Grupo Clarín Announces Nine months and Third Quarter 2023 Results
Buenos Aires, Argentina, November 10, 2023 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its Nine months and Third Quarter 2023 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") as of September 30, 2023 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) as per Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), that establishes that the restatement must be applied to the financial statements.
Highlights (9M23 vs. 9M22):
§ Total Revenues reached Ps. 109,644.1 million, a decrease of 2.3% in real terms compared to 9M22, mainly due to lower revenues in the Broadcasting and Programming segment, partially offset by higher revenues in Digital and Printed Publications.
§ Adjusted EBITDA(1) reached Ps. 11,844.5 million, a decrease of 29.4% compared to 16,766.0 for 9M22, mainly driven by lower EBITDA in Broadcasting and Programming and Others segments.
§ Grupo Clarín's Adjusted EBITDA Margin(2) was 10.8% in 9M23, compared to 14.9% in 9M22.
§ Net Income for the period resulted in a loss of Ps. 1,513.2 million, an increase of 35.8% compared to a loss of Ps. 1,114.3 million reported in 9M22. Loss for the period attributable to Equity Shareholders amounted Ps 1,377.2 million in 9M23 from a loss of Ps. 1,181.9 million in 9M22, an increase of 16.5%.
FINANCIAL HIGHLIGHTS
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| (In millions of Ps.) | 9M23 | 9M22 | % Ch. | 3Q23 | 2Q23 | 3Q22 | QoQ | YoY |
| Total Revenues | 109,644.1 | 112,266.9 | (2.3%) | 35,061.7 | 36,596.7 | 37,313.2 | (4.2%) | (6.0%) |
| Adjusted EBITDA (1) | 11,844.5 | 16,766.0 | (29.4%) | 2,512.7 | 3,983.2 | 6,292.2 | (36.9%) | (60.1%) |
| Adjusted EBITDA Margin (2) | 10.8% | 14.9% | (27.7%) | 7.2% | 10.9% | 16.9% | (34.2%) | (57.5%) |
| Profit/(Loss) for the period | (1,513.2) | (1,114.3) | 35.8% | (2,810.6) | (458.0) | (1,647.8) | 513.6% | 70.6% |
| Attributable to: | | | | | | | | |
| Equity Shareholders | (1,377.2) | (1,181.9) | 16.5% | (2,720.0) | (426.4) | (1,565.5) | 537.9% | 73.7% |
| Non-Controlling Interests | (136.0) | 67.5 | (301.4%) | (90.6) | (31.6) | (82.3) | 186.4% | 10.1% |
(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. 109,644.1 million, a decrease of 2.3% in real terms from Ps. 112,266.9 million in 9M22, in a context of increasing inflation (which reached 138.3% interannually as of September and 115.0% on average). Advertising revenues decreased 5.7% in real terms and represented around 44.2% of the Total Revenues of the Company. Circulation revenues increased 4.5% YoY and represented 31.4% of the Total. Programming revenues decreased 19.0% YoY and represented 13.4% of the Total.
Following is a breakdown of Total Revenues by business segment:
REVENUES
| (In millions of Ps.) | 9M23 | 9M22 | YoY | 3Q23 | 2Q23 | 3Q22 | QoQ | YoY |
| Digital and Printed Publications | 55,656.9 | 51,368.9 | 8.3% | 17,178.1 | 17,116.0 | 16,207.6 | 0.4% | 6.0% |
| Broadcasting and Programming | 50,165.6 | 57,336.7 | (12.5%) | 16,748.9 | 18,209.5 | 19,857.7 | (8.0%) | (15.7%) |
| Others | 7,745.5 | 8,088.8 | (4.2%) | 2,247.9 | 2,475.2 | 2,339.4 | (9.2%) | (3.9%) |
| Subtotal | 113,568.1 | 116,794.3 | (2.8%) | 36,174.9 | 37,800.7 | 38,404.7 | (4.3%) | (5.8%) |
| Eliminations | (3,924.0) | (4,527.4) | (13.3%) | (1,113.2) | (1,203.9) | (1,091.5) | (7.5%) | 2.0% |
| Total | 109,644.1 | 112,266.9 | (2.3%) | 35,061.7 | 36,596.7 | 37,313.2 | (4.2%) | (6.0%) |
Cost of sales (Excluding Depreciation and Amortization) reached Ps. 67,968.0 million, an increase of 2.3% from Ps. 66,422.8 million reported in 9M22, mainly due to higher costs in the Digital and Printed Publications segment related to the increase in schoolbooks sales and severance payments; partially offset by lower content production cost in Broadcasting and Programming and lower salaries in real terms, across all segments.
Selling and Administrative Expenses (Excluding Depreciation and Amortization) totaled Ps. 29,831.6 million, an increase of 2.6% from Ps. 29,078.1 million in 9M22. This increase was mainly due to higher contingencies, advertising and promotion costs.
Adjusted EBITDA amounted to Ps. 11,844.5 million, decrease of 29.4% from Ps. 16,766.0 million reported in 9M22. This decrease was driven by a lower EBITDA in Broadcasting and Programming, mainly as a result of lower advertising and programming revenues in real terms that couldn't be offset by lower costs.
Following is a breakdown of adjusted EBITDA by business segment:
ADJUSTED EBITDA
| (In millions of Ps.) | 9M23 | 9M22 | YoY | 3Q23 | 2Q23 | 3Q22 | QoQ | YoY |
| Digital and Printed Publications | 4,127.2 | 4,247.9 | (2.8%) | 314.0 | 490.4 | 1,193.1 | (36.0%) | (73.7%) |
| Broadcasting and Programming | 7,550.2 | 11,822.3 | (36.1%) | 2,688.3 | 3,632.6 | 5,146.5 | (26.0%) | (47.8%) |
| Others | 167.1 | 695.9 | (76.0%) | (489.6) | (139.8) | (47.4) | 250.1% | 932.4% |
| Total | 11,844.5 | 16,766.0 | (29.4%) | 2,512.7 | 3,983.2 | 6,292.2 | (36.9%) | (60.1%) |
Financial results net totaled Ps. (10,648.0) million compared to Ps. (11,096.1) million in 9M22. This decrease was mainly due to higher gained interests, lower net negative Foreign Exchange results and lower negative results of operations with notes and bonds, partially offset by higher interest on debts and higher negative inflation adjustment results versus 2022.
Equity in earnings from unconsolidated affiliates in 9M23 totaled Ps. 1,345.6 million, compared to Ps. 566.3 million in 9M22, mainly related to the suspension of operations in BIMO which had had negative results in 2022, partially offset by lower positive results in our subsidiary Papel Prensa higher negative results in TRISA versus a negative result in 2022.
Other Income (expenses), net reached Ps. 450.5 million, compared to Ps. (115.1) million in 9M22.
Income tax as of 9M23 reached Ps. (33.1) million, from Ps. Ps. (2,698.3) million in 9M22, mainly as a result of lower taxable income (after considering taxable Inflation Adjustment).
Income for the period totaled Ps. 1,513.2 million, an increase of 35.8% from a loss of Ps. 1,114.3 million reported in 9M22. The Equity Shareholders Loss for the period amounted Ps. 1,377.2 million, an increase of 16.5% YoY from a loss of 1,181.9 million.
Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 3,355.5 million in 9M23, an increase of 2.0% from Ps. 3,288.4 million reported in 9M22. Out of the total CAPEX in 9M23, 74.3% was allocated towards the Broadcasting and Programming segment and 25.3% to the Digital and Printed Publications segment.
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2023
| (In millions of Ps.) | Digital & Printed Publications | Broadcasting & Programming | Others | Eliminations | Total | % |
| Advertising | 13,779.5 | 35,253.2 | - | (571.9) | 48,460.7 | 44.2% |
| Circulation | 34,437.2 | - | - | - | 34,437.2 | 31.4% |
| Printing | 4,977.3 | - | - | (3.7) | 4,973.7 | 4.5% |
| Programming | - | 14,703.4 | - | - | 14,703.4 | 13.4% |
| Other Sales
| 2,462.9 | 209.0 | 7,745.5 | (3,348.4) | 7,069.1 | 6.4% |
| Total Sales | 55,656.9 | 50,165.6 | 7,745.5 | (3,924.0) | 109,644.1 | 100.0% |
SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2022
| (In millions of Ps.) | Digital & Printed Publications | Broadcasting & Programming | Others | Eliminations | Total | % |
| Advertising | 13,213.7 | 38,733.3 | - | (583.0) | 51,363.9 | 45.8% |
| Circulation | 32,947.3 | - | - | - | 32,947.3 | 29.3% |
| Printing | 2,598.9 | - | - | - | 2,598.9 | 2.3% |
| Programming | - | 18,149.3 | - | - | 18,149.3 | 16.2% |
| Other Sales
| 2,609.0 | 454.1 | 8,088.8 | (3,944.4) | 7,207.4 | 6.4% |
| Total Sales | 51,368.9 | 57,336.7 | 8,088.8 | (4,527.4) | 112,266.9 | 100.0% |
RESULTS BY BUSINESS SEGMENT
BROADCASTING AND PROGRAMMING
Revenues
Revenues decreased by 12.5% to Ps. 50,165.6 million in 9M23, compared to Ps. 57,336.7 million in 9M22 mainly as a result of lower programming and advertising revenues, in real terms.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) decreased by 7.8% to Ps. 31,469.0 million in 9M23, compared to Ps. 34,148.3 million in 9M22. This is mainly attributable to lower programming, content production and services and satellites costs, and lower salaries and severance payments in real terms.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) decreased by 1.9% to Ps. 11,146.5 million in 9M23, compared to Ps. 11,366.1 million in 9M22. The decrease was primarily the result of lower fees for services, partially offset by higher contingencies.
Depreciation and Amortization
Depreciation and amortization expenses decreased by 6.2% to Ps. 2,100.9 million in 9M23 compared to Ps. 2,240.6 million reported in 9M22.
DIGITAL AND PRINTED PUBLICATIONS
Revenues
Total revenues increased by 8.3% to Ps. 55,656.9 million in 9M23, mainly as a result of higher circulation and printing revenues from school textbooks and printing services related to biddings for school textbooks, mainly during 1Q23, and higher Optional Products and Paywall revenues, offset by lower traditional circulation revenues. In spite of the high interannual inflation, advertising revenues were higher than the figure registered during 9M22, driven by political advertising and higher digital advertising.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales (excluding depreciation and amortization) increased by 13.9% to Ps. 31,717.6 million in 9M23, compared to Ps. 27,842.8 million in 9M22. The increase is mainly the result of higher costs related to the increase in schoolbooks sales and printing and other costs of editorial products and the effect of inflation adjustment over consumption of goods acquired during previous months; and severance payments related to the restructuring carried out in 2Q23; partially offset by lower salaries.
Selling and Administrative Expenses (Excluding Depreciation and Amortization)
Selling and administrative expenses (excluding depreciation and amortization) increased by 2.8% to Ps. 19,812.1 million in 9M23, compared to the Ps. 19,278.2 million reported in 9M22. This was primarily the result of higher salaries and severance payments, contingencies, and bad debt, partially offset by lower distribution costs.
Depreciation and Amortization
Depreciation and amortization expenses increased by 12.3% to Ps. 1,714.3 million in 9M23 compared to Ps. 1,526.5 million in 9M22.
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). Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.
In this period, total revenues decreased 4.2% to Ps. 7,745.5 , from Ps. 8,088.8 million reported in 9M22. EBITDA resulted in Ps. 167.1 million.
OPERATING STATISTICS BY BUSINESS SEGMENT
DIGITAL AND PRINTED PUBLICATIONS
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| 9M23 | 9M22 | YoY | 3Q23 | 2Q23 | 3Q22 | QoQ | YoY |
| Circulation (1) | 54.9 | 67.3 | -18.4% | 52.6 | 55.6 | 64.5 | -1.3% | -18.6% |
| Circulation share % (2) | 54.3% | 56.4% | -3.8% | 53.6% | 54.0% | 56.0% | 0.6% | -4.2% |
| Total Digital Subs (3) | 691.8 | 554.6 | 24.7% | 691.8 | 657.9 | 554.6 | 5.2% | 24.7% |
(1) Average number of paper copies, (newsstands, and subscriptions), according to IVC (including Diario Clarín and Olé) in thousands
(2) Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín/Clarín+La Nación. Source: IVC.
(3) Total Clarin.com subs, in thousand, EOP. Company information.
BROADCASTING AND PROGRAMMING
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| 9M23 | 9M22 | YoY | 3Q23 | 2Q23 | 3Q22 | QoQ | YoY |
| Advertising Share % (1) | 32.1% | 35.0% | -8.4% | 32.1% | 33.5% | 35.7% | -4.3% | -10.1% |
| Audience Share % (2) | | | | | | | | |
| Prime Time | 28.0% | 33.7% | -16.7% | 29.2% | 32.0% | 34.3% | -12.4% | -14.9% |
| Total Time | 26.6% | 31.3% | -15.2% | 28.0% | 27.8% | 32.0% | -4.3% | -12.5% |
(1) Company estimates, over ad spend in Ps. In broadcast TV for AMBA region.
(2) Share of broadcast TV audience according to IBOPE for AMBA. Prime Time 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 KPIs
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| 9M23 | 9M22 | YoY | 3Q23 | 2Q23 | 3Q22 | QoQ | YoY |
| Page Views (1) | 825.8 | 896.5 | -7.9% | 738.0 | 808.9 | 974.5 | 2.1% | -24.3% |
| Mobile page Views | 620.1 | 661.6 | -6.3% | 524.0 | 600.7 | 731.7 | 3.2% | -28.4% |
(1) In millions. Average. Source DAX and Company Estimates.
DEBT AND LIQUIDITY
| (In millions of Ps.) | September 2023 | September 2022 | % Change |
| Short Term and Long-Term Debt |
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| Current Financial Debt | 6,724.0 | 3,534.2 | 90.3% |
| Financial loans | 4,690.5 | 1,921.3 | 144.1% |
| Accrued interest | 132.3 | 387.2 | (65.8%) |
| Acquisition of equipment | 8.7 | 88.3 | (90.1%) |
| Related Parties Accrued Interest
| - | - | 0.0% |
| Related Parties Capital | - | - | 0.0% |
| Bank overdraft | 1,892.5 | 1,137.3 | 66.4% |
| Non-Current Financial Debt | 526.9 | 3,386.5 | (84.4%) |
| Financial loans | 526.9 | 3,365.7 | (84.3%) |
| Acquisition of equipment | - | 20.8 | (100.0%) |
| Total Financial Debt (A) | 7,250.9 | 6,920.7 | 4.8% |
| Total Short Term and Long-Term Debt | 7,250.9 | 6,920.7 | 4.8% |
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| Cash and Cash Equivalents (B) | 16,514.6 | 15,846.2 | 4.2% |
| Net Debt (A) - (B) | (9,263.7) | (8,925.4) | 3.8% |
| Net Debt/Adjusted Ebitda (1) | (0.62x) | (0.42x) | 46.1% |
Total Financial Debt(1) and Net Debt, increased 4.8% to Ps. 7,250.9 million from Ps. 6,920.7 million and to Ps. (9,263.7) million from Ps. (8,925.4) million, respectively.
Debt coverage ratio (1) as of September 30, 2023 was (0.62x) in the case of Net Debt and of 0.48x in terms of Total Financial Debt.
(1) Debt Coverage Ratio is defined as Total Financial Debt divided by Last Twelve Months Adjusted EBITDA. 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.) | 9M23 | 9M22 | YoY | 9M23 ex IAS 29 | IAS 29 Adjust. | 9M23 | 9M22 ex IAS 29 | IAS 29 Adjust. | 9M22 |
| Digital and Printed Publications | 55,656.9 | 51,368.9 | 8.3% | 39,854.7 | 15,802.2 | 55,656.9 | 17,105.8 | 34,263.1 | 51,368.9 |
| Broadcasting and Programming | 50,165.6 | 57,336.7 | (12.5%) | 35,922.5 | 14,243.1 | 50,165.6 | 19,093.1 | 38,243.6 | 57,336.7 |
| Others | 7,745.5 | 8,088.8 | (4.2%) | 5,546.4 | 2,199.1 | 7,745.5 | 2,693.6 | 5,395.2 | 8,088.8 |
| Subtotal | 113,568.1 | 116,794.3 | (2.8%) | 81,323.7 | 32,244.5 | 113,568.1 | 38,892.4 | 77,901.9 | 116,794.3 |
| Eliminations | (3,924.0) | (4,527.4) | (13.3%) | (2,809.9) | (1,114.1) | (3,924.0) | (1,507.6) | (3,019.8) | (4,527.4) |
| Total | 109,644.1 | 112,266.9 | (2.3%) | 78,513.8 | 31,130.4 | 109,644.1 | 37,384.8 | 74,882.1 | 112,266.9 |
| REVENUES (In millions of Ps.) | 3Q23 | 3Q22 | YoY | 3Q23 ex IAS 29 | IAS 29 Adjust. | 3Q23 | 3Q22 ex IAS 29 | IAS 29 Adjust. | 3Q22 |
| Digital and Printed Publications | 17,178.1 | 16,207.6 | 6.0% | 15,683.6 | 1,494.5 | 17,178.1 | 6,484.2 | 9,723.4 | 16,207.6 |
| Broadcasting and Programming | 16,748.9 | 19,857.7 | (15.7%) | 14,931.2 | 1,817.7 | 16,748.9 | 7,771.4 | 12,086.3 | 19,857.7 |
| Others | 2,247.9 | 2,339.4 | (3.9%) | 2,093.0 | 154.9 | 2,247.9 | 956.8 | 1,382.6 | 2,339.4 |
| Subtotal | 36,174.9 | 38,404.7 | (5.8%) | 32,707.8 | 3,467.1 | 36,174.9 | 15,212.4 | 23,192.3 | 38,404.7 |
| Eliminations | (1,113.2) | (1,091.5) | 2.0% | (1,044.2) | (69.0) | (1,113.2) | (469.7) | (621.8) | (1,091.5) |
| Total | 35,061.7 | 37,313.2 | (6.0%) | 31,663.5 | 3,398.1 | 35,061.7 | 14,742.7 | 22,570.5 | 37,313.2 |
| EBITDA (In millions of Ps.) | 9M23 | 9M22 | YoY | 9M23 ex IAS 29 | IAS 29 Adjust. | 9M23 | 9M22 ex IAS 29 | IAS 29 Adjust. | 9M22 |
| Digital and Printed Publications | 4,127.2 | 4,247.9 | (2.8%) | 2,955.4 | 1,171.8 | 4,127.2 | 1,414.5 | 2,833.3 | 4,247.9 |
| Broadcasting and Programming | 7,550.2 | 11,822.3 | (36.1%) | 5,406.5 | 2,143.7 | 7,550.2 | 3,936.8 | 7,885.5 | 11,822.3 |
| Others | 167.1 | 695.9 | (76.0%) | 119.7 | 47.4 | 167.1 | 231.7 | 464.2 | 695.9 |
| Total | 11,844.5 | 16,766.0 | (29.4%) | 8,481.6 | 3,362.9 | 11,844.5 | 5,583.1 | 11,183.0 | 16,766.0 |
| EBITDA (In millions of Ps.) | 3Q23 | 3Q22 | YoY | 3Q23 ex IAS 29 | IAS 29 Adjust. | 3Q23 | 3Q22 ex IAS 29 | IAS 29 Adjust. | 3Q22 |
| Digital and Printed Publications | 314.0 | 1,193.1 | (73.7%) | 560.1 | (246.1) | 314.0 | 491.8 | 701.4 | 1,193.1 |
| Broadcasting and Programming | 2,688.3 | 5,146.5 | (47.8%) | 2,352.4 | 335.8 | 2,688.3 | 1,920.2 | 3,226.3 | 5,146.5 |
| Others | (489.6) | (47.4) | 932.4% | (292.8) | (196.7) | (489.6) | 7.2 | (54.6) | (47.4) |
| Subtotal | 2,512.7 | 6,292.2 | (60.1%) | 2,619.7 | (107.0) | 2,512.7 | 2,419.1 | 3,873.1 | 6,292.2 |
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.
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| GCLA (BCBA) Price per Share (ARS)
| 727.55 |
| GCLA (LSE) Price per GDS (USD) | 1.33 |
| Total Shares | 106,776,004 |
| Shares per GDS | 2 |
| Closing Price | November 10, 2023 |
CONFERENCE CALL AND WEBCAST INFORMATION
GRUPO CLARIN S.A.
(BCBA: GCLA; LSE: GCLA)
cordially invites you to participate in its Webcast Presentation
to discuss its Nine months and Third Quarter 2023 Results
Date: Tuesday, November 14, 2023
Time: 1:00pm Buenos Aires Time/4:00pm London Time/11:00am New York Time
To access the live stream and slide presentation, visit:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=Zn6aVaSq
The webcast presentation will also be available at https://ir.grupoclarin.com
| Investor Relations Contacts | | |
| In Buenos Aires: | In London: | In New York: |
| | | |
| Samantha Olivieri | Alex Money | Camilla Ferreira and Marcella Ewerton Dragone |
| | | |
| Grupo Clarín S.A. | Jasford IR | Fig Corporate Communications |
| Tel: +54 11 4309 7104 | Tel: +44 20 3289 5300 | Tel: +1 917 691-4047 |
| Email: investors@grupoclarin.com | E-mail: alex@jasford.com | E-mail: fig@fig.ooo
|
ABOUT THE COMPANY
Grupo Clarín is the largest media company in Argentina and a leading company in Digital and Printed Publications and broadcasting and programming markets. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers and has the largest base of paid digital subscribers 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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022,
AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1 AND ENDING ON SEPTEMBER 30, 2023 AND 2022
(Amounts stated in Argentine Pesos)
| | September 30, 2023 | | September 30, 2022 |
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July 1, 2023 through September 30, 2023 |
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July 1, 2022 through September 30, 2022 |
| | | | | | | | |
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| Revenues | 109,644,137,625 | | 112,266,920,105 | | 35,061,670,546 | | 37,313,235,356 |
| | | | | | | | |
| Cost of Sales (1) | (71,650,168,409) | | (69,986,667,203) | | (23,788,518,943) | | (22,197,269,375) |
| | | | | | | | |
| Subtotal - Gross Profit | 37,993,969,216 |
| 42,280,252,902 |
| 11,273,151,603 |
| 15,115,965,981 |
| | | |
| | | |
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| Selling Expenses (1) | (13,541,790,211) | | (13,647,428,685) | | (4,316,434,940) | | (4,678,670,851) |
| Administrative Expenses (1) | (17,080,293,979) | | (16,403,906,002) | | (5,920,310,172) | | (5,658,078,689) |
| | | | | | | | |
| Other Income and Expenses, net | 450,460,385 | | (115,111,811) | | 214,104,209 | | 148,102,150 |
| | | | | | | | |
| Financial Expenses on Debt | (5,079,620,829) | | (2,469,091,898) | | (2,349,933,659) | | (1,174,518,007) |
| Gain (Loss) on Net Monetary Position | (7,534,553,078) | | (6,775,170,536) | | (3,307,266,573) | | (3,004,326,420) |
| Other Financial Results, net | 1,966,201,095 | | (1,851,881,092) | | 233,944,944 | | (309,771,994) |
| Financial Results | (10,647,972,812) | | (11,096,143,526) | | (5,423,255,288) | | (4,488,616,421) |
| | | | | | | | |
| Equity in Earnings from Associates | 1,345,573,294 | | 566,303,093 | | 335,892,312 | | (739,661,273) |
| | | | | | | | |
| Income (Loss) before Income Tax | (1,480,054,107) |
| 1,583,965,971 |
| (3,836,852,276) |
| (300,959,103) |
| | | |
| | | |
|
| Income Tax | (33,144,651) | | (2,698,300,690) | | 1,026,264,389 | | (1,346,865,865) |
| | | | | | | | |
| Net Income (Loss) for the Period | (1,513,198,758) |
| (1,114,334,719) |
| (2,810,587,887) |
| (1,647,824,968) |
| | | |
| | | |
|
| | | | | | | | |
| Other Comprehensive Income | | | | | | | |
| | | | | | | | |
| Items which can be reclassified to Net Income (Loss) | | | | | | | |
| Equity in Comprehensive Earnings from Associates | 116,263,308 | | - | | 104,862,676 | | - |
| Variation in Translation Differences of Foreign Operations | (11,102,477) | | (144,397,229) | | (14,560,206) | | (44,735,134) |
| Other Comprehensive Income (Loss) for the Period | 105,160,831 | | (144,397,229) | | 90,302,470 | | (44,735,134) |
| | | | | | | | |
| TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | (1,408,037,927) |
| (1,258,731,948) |
| (2,720,285,417) |
| (1,692,560,102) |
| | | | | | | | |
| (Loss) Income Attributable to: | | | | | | | |
| | | | | | | | |
| Shareholders of the Controlling Company | (1,377,153,316) | | (1,181,880,427) | | (2,719,972,075) | | (1,565,536,902) |
| | | | | | | | |
| Non-Controlling Interests | (136,045,442) | | 67,545,708 | | (90,615,812) | | (82,288,066) |
| | | | | | | | |
| Total Comprehensive Income (Loss) Attributable to: | | | | | | | |
| | | | | | | | |
| Shareholders of the Controlling Company | (1,271,992,485) | | (1,326,277,656) | | (2,629,669,605) | | (1,610,272,036) |
| | | | | | | | |
| Non-Controlling Interests | (136,045,442) | | 67,545,708 | | (90,615,812) | | (82,288,066) |
| | | | | | | | |
| Basic and Diluted Earnings per Share (Note 10) | (12.90) | | (11.07) | | (25.47) | | (14.66) |
| | | | | | | | |
| | | | | | | | |
(1) Includes amortization of intangible assets and film library, right-of-use assets, depreciation of property, plant and equipment and investment property in the amount of $ 4,472,642,706 and $ 4,537,109,715 for the nine-month periods ended September 30, 2023 and 2022, respectively.
The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30st, 2023 available at https://ir.grupoclarin.com
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022
(Amounts stated in Argentine Pesos)
|
| September 30, 2023 | | December 31, 2022 |
| ASSETS | |
|
|
| NON-CURRENT ASSETS |
|
|
|
| Property, Plant and Equipment | 36,241,142,098 | | 36,222,036,313 |
| Intangible Assets | 3,113,119,202 | | 3,099,466,271 |
| Goodwill | 108,784,095 | | 108,784,095 |
| Investment Properties | 3,729,948,105 | | 3,784,034,269 |
| Deferred Tax Assets | 4,951,308,819 | | 3,907,042,485 |
| Right-of-Use Assets | 323,633,797 | | 162,705,342 |
| Investments in Associates | 20,481,816,519 | | 19,187,334,497 |
| Other Investments | 895,319,914 | | 918,949,450 |
| Inventories | 81,503,412 | | 1,564,624,577 |
| Other Assets | 244,015,480 | | 244,173,165 |
| Other Receivables | 771,526,499 | | 265,726,126 |
| Total Non-Current Assets | 70,942,117,940 | | 69,464,876,590 |
|
| | | |
| CURRENT ASSETS | | | |
| Inventories | 6,891,025,384 | | 9,044,718,837 |
| Other Assets | 1,297,255,987 | | 1,007,883,334 |
| Other Receivables | 6,861,176,898 | | 10,510,537,337 |
| Trade Receivables | 28,909,037,826 | | 37,167,203,491 |
| Other Investments | 13,461,572,775 | | 12,297,546,425 |
| Cash and Banks | 3,926,996,320 | | 4,351,485,385 |
| Total Current Assets | 61,347,065,190 | | 74,379,374,809 |
|
|
| | |
| Total Assets | 132,289,183,130 | | 143,844,251,399 |
| | | | |
| EQUITY (as per the corresponding statement) | | | |
| Attributable to Shareholders of the Controlling Company | | | |
| Shareholders' Contribution | 72,735,057,427 | | 72,735,057,427 |
| Other Items | (32,246,308) | | (137,407,139) |
| Retained Earnings | 8,867,759,489 | | 10,244,912,805 |
| Total Attributable to Shareholders of the Controlling Company | 81,570,570,608 | | 82,842,563,093 |
|
| | | |
| Attributable to Non-Controlling Interests | 274,995,796 | | 448,997,489 |
| Total Equity | 81,845,566,404 | | 83,291,560,582 |
| | | | |
| LIABILITIES | | | |
| NON-CURRENT LIABILITIES | | | |
| Provisions and Other Charges | 3,939,486,995 | | 5,678,405,305 |
| Financial Debt | 526,851,586 | | 4,212,061,560 |
| Lease Liabilities | 41,720,569 | | 27,282,717 |
| Deferred Tax Liabilities | 2,987,009,591 | | 2,870,437,216 |
| Taxes Payable | 209,116,239 | | 22,141,381 |
| Other Liabilities | 1,184,339,574 | | 2,018,833,489 |
| Trade and Other Payables | 173,173,267 | | 76,620,102 |
| Total Non-Current Liabilities | 9,061,697,821 | | 14,905,781,770 |
|
| | | |
| CURRENT LIABILITIES | | | |
| Financial Debt | 6,724,023,379 | | 2,896,300,597 |
| Taxes Payable | 1,839,065,378 | | 1,527,507,050 |
| Lease Liabilities | 214,365,452 | | 115,611,192 |
| Other Liabilities | 5,611,640,755 | | 6,922,214,325 |
| Trade and Other Payables | 26,992,823,941 | | 34,185,275,883 |
| Total Current Liabilities | 41,381,918,905 | | 45,646,909,047 |
|
| | | |
| Total Liabilities | 50,443,616,726 | | 60,552,690,817 |
|
|
| | |
| Total Equity and Liabilities | 132,289,183,130 | | 143,844,251,399 |
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022
(Amounts stated in Argentine Pesos - Note 2.1.1)
| | Shareholders' Contribution | Other Items | Retained Earnings | | Total Equity of Controlling Company | | Equity Attributable to Non-Controlling Interests | | | ||||||
| | Capital Stock | Inflation Adjustment on Capital Stock | Additional Paid-in Capital | Subtotal | Other Comprehensive Income | Other Reserves | Legal Reserve | Voluntary Reserves (1) | Retained Earnings | | | Total Equity | |||
| | | | | | | | | | | | | | | | |
| Balances as of January 1st 2023 | 106,776,004 | 30,446,316,699 | 42,181,964,724 | 72,735,057,427 | 888,874,315 | (1,026,281,454) | 4,111,744,074 | 8,920,719,452 | (2,787,550,721) | | 82,842,563,093 | | 448,997,489 | | 83,291,560,582 |
| Reversal of Reserve (Note 9.a) | - | - | - | - | - | - | (2,787,550,721) | - | 2,787,550,721 | | - | | - | | - |
| Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | | - | | (37,956,251) | | (37,956,251) |
| Net Income (Loss) for the Period | - | - | - | - | - | - | - | - | (1,377,153,316) | | (1,377,153,316) | | (136,045,442) | | (1,513,198,758) |
| Other Comprehensive Income: | | | | | | | | | | | | | | | |
| Changes in Other Comprehensive Income | - | - | - | - | 105,160,831 | - | - | - | - | | 105,160,831 | | - | | 105,160,831 |
| Balances as of September 30, 2023 | 106,776,004 | 30,446,316,699 | 42,181,964,724 | 72,735,057,427 | 994,035,146 | (1,026,281,454) | 1,324,193,353 | 8,920,719,452 | (1,377,153,316) |
| 81,570,570,608 |
| 274,995,796 |
| 81,845,566,404 |
| Balances as of January 1, 2022 | 106,776,004 | 30,446,316,699 | 42,181,964,724 | 72,735,057,427 | 982,186,544 | (1,026,281,454) | - | 8,920,719,452 | 4,111,744,061 | | 85,723,426,030 | | 575,601,453 | | 86,299,027,483 |
| Set-up of Reserves | - | - | - | - | - | - | 4,111,744,061 | - | (4,111,744,061) | | - | | - | | - |
| Dividends and Other Movements of Non-Controlling Interest | - | - | - | - | - | - | - | - | - | | - | | (126,667,042) | | (126,667,042) |
| Net Income (Loss) for the Period | - | - | - | - | - | - | - | - | (1,181,880,427) | | (1,181,880,427) | | 67,545,708 | | (1,114,334,719) |
| Other Comprehensive Income: | | | | | | | | | | | | | | | |
| Changes in Other Comprehensive Income | - | - | - | - | (144,397,229) | - | - | - | - | | (144,397,229) | | - | | (144,397,229) |
| Balances as of September 30, 2022 | 106,776,004 | 30,446,316,699 | 42,181,964,724 | 72,735,057,427 | 837,789,315 | (1,026,281,454) | 4,111,744,061 | 8,920,719,452 | (1,181,880,427) |
| 84,397,148,374 |
| 516,480,119 | | 84,913,628,493 |
(1) Corresponds to Judicial Reserve for Future Dividends Distribution
GRUPO CLARÍN S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022
(Amounts stated in Argentine Pesos)
| | September 30, 2023 | | September 30, 2022 |
| CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | | | |
| Net Income (Loss) for the Period | (1,513,198,758) | | (1,114,334,719) |
| Income Tax | 33,144,651 | | 2,698,300,690 |
| Accrued Interest, net | 490,557,946 | | 442,912,292 |
| Adjustments to reconcile Net Loss for the Period to Cash provided by Operating Activities: | | | |
| Depreciation of Property, Plant and Equipment | 3,236,811,132 | | 3,418,965,715 |
| Amortization of Intangible Assets and Film Library | 842,954,804 | | 767,024,259 |
| Amortization of Right-of-Use Assets | 338,790,606 | | 309,586,882 |
| Depreciation of Investment Properties | 54,086,164 | | 41,532,859 |
| Net Allowances | 2,043,742,085 | | 1,316,446,556 |
| Financial Income, except Interest | 1,222,741,633 | | 2,697,017,399 |
| Gain (Loss) on Net Monetary Position | 7,534,553,078 | | 6,775,170,536 |
| Equity in Earnings from Associates | (1,345,573,294) | | (566,303,093) |
| Other Income and Expenses | (73,406,880) | | 81,442,859 |
| Changes in Assets and Liabilities: | | | |
| Trade Receivables | (19,250,203,173) | | (14,224,031,550) |
| Other Receivables | (2,600,470,228) | | (4,283,271,994) |
| Inventories | 2,049,040,436 | | 2,889,770,808 |
| Other Assets | (324,563,030) | | (86,160,766) |
| Trade and Other Payables | 15,215,239,309 | | 5,430,420,269 |
| Taxes Payable | 498,681,974 | | 1,738,702,504 |
| Other Liabilities | 2,006,236,531 | | 2,086,698,527 |
| Provisions | (2,040,482,110) | | (326,781,822) |
| Payments of Income tax | (388,120,568) | | (2,177,834,447) |
| | | | |
| Net Cash Flows provided by Operating Activities | 8,030,562,308 |
| 7,915,273,764 |
| | | | |
| CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES | |
| |
| Payments for Acquisition of Property, Plant and Equipment | (3,355,545,045) | | (3,288,358,277) |
| Payments for Acquisition of Intangible Assets | (870,606,968) | | (720,084,159) |
| Acquisition of Government and Corporate Securities | 12,178,856 | | (1,601,190,594) |
| Collection of Other Investments | - | | 32,431,959 |
| Proceeds from Sale of Property, Plant and Equipment and Intangible Assets | 166,953,824 | | 38,785,724 |
| Dividends Collected | 186,349,414 | | 410,304,637 |
| Proceeds from Disposal of Unconsolidated Affiliates | - | | 108,531,880 |
| Transactions with Securities, Bonds and Other Placements, Net | (1,214,816,764) | | (1,653,532,687) |
| Payment of capital contributions | (634,156) | | (799,870,696) |
| | | | |
| Net Cash Flows used in Investing Activities | (5,076,120,839) |
| (7,472,982,213) |
| | | | |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | |
| |
| Loans Obtained | 4,928,316,320 | | 2,842,091,529 |
| (Return) Collection of Counter Guarantee | (149,822,261) | | 1,083,305,462 |
| Payment of Financial Debt | (2,842,666,011) | | (1,193,139,253) |
| Payment of Interest | (1,719,833,734) | | (507,754,148) |
| Payments to Non-Controlling Interests, net | - | | (36,783,578) |
| Payment of Lease Liabilities | (258,426,579) | | (276,726,063) |
| | | | |
| Net Cash Flows (used in) / provided by Financing Activities | (42,432,265) | | 1,910,993,949 |
| | | | |
| Net Increase in Cash Flow | 2,912,009,204 |
| 2,353,285,500 |
| | | | |
| Cash and Cash Equivalents at the Beginning of the Year | 15,734,383,039 |
| 16,953,181,329 |
| FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS | (2,131,771,817) | | (3,464,388,568) |
| Decrease in Cash Due to Deconsolidation of Subsidiaries (1) | - | | 4,082,467 |
| Cash and Cash Equivalents at the End of the Period | 16,514,620,426 |
| 15,846,160,728 |
(1) Deconsolidation of cash flows, net, from Auto Sports S.A. as of September 30, 2022.
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