Grupo Clar�n Announces Fourth Quarter and
�Full Year 2019 Results
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Buenos Aires, Argentina, March 9, 2020�- Grupo Clar�n S.A. ("Grupo Clar�n" 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 Comisi�n Nacional de Valores ("CNV"), establishes that the restatement will be applied to the financial statements.
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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 Clar�n'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 |
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(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.
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OPERATING RESULTS
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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.
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Following is a breakdown of Total Revenues by business segment:
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REVENUES
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| (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%) |
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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.
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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.
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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.
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Following is a breakdown of adjusted EBITDA by business segment:
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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%) � |
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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.
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Equity in earnings from unconsolidated affiliates in 2019 totaled Ps. 175.7 million, compared to Ps. 256.5 million in 2018.
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Other Income (expenses), net reached Ps. (80.6) million, compared to Ps. 496.8 million in 2018.
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Income tax as of 2019 reached Ps. (667.7) million, from Ps. (1,034.1) million in 2018.
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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.
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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. �
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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.
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(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.
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SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2019
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| (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% |
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SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2018
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| (In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
| Advertising | �4,860.8 | �8,841.9 | �154.2 | �(454.3) | �13,402.7 | 45.3% |
| Circulation | �7,991.3 | - | �2.5 | �-�� | �7,993.8 | 27.0% |
| Printing | �234.5 | - | �36.1 | �(12.0) | �258.6 | 0.9% |
| Programming | - | �2,907.0 | �-�� | �(2.4) | �2,904.6 | 9.8% |
| Other Sales � | �1,258.7 | �1,374.4 | �3,640.3 | �(1,214.1) | �5,059.4 | 17.1% |
| Total Sales | �14,345.2 | �13,123.3 | �3,833.2 | �(1,682.7) | �29,619.0 | 100.0% |
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RESULTS BY BUSINESS SEGMENT
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BROADCASTING AND PROGRAMMING
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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.
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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.
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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.
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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.
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PRINTING AND PUBLISHING
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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).��
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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.
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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.
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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.
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DIGITAL CONTENT AND OTHERS
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Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gesti�n 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.
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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 Gesti�n Compartida. EBITDA resulted negative in Ps. 267.3 million. �
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OPERATING STATISTICS BY BUSINESS SEGMENT
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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%) |
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(1)�Average number of copies according to IVC (including Diario Clar�n and Ol�)
(2)�Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clar�n. Source: AGEA and IVC.
(3)�Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clar�n. Source: Monitor de Medios Publicitarios S.A.
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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% |
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(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.
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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.
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DEBT AND LIQUIDITY
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| (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% |
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Total Financial Debt(1) increased from Ps. 1,804.6 million to Ps. 1,871.3 million. This represents an increase of 3.7%.
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Debt coverage ratio (1) as of December 31, 2019 was 1.1x in terms of Total Financial Debt.
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(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.
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REVENUES AND EBITDA - IAS 29 Adjustment
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REVENUES
| (In millions of Ps.) | FY19 | FY18 | YoY | FY19 ex IAS 29 | IAS 29 Adjustment | FY19 | FY18 ex IAS 29 | IAS 29 Adjustment | FY18 |
| 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 |
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| (In millions of Ps.) | 4Q19 | 4Q18 | YoY | 4Q19 ex IAS 29 | IAS 29 Adjustment | 4Q19 | 4Q18 ex IAS 29 | IAS 29 Adjustment | 4Q18 |
| 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 |
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EBITDA
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| (In millions of Ps.) | FY19 | FY18 | YoY | FY19 ex IAS 29 | IAS 29 Adjustment | FY19 | FY18 ex IAS 29 | IAS 29 Adjustment | FY18 |
| 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 |
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| (In millions of Ps.) | 4Q19 | 4Q18 | YoY | 4Q19 ex IAS 29 | IAS 29 Adjustment | 4Q19 | 4Q18 ex IAS 29 | IAS 29 Adjustment | 4Q18 |
| 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 |
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STOCK AND MARKET INFORMATION
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Grupo Clar�n 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.
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| � | � |
| 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 |
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CONFERENCE CALL AND WEBCAST INFORMATION
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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
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Date: Friday, March 13, 2020
Time: 12:00pm Buenos Aires Time/3:00pm London Time/11:00am New York Time
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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
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The 4Q19 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit:
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�https://services.choruscall.com/links/gcla200313kageFkUP.html
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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
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The webcast presentation will be archived at
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| Investor Relations Contacts | � | � |
| In Buenos Aires: | In London: | In New York: |
| � | � | � |
| Agust�n Medina Manson � | Alex Money � | Melanie Carpenter � |
| � | � | � |
| Grupo Clar�n 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] � |
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ABOUT THE COMPANY
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Grupo Clar�n is the largest media company in Argentina and a leading company in printing and publishing and broadcasting and programming markets. Its flagship newspaper -Diario Clar�n- is one of the highest circulation newspapers in Latin America. Grupo Clar�n 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.
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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 Clar�n. 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 Clar�n 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 Clar�n's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clar�n's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clar�n and its operations.
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GRUPO CLAR�N S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
(Amounts stated in Argentine Pesos)
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| � | 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) |
| � | � | � | � |
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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.
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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.
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GRUPO CLAR�N S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2019 AND 2018
(Amounts stated in Argentine Pesos)
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| � | 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 |
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GRUPO CLAR�N 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 | |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
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(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.
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GRUPO CLAR�N S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
(Amounts stated in Argentine Pesos)
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| � | 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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