income Tax and Tax on Assets

488,237,584

962,452,766

Income Tax and Tax on Assets

(264,157,883)

(354,574,614)

Income for the period from continuing operations

224,079,701

607,878,152

Discontinued Operations

Net Income from Discontinued Operations

3,955,531,485

2,308,032,329

Net Income for the Year

4,179,611,186

2,915,910,481

Other Comprehensive Income

Items which may be reclassified to net income

Variation in Translation Differences of Foreign Operations from Continuing Operations

8,803,638

19,342,907

Variation in Translation Differences of Foreign Operations from Discontinued Operations

422,449,177

146,569,000

Other Comprehensive Income for the Year

431,252,815

165,911,907

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,610,864,001

3,081,822,388

Profit Attributable to:

Shareholders of the Parent Company

2,530,041,832

1,884,929,369

Non-Controlling Interests

1,649,569,354

1,030,981,112

Total Comprehensive Income Attributable to:

Shareholders of the Parent Company

2,748,667,739

2,003,372,380

Non-Controlling Interests

1,862,196,262

1,078,450,008

Basic and Diluted Earnings per Share from Continuing Operations

0.82

2.02

Basic and Diluted Earnings per Share from Discontinued Operations

7.98

4.54

Basic and Diluted Earnings per Share - Total

8.80

6.56

 

(1)Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 183,484,509 and Ps. 132,219,465 for the years ended December 31, 2016 and 2015, respectively.

 

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

 

 

 

 

 

 

 

 

 

GRUPO CLARÍN S.A.

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016 AND 2015

In Argentine Pesos (Ps.)

 

 

December 31, 2016

December 31, 2015

ASSETS

NON-CURRENT ASSETS

Property, Plant and Equipment

780,775,774

9,026,866,357

Intangible Assets

221,713,090

258,146,566

Goodwill

270,923,529

2,907,928,844

Deferred Tax Assets

532,896,812

374,890,670

Investment in Unconsolidated Affiliates

368,314,257

1,721,354,821

Other Investments

7,412,878

458,789,781

Inventories

15,805,039

23,626,229

Other Assets

2,122,552

2,627,301

Other Receivables

159,206,993

1,389,317,682

Trade Receivables

99,857,137

82,905,052

Total Non-Current Assets

2,459,028,061

16,246,453,303

CURRENT ASSETS

Inventories

901,013,829

490,692,852

Other Assets

11,838,743

11,456,124

Other Receivables

486,550,805

949,442,104

Trade Receivables

3,582,782,739

3,790,626,735

Other Investments

328,346,695

1,186,552,013

Cash and Banks

416,006,084

2,025,780,934

Total Current Assets

5,726,538,895

8,454,550,762

Assets Held for Distribution to Shareholders

28,082,220,838

-

Total Assets

36,267,787,794

24,701,004,065

EQUITY (as per the corresponding statement)

Attributable to Shareholders of the Parent Company

Shareholders' Contributions

2,010,638,503

2,010,638,503

Other Items

755,638,189

592,243,638

Accumulated Income

6,860,110,364

4,630,068,532

Total Attributable to Shareholders of the Parent Company

9,626,387,056

7,232,950,673

Attributable to Non-Controlling Interests

4,416,373,963

3,175,288,997

Total Shareholders' Equity

14,042,761,019

10,408,239,670

LIABILITIES

NON-CURRENT LIABILITIES

Provisions and Other

228,252,293

432,475,314

Debt

469,172,621

4,033,351,896

Deferred Tax Liabilities

209,849

-

Taxes Payable

59,188,405

90,524,218

Other Liabilities

61,662,068

142,185,237

Trade Payables and Other

27,347,968

19,557,018

Total Non-Current Liabilities

845,833,204

4,718,093,683

CURRENT LIABILITIES

Debt

339,731,089

2,901,737,366

Seller Financings

14,256,467

1,874,191

Taxes Payable

296,868,894

1,152,994,701

Other Liabilities

508,464,913

465,161,856

Trade Payables and Other

2,958,209,807

5,052,902,598

Total Current Liabilities

4,117,531,170

9,574,670,712

Liabilities Held for Distribution to Shareholders

17,261,662,401

-

Total Liabilities

22,225,026,775

14,292,764,395

Total Equity and Liabilities

36,267,787,794

24,701,004,065

 

 

 

 

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

In Argentine Pesos (Ps.)

 

Equity attributable to Shareholders of the Parent Company

Shareholders' Contributions

Other Items

Accumulated Income

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)

Retained Earnings

Total Equity

Balances as of January 1st 2015

287,418,584

309,885,253

1,413,334,666

2,010,638,503

477,454,394

(209,686)

119,460,767

2,071,576,709

804,101,687

5,483,022,374

2,282,464,286

7,765,486,660

Set-up of reserves

-

-

-

-

-

-

-

554,101,687

(554,101,687)

-

-

-

Dividend Distribution

-

-

-

-

-

-

-

-

(250,000,000)

(250,000,000)

-

(250,000,000)

Dividends and Other Movements of Non-Controlling Interest

-

-

-

-

-

-

-

-

-

-

(185,625,297)

(185,625,297)

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

47,468,896

165,911,907

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

Set-up of Reserves (Note 14)

-

-

-

-

-

-

-

1,584,929,369

(1,584,929,369)

-

-

-

Dividend Distribution

-

-

-

-

-

-

-

-

(300,000,000)

(300,000,000)

-

(300,000,000)

Dividends and Other Movements of Non-Controlling Interest

-

-

-

-

-

-

-

-

-

-

(621,111,296)

(621,111,296)

Changes in Reserves for Acquisition of Investments

-

-

-

-

-

(55,231,356)

-

-

-

(55,231,356)

-

(55,231,356)

Net Income for the Year

-

-

-

-

-

-

-

-

2,530,041,832

2,530,041,832

1,649,569,354

4,179,611,186

Other Comprehensive Income:

Variation in Translation Differences of Foreign Operations

-

-

-

-

218,625,907

-

-

-

-

218,625,907

212,626,908

431,252,815

Balances as of December 31, 2016

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

 

(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 1,884,929,369; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756, (iii) Optional reserve for illiquidity of results of Ps. 694,371,899, and (iv) Optional reserve to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of Ps. 1,244,277,741.

 

GRUPO CLARÍN S.A.CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEARS ENDED December 31, 2016 AND 2015In Argentine Pesos (Ps.)

 

December 31, 2016

December 31,

2015

CASH PROVIDED BY OPERATING ACTIVITIES

Net Income for the Year

4,179,611,186

2,915,910,481

Income Tax and Tax on Assets

264,157,883

354,574,614

Accrued Interest, net

183,031,249

138,146,998

Adjustments to reconcile net income for the year to cash provided by operating activities:

Depreciation of Property, Plant and Equipment

118,227,554

85,290,931

Amortization of Intangible Assets and Film Library

65,256,955

46,928,534

Net allowances

159,793,058

82,658,340

Financial Income, except interest

(68,031,076)

(243,855,707)

Equity in Earnings from Affiliates and Subsidiaries

(48,725,499)

(61,298,581)

Other Income and Expenses

(11,052,911)

(11,377,021)

Net Income from Discontinued Operations

(3,955,531,485)

(2,308,032,329)

Changes in Assets and Liabilities:

Trade Receivables

(983,842,991)

(640,769,704)

Other Receivables

(63,198,167)

(108,973,297)

Inventories

(414,465,667)

(202,683,352)

Other Assets

(631,805)

(3,623,522)

Trade Payables and Other

442,781,306

573,251,146

Taxes Payable

(39,095,491)

(54,440,597)

Other Liabilities

221,036,747

67,334,101

 

Provisions

(67,620,230)

(41,651,137)

 

Income Tax and Tax on Assets Payments

(446,226,374)

(218,835,839)

 

Net Cash Flows Provided by Discontinued Operating Activities

9,967,706,300

6,236,946,107

 

 

Net Cash Flows Provided by Operating Activities

9,503,180,542

6,605,500,166

 

 

CASH PROVIDED BY INVESTMENT ACTIVITIES

 

Acquisition of Property, Plant and Equipment, net

(311,359,194)

(133,952,733)

 

Acquisition of Intangible Assets

(144,909,009)

(78,124,630)

 

Payments for the Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates

(17,992,376)

(18,098,189)

 

Proceeds from Sale of Property, Plant and Equipment

36,987,689

15,193,293

 

Dividends collected

35,625,464

44,409,345

 

Transactions with Securities, Bonds and Other Financial Instruments, Net

15,722,985

110,024,900

 

Collections of Certificates of Deposit

10,199,505

39,873,227

 

Net Cash Flows used in Discontinued Investment Activities

(11,042,912,576)

(5,586,586,087)

 

 

Net Cash Flows used in Investment Activities

(11,418,637,512)

(5,607,260,874)

 

 

CASH PROVIDED BY FINANCING ACTIVITIES

 

Loans Obtained

1,232,757,451

255,509,948

 

Repayment of Loans and Issue Expenses

(755,903,702)

(315,283,610)

 

Payment of Interest

(177,912,086)

(92,296,911)

 

Collections (Settlement) on Derivatives

59,303,370

7,996,820

 

Payment of Dividends

(300,000,000)

(250,000,000)

 

Payments to Non-Controlling Interests, net

(14,501,085)

(12,060,149)

 

Net Cash Flows used in Discontinued Financing Activities

(532,001,955)

(479,333,226)

 

 

Net Cash Flows used in Financing Activities

(488,258,007)

(885,467,128)

 

 

FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR CONTINUING OPERATIONS

89,775,694

93,506,077

 

 

FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR DISCONTINUED OPERATIONS

905,840,410

754,306,411

 

 

FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS

995,616,104

847,812,488

 

 

(Decrease) / Increase in cash flow, net

(1,408,098,873)

 

960,584,652

 

Cash and Cash Equivalents at the Beginning of the Year

2,705,563,078

 

1,717,383,640

 

Effect of Consolidation of Companies

2,053,223,080

 

27,594,786

 

Cash and Cash Equivalents at the Closing of the Year

3,350,687,285

 

2,705,563,078

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR BGGDXIDBBGRX
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6th Mar 20237:00 amRNSWebcast to discuss 4Q and FY 2022 results
15th Feb 20239:19 amRNSMinority shareholder files claim
16th Jan 20236:15 pmRNSSecretary of Trade imposes Fine on Subsidiary
28th Dec 20227:00 amRNSDirectorate Change
28th Dec 20227:00 amRNSResult of Meeting
28th Dec 20227:00 amRNSResult of Meeting
7th Dec 20229:00 amRNSResult of Meeting
7th Dec 20229:00 amRNSLeave of Absence
2nd Dec 20221:42 pmRNSDirectorate Change
14th Nov 20227:25 amRNSNine months and Third Quarter 2022 Results
31st Oct 20228:07 amRNSNotice of Results
27th Oct 20227:00 amRNSNotice to Global Depository Receipt Holders
9th Sep 20226:20 pmRNSAGM Statement
6th Sep 20221:07 pmRNSAcquisition
26th Aug 20227:00 amRNSLeave of Absence
23rd Aug 20227:00 amRNSResponse to Shareholder Information Request
12th Aug 20227:00 amRNSFirst Half and Second Quarter 2022 Results
3rd Aug 20226:22 pmRNSGCLA Calls Extraordinary Shareholders’ Meeting
25th Jul 20226:18 pmRNSNotice of Results
14th Jul 20221:11 pmRNSGuarantee in favour of Tele Red Imagen S.A
6th Jul 20229:07 amRNSCourt of Appeals Nullifies Resolution
17th Jun 20227:00 amRNSResponse to Shareholder Information Request
16th Jun 20224:20 pmRNSAppellate Decision in Pol-Ka Dispute
12th May 20227:00 amRNS1st Quarter 2022 Results
3rd May 20227:00 amRNSWebcast presentation to discuss 1Q 2022 results
20th Apr 20228:46 amRNSMembership of Audit Committee
19th Apr 20227:00 amRNSDirectorate Change
19th Apr 20227:00 amRNSGrupo Clarin holds Shareholders' Meeting

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