12th May 2008 12:00
GRUPO CLARÍN ANNOUNCES
RESULTS FOR THE FIRST QUARTER OF 2008
Buenos Aires, Argentina, May 12, 2008 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its First Quarter 2008 results. Figures in this report have been derived from the Company's consolidated unaudited financial statements as of and for the three months ended March 31, 2008, which have been prepared in accordance with Argentine GAAP and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1Q07 vs. 1Q08):
Net Sales totaled Ps. 1,195.7 million, an increase of 31.8% from 1Q07 reflecting subscriber and ARPU growth in the Cable TV & Internet segment, and higher advertising sales and, to a lesser extent, higher advertising and programming sales in the Broadcasting and Programming segment.
Adjusted EBITDA(1) totaled Ps. 352.5 million, an increase of 25.8%, driven by higher sales in the Cable and Internet access, Printing and Publishing and Broadcasting and Programming segments.
As a result, Grupo Clarín´s Adjusted EBITDA Margin (2) was 29.5% for 1Q08, compared to 30.9% in 1Q07, mainly due to a decrease in the margin of the Printing and Publishing segment.
Net Income totaled Ps. 79.9 million, compared to Ps. 26.0 million in 1Q07.
Comments from the Vice Chairman of Grupo Clarín:
Mr. José A. Aranda, Vice Chairman of Grupo Clarín, stated, "We are pleased to report Grupo Clarín's earnings results for the First Quarter of 2008. We continue to consolidate our position within our business segments, extending our footprint in the interior of the country and following our growth strategy in broadband, digital cable TV and communications, as we improve the results of our businesses, thus generating value for our shareholders".
Investor Relations Contacts
In Buenos Aires:
Alfredo Marín, M. Julia Díaz Ardaya, Alejandro Yu
Grupo Clarín
Email: [email protected]
In London:
Alex Money, Lorna Ellen
Temple Bar Advisory
Tel: + 44 20 7002 1080
Email: clarin@templebaradvisory.com
In New York:
Melanie Carpenter, Peter Majeski
I-advize Corporate Communications
Tel: + 1 212 406 3692
Email: [email protected]
FINANCIAL HIGHLIGHTS
|
(In millions of Ps.) |
1Q08 |
1Q07 |
% Var. |
1Q08 |
4Q07 |
% Var. |
|
Net Sales |
1,195.7 |
907.3 |
31.8% |
1,195.7 |
1,266.2 |
-5.6% |
|
Adjusted EBITDA (1) (3) |
352.5 |
280.3 |
25.8% |
352.5 |
398.7 |
-11.6% |
|
Adjusted EBITDA Margin (2) |
29.5% |
30.9% |
-4.5% |
29.5% |
31.5% |
-6.4% |
|
Net Income |
79.9 |
26.0 |
207.5% |
79.9 |
86.7 |
-7.8% |
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies on the basis of operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Because Adjusted EBITDA is not an Argentine GAAP measure, other companies may compute Adjusted EBITDA in a different manner. Therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
(3) Adjusted EBITDA includes a onetime event charge of Ps.6.6 million related to the implementation costs of the Long Term Savings Plan (PALP)
OPERATING RESULTS
Net Sales totaled Ps. 1,195.7 million, an increase of 31.8% from 1Q07 reflecting subscriber and ARPU growth in the Cable TV & Internet segment, and higher advertising sales and, to a lesser extent, higher advertising and programming sales in the Broadcasting and Programming segment.
Following is a breakdown of net sales by business segment:
NET SALES
|
(In millions of Ps.) |
1Q08 |
1Q07 |
% Var. |
1Q08 |
4Q07 |
% Var. |
|
Cable TV & Internet access |
748.7 |
587.8 |
27.4% |
748.7 |
722.1 |
3.7% |
|
Printing & Publishing |
331.8 |
243.9 |
36.1% |
331.8 |
354.4 |
-6.4% |
|
Broadcasting & Programming |
167.8 |
116.5 |
44.0% |
167.8 |
234.4 |
-28.4% |
|
Digital Content & Others |
40.4 |
32.1 |
25.6% |
40.4 |
37.9 |
6.5% |
|
Subtotal |
1,288.7 |
980.3 |
31.5% |
1,288.7 |
1,348.9 |
-4.5% |
|
Eliminations |
-93.0 |
-73.0 |
27.5% |
-93.0 |
-82.7 |
12.5% |
|
Total |
1,195.7 |
907.3 |
31.8% |
1,195.7 |
1,266.2 |
-5.6% |
Cost of sales reached Ps. 578.2 million, an increase of 35.5% from Ps. 426.7 million reported for 1Q07, due to higher costs in our business segments, mainly in Cable TV & Internet access due to subscriber growth, higher programming costs and salaries.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 264.9 million, an increase of 32.2% from Ps. 200.4 million in 1Q07. This increase was mainly due to the higher costs in Cable TV & Internet access and Printing & Publishing segments.
Financial and holding results decreased to Ps. -78.4 million from Ps. -112.0 million for 1Q07, due to a decrease in interests generated by liabilities reflecting a lower level of debt outstanding.
Equity in earnings from unconsolidated affiliates in 1Q08 totaled Ps. 2.7 million, compared to Ps. 2.7 million for 1Q07.
Other expenses, net reached Ps. -2.2 million, compared to Ps. -1.7 million in 1Q07.
Adjusted EBITDA reached Ps. 352.5 million, an increase of 25.8% from Ps. 280.3 million reported for 1Q07, driven by higher sales in the Cable and Internet access, Printing and Publishing and Broadcasting and Programming segments.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
|
(In millions of Ps.) |
1Q08 |
1Q07 |
% Var. |
1Q08 |
4Q07 |
% Var. |
|
Cable TV & Internet access |
273.1 |
207.6 |
31.6% |
273.1 |
244.3 |
11.8% |
|
Printing & Publishing |
63.3 |
55.0 |
15.1% |
63.3 |
100.0 |
-36.7% |
|
Broadcasting & Programming |
11.6 |
7.8 |
48.0% |
11.6 |
46.8 |
-75.2% |
|
Digital Content & Others |
4.6 |
9.3 |
-51.1% |
4.6 |
7.6 |
-40.0% |
|
Subtotal |
352.5 |
279.7 |
26.0% |
352.5 |
398.7 |
-11.6% |
|
Eliminations |
0.6 |
-100% |
||||
|
Total |
352.5 |
280.3 |
25.8% |
352.5 |
398.7 |
-11.6% |
Net income totaled Ps. 79.9 million, an increase of 207.5% from Ps. 26.0 million reported for 1Q07, mainly due to higher net income in the Cable TV & Internet access and, to a lesser extent, in the Digital Content & Others segment.
Income tax and tax on assets as of March 2008, reached Ps. 58.5 million, compared to Ps. 30.4 million in 1Q07.
Cash used in acquisition of property, plant and equipment (CAPEX) totaled Ps. 205.5 million in 1Q08, an increase of 125.9% from Ps. 91.0 million reported for 1Q07. Of the total CAPEX in 1Q08, 89.9% was allocated to the Cable TV and Internet access segment, 7.1% to the Printing and Publishing segment and the remaining 3.0% to other activities. Our CAPEX in the Cable TV and Internet access segment includes network upgrades, digitalization and the further development of the triple play strategy.
Debt profile (1): Debt coverage ratio for the period ended March 31, 2008, was 1.9x, while Net Debt at the end of this period stood at Ps. 2,613.2 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt minus Cash and Equivalents divided by Adjusted EBITDA (last 12 months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 27.4% to Ps. 748.7 million for 1Q08 compared to Ps. 587.8 million for the same period of 2007. The increase was principally attributable to an increase in Cable, Broadband and Digital subscribers. It also reflects an increase in average subscription charges for cable television, registered during the last twelve months. Total Cable TV basic subscribers reached 3,043,081 as of March 31, 2008, compared to the 2,866,940 reported as of March 31, 2007. In the same periods, Internet subscribers reached 770,602 compared to 622,057.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 30.1% to Ps. 319.9 million for 1Q08, compared to Ps. 245.9 million for the same period in 2007. This increase was mainly due to higher programming costs attributable to the growth in our subscriber base and price adjustments linked to basic monthly fee increases -contemplated in certain programming contracts-, the effect of salary increases and higher expenses for maintenance of property, plant and equipment and network expenses.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 15.9% to Ps. 155.6 million for 1Q08, compared to Ps. 134.3 million reported for the same period in 2007. This increase was mainly due to higher expenses for salaries, wages, social security charges and fees for services.
Depreciation and Amortization
Depreciation expenses of property, plant and equipment slightly decreased by 4.7% to Ps. 79.9 million for 1Q08 from Ps. 83.8 million reported for the same period in 2007.
PRINTING AND PUBLISHING
Net Sales
Net sales increased by 36.1% to Ps. 331.8 million in 1Q08, compared to Ps. 243.9 million in 1Q07. The increase was the result of growth in advertising yield, the increase in sales of optional products and books, the increase in cover price of newspapers, and the full consolidation of CIMECO starting in 1Q08.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 44.4% to Ps. 175.7 million in 1Q08, compared to Ps. 121.7 million in 1Q07. The increase was primarily the result of higher wages and salaries, the full consolidation of CIMECO and an increase in the costs of raw materials.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 38.2% to Ps. 92.9 million in 1Q08, compared to the Ps. 67.2 million reported for 1Q07. The increase was primarily the result of an increase in wages and salaries, advertising expenses and the full consolidation of CIMECO.
Depreciation and Amortization
Depreciation and amortization expenses increased by 24.4% to Ps. 12.9 million in 1Q08 compared to Ps. 10.4 million in 1Q07. The increase reflects capital expenditures made during 2007 and the 1Q08, and to the amortization of certain intangible assets beginning in 4Q07.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 44.0% to Ps. 167.8 million (including Ps. 44.1 million of intersegment sales) in 1Q08, compared to Ps. 116.5 million (including Ps.29.2 million of intersegment sales) in 1Q07. The increase was primarily the result of higher advertising sales, higher number of soccer matches, a larger subscriber base and the increases in the pricing of cable signal and sports programming, attributable to contract formulas that link pricing to increases in the monthly fees.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 42.2% to Ps. 112.1 million in 1Q08, compared to Ps. 78.8 million for the same period in 1Q07. The increase was primarily the result of higher programming costs, higher number of soccer matches and increases in salaries and wages.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 47.8% to Ps. 44.2 million in 1Q08, compared to Ps. 29.9 million in 1Q07. The increase was primarily the result of higher salaries and wages.
Depreciation and Amortization
Depreciation and amortization expenses increased by 9.4% to Ps. 4.7 million in 1Q08 compared to Ps. 4.3 million reported for the same period in 2007.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our subsidiary GC Gestión Compartida S.A. to third parties as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content. Net sales to third parties are largely derived from advertising in our web pages and portals. Cost of sales (excluding depreciation and amortization) is driven by salaries and professional fees paid to advisers.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
|
1Q08 |
1Q07 |
% Var. |
1Q08 |
4Q07 |
% Var. |
|
|
Homes Passed (1) |
6,753.6 |
6,753.6 |
0.0 |
6,753.6 |
6,753.6 |
0.0 |
|
Bidirectional Homes Passed |
47% |
42% |
11.9 |
47% |
47% |
0.0 |
|
Cable TV |
||||||
|
Total Subscribers (1) |
3,043.1 |
2,866.9 |
6.1 |
3,043.1 |
3,022.3 |
0.7 |
|
Subscribers - Argentina |
2,878.6 |
2,713.2 |
6.1 |
2,878.6 |
2,859.9 |
0.7 |
|
Subscribers - International |
164.5 |
153.7 |
7.0 |
164.5 |
162.4 |
1.3 |
|
Uruguay |
80.5 |
79.3 |
1.5 |
80.5 |
80.5 |
0.0 |
|
Paraguay |
84.0 |
74.4 |
12.8 |
84.0 |
81.9 |
2.5 |
|
% over Homes Passed |
45.1% |
42.5% |
6.1 |
45.1 |
44.8 |
0.7 |
|
Churn Rate % |
16.5 |
14.7 |
12.3 |
16.5 |
14.2 |
16.6 |
|
Digital Video |
||||||
|
Digital ready Pay TV Subs (1) |
1,496.4 |
1,304.1 |
14.7 |
1,496.4 |
1,381.9 |
8.3 |
|
Subscribers (1) |
251.5 |
0.0 |
NA |
251.5 |
221.4 |
13.6 |
|
Penetration over Digital Ready TV Subs |
16.8 |
0% |
NA |
16.8 |
16.0 |
4.8 |
|
Internet Subscribers |
||||||
|
Total Internet Subscribers (1) |
770.6 |
622.1 |
23.9 |
770.6 |
758.2 |
1.6 |
|
Cablemodem(1) |
692.2 |
476.8 |
45.2 |
692.2 |
670.3 |
3.3 |
|
ADSL(1) |
51.3 |
97.1 |
-47.2 |
51.3 |
57.8 |
-11.4 |
|
Dial Up (1) |
27.1 |
48.3 |
-43.8 |
27.1 |
30.0 |
-9.7 |
|
% over Bidirectional Homes Passed |
23.3 |
20.2 |
15.3 |
23.3 |
22.9 |
2.1 |
|
Total ARPU(2) |
82.3 |
68.7 |
19.8 |
82.3 |
79.8 |
3.2 |
(1) Figures in thousands
(2) Average Net Sales/average Pay TV Subscribers
PRINTING AND PUBLISHING
|
1Q08 |
1Q07 |
% Var. |
1Q08 |
4Q07 |
% Var. |
|
|
Circulation (1) |
440.5 |
454.6 |
-3.1 |
440.5 |
435.6 |
1.1 |
|
Circulation share% (2) |
47.7 |
49.8 |
-4.1 |
47.7 |
50.2 |
-5.0 |
|
Advertising pages share%(2) |
61.3 |
61.8 |
-0.9 |
61.3 |
60.0 |
2.2 |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and greater Buenos Aires Area (AMBA) Diario Clarín. Company estimates.
BROADCASTING AND PROGRAMMING
|
1Q08 |
1Q07 |
% Var. |
1Q08 |
4Q07 |
% Var. |
|
|
Advertising Share % (1) |
41.2 |
40.9 |
0.7 |
41.2 |
43.3 |
-4.8 |
|
Audience Share % (2) |
||||||
|
Prime Time |
44.4 |
36.4 |
22.0 |
44.4 |
44.5 |
-0.1 |
|
Total Time |
35.4 |
30.3 |
16.9 |
35.4 |
35.6 |
-0.5 |
(1) Company estimate, over ad spend in Ps. in broadcast TV for the AMBA region excluding non-traditional advertising.
(2) Share of broadcast TV audience according to IBOPE for the AMBA region. Prime time 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
|
Mar-08 |
Mar-07 |
% Var. |
|
|
Page Views (1) |
516.0 |
277.3 |
86.1% |
|
Unique Visitors (1) |
18.1 |
12.9 |
40.1% |
(1) In millions, source IAB
DEBT AND LIQUIDITY
|
(In millions of Ps.) |
Mar - 08 |
Mar - 07 |
% Var. |
|
Short Term and Long Term Debt |
|||
|
Current Financial Debt |
452.3 |
450.4 |
0.4 |
|
Financial loans |
81.5 |
324.5 |
-74.9 |
|
Negotiable obligations |
89.1 |
60.5 |
47.4 |
|
Accrued interest and restatements |
52.5 |
47.7 |
10.1 |
|
Acquisition of equipment |
2.6 |
3.7 |
-29.1 |
|
Sellers Financing Capital |
205.4 |
0.0 |
NA |
|
Sellers Financing accrued interest |
21.1 |
14.1 |
50.3 |
|
Non- Current Financial Debt |
2789.9 |
3,003.3 |
-7.1 |
|
Financial loans |
77.9 |
127.0 |
-38.6 |
|
Negotiable obligations |
2005.5 |
2,019.6 |
-0.7 |
|
Restatements |
1.3 |
0 |
NA |
|
Sellers Financing |
705.3 |
856.8 |
-17.7 |
|
Total Financial Debt (A) |
3,242.2 |
3,453.7 |
-6.1 |
|
Bank overdraft |
2.2 |
2.8 |
-19.6 |
|
Measurement at fair Value |
-67.2 |
-106.0 |
-36.6 |
|
Total Short Term and Long Term Debt |
3,177.2 |
3,350.4 |
-5.2 |
|
Cash and Cash Equivalents (B) |
629.0 |
404.4 |
55.5 |
|
Net Debt (A) - (B) |
2,613.2 |
3049.3 |
-14.3 |
|
Net Debt/Adjusted EBITDA (Last 12 Months) |
1.9 |
3.5 |
-47.0 |
|
% USD Debt |
81.8 |
79.3 |
3.1 |
|
% Ar. Ps Debt |
18.2 |
20.7 |
-11.7 |
Negotiable obligations include Cablevisión USD114.4 MM notes due October 2012; Cablevisión USD235.1 MM notes due October 2015, Multicanal USD105.7 MM notes due July 2013 and Multicanal USD80.3 MM notes due July 2016, and AGEA Ps.300 MM notes due 2011.
Total Financial Debt(1) and Net Debt, were reduced from Ps. 3,453.7 to Ps. 3,242.2 million and from Ps. 3049.3 to Ps. 2,613.2, respectively, since March 2007. This represents a reduction of 6.1% in the Total Debt and of 14.3% in the Net Debt. Comparing quarters, net debt of Ps. 2,452.9 reported in last December increased to Ps. 2,613.2 in the first quarter 2008. The increase was mainly due to the USD55 million debt generated by the accounting of the CIMECO option which was exercised in April 2008, and paid in cash on April 3rd.
Debt coverage ratio as of March 31, 2008 was 1.9x in terms of Net Debt and of 2.3x in terms of Total Financial Debt. The increase was mainly due to the USD55 million debt generated by the accounting of the CIMECO option which was exercised in April 2008, and paid in cash on April 3rd.
Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
RECENT EVENTS
CIMECO - On April 3, 2008, the Company exercised an option to acquire the remaining 50% interest in CIMECO (Compañía Inversora en Medios de Comunicación). CIMECO currently owns 81.3% of Diario La Voz del Interior (Córdoba) and 80% of Diario Los Andes (Mendoza). According to Argentine GAAP, CIMECO was fully consolidated since January 1, 2008.
Printing Facility - On March 4, 2008, Grupo Clarín through one of its subsidiaries, AGR, signed an agreement with Diario El Litoral in order to create Artes Gráficas del Litoral S.A and jointly develop a state of the art printing facility in the Province of Santa Fe which, among other activities, will allow printing Diario Clarín and Diario Olé in Santa Fe, increasing the outreach of Grupo Clarín's editorial products. Out of the total investment of USD 10 million required by the project the Company, through AGR, will contribute with USD 5 million, according to its 50% interest in the new company.
Other Acquisitions - As part of a series of strategic acquisitions within the Broadcasting and Programming segment oriented to increase the offer in the pay TV signals, at the end of 2007 Grupo Clarín acquired an interest in Automóviles Deportivos 2000 S.A. and also, in January 2008, an interest of Carburando, Mundo Show S.A. and Mundo Show TV S.A. The main activities of these companies are the organization, marketing and production of media content related with automobile competition and races.
Annual Shareholders Meeting - Dividend payment - On April 24, Grupo Clarín held its first General Annual Ordinary Shareholders Meeting, since its Initial Public Offering. On that occasion, the shareholders considered and approved the 2007 Financial Statements and other related documentation and the performance and compensation of Directors, Supervisory Committee and Audit Committee. Also, they elected members of the Board of Directors and mentioned committees for fiscal year 2008, along with an external auditor, and approved the payment of a cash dividend of approximately Ps. 48 million. This represented a payment of Ps. 0.167 per share without implying the establishment of a dividend policy for the future.
Merval Index - On April 1, 2008, Grupo Clarín entered the Merval Index. The Merval is the main index of the Buenos Aires Stock Exchange, where the Company's stock has traded since its Initial Public Offering in October 2007. Grupo Clarín joined 41 other companies that currently comprise the index. The list of companies that compose the MERVAL is updated every three months, based on transactions and volumes in the preceding period.
Long-Term Savings Plan - The Company, together with its subsidiaries, started the implementation process of a Long-Term Savings Plan (PALP) for certain executives initiating in January 2008. Through this plan, participating executive officers committed to contribute regularly a portion of their salary (variable within a certain range, at the employee's option) to a fund that will allow them to increase their income at the retirement age. Furthermore, each company of the Group where such executive officers render services will match such officers´ contributions to the fund. The final expense in which the Company, together with its subsidiaries, will incur depends on the number of executives that elect to participate in the contribution plan, the portion of the salary each participating executive decides to contribute (within the defined range) and on the years of service of each participating executive. The total expense that the Company estimates for 2008, amounts to approximately Ps.20 million, out of which Ps.8.5 millions are related to the initial implementation. Ps. 6.6 million of this implementation costs were charged to the EBITDA for the First Quarter 08, along with Ps.1.7 millions in terms of costs for this period. The remaining Ps.1.9 millions of the implementation costs will be seen throughout 2008.
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its first quarter results for 2008, on Monday, May 12, 2008, at 12:00 / 4pm London / 11am New York
Presentations by Alejandro Urricelqui, Chief Financial Officer and Alfredo Marín, Investor Relations Officer, will be in English, based on the earnings release, which will be distributed on May 12, 2008 at 9am Buenos Aires Time, 1pm London and 7am New York time.
To access the conference call, please dial: +44 (800) 092 3582 toll free from the U.K., +1 (800) 311 9401 toll free from the U.S., +0 800 333-0050 from Argentina, or +1 (334) 323 7224 from all other countries, 5-10 minutes prior to the start time. The Conference ID is #6118.
To access the simultaneous webcast presentation, please go to: http://www.grupoclarin.com.ar/ir
A replay of the conference call will be available one hour after its conclusion, and will remain available for one week. To access the replay, please dial: +1 (877) 919 4059 toll free from the U.S., or +1 (334) 323 7226 from anywhere outside the U.S. The replay passcode is: 39028197. 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 the market leader in the cable television and Internet access, printing and publishing, and broadcasting and programming segments. Its cable television network is the largest in Latin America, with the largest broadband subscriber base in Argentina. Its flagship newspaper -Diario Clarín- is the highest circulation newspaper in Latin America and the second-highest circulation Spanish-language newspaper in the world. 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 income, geography and age.
Disclaimer
Certain information included 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 undertake or intend to 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, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.
CONSOLIDATED BALANCE SHEETS
As of March 31, 2008 and December 31, 2007
In Argentine Pesos (Ps.)
|
03.31.2008 |
12.31.2007 |
|||||
|
ASSETS |
||||||
|
CURRENT ASSETS |
||||||
|
Cash and banks |
335,877,753 |
219,760,595 |
||||
|
Short-term investments |
293,088,820 |
345,699,907 |
||||
|
Trade receivables, net |
570,417,887 |
569,117,703 |
||||
|
Other receivables, net |
190,230,056 |
142,290,047 |
||||
|
Inventories |
208,099,267 |
168,195,918 |
||||
|
Other assets |
49,155,749 |
48,419,337 |
||||
|
Total current assets |
1,646,869,532 |
1,493,483,507 |
||||
|
NON-CURRENT ASSETS |
||||||
|
Trade receivables, net |
11,810,277 |
10,839,314 |
||||
|
Other receivables, net |
196,963,835 |
203,134,042 |
||||
|
Inventories |
48,716,388 |
41,078,789 |
||||
|
Investment in unconsolidated affiliates |
25,549,389 |
31,132,115 |
||||
|
Other investments |
7,038,604 |
8,394,731 |
||||
|
Property, plant and equipment, net |
1,867,980,738 |
1,665,732,947 |
||||
|
Intangible assets, net |
964,664,686 |
983,230,664 |
||||
|
Other assets |
345,519 |
120,007 |
||||
|
Subtotal |
3,123,069,436 |
2,943,662,609 |
||||
|
Goodwill |
2,758,243,835 |
2,575,035,311 |
||||
|
Total non-current assets |
5,881,313,271 |
5,518,697,920 |
||||
|
Total assets |
7,528,182,803 |
7,012,181,427 |
||||
|
LIABILITIES |
||||||
|
CURRENT LIABILITIES |
||||||
|
Accounts payable |
559,183,927 |
516,401,732 |
||||
|
Long-term debt |
227,963,915 |
228,733,303 |
||||
|
Salaries and Social Security payable |
166,699,650 |
163,434,344 |
||||
|
Taxes payable |
279,779,826 |
242,901,986 |
||||
|
Other liabilities |
358,462,693 |
123,847,203 |
||||
|
Total current liabilities |
1,592,090,011 |
1,275,318,568 |
||||
|
NON-CURRENT LIABILITIES |
||||||
|
Accounts payable |
9,918,179 |
9,876,692 |
||||
|
Long-term debt |
2,017,425,269 |
1,986,879,514 |
||||
|
Salaries and Social Security payable |
167,157 |
163,998 |
||||
|
Taxes payable |
30,956,745 |
18,133,529 |
||||
|
Other liabilities |
938,640,193 |
923,416,255 |
||||
|
Provisions |
123,857,215 |
131,235,431 |
||||
|
Total non-current liabilities |
3,120,964,758 |
3,069,705,419 |
||||
|
Total liabilities |
4,713,054,769 |
4,345,023,987 |
||||
|
MINORITY INTEREST |
488,120,153 |
430,176,380 |
||||
|
SHAREHOLDERS' EQUITY |
2,327,007,881 |
2,236,981,060 |
||||
|
Total liabilities, minority interest and shareholders' equity |
7,528,182,803 |
7,012,181,427 |
||||
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three-month periods ended March 31, 2008 and 2007
In Argentine Pesos (Ps.)
|
03.31.2008 |
03.31.2007 |
||
|
Net sales |
1,195,701,099 |
907,335,252 |
|
|
Cost of sales (excluding depreciation and amortization) |
(578,220,459) |
(426,716,573) |
|
|
Subtotal |
617,480,640 |
480,618,679 |
|
|
Expenses (excluding depreciation and amortization) |
|||
|
Selling expenses |
(122,701,946) |
(103,143,183) |
|
|
Administrative expenses |
(142,231,512) |
(97,213,551) |
|
|
Expenses subtotal |
(264,933,458) |
(200,356,734) |
|
|
Depreciation of property, plant and equipment (1) |
(66,154,708) |
(68,639,541) |
|
|
Amortization of intangible and other assets |
(31,721,106) |
(30,305,442) |
|
|
Goodwill amortization |
(995,652) |
- |
|
|
Depreciation of other investments |
(37,301) |
(32,693) |
|
|
Depreciation and amortization subtotal |
(98,908,767) |
(98,977,676) |
|
|
Financing and holding results |
|||
|
Generated by assets |
|||
|
Interest |
5,985,636 |
3,760,156 |
|
|
Other taxes and expenses |
(17,692,967) |
(13,490,648) |
|
|
Impairment of inventories and materials |
(458,932) |
- |
|
|
Exchange differences |
1,284,959 |
7,502,115 |
|
|
Holding gains on inventories |
3,641,974 |
3,149,825 |
|
|
Holding (losses) on financial instruments |
879,117 |
(260,394) |
|
|
Effect of financial discounts on assets |
735,528 |
284,599 |
|
|
Other |
(265,021) |
637,607 |
|
|
Generated by liabilities |
|||
|
Interest |
(51,610,172) |
(68,834,295) |
|
|
Exchange differences |
(17,445,265) |
(33,712,568) |
|
|
Effect of financial discounts on liabilities |
(9,376,666) |
(10,788,293) |
|
|
CER restatement |
(289,181) |
(1,308,165) |
|
|
Holding (losses) on financial instruments |
6,470,817 |
1,510,278 |
|
|
Other |
(265,204) |
(496,578) |
|
|
Equity in earnings from unconsolidated affiliates and gain on sale of subsidiaries, net |
2,724,279 |
2,667,004 |
|
|
Other expenses, net |
(2,248,091) |
(1,675,582) |
|
|
Income before income tax, tax on assets and minority interest |
175,709,226 |
70,229,330 |
|
|
Income tax and tax on assets |
(58,483,220) |
(30,446,799) |
|
|
Minority interest |
(37,298,525) |
(13,793,777) |
|
|
Income for the period |
79,927,481 |
25,988,754 |
|
Cost of sales |
(59,447,115) |
(62,083,380) |
|
Selling expenses |
(4,079,529) |
(4,103,272) |
|
Administrative expenses |
(2,628,064) |
(2,452,889) |
(1) Chargeable to:
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the three-month periods ended March 31, 2008 and 2007
In Argentine Pesos (Ps.)
|
03.31.2008 |
03.31.2007 |
|||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
||||
|
Income for the period |
79,927,481 |
25,988,754 |
||
|
Income tax and tax on assets |
58,483,220 |
30,446,799 |
||
|
Accrued interest |
45,624,536 |
65,074,139 |
||
|
Adjustments to reconcile net income for the period to cash provided by operating activities: |
||||
|
Depreciation of property, plant and equipment |
66,154,708 |
68,639,541 |
||
|
Amortization of intangible and other assets |
31,721,106 |
30,305,442 |
||
|
Goodwill amortization |
995,652 |
- |
||
|
Depreciation of other investments |
37,301 |
32,693 |
||
|
Setting up of allowances for doubtful accounts |
5,160,272 |
5,022,802 |
||
|
Setting up of provision for contingencies |
2,695,082 |
892,373 |
||
|
Exchange difference and other financial results |
24,289,387 |
35,674,352 |
||
|
Equity in (earnings) from unconsolidated affiliates and gain on sale of subsidiaries, net |
(2,724,279) |
(2,667,004) |
||
|
Minority interest |
37,298,525 |
13,793,777 |
||
|
Holding (losses) on financial instruments |
(7,349,934) |
(1,249,884) |
||
|
Holding gains on inventories |
(3,641,974) |
(3,149,825) |
||
|
(Losses) / Gains on sale of property, plant and equipment |
3,105 |
(75,536) |
||
|
Setting up of allowance for impairment in value of inventories and materials |
458,932 |
- |
||
|
Changes in assets and liabilities: |
||||
|
Trade receivables |
29,364,996 |
46,737,380 |
||
|
Other receivables |
(44,571,106) |
(12,168,308) |
||
|
Inventories |
(36,078,203) |
(16,239,947) |
||
|
Other assets |
775,904 |
(2,238,508) |
||
|
Accounts payable |
29,999,386 |
(25,524,349) |
||
|
Salaries and Social Security payable |
(1,025,838) |
(12,519,140) |
||
|
Taxes payable |
7,146,949 |
10,009,736 |
||
|
Other liabilities |
26,049,323 |
(13,472,710) |
||
|
Provisions |
(21,026,782) |
(2,816,140) |
||
|
Income tax and tax on assets payments |
(15,892,520) |
(34,811,658) |
||
|
Cash provided by operating activities |
313,875,229 |
205,684,779 |
||
|
CASH USED IN INVESTING ACTIVITIES |
||||
|
Acquisition of property, plant and equipment |
(205,470,994) |
(90,957,809) |
||
|
Acquisition of intangible assets |
(1,831,146) |
(552,430) |
||
|
Net cash from the acquisition and consolidation of subsidiaries |
7,418,998 |
188,108 |
||
|
Collection for proceeds from sale of property, plant and equipment |
49,124 |
62,920 |
||
|
Capital contributions in subsidiaries |
(3,213,000) |
- |
||
|
Collection of interest |
146,614 |
8,427,602 |
||
|
Cash used in investing activities |
(202,900,404) |
(82,831,609) |
||
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the three-month periods ended March 31, 2008 and 2007
In Argentine Pesos (Ps.)
|
03.31.2008 |
03.31.2007 |
|||
|
CASH USED IN FINANCING ACTIVITIES |
||||
|
Loans obtained |
2,720,572 |
805,245 |
||
|
Payment of loans |
(24,990,323) |
(26,977,572) |
||
|
Payment of interest |
(29,748,411) |
(80,524,627) |
||
|
Net reimbursement of expenses related to the initial public offering |
1,484,015 |
- |
||
|
Net collections from financial instruments |
- |
7,572,612 |
||
|
Payment of sellers financing |
(695,194) |
(2,592,695) |
||
|
Payments to minority shareholders |
- |
(252,487) |
||
|
Cash used in financing activities |
(51,229,341) |
(101,969,524) |
||
|
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS |
3,760,587 |
2,229,895 |
||
|
Net Increase in cash flow |
63,506,071 |
23,113,541 |
||
|
Cash and cash equivalents at the beginning of the year |
565,460,502 |
381,242,555 |
||
|
Cash and cash equivalents at period-end (1) |
628,966,573 |
404,356,096 |
||
(1) It includes:
|
Cash and banks |
335,877,753 |
263,004,027 |
|
|
Investments with maturities of less than three months |
293,088,820 |
141,352,069 |
Related Shares:
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