13th May 2013 12:00
Quarterly Report
Grupo Clarín announces its
Results for the First Quarter for 2013 (1Q13)
Buenos Aires, Argentina, May 13th, 2013 - 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 2013. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of March 31th, 2013 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1Q13 vs. 1Q12):
§ Net Sales totaled Ps. 3,042.5 million, an increase of 22.4% from 1Q12, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming segment.
§ Adjusted EBITDA (1) reached Ps. 694.4 million, an increase of 11.9% from 1Q12, mainly driven by higher sales in the Cable and Internet access segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) for 1Q13 was 22.8%, compared to 25.0% in 1Q12.
§ Net Income totaled Ps. 95.9 million, a decrease of 53.2% from the Ps. 204.8 million reported in 1Q12, while Net Income attributable to Equity Shareholders decreased 70.2% to Ps 35.3 million from the Ps. 118.7 million reported in 1Q12.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 1Q13 | 1Q12 | % Ch. | 4Q12 | QoQ |
Net Sales | 3,042.5 | 2,486.5 | 22.4% | 3,176.9 | (4.2%) |
Adjusted EBITDA (1) | 694.4 | 620.7 | 11.9% | 733.3 | (5.3%) |
Adjusted EBITDA Margin (2) | 22.8% | 25.0% | (8.6%) | 23.1% | (1.1%) |
Net Income(3) | 95.9 | 204.8 | (53.2%) | 415.9 | (76.9%) |
Attributable to: | |||||
Equity Shareholders | 35.3 | 118.7 | (70.2%) | 166.9 | (78.8%) |
Non-Controlling Interests | 60.5 | 86.1 | (29.7%) | 249.0 | (75.7%) |
(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.
(3) We define Net Income as Income for the period
Net sales reached Ps.3,042.5 million, an increase of 22.4% from Ps. 2,486.5 million in 1Q12 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 1Q13 | 1Q12 | YoY | 4Q12 | QoQ |
Cable TV and Internet Access | 2,180.4 | 1,739.2 | 25.4% | 2,091.3 | 4.3% |
Printing and Publishing | 589.2 | 546.7 | 7.8% | 663.9 | (11.3%) |
Broadcasting and Programming | 291.0 | 218.9 | 32.9% | 468.0 | (37.8%) |
Digital Content and Others | 110.0 | 90.8 | 21.1% | 97.8 | 12.5% |
Subtotal | 3,170.6 | 2,595.6 | 22.2% | 3,321.0 | (4.5%) |
Eliminations | (128.1) | (109.1) | (17.4%) | (144.0) | 11.1% |
Total | 3,042.5 | 2,486.5 | 22.4% | 3,176.9 | (4.2%) |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 1,550.2 million, an increase of 21.7% from Ps. 1,273.7 million reported for 1Q12 due to higher costs in our business segments, mainly in Cable TV and Internet access and in Printing and Publishing.
Selling and Administrative Expenses(Excluding Depreciation and Amortization) reached Ps. 797.9 million, an increase of 34.8% from Ps. 592.1 million in 1Q12. This increase was mainly due to higher costs in the Cable TV and Internet access and Printing and Publishing segments.
Adjusted EBITDA reached Ps.694.4 million, an increase of 11.9% from Ps. 620.7 million reported for1Q12, driven by higher sales in the Cable TV and Internet access, though partially offset by a lower EBITDA in the Printing and Publishing segment.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 1Q13 | 1Q12 | YoY | 4Q12 | QoQ |
Cable TV and Internet access | 688.4 | 580.8 | 18.5% | 573.8 | 20.0% |
Printing and Publishing | 4.5 | 57.4 | (92.2%) | 72.4 | (93.8%) |
Broadcasting and Programming | (5.0) | (26.9) | 81.3% | 94.2 | (105.3%) |
Digital Content and Others | 6.6 | 9.5 | (30.4%) | (7.1) | 193.1% |
Subtotal | 694.4 | 620.7 | 11.9% | 733.3 | (5.3%) |
Eliminations | - | - | NA | - | NA |
Total | 694.4 | 620.7 | 11.9% | 733.3 | (5.3%) |
Financial results net totaled Ps. (269.0) million compared to Ps. (161.4)million for 1Q12. The increase was mainly due to higher interest expenses and peso depreciation during 1Q13, which went from Ps 4.92 per dollar at the end of December 2012, to Ps 5.12 per dollar as of March 31th, 2013.
Equity in earnings from unconsolidated affiliates in 1Q13 totaled Ps. 4.5 million, compared to Ps. 13.5 million for 1Q12.
Other Income (expenses), netreached Ps.2.3 million, compared to Ps. (3.5) million in 1Q12.
Income tax as of March 2013 reached Ps. (77.3) million, from Ps. (86.4) million in March 2012.
Income from Discontinued Operations, reached Ps. 21.1 million in 1Q12.
Net income totaled Ps. 95.9 million, a decrease of 53.2% from Ps. 204.8 million reported for 1Q12. This was mainly a consequence of higher EBITDA in the Cable TV and Internet access segment, and was partially offset by a lower EBITDA in the Printing and Publishing segment and higher peso depreciation. The Equity Shareholders Net Income amounted to Ps. 35.3 million, a decrease of 70.2% compared with March 2012.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 350.4 million in 1Q13, an increase of 43.1% from Ps. 244.8 million reported for 1Q12. Out of the total CAPEX in 1Q13, 96.2% was allocated to the Cable TV and Internet access segment, 1.6% to the Printing and Publishing segment and the remaining 2.2% to other activities. Capex in the Cable TV and Internet Access segment pertains to subscriber growth, network upgrades and digitalization.
Debt profile (1): Debt coverage ratio for the period ended March 31th, 2013 was 1.17x and the Net Debt at the end of this period totaled Ps. 1,940.0 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - MARCH 2013
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 11.9 | 246.2 | 203.8 | 14.4 | (25.4) | 451.1 | 14.8% |
Circulation | - | 262.2 | - | - | - | 262.2 | 8.6% |
Printing | - | 57.3 | - | - | (11.7) | 45.6 | 1.5% |
Video Subscriptions | 1,672.7 | - | - | - | - | 1,672.7 | 55.0% |
Internet Subscriptions | 434.6 | - | - | - | (1.4) | 433.2 | 14.2% |
Programming | - | - | 67.1 | - | (18.4) | 48.7 | 1.6% |
Other Sales
| 61.2 | 23.4 | 20.2 | 95.5 | (71.2) | 129.1 | 4.2% |
Total Sales | 2,180.4 | 589.2 | 291.0 | 110.0 | (128.1) | 3,042.5 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - MARCH 2012
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 9.2 | 255.4 | 153.7 | 33.5 | (23.6) | 428.1 | 17.2% |
Circulation | - | 212.9 | - | - | - | 212.9 | 8.6% |
Printing | - | 56.2 | - | - | (9.8) | 46.4 | 1.9% |
Video Subscriptions | 1,308.3 | - | - | - | - | 1,308.3 | 52.6% |
Internet Subscriptions | 373.8 | - | - | - | (0.5) | 373.2 | 15.0% |
Programming | - | - | 53.6 | - | (16.6) | 36.9 | 1.5% |
Other Sales
| 47.9 | 22.2 | 11.7 | 57.3 | (58.5) | 80.5 | 3.2% |
Total Sales | 1,739.2 | 546.7 | 218.9 | 90.8 | (109.1) | 2,486.5 | 100.0% |
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 25.4%to Ps. 2,180.4 million for 1Q13 compared to Ps. 1,739.2 million for 1Q12. The increase is mostly attributable to an increase in subscription charges registered during the last twelve months, and also reflects the growth in Cable, Broadband and Digital subscribers. Total Consolidated Cable TV basic subscribers reached 3,407,385 as of March 2013, compared to the 3,370,423(*) reported for the same date in 2012. Internet subscribers reached 1,543,176 in March 2013, compared to the 1,373,070(*) of March 2012.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 24.1% to Ps. 949.8 million for March 2013, compared to Ps. 765.6 million in March 2012. This was mainly due to higher salaries, programming costs and network expenses and fixed assets maintenance costs, though was partially offset by a lower cost of the goods sold.
(*) Total Consolidated Cable TV subscribers do not include those from discontinued operations in Paraguay (118,132 Cable TV subs and 12,581 internet subscribers, registered for the period ended in March 2012).
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 38.0% to Ps. 542.2 million for 1Q13, compared to Ps. 392.9 million reported in 1Q12. This increase was driven by higher salaries, taxes, duties and contributions, fees for services and marketing expenses
Depreciation and Amortization
Depreciation and amortization expenses increased by 35.3% to Ps. 233.4 million for 1Q13 from Ps. 172.5 million reported in 1Q12.
PRINTING AND PUBLISHING
Net Sales
The 7.8% increase of Net Sales to Ps. 589.2 million in 1Q13 was the result of higher sales in circulation, although it was partially offset by lower advertising revenues.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 16.1% to Ps. 376.6 million in 1Q13, compared to Ps. 324.3 million in 1Q12. The increase was mainly the result of higher salaries, printing costs and cost of the goods sold.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 26.1% to Ps. 208.1 million in 1Q13, compared to the Ps. 165.0 million reported for 1Q12. This was primarily the result of higher salaries, marketing expenses and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 14.6% to Ps. 13.7 million in 1Q13 compared to Ps. 16.1 million in 1Q12.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 32.9% to Ps. 291.0 million in 1Q13, compared to Ps. 218.9 million in 1Q12. The increase was primarily the result of higher sales related to Canal Trece, programming content and our racing car business.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 19.8% to Ps. 223.9 million in 1Q13, compared to Ps. 186.9 million in 1Q12. This is mainly attributable to higher production costs, salaries and fees to artists.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 22.5% to Ps. 72.2 million in 1Q13, compared to Ps. 58.9 million in 1Q12. The increase was primarily the result of higher salaries, the allowances for contingencies and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 10.6% to Ps. 9.1 million in 1Q13 compared to Ps. 8.2 million reported in 1Q12.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our subsidiary GC Gestión Compartida S.A. to third parties as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content and the organization of trade fairs and exhibitions. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers.
In this period, net sales increased 21.1% to 110.0, from Ps. 90.8 million reported in 1Q12, due to higher fees at Grupo Clarín, higher sales in digital content, Gestión Compartida and trade fairs and exhibitions business. EBITDA resulted in Ps. 6.6 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
1Q13 | 1Q12 | YoY | 4Q12 | QoQ | ||||
Homes Passed (1) | 7,457.8 | 7,593.2 | (1.8%) | 7,455.9 | 0.0% | |||
Bidirectional Homes Passed | 64.2% | 63.2% | 1.7% | 63.9% | 0.5% | |||
Cable TV | ||||||||
Total Consolidated Subscribers (1)(3) | 3,407.4 | 3,488.6 | (2.3%) | 3,404.7 | 0.1% | |||
Subscribers - Argentina | 3,289.1 | 3,259.8 | 0.9% | 3,288.8 | 0.0% | |||
Subscribers - International | 118.3 | 228.8 | (48.3%) | 115.9 | 2.1% | |||
Uruguay | 118.3 | 110.6 | 6.9% | 115.9 | 2.1% | |||
Paraguay | - | 118.1 | NA | - | NA | |||
% over Homes Passed | 45.7% | 45.9% | (0.6%) | 45.7% | 0.1% | |||
Total Equity Subscribers(5) | 3,526.8 | 3,564.0 | (1.0%) | 3,523.2 | 0.1% | |||
Churn Rate % | 16.8% | 16.1% | 4.4% | 16.0% | 5.6% | |||
Digital Video (1)(3) | ||||||||
Digital Ready Pay TV Subs | 2,689.8 | 2,763.7 | (2.7%) | 2,689.3 | 0.0% | |||
Total Digital Decoders | 1,140.1 | 1,101.6 | 3.5% | 1,107.2 | 3.0% | |||
Argentina | 1,015.7 | 882.8 | 15.0% | 990.0 | 2.6% | |||
International | 124.4 | 218.8 | (43.1%) | 117.2 | 6.1% | |||
Penetration over Digital Ready TV Subs | 42.4% | 39.9% | 6.3% | 41.2% | 2.9% | |||
Internet Subscribers(1)(3)(4) | ||||||||
Total Internet Subscribers (1)(4) | 1,543.2 | 1,385.7 | 11.4% | 1,504.4 | 2.6% | |||
Cablemodem(1) | 1,529.0 | 1,366.8 | 11.9% | 1,489.4 | 2.7% | |||
ADSL(1) | 7.81 | 11.5 | (32.1%) | 8.4 | (7.0%) | |||
Dial Up (1) | 6.4 | 7.4 | (14.0%) | 6.6 | (3.4%) | |||
% over Bidirectional Homes Passed | 32.2% | 28.9% | 11.5% | 31.6% | 2.1% | |||
Total ARPU(2) | 213.4 | 171.9 | 24.1% | 204.2 | 4.5% |
(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers (does not include subscribers from discontinued operations in Paraguay).
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total Internet Subscribers includes those from discontinued operations in Paraguay (12,581 subs for period 1Q12)
(5) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
1Q13 | 1Q12 | YoY | 4Q12 | QoQ | |
Circulation (1) | 304.4 | 316.8 | (3.9%) | 301.8 | 0.9% |
Circulation share % (2) | 38.7% | 39.2% | (1.2%) | 38.8% | (0.2%) |
Advertising share %(3) | 52.5% | 51.9% | 1.1% | 49.5% | 6.1% |
(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
1Q13 | 1Q12 | YoY | 4Q12 | QoQ | |
Advertising Share % (1) | 31.9% | 34.5% | (7.5%) | 37.3% | (14.4%) |
Audience Share % (2) | |||||
Prime Time | 36.0% | 35.7% | 0.7% | 34.1% | 5.6% |
Total Time | 27.8% | 29.6% | (6.0%) | 28.8% | (3.3%) |
(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. 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
1Q13 | 1Q12 | YoY | |
Page Views (1) | 649.2 | 598.1 | 8.5% |
Unique Visitors(1) | 35.1 | 26.9 | 30.5% |
(1)In millions. Average. Source Comscore and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | March 13 | March 12 | % Change | December 12 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 840.1 | 497.6 | 68.8% | 501.3 | 67.6% |
Financial loans | 112.6 | 153.6 | (26.7%) | 130.6 | (13.8%) |
Negotiable obligations | 552.9 | 197.2 | 180.4% | 165.2 | 234.7% |
Accrued interest | 42.1 | 41.7 | 0.9% | 95.0 | (55.7%) |
Acquisition of equipment | 74.6 | 47.1 | 58.5% | 70.1 | 6.5% |
Sellers Financing Capital | 1.4 | 5.3 | (72.7%) | 1.1 | 31.3% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 15.1 | 14.3 | 6.3% | 13.2 | 14.8% |
Related Parties accrued interest | 0.4 | 0.1 | 166.8% | 0.1 | 218.9% |
Bank overdraft | 40.9 | 38.3 | 6.7% | 25.9 | 57.5% |
Non-Current Financial Debt | 2,408.7 | 2,781.1 | (13.4%) | 2,738.3 | (12.0%) |
Financial loans | 25.5 | 108.6 | (76.5%) | 24.5 | 4.1% |
Negotiable obligations | 2,256.2 | 2,566.4 | (12.1%) | 2,576.7 | (12.4%) |
Accrued interest | - | 0.1 | (100.0%) | - | NA |
Acquisition of equipment | 120.7 | 95.1 | 26.9% | 131.0 | (7.9%) |
Sellers Financing Capital | 0.3 | 0.6 | (41.3%) | 0.3 | 5.3% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 4.2 | 4.9 | (13.3%) | 4.2 | - |
Related accrued interest | 1.7 | 1.6 | 3.4% | 1.5 | 10.1% |
Bank overdraft | - | 3.9 | (100.0%) | - | NA |
Total Financial Debt (A) | 3,248.9 | 3,278.7 | (0.9%) | 3,239.7 | 0.3% |
Measurement at fair Value | (47.3) | (55.9) | 15.3% | (50.9) | 6.9% |
Total Short Term and Long Term Debt | 3,201.5 | 3,222.8 | (0.7%) | 3,188.8 | 0.4% |
Cash and Cash Equivalents (B) | 1,308.8 | 1,036.4 | 26.3% | 1,304.7 | 0.3% |
Net Debt (A) - (B) | 1,940.0 | 2,242.3 | (13.5%) | 1,934.9 | 0.3% |
Net Debt/Adjusted Ebitda (1) | 0.7x | 0.9x | (22.7%) | 0.7x | 0.1% |
% USD Debt | 96.8% | 94.4% | 2.6% | 96.6% | 0.3% |
% Ar. Ps Debt | 3.2% | 5.6% | (43.5%) | 3.4% | (7.7%) |
Total Financial Debt(1) and Net Debt decreased from Ps. 3,278.7 million to Ps. 3,248.9 million and from Ps. 2,242.3 million to Ps. 1,940.0 million respectively. This represents a decrease of 0.9% in the Total Debt and a drop of 13.5% in the Net Debt.
Debt coverage ratio (1) as of March 31th, 2013 was 0.7x in the case of Net Debt and of 1.17x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized for period ended in March 2013 and 2012, and last twelve months for period ended in December 2012). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
STOCK AND MARKET INFORMATION
Grupo Clarín trades its stock in the Buenos Aires Stock Exchange (BCBA) and in the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.
GCLA (BCBA) Price per Share (ARS)
| 11.20 |
GCLA (LSE) Price per GDS (USD) | 2.80 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 402.4 |
Closing Price | May 10th, 2013 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its First Quarter Results for 2013, on Monday, May 13th, 2013.
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
A replay of the conference call will be available one hour after its conclusion, and will remain available for two weeks. To access the replay, please dial from the within the U.S. +1-877-919-4059, or from anywhere outside the U.S. +1-334-323-7226. The passcode is: 14308690.
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on May 13th, and archived in our Website after its conclusion.
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in the cable television and Internet access, printing and publishing, and broadcasting and programming markets. Its cable television network is one of the largest in Latin America in term of subscribers, and is a leading broadband provider in Argentina. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers in Latin America. Grupo Clarín is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age.
Disclaimer
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Grupo Clarín does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2013 AND 2012
In Argentine Pesos (Ps.)
March 31, 2013 | March 31, 2012 | |||
Continuing Operations | ||||
Revenues | 3,042,506,476 | 2,486,482,381 | ||
Cost of Sales (1) | (1,787,820,850) | (1,454,960,246) | ||
Subtotal - Gross Profit | 1,254,685,626 | 1,031,522,135 | ||
Selling Expenses (1) | (400,237,858) | (291,637,265) | ||
Administrative Expenses (1) | (418,959,038) | (318,350,523) | ||
Financial Income | 57,749,233 | 24,079,946 | ||
Financial Costs | (326,799,108) | (185,527,890) | ||
Other Income and Expense, net | 2,294,266 | (2,032,498) | ||
Equity in Earnings from Affiliates and Subsidiaries | 4,507,837 | 13,503,600 | ||
Income before Income Tax and Tax on Assets | 173,240,958 | 271,557,505 | ||
Income Tax and Tax on Assets | (77,349,447) | (86,377,164) | ||
Income for the period from continuing operations | 95,891,511 | 185,180,341 | ||
Discontinued Operations | ||||
Income/Loss from Discontinued Operations | - | 21,118,247 | ||
Income for the period | 95,891,511 | 206,298,588 | ||
Other Comprehensive Income | ||||
Items which may be reclassified to net income | ||||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 137,210,787 | 8,668,296 | ||
Variation in Translation Differences of Foreign Operations from Discontinued Operations | - | 929,562 | ||
Other Comprehensive Income for the period | 137,210,787 | 9,597,858 | ||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 233,102,298 | 215,896,446 | ||
Profit Attributable to: | ||||
Shareholders of the Parent Company | 35,342,582 | 118,683,453 | ||
Non-Controlling Interests | 60,548,929 | 87,615,135 | ||
Total Comprehensive Income Attributable to: | ||||
Shareholders of the Parent Company | 106,640,413 | 123,684,322 | ||
Non-Controlling Interests | 126,461,885 | 92,212,124 | ||
Basic and Diluted Earnings per Share from Continuing Operations | 0.12 | 0.38 | ||
Basic and Diluted Earnings per Share from Discontinued Operations | - | 0.03 | ||
Basic and Diluted Earnings per Share - Total | 0.12 | 0.41 | ||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 258,939,298 and Ps. 199,195,972 for three-month periods ended March 31, 2013 and 2012, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of March 31th, 2013, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2013 AND DECEMBER 31, 2012
In Argentine Pesos (Ps.)
March 31, 2013 | December 31, 2012 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 4,292,799,268 | 4,137,741,603 | |
Intangible Assets | 527,881,287 | 554,781,161 | |
Goodwill | 2,832,216,709 | 2,797,020,692 | |
Deferred Tax Assets | 74,311,170 | 55,403,579 | |
Investment in Affiliates and Subsidiaries | 369,487,574 | 389,212,589 | |
Other Investments | 107,201,571 | 99,597,125 | |
Inventories | 18,829,893 | 13,929,652 | |
Other Assets | 1,811,853 | 1,896,642 | |
Other Receivables | 137,410,194 | 128,770,432 | |
Trade Receivables | 141,812,164 | 125,285,473 | |
Total Non-Current Assets | 8,503,761,683 | 8,303,638,948 | |
CURRENT ASSETS | |||
Inventories | 333,481,175 | 342,773,949 | |
Other Assets | 9,927,732 | 7,362,757 | |
Other Receivables | 543,797,756 | 402,265,693 | |
Trade Receivables | 1,589,812,927 | 1,638,550,031 | |
Other Investments | 509,187,431 | 685,632,591 | |
Cash and Banks | 804,557,009 | 623,395,314 | |
Total Current Assets | 3,790,764,030 | 3,699,980,335 | |
Total Assets | 12,294,525,713 | 12,003,619,283 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | 4,196,670,525 | 4,090,030,112 | |
Attributable to Non-Controlling Interests | 1,498,661,558 | 1,374,568,933 | |
Total Shareholders' Equity | 5,695,332,083 | 5,464,599,045 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Accruals and Other | 266,808,926 | 254,838,954 | |
Long-Term Debt | 2,360,452,019 | 2,683,294,222 | |
Sellers Financing | 342,663 | 325,330 | |
Deferred Tax Liabilities | 237,393,780 | 261,847,892 | |
Taxes Payable | 76,468,151 | 74,910,041 | |
Other Liabilities | 112,697,612 | 97,588,589 | |
Trade Payables and Other | 9,613,414 | 5,888,626 | |
Total Non-Current Liabilities | 3,063,776,565 | 3,378,693,654 | |
CURRENT LIABILITIES | |||
Long-Term Debt | 839,289,117 | 504,084,669 | |
Sellers Financing | 1,449,845 | 1,103,888 | |
Taxes Payable | 389,727,865 | 411,769,236 | |
Other Liabilities | 235,777,933 | 214,245,125 | |
Trade Payables and Other | 2,069,172,305 | 2,029,123,666 | |
Total Current Liabilities | 3,535,417,065 | 3,160,326,584 | |
Total Liabilities | 6,599,193,630 | 6,539,020,238 | |
Total Equity and Liabilities | 12,294,525,713 | 12,003,619,283 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2013 AND 2012
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | Non-Controlling Interests | |||||||||||||||
Shareholders' Contributions | Other items | Retained Earnings | Total Equity of Controlling Interests | |||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves | Legal Reserve | Optional reserves (1) | Accumulated Results | Total Equity | |||||||
Balances as of January 1, 2013 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 122,978,415 | 5,207,274 | 88,652,667 | 1,381,400,655 | 481,152,598 | 4,090,030,112 | 1,374,568,932 | 5,464,599,044 | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (2,369,259) | (2,369,259) | ||||
Income for the period | - | - | - | - | - | - | - | - | 35,342,582 | 35,342,582 | 60,548,929 | 95,891,511 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 71,297,831 | - | - | - | - | 71,297,831 | 65,912,956 | 137,210,787 | ||||
Balances as of March 31, 2013 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 194,276,246 | 5,207,274 | 88,652,667 | 1,381,400,655 | 516,495,180 | 4,196,670,525 | 1,498,661,558 | 5,695,332,083 | ||||
Balances as of January 1, 2012 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 37,992,937 | (18,384,533) | 64,740,233 | - | 1,539,154,967 | 3,634,142,107 | 1,063,645,779 | 4,697,787,886 | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (1,663,910) | (1,663,910) | ||||
Income for the period | - | - | - | - | - | - | - | - | 118,683,453 | 118,683,453 | 87,615,135 | 206,298,588 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 5,000,869 | - | - | - | - | 5,000,869 | 4,596,989 | 9,597,858 | ||||
Balances as of March 31, 2012 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 42,993,806 | (118,384,533) | 64,740,233 | - | 1,657,838,420 | 3,757,826,429 | 1,154,193,993 | 4,912,020,422 | ||||
(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 300,000,000; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756 and (iii) Optional reserve for illiquidity of results of Ps. 694,371,899.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2013 AND 2012
In Argentine Pesos (Ps.)
March 31, 2013 | March 31, 2012 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Income for the period | 95,891,511 | 206,298,588 | ||
Income Tax and Tax on Assets | 77,349,447 | 86,377,164 | ||
Accrued Interest, net | 62,961,345 | 65,792,596 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 217,549,756 | 164,723,412 | ||
Amortization of Intangible Assets and Film Library | 41,389,542 | 34,472,560 | ||
Net of allowances | 40,029,925 | 39,579,578 | ||
Financial Results | 78,459,470 | 60,053,770 | ||
Equity in Earnings from Affiliates and Subsidiaries | (4,505,413) | (13,503,600) | ||
Other Income and Expense | (32,619) | (1,580,163) | ||
Loss from Discontinued Operations | - | 2,902,372 | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | 10,382,564 | 39,381,813 | ||
Other Receivables | (30,610,586) | (47,728,123) | ||
Inventories | 3,795,539 | (49,274,063) | ||
Other Assets | (2,479,824) | (4,346,713) | ||
Trade Payables and Other | 37,544,172 | (10,877,132) | ||
Taxes Payable | (56,182,324) | (5,436,624) | ||
Other Liabilities | 37,276,185 | 63,467,251 | ||
| Provisions | (5,997,697) | (11,710,499) | |
| Income Tax and Tax on Assets Payments | (85,484,766) | (111,388,021) | |
| ||||
| Net Cash Flows Provided by Operating Activities | 517,336,227 | 507,204,166 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (350,423,811) | (244,835,763) | |
| Acquisition of Intangible Assets | (13,897,853) | (9,107,035) | |
| Acquisition of Subsidiaries, Net of Cash Acquired | (2,113,981) | (1,737,342) | |
| Collection of Interest | 221,865 | - | |
| Proceeds from Sale of Property, Plant and Equipment | 35,242 | 1,343,900 | |
| Dividends collected | 15,000,000 | - | |
| Certificates of Deposit | (98,641) | (4,848,000) | |
| Collections of Certificates of Deposit | 660,729 | 10,398,767 | |
| ||||
| Net Cash Flows used in Investment Activities | (350,616,450) | (248,785,473) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans | 18,671,548 | 46,649,136 | |
| Repayment of Loans and Issue Expenses | (78,925,664) | (31,974,376) | |
| Payment of Interest | (129,650,688) | (119,358,936) | |
| Payments on Derivatives, Net | (4,680,000) | (1,412,500) | |
| Payment of Sellers Financing | - | (185,278) | |
| (Setup) Transfer of Reserve Account / Escrow Funds | (362) | (652) | |
| Payments to Non-Controlling Interests, net | (2,355,784) | (1,663,910) | |
| ||||
| Net Cash Flows used in Financing Activities | (196,940,950) | (107,946,516) | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 34,315,579 | 15,725,169 | |
| ||||
| Net Increase in Cash Flow | 4,094,406 |
| 166,197,346 |
| Cash and Cash Equivalents at the Beginning of the Year | 1,304,735,665 |
| 865,580,054 |
| Cash and Cash Equivalents at the End of the Period | 1,308,830,071 |
| 1,031,777,400 |
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Alfredo Marín Agustín Medina Manson | Alex Money Clare Gallagher | Melanie Carpenter |
Grupo Clarín S.A. | Temple Bar Advisory Ltd. | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 7002 1080 | Tel: +1 212 406 3692 |
Email: [email protected] | E-mail: [email protected] | E-mail: [email protected] |
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