11th Aug 2017 13:00
Grupo Clarín announces its
Results for the First Half (1H17) and Second Quarter of 2017 (2Q17)
Buenos Aires, Argentina, August 11th, 2017 - 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 2017. Figures are stated in Argentine Pesos, unless otherwise indicated.
On September 28, 2016, Grupo Clarín's Shareholders approved a split-up of Grupo Clarín's equity interest in Cablevisión S.A, the subsidiary that operates Grupo Clarín's cable television, internet and telephony segment, into a new Argentine corporation under the name of Cablevisión Holding S.A. ("CVH"). After the split-up is complete, CVH will own directly and indirectly, 60% equity interest in Cablevision.
The Effective Date of the Spin-off was May 1, 2017. As from this date, Cablevisión Holding S.A. began activities on its own, and the accounting effects of the Spin-off became effective. For further information about CVH, please see the appendix of this report.
Highlights (1H17 vs. 1H16):
§ Net Sales totaled Ps. 6,281.8 million, an increase of 30.0% from 1H16, mainly due to higher advertising and programming sales in the Broadcasting and Programming segment and, to a lesser extent, driven by higher circulation and advertising revenues in the Printing and Publishing segment.
§ Adjusted EBITDA (1) reached Ps. 301.4 million, a decrease of 21.1% from 1H16, mainly driven by the implementation of a strategic cost reduction plan, focused on rightsizing the company in order to reach a more flexible structure. Grupo Clarín's Adjusted EBITDA Margin (2) for 2016 was 4.8%, compared to 7.9% in 1H16.
§ Income for the period totaled Ps. 2,443.4 million, an increase of 18.4% from 1H16, and the Income for the period attributable to Equity Shareholders amount to Ps 1,494.2 million.
FINANCIAL HIGHLIGHTS
(In millions of Ps.) | 1H17 | 1H16 | % Ch. | 2Q17 | 1Q17 | 2Q16 | QoQ | YoY |
Net Sales | 6,281.8 | 4,832.1 | 30.0% | 3,606.0 | 2,675.8 | 2,746.2 | 34.8% | 31.3% |
Adjusted EBITDA (1) | 301.4 | 382.2 | (21.1%) | 388.5 | (87.1) | 315.5 | (545.9%) | 23.1% |
Adjusted EBITDA Margin (2) | 4.8% | 7.9% | (39.3%) | 10.8% | (3.3%) | 11.5% | (430.9%) | (6.2%) |
Income for the period | 2,443.4 | 2,062.9 | 18.4% | 637.0 | 1,806.5 | 949.7 | (64.7%) | 32.9% |
Attributable to: | ||||||||
Equity Shareholders | 1,494.2 | 1,227.8 | 21.7% | 445.5 | 1,048.7 | 595.0 | (57.5%) | 25.1% |
Non-Controlling Interests | 949.3 | 835.1 | 13.7% | 191.4 | 757.8 | 354.7 | (74.7%) | 46.0% |
(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.
OPERATING RESULTS
Net sales reached Ps. 6,281.8 million, an increase of 30.0% from Ps. 4,832.1 million in 1H16 mainly due to advertising and programming sales in the Broadcasting and Programming segment and, to a lesser extent, driven by higher circulation and advertising revenues in the Printing and Publishing segment.
Following is a breakdown of Net Sales by business segment:
NET SALES
(In millions of Ps.) | 1H17 | 1H16 | YoY | 2Q17 | 1Q17 | 2Q16 | QoQ | YoY |
Printing and Publishing | 2,957.6 | 2,608.7 | 13.4% | 1,578.1 | 1,379.5 | 1,394.9 | 14.4% | 13.1% |
Broadcasting and Programming | 2,885.8 | 1,914.8 | 50.7% | 1,819.2 | 1,066.6 | 1,202.9 | 70.6% | 51.2% |
Digital Content and Others | 799.0 | 523.7 | 52.6% | 396.4 | 402.6 | 249.5 | (1.5%) | 58.9% |
Subtotal | 6,642.5 | 5,047.2 | 31.6% | 3,793.8 | 2,848.7 | 2,847.4 | 33.2% | 33.2% |
Eliminations | (360.6) | (215.1) | 67.6% | (187.8) | (172.9) | (101.2) | 8.6% | 85.5% |
Total | 6,281.8 | 4,832.1 | 30.0% | 3,606.0 | 2,675.8 | 2,746.2 | 34.8% | 31.3% |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 4,036.0 million, an increase of 38.3% from Ps. 2,918.1 million reported for 1H16 due to higher costs across all business segments, mainly in the Broadcasting and Programming segment due to programming costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 1,944.4 million, an increase of 26.9% from Ps. 1,531.8 million in 1H16. This increase was mainly due to higher salaries costs across all business segments, mainly in Printing and Publishing.
Adjusted EBITDA reached Ps. 301.4 million, a decrease of 21.1% from Ps. 382.2 million reported for 1H16. Facing the challenge of the digital transformation and the development of a new business model in the Printing and Publishing segment, we launched a strategic cost reduction plan that had an impact in Company results in this six months.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
(In millions of Ps.) | 1H17 | 1H16 | YoY | 2Q17 | 1Q17 | 2Q16 | QoQ | YoY |
Printing and Publishing | (269.5) | (3.9) | 6,799.1% | 10.8 | (280.3) | 3.6 | (103.8%) | 202.3% |
Broadcasting and Programming | 629.2 | 405.6 | 55.1% | 414.8 | 214.4 | 332.8 | 93.5% | 24.6% |
Digital Content and Others | (58.3) | (19.5) | 199% | (37.0) | (21.2) | (20.8) | 74.5% | 78.0% |
Total | 301.4
| 382.2
| (21.1%)
| 388.5
| (87.1)
| 315.5
| (545.9%)
| 23.1%
|
Financial results net totaled Ps. (205.0) million compared to Ps. (159.9) million for 1H16. The increase of the negative result was mainly due to the impact of the peso depreciation on higher dollar denominated debt.
Equity in earnings from unconsolidated affiliates in 1H17 totaled Ps. 83.8 million, compared to Ps. 30.4 million for 1H16.
Other Income (expenses), net reached Ps. 60.3 million, compared to Ps. 13.9 million in 1H16.
Income tax as of June 2017 reached Ps. (49.3) million, from Ps. (101.2) million in 1H16.
Income from Discontinued Operations, reached Ps. 2,366,6 million in 1H17, compared to Ps. 1.978 million for 1H16.
Income for the period totaled Ps. 2,443.4 million, an increase of 18.4% from Ps. 2,062.9 million reported for 1H16. This was mainly a consequence of higher Income from Discontinued Operations. The Equity Shareholders Income for the period amounted to Ps.1,494.2million, an increase of 21.7% compared with June 2016.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 149.2 million in 2017, an increase of 18.2% from Ps. 126.2 million reported for 1H16. Out of the total CAPEX in 1H17, 70.7% was allocated to the Broadcasting and Programming segment, 29.3% to the Printing and Publishing segment and the remaining 7.2% to other activities.
Debt profile (1): Debt coverage ratio for the period ended June 30th, 2017 was .7x and the Net Debt at the end of this period totaled Ps. 426.4 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 2017
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 1,097.7 | 1,916.2 | 37.3 | (83.7) | 2,967.5 | 47.2% |
Circulation | 1,499.3 | - | - | (119.1) | 1,380.1 | 22.0% |
Printing | 100.8 | 15.7 | - | (2.2) | 114.3 | 1.8% |
Programming | - | 558.2 | - | - | 558.2 | 8.9% |
Other Sales
| 259.9 | 395.8 | 761.7 | (155.6) | 1,261.8 | 20.1% |
Total Sales | 2,957.6 | 2,885.8 | 799.0 | (360.6) | 6,281.8 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2016
(In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
Advertising | 994.2 | 1,330.6 | 35.2 | (54.4) | 2,305.5 | 47.7% |
Circulation | 1,357.8 | - | - | (3.6) | 1,354.3 | 28.0% |
Printing | 179.4 | - | - | (0.0) | 179.4 | 3.7% |
Programming | - | 281.6 | - | - | 281.6 | 5.8% |
Other Sales
| 77.3 | 302.6 | 488.5 | (157.1) | 711.3 | 14.7% |
Total Sales | 2,608.7 | 1,914.8 | 523.7 | (215.1) | 4,832.1 | 100.0% |
RESULTS BY BUSINESS SEGMENT
BROADCASTING AND PROGRAMMING
Net Sales
Net sales increased by 50.7% to Ps. 2,885.8 million in 1H17, compared to Ps. 1,914.8 million in 1H16. The increase was primarily the result of higher advertising and programming sales related to Canal Trece and Radio Mitre.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 57.8% to Ps. 1,736.7 million in 1H17, compared to Ps. 1,100.6 million in 1H16. This is attributable mainly to higher programming costs and salaries.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 27.3% to Ps. 519.9 million in 1H17, compared to Ps. 408.6 million in 1H16. The increase was primarily the result of higher salaries and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 37.3% to Ps. 38.9 million in 1H17 compared to Ps. 28.3 million reported in 1H16.
PRINTING AND PUBLISHING
Net Sales
The 13.4% increase of Net Sales to Ps. 2,957.6 million in 1H17, was the result of higher sales in circulation and advertising.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 21.6% to Ps. 1,893.3 million in 1H17, compared to Ps. 1,557.6 million in 1H16. The increase was mainly the result of higher severance payments, printing and distribution costs.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 26.4% to Ps. 1,333.8 million in 1H17, compared to the Ps. 1,055.0 million reported for 1H16. This was primarily the result of higher salaries, distribution costs and fees for services.
Depreciation and Amortization
Depreciation and amortization expenses increased by 42.2% to Ps. 58.1 million in 1H17 compared to Ps. 40.9 million in 1H16.
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, e-commerce 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 52.6% to Ps. 799.0 , from Ps. 523.7 million reported in 1H16, due to higher sales in digital content, e-commerce and Gestión Compartida. EBITDA resulted in Ps. (58.3) million.
OPERATING STATISTICS BY BUSINESS SEGMENT
PRINTING AND PUBLISHING
1H17 | 1H16 | YoY | 2Q17 | 1Q17 | 2Q16 | QoQ | YoY | |
Circulation (1) | 214.1 | 242.3 | (11.6%) | 216.7 | 211.6 | 237.3 | 2.4% | (8.7%) |
Circulation share % (2) | 39.5% | 40.5% | (2.6%) | 38.8% | 40.1% | 40.5% | (3.2%) | (4.1%) |
Advertising share %(3) | 50.6% | 52.7% | (3.9%) | 49.9% | 51.3% | 50.3% | (2.8%) | (0.8%) |
(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
1H17 | 1H16 | YoY | 2Q17 | 1Q17 | 2Q16 | QoQ | YoY | |
Advertising Share % (1) | 37.9% | 38.2% | (0.7%) | 38.9% | 36.2% | 38.6% | 7.5% | 0.7% |
Audience Share % (2) | ||||||||
Prime Time | 34.8% | 31.8% | 9.2% | 37.2% | 32.1% | 31.4% | 15.7% | 18.4% |
Total Time | 32.0% | 30.1% | 6.1% | 33.4% | 30.4% | 31.1% | 10.0% | 7.6% |
(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
1H17 | 1H16 | YoY | |
Page Views (1) | 979.7 | 880.2 | 11.3% |
Unique Visitors(1) | 66.8 | 62.5 | 6.8% |
(1)In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
(In millions of Ps.) | June 2017 | March 2017 | % Change | December 2017 | % Change |
Short Term and Long Term Debt | |||||
Current Financial Debt | 580.5 | 627 | (7%) | 354.0 | 64% |
Financial loans | 196.5 | 120.9 | 63% | 134.1 | 47% |
Accrued interest | 8.3 | 3.7 | 128% | 3.5 | 138% |
Acquisition of equipment | 4.1 | 3.8 | 9% | 3.6 | 15% |
Sellers Financing Capital | 13.0 | 13.1 | 0% | 14.3 | -9% |
Related Parties Capital | 1.2 | - | NA | - | NA |
Bank overdraft | 357.4 | 485.8 | 63% | 198.6 | 80%
|
Non-Current Financial Debt | 502.2 | 442.6 | 13% | 469.2 | 7% |
Financial loans | 486.2 | 63.2 | 669% | 83.4 | 483% |
Acquisition of equipment | 6.3 | 7.4 | (14%) | 8.5 | (26%)
|
Related Parties Capital | 9.6 | 371.9 | (97%) | 377.3 | (97%)
|
Total Financial Debt (A) | 1,082.7 | 1,069.8
| 1% | 823.2
| 32%
|
Cash and Cash Equivalents (B) | 656.4 | 780.4 | (16%) | 101.4 | (9%) |
Net Debt (A) - (B) | 426.4 | 289.4 | 47% | 721.8 | 321% |
Net Debt/Adjusted Ebitda (1) | 0.27x | NA | (51.7%) | 0.1x | (36.9%) |
Total Financial Debt(1) and Net Debt, increased 1% from Ps. 1,070 million to Ps. 1,083 million and 47% from Ps. 289.4 million to Ps. 426.4 million respectively.
Debt coverage ratio (1) as of June 30th, 2017 was 0.27x in the case of Net Debt and of 0.7x 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.
Investor Relations Contacts | ||
In Buenos Aires: | In London: | In New York: |
Agustín Medina Manson Patricio Gentile | Alex Money
| 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]
|
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)
| 238.9 |
GCLA (LSE) Price per GDS (USD) | 27.4 |
Total Shares | 287,418,584 |
Total GDSs | 143,709,292 |
Market Value (USD MM) | 3,937.6 |
Closing Price | August 10th, 2017 |
CONFERENCE CALL AND WEBCAST INFORMATION
Grupo Clarín S.A. will host a conference call and webcast presentation to discuss its results for the Second Quarter of 2017 on Friday, August 11, 2017.
Time: 12:00pm Buenos Aires Time/4:00pm London Time/11:00am New York Time.
Those interested in connecting via conference call are invited to please dial 1-800-311-9404 toll free from the U.S., 0-800-444-7657 from Argentina, or 1 (334) 323-7224 from elsewhere 5-10 minutes prior to the start time. The Conference ID is 9011. To access the simultaneous webcast presentation, please direct your browser to: https://www.webcaster4.com/Webcast/Page/1117/22067
There will be a two weeks 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 1-334-323-0140 from anywhere outside the U.S. The replay passcode is: 82365434
The PDF version of the webcast presentation will be available at http://www.grupoclarin.com/ir prior to the call, on August 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 printing and publishing and broadcasting and programming markets. 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 PERIODS ENDED JUNE 30, 2017 AND 2016, AND FOR THE THREE-MONTH PERIODS BEGINNING ON APRIL 1
AND ENDED ON JUNE 30, 2017 AND 2016
In Argentine Pesos (Ps.)
June 30, 2017 | June 30, 2016 |
April 1, 2017 through June 30, 2017 |
April 1, 2016 through June 30, 2016 | ||||
Revenues | 6,281,834,700 | 4,832,119,144 | 3,606,014,916 | 2,746,230,471 | |||
Cost of Sales (1) | (4,123,848,793) | (2,993,057,969) | (2,219,224,361) | (1,621,499,661) | |||
Subtotal - Gross Profit | 2,157,985,907 | 1,839,061,175 | 1,386,790,555 | 1,124,730,810 | |||
Selling Expenses (1) | (978,538,717) | (754,339,124) | (523,784,045) | (400,711,696) | |||
Administrative Expenses (1) | (992,458,271) | (782,990,811) | (529,422,953) | (448,715,423) | |||
Other Income and Expenses, net | 60,324,560 | 13,889,141 | 26,880,803 | 6,896,904 | |||
Financial Costs | (105,134,610) | (117,778,689) | (54,273,260) | (64,663,104) | |||
Other Financial Results, net | (99,853,014) | (42,142,836) | (58,972,807) | (16,755,328) | |||
Financial Results | (204,987,624) | (159,921,525) | (113,246,067) | (81,418,432) | |||
Equity in Earnings from Affiliates and Subsidiaries | 83,833,175 | 30,360,179 | 26,690,598 | 7,529,607 | |||
Income before Income Tax and Tax on Assets | 126,159,030 | 186,059,035 | 273,908,891 | 208,311,770 | |||
Income Tax and Tax on Assets | (49,274,758) | (101,150,309) | (99,433,609) | (94,126,211) | |||
Income for the period from continuing operations | 76,884,272 | 84,908,726 | 174,475,282 | 114,185,559 | |||
Discontinued Operations | |||||||
Net Income from Discontinued Operations | 2,366,560,702 | 1,977,983,637 | 462,487,207 | 835,536,508 | |||
Income for the period | 2,443,444,974 | 2,062,892,363 | 636,962,489 | 949,722,067 | |||
Other Comprehensive Income | |||||||
Items which may be reclassified to net income | |||||||
Variation in Translation Differences of Foreign Operations from Continuing Operations | 2,271,971 | 6,409,830 | 1,603,393 | (1,254,006) | |||
Variation in Translation Differences of Foreign Operations from Discontinued Operations | (77,530,768) | 55,023,184 | 27,217,660 | 13,359,639 | |||
Other Comprehensive Income for the period | (75,258,797) | 61,433,014 | 28,821,053 | 12,105,633 | |||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 2,368,186,177 | 2,124,325,377 | 665,783,542 | 961,827,700 | |||
Profit Attributable to: | |||||||
Shareholders of the Parent Company | 1,494,174,040 | 1,227,753,295 | 445,517,396 | 595,043,467 | |||
Non-Controlling Interests | 949,270,934 | 835,139,068 | 191,445,093 | 354,678,600 | |||
Total Comprehensive Income Attributable to: | |||||||
Shareholders of the Parent Company | 1,463,810,439 | 1,277,202,305 | 462,115,034 | 602,739,301 | |||
Non-Controlling Interests | 904,375,738 | 847,123,072 | 203,668,508 | 359,088,399 | |||
Basic and Diluted Earnings per Share from Continuing Operations (See Note 10) | 0.39 | 0.30 | 1.02 | 0.40 | |||
Basic and Diluted Earnings per Share from Discontinued Operations (See Note 10) | 6.19 | 3.97 | 1.65 | 1.67 | |||
Basic and Diluted Earnings per Share - Total (See Note 10) | 6.58 | 4.27 | 2.67 | 2.07 | |||
(1) Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 114,411,984 and Ps. 80,463,516 for the six-month periods ended June 30, 2017 and 2016, respectively.
The notes are an integral part of these interim condensed consolidated financial statements.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of June 30th, available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2017 AND DECEMBER 31, 2016
In Argentine Pesos (Ps.)
June 30, 2017 | December 31, 2016 | ||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, Plant and Equipment | 857,874,806 | 780,775,774 | |
Intangible Assets | 222,071,203 | 221,713,090 | |
Goodwill | 270,923,529 | 270,923,529 | |
Deferred Tax Assets | 715,464,918 | 532,896,812 | |
Investments in Unconsolidated Affiliates | 391,646,359 | 368,314,257 | |
Other Investments | - | 7,412,878 | |
Inventories | 33,572,882 | 15,805,039 | |
Other Assets | 1,948,925 | 2,122,552 | |
Other Receivables | 168,049,632 | 159,206,993 | |
Trade Receivables | 97,648,264 | 99,857,137 | |
Total Non-Current Assets | 2,759,200,518 | 2,459,028,061 | |
CURRENT ASSETS | |||
Inventories | 705,817,447 | 901,013,829 | |
Other Assets | 43,168,404 | 11,838,743 | |
Other Receivables | 1,116,820,567 | 486,550,805 | |
Trade Receivables | 3,692,746,317 | 3,582,782,739 | |
Other Investments | 415,229,964 | 328,346,695 | |
Cash and Banks | 260,100,235 | 416,006,084 | |
Total Current Assets | 6,233,882,934 | 5,726,538,895 | |
Assets Held for Distribution to Shareholders | - | 28,082,220,838 | |
Total Assets | 8,993,083,452 | 36,267,787,794 | |
EQUITY (as per the corresponding statement) | |||
Attributable to Shareholders of the Parent Company | |||
Shareholders' Contributions | 746,952,203 | 2,010,638,503 | |
Other Items | (20,992,689) | 755,638,189 | |
Accumulated Income | 3,273,274,555 | 6,860,110,364 | |
Total Attributable to Shareholders of the Parent Company | 3,999,234,069 | 9,626,387,056 | |
Attributable to Non-Controlling Interests | 32,719,127 | 4,416,373,963 | |
Total Shareholders' Equity | 4,031,953,196 | 14,042,761,019 | |
LIABILITIES | |||
NON-CURRENT LIABILITIES | |||
Provisions and Other | 255,105,860 | 228,252,293 | |
Debt | 502,193,110 | 469,172,621 | |
Deferred Tax Liabilities | 838,256 | 209,849 | |
Taxes Payable | 63,094,762 | 59,188,405 | |
Other Liabilities | 61,343,577 | 61,662,068 | |
Trade Payables and Other | 36,079,777 | 27,347,968 | |
Total Non-Current Liabilities | 918,655,342 | 845,833,204 | |
CURRENT LIABILITIES | |||
Debt | 567,555,298 | 339,731,089 | |
Seller Financings | 12,992,225 | 14,256,467 | |
Taxes Payable | 270,871,510 | 296,868,894 | |
Other Liabilities | 356,492,966 | 508,464,913 | |
Trade Payables and Other | 2,834,562,915 | 2,958,209,807 | |
Total Current Liabilities | 4,042,474,914 | 4,117,531,170 | |
Liabilities Held for Distribution to Shareholders | - | 17,261,662,401 | |
Total Liabilities | 4,961,130,256 | 22,225,026,775 | |
Total Equity and Liabilities | 8,993,083,452 | 36,267,787,794 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2017 AND 2016
In Argentine Pesos (Ps.)
Equity attributable to Shareholders of the Parent Company | Equity Attributable to Non-Controlling Interests | |||||||||||||||
Shareholders' Contributions | Other Items | Accumulated Income | 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) | Retained Earnings | Total Equity | |||||||
Balances as of January 1st, 2017 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 814,523,312 | (58,885,123) | 119,460,767 | 4,210,607,765 | 2,530,041,832 | 9,626,387,056 | 4,416,373,963 | 14,042,761,019 | ||||
Set-up of reserves (Note 9.a.) | - | - | - | - | - | - | - | 2,050,041,832 | (2,050,041,832) | - | - | - | ||||
Dividend Distribution (Note 9.a.) | - | - | - | - | - | - | - | - | (480,000,000) | (480,000,000) | - | (480,000,000) | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (662,836,071) | (662,836,071) | ||||
Income for the period | - | - | - | - | - | - | - | - | 1,494,174,040 | 1,494,174,040 | 949,270,934 | 2,443,444,974 | ||||
Spun-off Balances (See Note 14) | (180,642,580) | (194,762,882) | (888,280,838) | (1,263,686,300) | (749,470,539) | 3,203,262 | (75,081,092) | (3,691,570,698) | (834,358,059) | (6,610,963,426) | (4,625,194,503) | (11,236,157,929) | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | (30,363,601) | - | - | - | - | (30,363,601) | (44,895,196) | (75,258,797) | ||||
Balances as of June 30, 2017 | 106,776,004 | 115,122,371 | 525,053,828 | 746,952,203 | 34,689,172 | (55,681,861) | 44,379,675 | 2,569,078,899 | 659,815,981 | 3,999,234,069 | 32,719,127 | 4,031,953,196 | ||||
Balances as of January 1st, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 595,897,405 | (3,653,767) | 119,460,767 | 2,625,678,396 | 1,884,929,369 | 7,232,950,673 | 3,175,288,997 | 10,408,239,670 | ||||
Set-up of reserves | - | - | - | - | - | - | - | 1,584,929,369 | (1,584,929,369) | - | - | - | ||||
Dividend Distribution | - | - | - | - | - | - | - | - | (300,000,000) | (300,000,000) | - | (300,000,000) | ||||
Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | - | (614,031,016) | (614,031,016) | ||||
Income for the period | - | - | - | - | - | - | - | - | 1,227,753,295 | 1,227,753,295 | 835,139,068 | 2,062,892,363 | ||||
Other Comprehensive Income: | ||||||||||||||||
Variation in Translation Differences of Foreign Operations | - | - | - | - | 49,449,010 | - | - | - | - | 49,449,010 | 11,984,004 | 61,433,014 | ||||
Balances as of June 30, 2016 | 287,418,584 | 309,885,253 | 1,413,334,666 | 2,010,638,503 | 645,346,415 | (3,653,767) | 119,460,767 | 4,210,607,765 | 1,227,753,295 | 8,210,152,978 | 3,408,381,053 | 11,618,534,031 | ||||
(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 1,071,751,261; (ii) Judicial reserve for future dividend distribution of Ps. 387,028,756, (iii) Optional reserve for illiquidity of results of Ps. 257,959,160, (iv) Optional reserve to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of Ps. 462,249,181, and (v) Optional reserve to ensure the liquidity of the Company and its subsidiaries of Ps. 390,090,541.
June 30, 2017 | June 30, 2016 | |||
CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Income for the period | 2,443,444,974 | 2,062,892,363 | ||
Income Tax and Tax on Assets | 49,274,758 | 101,150,309 | ||
Accrued Interest, net | 90,221,540 | 66,614,664 | ||
Adjustments to reconcile net income for the period to cash provided by operating activities: | ||||
Depreciation of Property, Plant and Equipment | 69,792,148 | 50,588,753 | ||
Amortization of Intangible Assets and Film Library | 44,619,837 | 29,874,763 | ||
Net allowances | 74,165,165 | 55,710,956 | ||
Financial Income, except interest | (3,610,471) | (53,008,412) | ||
Equity in Earnings from Affiliates and Subsidiaries | (83,833,175) | (30,360,179) | ||
Other Income and Expenses | (13,197,524) | (6,005,548) | ||
Net Income from Discontinued Operations | (2,366,560,702) | (1,977,983,637) | ||
Changes in Assets and Liabilities: | ||||
Trade Receivables | (276,611,794) | (211,432,228) | ||
Other Receivables | (704,727,435) | (354,281,318) | ||
Inventories | 175,497,682 | (232,335,098) | ||
Other Assets | (32,126,409) | 1,897,477 | ||
Trade Payables and Other | 15,706,895 | (70,110,750) | ||
Taxes Payable | (73,946,089) | 6,076,363 | ||
Other Liabilities | 311,438,012 | 181,697,731 | ||
| Provisions | (45,361,521) | (41,866,817) | |
| Income Tax and Tax on Assets Payments | (169,891,904) | (39,763,280) | |
| Net Cash Flows Provided by Discontinued Operating Activities | 3,398,556,976 | 3,734,775,859 | |
| ||||
| Net Cash Flows Provided by Operating Activities | 2,902,850,963 | 3,274,131,971 | |
| ||||
| CASH PROVIDED BY INVESTMENT ACTIVITIES | |||
| Acquisition of Property, Plant and Equipment, net | (149,166,223) | (126,202,334) | |
| Acquisition of Intangible Assets | (42,923,370) | (43,455,529) | |
| Payments for Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates | - | (964,250) | |
| Dividends collected | 17,000,000 | 500,000 | |
| Collection of Interest | - | 50,547,297 | |
| Proceeds from Sale of Property, Plant and Equipment | 16,435,050 | 25,986,896 | |
| Transactions with Securities, Bonds and Other Financial Instruments, Net | 4,262,471 | 70,102 | |
| Collections of Certificates of Deposit | - | 10,417,602 | |
| Net Cash Flows used in Discontinued Investment Activities | (3,185,408,150) | (5,515,331,853) | |
| ||||
| Net Cash Flows used in Investment Activities | (3,339,800,222) | (5,598,432,069) | |
| ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | |||
| Loans Obtained | 935,917,196 | 463,903,747 | |
| Repayment of Loans and Issue Expenses | (337,166,793) | (106,948,003) | |
| Payment of Interest | (61,439,176) | (63,408,755) | |
| Payment of Dividends | (480,000,000) | (300,000,000) | |
| Payments to Non-Controlling Interests, net | (7,649,539) | (10,471,721) | |
| Net Cash Flows (used in) / provided by Discontinued Financing Activities | (396,395,065) | 1,477,187,364 | |
| ||||
| Net Cash Flows (used in) / provided by Financing Activities | (346,733,377) | 1,460,262,632 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR CONTINUING OPERATIONS | 55,029,029 | 54,388,441 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS FOR DISCONTINUED OPERATIONS | 36,860,464 | 642,980,463 | |
| ||||
| FINANCING RESULTS GENERATED BY CASH AND CASH EQUIVALENTS | 91,889,493 | 697,368,904 | |
| ||||
| Net decrease in cash flow | (691,793,143) |
| (166,668,562) |
| Cash and Cash Equivalents at the Beginning of the Year | 3,350,687,278 |
| 2,705,563,078 |
| Spun-off Balances of Cash and Cash Equivalents (See Note 14) | (2,002,522,766) |
| - |
| Effect of Consolidation of Companies | - |
| 2,052,951,267 |
| Cash and Cash Equivalents at the Closing of the Period (Note 2.4) | 656,371,369 |
| 4,591,845,783 |
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