12th May 2009 13:00
Grupo Clarín announces
Results for the First Quarter of 2009
Buenos Aires, Argentina, May 12, 2009 - 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 2009. Figures in this report have been prepared in accordance with Argentine GAAP as of March 31, 2009 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1Q09 vs. 1Q08):
Net Sales totaled Ps. 1,509.8 million, an increase of 26.3% from 1Q08, mainly due to ARPU and subscriber growth in the Cable TV and Internet segment and, to a lesser extent, to higher advertising sales in Printing and Publishing, and higher advertising and programming sales in the Broadcasting and Programming segment.
Adjusted EBITDA(1) reached Ps. 435.7 million, an increase of 23.6% from 1Q08, driven by higher sales in the Cable and Internet access, Printing and Publishing and Broadcasting and Programming segments.
Grupo Clarín's Adjusted EBITDA Margin (2) was 28.9% for 1Q09, compared to 29.5% in 1Q08.
Net Income (Loss) totaled Ps. (34.8) million, from Ps. 79.9 million reported in 1Q08.
Comments from the Vice Chairman of Grupo Clarín:
Mr. José A. Aranda, Vice Chairman of Grupo Clarín, stated, "I am pleased to report Grupo Clarín's results for the first quarter of 2009. In a context of global and persisting macroeconomic challenges and uncertainties, our Company shows good operating results in line with our expectations, reaffirming our management's resolve to strengthen and sustain the company's leadership position in the different markets in which it operates".
FINANCIAL HIGHLIGHTS
|
(In millions of Ps.) |
1Q09 |
4Q08 |
1Q08 |
QoQ |
YoY |
|
Net Sales |
1,509.8 |
1,625.3 |
1,195.7 |
-7.1% |
26.3% |
|
Adjusted EBITDA (1) |
435.7 |
458.1 |
352.5 |
-4.9% |
23.6% |
|
Adjusted EBITDA Margin (2) |
28.9% |
28.2% |
29.5% |
2.4% |
-2.1% |
|
Net Income (Loss) |
(34.8) |
(14.2) |
79.9 |
146.1% |
-143.6% |
Investor Relations Contacts
In Buenos Aires:
Alfredo Marín / M. Julia Díaz Ardaya / Alejandro Yu
Grupo Clarín
Email: [email protected]
Website: www.grupoclarin.com/ir
In London:
Alex Money / Lorna Ellen
Temple Bar Advisory
Tel: +44 20 7002 1080
E-mail: [email protected]
In New York:
Melanie Carpenter / Pete Majeski
I-advize Corporate Communications
Tel: +1 212 406 3692
Email: [email protected]
OPERATING RESULTS
Net sales reached Ps. 1,509.8 million, an increase of 26.3% from Ps. 1,195.7 million in 1Q08 due to ARPU and subscriber growth in the Cable TV and Internet segment and, to a lesser extent, to higher advertising sales in Printing and Publishing and 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.) |
1Q09 |
4Q08 |
1Q08 |
QoQ |
YoY |
|
Cable TV and Internet Access |
995.5 |
937.3 |
748.7 |
6.2% |
33.0% |
|
Printing and Publishing |
356.1 |
431.7 |
331.8 |
-17.5% |
7.3% |
|
Broadcasting and Programming |
225.0 |
324.0 |
167.8 |
-30.5% |
34.1% |
|
Digital Content and Others |
43.2 |
41.8 |
40.4 |
3.4% |
7.1% |
|
Subtotal |
1,619.9 |
1,734.7 |
1,288.7 |
-6.6% |
25.7% |
|
Eliminations |
(110.1) |
(109.4) |
(93.0) |
0.6% |
18.3% |
|
Total |
1,509.8 |
1,625.3 |
1,195.7 |
-7.1% |
26.3% |
Cost of sales (Excluding Depreciation and Amortization) totaled Ps. 756.0 million, an increase of 30.8% from Ps. 578.2 million reported for 1Q08, due to higher costs mainly in Cable TV and Internet Access segment due to subscriber growth, but also in the Broadcasting and Programming and in the Printing and Publishing segments.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 318.1 million, an increase of 20.1% from Ps. 264.9 million reported in 1Q08. This increase was mainly derived from higher costs in Cable TV and Internet access, Printing and Publishing and Broadcasting and Programming segments.
Financial results net totaled Ps. (292.7) million compared to Ps. (78.4) million for 1Q08. The increase was mainly due to the peso depreciation during 1Q09.
Equity in earnings from unconsolidated affiliates in 1Q09 reached Ps. 3.5 million, compared to Ps. 2.7 million reported for 1Q08.
Other expenses, net reached Ps. 9.1 million, compared to Ps. (2.2) million in 1Q08.
Adjusted EBITDA reached Ps. 435.7 million, an increase of 23.6% from Ps. 352.5 million reported for 1Q08, driven by higher sales in the Cable and Internet, Printing and Publishing and Broadcasting and Programming segments, partially offset by increasing costs.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
|
(In millions of Ps.) |
1Q09 |
4Q08 |
1Q08 |
QoQ |
YoY |
|
Cable TV and Internet Access |
347.3 |
311.4 |
273.1 |
11.5% |
27.1% |
|
Printing and Publishing |
59.1 |
99.5 |
63.3 |
-40.6% |
-6.6% |
|
Broadcasting and Programming |
25.5 |
51.2 |
11.6 |
-50.1% |
120.5% |
|
Digital Content and Others |
3.8 |
(3.9) |
4.6 |
-196.4% |
-16.7% |
|
Subtotal |
435.7 |
458.1 |
352.5 |
-4.9% |
23.6% |
|
Eliminations |
- |
- |
- |
NA |
NA |
|
Total |
435.7 |
458.1 |
352.5 |
-4.9% |
23.6% |
Income tax as of March 2009, reached Ps. (35.2) million, from Ps. (58.5) million reported as of March 2008.
Net income (loss) totaled Ps. (34.8) million, from Ps. 79.9 million reported for 1Q08, mainly as a consequence of the peso depreciation during the last quarter, which went from 3.45 pesos per dollar at the end of 4Q08, to 3.72 pesos per dollar as of March 31st, 2009. The Total loss as a consequence of the exchange rate differences generated by our financial and other debt in foreign currency amounted to 209 million pesos.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 221.9 million in 1Q09, an increase of 8.1% from Ps. 205.3 million reported for 1Q08. Out of the total CAPEX in 1Q09, 85.2% was allocated to the Cable TV and Internet access segment, 8.4% to the Printing and Publishing segment and the remaining 6.4% to other activities. Capital expenditures in the Cable TV and Internet access segment reflect network upgrades and subscriber growth in Cablevisión.
Debt profile (1): Debt coverage ratio for the period ended December 31, 2008, was 1.6x while Net Debt at the end of this period totaled Ps. 2,751.4 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.
SALES BREAKDOWN BY SOURCE OF REVENUE - 1Q09
|
(In millions of Ps.) |
Cable TV & Internet access |
Printing & Publishing |
Broadcasting & Programming |
Digital Content & Others |
Eliminations |
Total |
% |
|
Advertising |
9.0 |
178.5 |
87.2 |
5.1 |
(18.3) |
261.5 |
17.3% |
|
Circulation |
- |
113.3 |
- |
- |
- |
113.3 |
7.5% |
|
Printing |
- |
29.6 |
- |
- |
(7.3) |
22.3 |
1.5% |
|
Video Subscriptions |
777.8 |
- |
- |
- |
- |
777.8 |
51.5% |
|
Internet Subscriptions |
182.8 |
- |
- |
- |
- |
182.8 |
12.1% |
|
Programming |
- |
- |
107.8 |
- |
(47.8) |
60.0 |
4.0% |
|
Other Sales |
25.9 |
34.7 |
30.0 |
38.2 |
(36.7) |
92.1 |
6.1% |
|
Total Sales |
995.5 |
356.1 |
225.0 |
43.2 |
(110.1) |
1,509.8 |
100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - 1Q08
|
(In millions of Ps.) |
Cable TV & Internet access |
Printing & Publishing |
Broadcasting & Programming |
Digital Content & Others |
Eliminations |
Total |
% |
|
Advertising |
6.8 |
170.8 |
69.4 |
4.9 |
(17.2) |
234.7 |
19.6% |
|
Circulation |
- |
103.6 |
- |
- |
- |
103.6 |
8.7% |
|
Printing |
- |
36.9 |
- |
- |
(6.3) |
30.7 |
2.6% |
|
Video Subscriptions |
597.4 |
- |
- |
- |
- |
597.4 |
50.0% |
|
Internet Subscriptions |
138.8 |
- |
- |
- |
- |
138.8 |
11.6% |
|
Programming |
- |
- |
77.8 |
- |
(36.8) |
41.0 |
3.4% |
|
Other Sales |
5.6 |
20.5 |
20.6 |
35.5 |
(32.7) |
49.5 |
4.1% |
|
Total Sales |
748.7 |
331.9 |
167.8 |
40.4 |
(93.0) |
1,195.7 |
100.0% |
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 33.0% to Ps. 995.5 million for 1Q09 compared to Ps. 748.7 million for 1Q08. The increase is mostly attributable to an increase in subscription charges registered during the last twelve months, and reflects growth in Cable, Broadband and Digital subscribers. Total Cable TV basic subscribers reached 3,212,365 as of March 2009, compared to the 3,043,081 reported in the same date in 2008. Internet subscribers reached 933,174 in 1Q09, compared to the 770,602 of 1Q08.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 40.7% to Ps. 450.2 million for 1Q09, compared to Ps. 319.9 million in 1Q08. This was mainly derived from personal and salary increases, and higher programming costs attributable to growth in our subscriber base and also to pricing adjustments linked to basic monthly fee increases. It also shows higher expenses for maintenance of property, plant and equipment, along with network expenses.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) for 1Q09 increased by 27.3% to Ps. 198.1 million, compared to Ps. 155.6 million reported in the same period of 2008. This increase is driven by higher expenses for salaries, wages and social security charges, and higher taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses for 1Q09 increased by 41.4% to Ps. 112.9 million from Ps. 79.9 million reported in 1Q08.
PRINTING AND PUBLISHING
Net Sales
In 1Q09, Net sales increased by 7.3% to Ps. 356.1 million, compared to Ps. 331.8 million reported in 1Q08. This was the result of higher sales in advertising and optional products, higher sales in our regional newspapers business and in Papel Prensa.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) in 1Q09 increased by 11.7% to Ps. 196.3 million, compared to Ps. 175.7 million in 1Q08. The increase was primarily the result of higher wages, salaries and an increase in the printing costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 8.4% to Ps. 100.7 million in 1Q09, compared to the Ps. 92.9 million reported for 1Q08. The increase was primarily the result of higher salaries, wages, social security expenses and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased to Ps. 16.1 million in 1Q09 by 24.8%, compared to Ps. 12.9 million reported for 1Q08. The increase reflects capital expenditures made during the last years.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 34.1% to Ps. 225.0 million in 1Q09, compared to Ps. 167.8 million in 1Q08. This was primarily the result of higher advertising and sports programming sales, and was also driven by increases in the pricing of cable signal and sports programming, attributable to contract formulas that link pricing to increases in the monthly fees. It was also related to the consolidation of Pol-ka after an increase in our stake last year and, to a lesser extent, to additional sales from our racing cars business.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 35.7% to Ps. 152.0 million in 1Q09, compared to Ps. 112.1 million in 1Q08. This is attributable to increases in salaries and artistic fees, higher programming and production costs, higher costs for the soccer matches included in the renegotiation of TV rights and the consolidation of Polka.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) in 1Q09, increased by 7.3% to Ps. 47.4 million, compared to Ps. 44.2 million reported in 1Q08. The increase was primarily the result of higher salaries, wages, social security expenses and the consolidation of Pol-ka.
Depreciation and Amortization
Depreciation and amortization expenses in 1Q09, increased by 216.8% to Ps. 14.8 million, compared to Ps. 4.7 million reported in 1Q08. Such increase was mainly due to the acquisition of an additional stake and consolidation of Pol-ka.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our subsidiary GC Gestión Compartida S.A. to third parties as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content. Net sales to third parties are largely derived from advertising in our web pages and portals. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers.
Net sales increased 7 percent to 43 million pesos. While the management fee received from Cablevisión was reduced, sales from the segment increased. EBITDA in this segment decreased 17% to 4 million pesos as a consequence of the mentioned reduction and also of the increase in costs and salaries, mainly at Grupo Clarín.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
|
1Q09 |
4Q08 |
1Q08 |
QoQ |
YoY |
|
|
Homes Passed (1) |
6,753.6 |
6,753.6 |
6,753.6 |
0.0% |
0.0% |
|
Bidirectional Homes Passed |
47.0% |
47.0% |
47.0% |
0.0% |
0.0% |
|
Cable TV |
|||||
|
Total Subscribers (1) |
3,212.4 |
3,190.6 |
3,043.1 |
0.7% |
5.6% |
|
Subscribers - Argentina |
3,028.9 |
3,011.9 |
2,878.6 |
0.6% |
5.2% |
|
Subscribers - International |
183.4 |
178.7 |
164.5 |
2.6% |
11.5% |
|
Uruguay |
90.6 |
88.4 |
80.5 |
2.5% |
12.5% |
|
Paraguay |
92.8 |
90.3 |
84.0 |
2.8% |
10.5% |
|
% over Homes Passed |
47.6% |
47.2% |
45.1% |
0.8% |
5.5% |
|
Churn Rate % |
16.9% |
15.9% |
16.5% |
6.5% |
2.6% |
|
Digital Video |
|||||
|
Digital ready Pay TV Subs (1) |
2,049.0 |
1,974.1 |
1,496.4 |
3.8% |
36.9% |
|
Subscribers (1)(3) |
382.6 |
367.2 |
251.5 |
4.2% |
52.1% |
|
Penetration over Digital Ready TV Subs |
18.7% |
18.6% |
16.8% |
0.4% |
11.2% |
|
Internet Subscribers |
|||||
|
Total Internet Subscribers (1) |
933.2 |
938.8 |
770.6 |
-0.6% |
21.1% |
|
Cablemodem & Other Technologies(1) |
888.8 |
889.1 |
692.2 |
0.0% |
28.4% |
|
ADSL(1) |
30.0 |
33.8 |
51.3 |
-11.1% |
-41.4% |
|
Dial Up (1) |
14.4 |
15.9 |
27.1 |
-9.7% |
-47.0% |
|
% over Bidirectional Homes Passed |
29.4% |
29.0% |
23.3% |
1.4% |
26.2% |
|
Total ARPU(2) |
103.7 |
98.5 |
82.3 |
5.2% |
25.9% |
(1) Figures in thousands
(2) Average Net Sales/ Average Pay TV Subscribers
(3) Argentina Only
PRINTING AND PUBLISHING
|
1Q09 |
4Q08 |
1Q08 |
QoQ |
YoY |
|
|
Circulation (1) |
410.1 |
426.5 |
440.5 |
-3.9% |
-6.9% |
|
Circulation share % (2) |
47.1% |
47.8% |
47.7% |
-1.4% |
-1.2% |
|
Advertising share %(2) |
62.1% |
61.7% |
61.3% |
0.6% |
1.3% |
(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
|
1Q09 |
4Q08 |
1Q08 |
QoQ |
YoY |
|
|
Advertising Share % (1) |
37.2% |
41.5% |
41.2% |
-10.4% |
-9.8% |
|
Audience Share % (2) |
|||||
|
Prime Time |
37.4% |
37.8% |
44.4% |
-1.1% |
-15.8% |
|
Total Time |
29.4% |
30.8% |
35.4% |
-4.4% |
-16.8% |
(1) Company estimate, over ad spend in Ps. In broadcast TV for AMBA region.
(2) Share of broadcast TV audience according to IBOPE for AMBA. Prime Time is defined as Monday through Friday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12 pm to 12 am.
DIGITAL CONTENT AND OTHERS
|
1Q09 |
|
|
Page Views (1) |
454,1 |
|
Unique Visitors (1) |
14,9 |
(1) In millions. Monthly average. Source IAB
DEBT AND LIQUIDITY
|
(In millions of Ps.) |
3M09 |
FY08 |
3M08 |
QoQ |
YoY |
|
Short Term and Long Term Debt |
|||||
|
Current Financial Debt |
439.6 |
409.0 |
454.5 |
7.5% |
-3.3% |
|
Financial loans |
148.4 |
140.5 |
81.5 |
5.6% |
82.0% |
|
Negotiable obligations |
167.7 |
153.1 |
89.1 |
9.5% |
88.2% |
|
Accrued interest |
62.6 |
28.1 |
52.5 |
122.7% |
19.2% |
|
Acquisition of equipment |
7.1 |
0.9 |
2.6 |
678.4% |
173.4% |
|
Sellers Financing Capital |
13.0 |
50.7 |
204.8 |
-74.5% |
-93.7% |
|
Sellers Financing accrued interest |
17.8 |
12.6 |
21.7 |
41.4% |
-17.7% |
|
Related Parties Capital |
12.5 |
12.5 |
- |
0.0% |
NA |
|
Related Parties Accrued Interest |
0.8 |
- |
- |
NA |
NA |
|
Bank Overdraft |
9.8 |
10.5 |
2.2 |
-6.8% |
339.2% |
|
Non-Current Financial Debt |
2,750.0 |
2,658.9 |
2,789.9 |
3.4% |
-1.4% |
|
Financial loans |
31.0 |
55.2 |
77.9 |
-43.8% |
-60.2% |
|
Negotiable obligations |
2,163.2 |
2,025.0 |
2,005.5 |
6.8% |
7.9% |
|
Accrued interest |
1.1 |
1.3 |
1.3 |
-21.8% |
-16.3% |
|
Acquisition of equipment |
28.6 |
26.2 |
- |
9.2% |
NA |
|
Sellers Financing Capital |
526.1 |
551.2 |
705.3 |
-4.5% |
-25.4% |
|
Related Parties Capital |
- |
- |
- |
NA |
NA |
|
Total Financial Debt (A) |
3,189.6 |
3,067.9 |
3,244.4 |
4.0% |
-1.7% |
|
Measurement at fair Value |
(39.2) |
(45.9) |
(67.2) |
-14.6% |
-41.7% |
|
Total Short Term and Long Term Debt |
3,150.4 |
3,022.0 |
3,177.2 |
4.3% |
-0.8% |
|
Cash and Cash Equivalents (B) |
438.2 |
467.6 |
629.0 |
-6.3% |
-30.3% |
|
Net Debt (A) - (B) |
2,751.4 |
2,600.3 |
2,615.4 |
5.8% |
5.2% |
|
Net Debt/Adjusted EBITDA (Last 12 Months) |
1.6x |
1.5x |
1.8x |
1.2% |
-14.8% |
|
% USD Debt |
85.3% |
83.6% |
81.8% |
2.1% |
4.3% |
|
% Ar. Ps Debt |
14.7% |
16.4% |
18.2% |
-10.6% |
-19.4% |
Negotiable obligations include Cablevisión USD 114.4 MM notes due October 2012; Cablevisión USD 235.1 MM notes due October 2015; Multicanal USD 105.7 MM notes due July 2013; Multicanal USD 80.3 MM notes due July 2016, and AGEA Ps. 225.0 MM notes due 2011.
Total Financial Debt(1) decreased from Ps. 3,244.4 million to Ps. 3,189.6 million while Net Debt increased from Ps. 2,615.4 million to Ps. 2,751.4 million. This represents a decrease of 1.7% in the Total Debt and an increase of 5.2% in Net Debt.
Debt coverage ratio (1) as of March 31, 2009 was 1.6x in the case of Net Debt and of 1.8x in terms of Total Financial Debt.
(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.
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) |
4.49 |
|
GCLA (LSE) Price per GDS (USD) |
2.25 |
|
Total Shares |
287,418,584 |
|
Total GDSs |
143,709,292 |
|
Market Value (USD MM) |
323.3 |
|
Closing Price |
May 11. 2009 |
RECENT EVENTS
Annual Shareholders Meeting - On April 23, Grupo Clarín held its second General Annual Ordinary Shareholders Meeting since its Initial Public Offering. On that occasion, the shareholders considered and approved the 2008 Financial Statements and other related documentation and the performance and compensation of Directors, Supervisory Committee and Audit Committee. Also, among other things, they reelected the members of the Board of Directors and mentioned committees for fiscal year 2009, along with an external auditor. The Company did not distribute dividends.
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín S.A. will host a conference call and webcast presentation on Tuesday, May 12, 2009 at 12:00pm Buenos Aires Time (11:00am Eastern Time; 4:00 pm London Time) to discuss its results for the first quarter period ended March 31, 2009.
Presentations by Alejandro Urricelqui, Chief Financial Officer and Alfredo Marín, Investor Relations Officer, will be in English, based on the this earnings release.
Those interested in connecting via conference call are invited to please dial 1 (800) 311 9401 toll free from the U.S., 0800 333 0050 toll free from Argentina, 44 (800) 092 3582 toll free from the U.K. or +1 (334) 323 7224 from elsewhere 5-10 minutes prior to the start time. The Conference ID is #6118.
To access the webcast presentation registration form, go to www.grupoclarin.com/ir
There will be a 48-hour replay available starting one hour after the conclusion of the conference call. To access the replay, please dial +1 (877) 919 4059 toll free from the U.S., or +1 (334) 323 7226 from anywhere outside the U.S. The replay passcode is: 36618663. 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 wealth, geography and age.
Disclaimer
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Grupo Clarín does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.
CONSOLIDATED BALANCE SHEETS
As of March 31, 2009 and December 31, 2008
In Argentine Pesos (Ps.)
|
March 31, 2009 |
December 31, 2008 |
||||||||
|
ASSETS |
|||||||||
|
CURRENT ASSETS |
|||||||||
|
Cash and banks |
302,639,159 |
322,581,333 |
|||||||
|
Short-term investments |
135,547,431 |
145,010,737 |
|||||||
|
Trade receivables, net |
621,625,221 |
681,011,986 |
|||||||
|
Other receivables, net |
324,146,557 |
231,915,278 |
|||||||
|
Inventories |
233,296,918 |
253,755,031 |
|||||||
|
Other assets |
140,684,699 |
46,158,483 |
|||||||
|
Total current assets |
1,757,939,985 |
1,680,432,848 |
|||||||
|
NON-CURRENT ASSETS |
|||||||||
|
Trade receivables, net |
10,055,248 |
11,012,692 |
|||||||
|
Other receivables, net |
113,299,072 |
160,657,175 |
|||||||
|
Inventories |
58,297,525 |
43,830,839 |
|||||||
|
Investment in unconsolidated affiliates |
44,596,025 |
41,309,683 |
|||||||
|
Other investments |
6,821,473 |
6,851,750 |
|||||||
|
Property, plant and equipment, net |
2,443,435,467 |
2,326,576,660 |
|||||||
|
Intangible assets, net |
901,433,022 |
935,159,206 |
|||||||
|
Other assets |
242,714 |
240,014 |
|||||||
|
Subtotal |
3,578,180,546 |
3,525,638,019 |
|||||||
|
Goodwill |
2,695,010,999 |
2,688,380,363 |
|||||||
|
Total non-current assets |
6,273,191,545 |
6,214,018,382 |
|||||||
|
Total assets |
8,031,131,530 |
7,894,451,230 |
|||||||
|
LIABILITIES |
|||||||||
|
CURRENT LIABILITIES |
|||||||||
|
Accounts payable |
619,797,752 |
625,407,239 |
|||||||
|
Long-term debt j |
408,729,490 |
344,969,515 |
|||||||
|
Salaries and Social Security payable |
283,683,324 |
275,146,137 |
|||||||
|
Taxes payable |
344,536,799 |
412,173,464 |
|||||||
|
Sellers financing |
26,961,697 |
63,337,460 |
|||||||
|
Other liabilities |
79,462,525 |
80,679,449 |
|||||||
|
Total current liabilities |
1,763,171,587 |
1,801,713,264 |
|||||||
|
NON-CURRENT LIABILITIES |
|||||||||
|
Accounts payable |
13,608,966 |
13,629,441 |
|||||||
|
Long-term debt |
2,184,803,188 |
2,062,492,021 |
|||||||
|
Salaries and Social Security payable |
202,643 |
185,706 |
|||||||
|
Taxes payable |
103,128,837 |
13,004,671 |
|||||||
|
Sellers financing |
529,927,186 |
551,170,669 |
|||||||
|
Other liabilities |
331,006,779 |
323,393,965 |
|||||||
|
Provisions |
121,398,375 |
126,048,109 |
|||||||
|
Total non-current liabilities |
3,284,075,974 |
3,089,924,582 |
|||||||
|
Total liabilities |
5,047,247,561 |
4,891,637,846 |
|||||||
|
MINORITY INTEREST |
552,177,672 |
542,975,885 |
|||||||
|
SHAREHOLDERS' EQUITY |
2,431,706,297 |
2,459,837,499 |
|||||||
|
Total liabilities, minority interest and shareholders' equity |
8,031,131,530 |
7,894,451,230 |
|||||||
CONSOLIDATED STATEMENTS OF INCOME
For the three-month periods ended March 31, 2009 and 2008
In Argentine Pesos (Ps.)
|
March 31, 2009 |
March 31, 2008 |
|||||||
|
Net sales |
1,509,803,030 |
1,195,701,099 |
||||||
|
Cost of sales (excluding depreciation and amortization) |
(755,922,791) |
(578,220,459) |
||||||
|
Subtotal |
753,880,239 |
617,480,640 |
||||||
|
Expenses (excluding depreciation and amortization) |
||||||||
|
Selling expenses |
(145,177,250) |
(122,701,946) |
||||||
|
Administrative expenses |
(173,032,430) |
(142,231,512) |
||||||
|
Expenses subtotal |
(318,209,680) |
(264,933,458) |
||||||
|
Depreciation of property, plant and equipment (1) |
(108,696,259) |
(66,154,708) |
||||||
|
Amortization of intangible and other assets |
(37,267,637) |
(31,721,106) |
||||||
|
Goodwill amortization |
63,253 |
(995,652) |
||||||
|
Depreciation of other investments |
(37,301) |
(37,301) |
||||||
|
Depreciation and amortization subtotal |
(145,937,944) |
(98,908,767) |
||||||
|
Financing and holding results |
||||||||
|
Generated by assets |
||||||||
|
Interest |
9,301,174 |
5,985,636 |
||||||
|
Other taxes and expenses |
(23,778,536) |
(17,692,967) |
||||||
|
Impairment of inventories and materials |
(1,297,233) |
(458,932) |
||||||
|
Exchange differences |
14,931,801 |
1,284,959 |
||||||
|
Holding gains on inventories |
7,662,820 |
3,641,974 |
||||||
|
Holding (gains) losses on derivatives |
(8,551,718) |
879,117 |
||||||
|
Effect of financial discounts on assets |
309,107 |
735,528 |
||||||
|
Other |
(370,988) |
(265,021) |
||||||
|
Generated by liabilities |
||||||||
|
Interest |
(113,052,716) |
(51,610,172) |
||||||
|
Exchange differences |
(209,229,346) |
(17,445,265) |
||||||
|
Effect of financial discounts on liabilities |
51,089,254 |
(9,376,666) |
||||||
|
CER restatement |
(191,855) |
(289,181) |
||||||
|
Holding (gains) losses on derivatives |
(18,917,312) |
6,470,817 |
||||||
|
Other |
(583,433) |
(265,204) |
||||||
|
Equity in earnings from unconsolidated affiliates, net |
3,473,751 |
2,724,279 |
||||||
|
Other income (expense), net |
9,081,407 |
(2,248,091) |
||||||
|
Income before income tax, tax on assets and minority interest |
9,608,792 |
175,709,226 |
||||||
|
Income tax and tax on assets |
(35,237,698) |
(58,483,220) |
||||||
|
Minority interest |
(9,219,938) |
(37,298,525) |
||||||
|
Net income (loss) for the period |
(34,848,844) |
79,927,481 |
||||||
(1) Chargeable to:
|
Cost of sales |
(94,756,749) |
(59,447,115) |
|
Selling expenses |
(8,543,141) |
(4,079,529) |
|
Administrative expenses |
(5,396,369) |
(2,628,064) |
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the three-month periods ended March 31, 2009 and 2008
In Argentine Pesos (Ps.)
|
March 31, 2009 |
March 31, 2008 |
||||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
|||||
|
Net income (loss) for the period |
(34,848,844) |
79,927,481 |
|||
|
Income tax and tax on assets |
35,237,698 |
58,483,220 |
|||
|
Accrued interest |
103,751,542 |
45,624,536 |
|||
|
Adjustments to reconcile net income for the period to cash provided by operating activities: |
|||||
|
Depreciation of property, plant and equipment |
108,696,259 |
66,154,708 |
|||
|
Amortization of intangible and other assets |
37,267,637 |
31,721,106 |
|||
|
Goodwill amortization |
(63,253) |
995,652 |
|||
|
Depreciation of other investments |
37,301 |
37,301 |
|||
|
Allowance for doubtful accounts |
13,666,172 |
5,160,272 |
|||
|
Provision for contingencies |
10,838,852 |
2,695,082 |
|||
|
Allowance for impairment in value of inventories and materials |
1,297,233 |
458,932 |
|||
|
Exchange difference and other financial results |
144,243,524 |
24,289,387 |
|||
|
Equity in earnings from unconsolidated affiliates, net |
(3,473,751) |
(2,724,279) |
|||
|
Minority interest |
9,219,938 |
37,298,525 |
|||
|
Holding (gains) losses on derivatives |
27,469,030 |
(7,349,934) |
|||
|
Holding gains on inventories |
(7,662,820) |
(3,641,974) |
|||
|
Losses / (Gains) on sale of property, plant and equipment |
(9,413,762) |
3,105 |
|||
|
Changes in assets and liabilities: |
|||||
|
Trade receivables |
46,240,089 |
29,364,996 |
|||
|
Other receivables |
(92,729,998) |
(44,571,106) |
|||
|
Inventories |
13,241,105 |
(36,078,203) |
|||
|
Other assets |
(1,016,324) |
775,904 |
|||
|
Accounts payable |
(9,564,668) |
29,999,386 |
|||
|
Salaries and Social Security payable |
7,307,405 |
(1,025,838) |
|||
|
Taxes payable |
(5,231,228) |
7,146,949 |
|||
|
Other liabilities |
18,905,680 |
26,049,323 |
|||
|
Provisions |
(5,482,317) |
(21,026,782) |
|||
|
Income tax and tax on assets payments |
(11,274,803) |
(15,892,520) |
|||
|
Cash provided by operating activities |
396,657,697 |
313,875,229 |
|||
|
CASH USED IN INVESTING ACTIVITIES |
|||||
|
Acquisition of property, plant and equipment |
(221,896,143) |
(205,470,994) |
|||
|
Acquisition of intangible assets |
(2,570,144) |
(1,831,146) |
|||
|
Payment for the acquisition of subsidiaries, net of cash acquired |
(473,985) |
7,418,998 |
|||
|
Collection for proceeds from sale of property, plant and equipment |
16,529,935 |
49,124 |
|||
|
Certificates of deposit |
(42,238,301) |
- |
|||
|
Collection of interest |
- |
146,614 |
|||
|
Capital contributions in subsidiaries |
- |
(3,213,000) |
|||
|
Cash used in investing activities |
(250,648,638) |
(202,900,404) |
|||
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the three-month periods ended March 31, 2009 and 2008
In Argentine Pesos (Ps.)
|
March 31, 2009 |
March 31, 2008 |
||
|
CASH USED IN FINANCING ACTIVITIES |
|||
|
Loans obtained |
5,845,966 |
2,720,572 |
|
|
Payment of loans |
(33,982,944) |
(24,990,323) |
|
|
Payment of interest |
(21,549,947) |
(29,748,411) |
|
|
Net collections of derivatives |
8,504,571 |
- |
|
|
Payment of sellers financing |
(89,233,074) |
(695,194) |
|
|
Escrow funds |
(3,821,034) |
- |
|
|
Reserve account |
(92,369,921) |
- |
|
|
Payments to minority shareholders |
(5,190,319) |
- |
|
|
Net reimbursement of expenses related to the initial public offering |
- |
1,484,015 |
|
|
Cash used in financing activities |
(231,796,702) |
(51,229,341) |
|
|
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS |
14,143,862 |
3,760,587 |
|
|
Net (Decrease) Increase in cash flow |
(71,643,781) |
63,506,071 |
|
|
Cash and cash equivalents at the beginning of the year |
467,592,070 |
565,460,502 |
|
|
Cash and cash equivalents at period end (1) |
395,948,289 |
628,966,573 |
(1) Includes:
|
Cash and banks |
302,639,159 |
335,877,753 |
|
|
Investments with maturities of less than three months |
93,309,130 |
293,088,820 |
Related Shares:
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