12 Nov 2019 07:21
Grupo Clarín Announces Third Quarter and
Nine-Month 2019 Results
Buenos Aires, Argentina, November 11, 2019 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its third quarter and nine-month 2019 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") as of September 30, 2019, and are stated in Argentine Pesos ("Ps"), unless otherwise indicated.
(*) The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the financial statements.
Highlights (9M19 vs.9M18):
§ Total Revenues reached Ps. 17,322.2 million, a decrease of 12.8% compared to 9M18, mainly due to lower advertising revenues in all segments and lower circulation sales in the Printing and Publishing segment.
§ Adjusted EBITDA (1) reached Ps. 1,494.2 million, a decrease of 13.0% compared to 9M18, mainly driven by lower EBITDA results in the Broadcasting and Programming segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) stood flat at 8.6% in 9M19.
§ Income (Loss) for the period totaled Ps. (717.2) million, compared to Ps. (54.1) million reported in 9M18. Income (Loss) for the period attributable to Equity Shareholders amounted to Ps (633.8) million in 9M19.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 9M19 | 9M18 | % Ch. | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY |
Total Revenues | 17,322.2 | 19,861.3 | (12.8%) | 6,024.1 | 6,236.8 | 6,547.2 | (3.4%) | (8.0%) |
Adjusted EBITDA (1) | 1,494.2 | 1,717.5 | (13.0%) | 644.2 | 552.6 | 594.8 | 16.6% | 8.3% |
Adjusted EBITDA Margin (2) | 8.6% | 8.6% | (0.2%) | 10.7% | 8.9% | 9.1% | 20.7% | 17.7% |
Income for the period | (717.2) | (54.1) | NA | (457.3) | 92.3 | (700.9) | NA | 34.8% |
Attributable to: | ||||||||
Equity Shareholders | (633.8) | (21.1) | NA | (438.0) | 76.6 | (691.3) | NA | 36.6% |
Non-Controlling Interests | (83.4) | (33.0) | (152.7%) | (19.3) | 15.7 | (9.5) | NA | (103.2%) |
(1) We define Adjusted EBITDA as Total Revenues 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 based on 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 Total Revenues.
OPERATING RESULTS
Total Revenues reached Ps. 17,322.2 million, a decrease of 12.8% from Ps. 19,861.3 million in 9M18. Advertising revenues decreased 12% compared to 9M18 and represented around 45.1% of the Total Revenues of the Company. Circulation revenues decreased 14% and represented 27% of the Total.
Following is a breakdown of Total Revenues by business segment:
REVENUES
(In millions of Ps.) | 9M19 | 9M18 | YoY | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY |
Printing and Publishing | 8,602.8 | 9,748.6 | (11.8%) | 3,017.1 | 2,975.0 | 3,202.7 | 1.4% | (5.8%) |
Broadcasting and Programming | 7,754.9 | 8,549.1 | (9.3%) | 2,758.1 | 2,978.5 | 3,027.7 | (7.4%) | (8.9%) |
Digital Content and Others | 1,943.1 | 2,645.1 | (26.5%) | 584.5 | 533.2 | 668.2 | 9.6% | (12.5%) |
Subtotal | 18,300.7 | 20,942.9 | (12.6%) | 6,359.7 | 6,486.7 | 6,898.6 | (2.0%) | (7.8%) |
Eliminations | (978.6) | (1,081.6) | (9.5%) | (335.6) | (249.9) | (351.5) | 34.3% | (4.5%) |
Total | 17,322.2 | 19,861.3 | (12.8%) | 6,024.1 | 6,236.8 | 6,547.2 | (3.4%) | (8.0%) |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 10,685.9 million, an a decrease of 13.1% from Ps. 12,296.5 million reported in 9M18 due to lower costs across all business segments, mainly in Printing and Publishing segment due to lower salaries and printing costs
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 5,142.1 million, a decrease of 12.1% from Ps. 5,847.3 million in 9M18. This drop was mainly due to lower fees for services and salaries across all business segments.
Adjusted EBITDA reached Ps. 1,494.2 million, a decrease of 13.0% from Ps. 1,717.5 million reported for 9M18. This decrease was driven mainly by lower advertising revenues across all business segments.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 9M19 | 9M18 | YoY | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY |
Printing and Publishing | 30.1 | 38.1 | (21.2%) | 168.5 | 51.2 | 29.7 | 229.1% | 468.1% |
Broadcasting and Programming | 1,514.8 | 1,637.6 | (7.5%) | 521.2 | 259.7 | 561.1 | 100.7% | (7.1%) |
Digital Content and Others | (50.7) | 41.7 | (221.5%) | (45.6) | (39.3) | 4.0 | (15.9%) | NA |
Total | 1,494.2 | 1,717.5 | (13.0%) | 644.2 | 271.6 | 594.8 | 137.2% | 8.3% |
Financial results net totaled Ps. (1,114.0) million compared to Ps. (1,259.7) million in 9M18. This decrease of the negative financial results was mainly due to lower impact of the peso depreciation on dollar denominated debt.
Equity in earnings from unconsolidated affiliates in 9M19 totaled Ps. 173.0 million, compared to Ps. 288.0 million in 9M18.
Other Income (expenses), net reached Ps. (157.9) million, compared to Ps. 635.8 million in 9M18.
Income tax as of September 2019 reached Ps. (341.2) million, from Ps. (730.1) million in 9M18.
Income (Loss) for the period totaled Ps. (717.2) million in 9M19. This was mainly due to lower EBITDA across all business segments. The Equity Shareholders Income (Loss) for the period amounted Ps. (633.8) million.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 467.2 million in 9M19, a decrease of 32.1% from Ps. 688.5 million reported in 9M18. Out of the total CAPEX in 9M19, 69.0% was allocated towards the Broadcasting and Programming segment, 26.6% to the Printing and Publishing segment and the remaining 4.4% to other activities.
Debt profile (1): Debt coverage ratio for the period ended September 30, 2019 was 0.7x and the Net Cash position at the end of this period totaled Ps. 394.7 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 - SEPTEMBER 2019
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 2,643.5 | 5,216.2 | 78.7 | (120.0) | 7,818.4 | 45.1% |
Circulation | 4,674.2 | - | - -
| - | 4,674.2 | 27.0% |
Printing | 425.1 | - | - -
| (43.0) | 382.1 | 2.2% |
Programming | - | 2,284.4 | - | - | 2,284.4 | 13.2% |
Other Sales
| 859.9 | 254.2 | 1,864.4 | (815.6) | 2,163.0 | 12.5% |
Total Sales | 8,602.8 | 7,754.9 | 1,943.1 | (978.6) | 17,322.2 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2018
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 3,282.9 | 5,747.0 | 108.2 | (241.5) | 8,896.6 | 44.8% |
Circulation | 5,453.8 | - | - | - | 5,453.8 | 27.5% |
Printing | 191.0 | - | (8.3) | 182.7 | 0.9% | |
Programming | - | 2,533.1 | - | (3.3) | 2,529.8 | 12.7% |
Other Sales
| 820.9 | 269.1 | 2,536.9 | (828.4) | 2,798.5 | 14.1% |
Total Sales | 9,748.6 | 8,549.1 | 2,645.1 | (1,081.6) | 19,861.3 | 100.0% |
RESULTS BY BUSINESS SEGMENT
BROADCASTING AND PROGRAMMING
Revenues
Revenues decreased by 9.3% to Ps. 7,754.9 million in 9M19, compared to Ps. 8,549.1 million in 9M18. This was due to lower advertising revenues in constant pesos as of September 2019 in Channel 13 and Radio Mitre
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales decreased by 6.8% to Ps. 4,836.4 million in 9M19, compared to Ps. 5,186.6 million in 9M18. The decrease was mainly caused by a higher effect of restatement in salaries for 9M18 versus 9M19, which was partially offset by higher production costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses decreased by 18.6% to Ps. 1,403.6 million in 9M19, compared to Ps. 1,724.9 million in 9M18. The decline was primarily the result of the greater effect of the restatement of the salaries, contingencies and marketing expenses of 9M18 versus 9M19, in order to be expressed in homogeneous currency as of September 30, 2019.
Depreciation and Amortization
Depreciation and amortization expenses increased by 3.4% to Ps. 305.5 million in 9M19 compared to Ps. 295.5 million reported in 9M18.
PRINTING AND PUBLISHING
Revenues
Total revenues decreased by 11.8% to Ps. 8,602.8 million in 9M19, mainly as a result of lower circulation and advertising revenues in real terms (inflation was 53.5% from 9M18 to 9M19 while circulation and advertising revenues in current pesos increased by approximately 32% and 24%, respectively).
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales decreased by 14.5% to Ps. 4,925.7 million in 9M19, compared to Ps. 5,760.6 million in 9M18. The decrease was mainly the result of lower salaries, printing and distribution costs caused by the greater effect of the restatement for 9M18.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses increased by 7.7% to Ps. 3,647.0 million in 9M19, compared to the Ps. 3,949.9 million reported in 9M18. This was primarily the result of lower salaries and fees for services, due to the IAS 29 (inflation) adjustment effect in 9M18.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 10.7% to Ps. 302.5 million in 9M19 compared to Ps. 338.6 million in 9M18.
DIGITAL CONTENT AND OTHERS
Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gestión Compartida S.A. to third parties, as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content and the organization of trade fairs and exhibitions. Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.
In this period, total revenues decreased 26.5% to Ps. 1,943.1, from Ps. 2,645.1 million reported in 9M18, due to lower sales in digital content, retail and revenues from Gestión Compartida. EBITDA resulted in Ps. (50.7) million.
OPERATING STATISTICS BY BUSINESS SEGMENT
PRINTING AND PUBLISHING
9M19 | 9M18 | YoY | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY | |
Circulation (1) | 233.3 | 230.7 | 1.1% | 237.4 | 234.1 | 232.7 | 1.4% | 2.0% |
Circulation share % (2) | 40.4% | 38.9% | 4.0% | 40.9% | 40.6% | 39.1% | 0.9% | 4.5% |
Advertising share %(3) | 54.1% | 56.2% | (3.6%) | 53.2% | 53.3% | 55.5% | (0.1%) | (4.0%) |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: AGEA and IVC.
(3) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: Monitor de Medios Publicitarios S.A.
BROADCASTING AND PROGRAMMING
9M19 | 9M18 | YoY | 3Q19 | 2Q19 | 3Q18 | QoQ | YoY | |
Advertising Share % (1) | 38.4% | 37.6% | 2.1% | 38.8% | 39.5% | 37.0% | (1.8%) | 4.9% |
Audience Share % (2) | ||||||||
Prime Time | 37.4% | 35.0% | 6.8% | 39.4% | 38.2% | 33.4% | 3.1% | 17.9% |
Total Time | 32.6% | 31.7% | 2.8% | 32.7% | 33.0% | 31.9% | (0.9%) | 2.6% |
(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
9M19 | 9M18
| YoY | |
Page Views (1) | 1,069.6 | 1,113.5 | (3.9%) |
Mobile page Views | 732.5 | 687.0 | 6.6% |
(1)In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | September 2019 | September 2018 | % Change |
Short Term and Long Term Debt | |||
Current Financial Debt | 1,504.5 | 1,193.7 | 26.0% |
Financial loans | 1,037.0 | 834.8 | 24.2% |
Accrued interest | 23.0 | 26.6 | (13.5%) |
Acquisition of equipment | 7.2 | 6.5 | 11.5% |
Sellers Financing Capital | - | - | NA |
Related Parties Capital | 6.8 | - | NA |
Bank overdraft | 423.3 | 325.8 | 29.9% |
Non-Current Financial Debt | 411.5 | 323.6 | 27.2% |
Financial loans | 409.4 | 305.9 | 33.9% |
Acquisition of equipment | 2.1 | 6.1 | (66.2%) |
Related Parties Capital | - | 6.8 | (100.0%) |
Total Financial Debt (A) | 1,916.0 | 1,517.3 | 26.3% |
Cash and Cash Equivalents (B) | 2,310.7 | 1,311.6 | 76.2% |
Net Debt (A) - (B) | (394.7) | 205.7 | (291.9%) |
Net Debt/Adjusted Ebitda (1) | (0.15x) | 0.09x | (277.2%) |
Total Financial Debt(1) increased from Ps. 1,517.3 million to Ps. 1,916.0 million. This represents an increase of 26.3% in the Total Debt.
Debt coverage ratio (1) as of September 30, 2019 was (0.15x) in the case of Net Debt and of 0.7x 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.
REVENUES AND EBITDA - IAS 29 Adjustment
REVENUES
(In millions of Ps.) | 9M19 | 9M18 | YoY | 9M19 ex IAS 29 | IAS 29 Adjustment | 9M19as reported | 9M18 ex IAS 29 | IAS 29 Adjustment | 9M18as reported |
Printing and Publishing | 8,602.8 | 9,748.6 | (11.8%) | 7,438.2 | 1,164.6 | 8,602.8 | 5,484.9 | 4,263.7 | 9,748.6 |
Broadcasting and Programming | 7,754.9 | 8,549.1 | (9.3%) | 6,705.1 | 1,049.8 | 7,754.9 | 4,820.7 | 3,728.5 | 8,549.1 |
Digital Content and Others | 1,943.1 | 2,645.1 | (26.5%) | 1,680.1 | 263.0 | 1,943.1 | 1,479.7 | 1,165.4 | 2,645.1 |
Subtotal | 18,300.7 | 20,942.9 | (12.6%) | 15,823.4 | 2,477.4 | 18,300.7 | 11,785.3 | 9,157.6 | 20,942.9 |
Eliminations | (978.6) | (1,081.6) | (9.5%) | 1,053.1 | (132.5) | 920.7 | (613.8) | (467.8) | (1,081.6) |
Total | 17,322.2 | 19,861.3 | (12.8%) | 16,876.5 | 2,344.9 | 19,221.4 | 11,171.5 | 8,689.8 | 19,861.3 |
(In millions of Ps.) | 3Q19 | 3Q18 | YoY | 3Q19 ex IAS 29 | IAS 29 Adjustment | 3Q19as reported | 3Q18 ex IAS 29 | IAS 29 Adjustment | 3Q18as reported |
Printing and Publishing | 3,017.1 | 3,202.7 | (5.8%) | 2,849.8 | 167.3 | 3,017.1 | 1,991.7 | 1,211.1 | 3,202.7 |
Broadcasting and Programming | 2,758.1 | 3,027.7 | (8.9%) | 2,600.5 | 157.7 | 2,758.1 | 1,897.3 | 1,130.5 | 3,027.7 |
Digital Content and Others | 584.5 | 668.2 | (12.5%) | 564.0 | 20.5 | 584.5 | 426.6 | 241.6 | 668.2 |
Subtotal | 6,359.7 | 6,898.6 | (7.8%) | 6,014.3 | 345.4 | 6,359.7 | 4,315.5 | 2,583.1 | 6,898.6 |
Eliminations | (335.6) | (351.5) | (4.5%) | (317.9) | (17.7) | (335.6) | (224.4) | (127.1) | (351.5) |
Total | 6,024.1 | 6,547.2 | (8.0%) | 5,696.3 | 327.7 | 6,024.1 | 4,091.1 | 2,456.0 | 6,547.2 |
EBITDA
(In millions of Ps.) | 9M19 | 9M18 | YoY | 9M19 ex IAS 29 | IAS 29 Adjustment | 9M19as reported | 9M18 ex IAS 29 | IAS 29 Adjustment | 9M18as reported |
Printing and Publishing | 30.1 | 38.1 | (21.2%) | 26.0 | 4.1 | 30.1 | 74.8 | (36.7) | 38.1 |
Broadcasting and Programming | 1,514.8 | 1,637.6 | (7.5%) | 1,309.8 | 205.1 | 1,514.8 | 966.1 | 671.5 | 1,637.6 |
Digital Content and Others | (50.7) | 41.7 | 221.0% | (43.8) | (6.9) | (50.7) | 23.6 | 18.2 | 41.7 |
Total | 1,494.2 | 1,717.5 | (13.0%) | 1,291.9 | 202.3 | 1,494.2 | 1,064.5 | 653.0 | 1,717.5 |
(In millions of Ps.) | 3Q19 | 3Q18 | YoY | 3Q19 ex IAS 29 | IAS 29 Adjustment | 3Q19as reported | 3Q18 ex IAS 29 | IAS 29 Adjustment | 3Q18as reported |
Printing and Publishing | 168.5 | 29.7 | 468.1% | 139.7 | 28.8 | 168.5 | 39.9 | (10.3) | 29.7 |
Broadcasting and Programming | 521.2 | 561.1 | (7.1%) | 493.5 | 27.7 | 521.2 | 376.8 | 184.3 | 561.1 |
Digital Content and Others | (45.6) | 4.0 | 1232.0% | (39.6) | (5.9) | (45.6) | 4.5 | (0.5) | 4.0 |
Subtotal | 644.2 | 594.8 | 8.3% | 593.7 | 50.5 | 644.2 | 421.3 | 173.5 | 594.8 |
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)
| 30.55 |
GCLA (LSE) Price per GDS (USD) | 1.89 |
Total Shares | 106,776,004 |
Total GDSs | 53,388,002 |
Market Value (USD MM) | 100.9 |
Closing Price | November 11, 2019 |
CONFERENCE CALL AND WEBCAST INFORMATION
GRUPO CLARIN S.A.
(BCBA: GCLA; LSE: GCLA)
cordially invites you to participate in its conference call and webcast presentation
to discuss Third Quarter 2019 Results
Date: Friday, November 15, 2019
Time: 12:00pm Buenos Aires Time/3:00pm London Time/10:00am New York Time
To access the conference call, please dial:Argentina Participants: 0-800-666-0250
U.S. Participants: 1-877-830-2576
All other countries: +1-785-424-1726Passcode: CLARIN
The 3Q19 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/gcla191112Nn7gVaD5.html
There will be a replay available, for 7 days, starting four hours after the conclusion of the conference call. To access the replay, please dial 1-844-488-7474 toll free from the U.S., or +1-862-902-0129 from anywhere outside the U.S. The replay passcode is: 74155755
The webcast presentation will be archived at http://www.grupoclarin.com.ar/ir
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in printing and publishing and broadcasting and programming markets. 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.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Agustín Medina Manson
| Alex Money
| Melanie Carpenter
|
Grupo Clarín S.A. | Jasford IR | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 3289 5300 | Tel: +1 212 406 3692 |
Email: investors@grupoclarin.com | E-mail: alex@jasford.com | E-mail: clarin@i-advize.com
|
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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018,
AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1
AND ENDING ON SEPTEMBER 30, 2019 AND 2018
(Amounts stated in Argentine Pesos)
September 30, 2019 | September 30, 2018 |
July 1, 2019 through September 30, 2019 |
July 1, 2018 through September 30, 2018 | ||||
Revenues | 17,322,161,260 | 19,861,300,313 | 6,024,061,851 | 6,547,169,803 | |||
Cost of Sales (1) | (11,317,452,583) | (12,866,032,599) | (3,836,119,945) | (4,427,494,916) | |||
Subtotal - Gross Profit | 6,004,708,677 | 6,995,267,714 | 2,187,941,906 | 2,119,674,887 | |||
Selling Expenses (1) | (2,828,785,364) | (3,080,328,021) | (958,707,134) | (978,495,268) | |||
Administrative Expenses (1) | (2,452,971,245) | (2,903,160,758) | (825,654,968) | (891,014,693) | |||
Other Income and Expenses, net | (157,856,306) | 635,813,163 | (134,417,542) | (91,736,100) | |||
Financial Costs | (841,379,403) | (1,114,901,300) | (443,241,832) | (550,192,904) | |||
Gain (Loss) on Net Monetary Position | (216,510,327) | (159,555,396) | (82,134,748) | 8,563,365 | |||
Other Financial Results, net | (56,143,454) | 14,794,927 | (60,895,886) | 48,208,607 | |||
Financial Results | (1,114,033,184) | (1,259,661,769) | (586,272,466) | (493,420,932) | |||
Equity in Earnings from Associates | 172,968,583 | 288,015,743 | 60,307,935 | (2,507,308) | |||
Income (Loss) before Income Tax and Tax on Assets | (375,968,839) | 675,946,072 | (256,802,269) | (337,499,414) | |||
Income Tax and Tax on Assets | (341,189,309) | (730,094,672) | (200,508,182) | (363,375,740) | |||
Net Income (Loss) for the Period | (717,158,148) | (54,148,600) | (457,310,451) | (700,875,154) | |||
Other Comprehensive Income | |||||||
Items which can be reclassified to Net Income (Loss) | |||||||
Variation in Translation Differences of Foreign Operations | (13,723,135) | (68,903,385) | (23,714,866) | (44,864,835) | |||
Other Comprehensive Income (Loss) for the Period | (13,723,135) | (68,903,385) | (23,714,866) | (44,864,835) | |||
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | (730,881,283) | (123,051,985) | (481,025,317) | (745,739,989) | |||
(Loss) Income Attributable to: | |||||||
Shareholders of the Parent Company | (633,774,563) | (21,149,507) | (438,001,047) | (691,340,062) | |||
Non-Controlling Interests | (83,383,585) | (32,999,093) | (19,309,404) | (9,535,092) | |||
Total Comprehensive Income (Loss) Attributable to: | |||||||
Shareholders of the Parent Company | (632,946,956) | (3,874,018) | (436,675,068) | (690,397,905) | |||
Non-Controlling Interests | (97,934,327) | (119,177,967) | (44,350,249) | (55,342,084) | |||
Basic and Diluted Net Income (Loss) per Share | (5.94) | (0.20) | (4.11) | (6.48) | |||
(1) Includes amortization of intangible assets and film library, right-of-use assets and depreciation of property, plant and equipment in the amount of $ 771,231,775 and $ 705,710,377 for the nine-month periods ended September 30, 2019 and 2018, respectively.
The notes are an integral part of these interim condensed consolidated financial statements.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30th, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018
(Amounts stated in Argentine Pesos)
September 30, 2019 | December 31, 2018 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 4,944,562,443 | 4,974,656,922 | |
Intangible Assets | 383,510,700 | 658,172,310 | |
Goodwill | 833,538,122 | 892,798,177 | |
Deferred Tax Assets | 336,717,001 | 396,524,063 | |
Investments in Unconsolidated Affiliates | 1,481,278,871 | 1,424,872,000 | |
Right-of-Use Assets | 108,242,199 | - | |
Inventories | 31,712,352 | 31,566,381 | |
Other Assets | 26,326,970 | 21,297,611 | |
Other Receivables | 269,911,187 | 340,455,899 | |
Trade Receivables | 42,363,418 | 103,557,986 | |
Total Non-Current Assets | 8,458,163,263 | 8,843,901,349 | |
CURRENT ASSETS | |||
Inventories | 1,516,338,774 | 1,621,111,030 | |
Other Assets | 160,697,954 | 109,017,950 | |
Other Receivables | 1,469,713,923 | 1,301,459,955 | |
Trade Receivables | 5,716,527,042 | 7,344,458,137 | |
Other Investments | 851,151,495 | 1,006,626,325 | |
Cash and Banks | 1,459,651,593 | 749,915,609 | |
Total Current Assets | 11,174,080,781 | 12,132,589,006 | |
Total Assets | 19,632,244,044 | 20,976,490,355 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | |||
Shareholders' Contribution | 9,536,617,011 | 11,271,656,902 | |
Other Items | 20,965,901 | 20,138,294 | |
Retained Earnings | 348,156,867 | (753,108,461) | |
Total Attributable to Shareholders of the Parent Company | 9,905,739,779 | 10,538,686,735 | |
Attributable to Non-Controlling Interests | 54,550,261 | 167,885,384 | |
Total Equity | 9,960,290,040 | 10,706,572,119 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other Charges | 566,211,415 | 635,090,961 | |
Financial Debt | 411,502,963 | 219,166,698 | |
Deferred Tax Liabilities | 170,159,841 | 268,306,381 | |
Taxes Payable | 32,282,533 | 58,855,693 | |
Lease Liabilities | 36,193,314 | - | |
Other Liabilities | 176,028,446 | 166,801,854 | |
Trade and Other Payables | 64,654,391 | 101,180,882 | |
Total Non-Current Liabilities | 1,457,032,903 | 1,449,402,469 | |
CURRENT LIABILITIES | |||
Financial Debt | 1,504,528,397 | 1,395,616,521 | |
Taxes Payable | 400,391,745 | 385,340,941 | |
Lease Liabilities | 72,690,366 | - | |
Other Liabilities | 979,334,006 | 734,419,566 | |
Trade and Other Payables | 5,257,976,587 | 6,305,138,739 | |
Total Current Liabilities | 8,214,921,101 | 8,820,515,767 | |
Total Liabilities | 9,671,954,004 | 10,269,918,236 | |
Total Equity and Liabilities | 19,632,244,044 | 20,976,490,355 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018
(Amounts stated in Argentine Pesos)
Equity attributable to Shareholders of the Parent Company | Equity Attributable to Non-Controlling Interests | Total Equity | |||||||||||||||
Shareholders' Contribution | Other Items | Retained Earnings | |||||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves | Legal Reserve | Voluntary Reserves | Retained Earnings | Total Equity of Controlling Interests | ||||||||
Balances as of January 1, 2019 | 106,776,004 | 3,256,298,261 | 7,908,582,637 | 11,271,656,902 | 126,301,980 | (106,163,686) | 112,595,763 | 8,249,594,990 | (9,115,299,214) | 10,538,686,735 | 167,885,384 | 10,706,572,119 | |||||
Reversal of Reserves and Additional Paid-in capital (Note 10.a) | - | - | (1,735,039,891) | (1,735,039,891) | - | - | (112,595,763) | (7,267,663,560) | 9,115,299,214 | - | - | - | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (15,400,796) | (15,400,796) | |||||
Net Income (Loss) for the Period | - | - | - | - | - | - | - | - | (633,774,563) | (633,774,563) | (83,383,585) | (717,158,148) | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 827,607 | - | - | - | - | 827,607 | (14,550,742) | (13,723,135) | |||||
Balances as of September 30, 2019 | (1) 106,776,004 | 3,256,298,261 | 6,173,542,746 | 9,536,617,011 | 127,129,587 | (106,163,686) | - | (2) 981,931,430 | (633,774,563) | 9,905,739,779 | 54,550,261 | 9,960,290,040 | |||||
Balances as of January 1, 2018 | 106,776,004 | 3,256,298,261 | 7,908,582,637 | 11,271,656,902 | 114,917,659 | (150,834,425) | 112,595,763 | 6,518,015,211 | (6,176,494,638) | 11,689,856,472 | 288,743,040 | 11,978,599,512 | |||||
Change of Accounting Policy (3) | - | - | - | - | - | - | - | - | (28,575,280) | (28,575,280) | - | (28,575,280) | |||||
Balances as of January 1, 2018, restated | 106,776,004 | 3,256,298,261 | 7,908,582,637 | 11,271,656,902 | 114,917,659 | (150,834,425) | 112,595,763 | 6,518,015,211 | (6,205,069,918) | 11,661,281,192 | 288,743,040 | 11,950,024,232 | |||||
Set-up of Reserves | - | - | - | - | - | - | - | 1,731,579,779 | (1,731,579,779) | - | - | - | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (12,974,045) | (12,974,045) | |||||
Changes in Reserves for Acquisition of Investments | - | - | - | - | - | (2,382,950) | - | - | - | (2,382,950) | 2,381,415 | (1,535) | |||||
Net Income (Loss) for the Period | - | - | - | - | - | - | - | - | (21,149,507) | (21,149,507) | (32,999,093) | (54,148,600) | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 17,275,489 | - | - | - | - | 17,275,489 | (86,178,874) | (68,903,385) | |||||
Balances as of September 30, 2018 | 106,776,004 | 3,256,298,261 | 7,908,582,637 | 11,271,656,902 | 132,193,148 | (153,217,375) | 112,595,763 | 8,249,594,990 | (7,957,799,204) | 11,655,024,224 | 158,972,443 | 11,813,996,667 | |||||
(1) Includes 1,485 treasury shares. See Note 15 to the separate financial statements.
(2) Corresponds to Judicial Reserve for Future Dividends Distribution
(3) Corresponds to the effect of the initial application of IFRS 9, mentioned in Note 2.3 to the Company's annual consolidated financial statements as of December 31, 2018.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018
(Amounts stated in Argentine Pesos)
September 30, 2019 | September 30, 2018 | |||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
Net Income (Loss) for the Period | (717,158,148) | (54,148,600) | ||
Income Tax and Tax on Assets | 341,189,309 | 730,094,672 | ||
Accrued Interest, net | 331,381,823 | 291,115,875 | ||
Adjustments to reconcile Net Income (Loss) for the Period to Cash provided by Operating Activities: | ||||
Depreciation of Property, Plant and Equipment | 474,785,634 | 522,632,276 | ||
Amortization of Intangible Assets and Film Library | 213,679,543 | 183,078,101 | ||
Amortization of Right-of-Use Assets | 82,766,598 | - | ||
Net Allowances | 237,410,553 | 243,458,630 | ||
Financial Income, except Interest | 144,188,824 | 147,710,227 | ||
Gain (Loss) on Net Monetary Position | 216,510,327 | 159,555,396 | ||
Equity in Earnings from Associates | (172,968,583) | (288,015,743) | ||
Other Income and Expenses | 197,745,934 | (635,813,163) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (838,389,106) | 159,623,426 | ||
Other Receivables | (844,393,444) | (581,793,164) | ||
Inventories | (52,853,014) | (286,821,082) | ||
Other Assets | (53,659,201) | (4,187,180) | ||
Trade and Other Payables | 1,360,658,308 | 819,550,901 | ||
Taxes Payable | (114,967,265) | 64,609,904 | ||
Other Liabilities | 574,103,076 | 438,077,284 | ||
| Provisions | (68,920,774) | (73,166,414) | |
| Income Tax and Tax on Assets Payments | (177,184,533) | (815,806,232) | |
| ||||
| Net Cash Flows provided by Operating Activities | 1,133,925,861 | 1,019,755,114 | |
| ||||
| CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES | |||
| Payments for Acquisition of Property, Plant and Equipment | (467,198,723) | (688,470,639) | |
| Payments for Acquisition of Intangible Assets | (76,772,640) | (175,912,652) | |
| Payments for Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates | (144,437) | (27,508,966) | |
| Proceeds from Sale of Intangible Assets | 19,201,518 | - | |
| Proceeds from Sale of Other Assets | 2,007,094 | - | |
| Proceeds from Sale of Property, Plant and Equipment | - | 90,929,792 | |
| Dividends Collected | 12,515,536 | 31,078,671 | |
| Transactions with Securities, Bonds and Other Placements, Net | 53,401,107 | (53,692,901) | |
| ||||
| Net Cash Flows used in Investment Activities | (456,990,545) | (823,576,695) | |
| ||||
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | |||
| Loans Obtained | 1,555,005,452 | 820,898,109 | |
| Payment of Financial Debt | (1,127,267,390) | (813,523,387) | |
| Payment of Interest | (399,924,127) | (260,585,318) | |
| Payment of Financial Leases | (94,886,716) | - | |
| Payments to Non-Controlling Interests, net | (6,407,405) | (7,050,775) | |
| ||||
| Net Cash Flows used in Financing Activities | (73,480,186) | (260,261,371) | |
| ||||
| ||||
| FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS | 1,623,764 | (24,077,596) | |
| ||||
| Net Decrease in Cash Flow | 605,078,894 |
| (88,160,548) |
| Cash and Cash Equivalents at the Beginning of the Year | 1,705,655,894 |
| 2,102,032,582 |
| Cash and Cash Equivalents at the End of the Period (Note 2.5) | 2,310,734,788 |
| 2,013,872,034 |