GCLA — Grupo Clarin SA News Story

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REG - Grupo Clarin S.A. - Nine Month and Third Quarter 2020 Results

Grupo Clarin SAAnnouncement

07/12/2020 07:01

RNS Number : 6741H

Grupo Clarin S.A.

07 December 2020

Grupo Clarín Announces its Nine Month and Third Quarter 2020 Results

Buenos Aires, Argentina, December 4, 2020 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its Nine month and Third quarter 2020 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards ^(*) ("IFRS") as of September 30, 2020 and are stated in Argentine Pesos ("Ps"), unless otherwise indicated.

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

Highlights (9M20 vs.9M19):

§ Total Revenues reached Ps. 16,874.6 million, a decrease of 28.7% compared to 9M19, mainly due to lower advertising revenues in all segments and lower circulation in the Printing and Publishing segment.

§ Adjusted EBITDA ⁽¹⁾ reached Ps. 1,364.3 million, a decrease of 33.2% compared to 9M19, mainly driven by lower results in the Broadcasting and Programming segment.

§ Grupo Clarín's Adjusted EBITDA Margin ⁽²⁾ was 8.1% in 9M20, compared to 8.6% in 9M19.

§ Loss for the period totaled Ps. 883.8 million, compared to Ps. 979.8 million loss reported in 9M19. Loss for the period attributable to Equity Shareholders amounted Ps 708.7 million in 9M20.

FINANCIAL HIGHLIGHTS


(In millions of Ps.)	9M20	9M19	% Ch.	3Q20	2Q20	3Q19	QoQ	YoY
Total Revenues	16,874.6	23,665.7	(28.7%)	5,858.3	5,212.6	8,230.1	12.4%	(28.8%)
Adjusted EBITDA ⁽¹⁾	1,364.3	2,041.4	(33.2%)	842.4	669.6	880.1	25.8%	(4.3%)
Adjusted EBITDA Margin ⁽²⁾	8.1%	8.6%	(6.3%)	14.4%	12.8%	10.7%	11.9%	34.5%
Income (Loss) for the period	(883.8)	(979.8)	(9.8%)	(477.3)	305.6	(624.8)	(256.2%)	(23.6%)
Attributable to:
Equity Shareholders	(708.7)	(865.9)	(18.2%)	(461.0)	352.7	(598.4)	(230.7%)	23.0%
Non-Controlling Interests	(175.2)	(113.9)	53.8%	(16.4)	(47.1)	(26.4)	(65.1%)	37.7%

(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. 16,874.6 million, a decrease of 28.7% from Ps. 23,665.7 million in 9M19. Advertising revenues decreased 40.9% and represented around 37.4% of the Total Revenues of the Company. Circulation revenues decreased 22.4% and represented 29.4% of the Total.

Following is a breakdown of Total Revenues by business segment:

REVENUES

(In millions of Ps.)	9M20	9M19	YoY	3Q20	2Q20	3Q19	QoQ	YoY
Printing and Publishing	8,294.6	11,753.2	(29.4%)	2,696.7	2,664.3	4,122.0	1.2%	(34.6%)
Broadcasting and Programming	7,930.8	10,594.7	(25.1%)	2,907.2	2,431.3	3,768.1	19.6%	(22.8%)
Others	1,611.6	2,654.7	(39.3%)	552.5	431.2	798.5	28.2%	(30.8%)
Subtotal	17,836.9	25,002.6	(28.7%)	6,156.4	5,526.7	8,688.6	11.4%	(29.1%)
Eliminations	(962.3)	(1,336.9)	(28.0%)	(298.1)	(314.1)	(458.5)	(5.1%)	(35.0%)
Total	16,874.6	23,665.7	(28.7%)	5,858.3	5,212.6	8,230.1	12.4%	(28.8%)

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 10,393.2 million, a decrease of 28.8% from Ps. 14,599.1 million reported in 9M19 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. 5,117.1 million, a decrease of 27.2% from Ps. 7,025.2 million in 9M19. This drop was mainly due to lower salaries and fees for services across all business segments.

Adjusted EBITDA reached Ps. 1,364.3 million, a decrease of 33.2% from Ps. 2,041.4 million reported for 9M19. This decrease was driven by lower advertising revenues across all business segments, partially offset by lower cost and expenses.

Following is a breakdown of adjusted EBITDA by business segment:

ADJUSTED EBITDA

(In millions of Ps.)	9M20	9M19	YoY	3Q20	2Q20	3Q19	QoQ	YoY
Printing and Publishing	165.2	41.1	302.3%	208.4	57.3	230.2	263.4%	(9.5%)
Broadcasting and Programming	1,175.7	2,069.6	(43.2%)	622.7	598.2	712.1	4.1%	(12.5%)
Others	23.4	(69.3)	(133.7%)	11.3	14.1	(62.2)	20.0%	118.1%
Total	1,364.3	2,041.4	(33.2%)	842.4	669.6	880.1	25.8%	(4.3%)

Financial results net totaled Ps. (498.4) million compared to Ps. (1,522.0) million in 9M19. This decrease was mainly due to lower interest payments due to lower levels of debt.

Equity in earnings from unconsolidated affiliates in 9M20 totaled Ps. 688.9 million, compared to Ps. 236.3 million in 9M19.

Other Income (expenses), net reached Ps. (1,040.6) million, compared to Ps. (215.7) million in 9M19.

Income tax as of 9M20 reached Ps. (475.7) million, from Ps. (466.1) million in 9M19.

Loss for the period totaled Ps. 883.8 million compared to Ps. 979.8 million losses reported in 9M19. This was mainly due to lower EBITDA in the Broadcasting and Programming segment. The Equity Shareholders Loss for the period amounted Ps. 708.7 million.

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 285.4 million in 9M20, a decrease of 55.3% from Ps. 638.3 million reported in 9M19. Out of the total CAPEX in 9M20, 49.2% was allocated towards the Broadcasting and Programming segment, 46.3% to the Printing and Publishing segment and the remaining 4.6% to other activities.

SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2020

(In millions of Ps.)	Printing & Publishing	Broadcasting & Programming	Others	Eliminations	Total	%
Advertising	1,845.1	4,510.4	51.8	(94.9)	6,312.4	37.4%
Circulation	4,954.5	-	- -	-	4,954.5	29.4%
Printing	609.9	-	- -	(36.2)	573.7	3.4%
Programming	-	3,350.2	-	-	3,350.2	19.9%
Other Sales	885.1	70.2	1,559.8	(831.3)	1,683.8	10.0%
Total Sales	8,294.6	7,930.8	1,611.6	(962.3)	16,874.6	100.0%

SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2019

(In millions of Ps.)	Printing & Publishing	Broadcasting & Programming	Others	Eliminations	Total	%
Advertising	3,611.6	7,126.4	107.5	(163.9)	10,681.6	45.1%
Circulation	6,386.0	-	-	-	6,386.0	27.0%
Printing	580.8		-	(58.8)	522.0	2.2%
Programming	-	3,121.0	-	-	3,121.0	13.2%
Other Sales	1,174.9	347.3	2,547.1	(1,114.2)	2,955.1	12.5%
Total Sales	11,753.2 1,174.9	10,594.7 347.3	2,654.7 2,547.1	(1,336.9)	23,665.7 2,955.1	100.0%

RESULTS BY BUSINESS SEGMENT

BROADCASTING AND PROGRAMMING

Revenues

Revenues decreased by 25.1% to Ps. 7,930.8 million in 9M20, compared to Ps. 10,594.7 million in 9M19 due to the lower advertising revenues that was partially offset by higher programming revenues.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 23.9% to Ps. 5,026.9 million in 9M20, compared to Ps. 6,607.6 million in 9M19. This is mainly attributable to lower salaries and fees for services.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses decreased by 9.9% to Ps. 1,728.1 million in 9M20, compared to Ps. 1,917.6 million in 9M19. The decrease was primarily the result of lower salaries and fees for services.

Depreciation and Amortization

Depreciation and amortization expenses increased by 4.3% to Ps. 435.4 million in 9M20 compared to Ps. 417.4 million reported in 9M19.

PRINTING AND PUBLISHING

Revenues

Total revenues decreased by 29.4% to Ps. 8,294.6 million in 9M20, mainly as a result of lower circulation and advertising revenues in real terms.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 31.1% to Ps. 4,633.6 million in 9M20, compared to Ps. 6,729.5 million in 9M19. The decrease was mainly the result of lower salaries, printing costs and lower severance payments.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses decreased by 29.8% to Ps. 3,495.8 million in 9M20, compared to the Ps. 4,982.6 million reported in 9M19. This was primarily the result of lower salaries and advertising expenses.

Depreciation and Amortization

Depreciation and amortization expenses decreased by 27.7% to Ps. 298.9 million in 9M20 compared to Ps. 413.2 million in 9M19.

OTHERS

Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gestión Compartida S.A. to third parties, as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the 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 39.3% to Ps. 1,611.6 from Ps. 2,654.7 million reported in 9M19, due to lower revenues from Gestión Compartida and Grupo Clarin. EBITDA resulted in Ps. 23.4 million.

OPERATING STATISTICS BY BUSINESS SEGMENT

PRINTING AND PUBLISHING

	9M20	9M19	YoY	3Q20	2Q20	3Q19	QoQ	YoY
Circulation ⁽¹⁾	247.0	233.3	5.9%	271.6	220.2	237.4	23.3%	14.4%
Circulation share % ⁽²⁾	44.0%	40.4%	8.7%	43.2%	46.7%	41.4%	(7.6%)	4.3%

⁽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.

BROADCASTING AND PROGRAMMING

	9M20	9M19	YoY	3Q20	2Q20	3Q19	QoQ	YoY
Advertising Share % ⁽¹⁾	36.6%	38.4%	(4.6%)	37.5%	36.0%	38.8%	4.3%	(3.3%)
Audience Share % ⁽²⁾
Prime Time	30.1%	37.4%	(19.5%)	30.6%	28.1%	39.4%	9.1%	(22.4%)
Total Time	30.3%	32.6%	(7.1%)	31.4%	29.4%	32.7%	6.5%	(4.0%)

⁽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

9M20

9M19

YoY

Page Views ⁽¹⁾

1,066.5

1,069.6

(0.3%)

Mobile page Views

764.0

732.5

4.3%

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

DEBT AND LIQUIDITY

(In millions of Ps.)	September 2020	September 2019	% Change
Short Term and Long Term Debt
Current Financial Debt	351.2	2,055.5	(82.9%)
Financial loans	68.8	1,416.8	(95.1%)
Accrued interest	11.0	31.5	(65.1%)
Acquisition of equipment	11.2	9.9	13.3%
Sellers Financing Capital	-	-	NA
Related Parties Capital	6.8	9.3	(26.8%)
Bank overdraft	243.9	578.3	(57.8%)
Non-Current Financial Debt	1,312.4	562.2	133.4%
Financial loans	1,299.0	559.4	132.2%
Acquisition of equipment	13.4	2.8	375.4%
Related Parties Capital	-	-	NA
Total Financial Debt (A)	1,663.6	2,617.7	(36.4%)
Total Short Term and Long Term Debt	1,663.6	2,617.7	(36.4%)

Cash and Cash Equivalents (B)	2,847.7	3,156.9	(9.8%)
Net Debt (A) - (B)	(1,184.0)	(539.2)	119.6%
Net Debt/Adjusted Ebitda ⁽¹⁾	(0.3x)	(0.2x)	98.3%

Total Financial Debt⁽¹⁾ decreased from Ps. 2,617.7 million to Ps. 1,663.6 million, this represents a decrease of 36.4% in the Total Debt. Debt coverage ratio ⁽¹⁾ as of September 30, 2020 was 0.5x in terms of Total Financial Debt.

⁽¹⁾Debt Coverage Ratio is defined as Total Financial Debt divided by Adjusted EBITDA (Last Quarter Annualized). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.

REVENUES AND EBITDA - IAS 29 Adjustment

REVENUES

(In millions of Ps.)	9M20	9M19	YoY	9M20 ex IAS 29	IAS 29 Adjustment	9M20 as reported	9M19 ex IAS 29	IAS 29 Adjustment	9M19 as reported
Printing and Publishing	8,294.6	11,753.2	(29.4%)	7,891.9	402.7	8,294.6	7,438.2	4,315.0	11,753.2
Broadcasting and Programming	7,930.8	10,594.7	(25.1%)	7,545.7	385.0	7,930.8	6,705.1	3,889.7	10,594.7
Others	1,611.6	2,654.7	(39.3%)	1,533.3	78.2	1,611.6	1,680.1	974.6	2,654.7
Subtotal	17,836.9	25,002.6	(28.7%)	16,971.0	866.0	17,836.9	15,823.4	9,179.3	25,002.6
Eliminations	(962.3)	(1,336.9)	(28.0%)	(915.6)	(46.7)	(962.3)	(846.1)	(490.8)	(1,336.9)
Total	16,874.6	23,665.7	(28.7%)	16,055.3	819.2	16,874.6	14,977.2	8,688.4	23,665.7

(In millions of Ps.)	3Q20	3Q19	YoY	3Q20 ex IAS 29	IAS 29 Adjustment	3Q20 as reported	3Q19 ex IAS 29	IAS 29 Adjustment	3Q19 as reported
Printing and Publishing	2,696.7	4,122.0	(34.6%)	2,849.8	(153.1)	2,696.7	1,991.7	2,130.3	4,122.0
Broadcasting and Programming	2,907.2	3,768.1	(22.8%)	2,600.5	306.7	2,907.2	1,897.3	1,870.9	3,768.1
Digital Content and Others	552.5	798.5	(30.8%)	564.0	(11.5)	552.5	426.6	371.9	798.5
Subtotal	6,156.4	8,688.6	(29.1%)	6,014.3	142.2	6,156.4	4,315.5	4,373.1	8,688.6
Eliminations	(298.1)	(458.5)	(35.0%)	(317.9)	19.8	(298.1)	(224.4)	(234.2)	(458.5)
Total	5,858.3	8,230.1	(28.8%)	5,696.3	162.0	5,858.3	4,139.0	4,139.0	8,230.1

EBITDA

(In millions of Ps.)	9M20	9M19	YoY	9M20 ex IAS 29	IAS 29 Adjustment	9M20 as reported	9M19 ex IAS 29	IAS 29 Adjustment	9M19 as reported
Printing and Publishing	165.2	41.1	302%	157.2	8.0	165.2	26.0	15.1	41.1
Broadcasting and Programming	1,175.7	2,069.6	(43.2%)	1,118.6	57.1	1,175.7	1,309.8	759.8	2,069.6
Digital Content and Others	23.4	(69.3)	134%	22.2	1.1	23.4	(43.8)	(25.4)	(69.3)
Total	1,364.3	2,041.4	(33.2%)	1,298.0	66.2	1,364.3	1,291.9	749.4	2,041.4

(In millions of Ps.)	3Q20	3Q19	YoY	3Q20 ex IAS 29	IAS 29 Adjustment	3Q20 as reported	3Q19 ex IAS 29	IAS 29 Adjustment	3Q19 as reported
Printing and Publishing	208.4	230.2	(9.5%)	139.7	68.7	208.4	39.9	190.3	230.2
Broadcasting and Programming	622.7	712.1	(12.5%)	493.5	129.2	622.7	376.8	335.2	712.1
Digital Content and Others	11.3	(62.2)	118%	(39.6)	50.9	11.3	4.5	(66.8)	(62.2)
Subtotal	842.4	880.1	(4.3%)	593.7	248.7	842.4	421.3	458.8	880.1

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)	39.00
Total Shares	106,776,004
Total GDSs	53,388,002
Closing Price	December 4, 2020

CONFERENCE CALL AND WEBCAST INFORMATION

GRUPO CLARIN S.A.

(BCBA: GCLA; LSE: GCLA)

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

to discuss Third Quarter 2020 Results

Date: Wednesday, December 9, 2020

Time: 3:00pm Buenos Aires Time/6:00pm London Time/1:00pm 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 3Q20 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/gcla201209r0BN4pk0.html

NOTE: Grupo Clarín will release its Third Quarter 2020 Earnings on Friday, December 4, 2020

after the markets close.

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: 64633558

The webcast presentation will be archived at http://www.grupoclarin.com/ir/

Investor Relations Contacts
In Buenos Aires:	In London:	In New York:

Agustín Medina Manson	Alex Money	Melanie Carpenter

Grupo Clarín S.A.	Jasford IR	I-advize Corporate Communications
Tel: +54 11 4309 7215	Tel: +44 20 3289 5300	Tel: +1 212 406 3692
Email: investors@grupoclarin.com	E-mail: alex@jasford.com	E-mail: clarin@i-advize.com

ABOUT THE COMPANY

Grupo Clarín is the largest media company in Argentina and a leading company in printing and publishing and broadcasting and programming markets. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers in Latin America. Grupo Clarín is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age.

Disclaimer

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Grupo Clarín does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019,
AND FOR THE THREE-MONTH PERIODS BEGINNING ON JULY 1

AND ENDED ON SEPTEMBER 30, 2020 AND 2019

In Argentine Pesos (Ps.)

	September 30, 2020	September 30, 2019	July 1, 2020 through September 30, 2020	July 1, 2019 through September 30, 2019



Revenues	16,874,575,390	23,665,661,300	5,858,319,188	8,230,116,627

Cost of Sales (1)	(11,153,362,364)	(15,461,985,118)	(3,580,703,747)	(5,240,934,659)

Subtotal - Gross Profit	5,721,213,026	8,203,676,182	2,277,615,441	2,989,181,968

Selling Expenses (1)	(2,622,576,292)	(3,864,706,910)	(803,315,355)	(1,309,792,582)
Administrative Expenses (1)	(2,656,693,395)	(3,351,266,957)	(917,279,091)	(1,128,015,756)

Other Income and Expenses, net	(1,040,579,987)	(215,664,421)	(802,236,594)	(183,642,213)

Financial Expenses on Debt	(575,804,610)	(1,149,498,591)	(147,956,317)	(605,560,180)
Gain (Loss) on Net Monetary Position	(34,027,453)	(295,797,966)	(42,068,725)	(112,213,083)
Other Financial Results, net	111,388,397	(76,703,591)	15,337,105	(83,196,397)
Financial Results	(498,443,666)	(1,522,000,148)	(174,687,937)	(800,969,660)

Equity in Earnings from Associates	688,934,646	236,310,922	240,288,816	82,393,136

Income (Loss) before Income Tax	(408,145,668)	(513,651,332)	(179,614,720)	(350,845,107)

Income Tax	(475,682,433)	(466,135,288)	(297,712,602)	(273,935,720)

Net Income (Loss) for the Period	(883,828,101)	(979,786,620)	(477,327,322)	(624,780,827)


Other Comprehensive Income

Items which can be reclassified to Net Income (Loss)
Variation in Translation Differences of Foreign Operations	(3,946,321)	(18,748,647)	4,788,149	(32,399,420)
Other Comprehensive Income (Loss) for the Period	(3,946,321)	(18,748,647)	4,788,149	(32,399,420)

TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD	(887,774,422)	(998,535,267)	(472,539,173)	(657,180,247)

(Loss) Income Attributable to:

Shareholders of the Parent Company	(708,676,514)	(865,867,366)	(460,963,959)	(598,400,181)

Non-Controlling Interests	(175,151,587)	(113,919,254)	(16,363,363)	(26,380,646)

Total Comprehensive Income (Loss) Attributable to:

Shareholders of the Parent Company	(712,622,835)	(864,736,684)	(456,175,810)	(596,588,619)

Non-Controlling Interests	(175,151,587)	(133,798,583)	(16,363,363)	(60,591,628)

Basic and Diluted Net Income (Loss) per Share	(6.64)	(8.11)	(4.32)	(5.60)

⁽¹⁾Includes amortization of intangible assets and film library, right-of-use assets and depreciation of property, plant and equipment in the amount of $ 922,337,978 and $ 1,053,662,400 for the nine-month periods ended September 30, 2020 and 2019, respectively.

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30^th, 2020 available at http://www.grupoclarin.com/ir.

GRUPO CLARÍN S.A.

CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2020, AND DECEMBER 31, 2019

In Argentine Pesos (Ps.)

	September 30, 2020	December 31, 2019
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment	6,413,563,265	6,813,173,455
Intangible Assets	442,617,420	518,456,690
Goodwill	47,498,174	1,138,785,778
Deferred Tax Assets	697,660,810	603,217,586
Investments in Unconsolidated Affiliates	2,619,118,052	2,033,370,888
Right-of-Use Assets	79,149,256	115,098,252
Other Investments	13,437,910	-
Inventories	62,366,026	21,984,757
Other Assets	40,795,937	41,882,840
Other Receivables	157,650,435	321,585,691
Trade Receivables	58,081,667	51,068,322
Total Non-Current Assets	10,631,938,952	11,658,624,259

CURRENT ASSETS
Inventories	1,115,695,695	1,604,724,620
Other Assets	121,250,794	145,653,105
Other Receivables	2,038,401,848	1,873,167,755
Trade Receivables	6,416,170,143	7,094,379,251
Other Investments	1,885,090,674	864,163,516
Cash and Banks	995,918,549	1,841,317,110
Total Current Assets	12,572,527,703	13,423,405,357

Total Assets	23,204,466,655	25,082,029,616

EQUITY (as per the corresponding statement)
Attributable to Shareholders of the Parent Company
Shareholders' Contribution	11,185,708,553	13,028,994,750
Other Items	13,907,546	28,372,104
Retained Earnings	632,845,270	(501,764,413)
Total Attributable to Shareholders of the Parent Company	11,832,461,369	12,555,602,441

Attributable to Non-Controlling Interests	84,633,426	252,566,804
Total Equity	11,917,094,795	12,808,169,245

LIABILITIES
NON-CURRENT LIABILITIES
Provisions and Other Charges	894,496,434	974,885,793
Financial Debt	1,288,439,607	1,099,570,377
Deferred Tax Liabilities	353,183,707	344,949,215
Taxes Payable	16,457,185	35,389,576
Lease Liabilities	21,497,756	32,488,854
Other Liabilities	232,322,887	223,890,537
Trade and Other Payables	44,031,718	82,735,604
Total Non-Current Liabilities	2,850,429,294	2,793,909,956

CURRENT LIABILITIES
Financial Debt	375,209,488	1,188,849,993
Taxes Payable	610,508,359	644,149,293
Lease Liabilities	62,721,630	82,311,221
Other Liabilities	961,389,797	996,323,616
Trade and Other Payables	6,427,113,292	6,568,316,292
Total Current Liabilities	8,436,942,566	9,479,950,415

Total Liabilities	11,287,371,860	12,273,860,371

Total Equity and Liabilities	23,204,466,655	25,082,029,616

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019

In Argentine Pesos (Ps.)

	Equity attributable to Shareholders of the Parent Company										Equity Attributable to Non-Controlling Interests	Total Equity
	Shareholders' Contribution				Other Items		Retained Earnings			Total Equity of 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 of Controlling Interests
Balances as of January 1, 2020	106,776,004	4,487,880,245	8,434,338,501	13,028,994,750	173,413,695	(145,041,591)	-	1,341,521,784	(1,843,286,197)	12,555,602,441	252,566,804	12,808,169,245
Reversal of Additional Paid-in Capital (Note 9.a)	-	-	(1,843,286,197)	(1,843,286,197)	-	-	-	-	1,843,286,197	-	-	-
Changes in minority interest in a subsidiary	-	-	-	-	-	(10,518,237)	-	-	-	(10,518,237)	10,518,237	-
Dividends and Other Movements of Non-Controlling Interest	-	-	-	-	-	-	-	-	-	-	(3,300,028)	(3,300,028)
Net Income (Loss) for the Period	-	-	-	-	-	-	-	-	(708,676,514)	(708,676,514)	(175,151,587)	(883,828,101)
Other Comprehensive Income:
Variation in Translation Differences of Foreign Operations	-	-	-	-	(3,946,321)	-	-	-	-	(3,946,321)	-	(3,946,321)
Balances as of September 30, 2020	⁽¹⁾106,776,004	4,487,880,245	6,591,052,304	11,185,708,553	169,467,374	(155,559,828)	-	⁽²⁾1,341,521,784	(708,676,514)	11,832,461,369	84,633,426	11,917,094,795

Balances as of January 1, 2019	106,776,004	4,487,880,245	10,804,762,479	15,399,418,728	172,554,672	(145,041,591)	153,829,141	11,270,656,011	(12,453,387,346)	14,398,029,615	229,366,219	14,627,395,834
Reversal of Reserves and Additional Paid-in capital	-	-	(2,370,423,978)	(2,370,423,978)	-	-	(153,829,141)	(9,929,134,227)	12,453,387,346	-	-	-
Dividends and Other Movements of Non-Controlling Interest	-	-	-	-	-	-	-	-	-	-	(21,040,678)	(21,040,678)
Net Income (Loss) for the Period	-	-	-	-	-	-	-	-	(865,867,366)	(865,867,366)	(113,919,254)	(979,786,620)
Other Comprehensive Income:
Variation in Translation Differences of Foreign Operations	-	-	-	-	1,130,682	-	-	-	-	1,130,682	(19,879,329)	(18,748,647)
Balances as of September 30, 2019	⁽¹⁾106,776,004	4,487,880,245	8,434,338,501	13,028,994,750	173,685,354	(145,041,591)	-	⁽²⁾1,341,521,784	(865,867,366)	13,533,292,931	74,526,958	13,607,819,889

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

^{(2) 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, 2020 AND 2019

In Argentine Pesos (Ps.)

		September 30, 2020	September 30, 2019
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net Income (Loss) for the Period		(883,828,101)	(979,786,620)
Income Tax		475,682,433	466,135,288
Accrued Interest, net		176,936,238	452,736,231
Adjustments to reconcile Net Income (Loss) for the Period to Cash provided by Operating Activities:
Depreciation of Property, Plant and Equipment		626,101,198	648,655,548
Amortization of Intangible Assets and Film Library		221,232,381	291,930,528
Amortization of Right-of-Use Assets		75,004,399	113,076,324
Net Allowances		287,562,434	324,352,005
Financial Income, except Interest		10,954,164	196,991,808
Gain (Loss) on Net Monetary Position		34,027,453	295,797,966
Equity in Earnings from Associates		(688,934,646)	(236,310,922)
Impairment of Goodwill		1,091,287,604	-
Other Income and Expenses		(34,070,218)	270,161,917
Changes in Assets and Liabilities:
Trade Receivables		(1,020,611,223)	(1,145,413,227)
Other Receivables		(477,042,775)	(1,153,616,396)
Inventories		320,209,396	(72,208,168)
Other Assets		25,840,419	(73,309,586)
Trade and Other Payables		1,425,034,272	1,858,941,167
Taxes Payable		(130,611,752)	(157,069,104)
Other Liabilities		202,072,733	784,343,751
Provisions		(86,996,277)	(94,160,057)
Payments of Income tax		(386,992,286)	(242,070,783)

	Net Cash Flows provided by Operating Activities	1,262,857,846	1,549,177,670

	CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES
	Payments for Acquisition of Property, Plant and Equipment	(285,356,533)	(638,290,256)
	Payments for Acquisition of Intangible Assets	(123,355,737)	(104,887,333)
	Capital Contributions in Associates	(58,087)	(197,331)
	Proceeds from Sale of Property, Plant and Equipment	10,026,726	-
	Proceeds from Sale of Intangible Assets	-	26,233,253
	Collection of granted loans	32,171,557	-
	Proceeds from Sale of Other Assets	1,588,174	2,742,107
	Dividends Collected	68,063,146	17,098,815
	Transactions with Notes, Bonds and Other Placements, Net	89,526,427	72,956,976

	Net Cash Flows used in Investing Activities	(207,394,327)	(624,343,769)

	CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
	Loans Obtained	757,008,500	2,124,459,633
	Payment of Financial Debt	(1,310,173,092)	(1,540,080,816)
	Payment of Interest	(234,616,492)	(546,379,219)
	Payment of Lease Liabilities	(59,221,911)	(129,634,914)
	Payments to Non-Controlling Interests, net	(3,300,028)	(8,753,843)

	Net Cash Flows used in Financing Activities	(850,303,023)	(100,389,159)

	FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS	(62,862,689)	2,218,395

	Net Increase in Cash Flow	142,297,807	826,663,137
	Cash and Cash Equivalents at the Beginning of the Year	2,705,399,108	2,330,279,350
	Cash and Cash Equivalents at the End of the Period (Note 2.4)	2,847,696,915	3,156,942,487

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GCLA — Grupo Clarin SA News Story

REG - Grupo Clarin S.A. - Nine Month and Third Quarter 2020 Results

GRUPO CLARÍN S.A.

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019

In Argentine Pesos (Ps.)

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