Grupo Clarín Announces Fourth Quarter and
Full Year 2018 Results
Buenos Aires, Argentina, March 11, 2019 - 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 2018 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") and are stated in constant Argentine Pesos as of December 31, 2018, 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 annual financial statements, for intermediate and special periods ended as of December 31, 2018 inclusive
Highlights (FY18 vs.FY17):
§ Total Revenues reached Ps. 19,254.1 million, a decrease of 16.1% compared to 2017, mainly due to lower advertising revenues in the Broadcasting and Programming and the Printing and Publishing segments.
§ Adjusted EBITDA (1) reached Ps. 1,288.8 million, a decrease of 29.2% compared to 2017, mainly driven by a lower EBITDA in the Broadcasting and Programming segment.
§ Grupo Clarín's Adjusted EBITDA Margin (2) was 6.7% in 2018, compared to 7.9% in 2017.
§ Income for the period 2018 totaled Ps. (882.4) million, a decrease of 141.7% compared to Ps. 2,113.8 million reported in 2017 (includes Cablevisión's results). Income for the period attributable to Equity Shareholders amounted Ps (856) million in 2018 from Ps. 1,106.7 million in 2017, a 177.3% decline.
FINANCIAL HIGHLIGHTS
|
|
|
|
|
| (In millions of Ps.) | 2018 | 2017 | % Ch. |
| Total Revenues | 19,254.1 | 22,947.4 | (16.1%) |
| Adjusted EBITDA (1) | 1,288.8 | 1,819.5 | (29.2%) |
| Adjusted EBITDA Margin (2) | 6.7% | 7.9% | (15.6%) |
| Income for the period | (882.4) | 2,113.8 | (141.7%) |
| Attributable to: |
|
|
|
| Equity Shareholders | (856.0) | 1,106.7 | (177.3%) |
| Non-Controlling Interests | (26.4) | 1,007.1 | (102.6%) |
(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. 19,254.1 million, a decrease of 16.1% from Ps. 22,947.4 million in 2017. Advertising revenues decrease by 25% in real terms, mainly due to the Argentine GDP plunge during the second half of the year, affected overall advertising investment.
Following is a breakdown of Total Revenues by business segment:
REVENUES
| (In millions of Ps.) | 2018 | 2017 | YoY | 2018 ex IAS 29 | IAS 29 Adjustment | 2018 as reported | 2017 ex IAS 29 | IAS 29 Adjustment | 2017 |
| Printing and Publishing | 9,325.2 | 10,821.6 | (13.8%) | 7,671.6 | 1,653.6 | 9,325.2 | 6,669.1 | 4,152.5 | 10,821.6 |
| Broadcasting and Programming | 8,530.9 | 10,609.7 | (19.6%) | 7,018.2 | 1,512.8 | 8,530.9 | 6,560.7 | 4,049.0 | 10,609.7 |
| Digital Content and Others | 2,491.8 | 2,838.3 | (12.2%) | 2,049.9 | 441.9 | 2,491.8 | 1,738.0 | 1,100.3 | 2,838.3 |
| Subtotal | 20,347.9 | 24,269.5 | (16.2%) | 16,739.7 | 3,608.2 | 20,347.9 | 14,967.8 | 9,301.8 | 24,269.5 |
| Eliminations | (1,093.9) | (1,322.1) | (17.3%) | (899.9) | (194.0) | (1,093.9) | (810.0) | (512.1) | (1,322.1) |
| Total | 19,254.1 | 22,947.4 | (16.1%) | 15,839.8 | 3,414.2 | 19,254.0 | 14,157.8 | 8,789.7 | 22,947.4 |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 12,174.2 million, a decrease of 14.3% from Ps. 14,209.2 million reported in 2017 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. 5,791.0 million, a decrease of 16.3% from Ps. 6,918.7 million in 2017. This drop was mainly due to lower salaries in the Printing and Publishing segment and, to a lesser extent, driven by higher salaries for services in the Broadcasting and Programming segment.
Adjusted EBITDA reached Ps. 1,288.8 million, a decrease of 29.2% from Ps. 1,819.5 million reported for 2017. This result was driven by higher effect of the restatement of FY17 vs. FY18 revenues, generating an EBITDA margin contraction.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
| (In millions of Ps.) | 2018 | 2017 | YoY | 2018 ex IAS 29 | IAS 29 Adjustment | 2018 as reported | 2017 ex IAS 29 | IAS 29 Adjustment | 2017as reported |
| Printing and Publishing | (94.1) | (461.9) | (79.6%) | (77.4) | (16.7) | (94.1) | (205.3) | (256.6) | (461.9) |
| Broadcasting and Programming | 1,472.4 | 2,526.9 | (41.7%) | 1,211.3 | 261.1 | 1,472.4 | 1,659.6 | 867.3 | 2,526.9 |
| Digital Content and Others | (89.4) | (245.4) | (63.6%) | (73.5) | (15.9) | (89.4) | (128.3) | (117.1) | (245.4) |
| Total | 1,288.8 | 1,819.5 | (29.2%) | 1,060.3 | 228.5 | 1,288.8 | 1,325.9 | 493.6 | 1,819.5 |
Financial results net totaled Ps. (1,263.9) million compared to Ps. (817.3) million in 2017. This increase of the negative result was mainly due to the impact of the peso depreciation on dollar denominated debt.
Equity in earnings from unconsolidated affiliates in 2018 totaled Ps. 166.7 million, compared to Ps. 29.3 million in 2017.
Other Income (expenses), net reached Ps. 322.9 million, compared to Ps. 120.2 million in 2017.
Income tax as of 2018 reached Ps. (672.3) million, from Ps. (1,003.0) million in 2017.
Income from Discontinued Operations, reached Ps. 2,366.6 million in 2017 (related with Cablevision's results).
Income (Loss) for the period totaled Ps.(882.4) million, a decrease of 141.7% from Ps. 2,113.8 million reported in 2017. This was mainly due to lower results from discontinued operations, since the results of Cablevisión were included as of discontinued operations in 2017, during 2018 Cablevisión was no longer consolidated. Equity Shareholders Income for the period amounted Ps. (856.0) million, a decrease of 177.3% YoY.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 703.7 million in 2018, an increase of 12.3% from Ps. 626.8 million reported in 2017. Out of total CAPEX for2018, 70.7% was allocated towards the Broadcasting and Programming segment, 25.2% to the Printing and Publishing segment and the remaining 4.1% to other activities.
Debt profile (1): Debt coverage ratio for the period ended December 31, 2018 was 0.9x and the Net Debt at the end of this period totaled Ps. (65.6) million.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA. Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2018
| (In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
| Advertising | 3,159.8 | 5,747.8 | 100.3 | (295.3) | 8,712.5 | 45.3% |
| Circulation | 5,194.8 | - | 0.8 | - | 5,196.5 | 27.0% |
| Printing | 152.4 | - | 23.4
| (7.8) | 168.1 | 0.9% |
| Programming | - | 1,889.7 | - | (1.6) | 1,888.1 | 9.8% |
| Other Sales
| 818.2 | 893.5 | 2,366.4 | (789.2) | 3,288.9 | 17.1% |
| Total Sales | 9,325.2 | 8,530.9 | 2,491.8 | (1,093.9) | 19,254.1 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2017
| (In millions of Ps.) | Printing & Publishing | Broadcasting & Programming | Digital Content & Others | Eliminations | Total | % |
| Advertising | 4,224.1 | 7,557.5 | 90.1 | (328.1) | 11,543.5 | 50.3% |
| Circulation | 5,313.6 | - | - | - | 5,313.6 | 23.2% |
| Printing | 439.8 | 15.7 | - | (10.3) | 429.6 | 1.9% |
| Programming | - | 2,004.8 | - | (0.6) | 2,004.3 | 8.7% |
| Other Sales
| 844.1 | 1,047.4 | 2,748.2 | (983.2) | 3,656.5 | 15.9% |
| Total Sales | 10,821.6 844.1 | 10,609.7 1,047.4 | 2,838.3 2,748.2 | (1,322.1) | 22,947.4 3,656.5 | 100.0% |
RESULTS BY BUSINESS SEGMENT
BROADCASTING AND PROGRAMMING
Revenues
Revenues decreased by 19.6% to Ps. 8,530.9 million in 2018, compared to Ps. 10,609.7 million in 2017. This was due to lower advertising revenues in constant pesos as of December 2018 in Channel 13 and Radio Mitre.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales decreased by 14.0% to Ps. 5,357.9 million in 2018, compared to Ps. 6,228.4 million in 2017. The decrease was mainly caused by a higher effect of restatement in salaries and production cost for 2017 versus 2018, which was partially offset by salaries increases during 2018.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses decreased by 8.3% to Ps. 1,700.6 million in 2018, compared to Ps. 1,854.5 million in 2017. The drop was primarily the result of the greater effect of the restatement of the salaries, marketing expenses and fees for services of 2017 versus 2018, in order to be expressed in homogeneous currency as of December 31.
Depreciation and Amortization
Depreciation and amortization expenses increased by 28.6% to Ps. 301.9 million in 2018 compared to Ps. 234.7 million reported in 2017.
PRINTING AND PUBLISHING
Revenues
Total revenues declined -13.8% to Ps. 9,325.2 million in 2018, mainly as a result of lower advertising revenues in real terms (inflation was 47% in 2018 while advertising revenues in current pesos stood flat).
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales decreased by 15.4% to Ps. 5,525.3 million in 2018, compared to Ps. 6,529.4 million in 2017. The decrease was mainly the result of lower severance payment, salaries and printing costs caused by the greater effect of the restatement in 2017.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses decreased by 18.1% to Ps. 3,894.0 million in 2018, compared to the Ps. 4,754.1 million reported in 2017. This was primarily the result of lower salaries and fees for services, due to the IAS 29 (inflation) adjustment effect in 2017.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 4.0% to Ps. 329.5 million in 2018 compared to Ps. 343.3 million in 2017.
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 were 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 12.2% to Ps. 2,491.8, compare to Ps. 2,838.3 million reported in 2017. This decrease corresponds mainly to the greater effect of the restatement of digital content and revenues from Gestión Compartida of 2017 versus 2018. EBITDA resulted negative in Ps. 89.4 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
PRINTING AND PUBLISHING
|
| 2018 | 2017 | YoY | 4Q18 | 3Q18 | 4Q17 | QoQ | YoY |
| Circulation (1) | 231.0 | 221.3 | 4.4% | 232.0 | 232.7 | 233.2 | (0.3%) | (0.5%) |
| Circulation share % (2) | 39.0% | 39.5% | (1.4%) | 39.2% | 39.1% | 39.7% | 0.2% | (1.3%) |
| Advertising share %(3) | 55.6% | 52.2% | 6.6% | 54.0% | 55.5% | 53.1% | (2.7%) | 1.6% |
(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
|
| 2018 | 2017 | YoY | 4Q18 | 3Q18 | 4Q17 | QoQ | YoY |
| Advertising Share % (1) | 38.4% | 40.0% | (4.0%) | 40.1% | 38.3% | 42.8% | 4.7% | (6.3%) |
| Audience Share % (2) |
|
|
|
|
|
|
|
|
| Prime Time | 34.8% | 38.3% | (9.3%) | 33.9% | 37.0% | 40.8% | (8.5%) | (17.0%) |
| Total Time | 32.0% | 33.7% | (5.3%) | 32.7% | 32.9% | 35.2% | (0.9%) | (7.3%) |
(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
|
| 2018 | 2017
| YoY |
| Page Views (1) | 1,145.9 | 1,140.9 | 0.4% |
| Mobile page Views | 723.7 | 599.7 | 21.0% |
|
|
|
|
|
(1)In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
| (In millions of Ps.) | December 2018 | December 2017 | % Change | September 2018 | % Change |
| Short Term and Long Term Debt |
|
|
|
|
|
| Current Financial Debt | 1,013.9 | 487.1 | 108.2% | 1,193.7 | (15.1%) |
| Financial loans | 718.4 | 309.1 | 132.4% | 834.8 | (13.9%) |
| Accrued interest | 14.9 | 10.3 | 45.1% | 26.6 | (44.0%) |
| Acquisition of equipment | 6.1 | 4.6 | 30.3% | 6.5 | (6.4%) |
| Sellers Financing Capital | - | 0.0 | (100.0%) | - | NA |
| Related Parties Capital | 6.8 | - | NA | - | NA |
| Bank overdraft | 262.3 | 163.0 | 60.9% | 325.8 | (19.5%) |
| Non-Current Financial Debt | 159.2 | 546.8 | (70.9%) | 323.6 | (50.8%) |
| Financial loans | 155.0 | 531.6 | (70.8%) | 305.9 | (49.3%) |
| Acquisition of equipment | 4.2 | 4.4 | (4.2%) | 6.1 | (31.5%) |
| Related Parties Capital | - | 10.8 | (100.0%) | 6.8 | (100.0%) |
| Total Financial Debt (A) | 1,173.1 | 1,033.9 | 13.5% | 1,517.3 | (22.7%) |
| Total Short Term and Long Term Debt | 1,173.1 | 1,033.9 | 13.5% | 1,517.3 | (22.7%) |
|
|
|
|
|
|
|
| Cash and Cash Equivalents (B) | 1,238.7 | 1,052.1 | 17.7% | 1,311.6 | (5.6%) |
| Net Debt (A) - (B) | (65.6) | (18.2) | 260.3% | 205.7 | (131.9%) (131.9%) |
| Net Debt/Adjusted Ebitda (1) | (0.05x) | (0.01x) | 467.1% | 0.12x | (141.7%) |
Total Financial Debt(1) increased from Ps. 1,033.9 million to Ps. 1,173.1 million and Net Debt decreased from Ps. (18.2) million to Ps. (65.6) million respectively. This represents an increase of 13.5% in the Total Debt.
Debt coverage ratio (1) as of December 31, 2018 was (0.05x) in the case of Net Debt and of 0.9x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA. Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
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)
| 44.9 |
| GCLA (LSE) Price per GDS (USD) | 2.3 |
| Total Shares | 106,776,004 |
| Total GDSs | 53,388,002 |
| Market Value (USD MM) | 122.8 |
| Closing Price | March 11, 2019 |
| 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: [email protected] | E-mail: [email protected] | E-mail: [email protected]
|
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 2018 Results
Date: Thursday, March 14, 2019
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 4Q18 results will be accompanied by a webcast presentation. Link for presentation only (slides with no audio); participants in the conference call via telephone:
https://webcasts.eqs.com/grupoclarin2019031417/no-audio
Link for conference call via webcast only (live stream of audio and slide presentation):
https://webcasts.eqs.com/register/grupoclarin2019031417
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: 71445825
The webcast presentation will be archived at http://www.grupoclarin.com.ar/ir
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, 2018 AND 2017
(Amounts stated in Argentine Pesos - Note 2.1.1)
|
| December 31, 2018 |
| December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues | 19,254,052,103 |
| 22,947,443,105 |
|
|
|
|
|
| Cost of Sales (1) | (12,732,240,541) |
| (14,732,118,198) |
|
|
|
|
|
| Subtotal - Gross Profit | 6,521,811,562 |
| 8,215,324,907 |
|
|
|
|
|
| Selling Expenses (1) | (3,097,790,776) |
| (3,528,654,165) |
| Administrative Expenses (1) | (2,859,922,623) |
| (3,519,012,565) |
|
|
|
|
|
| Other Income and Expenses, net | 322,947,000 |
| 120,168,871 |
|
|
|
|
|
| Inflation Adjustment Gain (Loss) | (353,301,925) |
| (5,876,963) |
|
|
|
|
|
| Financial Costs | (815,051,425) |
| (469,334,701) |
| Other Financial Results, net | (95,583,776) |
| (342,117,695) |
| Financial Results | (1,263,937,126) |
| (817,329,359) |
|
|
|
|
|
| Equity in Earnings from Associates | 166,735,379 |
| 29,314,575 |
|
|
|
|
|
| Income before Income Tax and Tax on Assets | (210,156,584) |
| 499,812,264 |
|
|
|
|
|
| Income Tax and Tax on Assets | (672,255,347) |
| (1,003,032,663) |
|
|
|
|
|
| Loss for the period from continuing operations | (882,411,931) |
| (503,220,399) |
|
|
|
|
|
| Discontinued Operations |
|
|
|
|
|
|
|
|
| Net Income from Discontinued Operations | - |
| 2,616,993,320 |
|
|
|
|
|
| (Loss) / Income for the year | (882,411,931) |
| 2,113,772,921 |
|
|
|
|
|
|
|
|
|
|
| Other Comprehensive Income |
|
|
|
|
|
|
|
|
| Items which can be reclassified to net income |
|
|
|
| Variation in Translation Differences of Foreign Operations from Continuing Operations | (15,544,562) |
| (4,232,544) |
| Variation in Translation Differences of Foreign Operations from Discontinued Operations | - |
| (136,999,993) |
| Other Comprehensive Income for the Year | (15,544,562) |
| (141,232,537) |
|
|
|
|
|
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (897,956,493) |
| 1,972,540,384 |
|
|
|
|
|
| Income Attributable to: |
|
|
|
|
|
|
|
|
| Shareholders of the Parent Company | (855,985,698) |
| 1,106,709,608 |
|
|
|
|
|
| Non-Controlling Interests | (26,426,233) |
| 1,007,063,313 |
|
|
|
|
|
| Total Comprehensive Income Attributable to: |
|
|
|
|
|
|
|
|
| Shareholders of the Parent Company | (847,717,916) |
| 1,045,841,526 |
|
|
|
|
|
| Non-Controlling Interests | (50,238,577) |
| 926,698,858 |
|
|
|
|
|
| Basic and Diluted Net Income (Loss ) per Share from Continuing Operations (2) | (8.02) |
| (2.75) |
|
|
|
|
|
| Basic and Diluted Net Income (Loss) per Share from Discontinued Operations (2) | - |
| 9.38 |
|
|
|
|
|
| Basic and Diluted Net Income (Loss) per Share - Total (2) | (8.02) |
| 6.63 |
|
|
|
|
|
(1)Includes amortization of intangible assets and film library, and depreciation of property, plant and equipment in the amount of $ 724,749,432 and
$ 651,854,747 for the years ended December 31, 2018 and 2017, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31st , available at http://www.grupoclarin.com/ir.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2018 AND 2017
|
| December 31, 2018 |
| December 31, 2017 |
| ASSETS |
|
|
|
| NON-CURRENT ASSETS |
|
|
|
| Property, Plant and Equipment | 3,612,808,654 |
| 3,465,024,197 |
| Intangible Assets | 477,992,886 |
| 534,213,602 |
| Goodwill | 648,388,227 |
| 698,035,664 |
| Deferred Tax Assets | 287,972,736 |
| 437,064,737 |
| Investments in Unconsolidated Affiliates | 1,034,802,997 |
| 986,374,643 |
| Inventories | 22,924,856 |
| 31,861,594 |
| Other Assets | 15,467,236 |
| 19,321,913 |
| Other Receivables | 247,253,637 |
| 311,481,923 |
| Trade Receivables | 75,208,239 |
| 133,738,970 |
| Total Non-Current Assets | 6,422,819,468 |
| 6,617,117,243 |
|
|
|
|
|
| CURRENT ASSETS |
|
|
|
| Inventories | 1,177,320,175 |
| 1,134,035,897 |
| Other Assets | 79,173,499 |
| 100,692,779 |
| Other Receivables | 945,175,891 |
| 871,118,754 |
| Trade Receivables | 5,333,859,667 |
| 7,052,395,889 |
| Other Investments | 731,055,097 |
| 1,036,117,857 |
| Cash and Banks | 544,620,793 |
| 526,741,625 |
| Total Current Assets | 8,811,205,122 |
| 10,721,102,801 |
|
|
|
|
|
| Total Assets | 15,234,024,590 |
| 17,338,220,044 |
|
|
|
|
|
| EQUITY (as per the corresponding statement) |
|
|
|
| Attributable to Shareholders of the Parent Company |
|
|
|
| Shareholders' Contribution | 8,185,959,400 |
| 8,185,959,400 |
| Other Items | 14,625,292 |
| (26,084,291) |
| Retained Earnings | (546,939,580) |
| 329,798,709 |
| Total Attributable to Shareholders of the Parent Company | 7,653,645,112 |
| 8,489,673,818 |
|
|
|
|
|
| Attributable to Non-Controlling Interests | 121,925,547 |
| 209,697,547 |
| Total Equity | 7,775,570,659 |
| 8,699,371,365 |
|
|
|
|
|
| LIABILITIES |
|
|
|
| NON-CURRENT LIABILITIES |
|
|
|
| Provisions and Other Charges | 461,230,223 |
| 466,722,516 |
| Loans | 159,168,231 |
| 807,353,779 |
| Deferred Tax Liabilities | 194,855,571 |
| 135,569,358 |
| Taxes Payable | 42,743,522 |
| 80,970,426 |
| Other Liabilities | 121,138,641 | 8 | 96,552,351 |
| Trade and Other Payables | 73,481,885 |
| 89,331,746 |
| Total Non-Current Liabilities | 1,052,618,073 |
| 1,676,500,176 |
|
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
| Financial Debt | 1,013,556,417 |
| 719,152,165 |
| Seller Financings | - |
| 9,597 |
| Taxes Payable | 279,851,075 |
| 602,388,469 |
| Other Liabilities | 533,366,904 |
| 676,378,878 |
| Trade and Other Payables | 4,579,061,462 |
| 4,964,419,394 |
| Total Current Liabilities | 6,405,835,858 |
| 6,962,348,503 |
|
|
|
|
|
| Total Liabilities | 7,458,453,931 |
| 8,638,848,679 |
|
|
|
|
|
| Total Equity and Liabilities | 15,234,024,590 |
| 17,338,220,044 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
|
| 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 2017 | 287,418,584 | 6,287,031,998 | 15,460,433,403 | 22,034,883,985 |
| (658,445,922) | (108,498,901) |
| 220,112,675 | 7,758,263,759 | 9,507,587,686 |
| 38,753,903,282 |
| 16,614,710,508 |
| 55,368,613,790 | |
| Set-up of Reserves (Note 14) | - | - | - | - |
| - | - |
| - | 3,777,308,678 | (3,777,308,678) |
| - |
| - |
| - | |
| Dividend Distribution | - | - | - | - |
| - | - |
| - | - | (811,647,008) |
| (811,647,008) |
| - |
| (811,647,008) | |
| Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | (6,294,581) |
| - | - | - |
| (6,294,581) |
| (1,143,917,031) |
| (1,150,211,612) | |
| Exchange of Shares - Payment of fractions in cash (see Note 12 to the individual financial statements.) | - | - | - | - |
| - | (651,107) |
| - | - | - |
| (651,107) |
| - |
| (651,107) | |
| Net Income for the Year | - | - | - | - |
| - | - |
| - | - | 1,106,709,608 |
| 1,106,709,608 |
| 1,007,063,313 |
| 2,113,772,921 | |
| Spun-off Balances (See Note 13) | (180,642,580) | (3,951,399,611) | (9,716,882,394) | (13,848,924,585) |
| 802,772,124 | 5,902,178 |
| (138,340,816) | (6,801,910,974) | (10,510,976,221) |
| (30,491,478,294) |
| (16,187,794,788) |
| (46,679,273,082) | |
| Other Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Variation in Translation Differences of Foreign Operations | - | - | - | - |
| (60,868,082) | - |
| - | - | - |
| (60,868,082) |
| (80,364,455) |
| (141,232,537) | |
| Balances as of December 31, 2017 | (1) 106,776,004 | 2,335,632,387 | 5,743,551,009 | 8,185,959,400 |
| 83,458,120 | (109,542,411) |
| 81,771,859 | 4,733,661,463 | (4,485,634,613) |
| 8,489,673,818 |
| 209,697,547 |
| 8,699,371,365 | |
| Change in Accounting Policy (Note 2.2) | - | - | - | - |
| - | - |
| - | - | (20,752,591) |
| (20,752,591) |
| - |
| (20,752,591) | |
| Balances as of January 1, 2018, restated | 106,776,004 | 2,335,632,387 | 5,743,551,009 | 8,185,959,400 |
| 83,458,120 | (109,542,411) |
| 81,771,859 | 4,733,661,463 | (4,506,387,204) |
| 8,468,921,227 |
| 209,697,547 |
| 8,678,618,774 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Set-up of Reserves (Note 14) | - | - | - | - |
| - | - |
| - | 1,257,547,306 | (1,257,547,306) |
| - |
| - |
| - | |
| Dividends and Other Movements of Non-Controlling Interest | - | - | - | - |
| - | 32,441,801 |
| - | - | - |
| 32,441,801 |
| (37,533,423) |
| (5,091,622) | |
| Loss for the year | - | - | - | - |
| - | - |
| - | - | (855,985,698) |
| (855,985,698) |
| (26,426,233) |
| (882,411,931) | |
| Other Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Variation in Translation Differences of Foreign Operations | - | - | - | - |
| 8,267,782 | - |
| - | - | - |
| 8,267,782 |
| (23,812,344) |
| (15,544,562) | |
| Balances as of December 31, 2018 | 106,776,004 | 2,335,632,387 | 5,743,551,009 | 8,185,959,400 |
| 91,725,902 | (77,100,610) |
| 81,771,859 | (2) 5,991,208,769 | (6,619,920,208) |
| 7,653,645,112 |
| 121,925,547 |
| 7,775,570,659 | |
(1) Includes 1,485 treasury shares. See Note 12 to the individual financial statements.
(2) Broken down as follows: (i) Voluntary reserve for future dividends of $ 2,270,048,609; (ii) Judicial reserve for future dividend distribution of $ 713,120,608, (iii) Voluntary reserve for illiquidity of results of $ 1,216,090,908, (iv) Voluntary reserve to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of $ 851,718,153, and (v) Voluntary reserve to ensure the liquidity of the Company and its subsidiaries of $ 940,230,491.
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
|
| December 31, 2018 |
| December 31, 2017 | |
| CASH FLOWS PROVIDED BY OPERATING ACTIVITIES |
|
|
| |
| (Loss) / Income for the year | (882,411,931) |
| 2,113,772,921 | |
| Income Tax and Tax on Assets | 672,255,347 |
| 1,003,032,663 | |
| Accrued Interest, net | 273,310,009 |
| 289,022,948 | |
| Adjustments to reconcile net income for the year to cash provided by operating activities: |
|
|
| |
| Depreciation of Property, Plant and Equipment | 498,553,412 |
| 446,236,810 | |
| Amortization of Intangible Assets and Film Library | 226,196,020 |
| 205,617,938 | |
| Net allowances | 315,676,141 |
| 318,773,500 | |
| Financial Income, except interest | 203,558,523 |
| (66,619,084) | |
| Equity in Earnings from Associates | (166,735,379) |
| (29,314,575) | |
| Inflation Adjustment Gain (Loss) | 353,301,925 |
| 5,876,963 | |
| Other Income and Expenses | (347,727,489) |
| 13,390,298 | |
| Net Income from Discontinued Operations | - |
| (2,616,993,320) | |
| Changes in Assets and Liabilities: |
|
|
| |
| Trade Receivables | (1,080,244,150) |
| (1,802,144,077) | |
| Other Receivables | (542,351,266) |
| (1,163,963,835) | |
| Inventories | (100,952,400) |
| 528,998,927 | |
| Other Assets | 34,887,817 |
| (96,355,665) | |
| Trade and Other Payables | 1,954,198,941 |
| 905,184,831 | |
| Taxes Payable | (178,613,950) |
| (29,923,441) | |
| Other Liabilities | 111,981,565 |
| 756,183,790 | |
|
| Provisions | (87,550,472) |
| (119,090,760) |
|
| Income Tax and Tax on Assets Payments | (516,546,927) |
| (759,906,236) |
|
| Net Cash Flows provided by Discontinued Operating Activities | - |
| 5,943,085,062 |
|
|
|
|
|
|
|
| Net Cash Flows provided by Operating Activities | 740,785,736 |
| 5,844,865,658 |
|
|
|
|
|
|
|
| CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES |
|
|
|
|
| Acquisition of Property, Plant and Equipment | (703,703,517) |
| (628,211,689) |
|
| Payments for Acquisition of Intangible Assets | (172,743,995) |
| (151,836,090) |
|
| Payments for Acquisition of Subsidiaries, Net of Cash Acquired and Contributions in Associates | (67,562,046) |
| (42,757,596) |
|
| Proceeds from Sale of Property, Plant and Equipment | 77,379,058 |
| 56,719,460 |
|
| Dividends collected from Associates | 132,724,898 |
| 513,719,227 |
|
| Collections of Interest | - |
| 31,767 |
|
| Collections of Loans | - |
| 59,442,026 |
|
| Collection from Credit Assignment (See Note 6.6) | 323,640,000 |
| - |
|
| Transactions with Securities, Bonds and Other Placements, Net | 26,692,945 |
| 32,782,065 |
|
| Net Cash Flows used in Discontinued Investment Activities | - |
| (5,671,366,009) |
|
|
|
|
|
|
|
| Net Cash Flows used in Investment Activities | (383,572,657) |
| (5,831,476,839) |
|
|
|
|
|
|
|
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES |
|
|
|
|
| Loans Obtained | 630,588,725 |
| 2,269,573,711 |
|
| Payment of Loans and Issuance Expenses | (933,813,966) |
| (1,326,427,797) |
|
| Payment of Interest | (313,466,417) |
| (336,912,225) |
|
| Payment for Acquisition of Companies | - |
| (306,548) |
|
| Collections on Derivatives | - |
| 3,033,702 |
|
| Payment of Fractions of Shares | - |
| (651,107) |
|
| Payment of Dividends | - |
| (800,166,615) |
|
| Payments to Non-Controlling Interests, net | (12,966,059) |
| (16,517,144) |
|
| Net Cash Flows used in Discontinued Financing Activities | - |
| (689,304,404) |
|
|
|
|
|
|
|
| Net Cash Flows used in Financing Activities | (629,657,717) |
| (897,678,427) |
|
|
|
|
|
|
|
| FINANCIAL RESULTS (INCLUDING IAGL) OF CASH AND CASH EQUIVALENTS FOR CONTINUING OPERATIONS | (42,294,224) |
| (127,732,027) |
|
|
|
|
|
|
|
| FINANCIAL RESULTS (INCLUDING IAGL) OF CASH AND CASH EQUIVALENTS FOR DISCONTINUED OPERATIONS | - |
| (98,391,120) |
|
|
|
|
|
|
|
| TOTAL FINANCIAL RESULTS (INCLUDING IAGL) OF CASH AND CASH EQUIVALENTS | (42,294,224) |
| (226,123,147) |
|
|
|
|
|
|
|
| Net decrease in cash flow | (314,738,862) |
| (1,110,412,755) |
|
| Cash and Cash Equivalents at the Beginning of the Year (Note 2.24) | 1,553,459,134 |
| 6,172,947,953 |
|
| Effect of Deconsolidation of Companies | - |
| (3,509,076,064) |
|
| Cash and Cash Equivalents at the Closing of the Year (Note 2.24) | 1,238,720,272 |
| 1,553,459,134 |