Results for the Fourth Quarter and Full Year 2016

Grupo Clarín announces its

 Results for the Fourth Quarter (4Q16) and Full Year of 2016 (FY16)

Buenos Aires, Argentina, March 13th, 2017 - 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 2016. 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.

Grupo Clarín will retain substantially all assets and liabilities, and continue with substantially all the activities and operations of its remaining business segments that are not be specifically allocated to CVH.

Accordingly, the Company Financial Statements as of December 2016 presented the figures of the Cable, Internet Access and Telephony segment as discontinued operations for all periods; all the activities and operations of its remaining business segments are consolidated as continued operations. This is the result of the implementation of International Financial Reporting Standards ("IFRS") number 5.

In spite of that, for the purpose of this presentation, figures have been prepared including continued and discontinued operations. For further information about continued and discontinued operations, see the appendix of this presentation or our Financial Statements as of December 2016.

Highlights (FY16 vs. FY15):

§ Net Sales totaled Ps. 41,178.1 million, an increase of 48.2% from 2015, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, driven by the consolidation of Nextel Argentina in the Cable TV, Internet access and Telephony segment.

§ Adjusted EBITDA (1) reached Ps. 11,896.6 million, an increase of 42.3% from 2015, mainly driven by higher sales in the Cable and Internet access and Telephony segment.

§ Grupo Clarín's Adjusted EBITDA Margin (2) for 2016 was 28.9%, compared to 30.1% in 2015.

§ Income for the period totaled Ps. 4,179.6 million, an increase of 43.3% from the Ps. 2,915.9 million reported in 2015, and the Income for the period attributable to Equity Shareholders amount to Ps 2,530.0 million from Ps. 1,884.9 million, an increase of 34.2%.

FINANCIAL HIGHLIGHTS

(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. 41,178.1 million, an increase of 48.2% from Ps. 27,791.5 million in 2015 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, driven by the consolidation of Nextel Argentina in the Cable TV, Internet access and Telephony segment.

Following is a breakdown of Net Sales by business segment:

NET SALES

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 18,227.7 million, an increase of 48.7% from Ps. 12,258.7 million reported for 2015 due to higher costs across all business segments, mainly in Cable TV and Internet access and Telephony because of the consolidation of the Mobile Argentine operations (Nextel Argentina).

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 11,053.8 million, an increase of 54.1% from Ps. 7,172.0 million in 2015. This increase was mainly due to higher costs and the consolidation of Nextel in the Cable TV, Internet access and Telephony segment.

Adjusted EBITDA reached Ps. 11,896.6 million, an increase of 42.3% from Ps. 8,360.8 million reported for 2015, driven by higher sales in Cable TV, Internet access and Telephony and to a lesser extent, to higher EBITDA in the Broadcasting and Programming segment.

Following is a breakdown of adjusted EBITDA by business segment:

ADJUSTED EBITDA

Financial results net totaled Ps. (2,857.2) million compared to Ps. (3,064.4) million for 2015. The decrease of the negative result was mainly due to lower peso depreciation during 2016, which went from Ps 13.04 per dollar at the end of December 2015, to Ps 15.89 per dollar as of December 31th, 2016; compared with the 2015 with went from Ps 8.55 per dollar at the end of December 2014 to Ps. 13.04 per dollar as of December 31th, 2015.

Equity in earnings from unconsolidated affiliates in 2016 totaled Ps. 160.2 million, compared to Ps. 544.6 million for 2015.

Other Income (expenses), net reached Ps. 158.1 million, compared to Ps. 99.9 million in 2015.

Income tax as of December 2016 reached Ps. (2,333.7) million, from Ps. (1,229.5) million in December 2015.

Income for the period totaled Ps. 4,179.6 million, an increase of 43.3% from Ps. 2,915.9 million reported for 2015. This was mainly a consequence of higher EBITDA in the Cable TV, Internet access and Telephony and Broadcasting and Programming segments, and it was partially offset by negative EBITDA in the Printing and Publishing segment. The Equity Shareholders Income for the period amounted to Ps.2,530.0 million, an increase of 34.2% compared with December 2015.

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 9,355.1 million in 2016, an increase of 117.2% from Ps. 4,306.5 million reported for 2015. Out of the total CAPEX in 2016, 96.7% was allocated to the Cable TV, Internet access and Telephony segment, 2.2% to the Broadcasting and Programming segment and the remaining 1.2% to other activities. Capex in the Cable TV, Internet access and Telephony segment pertains to subscriber growth, network upgrades and digitalization.

Debt profile (1): Debt coverage ratio for the period ended December 31th, 2016 was .84x and the Net Debt at the end of this period totaled Ps. 6,711.1 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 - DECEMBER 2016

SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2015

RESULTS BY BUSINESS SEGMENT

CABLE TV AND INTERNET ACCESS AND TELEPHONY

Net Sales

Net sales increased by 51.9% to Ps. 30,571.2 million for 2016 compared to Ps. 20,125.4 million for 2015. The increase is mostly attributable to an increase in subscription charges (Cable TV and Internet) registered during the last twelve months and also reflects the growth in Cable (on average), Broadband and Digital subscribers and the consolidation of Nextel Argentina. Total Consolidated Cable TV basic subscribers reached 3,527,674 as of December 2016, compared to the 3,532,577 reported for the same date in 2015. Internet subscribers reached 2,182,598 in December 2016, compared to the 2,025,860 of December 2015.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased (including the consolidation of Nextel Argentina) by 52.1% to Ps. 11,849.0 million for December 2016, compared to Ps. 7,791.6 million in December 2015. This was mainly due to higher programming costs, network expenses and fixed assets maintenance costs.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased (including the consolidation of Nextel Argentina) by 54.6% to Ps. 7,791.3 million for 2016, compared to Ps. 5,039.1 million reported in 2015. This increase is driven by higher taxes, duties and contributions, salaries and fees for services.

Depreciation and Amortization

Depreciation and amortization expenses increased by 60.0% to Ps. 2,660.9 million for 2016 from Ps. 1,663.3 million reported in 2015.

BROADCASTING AND PROGRAMMING

Net Sales

Net sales increased by 36.1% to Ps. 4,899.9 million in 2016, compared to Ps. 3,601.4 million in 2015. 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 36.0% to Ps. 2,731.0 million in 2016, compared to Ps. 2,007.9 million in 2015. This is attributable mainly to higher salaries, fees for services, rights and programming costs.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 50.9% to Ps. 967.3 million in 2016, compared to Ps. 641.1 million in 2015. The increase was primarily the result of higher fees for services and salaries. 

Depreciation and Amortization

Depreciation and amortization expenses increased by 49.9% to Ps. 66.3 million in 2016 compared to Ps. 44.2 million reported in 2015.

PRINTING AND PUBLISHING

Net Sales

The 34.2% increase of Net Sales to Ps. 5,775.8 million in 2016, was the result of higher sales in advertising and circulation.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 39.8% to Ps. 3,455.9 million in 2016, compared to Ps. 2,472.4 million in 2015. The increase was mainly the result of higher salaries, severance payments and printing costs.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 41.1% to Ps. 2,424.6 million in 2016, compared to the Ps. 1,718.5 million reported for 2015. This was primarily the result of higher salaries, fees for services and severance payments.

Depreciation and Amortization

Depreciation and amortization expenses increased by 30.8% to Ps. 88.7 million in 2016 compared to Ps. 67.8 million in 2015.

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 66.6% to Ps. 1,268.0, from Ps. 761.0 million reported in 2015, due to higher sales in digital content, e-commerce, Gestión Compartida and revenues from trade fairs and exhibitions business. EBITDA resulted in Ps. (131.1) million.

OPERATING STATISTICS BY BUSINESS SEGMENT

CABLE TV AND INTERNET ACCESS

TELEPHONY

(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

(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

(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

(1)In millions. Average. Source DAX and Company Estimates.

DEBT AND LIQUIDITY

Total Financial Debt(1) and Net Debt, increased from Ps. 6,969.7 million to Ps. 10,061.8 million and from Ps. 4,264.1 million to Ps. 6,711.1 million respectively. This represents an increase of 57.4% in the Total Debt and an increase of 57.4% in the Net Debt.

Debt coverage ratio (1) as of December 31th, 2016 was 0.56x in the case of Net Debt and of 0.84x 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.

APPENDIX

NET SALES

ADJUSTED EBITDA

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.

CONFERENCE CALL AND WEBCAST INFORMATION

Grupo Clarín S.A. will host a conference call and webcast presentation to discuss its results for the Fourth Quarter of 2016 on Monday, March 13, 2017.

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 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/1117/19733

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: 33860231

The PDF version of the webcast presentation will be available at http://www.grupoclarin.com/ir prior to the call, on March 13th, 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, 2016 AND 2015

In Argentine Pesos (Ps.)

(1)Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of Ps. 183,484,509 and Ps. 132,219,465 for the years ended December 31, 2016 and 2015, respectively.

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31th, available at http://www.grupoclarin.com/ir.

GRUPO CLARÍN S.A.

CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016 AND 2015

In Argentine Pesos (Ps.)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

In Argentine Pesos (Ps.)

(1) Broken down as follows: (i) Optional reserve for future dividends of Ps. 1,884,929,369; (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. 1,244,277,741.