RNS Number : 5753F
Grupo Clarin S.A.
10 March 2020
 

Grupo Clarín Announces Fourth Quarter and

 Full Year 2019 Results

 

Buenos Aires, Argentina, March 9, 2020 - 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 2019 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") as of December 31, 2019 and are stated in Argentine Pesos ("Ps"), unless otherwise indicated. 

(*) The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the financial statements.

 

Highlights (2019 vs. 2018):

§ Total Revenues reached Ps. 25,429.3 million, a decrease of 14.1% compared to 2018, mainly due to lower advertising revenues in all segments and lower circulation in the Printing and Publishing segment.

§ Adjusted EBITDA (1) reached Ps. 1,652.0 million, a decrease of 16.7% compared to 2018, mainly driven by lower EBITDA results in the Broadcasting and Programming segment.

§ Grupo Clarín's Adjusted EBITDA Margin (2) was 6.5% in December 2019, compared to 6.7% in 2018.

§ Loss for the period totaled Ps. 1,459.1 million, compared to Ps. 1,357.4 million Loss reported in 2018. Loss for the period attributable to Equity Shareholders amounted Ps 1,507.3 million in 2019.

FINANCIAL HIGHLIGHTS

(In millions of Ps.)

2019

2018

% Ch.

4Q19

3Q19

4Q18

QoQ

YoY

Total Revenues

 25,429.3

 29,619.0

(14.1%)

 6,077.1

 6,730.1

 7,430.0

 (9.7%)

(18.2%)

Adjusted EBITDA (1)

 1,652.0

 1,982.7

(16.7%)

 (17.3)

 719.6

 63.9

 (102.4%)

(127.1%)

Adjusted EBITDA Margin (2)

6.5%

6.7%

 (2.9%)

(0.3%)

 10.7%

0.9%

 (102.7%)

(133.1%)

Income for the period

 (1,459.1)

 (1,357.4)

 (7.5%)

 (657.9)

 (510.9)

 (1,296.9)

 (28.8%)

 49.3%

Attributable to:

 

 

 

 

 

 

 

 

Equity Shareholders

 (1,507.3)

 (1,316.8)

(14.5%)

 (799.3)

 (489.3)

 (1,293.2)

 63.3%

 38.2%

Non-Controlling Interests

 48.2

 (40.7)

218.6%

141.4

 (21.6)

 (3.8)

 (755.3%)

NA

 

(1)  We define Adjusted EBITDA as Total Revenues 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 based on 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 Total Revenues.

 

 

 

 

 

 

 

OPERATING RESULTS

 

Total Revenues reached Ps. 25,429.3 million, a decrease of 14.1% from Ps. 29,619.0 million in 2018. Advertising revenues decreased 15% and represented approximately 45% of the Total Revenues of the Company. Circulation revenues decreased 14% and represented 27% of the Total.

 

Following is a breakdown of Total Revenues by business segment:

 

REVENUES

 

(In millions of Ps.)

2019

2018

YoY

4Q19

3Q19

4Q18

QoQ

YoY

Printing and Publishing

12,517.7

14,345.2

(12.7%)

2,906.7

3,370.7

3,454.1

(13.8%)

(15.8%)

Broadcasting and Programming

11,567.4

13,123.3

(11.9%)

2,903.7

3,081.3

3,572.2

(5.8%)

(18.7%)

Digital Content and Others

2,688.4

3,833.2

(29.9%)

517.6

653.0

878.1

(20.7%)

(41.0%)

Subtotal

26,773.5

31,301.7

(14.5%)

6,328.0

7,105.0

7,904.4

(10.9%)

(19.9%)

Eliminations

(1,344.2)

(1,682.7)

(20.1%)

(250.9)

(375.0)

(474.4)

(33.1%)

(47.1%)

Total

25,429.3

29,619.0

(14.1%)

6,077.1

6,730.1

7,430.0

(9.7%)

(18.2%)

 

 

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 15,994.5 million, a decrease of 14.6% from Ps. 18,727.9 million reported in 2018 due to lower costs across all business segments, mainly in Printing and Publishing segment due to lower salaries and printing costs.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 7,782.8 million, a decrease of 12.6% from Ps. 8,908.4 million in 2018. This drop was mainly due to lower fees for services and salaries across all business segments.

 

Adjusted EBITDA reached Ps. 1,652.0 million, a decrease of 16.7% from Ps. 1,982.7 million reported for 2018. This decrease was driven mainly by lower advertising revenues across all business segments.

 

Following is a breakdown of adjusted EBITDA by business segment:

 

ADJUSTED EBITDA

(In millions of Ps.)

2019

2018

YoY

4Q19

3Q19

4Q18

QoQ

YoY

Printing and Publishing

(93.6)

(144.8)

35.4%

(127.1)

50.9

(187.4)

(350.0%)

(32.2%)

Broadcasting and Programming

2,012.8

2,265.0

(11.1%)

320.5

257.9

435.4

24.3%

(26.4%)

Digital Content and Others

(267.3)

(137.5)

94.4%

(210.6)

(39.0)

(184.1)

(439.6%)

(14.4%)

Total

 

1,652.0

 

 

1,982.7

 

 

(16.7%)

 

 

(17.3)

 

 

269.7

 

 

63.9

 

 

(106.4%)

 

 

(127.1%)

 

 

 

Financial results net totaled Ps. (1,418.7) million compared to Ps. (1,944.3) million in 2018. The decrease of the negative financial results was mainly due to a lower impact of the peso depreciation on dollar denominated debt.

 

Equity in earnings from unconsolidated affiliates in 2019 totaled Ps. 175.7 million, compared to Ps. 256.5 million in 2018.

 

Other Income (expenses), net reached Ps. (80.6) million, compared to Ps. 496.8 million in 2018.

 

Income tax as of 2019 reached Ps. (667.7) million, from Ps. (1,034.1) million in 2018.

 

Loss for the period totaled Ps. 1,459.1 million, compared to Ps. 1,357.4 million Loss reported in 2018. This was mainly due to a lower EBITDA in the Broadcasting and Programming segment. The Equity Shareholders Loss for the period amounted Ps. 1,507.3 million.

 

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 749.4 million in 2019, an increase of 6.5% from Ps. 703.7 million reported in 2018. Out of the total CAPEX in 2019, 70.9% was allocated towards the Broadcasting and Programming segment, 25.5% to the Printing and Publishing segment and the remaining 3.6% to other activities.  

 

Debt profile (1): Debt coverage ratio for the period ended December 31, 2019 was 1.1x and the Net Cash position at the end of this period totaled Ps. 341 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 2019

 

(In millions of Ps.)

Printing & Publishing

Broadcasting

& Programming

Digital Content

& Others

Eliminations

Total

%

Advertising

 3,792.7

 7,614.9

 92.4

 (159.9)

 11,340.0

44.6%

Circulation

 6,890.4

-

  -

 -  

 6,890.4

27.1%

Printing

 626.8

 -

     -

 (59.2)

 567.6

2.2%

Programming

-

 3,817.4

-

 -  

 3,817.4

15.0%

Other Sales

 

 1,207.8

 135.2

 2,194.2

 (1,125.1)

 2,412.0

9.5%

Total Sales

 12,517.7

 11,567.4

   2,688.4

 (1,344.2)

 25,429.3

100.0%

 

SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2018

 

(In millions of Ps.)

Printing & Publishing

Broadcasting & Programming

Digital Content

& Others

Eliminations

Total

%

 4,860.8

 8,841.9

 154.2

 13,402.7

45.3%

 7,991.3

-

 2.5

 7,993.8

27.0%

 234.5

-

 36.1

 258.6

0.9%

-

 2,907.0

 -  

 2,904.6

9.8%

 1,258.7

 1,374.4

 3,640.3

 5,059.4

17.1%

 14,345.2

 13,123.3

 3,833.2

 29,619.0

100.0%

 

 

 

RESULTS BY BUSINESS SEGMENT

 

BROADCASTING AND PROGRAMMING

 

Revenues

Revenues decreased by 11.9% to Ps. 11,567.4 million during 2019, compared to Ps. 13,123.3 million in 2018. This was due to lower advertising revenues in constant pesos as of December 2019 in Channel 13 and Radio Mitre.

 

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 10.7% to Ps. 7,360.9 million in 2019, compared to Ps. 8,242.2 million in 2018. The decrease was mainly caused by a higher effect of restatement in salaries and production costs for 2018 versus 2019.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses decreased by 16.1% to Ps. 2,193.7 million in 2019, compared to Ps. 2,616.1 million in 2018. The decline was primarily the result of the greater effect of the restatement of the salaries, contingencies and marketing expenses of 2018 versus 2019, in order to be expressed in homogeneous currency as of December 31, 2019.

 

Depreciation and Amortization

Depreciation and amortization expenses decreased by 0.9% to Ps. 460.3 million during 2019 compared to Ps. 464.4 million reported in 2018.

 

PRINTING AND PUBLISHING

 

Revenues

Total revenues decreased by 12.7% to Ps. 12,517.7 million in 2019, mainly as a result of lower circulation and advertising revenues in real terms (inflation was 53.8% from 2018 to 2019 while circulation and advertising revenues in current pesos increased by approximately 32% and 20%, respectively).  

 

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 14.6% to Ps. 7,260.8 million in 2019, compared to Ps. 8,499.7 million in 2018. The decrease was mainly the result of lower salaries, printing and distribution costs caused by the greater effect of the restatement for 2018.

 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses decreased by 10.7% to Ps. 5,350.4 million in 2019, compared to the Ps. 5,990.3 million reported in 2018. This was primarily the result of lower salaries and fees for services, due to the IAS 29 (inflation) adjustment effect in 2018.

 

Depreciation and Amortization

Depreciation and amortization expenses decreased by 17.9% to Ps. 416.2 million in 2019 compared to Ps. 506.8 million in 2018.

 

 

 

 

DIGITAL CONTENT AND OTHERS

 

Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its 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) was mainly the result of salaries and professional consulting fees.

 

In this period, total revenues decreased 29.9% to Ps. 2,688.4, from Ps. 3,833.2 million reported in 2018, due to lower sales in digital content, retail and revenues from Gestión Compartida. EBITDA resulted negative in Ps. 267.3 million.  

 

OPERATING STATISTICS BY BUSINESS SEGMENT

 

PRINTING AND PUBLISHING

 

2019

2018

YoY

4Q19

3Q19

4Q18

QoQ

YoY

Circulation (1)

 233.5

 231.0

 1.0%

 234.0

 237.4

 232.0

 (1.4%)

 0.8%

Circulation share % (2)

43.7%

41.3%

 5.7%

53.3%

41.4%

48.6%

 28.8%

 9.7%

Advertising share %(3)

53.4%

55.6%

 (4.0%)

51.3%

53.2%

54.0%

 (3.6%)

 (5.0%)

 

(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

 

2019

2018

YoY

4Q19

3Q19

4Q18

QoQ

YoY

Advertising Share % (1)

38.8%

38.4%

 0.9%

39.7%

38.8%

40.1%

 2.5%

 (1.0%)

Audience Share % (2)

 

 

 

 

 

 

 

 

Prime Time

38.4%

34.8%

 10.4%

42.2%

39.4%

33.9%

 7.1%

 24.5%

Total Time

32.9%

32.0%

 3.0%

33.8%

32.7%

32.7%

 3.5%

 3.6%

 

(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

 

2019

2018

 

YoY

Page Views (1)

1,089.2

1,145.9

(5.0%)

Mobile page Views

756.8

723.7

4.6%

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

 

DEBT AND LIQUIDITY

 

(In millions of Ps.)

December 2019

December 2018

% Change

Short Term and Long Term Debt 

 

 

 

Current Financial Debt

 972.2

 1,559.7

 (37.7%)

Financial loans

 635.6

 1,105.2

 (42.5%)

Accrued interest

 18.8

 22.9

 (18.1%)

Acquisition of equipment

 6.8

 9.3

 (26.9%)

Sellers Financing Capital

 -  

 -  

 NA

Related Parties Capital

 -  

 10.5

 (100.0%)

Bank overdraft

 296.4

 403.5

 (26.6%)

Non-Current Financial Debt

 899.2

 244.9

 267.2%

Financial loans

 898.6

 238.4

 276.9%

Acquisition of equipment

 0.5

 6.4

 (91.9%)

Related Parties Capital

 -  

 -  

 NA

Total Financial Debt (A)

 1,871.3

 1,804.6

 3.7%

Total Short Term and Long Term Debt

 1,871.3

 1,804.6

 3.7%

 

 

 

 

Cash and Cash Equivalents (B)

 2,212.3

 1,905.6

 16.1%

Net Debt (A) - (B)

 (341.0)

 (101.0)

 237.7%

Net Debt/Adjusted Ebitda (1)

(0.21x)

(0.08x)

 163.4%

 

Total Financial Debt(1) increased from Ps. 1,804.6 million to Ps. 1,871.3 million. This represents an increase of 3.7%.

 

Debt coverage ratio (1) as of December 31, 2019 was 1.1x 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.

 

 

REVENUES AND EBITDA - IAS 29 Adjustment

 

REVENUES

(In millions of Ps.)

FY19

FY18

YoY

FY19 ex IAS 29

IAS 29 Adjustment

FY19
as reported

FY18 ex IAS 29

IAS 29 Adjustment

FY18
as reported

Printing and Publishing

12,517.7

14,345.2

(12.7%)

10,278.9

2,238.7

12,517.7

7,671.6

6,673.6

14,345.2

Broadcasting and Programming

11,567.4

13,123.3

(11.9%)

9,498.6

2,068.8

11,567.4

7,018.2

6,105.2

13,123.3

Digital Content and Others

2,688.4

3,833.2

(29.9%)

2,207.6

480.8

2,688.4

2,049.9

1,783.3

3,833.2

Subtotal

26,773.5

31,301.7

(14.5%)

21,985.2

4,788.4

26,773.5

16,739.7

14,562.0

31,301.7

Eliminations

(1,344.2)

(1,682.7)

(20.1%)

(1,103.8)

(240.4)

(1,344.2)

(899.9)

(782.8)

(1,682.7)

Total

25,429.3

29,619.0

(14.1%)

20,881.4

4,548.0

25,429.3

15,839.8

13,779.2

29,619.0

 

(In millions of Ps.)

4Q19

4Q18

YoY

4Q19 ex IAS 29

IAS 29 Adjustment

4Q19
as reported

4Q18 ex IAS 29

IAS 29 Adjustment

4Q18
as reported

Printing and Publishing

2,906.7

3,454.1

(15.8%)

2,840.7

66.0

2,906.7

2,186.7

1,267.4

3,454.1

Broadcasting and Programming

2,903.7

3,572.2

(18.7%)

2,793.6

110.2

2,903.7

2,197.5

1,374.8

3,572.2

Digital Content and Others

517.6

878.1

(41.0%)

527.6

 (9.9)

517.6

570.2

307.9

878.1

Subtotal

6,328.0

7,904.4

(19.9%)

6,161.8

166.2

6,328.0

4,954.4

2,950.0

7,904.4

Eliminations

(250.9)

(474.4)

(47.1%)

(257.7)

6.8

(250.9)

 (286.1)

 (188.3)

(474.4)

Total

6,077.1

7,430.0

(18.2%)

5,904.1

172.9

6,077.1

4,668.3

2,761.7

7,430.0

 

EBITDA

 

(In millions of Ps.)

FY19

FY18

YoY

FY19 ex IAS 29

IAS 29 Adjustment

FY19
as reported

FY18 ex IAS 29

IAS 29 Adjustment

FY18
as reported

Printing and Publishing

(93.6)

(144.8)

(35.4%)

(173.3)

79.8

(93.6)

(77.4)

(67.4)

(144.8)

Broadcasting and Programming

2,012.8

2,265.0

(11.1%)

1,647.1

365.7

2,012.8

1,211.3

1,053.7

2,265.0

Digital Content and Others

(267.3)

(137.5)

(94.4%)

(219.5)

(47.8)

(267.3)

(73.5)

(64.0)

(137.5)

Total

1,652.0

1,982.7

(16.7%)

1,254.3

397.7

1,652.0

1,060.3

922.4

1,982.7

 

(In millions of Ps.)

4Q19

4Q18

YoY

4Q19 ex IAS 29

IAS 29 Adjustment

4Q19
as reported

4Q18 ex IAS 29

IAS 29 Adjustment

4Q18
as reported

Printing and Publishing

(127.1)

(187.4)

(32.2%)

(199.3)

72.2

(127.1)

(152.3)

(35.1)

(187.4)

Broadcasting and Programming

320.5

435.4

(26.4%)

337.3

(16.9)

320.5

245.2

190.2

435.4

Digital Content and Others

(210.6)

(184.1)

(14.4%)

(175.6)

(35.0)

(210.6)

(97.1)

(87.0)

(184.1)

Subtotal

(17.3)

63.9

(127.1%)

(37.6)

20.3

(17.3)

(4.2)

68.1

63.9

 

 

 

 

 

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)

 

38

GCLA (LSE) Price per GDS (USD)

 1.89

Total Shares

106,776,004

Total GDSs

53,388,002

Closing Price

March 9, 2020

 

CONFERENCE CALL AND WEBCAST INFORMATION

 

GRUPO CLARIN S.A.

(BCBA: GCLA; LSE: GCLA)

cordially invites you to participate in its conference call and webcast presentation

to discuss Fourth Quarter 2019 Results

 

Date: Friday, March 13, 2020

Time: 12:00pm Buenos Aires Time/3:00pm London Time/11:00am New York Time

 

To access the conference call, please dial:
Argentina Participants: 0-800-666-0250

U.S. Participants: 1-877-830-2576

All other countries: +1-785-424-1726
Passcode: CLARIN

 

The 4Q19 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit:

 

 https://services.choruscall.com/links/gcla200313kageFkUP.html

 

There will be a replay available, for 7 days, starting four hours after the conclusion of the conference call. To access the replay, please dial 1-844-488-7474 toll free from the U.S., or +1-862-902-0129 from anywhere outside the U.S. The replay passcode is: 20236680

 

The webcast presentation will be archived at

http://www.grupoclarin.com/ir

 

Investor Relations Contacts

 

 

In Buenos Aires:

In London:

In New York:

 

 

 

Agustín Medina Manson

 

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: investors@grupoclarin.com

E-mail: alex@jasford.com

E-mail: clarin@i-advize.com

 

 

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 YEARS ENDED DECEMBER 31, 2019 AND 2018

(Amounts stated in Argentine Pesos)

 

 

December 31, 2019

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

25,429,344,898

 

29,618,970,836

 

 

 

 

Cost of Sales (1)

(16,915,475,101)

 

(19,586,311,455)

 

 

 

 

Subtotal - Gross Profit

8,513,869,797

 

10,032,659,381

 

 

 

 

Selling Expenses (1)

(4,189,364,459)

 

(4,765,405,960)

Administrative Expenses (1)

(3,792,433,224)

 

(4,399,487,667)

 

 

 

 

Other Income and Expenses, net

(80,575,575)

 

496,797,127

 

 

 

 

 

 

 

 

Gain (Loss) on Net Monetary Position

(189,284,827)

 

(543,492,838)

 

 

 

 

Financial Costs

(1,107,853,414)

 

(1,253,813,185)

Other Financial Results, net

(121,549,333)

 

(147,038,818)

Financial Results

(1,418,687,574)

 

(1,944,344,841)

 

 

 

 

Equity in Earnings from Associates

175,743,713

 

256,493,039

 

 

 

 

Income (Loss) before Income Tax and Tax on Assets

(791,447,322)

 

(323,288,921)

 

 

 

 

Income Tax and Tax on Assets

(667,655,406)

 

(1,034,146,548)

 

 

 

 

Loss for the year

(1,459,102,728)

 

(1,357,435,469)

 

 

 

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

Items which can be reclassified to Net Income (Loss)

 

 

 

Variation in Translation Differences of Foreign Operations

(4,248,078)

 

(23,912,573)

Other Comprehensive Income (Loss) for the Year

(4,248,078)

 

(23,912,573)

 

 

 

 

TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR

(1,463,350,806)

 

(1,381,348,042)

 

 

 

 

(Loss) Income Attributable to:

 

 

 

 

 

 

 

Shareholders of the Parent Company

(1,507,321,349)

 

(1,316,783,360)

 

 

 

 

Non-Controlling Interests

48,218,621

 

(40,652,109)

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss) Attributable to:

 

 

 

 

 

 

 

Shareholders of the Parent Company

(1,506,618,896)

 

(1,304,064,832)

 

 

 

 

Non-Controlling Interests

43,268,090

 

(77,283,210)

 

 

 

 

Basic and Diluted Net Income (Loss) per Share - Total (2)

(14.12)

 

(12.33)

 

 

 

 

 

Includes amortization of intangible assets and film library, right-of-use assets and depreciation of property, plant and equipment in the amount of $ 1,119,936,055 and $ 1,114,899,460 for the years ended December 31, 2019 and 2018, respectively.

 

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31, 2019, available at http://www.grupoclarin.com/ir.

 

 

 

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF DECEMBER 31, 2019 AND 2018

(Amounts stated in Argentine Pesos)

 

 

 

December 31, 2019

 

December 31, 2018

ASSETS

 

 

 

NON-CURRENT ASSETS

 

 

 

Property, Plant and Equipment

5,571,376,722

 

5,557,670,333

Intangible Assets

423,960,663

 

735,307,939

Goodwill

931,226,046

 

997,431,184

Deferred Tax Assets

493,272,693

 

442,995,375

Right-of-Use Assets

94,119,976

 

-

Investments in Unconsolidated Affiliates

1,662,760,431

 

1,591,862,306

Inventories

17,977,726

 

35,265,857

Other Assets

34,249,102

 

23,793,621

Other Receivables

262,972,174

 

380,356,209

Trade Receivables

41,760,402

 

115,694,641

Total Non-Current Assets

9,533,675,935

 

9,880,377,465

 

 

 

 

CURRENT ASSETS

 

 

 

Inventories

1,312,240,977

 

1,811,099,905

Other Assets

119,105,777

 

121,794,495

Other Receivables

1,531,756,574

 

1,453,986,776

Trade Receivables

5,801,328,805

 

8,205,204,446

Other Investments

706,657,555

 

1,124,599,616

Cash and Banks

1,505,711,157

 

837,803,248

Total Current Assets

10,976,800,845

 

13,554,488,486

 

 

 

 

Total Assets

20,510,476,780

 

23,434,865,951

 

 

 

 

EQUITY (as per the corresponding statement)

 

 

 

Attributable to Shareholders of the Parent Company

 

 

 

Shareholders' Contribution

10,654,277,122

 

12,592,657,973

Other Items

23,200,891

 

22,498,438

Retained Earnings

(410,310,791)

 

(841,370,293)

Total Attributable to Shareholders of the Parent Company

10,267,167,222

 

11,773,786,118

 

 

 

Attributable to Non-Controlling Interests

206,532,949

 

187,560,998

Total Equity

10,473,700,171

 

11,961,347,116

 

 

 

 

LIABILITIES

 

 

 

NON-CURRENT LIABILITIES

 

 

 

Provisions and Other Charges

797,199,139

 

709,521,531

Financial Debt

899,158,203

 

244,852,313

Lease Liabilities

26,567,303

 

-

Deferred Tax Liabilities

282,077,367

 

299,751,005

Taxes Payable

28,939,328

 

65,753,387

Other Liabilities

183,083,336

 

186,350,481

Trade and Other Payables

67,655,876

 

113,038,949

Total Non-Current Liabilities

2,284,680,552

 

1,619,267,666

 

 

 

 

CURRENT LIABILITIES

 

 

 

Financial Debt

972,165,353

 

1,559,178,182

Lease Liabilities

67,308,843

 

-

Taxes Payable

526,744,021

 

430,501,631

Other Liabilities

814,729,617

 

820,491,119

Trade and Other Payables

5,371,148,223

 

7,044,080,237

Total Current Liabilities

7,752,096,057

 

9,854,251,169

 

 

 

 

Total Liabilities

10,036,776,609

 

11,473,518,835

 

 

 

 

Total Equity and Liabilities

20,510,476,780

 

23,434,865,951

 

 

 

 

 

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

(Amounts stated in Argentine Pesos - Note 2.1.1)

 

Equity attributable to Shareholders of the Parent Company

 

 

 

 

 

Shareholders' Contribution

 

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

Voluntary Reserves

Retained Earnings

 

 

Total Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of January 1st 2018

106,776,004

3,650,439,491

8,835,442,478

12,592,657,973

 

128,385,630

(168,511,722)

 

125,791,615

7,281,905,132

(6,900,359,470)

 

13,059,869,158

 

322,582,774

 

13,382,451,932

Change in Accounting Policy (Note 2.3.1)

-

-

-

-

 

-

-

 

-

-

(31,924,210)

 

(31,924,210)

 

-

 

(31,924,210)

Balances as of January 1, 2018, restated

106,776,004

3,650,439,491

8,835,442,478

12,592,657,973

 

128,385,630

(168,511,722)

 

125,791,615

7,281,905,132

(6,932,283,680)

 

13,027,944,948

 

322,582,774

 

13,350,527,722

Set-up of Reserves (Note 13)

-

-

-

-

 

-

-

 

-

1,934,515,227

(1,934,515,227)

 

-

 

-

 

-

Dividends and Other Movements of Non-Controlling Interest

-

-

-

-

 

-

49,906,002

 

-

-

-

 

49,906,002

 

(57,738,566)

 

(7,832,564)

Loss for the year

-

-

-

-

 

-

-

 

-

-

(1,316,783,360)

 

(1,316,783,360)

 

(40,652,109)

 

(1,357,435,469)

Other Comprehensive Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variation in Translation Differences of Foreign Operations

-

-

-

-

 

12,718,528

-

 

-

-

-

 

12,718,528

 

(36,631,101)

 

(23,912,573)

Balances as of December 31, 2018

106,776,004

3,650,439,491

8,835,442,478

12,592,657,973

 

141,104,158

(118,605,720)

 

125,791,615

9,216,420,359

(10,183,582,267)

 

11,773,786,118

 

187,560,998

 

11,961,347,116

Set-up of Reserves (Note 13)

-

-

(1,938,380,851)

(1,938,380,851)

 

-

-

 

(125,791,615)

(8,119,409,801)

10,183,582,267

 

-

 

-

 

-

Dividends and Other Movements of Non-Controlling Interest

-

-

-

-

 

-

-

 

-

-

-

 

-

 

(24,296,139)

 

(24,296,139)

Loss for the year

-

-

-

-

 

-

-

 

-

-

(1,507,321,349)

 

(1,507,321,349)

 

48,218,621

 

(1,459,102,728)

Other Comprehensive Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variation in Translation Differences of Foreign Operations

-

-

-

-

 

702,453

-

 

-

-

-

 

702,453

 

(4,950,531)

 

(4,248,078)

Balances as of December 31, 2019

(1)106,776,004

3,650,439,491

6,897,061,627

10,654,277,122

 

141,806,611

(118,605,720)

 

-

(2) 1,097,010,558

(1,507,321,349)

 

10,267,167,222

 

206,532,949

 

10,473,700,171

                                     

 

(1) Includes 1,485 treasury shares. See Note 12 to the separate financial statements.

(2) Corresponds to Judicial Reserve for Future Dividends Distribution as of December 31, 2019.

 

 

 

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

(Amounts stated in Argentine Pesos)

 

 

 

December 31, 2019

 

December 31, 2018

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES

 

 

 

 

Loss for the year

(1,459,102,728)

 

(1,357,435,469)

Income Tax and Tax on Assets

667,655,406

 

1,034,146,548

Accrued Interest, net

538,189,738

 

420,439,352

Adjustments to reconcile Net Loss for the Year to Cash provided by Operating Activities:

 

 

 

Depreciation of Property, Plant and Equipment

716,805,023

 

766,936,689

Amortization of Intangible Assets and Film Library

280,594,584

 

347,962,771

Amortization of Right-of-Use Assets

122,536,451

 

-

Net Allowances

501,824,449

 

485,612,190

Financial Income, except Interest

154,864,805

 

313,138,965

Equity in Earnings from Associates

(175,743,713)

 

(256,493,039)

Gain (Loss) on Net Monetary Position

189,284,827

 

543,492,838

Other Income and Expenses

(33,127,482)

 

(534,917,549)

Changes in Assets and Liabilities:

 

 

 

Trade Receivables

(1,337,946,164)

 

(1,661,765,526)

Other Receivables

(840,658,599)

 

(834,311,980)

Inventories

246,417,179

 

(155,297,502)

Other Assets

(16,753,504)

 

53,668,767

Trade and Other Payables

2,156,560,730

 

3,006,191,174

Taxes Payable

(269,674,444)

 

(274,766,130)

Other Liabilities

451,376,602

 

172,263,931

 

Provisions

(138,826,092)

 

(134,680,994)

 

Income Tax and Tax on Assets Payments

(344,169,496)

 

(794,616,545)

 

 

 

 

 

 

Net Cash Flows provided by Operating Activities

1,410,107,572

 

1,139,568,491

 

 

 

 

 

 

CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES

 

 

 

 

Payments for Acquisition of Property, Plant and Equipment

(749,442,582)

 

(1,082,524,024)

 

Payments for Acquisition of Intangible Assets

(123,638,758)

 

(265,736,236)

 

Payments for Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates

(161,364)

 

(103,932,319)

 

Proceeds from Sale of Property, Plant and Equipment and Intangible Assets

23,014,519

 

119,034,064

 

Dividends Collected from Investments in Unconsolidated Affiliates

138,384,872

 

204,173,899

 

Loans Granted

(61,134,552)

 

-

 

Proceeds from Sale of Other Assets

6,132,708

 

-

 

Collection from Credit Assignment (See Note 6.6)

-

 

497,863,186

 

Transactions with Notes, Bonds and Other Placements, Net

156,479,442

 

41,062,398

 

 

 

 

 

 

Net Cash Flows used in Investment Activities

(610,365,715)

 

(590,059,032)

 

 

 

 

 

 

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES

 

 

 

 

Loans Obtained

2,312,507,482

 

970,049,783

 

Payment of Financial Debt

(1,799,539,219)

 

(1,436,508,454)

 

Payment of Interest

(616,121,250)

 

(482,212,919)

 

Payment of Lease Liabilities

(136,455,226)

 

-

 

Payments to Non-Controlling Interests, net

(12,134,491)

 

(19,946,000)

 

 

 

 

 

 

Net Cash Flows used in Financing Activities

(251,742,704)

 

(968,617,590)

 

 

 

 

 

 

FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS

(241,250,250)

 

(65,062,220)

 

 

 

 

 

 

 

 

 

 

 

Net Increase / (Decrease) in cash flow

306,748,903

 

(484,170,351)

 

Cash and Cash Equivalents at the Beginning of the Year (Note 2.24)

1,905,553,149

 

2,389,723,500

 

Cash and Cash Equivalents at the Closing of the Year (Note 2.24)

2,212,302,052

 

1,905,553,149

         

 

 


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