12th Aug 2013 13:00
Grupo Clarín announces its
Results for the First Half (1H13) and Second Quarter of 2013 (2Q13)
Buenos Aires, Argentina, August 12th, 2013 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its first half and second quarter results for 2013. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of June 30th, 2013 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (1H13 vs. 1H12):
§ Net Sales totaled Ps. 6,381.1 million, an increase of 22.4% from 1H12, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming segment.
§ Adjusted EBITDA (1) reached Ps. 1,412.6 million, an increase of 6.4% from 1H12, mainly driven by higher sales in the Cable and Internet access segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) for 1H13 was 22.1%, compared to 25.5% in 1H12.
§ Net Income totaled Ps. 198.8 million, a decrease of 50.3% from the Ps. 400.2 million reported in 1H12, while Net Income attributable to Equity Shareholders decreased 63.0% to Ps 83.7 million from the Ps. 226.4 million reported in 1H12.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 1H13 | 1H12 | % Ch. | 2Q13 | 1Q13 | 2Q12 | QoQ | YoY |
Net Sales | 6,381.1 | 5,211.8 | 22.4% | 3,338.6 | 3,042.5 | 2,725.3 | 9.7% | 22.5% |
Adjusted EBITDA (1) | 1,412.6 | 1,327.6 | 6.4% | 718.1 | 694.4 | 706.8 | 3.4% | 1.6% |
Adjusted EBITDA Margin (2) | 22.1% | 25.5% | (13.1%) | 21.5% | 22.8% | 25.9% | (5.8%) | (17.1%) |
Net Income(3) | 198.8 | 400.2 | (50.3%) | 103.0 | 95.9 | 193.9 | 7.4% | (46.9%) |
Attributable to: | ||||||||
Equity Shareholders | 83.7 | 226.4 | (63.0%) | 48.4 | 35.3 | 107.7 | 36.8% | (55.1%) |
Non-Controlling Interests | 115.1 | 173.8 | (33.8%) | 54.6 | 60.5 | 86.2 | (9.8%) | (36.7%) |
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies on the basis of operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
(3) We define Net Income as Income for the period.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Alfredo Marín Agustín Medina Manson | Alex Money Clare Gallagher | Melanie Carpenter
|
Grupo Clarín S.A. | Jasford IR | I-advize Corporate Communications |
Tel: +54 11 4309 7215 | Tel: +44 20 3289 5300 | Tel: +1 212 406 3692 |
Email: [email protected] | E-mail: [email protected] | E-mail: [email protected]
|
OPERATING RESULTS
Net sales reached Ps.6,381.1 million, an increase of 22.4% from Ps. 5,211.8 million in 1H12 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in the Broadcasting and Programming segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 1H13 | 1H12 | YoY | 2Q13 | 1Q13 | 2Q12 | QoQ | YoY |
Cable TV and Internet Access | 4,477.3 | 3,564.2 | 25.6% | 2,296.8 | 2,180.4 | 1,825.0 | 5.3% | 25.9% |
Printing and Publishing | 1,238.3 | 1,124.4 | 10.1% | 649.1 | 589.2 | 577.8 | 10.2% | 12.3% |
Broadcasting and Programming | 700.6 | 563.8 | 24.3% | 409.6 | 291.0 | 344.9 | 40.7% | 18.7% |
Digital Content and Others | 228.4 | 174.1 | 31.2% | 118.4 | 110.0 | 83.3 | 7.7% | 42.2% |
Subtotal | 6,644.5 | 5,426.5 | 22.4% | 3,473.9 | 3,170.6 | 2,831.0 | 9.6% | 22.7% |
Eliminations | (263.4) | (214.7) | 22.7% | (135.3) | (128.1) | (105.6) | 5.6% | 28.1% |
Total | 6,381.1 | 5,211.8 | 22.4% | 3,338.6 | 3,042.5 | 2,725.3 | 9.7% | 22.5% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 3,279.2 million, an increase of 24.5% from Ps. 2,633.0 million reported for 1H12 due to higher costs in our business segments, mainly in Cable TV and Internet access and in Printing and Publishing.
Selling and Administrative Expenses(Excluding Depreciation and Amortization) reached Ps. 1,689.4 million, an increase of 35.0% from Ps. 1,251.2 million in 1H12. This increase was mainly due to higher costs in the Cable TV and Internet access and Printing and Publishing segments.
Adjusted EBITDA reached Ps.1,412.6 million, an increase of 6.4% from Ps. 1,327.6 million reported for1H12, driven by higher sales in the Cable TV and Internet access and Broadcasting and Programming segments, though partially offset by a lower EBITDA in the Printing and Publishing segment.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 1H13 | 1H12 | YoY | 2Q13 | 1Q13 | 2Q12 | QoQ | YoY |
Cable TV and Internet access | 1,338.3 | 1,212.1 | 10.4% | 649.9 | 688.4 | 631.3 | (5.6%) | 2.9% |
Printing and Publishing | 13.1 | 111.4 | (88.2%) | 8.6 | 4.5 | 54.0 | 92.8% | (84.0%) |
Broadcasting and Programming | 52.2 | (3.3) | 1,675.0% | 57.2 | (5.0) | 23.6 | 1,239.2% | 142.7% |
Digital Content and Others | 9.0 | 7.4 | 22.0% | 2.4 | 6.6 | (2.1) | (63.0%) | 218.4% |
Subtotal | 1,412.6 | 1,327.6 | 6.4% | 718.1 | 694.4 | 706.8 | 3.4% | 1.6% |
Eliminations | - | - | NA | - | - | - | NA | NA |
Total | 1,412.6 | 1,327.6 | 6.4% | 718.1 | 694.4 | 706.8 | 3.4% | 1.6% |
Financial results net totaled Ps. (566.1) million compared to Ps. (347.4)million for 1H12. The increase was mainly due to higher interest expenses and peso depreciation during 1H13, which went from Ps 4.92 per dollar at the end of December 2012, to Ps 5.39 per dollar as of June 30th, 2013.
Equity in earnings from unconsolidated affiliates in 1H13 totaled Ps. 7.4 million, compared to Ps. 15.8 million for 1H12.
Other Income (expenses), net reached Ps. 3.0 million, compared to Ps.3.8 million in 1H12.
Income tax as of June 2013 reached Ps. (125.0) million, from Ps. (209.2) million in June 2012.
Income from Discontinued Operations, reached Ps. 36.3 million in 1H12.
Net income totaled Ps. 198.8 million, a decrease of 50.3% from Ps. 400.2 million reported for 1H12. This was mainly a consequence of higher EBITDA in the Cable TV and Internet access and Broadcasting and Programming segments, and was partially offset by a lower EBITDA in the Printing and Publishing segment and by the peso depreciation. The Equity Shareholders Net Income amounted to Ps.83.7 million, a decrease of 63.0% compared with June 2012.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 796.0 million in 1H13, an increase of 48.5% from Ps. 535.9 million reported for 1H12. Out of the total CAPEX in 1H13, 96% was allocated to the Cable TV and Internet access segment, 2% to the Printing and Publishing segment and the remaining 2% to other activities. Capex in the Cable TV and Internet Access segment pertains to subscriber growth, network upgrades and digitalization.
Debt profile (1): Debt coverage ratio for the period ended June 30th, 2013 was 1.19x and the Net Debt at the end of this period totaled Ps. 2,266.4 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2013
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 31.7 | 542.0 | 507.9 | 27.3 | (45.8) | 1,063.1 | 16.7% |
Circulation | - | 533.8 | - | - | - | 533.8 | 8.4% |
Printing | - | 112.7 | - | - | (24.0) | 88.7 | 1.4% |
Video Subscriptions | 3,407.9 | - | - | - | - | 3,407.9 | 53.4% |
Internet Subscriptions | 896.6 | - | - | - | (3.1) | 893.5 | 14.0% |
Programming | - | - | 147.6 | - | (39.6) | 108.0 | 1.7% |
Other Sales
| 141.0 | 49.8 | 45.1 | 201.1 | (150.9) | 286.1 | 4.5% |
Total Sales | 4,477.3 | 1,238.3 | 700.6 | 228.4 | (263.4) | 6,381.1 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2012
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 22.1 | 563.9 | 412.9 | 24.7 | (48.3) | 975.3 | 18.7% |
Circulation | - | 442.7 | - | - | 0.5 | 443.2 | 8.5% |
Printing | - | 75.1 | - | - | (20.7) | 54.4 | 1.0% |
Video Subscriptions | 2,715.9 | - | - | - | - | 2,715.9 | 52.1% |
Internet Subscriptions | 723.5 | - | - | - | (2.8) | 720.7 | 13.8% |
Programming | - | - | 106.8 | - | (33.4) | 73.4 | 1.4% |
Other Sales
| 102.8 | 42.7 | 44.2 | 149.4 | (110.0) | 229.0 | 4.4% |
Total Sales | 3,564.2 | 1,124.4 | 563.8 | 174.1 | (214.7) | 5,211.8 | 100.0% |
RESULTS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 25.6% to Ps.4,477.3 million for 1H13 compared to Ps. 3,564.2 million for 1H12. The increase is mostly attributable to an increase in subscription charges registered during the last twelve months, and also reflects the growth in Cable, Broadband and Digital subscribers. Total Consolidated Cable TV basic subscribers reached 3,452,029 as of June 2013, compared to the 3,393,634(*) reported for the same date in 1H12. Internet subscribers reached 1,616,425 in June 2013, compared to the 1,420,154(*) of June 2012.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) for June 2013 increased by 30.2% to Ps. 2,000.9 million, compared to Ps. 1,536.8 million in June 2012. This was mainly due to higher salaries, programming costs and network expenses and fixed assets maintenance costs, though was partially offset by a lower cost of the goods sold.
(*) Total Consolidated Cable TV and Internet subscribers do not include those from discontinued operations in Paraguay (119,707 Cable TV subs and 12,672 internet subscribers, registered for the period ended in June 2012).
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 39.6% to Ps. 1,138.1 million for 1H13, compared to Ps. 815.3 million reported in 1H12. This increase was driven by higher salaries, taxes, duties and contributions, fees for services and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 29.5% to Ps. 483.8 million for 1H13 from Ps. 373.5 million reported in 1H12.
PRINTING AND PUBLISHING
Net Sales
The 10.1% increase of Net Sales to Ps. 1,238.3 million in 1H13 was the result of higher sales in circulation and printing services revenues, although it was partially offset by lower advertising revenues.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 19.3% to Ps. 791.1 million in 1H13, compared to Ps. 663.4 million in 1H12. The increase was mainly the result of higher salaries, printing costs and cost of the goods sold.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 24.1% to Ps. 434.1 million in 1H13, compared to the Ps. 349.7 million reported for 1H12. This was primarily the result of higher salaries, fees for services, distributing costs and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 17.5% to Ps. 25.2 million in 1H13 compared to Ps. 30.5 million in 1H12.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 24.3% to Ps. 700.6 million in 1H13, compared to Ps. 563.8 million in 1H12. The increase was primarily the result of higher advertising sales related to Canal Trece and Radio Mitre, programming content and our racing car business.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 10.6% to Ps. 483.8 million in 1H13, compared to Ps. 437.4 million in 1H12. This is attributable mainly to higher salaries, fees to artists and , taxes, duties and contributions, though was partially offset by lower production and programming costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 27.0% to Ps. 164.7 million in 1H13, compared to Ps. 129.8 million in 1H12. The increase was primarily the result of higher salaries, the allowances for contingencies and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 2.9% to Ps. 18.2 million in 1H13 compared to Ps. 17.7 million reported in 1H12.
DIGITAL CONTENT AND OTHERS
Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our subsidiary GC Gestión Compartida S.A. to third parties as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content and the organization of trade fairs and exhibitions. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers.
In this period, net sales increased 31.2% to 228.4, from Ps. 174.1 million reported in 1H12, due to higher fees at Grupo Clarín, higher sales in digital content, Gestión Compartida and trade fairs and exhibitions business. EBITDA resulted in Ps. 9.0 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
1H13 | 1H12 | YoY | 2Q13 | 1Q13 | 2Q12 | QoQ | YoY | |||||||||
Homes Passed (1) | 7,455.8 | 7,592.4 | (1.8%) | 7,455.8 | 7,457.8 | 7,592.4 | (0.0%) | (1.8%) |
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Bidirectional Homes Passed | 64.5% | 63.3% | 1.9% | 64.5% | 64.2% | 63.3% | 0.4% | 1.9% |
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Cable TV |
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Total Consolidated Subscribers (1)(3) | 3,452.0 | 3,513.3 | (1.7%) | 3,452.0 | 3,407.4 | 3,513.3 | 1.3% | (1.7%) |
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Subscribers - Argentina | 3,329.9 | 3,279.6 | 1.5% | 3,329.9 | 3,289.1 | 3,279.6 | 1.2% | 1.5% |
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Subscribers - International | 122.1 | 233.7 | (47.7%) | 122.1 | 118.3 | 233.7 | 3.2% | (47.7%) |
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Uruguay | 122.1 | 114.0 | 7.1% | 122.1 | 118.3 | 114.0 | 3.2% | 7.1% |
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Paraguay | - | 119.7 | (100.0%) | - | - | 119.7 | NA | (100.0%) |
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% over Homes Passed | 46.3% | 46.3% | 0.1% | 46.3% | 45.7% | 46.3% | 1.3% | 0.1% |
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Total Equity Subscribers(5) | 3,574.3 | 3,593.5 | (0.5%) | 3,574.3 | 3,526.8 | 3,593.5 | 1.3% | (0.5%) |
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Churn Rate % | 15.5% | 15.2% | 2.1% | 14.1% | 16.8% | 14.2% | (16.0%) | (0.6%) |
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Digital Video (1)(3) |
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Digital Ready Pay TV Subs | 2,727.7 | 2,789.6 | (2.2%) | 2,727.7 | 2,689.8 | 2,789.6 | 1.4% | (2.2%) |
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Total Digital Decoders | 1,199.3 | 1,121.6 | 6.9% | 1,199.3 | 1,140.1 | 1,121.6 | 5.2% | 6.9% |
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Argentina | 1,068.3 | 894.5 | 19.4% | 1,068.3 | 1,015.7 | 894.5 | 5.2% | 19.4% |
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International | 130.9 | 227.1 | (42.3%) | 130.9 | 124.4 | 227.1 | 5.3% | (42.3%) |
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Penetration over Digital Ready TV Subs | 44.0% | 40.2% | 9.3% | 44.0% | 42.4% | 40.2% | 3.7% | 9.3% |
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Internet Subscribers(1)(3)(4) |
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Total Internet Subscribers (1)(4) | 1,616.4 | 1,432.8 | 12.8% | 1,616.4 | 1,543.2 | 1,432.8 | 4.7% | 12.8% |
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Cablemodem(1) | 1,603.0 | 1,415.9 | 13.2% | 1,603.0 | 1,529.0 | 1,415.9 | 4.8% | 13.2% |
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ADSL(1) | 7.29 | 9.8 | (25.4%) | 7.3 | 7.8 | 9.8 | (6.6%) | (25.4%) |
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Dial Up (1) | 6.1 | 7.1 | (13.7%) | 6.1 | 6.4 | 7.1 | (3.4%) | (13.7%) |
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% over Bidirectional Homes Passed | 33.6% | 29.8% | 12.8% | 33.6% | 32.2% | 29.8% | 4.3% | 12.8% |
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Total ARPU(2) | 217.7 | 175.5 | 24.0% | 223.2 | 213.4 | 179.9 | 4.6% | 24.1% |
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(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers (does not include subscribers from discontinued operations in Paraguay).
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total Internet Subscribers includes those from discontinued operations in Paraguay (12,672 subs for period 1H12)
(5) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
1H13 | 1H12 | YoY | 2Q13 | 1Q13 | 2Q12 | QoQ | YoY | |
Circulation (1) | 304.9 | 318.2 | (4.2%) | 305.3 | 304.4 | 319.6 | 0.3% | (4.5%) |
Circulation share % (2) | 38.8% | 38.9% | (0.3%) | 38.8% | 38.7% | 38.6% | 0.3% | 0.6% |
Advertising share %(3) | 51.9% | 51.0% | 1.7% | 51.5% | 52.5% | 50.3% | (2.0%) | 2.3% |
(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. Source: AGEA and IVC.
(3) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: Monitor de Medios Publicitarios S.A.
BROADCASTING AND PROGRAMMING
1H13 | 1H12 | YoY | 2Q13 | 1Q13 | 2Q12 | QoQ | YoY | |
Advertising Share % (1) | 31.6% | 34.9% | (9.4%) | 31.3% | 31.9% | 35.1% | (1.9%) | (10.7%) |
Audience Share % (2) | ||||||||
Prime Time | 34.9% | 37.0% | (5.7%) | 33.9% | 36.0% | 38.0% | (5.7%) | (10.7%) |
Total Time | 27.8% | 30.0% | (7.4%) | 27.7% | 27.8% | 30.3% | (0.4%) | (8.5%) |
(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
1H13 | 1H12 | YoY | |
Page Views (1) | 696.8 | 616.9 | 13.0% |
Unique Visitors(1) | 36.6 | 27.6 | 32.5% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | June 13 | June 12 | % Change | March 13 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 962.2 | 669.7 | 43.7% | 840.1 | 14.5% |
Financial loans | 41.7 | 191.3 | (78.2%) | 112.6 | (63.0%) |
Negotiable obligations | 652.1 | 271.8 | 139.9% | 552.9 | 18.0% |
Accrued interest | 98.2 | 89.6 | 9.7% | 42.1 | 133.3% |
Acquisition of equipment | 86.5 | 49.8 | 73.7% | 74.6 | 15.9% |
Sellers Financing Capital | 1.6 | 2.0 | (19.2%) | 1.4 | 12.6% |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 6.3 | 16.2 | (61.0%) | 15.1 | (58.4%) |
Related Parties accrued interest | 0.6 | 0.3 | 81.4% | 0.4 | 41.5% |
Bank overdraft | 75.2 | 48.8 | 54.1% | 40.9 | 83.9% |
Non-Current Financial Debt | 2,465.9 | 2,722.8 | (9.4%) | 2,408.7 | 2.4% |
Financial loans | 30.1 | 46.8 | (35.7%) | 25.5 | 17.8% |
Negotiable obligations | 2,330.2 | 2,577.2 | (9.6%) | 2,256.2 | 3.3% |
Accrued interest | - | 0.1 | (100.0%) | - | NA |
Acquisition of equipment | 99.5 | 92.6 | 7.4% | 120.7 | (17.6%) |
Sellers Financing Capital | - | 0.3 | (100.0%) | 0.3 | (100.0%) |
Sellers Financing accrued interest | - | - | NA | - | NA |
Related Parties Capital | 4.2 | 4.2 | - | 4.2 | - |
Related accrued interest | 1.9 | 1.5 | 22.8% | 1.7 | 9.3% |
Bank overdraft | - | - | NA | - | NA |
Total Financial Debt (A) | 3,428.1 | 3,392.4 | 1.1% | 3,248.9 | 5.5% |
Measurement at fair Value | (44.3) | (51.5) | 14.1% | (47.3) | 6.5% |
Total Short Term and Long Term Debt | 3,383.8 | 3,340.9 | 1.3% | 3,201.5 | 5.7% |
Cash and Cash Equivalents (B) | 1,161.7 | 905.3 | 28.3% | 1,308.8 | (11.2%) |
Net Debt (A) - (B) | 2,266.4 | 2,487.1 | (8.9%) | 1,940.0 | 16.8% |
Net Debt/Adjusted Ebitda (1) | 0.79x | 0.88x | (10.3%) | 0.70x | 13.0% |
% USD Debt | 96.5% | 94.9% | 1.7% | 96.8% | (0.3%) |
% Ar. Ps Debt | 3.5% | 5.1% | (31.6%) | 3.2% | 10.3% |
Total Financial Debt(1) increased from Ps. 3,392.4 million to Ps. 3,428.1 million and Net Debt decreased from Ps. 2,487.1 million to Ps. 2,266.4 million. This represents an increase of 1.1% in the Total Debt and a decrease of 8.9% in the Net Debt.
Debt coverage ratio (1) as of June 30th, 2013 was 0.79x in the case of Net Debt and of 1.19x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
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)
| 9.40 |
GCLA (LSE) Price per GDS (USD) | 2.50 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 359.3 |
Closing Price | August 9th, 2013 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its Second Quarter Results for 2013, on Monday, August 12th, 2013.
Time: 12:00 pm Buenos Aires Time/4:00 pm London Time/11:00 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
A replay of the conference call will be available one hour after its conclusion, and will remain available for two weeks. To access the replay, please dial from the within the U.S. +1-877-919-4059, or from anywhere outside the U.S. +1-334-323-7226. The passcode is: 68199025.
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on August 12th, and archived in our Website after its conclusion.
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in the cable television and Internet access, printing and publishing, and broadcasting and programming markets. Its cable television network is one of the largest in Latin America in term of subscribers, and is a leading broadband provider in Argentina. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers in Latin America. Grupo Clarín is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age.
Disclaimer
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Grupo Clarín does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2013 AND 2012, AND FOR THE THREE-MONTH PERIODS BEGINNING ON APRIL 1 AND ENDED ON JUNE 30, 2013 AND 2012
In Argentine Pesos (Ps.)
June 30, 2013 | June 30, 2012 | April 1, 2013 through June 30, 2013 | April 1, 2012 through June 30, 2012 | |||||
Continuing Operations | ||||||||
Revenues | 6,381,129,060 | 5,211,797,279 | 3,338,622,584 | 2,725,314,898 | ||||
Cost of Sales (1) | (3,768,924,353) | (3,020,942,034) | (1,981,103,503) | (1,565,981,788) | ||||
Subtotal - Gross Profit | 2,612,204,707 | 2,190,855,245 | 1,357,519,081 | 1,159,333,110 | ||||
Selling Expenses (1) | (850,995,097) | (604,357,950) | (450,757,239) | (312,720,685) | ||||
Administrative Expenses (1) | (881,658,482) | (685,571,607) | (462,699,444) | (367,221,084) | ||||
Other Income and Expense, net | 2,990,180 | 3,758,258 | 695,914 | 5,790,756 | ||||
Financial Costs | (493,108,564) | (322,617,238) | (230,483,061) | (188,382,920) | ||||
Other Financial Results, net | (72,960,514) | (24,766,983) | (66,536,142) | 2,446,643 | ||||
Financial Results | (566,069,078) | (347,384,221) | (297,019,203) | (185,936,277) | ||||
Equity in Earnings from Affiliates and Subsidiaries | 7,420,344 | 15,808,443 | 2,912,507 | 2,304,843 | ||||
Income before Income Tax and Tax on Assets | 323,892,574 | 573,108,168 | 150,651,616 | 301,550,663 | ||||
Income Tax and Tax on Assets | (125,049,044) | (209,208,214) | (47,699,597) | (122,831,050) | ||||
Income for the period from continuing operations | 198,843,530 | 363,899,954 | 102,952,019 | 178,719,613 | ||||
Discontinued Operations | ||||||||
Income/Loss from Discontinued Operations | - | 36,289,242 | - | 15,170,995 | ||||
Income for the period | 198,843,530 | 400,189,196 | 102,952,019 | 193,890,608 | ||||
Other Comprehensive Income | ||||||||
Items which may be reclassified to net income | ||||||||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 58,050,515 | 31,755,323 | (79,160,272) | 23,087,027 | ||||
Variation in Translation Differences of Foreign Operations from Discontinued Operations | - | 646,011 | - | (283,551) | ||||
Other Comprehensive Income for the period | 58,050,515 | 32,401,334 | (79,160,272) | 22,803,476 | ||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 256,894,045 | 432,590,530 | 23,791,747 | 216,694,084 | ||||
Profit Attributable to: | ||||||||
Shareholders of the Parent Company | 83,696,435 | 226,352,900 | 48,353,853 | 107,669,447 | ||||
Non-Controlling Interests | 115,147,095 | 173,836,296 | 54,598,166 | 86,221,161 | ||||
Total Comprehensive Income Attributable to: | ||||||||
Shareholders of the Parent Company | 114,295,453 | 242,199,070 | 7,655,040 | 118,514,748 | ||||
Non-Controlling Interests | 142,598,592 | 190,391,460 | 16,136,707 | 98,179,336 | ||||
Basic and Diluted Earnings per Share from Continuing Operations | 0.29 | 0.73 | 0.17 | 0.35 | ||||
Basic and Diluted Earnings per Share from Discontinued Operations | - | 0.06 | - | 0.02 | ||||
Basic and Diluted Earnings per Share - Total | 0.29 | 0.79 | 0.17 | 0.37 | ||||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 533,017,996 and Ps. 426,648,999 for the six-month periods ended June 30, 2013 and 2012, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of June 30th, 2013, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012
In Argentine Pesos (Ps.)
June 30, 2013 | December 31, 2012 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 4,493,362,857 | 4,137,741,603 | |
Intangible Assets | 504,190,627 | 554,781,161 | |
Goodwill | 2,813,815,822 | 2,797,020,692 | |
Deferred Tax Assets | 92,358,158 | 55,403,579 | |
Investment in Affiliates and Subsidiaries | 363,698,653 | 389,212,589 | |
Other Investments | 113,890,009 | 99,597,125 | |
Inventories | 20,089,699 | 13,929,652 | |
Other Assets | 1,671,061 | 1,896,642 | |
Other Receivables | 115,023,336 | 128,770,432 | |
Trade Receivables | 113,731,306 | 125,285,473 | |
Total Non-Current Assets | 8,631,831,528 | 8,303,638,948 | |
CURRENT ASSETS | |||
Inventories | 345,154,380 | 342,773,949 | |
Other Assets | 7,461,957 | 7,362,757 | |
Other Receivables | 545,542,435 | 402,265,693 | |
Trade Receivables | 1,741,892,920 | 1,638,550,031 | |
Other Investments | 439,432,118 | 685,632,591 | |
Cash and Banks | 727,480,828 | 623,395,314 | |
Total Current Assets | 3,806,964,638 | 3,699,980,335 | |
Total Assets | 12,438,796,166 | 12,003,619,283 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | 4,204,325,565 | 4,090,030,112 | |
Attributable to Non-Controlling Interests | 1,408,310,300 | 1,374,568,933 | |
Total Shareholders' Equity | 5,612,635,865 | 5,464,599,045 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Accruals and Other | 283,528,675 | 251,107,396 | |
Long-Term Debt | 2,420,594,888 | 2,683,294,222 | |
Sellers Financing | - | 325,330 | |
Deferred Tax Liabilities | 222,380,908 | 261,847,892 | |
Taxes Payable | 71,409,400 | 74,910,041 | |
Other Liabilities | 117,603,958 | 101,320,147 | |
Trade Payables and Other | 8,425,932 | 5,888,626 | |
Total Non-Current Liabilities | 3,123,943,761 | 3,378,693,654 | |
CURRENT LIABILITIES | |||
Long-Term Debt | 961,577,949 | 504,084,669 | |
Sellers Financing | 1,631,815 | 1,103,888 | |
Taxes Payable | 325,247,295 | 411,769,236 | |
Other Liabilities | 261,517,326 | 214,245,125 | |
Trade Payables and Other | 2,152,242,155 | 2,029,123,666 | |
Total Current Liabilities | 3,702,216,540 | 3,160,326,584 | |
Total Liabilities | 6,826,160,301 | 6,539,020,238 | |
Total Equity and Liabilities | 12,438,796,166 | 12,003,619,283 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2013 AND 2012
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | Non-Controlling Interests | |||||||||||||||
Shareholders' Contributions | Other items | Retained Earnings | Total Equity of Controlling Interests | |||||||||||||
Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Translation of Foreign Operations | Other Reserves | Legal Reserve | Optional reserves (1) | Accumulated Results | Total Equity | |||||||
Balances as of January 1, 2013 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 122,978,415 | 5,207,274 | 88,652,667 | 1,381,400,655 | 481,152,598 | 4,090,030,112 | 1,374,568,933 | 5,464,599,045 | ||||
Set-up of reserves (Note 10.a.) | - | - | - | - | - | - | 24,057,630 | 457,094,968 | (481,152,598) | - | - | - | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (108,857,225) | (108,857,225) | ||||
Income for the period | - | - | - | - | - | - | - | - | 83,696,435 | 83,696,435 | 115,147,095 | 198,843,530 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 30,599,018 | - | - | - | - | 30,599,018 | 27,451,497 | 58,050,515 | ||||
Balances as of June 30, 2013 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 153,577,433 | 5,207,274 | 112,710,297 | 1,838,495,623 | 83,696,435 | 4,204,325,565 | 1,408,310,300 | 5,612,635,865 | ||||
Balances as of January 1, 2012 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 37,992,937 | (18,384,533) | 64,740,233 | - | 1,539,154,967 | 3,634,142,107 | 1,063,645,779 | 4,697,787,886 | ||||
Set-up of reserves | - | - | - | - | - | - | 23,912,434 | 1,381,400,655 | (1,405,313,089) | - | - | - | ||||
Dividend Distribution | - | - | - | - | - | - | - | - | (135,000,000) | (135,000,000) | - | (135,000,000) | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (93,123,896) | (93,123,896) | ||||
Income for the period | - | - | - | - | - | - | - | - | 226,352,900 | 226,352,900 | 173,836,296 | 400,189,196 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 15,846,170 | - | - | - | - | 15,846,170 | 16,555,164 | 32,401,334 | ||||
Balances as of June 30, 2012 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 53,839,107 | (18,384,533) | 88,652,667 | 1,381,400,655 | 225,194,778 | 3,741,341,177 | 1,160,913,343 | 4,902,254,520 | ||||
(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 300,000,000; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756, (iii) Optional reserve for illiquidity of results of Ps. 694,371,899 and (iv) Optional reserve for the financial aid to subsidiaries and the audiovisual communication services law of Ps. 457,094,968.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012
In Argentine Pesos (Ps.)
June 30, 2013 | June 30, 2012 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Income for the period | 198,843,530 | 400,189,196 | ||
Income Tax and Tax on Assets | 125,049,044 | 209,208,214 | ||
Accrued Interest, net | 136,020,595 | 130,264,191 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 450,421,418 | 357,997,568 | ||
Amortization of Intangible Assets and Film Library | 82,596,578 | 68,651,431 | ||
Net of allowances | 108,156,607 | 55,512,374 | ||
Financial Results | 265,865,226 | 159,387,810 | ||
Equity in Earnings from Affiliates and Subsidiaries | (7,420,344) | (15,808,443) | ||
Other Income and Expense | (379,989) | (1,911,671) | ||
Income/Loss from Discontinued Operations | - | 16,005,339 | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (146,098,127) | (106,619,670) | ||
Other Receivables | (92,450,163) | (59,372,428) | ||
Inventories | (9,641,107) | (83,437,633) | ||
Other Assets | 124,198 | 1,630,907 | ||
Trade Payables and Other | 113,263,156 | (24,777,639) | ||
Taxes Payable | (93,688,575) | (51,447,382) | ||
Other Liabilities | 42,229,992 | 65,558,685 | ||
| Provisions | (15,833,664) | (20,872,449) | |
| Income Tax and Tax on Assets Payments | (208,023,895) | (170,804,897) | |
| ||||
| Net Cash Flows Provided by Operating Activities | 949,034,480 | 929,353,503 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (795,981,121) | (535,861,068) | |
| Acquisition of Intangible Assets | (30,730,066) | (21,237,355) | |
| Acquisition of Subsidiaries, Net of Cash Acquired | (2,113,981) | (1,831,731) | |
| Collection of Interest | 480,375 | - | |
| Proceeds from Sale of Property, Plant and Equipment | 35,242 | 1,449,507 | |
| Dividends collected | 24,761,721 | - | |
| Loans granted | (7,416,658) | - | |
| Certificates of Deposit | (98,589) | (4,848,000) | |
| Collections of Certificates of Deposit | 1,965,740 | 10,775,447 | |
| ||||
| Net Cash Flows used in Investment Activities | (809,097,337) | (551,553,200) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans | 66,126,370 | 64,764,120 | |
| Repayment of Loans and Holding Expenses | (224,950,933) | (81,964,380) | |
| Payment of Interest | (148,921,865) | (142,566,344) | |
| Payments on Derivatives, Net | (4,680,000) | (1,412,500) | |
| Payment of Sellers Financing | (111,665) | (5,730,954) | |
| Dividends Paid | - | (118,854,787) | |
| Partial prepayment of investments for the purchase of Notes from Subsidiaries | 67,182,254 | - | |
| Reserve set-up | (7,516,839) | (6,368,954) | |
| Payments to Non-Controlling Interests, net | (102,888,537) | (88,657,287) | |
| ||||
| Net Cash Flows used in Financing Activities | (355,761,215) | (380,791,086) | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 72,783,465 | 38,300,730 | |
| ||||
| (Decrease) / Increase in cash flow, net | (143,040,607) |
| 35,309,947 |
| Cash and Cash Equivalents at the Beginning of the Year | 1,304,735,665 |
| 865,580,054 |
| Cash and Cash Equivalents at the End of the Period | 1,161,695,058 |
| 900,890,001 |
| ||||
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