11th Nov 2009 12:11
Grupo Clarín announces its
Nine Months (9M09) and Third Quarter (3Q09) results for 2009
Buenos Aires, Argentina, November 11th, 2009 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its nine months and third quarter results for 2009. Figures in this report have been prepared in accordance with Argentine GAAP as of September 30th, 2009 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (9M09 vs. 9M08):
Net Sales totaled Ps. 4,895.4 million, an increase of 19.1% from 9M08, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising and programming sales in Broadcasting and Programming, and higher sales in the Printing and Publishing segments.
Adjusted EBITDA (1) reached Ps. 1,467.0 million, an increase of 20.6% from 9M08, mainly driven by higher sales in the Cable and Internet access and Broadcasting and Programming segments.
Grupo Clarín's Adjusted EBITDA Margin (2) was 30.0% for 9M09, compared to 29.6% of 9M08.
Net Income totaled Ps. 194.3 million, a decrease of 29.8% from Ps. 276.9 million reported in 9M08.
FINANCIAL HIGHLIGHTS
|
(In millions of Ps.) |
9M09 |
9M08 |
% Ch. |
3Q09 |
2Q09 |
3Q08 |
QoQ |
YoY |
|
Net Sales |
4,895.4 |
4,110.8 |
19.1% |
1,668.3 |
1,717.4 |
1,506.0 |
(2.9%) |
10.8% |
|
Adjusted EBITDA (1) |
1,467.0 |
1,216.5 |
20.6% |
504.1 |
527.3 |
451.8 |
(4.4%) |
11.6% |
|
Adjusted EBITDA Margin (2) |
30.0% |
29.6% |
1.3% |
30.2% |
30.7% |
30.0% |
(1.6%) |
0.7% |
|
Net Income |
194.3 |
276.9 |
(29.8%) |
103.4 |
125.7 |
60.1 |
(17.8%) |
72.1% |
(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.
Investor Relations Contacts
In Buenos Aires: Alfredo Marin/ M. Julia Diaz Ardaya/ Alejandro Yu Grupo Clarín Email: [email protected]
Website: http://www.grupoclarin.com/ir
In London: Alex Money/ Lorna Ellen Temple Bar AdvisoryTel: +44 20 7002 1080 Email: [email protected]
In New York: Melanie Carpenter/ Peter Majeski i-advize Corporate Communications Tel: +1 212 406 3692 Email: [email protected]
OPERATING RESULTS
Net sales reached Ps. 4,895.4 million, an increase of 19.1% from Ps. 4,110.8 million in 9M08 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, higher advertising and programming sales in Broadcasting and Programming, and higher sales in the Printing and Publishing segments.
Following is a breakdown of Net Sales by business segment:
NET SALES
|
(In millions of Ps.) |
9M09 |
9M08 |
YoY |
3Q09 |
2Q09 |
3Q08 |
QoQ |
YoY |
|
Cable TV and Internet Access |
3,135.0 |
2,480.2 |
26.4% |
1,079.6 |
1,059.9 |
913.9 |
1.9% |
18.1% |
|
Printing and Publishing |
1,137.6 |
1,088.2 |
4.5% |
387.3 |
394.2 |
382.8 |
(1.7%) |
1.2% |
|
Broadcasting and Programming |
813.5 |
713.7 |
14.0% |
253.7 |
334.8 |
270.1 |
(24.2%) |
(6.1%) |
|
Digital Content and Others |
135.8 |
124.1 |
9.4% |
49.5 |
43.1 |
46.6 |
14.9% |
6.3% |
|
Subtotal |
5,222.0 |
4,406.1 |
18.5% |
1,770.1 |
1,832.0 |
1,613.4 |
(3.4%) |
9.7% |
|
Eliminations |
(326.5) |
(295.3) |
10.6% |
(101.8) |
(114.7) |
(107.4) |
(11.2%) |
(5.2%) |
|
Total |
4,895.4 |
4,110.8 |
19.1% |
1,668.3 |
1,717.4 |
1,506.0 |
(2.9%) |
10.8% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 2,421.9 million, an increase of 20.2% from Ps. 2,015.6 million reported for 9M08 due to higher costs in our business segments, mainly in Cable TV and Internet access due to subscriber growth, but also in Printing and Publishing and in Broadcasting and Programming.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 1,006.5 million, an increase of 14.5% from Ps. 878.7 million in 9M08. This increase was mainly due to higher costs in the Cable TV and Internet access and in the Printing and Publishing segments.
Adjusted EBITDA reached Ps. 1,467.0 million, an increase of 20.6% from Ps. 1,216.5 million reported for 9M08, driven by higher sales in the Cable and Internet access, Broadcasting and Programming and Printing and Publishing segments, and partially offset by increasing costs.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
|
(In millions of Ps.) |
9M09 |
9M08 |
YoY |
3Q09 |
2Q09 |
3Q08 |
QoQ |
YoY |
|
Cable TV and Internet access |
1,117.7 |
884.1 |
26.4% |
413.5 |
356.9 |
318.7 |
15.9% |
29.8% |
|
Printing and Publishing |
195.8 |
220.5 |
(11.2%) |
59.0 |
77.7 |
84.2 |
(24.0%) |
(29.9%) |
|
Broadcasting and Programming |
144.0 |
107.4 |
34.1% |
28.0 |
90.5 |
47.2 |
(69.1%) |
(40.8%) |
|
Digital Content and Others |
9.5 |
4.5 |
112.4% |
3.6 |
2.1 |
1.7 |
66.7% |
108.8% |
|
Subtotal |
1,467.0 |
1,216.5 |
20.6% |
504.1 |
527.3 |
451.8 |
(4.4%) |
11.6% |
|
Eliminations |
- |
- |
NA |
- |
- |
- |
NA |
NA |
|
Total |
1,467.0 |
1,216.5 |
20.6% |
504.1 |
527.3 |
451.8 |
(4.4%) |
11.6% |
Financial results net totaled Ps. (549.8) million compared to Ps. (235.2) million for 9M08, the increase was mainly due to the peso depreciation during 2009.
Equity in earnings from unconsolidated affiliates in 9M09 totaled Ps. 9.0 million, compared to Ps. 6.2 million for 9M08.
Other expenses, net reached Ps. (2.4) million, compared to Ps. (14.0) million in 9M08.
Income tax as of September 2009 reached Ps. (182.5) million, from Ps. (256.2) million in September 2008.
Net income totaled Ps. 194.3 million, a decrease of 29.8% from Ps. 276.9 million reported for 9M08, mainly as a consequence of the peso depreciation during these nine months, which went from 3.45 pesos per dollar at the end of 2008, to 3.84 pesos per dollar as of September 30th, 2009. The Total loss as a consequence of the exchange rate differences generated by our financial and other debt in foreign currency amounted to 297.0 million pesos.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 541.0 million in 9M09, a decrease of 16.2% from Ps. 645.6 million reported for 9M08. Out of the total CAPEX in 9M09, 83.3% was allocated to the Cable TV and Internet access segment, 10.7% to the Printing and Publishing segment and the remaining 5.9% to other activities. Our Capex in the Cable TV and Internet access segment contemplates network upgrades, digitalization, subscriber growth and further development of the triple play strategy.
Debt profile (1): Debt coverage ratio for the period ended September 30, 2009 was 1.3x, while Net Debt at the end of this period totaled Ps. 2,411.0 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. The figure does not include cash in reserve accounts in Cablevisión S.A.
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2009
|
(In millions of Ps.) |
Cable TV & Internet access |
Printing & Publishing |
Broadcasting & Programming |
Digital Content & Others |
Eliminations |
Total |
% |
|
Advertising |
36.6 |
594.4 |
416.4 |
21.3 |
(62.4) |
1,006.2 |
20.6% |
|
Circulation |
- |
358.7 |
- |
- |
- |
358.7 |
7.3% |
|
Printing |
- |
96.1 |
- |
- |
(21.1) |
75.0 |
1.5% |
|
Video Subscriptions |
2,414.8 |
- |
- |
- |
- |
2,414.8 |
49.3% |
|
Internet Subscriptions |
591.0 |
- |
- |
- |
(1.4) |
589.6 |
12.0% |
|
Programming |
- |
- |
305.2 |
- |
(133.8) |
171.3 |
3.5% |
|
Other Sales |
92.6 |
88.4 |
92.0 |
114.5 |
(107.9) |
279.7 |
5.7% |
|
Total Sales |
3,135.0 |
1,137.6 |
813.5 |
135.8 |
(326.5) |
4,895.4 |
100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2008
|
(In millions of Ps.) |
Cable TV & Internet access |
Printing & Publishing |
Broadcasting & Programming |
Digital Content & Others |
Eliminations |
Total |
% |
|
Advertising |
32.1 |
606.8 |
374.8 |
26.2 |
(57.6) |
982.2 |
23.9% |
|
Circulation |
- |
301.4 |
- |
- |
- |
301.4 |
7.3% |
|
Printing |
- |
99.7 |
- |
- |
(19.4) |
80.3 |
2.0% |
|
Video Subscriptions |
1,979.4 |
- |
- |
- |
(0.0) |
1,979.3 |
48.1% |
|
Internet Subscriptions |
451.1 |
- |
- |
- |
(1.0) |
450.1 |
10.9% |
|
Programming |
- |
- |
287.5 |
- |
(121.7) |
165.8 |
4.0% |
|
Other Sales |
17.6 |
80.3 |
51.4 |
97.9 |
(95.5) |
151.8 |
3.7% |
|
Total Sales |
2,480.2 |
1,088.2 |
713.7 |
124.1 |
(295.3) |
4,110.8 |
100.0% |
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 26.4% to Ps. 3,135.0 million for 9M09 compared to Ps. 2,480.2 million for 9M08. 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 3,288,983 as of September 2009, compared to the 3,154,697 reported for the same date in 9M08. Internet subscribers reached 975,479 in September 2009, compared to the 904,500 of September 2008.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 31.9% to Ps. 1,399.3 million for September 2009, compared to Ps. 1,060.6 million in September 2008. This was mainly derived from personnel 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 and transmission costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 15.4% to Ps. 618.0 million for 9M09, compared to Ps. 535.5 million reported in 9M08. This increase is driven by higher expenses for salaries, fees for services, wages and social security charges, and by higher taxes, duties and contributions.
Depreciation and Amortization
Depreciation and amortization expenses increased by 33.2% to Ps. 353.0 million for 9M09 from Ps. 265.0 million reported in 9M08.
PRINTING AND PUBLISHING
Net Sales
Net sales increased by 4.5% to Ps. 1,137.6 million in 9M09, compared to Ps. 1,088.2 million in 9M08. This was the result of higher sales in circulation, Papel Prensa and CIMECO, partially offset by lower sales in advertising and printing services.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 8.3% to Ps. 624.3 million in 9M09, compared to Ps. 576.5 million in 9M08. The increase was mainly the result of higher salaries and social security expenses.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 9.1% to Ps. 317.6 million in 9M09, compared to the Ps. 291.2 million reported for 9M08. The increase was primarily the result of an increase in salaries, social security charges, fees for services, and was partially offset by lower marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 6.0% to Ps. 47.2 million in 9M09 compared to Ps. 44.5 million in 9M08.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 14.0% to Ps. 813.5 million in 9M09, compared to Ps. 713.7 million in 9M08. The increase was primarily the result of higher advertising sales mainly due to elections-related spending 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 and, to a lesser extent, to additional sales from our car racing business and the Pol-ka consolidation.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 9.1% to Ps. 516.5 million in 9M09, compared to Ps. 473.4 million in 9M08. This is attributable to increases in salaries, and the consolidation of Pol-ka, partially offset by lower co-production and events costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 15.2% to Ps. 153.0 million in 9M09, compared to Ps. 132.8 million in 9M08. The increase was primarily the result of higher salaries, wages, social security expenses, marketing expenses and the consolidation of Pol-ka.
Depreciation and Amortization
Depreciation and amortization expenses increased by 102.1% to Ps. 32.8 million in 9M09 compared to Ps. 16.2 million reported in 9M08.
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.
In this period, net sales increased 9.4% to 135.8, and EBITDA resulted in Ps. 9.5 million in comparison with the Ps. 4.5 million reported for 9M08. The increase in EBITDA was mainly attributable to higher fees and lower severance payments.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
|
9M09 |
9M08 |
YoY |
3Q09 |
2Q09 |
3Q08 |
QoQ |
YoY |
|||||||||
|
Homes Passed (1) |
7,422.9 |
6,753.6 |
9.9% |
7,422.9 |
7,242.6 |
6,753.6 |
2.5% |
9.9% |
||||||||
|
Bidirectional Homes Passed |
55.4% |
47.0% |
17.9% |
55.4% |
54.5% |
47.0% |
1.6% |
17.9% |
||||||||
|
Cable TV |
||||||||||||||||
|
Total Subscribers (1) |
3,289.0 |
3,154.7 |
4.3% |
3,289.0 |
3,249.6 |
3,154.7 |
1.2% |
4.3% |
||||||||
|
Subscribers - Argentina |
3,213.2 |
2,978.2 |
7.9% |
3,213.2 |
3,061.0 |
2,978.2 |
5.0% |
7.9% |
||||||||
|
Subscribers - International |
191.4 |
176.5 |
8.5% |
191.4 |
188.7 |
176.5 |
1.5% |
8.5% |
||||||||
|
Uruguay |
93.7 |
86.5 |
8.4% |
93.7 |
93.1 |
86.5 |
0.7% |
8.4% |
||||||||
|
Paraguay |
97.7 |
90.0 |
8.5% |
97.7 |
95.6 |
90.0 |
2.2% |
8.5% |
||||||||
|
% over Homes Passed |
45.4% |
46.7% |
(2.8%) |
45.4% |
44.9% |
46.7% |
1.2% |
(2.8%) |
||||||||
|
Churn Rate % |
15.7% |
14.6% |
7.6% |
13.9% |
16.0% |
14.3% |
(13.3%) |
(3.3%) |
||||||||
|
Digital Video |
||||||||||||||||
|
Digital Ready Pay TV Subs |
2,121.1 |
2,024.6 |
4.8% |
2,121.1 |
2,096.1 |
2,024.6 |
1.2% |
4.8% |
||||||||
|
Total Digital Decoders |
474.2 |
364.3 |
30.2% |
474.2 |
471.9 |
364.3 |
0.5% |
30.2% |
||||||||
|
Argentina |
398.8 |
343.2 |
16.2% |
398.8 |
398.6 |
343.2 |
0.0% |
16.2% |
||||||||
|
International |
75.4 |
21.1 |
258.1% |
75.4 |
73.3 |
21.1 |
2.9% |
258.1% |
||||||||
|
Penetration over Digital Ready TV Subs |
22.4% |
18.0% |
24.3% |
22.4% |
22.5% |
18.0% |
(0.7%) |
24.3% |
||||||||
|
Internet Subscribers |
||||||||||||||||
|
Total Internet Subscribers (1) |
975.5 |
904.5 |
7.8% |
975.5 |
948.3 |
904.5 |
2.9% |
7.8% |
||||||||
|
Cablemodem(1) |
939.5 |
845.6 |
11.1% |
939.5 |
908.3 |
845.6 |
3.4% |
11.1% |
||||||||
|
ADSL(1) |
24.1 |
40.3 |
(40.2%) |
24.1 |
26.7 |
40.3 |
(9.8%) |
(40.2%) |
||||||||
|
Dial Up (1) |
11.9 |
18.6 |
(36.0%) |
11.9 |
13.2 |
18.6 |
(10.0%) |
(36.0%) |
||||||||
|
% over Bidirectional Homes Passed |
24.7% |
28.7% |
(13.9%) |
24.7% |
24.0% |
28.7% |
2.9% |
(13.9%) |
||||||||
|
Total ARPU(2) |
107.5 |
89.2 |
20.5% |
110.1 |
109.3 |
89.2 |
0.7% |
23.4% |
||||||||
(1) Figures in thousands
(2) Average Net Sales/ Average Pay TV Subscribers
PRINTING AND PUBLISHING
|
9M09 |
9M08 |
YoY |
3Q09 |
2Q09 |
3Q08 |
QoQ |
YoY |
|
|
Circulation (1) |
396.7 |
432.4 |
(8.3%) |
388.7 |
392.5 |
429.4 |
(1.0%) |
(9.5%) |
|
Circulation share % (2) |
46.9% |
48.1% |
(2.5%) |
46.5% |
47.1% |
48.7% |
(1.4%) |
(4.6%) |
|
Advertising share %(2) |
62.5% |
60.4% |
3.5% |
62.8% |
62.5% |
58.5% |
0.5% |
7.4% |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Company estimates.
BROADCASTING AND PROGRAMMING
|
9M09 |
9M08 |
YoY |
3Q09 |
2Q09 |
3Q08 |
QoQ |
YoY |
|
|
Advertising Share % (1) |
35.6% |
41.4% |
(14.0%) |
36.9% |
34.1% |
40.5% |
8.4% |
(8.8%) |
|
Audience Share % (2) |
||||||||
|
Prime Time |
39.7% |
44.9% |
(11.7%) |
39.5% |
41.5% |
42.0% |
(4.6%) |
(5.9%) |
|
Total Time |
29.8% |
34.4% |
(13.3%) |
29.0% |
30.9% |
32.2% |
(6.0%) |
(9.8%) |
(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. 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
|
9M09 |
9M08 |
YoY |
|
|
Page Views (1) |
504.1 |
506.3 |
(0.4%) |
|
Unique Visitors(1) |
17.3 |
12.7 |
36.2% |
(1)In millions. Average. Source IAB
DEBT AND LIQUIDITY
|
(In millions of Ps.) |
Sept. 09 |
Sept. 08 |
% change |
June 09 |
% change |
|
Short Term and Long Term Debt |
|||||
|
Current Financial Debt |
279.6 |
417.1 |
(33.0%) |
379.1 |
(26.2%) |
|
Financial loans |
36.4 |
122.1 |
(70.2%) |
149.1 |
(75.6%) |
|
Negotiable obligations |
115.6 |
106.6 |
8.5% |
136.2 |
(15.1%) |
|
Accrued interest |
57.3 |
49.5 |
15.8% |
31.1 |
84.3% |
|
Acquisition of equipment |
28.6 |
3.0 |
866.9% |
13.8 |
106.4% |
|
Sellers Financing Capital |
31.7 |
101.2 |
(68.6%) |
28.3 |
12.0% |
|
Sellers Financing accrued interest |
1.5 |
23.6 |
(93.8%) |
7.8 |
(81.3%) |
|
Bank overdraft |
8.6 |
11.1 |
(23.2%) |
12.7 |
(32.5%) |
|
Non-Current Financial Debt |
2,520.2 |
2,572.8 |
(2.0%) |
2,649.9 |
(4.9%) |
|
Financial loans |
110.6 |
56.2 |
96.8% |
35.5 |
212.1% |
|
Negotiable obligations |
2,170.4 |
1,933.5 |
12.3% |
2,127.9 |
2.0% |
|
Accrued interest |
1.1 |
1.7 |
(34.3%) |
1.1 |
4.6% |
|
Acquisition of equipment |
35.0 |
- |
NA |
35.3 |
(0.7%) |
|
Sellers Financing |
202.9 |
581.3 |
(65.1%) |
450.2 |
(54.9%) |
|
Total Financial Debt (A) |
2,799.8 |
2,989.9 |
(6.4%) |
3,029.0 |
(7.6%) |
|
Measurement at fair Value |
(17.5) |
(48.5) |
(63.9%) |
(30.7) |
(43.0%) |
|
Total Short Term and Long Term Debt |
2,782.3 |
2,941.4 |
(5.4%) |
2,998.3 |
(7.2%) |
|
Cash and Cash Equivalents (B)* |
388.8 |
427.5 |
(9.1%) |
435.7 |
(10.8%) |
|
Net Debt (A) - (B) |
2,411.0 |
2,562.4 |
(5.9%) |
2,593.3 |
(7.0%) |
|
Net Debt/Adjusted Ebitda (Last 12 Months) |
1.3x |
1.6x |
(21.1%) |
1.4x |
(9.6%) |
|
% USD Debt |
89.3% |
81.3% |
9.9% |
87.2% |
2.4% |
|
% Ar. Ps Debt |
10.7% |
18.7% |
(42.8%) |
12.8% |
(16.2%) |
* Does not include Reserve Accounts amounting to 95.6 MM ARS as of September 30th, 2009.
Negotiable obligations include Cablevisión USD 100.0 MM notes due October 2012; Cablevisión USD 235.1 MM notes due October 2015, Multicanal USD 100.4 MM notes due July 2013, Multicanal USD 80.3 MM notes due July 2016 and AGEA Ps. 187.5 MM notes due 2011.
Total Financial Debt(1) and Net Debt, decreased from Ps. 2,989.9 million to Ps. 2,799.8 million and decreased from Ps. 2,562.4 million to 2,411.0 Ps. million. This represents an increase of 2.6% in the Total Debt and a decrease of 0.8% in the Net Debt.
Debt coverage ratio (1) as of September 30, 2009 was 1.3x in the case of Net Debt and of 1.6x in terms of Total Financial Debt.
(1) Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. Debt Coverage Ratio is defined as Total Financial Debt minus Cash and Equivalents divided by Adjusted EBITDA (last 12 months). Does not include Reserve Accounts amounting to 95.6 MM ARS as of September 30th, 2009.
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) |
7.30 |
|
GCLA (LSE) Price per GDS (USD) |
3.95 |
|
Total Shares |
287,418,584 |
|
Total GDSs |
143,709,292 |
|
Market Value (USD MM) |
567.7 |
|
Closing Price |
November 10th, 2009 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its Nine Months and Third Quarter 2009 Results for 2009, on Wednesday, November 11, 2009
Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marin, Investor Relations Officer
Time: 12 pm Buenos Aires Time/3:00 pm London Time/10:00 am New York Time
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
There will be a 60 day 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: 75104650.
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on November 11, and archived in our Website after its conclusion.
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. It's Cable Television network is one of the largest in Latin America, with one of the largest broadband subscriber base in Argentina. Its flagship newspaper -Diario Clarín- is the highest circulation newspaper in Latin. 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 September 30, 2009 and December 31, 2008
In Argentine Pesos (Ps.)
|
September 30, 2009 |
December 31, 2008 |
||
|
ASSETS |
|||
|
CURRENT ASSETS |
|||
|
Cash and banks |
273,548,907 |
322,581,333 |
|
|
Short-term investments |
115,230,493 |
145,010,737 |
|
|
Trade receivables, net |
763,826,179 |
697,260,179 |
|
|
Other receivables, net |
225,758,062 |
215,667,085 |
|
|
Inventories |
242,201,043 |
253,755,031 |
|
|
Other assets |
107,518,657 |
46,158,483 |
|
|
Total current assets |
1,728,083,341 |
1,680,432,848 |
|
|
NON-CURRENT ASSETS |
|||
|
Trade receivables, net |
10,494,251 |
11,012,692 |
|
|
Other receivables, net |
105,605,877 |
160,657,175 |
|
|
Inventories |
49,267,559 |
43,830,839 |
|
|
Investment in unconsolidated affiliates |
39,323,197 |
41,309,683 |
|
|
Other investments |
6,777,207 |
6,851,750 |
|
|
Property, plant and equipment, net |
2,544,612,617 |
2,326,576,660 |
|
|
Intangible assets, net |
836,191,196 |
935,159,206 |
|
|
Other assets |
253,494 |
240,014 |
|
|
Subtotal |
3,592,525,398 |
3,525,638,019 |
|
|
Goodwill |
2,710,863,280 |
2,688,380,363 |
|
|
Total non-current assets |
6,303,388,678 |
6,214,018,382 |
|
|
Total assets |
8,031,472,019 |
7,894,451,230 |
|
|
LIABILITIES |
|||
|
CURRENT LIABILITIES |
|||
|
Accounts payable |
669,486,938 |
625,407,239 |
|
|
Long-term debt |
246,435,878 |
344,969,515 |
|
|
Salaries and Social Security payable |
312,732,302 |
275,146,137 |
|
|
Taxes payable |
380,547,360 |
412,173,464 |
|
|
Sellers financing |
33,193,359 |
63,337,460 |
|
|
Other liabilities |
103,191,723 |
80,679,449 |
|
|
Total current liabilities |
1,745,587,560 |
1,801,713,264 |
|
|
NON-CURRENT LIABILITIES |
|||
|
Accounts payable |
20,626,354 |
13,629,441 |
|
|
Long-term debt |
2,299,731,517 |
2,062,492,021 |
|
|
Salaries and Social Security payable |
150,699 |
185,706 |
|
|
Taxes payable |
88,957,324 |
13,004,671 |
|
|
Sellers financing |
202,943,784 |
551,170,669 |
|
|
Other liabilities |
255,668,699 |
323,393,965 |
|
|
Provisions |
108,517,962 |
126,048,109 |
|
|
Total non-current liabilities |
2,976,596,339 |
3,089,924,582 |
|
|
Total liabilities |
4,722,183,899 |
4,891,637,846 |
|
|
MINORITY INTEREST |
639,084,331 |
542,975,885 |
|
|
SHAREHOLDERS' EQUITY |
2,670,203,789 |
2,459,837,499 |
|
|
Total liabilities, minority interest and shareholders' equity |
8,031,472,019 |
7,894,451,230 |
CONSOLIDATED STATEMENTS OF INCOME
For the nine-month periods ended September 30, 2009 and 2008
In Argentine Pesos (Ps.)
|
September 30, 2009 |
September 30, 2008 |
||
|
Net sales |
4,895,440,203 |
4,110,817,389 |
|
|
Cost of sales (excluding depreciation and amortization) |
(2,421,921,869) |
(2,015,619,842) |
|
|
Subtotal |
2,473,518,334 |
2,095,197,547 |
|
|
Expenses (excluding depreciation and amortization) |
|||
|
Selling expenses |
(464,585,524) |
(416,612,020) |
|
|
Administrative expenses |
(541,901,225) |
(462,067,843) |
|
|
Expenses subtotal |
(1,006,486,749) |
(878,679,863) |
|
|
Depreciation of property, plant and equipment (1) |
(339,357,386) |
(236,452,066) |
|
|
Amortization of intangible and other assets |
(100,762,910) |
(93,773,653) |
|
|
Goodwill amortization |
189,758 |
189,758 |
|
|
Depreciation of other investments |
(111,902) |
(111,902) |
|
|
Depreciation and amortization subtotal |
(440,042,440) |
(330,147,863) |
|
|
Financing and holding results |
|||
|
Generated by assets |
|||
|
Interest |
19,340,301 |
14,590,975 |
|
|
Other taxes and expenses |
(72,642,015) |
(62,953,432) |
|
|
Impairment of inventories and materials |
(2,499,963) |
(882,565) |
|
|
Exchange differences |
24,641,007 |
(3,700,660) |
|
|
Holding gains on inventories |
6,103,602 |
21,603,855 |
|
|
Holding (gains) on derivatives |
(6,354,588) |
(703,214) |
|
|
Effect of financial discounts on assets and other |
(1,661,289) |
(1,449,404) |
|
|
Generated by liabilities |
|||
|
Interest |
(246,165,013) |
(174,435,047) |
|
|
Exchange differences |
(297,018,638) |
106,308 |
|
|
Effect of financial discounts on liabilities |
32,127,971 |
(27,424,870) |
|
|
CER restatement |
(660,757) |
(1,126,319) |
|
|
Holding (gains) on derivatives |
(3,598,000) |
2,841,208 |
|
|
Other |
(1,365,661) |
(1,638,964) |
|
|
Equity in earnings from unconsolidated affiliates, net |
8,989,856 |
6,153,342 |
|
|
Other expenses, net |
(2,405,218) |
(14,004,972) |
|
|
Income before income tax, tax on assets and minority interest |
483,820,740 |
643,346,062 |
|
|
Income tax and tax on assets |
(182,484,567) |
(256,163,689) |
|
|
Minority interest |
(107,065,662) |
(110,279,694) |
|
|
Income for the period |
194,270,511 |
276,902,679 |
(1) Chargeable to:
|
Cost of sales |
(307,667,779) |
(214,554,564) |
|
Selling expenses |
(15,148,071) |
(12,473,761) |
|
Administrative expenses |
(16,541,536) |
(9,423,741) |
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30th, 2009, available at http://www.grupoclarin.com/ir
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the nine-month periods ended September 30, 2009 and 2008
In Argentine Pesos (Ps.)
|
September 30, 2009 |
September 30, 2008 |
|||||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
||||||
|
Income for the period |
194,270,511 |
276,902,679 |
||||
|
Income tax and tax on assets |
182,484,567 |
256,163,689 |
||||
|
Accrued interest |
226,824,712 |
159,844,072 |
||||
|
Adjustments to reconcile net income for the period to cash provided by operating activities: |
||||||
|
Depreciation of property, plant and equipment |
339,357,386 |
236,452,066 |
||||
|
Amortization of intangible and other assets |
100,762,910 |
93,773,653 |
||||
|
Goodwill amortization |
(189,758) |
(189,758) |
||||
|
Depreciation of other investments |
111,902 |
111,902 |
||||
|
Allowance for doubtful accounts |
35,654,669 |
25,868,722 |
||||
|
Provision for contingencies |
23,628,144 |
20,478,897 |
||||
|
Allowance for impairment in value of inventories and materials |
2,499,963 |
882,565 |
||||
|
Exchange difference and other financial results |
246,553,350 |
22,422,229 |
||||
|
Equity in earnings from unconsolidated affiliates, net |
(8,989,856) |
(6,153,342) |
||||
|
Minority interest |
107,065,662 |
110,279,694 |
||||
|
Holding (gains) on derivatives |
9,952,588 |
(2,137,994) |
||||
|
Holding gains on inventories |
(6,103,602) |
(21,603,855) |
||||
|
(Gains) / Losses on sale of property, plant and equipment |
(9,515,060) |
(1,052,718) |
||||
|
Changes in assets and liabilities: |
||||||
|
Trade receivables |
(124,185,138) |
(38,323,768) |
||||
|
Other receivables |
(18,213,415) |
34,987,658 |
||||
|
Inventories |
10,846,276 |
(54,781,034) |
||||
|
Other assets |
(1,146,358) |
(1,541,163) |
||||
|
Accounts payable |
37,762,632 |
57,833,999 |
||||
|
Salaries and Social Security payable |
35,979,972 |
32,342,274 |
||||
|
Taxes payable |
(89,566,763) |
(71,494,128) |
||||
|
Other liabilities |
8,168,665 |
15,802,261 |
||||
|
Provisions |
(21,871,015) |
(40,603,697) |
||||
|
Income tax and tax on assets payments |
(87,836,677) |
(109,665,701) |
||||
|
Cash provided by operating activities |
1,194,306,267 |
996,599,202 |
||||
|
CASH USED IN INVESTMENT ACTIVITIES |
||||||
|
Acquisition of property, plant and equipment, net |
(541,009,979) |
(645,765,598) |
||||
|
Acquisition of intangible assets |
(6,717,630) |
(5,355,266) |
||||
|
Payment for the acquisition of subsidiaries, net of cash acquired |
(2,009,733) |
(212,277,766) |
||||
|
Proceeds from sale of property, plant and equipment |
19,988,031 |
7,887,156 |
||||
|
Certificates of deposit |
(33,000,000) |
- |
||||
|
Collection of loans |
12,500,000 |
- |
||||
|
Collection of interest |
1,071,061 |
5,727,859 |
||||
|
Collection of dividends |
4,524,023 |
4,784,691 |
||||
|
Capital contributions in subsidiaries |
- |
(50,000) |
||||
|
Cash used in investment activities |
(544,654,227) |
(845,048,924) |
||||
CONSOLIDATED STATEMENTS OF CASH FLOWs
For the nine-month periods ended September 30, 2009 and 2008
In Argentine Pesos (Ps.)
|
September 30, 2009 |
September 30, 2008 |
||||
|
CASH USED IN FINANCING ACTIVITIES |
|||||
|
Loans obtained |
120,080,473 |
68,240,748 |
|||
|
Payment of loans |
(229,411,279) |
(106,732,520) |
|||
|
Payment of interest |
(120,432,802) |
(134,970,347) |
|||
|
Net collections of derivatives |
17,350,249 |
(429,417) |
|||
|
Payment of sellers financing |
(400,844,527) |
(34,190,116) |
|||
|
Escrow funds |
(729,271) |
- |
|||
|
Reserve account |
(150,129,409) |
(30,006,794) |
|||
|
Restricted funds |
(2,500,000) |
- |
|||
|
Payments to minority shareholders |
(22,083,167) |
(11,999,439) |
|||
|
Payment of dividends |
- |
(48,000,000) |
|||
|
Net reimbursement of expenses related to the initial public offering |
- |
1,484,015 |
|||
|
Cash used in financing activities |
(788,699,733) |
(296,603,870) |
|||
|
FINANCING AND HOLDING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS |
24,723,516 |
6,167,283 |
|||
|
Net decrease in cash flow |
(114,324,177) |
(138,886,309) |
|||
|
Cash and cash equivalents at the beginning of the year |
467,592,070 |
565,460,502 |
|||
|
Cash and cash equivalents at period end (1) |
353,267,893 |
426,574,193 |
|||
(1) Includes:
|
Cash and banks
|
273,548,907
|
|
213,399,823
|
|
Investments with maturities of less than three months
|
79,718,986
|
|
213,174,370
|
Related Shares:
GCLA.L