11th Mar 2014 12:55
Grupo Clarín announces its
Results for the Fourth Quarter (4Q13) and Full Year of 2013 (FY13)
Buenos Aires, Argentina, March 11th, 2014 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its fourth quarter and full year results for 2013. Figures in this report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of December 31th, 2013 and are stated in Argentine Pesos, unless otherwise indicated.
Highlights (FY13 vs. FY12):
§ Net Sales totaled Ps. 14,184.3 million, an increase of 25.3% from 2012, 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. 3,274.0 million, an increase of 18.1% from 2012, mainly driven by higher sales in the Cable and Internet access and in the Broadcasting and Programming segments.
§ Grupo Clarín's Adjusted EBITDA Margin (2) for 2013 was 23.1%, compared to 24.5% in 2012.
§ Net Income totaled Ps. 800.7 million, a decrease of 17.7% from the Ps. 972.3 million reported in 2012, while the Net Income attributable to Equity Shareholders decreased 0.5% to Ps 479.8 million from Ps. 482.3 million.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 2013 | 2012 | % Ch. | 4Q13 | 3Q13 | 4Q12 | QoQ | YoY |
Net Sales | 14,184.3 | 11,318.9 | 25.3% | 4,043.0 | 3,760.1 | 3,176.9 | 7.5% | 27.3% |
Adjusted EBITDA (1) | 3,274.0 | 2,772.7 | 18.1% | 970.5 | 890.9 | 733.3 | 8.9% | 32.3% |
Adjusted EBITDA Margin (2) | 23.1% | 24.5% | (5.8%) | 24.0% | 23.7% | 23.1% | 1.3% | 4.0% |
Net Income(3) | 800.7 | 972.3 | (17.7%) | 321.2 | 280.6 | 415.9 | 14.5% | (22.8%) |
Attributable to: | ||||||||
Equity Shareholders | 479.8 | 482.3 | (0.5%) | 212.4 | 183.8 | 166.9 | 15.6% | 27.3% |
Non-Controlling Interests | 320.83 | 490.0 | (34.5%) | 108.8 | 96.8 | 249.0 | 12.4% | (56.3%) |
(1) We define Adjusted EBITDA as net sales minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies on the basis of operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Net Sales.
(3) We define Net Income as Income for the period.
Net sales reached Ps.14,184.3 million, an increase of 25.3% from Ps. 11,318.9 million in 2012 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.) | 2013 | 2012 | YoY | 4Q13 | 3Q13 | 4Q12 | QoQ | YoY |
Cable TV and Internet Access | 9,749.1 | 7,601.6 | 28.3% | 2,730.8 | 2,541.1 | 2,091.3 | 7.5% | 30.6% |
Printing and Publishing | 2,652.8 | 2,385.7 | 11.2% | 746.1 | 668.5 | 663.9 | 11.6% | 12.4% |
Broadcasting and Programming | 1,871.7 | 1,449.0 | 29.2% | 590.9 | 580.2 | 468.0 | 1.8% | 26.2% |
Digital Content and Others | 496.1 | 363.8 | 36.4% | 144.9 | 122.9 | 97.8 | 17.9% | 48.2% |
Subtotal | 14,769.8 | 11,800.1 | 25.2% | 4,212.6 | 3,912.6 | 3,321.0 | 7.7% | 26.8% |
Eliminations | (585.5) | (481.2) | 21.7% | (169.6) | (152.5) | (144.0) | 11.2% | 17.8% |
Total | 14,184.3 | 11,318.9 | 25.3% | 4,043.0 | 3,760.1 | 3,176.9 | 7.5% | 27.3% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 7,163.3 million, an increase of 25.4% from Ps. 5,713.0 million reported for 2012 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. 3,747.0 million, an increase of 32.3% from Ps. 2,833.2 million in 2012. This increase was mainly due to higher costs in the Cable TV and Internet access and Printing and Publishing segments.
Adjusted EBITDA reached Ps.3,274.0 million, an increase of 18.1% from Ps. 2,772.7 million reported for2012, driven by higher sales in the Cable TV and Internet access and Broadcasting and Programming segments, and mainly due to margin expansion in Broadcasting and Programming segment; although was 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.) | 2013 | 2012 | YoY | 4Q13 | 3Q13 | 4Q12 | QoQ | YoY |
Cable TV and Internet access | 2,850.7 | 2,406.9 | 18.4% | 800.3 | 712.1 | 573.8 | 12.4% | 39.5% |
Printing and Publishing | 76.2 | 229.9 | (66.9%) | 44.5 | 18.6 | 72.4 | 138.5% | (38.6%) |
Broadcasting and Programming | 334.1 | 136.1 | 145.6% | 122.1 | 159.8 | 94.2 | (23.6%) | 29.6% |
Digital Content and Others | 13.1 | (0.2) | 6,645.5% | 3.7 | 0.4 | (7.1) | 878.6% | 152.2% |
Subtotal | 3,274.0 | 2,772.7 | 18.1% | 970.5 | 890.9 | 733.3 | 8.9% | 32.3% |
Eliminations | - | - | NA | - | - | - | NA | NA |
Total | 3,274.0 | 2,772.7 | 18.1% | 970.5 | 890.9 | 733.3 | 8.9% | 32.3% |
Financial results net totaled Ps. (1,475.8) million compared to Ps. (916.2) million for 2012. The increase was mainly due to higher interest expenses and peso depreciation during 2013, which went from Ps 4.92 per dollar at the end of December 2012, to Ps 6.52 per dollar as of December 31th, 2013.
Equity in earnings from unconsolidated affiliates in 2013 totaled Ps. 140.0 million, compared to Ps. 13.7 million for 2012.
Other Income (expenses), netreached Ps.85.4 million, compared to Ps. 0.6 million in 2012.
Income tax as of December 2013 reached Ps. (92.7) million, from Ps. (524.9) million in December 2012.
Income from Discontinued Operations, reached Ps. 498.7 million in 2012.
Net income totaled Ps. 800.7 million, a decrease of 17.7% from Ps. 972.3 million reported for 2012. 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 the peso depreciation. The Equity Shareholders Net Income amounted to Ps.479.8million, a decrease of 0.5% compared with December 2012.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 1,859.3 million in 2013, an increase of 34.4% from Ps. 1,383.0 million reported for 2012. Out of the total CAPEX in 2013, 95.5% was allocated to the Cable TV and Internet access segment, 1.9% to the Digital Content and Others segment remaining 2.6% 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 December 31th, 2013 was 1.28x and the Net Debt at the end of this period totaled Ps. 2,535.5 million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Twelve Months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2013
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 80.3 | 1,235.9 | 1,398.0 | 55.4 | (128.2) | 2,641.4 | 18.6% |
Circulation | - | 1,091.0 | - | - | (4.0) | 1,086.9 | 7.7% |
Printing | - | 218.5 | - | - | (49.2) | 169.4 | 1.2% |
Video Subscriptions | 7,398.3 | - | - | - | - | 7,398.3 | 52.2% |
Internet Subscriptions | 1,909.7 | - | - | - | (8.2) | 1,901.6 | 13.4% |
Programming | - | - | 329.5 | - | (85.5) | 244.1 | 1.7% |
Other Sales
| 360.8 | 107.4 | 144.2 | 440.8 | (310.4) | 742.7 | 5.2% |
Total Sales | 9,749.1 | 2,652.8 | 1,871.7 | 496.1 | (585.5) | 14,184.3 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2012
(In millions of Ps.) | Cable TV & Internet access | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 49.7 | 1,251.8 | 1,069.6 | 51.2 | (126.5) | 2,295.7 | 20.3% |
Circulation | - | 879.5 | - | - | - | 879.5 | 7.8% |
Printing | - | 169.0 | - | - | (43.5) | 125.6 | 1.1% |
Video Subscriptions | 5,704.8 | - | - | - | - | 5,704.8 | 50.4% |
Internet Subscriptions | 1,595.2 | - | - | - | (6.8) | 1,588.4 | 14.0% |
Programming | - | - | 244.9 | - | (70.4) | 174.5 | 1.5% |
Other Sales
| 251.9 | 85.4 | 134.5 | 312.6 | (234.0) | 550.5 | 4.9% |
Total Sales | 7,601.6 | 2,385.7 | 1,449.0 | 363.8 | (481.2) | 11,318.9 | 100.0% |
CABLE TV AND INTERNET ACCESS
Net Sales
Net sales increased by 28.3%to Ps. 9,749.1 million for 2013 compared to Ps. 7,601.6 million for 2012. 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 3,492,531 as of December 2013, compared to the 3,404,698 reported for the same date in 2012. Internet subscribers reached 1,711,587 in December 2013, compared to the 1,504,380 of December 2012.
Cost of Sales(Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 31.9% to Ps. 4,368.5 million for December 2013, compared to Ps. 3,311.0 million in December 2012. This was mainly due to higher programming costs, salaries and network expenses and fixed assets maintenance costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 34.3% to Ps. 2,529.9 million for 2013, compared to Ps. 1,883.7 million reported in 2012. This increase is driven by higher salaries, taxes, duties and contributions and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 34.2% to Ps. 1,029.3 million for 2013 from Ps. 767.2 million reported in 2012.
PRINTING AND PUBLISHING
Net Sales
The 11.2% increase of Net sales to Ps. 2,652.8 million in 2013 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 18.5% to Ps. 1,640.1 million in 2013, compared to Ps. 1,383.5 million in 2012. 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 21.3% to Ps. 936.5 million in 2013, compared to the Ps. 772.3 million reported for 2012. 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 9.7% to Ps. 51.3 million in 2013 compared to Ps. 56.8 million in 2012.
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 29.2% to Ps. 1,871.7 million in 2013, compared to Ps. 1,449.0 million in 2012. 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 10.8% to Ps. 1,135.7 million in 2013, compared to Ps. 1,025.1 million in 2012. This is attributable mainly to higher salaries 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 39.6% to Ps. 401.9 million in 2013, compared to Ps. 287.9 million in 2012. The increase was primarily the result of higher salaries, allowances for contingencies and marketing expenses.
Depreciation and Amortization
Depreciation and amortization expenses increased by 1.2% to Ps. 37.4 million in 2013 compared to Ps. 37.0 million reported in 2012.
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 36.4% to 496.1, from Ps. 363.8 million reported in 2012, due to higher sales in digital content, Gestión Compartida and fees at Grupo Clarín. EBITDA resulted in Ps. 13.1 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
CABLE TV AND INTERNET ACCESS
2013 | 2012 | YoY | 4Q13 | 3Q13 | 4Q12 | QoQ | YoY | |||||||||
Homes Passed (1) | 7,509.5 | 7,455.9 | 0.7% | 7,509.5 | 7,506.7 | 7,455.9 | 0.0% | 0.7% |
| |||||||
Bidirectional Homes Passed | 66.5% | 63.9% | 4.1% | 66.5% | 65.3% | 63.9% | 1.8% | 4.1% |
| |||||||
Cable TV |
| |||||||||||||||
Total Consolidated Subscribers (1)(3) | 3,492.5 | 3,404.7 | 2.6% | 3,492.5 | 3,488.7 | 3,404.7 | 0.1% | 2.6% |
| |||||||
Subscribers - Argentina | 3,367.5 | 3,288.8 | 2.4% | 3,367.5 | 3,364.9 | 3,288.8 | 0.1% | 2.4% |
| |||||||
Subscribers - International | 125.0 | 115.9 | 7.9% | 125.0 | 123.8 | 115.9 | 1.0% | 7.9% |
| |||||||
Uruguay | 125.0 | 115.9 | 7.9% | 125.0 | 123.8 | 115.9 | 1.0% | 7.9% |
| |||||||
Paraguay | - | - | NA | - | - | - | NA | NA |
| |||||||
% over Homes Passed | 46.5% | 45.7% | 1.8% | 46.5% | 46.5% | 45.7% | 0.1% | 1.8% |
| |||||||
Total Equity Subscribers(4) | 3,618.8 | 3,523.2 | 2.7% | 3,618.8 | 3,612.9 | 3,523.2 | 0.2% | 2.7% |
| |||||||
Churn Rate % | 15.3% | 15.0% | 2.1% | 15.6% | 14.1% | 16.0% | 10.6% | (2.1%) |
| |||||||
Digital Video |
| |||||||||||||||
Digital Ready Pay TV Subs | 2,769.7 | 2,689.3 | 3.0% | 2,769.7 | 2,761.0 | 2,689.3 | 0.3% | 3.0% |
| |||||||
Total Digital Decoders | 1,260.0 | 1,107.2 | 13.8% | 1,260.0 | 1,239.2 | 1,107.2 | 1.7% | 13.8% |
| |||||||
Argentina | 1,117.2 | 990.0 | 12.9% | 1,117.2 | 1,101.3 | 990.0 | 1.4% | 12.9% |
| |||||||
International | 142.8 | 117.2 | 21.8% | 142.8 | 137.8 | 117.2 | 3.6% | 21.8% |
| |||||||
Penetration over Digital Ready TV Subs | 45.5% | 41.2% | 10.5% | 45.5% | 44.9% | 41.2% | 1.4% | 10.5% |
| |||||||
Internet Subscribers |
| |||||||||||||||
Total Internet Subscribers (1) | 1,711.6 | 1,504.4 | 13.8% | 1,711.6 | 1,680.8 | 1,504.4 | 1.8% | 13.8% |
| |||||||
Cablemodem(1) | 1,699.4 | 1,489.4 | 14.1% | 1,699.4 | 1,668.0 | 1,489.4 | 1.9% | 14.1% |
| |||||||
ADSL(1) | 5.83 | 8.4 | (30.6%) | 5.8 | 6.8 | 8.4 | (14.2%) | (30.6%) |
| |||||||
Dial Up (1) | 6.4 | 6.6 | (3.1%) | 6.4 | 6.0 | 6.6 | 6.1% | (3.1%) |
| |||||||
% over Bidirectional Homes Passed | 34.3% | 31.6% | 8.5% | 34.3% | 34.3% | 31.6% | (0.0%) | 8.5% |
| |||||||
Total ARPU(2) | 235.6 | 186.9 | 26.1% | 260.8 | 244.1 | 204.2 | 6.8% | 27.7% |
| |||||||
(1) Figures in thousands
(2) Net Sales/ Average Pay TV Subscribers
(3) Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.
(4) Total subscribers considering the equity share in each subsidiary.
PRINTING AND PUBLISHING
2013 | 2012 | YoY | 4Q13 | 3Q13 | 4Q12 | QoQ | YoY | |
Circulation (1) | 296.7 | 311.7 | (4.8%) | 286.3 | 291.0 | 301.8 | (1.6%) | (5.1%) |
Circulation share % (2) | 38.4% | 38.7% | (0.7%) | 38.0% | 38.3% | 38.8% | (0.7%) | (2.1%) |
Advertising share %(3) | 51.7% | 50.3% | 2.8% | 51.1% | 52.0% | 49.5% | (1.8%) | 3.2% |
(1) Average number of copies according to IVC (including Diario Clarín and Olé)
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. 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
2013 | 2012 | YoY | 4Q13 | 3Q13 | 4Q12 | QoQ | YoY | |
Advertising Share % (1) | 33.2% | 36.6% | (9.2%) | 34.5% | 33.9% | 37.3% | 1.5% | (7.7%) |
Audience Share % (2) | ||||||||
Prime Time | 35.4% | 35.9% | (1.4%) | 35.0% | 36.6% | 34.1% | (4.3%) | 2.7% |
Total Time | 28.0% | 29.4% | (4.6%) | 27.6% | 29.0% | 28.8% | (4.8%) | (4.2%) |
(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
2013 | 2012 | YoY | |
Page Views (1) | 719.4 | 625.3 | 15.1% |
Unique Visitors(1) | 38.0 | 27.9 | 36.2% |
(1)In millions. Average. Source IAB and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | December 13 | December 12 | % Change | September 13 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 1,295.9 | 501.3 | 158.5% | 1,149.1 | 12.8% |
Financial loans | 49.5 | 130.6 | (62.1%) | 30.8 | 60.6% |
Negotiable obligations | 924.6 | 165.2 | 459.7% | 888.1 | 4.1% |
Accrued interest | 120.1 | 95.0 | 26.3% | 44.7 | 168.7% |
Acquisition of equipment | 90.3 | 70.1 | 28.9% | 82.2 | 9.9% |
Sellers Financing Capital | 3.5 | 1.1 | 215.7% | 3.8 | (7.2%) |
Sellers Financing Accrued Interest | - | - | NA | - | NA |
Related Parties Capital | 9.9 | 13.2 | (25.3%) | 7.2 | 36.8% |
Related Parties Accrued Interest | 1.1 | 0.1 | 796.6% | 0.8 | 34.6% |
Bank overdraft | 97.0 | 25.9 | 273.8% | 91.6 | 5.8% |
Non-Current Financial Debt | 2,890.1 | 2,738.3 | 5.5% | 2,389.8 | 20.9% |
Financial loans | 247.1 | 24.5 | 907.3% | 41.6 | 494.7% |
Negotiable obligations | 2,531.9 | 2,576.7 | (1.7%) | 2,248.4 | 12.6% |
Accrued interest | - | - | NA | - | NA |
Acquisition of equipment | 104.7 | 131.0 | (20.1%) | 93.6 | 11.9% |
Sellers Financing Capital | - | 0.3 | (100.0%) | - | NA |
Sellers Financing Accrued Interest | - | - | NA | - | NA |
Related Parties Capital | 4.2 | 4.2 | - | 4.2 | - |
Related Parties Accrued Interest | 2.2 | 1.5 | 41.1% | 2.0 | 7.9% |
Bank overdraft | - | - | NA | - | NA |
Total Financial Debt (A) | 4,186.0 | 3,239.7 | 29.2% | 3,538.9 | 18.3% |
Measurement at fair Value | (43.1) | (50.9) | 15.2% | (42.2) | (2.2%) |
Total Short Term and Long Term Debt | 4,142.8 | 3,188.8 | 29.9% | 3,496.7 | 18.5% |
Cash and Cash Equivalents (B) | 1,650.5 | 1,304.7 | 26.5% | 1,389.6 | 18.8% |
Net Debt (A) - (B) | 2,535.5 | 1,934.9 | 31.0% | 2,149.3 | 18.0% |
Net Debt/Adjusted Ebitda (1) | 0.77x | 0.70x | 11.0% | 0.71x | 9.4% |
% USD Debt | 90.6% | 96.6% | (6.2%) | 96.2% | (5.9%) |
% Ar. Ps Debt | 9.4% | 3.4% | 174.5% | 3.8% | 148.3% |
Total Financial Debt and Net Debt(1), increased from Ps. 3,239.7 million to Ps. 4,186.0 million and from Ps. 1,934.9 million to Ps. 2,535.5 million respectively. This represents an increase of 29.2% in the Total Debt and an increase of 31.0% in the Net Debt.
Debt coverage ratio (1) as of December 31th, 2013 was 0.77x in the case of Net Debt and of 1.28x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Twelve Months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
RELEVANT MATTERS
NEW MEDIA LAW AND VOLUNTARY CONFORMING PROPOSAL
On 29 October 2013, Grupo Clarín S.A. informed the Argentine Securities Commission, the Buenos Aires Stock Exchange and the London Stock Exchange that the Argentine Supreme Court ruled that the Audiovisual Communication Services Law No. 26,522 is constitutional.
On 4 November 2013, the Company also informed that it had filed in the Audiovisual Communication Services Law Federal Enforcement Authority ("AFSCA") a Voluntary Conforming Proposal pursuant to the implementing regulations of Section 161 of the Audiovisual Communication Services Law, set forth under Decree No. 1225/2010 and Chapter I of Annex I of Resolution No. 297/AFSCA/2010.
The abovementioned Proposal was subject to certain amendments that were filed with AFSCA in due course, under supplementary action No. 25,527 of 13 December 2013, No. 25,760 of 19 December 2013 and No. 771 of 14 January 2014.
On 18 February 2014, Grupo Clarín S.A. informed that it had been served notice of Resolution No. 193-AFSCA/14, issued by the Audiovisual Communication Services Law Federal Enforcement Authority, in which has been declared the proposal filed by the Company formally admissible. The same day, the Board of Directors decided to call an Extraordinary Shareholders Meeting on 20 March 2014.
(More details on IR Grupo Clarín website: (www.grupoclarin.com/ir)
GRUPO CLARIN DIVIDEND PAYMENT PROPOSAL
The Board of Directors of Grupo Clarín proposed to the Shareholders' General Annual Ordinary Meeting a cash dividend payment of Ps 240 million (equivalent to Ps 0.835 per share or to Ps 1.670 per GDS).
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)
| 27.5 |
GCLA (LSE) Price per GDS (USD) | 5.5 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 790.4 |
Closing Price | March 10th, 2014 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín will host a conference call and webcast to discuss its Fourth Quarter Results for 2013, on Tuesday, March 11th, 2014.
Time: 12:00pm Buenos Aires Time/3:00pm London Time/11:00am New York Time.
Those interested in connecting via conference call are invited to please dial (0) 800-092-3582 toll free from the U.K., 1 (800) 311-9404 toll free from the U.S., (0800) 333-0050 from Argentina, or 1 (334) 323-7224 from all other countries, 5-10 minutes prior to the start time. The Conference ID is 9011.
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. +1-334-323-0140. The passcode is: 65151892.
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir prior to the call, on March 11th, 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 YEARS ENDED DECEMBER 31, 2013 AND 2012
In Argentine Pesos (Ps.)
December 31, 2013 | December 31, 2012 | |||
Continuing Operations | ||||
Revenues | 14,184,278,492 | 11,318,906,093 | ||
Cost of Sales (1) | (8,200,699,987) | (6,508,186,503) | ||
Subtotal - Gross Profit | 5,983,578,505 | 4,810,719,590 | ||
Selling Expenses (1) | (1,874,136,657) | (1,387,819,339) | ||
Administrative Expenses (1) | (1,965,701,020) | (1,522,578,855) | ||
Other Income and Expense, net | 85,425,019 | 639,370 | ||
Financial Costs | (1,305,195,614) | (772,960,211) | ||
Other Financial Results, net | (170,634,736) | (143,193,327) | ||
Equity in Earnings from Affiliates and Subsidiaries | 140,036,975 | 13,682,715 | ||
Income before Income Tax and Tax on Assets | 893,372,472 | 998,489,943 | ||
Income Tax and Tax on Assets | (92,706,698) | (524,876,069) | ||
Income for the Year from Continuing Operations | 800,665,774 | 473,613,874 | ||
Discontinued Operations | ||||
Income from Discontinued Operations (2) | - | 498,717,214 | ||
Net Income for the Year | 800,665,774 | 972,331,088 | ||
Other Comprehensive Income | ||||
Items which may be reclassified to net income | ||||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 312,065,021 | 182,068,772 | ||
Variation in Translation Differences of Foreign Operations from Discontinued Operations | - | (1,899,698) | ||
Other Comprehensive Income for the Year | 312,065,021 | 180,169,074 | ||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,112,730,795 | 1,152,500,162 | ||
Profit Attributable to: | ||||
Shareholders of the Parent Company | 479,831,556 | 482,310,720 | ||
Non-Controlling Interests | 320,834,218 | 490,020,368 | ||
Total Comprehensive Income Attributable to: | ||||
Shareholders of the Parent Company | 639,878,193 | 567,296,198 | ||
Non-Controlling Interests | 472,852,602 | 585,203,964 | ||
Basic and Diluted Earnings per Share from Continuing Operations | 1.67 | 0.96 | ||
Basic and Diluted Earnings per Share from Discontinued Operations | - | 0.72 | ||
Basic and Diluted Earnings per Share - Total | 1.67 | 1.68 | ||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 1,130,295,990 and Ps. 872,356,212 for the years ended December 31, 2013 and 2012, respectively.
(2) As of December 31, 2013, it includes approximately Ps. 444 million in connection with the sale of the interests described in Note 12.g. included in the NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31th, 2013, available at http://www.grupoclarin.com/ir
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2013 AND 2012
In Argentine Pesos (Ps.)
December 31, 2013 | December 31, 2012 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 5,087,330,686 | 4,137,741,603 | |
Intangible Assets | 455,181,212 | 554,781,161 | |
Goodwill | 2,876,255,652 | 2,797,020,692 | |
Deferred Tax Assets | 140,001,740 | 55,403,579 | |
Investment in Affiliates and Subsidiaries | 418,620,000 | 389,212,589 | |
Other Investments | 143,313,288 | 99,597,125 | |
Inventories | 28,181,042 | 13,929,652 | |
Other Assets | 1,791,901 | 1,896,642 | |
Other Receivables | 232,328,526 | 128,770,432 | |
Trade Receivables | 129,021,518 | 125,285,473 | |
Total Non-Current Assets | 9,512,025,565 | 8,303,638,948 | |
CURRENT ASSETS | |||
Inventories | 269,203,901 | 342,773,949 | |
Other Assets | 4,990,825 | 7,362,757 | |
Other Receivables | 534,989,603 | 402,265,693 | |
Trade Receivables | 2,096,136,611 | 1,638,550,031 | |
Other Investments | 634,453,975 | 685,632,591 | |
Cash and Banks | 1,332,983,003 | 623,395,314 | |
Total Current Assets | 4,872,757,918 | 3,699,980,335 | |
Total Assets | 14,384,783,483 | 12,003,619,283 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | |||
Shareholders' Contributions | 2,010,638,503 | 2,010,638,503 | |
Other items | 288,232,326 | 128,185,689 | |
Retained Earnings | 2,431,037,476 | 1,951,205,920 | |
Attributable to Shareholders of the Parent Company | 4,729,908,305 | 4,090,030,112 | |
Attributable to Non-Controlling Interests | 1,748,885,854 | 1,374,568,933 | |
Total Shareholders' Equity | 6,478,794,159 | 5,464,599,045 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Accruals and Other | 282,932,957 | 254,838,954 | |
Long-Term Debt | 2,844,810,110 | 2,683,294,222 | |
Sellers Financing | - | 325,330 | |
Deferred Tax Liabilities | 87,867,286 | 261,847,892 | |
Taxes Payable | 108,608,440 | 74,910,041 | |
Other Liabilities | 121,900,186 | 97,588,589 | |
Trade Payables and Other | 5,344,594 | 5,888,626 | |
Total Non-Current Liabilities | 3,451,463,573 | 3,378,693,654 | |
CURRENT LIABILITIES | |||
Long-Term Debt | 1,294,528,866 | 504,084,669 | |
Sellers Financing | 3,484,674 | 1,103,888 | |
Taxes Payable | 395,187,379 | 411,769,236 | |
Other Liabilities | 247,916,402 | 214,245,125 | |
Trade Payables and Other | 2,513,408,430 | 2,029,123,666 | |
Total Current Liabilities | 4,454,525,751 | 3,160,326,584 | |
Total Liabilities | 7,905,989,324 | 6,539,020,238 | |
Total Equity and Liabilities | 14,384,783,483 | 12,003,619,283 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | |||||||||||||||||
Shareholders' Contributions | Other items | Retained Earnings | Total Equity of Controlling Interests | Equity attributable to Non-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, 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 | - | - | - | - | - | - | - | - | - | - | (290,063,721) | (290,063,721) | |||||
Changes in Reserves for Acquisition of Minority Interests | - | - | - | - | - | 23,591,807 | - | - | - | 23,591,807 | 15,782,911 | 39,374,718 | |||||
Net Income for the Year | - | - | - | - | - | - | - | - | 482,310,720 | 482,310,720 | 490,020,368 | 972,331,088 | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 84,985,478 | - | - | - | - | 84,985,478 | 95,183,596 | 180,169,074 | |||||
Balances as of December 31, 2012 | 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 14) | - | - | - | - | - | - | 24,057,630 | 457,094,968 | (481,152,598) | - | - | - | |||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (98,535,681) | (98,535,681) | |||||
Net Income for the Year | - | - | - | - | - | - | - | - | 479,831,556 | 479,831,556 | 320,834,218 | 800,665,774 | |||||
Other Comprehensive Income: | |||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 160,046,637 | - | - | - | - | 160,046,637 | 152,018,384 | 312,065,021 | |||||
Balances as of December 31, 2013 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 283,025,052 | 5,207,274 | 112,710,297 | 1,838,495,623 | 479,831,556 | 4,729,908,305 | 1,748,885,854 | 6,478,794,159 | |||||
(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 to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of Ps. 457,094,968.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
In Argentine Pesos (Ps.)
December 31, 2013 | December 31, 2012 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Net Income for the Year | 800,665,774 | 972,331,088 | ||
Income Tax and Tax on Assets | 92,706,698 | 524,876,069 | ||
Accrued Interest, net | 295,497,933 | 265,004,506 | ||
Adjustments to reconcile net income for the year to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 963,340,450 | 726,074,731 | ||
Amortization of Intangible Assets and Film Library | 166,955,540 | 146,281,481 | ||
Net of allowances | 226,040,815 | 108,858,093 | ||
Financial Income, except interest | 902,450,122 | 462,345,935 | ||
Equity in Earnings from Affiliates and Subsidiaries | (140,036,975) | (13,682,715) | ||
Other Income and Expense | (75,260,674) | (3,063,467) | ||
Income/Loss from Discontinued Operations | - | (399,258,357) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (607,536,008) | (475,493,666) | ||
Other Receivables | (132,447,738) | 138,937,891 | ||
Inventories | 59,694,755 | 27,062,977 | ||
Other Assets | 2,338,777 | 2,376,684 | ||
Trade Payables and Other | 457,050,294 | 278,599,757 | ||
Taxes Payable | 56,794,037 | (125,281,919) | ||
Other Liabilities | 36,393,075 | 46,750,050 | ||
| Provisions | (73,520,259) | (30,747,737) | |
| Income Tax and Tax on Assets Payments | (422,779,473) | (360,027,710) | |
| ||||
| Net Cash Flows Provided by Operating Activities | 2,608,347,143 | 2,291,943,691 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (1,859,321,132) | (1,382,972,222) | |
| Acquisition of Intangible Assets | (59,045,040) | (73,781,197) | |
| Acquisition of Subsidiaries, Net of Cash Acquired | (2,543,283) | (15,829,527) | |
| Proceeds from Sale of Property, Plant and Equipment | 5,966,286 | 4,049,536 | |
| Dividends collected | 99,063,267 | 3,415,980 | |
| Collection from Disposal of Long-Term Investments / Sale of Permanent Establishment of Foreign Companies | 71,244,000 | 738,299,692 | |
| Certificates of Deposit | (367,178,141) | (108,489,054) | |
| Loans granted | (7,416,658) | - | |
| Collection of Interest | 12,399,593 | - | |
| Collections of Certificates of Deposit | 68,527,243 | 15,419,781 | |
| ||||
| Net Cash Flows used in Investment Activities | (2,038,303,865) | (819,887,011) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans | 378,266,001 | 158,849,820 | |
| Repayment of Loans and Holding Expenses | (422,677,466) | (388,699,658) | |
| Payment of Interest | (306,870,173) | (293,133,497) | |
| Acquisition of investment for the purchase of Notes from Subsidiaries | - | (195,525,800) | |
| Partial prepayment of investments for the purchase of Notes from Subsidiaries | 67,182,254 | - | |
| Settlement on Derivatives | (4,680,000) | (6,177,500) | |
| Payment of Sellers Financing | (1,607,441) | (6,642,392) | |
| Dividends Paid | - | (135,000,000) | |
| Setup of Reserve Account / Escrow Funds | (16,523,702) | (13,409,252) | |
| Payments to Non-Controlling Interests, net | (105,952,368) | (230,279,010) | |
| ||||
| Net Cash Flows used in Financing Activities | (412,862,895) | (1,110,017,289) | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 188,547,121 | 77,116,220 | |
| ||||
| Net Increase in Cash Flow | 345,727,504 |
| 439,155,611 |
| Cash and Cash Equivalents at the Beginning of the Year | 1,304,735,665 |
| 865,580,054 |
| Cash and Cash Equivalents at Year-end | 1,650,463,169 |
| 1,304,735,665 |
Related Shares:
GCLA.L