REG - Cablevision Holding - Third Quarter and Nine-Month 2018 Results
Cablevisión Holding Announces Third Quarter and Nine-Month 2018 Results
Buenos Aires, Argentina, November 8, 2018 - Cablevisión Holding S.A., ("Cablevision Holding", "CVH" or "the Company" - BCBA: CVH; LSE: CVH), announced today its Third Quarter and Nine-Month 2018 Results. Figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") as of September 30, 2018 and are stated in Argentine Pesos ("Ps." or "P$"), unless otherwise indicated.
As of January 1, 2018, the Merger between Telecom Argentina S.A. and Cablevisión S.A. (CVH's Subsidiary) has become effective and, consequently, the Company has become the controlling shareholder of Telecom Argentina S.A. (NYSE: TEO, BCBA: TECO2).
CVH Highlights 9M18:
§ Revenues reached Ps. 99,494 million mainly driven by mobile, Internet and Cable TV services.
§ Total Costs reached Ps. 64,482 million mainly driven by Employee benefit expenses and severance payments, Fees for services, maintenance, materials and supplies, Taxes and fees with the regulatory authority and Programming and content costs.
§ EBITDA reached Ps. 35,012 million and EBITDA Margin was 35.2%.
§ Capex amounted to Ps. 24,046 million in 9M18, equivalent to 24.2% of Consolidated Revenues.
§ Consolidated Financial Debt and Net Debt reached Ps. 99,801 million and Ps. 81,936 respectively. Debt Coverage Consolidated ratio as of Sep 2018 was 2.1x for Total Financial Debt and 1.7x in terms of Net Debt.
§ Mobile subscribers in Argentina reached 18.5 million, while Cable TV subscribers and Broadband accesses totaled 3.5 million and 4.1 million, respectively.
§ Net Income amounted to Ps. (23,836) million. Net Income attributable to the Controlling Company amounted to Ps. (12,560) million, influenced the negative FX impact over dollar denominated debt.
§ During the 9M18 the company made three mandatory prepayments under the USD 750 million Loan after receiving dividends from its subsidiaries. As of June 30, 2018, the outstanding principal amount of the Loan is of USD 217,304,813.
[1] The Company’s Management has not applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Decree No. 664/03 issued by the Executive Branch, whereby the CNV cannot accept the presentation of restated financial statements, is still in effect.
CVH FINANCIAL HIGHLIGHTS
Millions of Ps.
9M18
3Q18
2Q18
QvsQ
Consolidated Revenues
99,494
35,315
33,481
5.5%
Employee benefit expenses and severance payments
(17,610)
(6,547)
(5,841)
12.1%
Fees for services, maintenance, materials and supplies
(9,331)
(3,041)
(3,394)
(10.4%)
Taxes and fees with the regulatory authority
(8,028)
(2,761)
(2,798)
(1.3%)
Programming and content costs
(7,144)
(2,615)
(2,384)
9.7%
Commissions and advertising
(6,333)
(2,515)
(2,109)
19.3%
Other operating income and expenses
(16,036)
(6,034)
(5,525)
9.2%
EBITDA1
35,012
11,802
11,430
3.3%
EBITDA Margin2
35,2%
33,4%
34,1%
(0.0pp)
Net Income
(23,836)
(16,150)
(10,035)
(60.9%)
Attributable to:
Controlling Company
(12,561)
(7,828)
(4,953)
(58.0%)
Non-controlling interest
(11,275)
(8,322)
(5,082)
(63.8%)
(1) EBITDA is defined as Revenues minus Operating Cost and Expenses (excluding depreciation and amortization). We believe that EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare companies on the basis of operating performance, leverage and liquidity. Nonetheless, 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 EBITDA in a different manner; therefore, EBITDA as reported by other companies may not be comparable to EBITDA as we report it. (2) EBITDA Margin is defined as EBITDA over Revenues.
CVH Standalone DEBT AND LIQUIDITY
(In millions of Ps.)
Sep 2018
June 2018
% change
Short Term and Long Term Debt
Current Financial Debt
8,922
6,216
44%
Financial loans
8,964
6,269
43%
Accrued interest
9
7
29%
Measurement at fair Value
(51)
(60)
-15%
Non-Current Financial Debt
0
0
Total Short Term and Long Term Debt (A)
8,922
6,216
44%
Cash and Equivalents (B) (1)
1,514
1,245
22%
Net Debt (A)-(B)
7,408
4,971
49%
(1) Includes Ps. 314 millions and Ps. 209 millions of Reserve Account as of Sep 18 and June 18 respectively.
Total Financial Debt and Net Debt, reached Ps. 8,922 million and Ps. 7,408 million respectively.
SUBSIDIARIES INFORMATION
CVH initiated activities on May 1, 2017. As a result, the Company does not have comparable figures for 1S17. Despite this fact, the Company wants to offer to the investor community the results of Telecom Argentina S.A., where CVH owns a 39,1% interest and consolidates 100% of the operations as of September 30, 2018.
Telecom Argentina S.A.
announces consolidated nine month period ('9M18') and third quarter results for fiscal year 2018 ('3Q18')*
Note: The merger between Telecom and Cablevisión was considered an inverse acquisition under IFRS 3 (Business Combinations), with Cablevisión being the surviving entity for accounting purposes. Thus, for the purposes of preparing the consolidated financial statements of Telecom Argentina as of September 30, 2018: i) the comparative figures as of December 31, 2017 and September 30, 2017 correspond to those that arise from the consolidated financial statements of Cablevisión at their respective dates; and ii) the corresponding information for the nine-month period ended September 30, 2018, incorporates on the basis of figures corresponding to Cablevisión, the effect of the application of Telecom Argentina's method of acquisition at its fair value in accordance with the IFRS 3 guidelines (see Financial Table No. 3) and the operations of Telecom Argentina as of January 1, 2018. On the other hand, in order to ease the understanding and analysis of the earnings evolution by its users, additional tables of the income statements are included, exposing on pro forma basis the comparative figures for 9M17 as if the merger between Telecom and Cablevisión had been effective during that period. The variations of results vs. 9M17 identified in this press release emanate from the comparison with the aforementioned "pro forma" information (see Financial Tables No 6, No 7, No 10, No 11, No 14 and No 15).
§ Consolidated Revenues amounted to P$99,494 million in 9M18 (+29.3% vs. 9M17); of which Service Revenues reached P$91,910 million (+29.3% vs. 9M17). Considering the breakdown of Service Revenues, Mobile Services amounted P$34,511 million (+18.3% vs. 9M17); Internet Services totaled P$22,448 million (+32.6% vs. 9M17), while Cable TV Services and Fixed Telephony and Data Services amounted to P$21,417 million (+42.6% vs. 9M17) and P$13,086 million (+36.4% vs. 9M17), respectively.
§ Mobile subscribers in Argentina: 18.9 million in 9M18, while Cable TV subscribers and Broadband accesses totaled 3.5 million and 4.1 million, respectively.
§ Mobile Internet revenues of Personal in Argentina increased 41.2% vs. 9M17; reaching 59.1% participation in Service Revenues.
§ Mobile ARPU of Personal in Argentina in 9M18 increased to P$170.4 per month in 9M18 (+22.6% vs. 9M17).
§ Broadband ARPU reached P$604.8 per month in 9M18 (+34.9% vs. 9M17). Monthly churn was 1.9% in 9M18.
§ Cable TV ARPU increased to P$674.9 per month in 9M18 (+26.9% vs. 9M17).
§ Consolidated Operating costs -including D&A and impairment of PP&E- totaled P$79,550 million in 9M18 (+26.1% vs. 9M17).
§ Operating Income before Depreciation and Amortization reached P$35,196 million in 9M18 (+36.4% vs. 9M17), 35.4% of Consolidated Revenues.
§ Net Loss amounted to P$18,540 million in 9M18. Net Loss attributable to the Controlling Company amounted to P$18,589 million during the same period. The mentioned Net Loss mainly reflects the impact of FX losses over financial results, partially offset by the growth in Operating Income before D&A.
§ Capex reached P$24,046 million in 9M18, equivalent to 24.2% of Consolidated Revenues.
§ Net Financial Debt Position: P$67,901 million in 9M18.
*(Unaudited information - figures as of 9M17 calculated as the sum of the parts of Telecom Argentina's and Cablevisión's CAPEX)
**(Figures may not sum up due to rounding)
***(Calculated considering the average subscriber bases according to the billing criteria of each product)
Buenos Aires, November 7, 2018 - Telecom Argentina S.A. ('Telecom Argentina') - (NYSE: TEO; BASE: TECO2), one of Argentina's leading telecommunications companies, announced today a Net Loss of P$18,540 million for the nine-month period ended September 30, 2018, a decrease of P$26,182 million when compared to 9M17. Net loss attributable to the Controlling Company amounted to P$18.589 million (-P$26,160 million vs. 9M17).
During 9M18, Consolidated Revenues increased by 29.3% to P$99,494 million (+P$22,574 million vs. 9M17), mainly driven by Cable TV Services, Internet Services and Mobile Services. Moreover, Operating Income reached P$19,944 million (+P$6,090 million or +44.0% vs. 9M17).
Consolidated Operating Revenues
Mobile Services
As of September 30, 2018, mobile clients amounted to 21.2 million.
In 9M18, mobile services revenues represented P$34,511 million (+18.3% vs. 9M17). The commercial strategy was focused on promoting the consumption of mobile internet services through an update of the integrated offer of plans suitable for all market segments.
Mobile Services in Argentina
As of September 30, 2018, Personal reached 18.5 million subscribers in Argentina, where postpaid clients represented 38% of the subscriber base.
In 9M18, service revenues of Personal in Argentina (excluding equipment sales) amounted to P$29,480 million (+16.7% vs. 9M17), with 59.1% corresponding to mobile internet revenues (vs. 48.9% as in 9M17), as mobile internet revenues amounted to P$17,437 million (+41.2% vs. 9M17). In addition, equipment sales increased by 37.7% vs. 9M17, reaching P$7,230 million, equivalent to 19.7% of total revenues of Personal in Argentina.
The average monthly revenue per user ('ARPU') of Personal in Argentina amounted to P$170.4 during 9M18 (+22.6% vs. 9M17).
As of September 30, 2018, Nextel IDEN subscriber base reached approximately 0.4 million subscribers, where postpaid clients represented 80% of the subscriber base and prepaid clients represented the remaining 20%.
Commercial Initiatives
During the third quarter of 2018, Personal introduced its WiFi Calling service for mobile customers, which allows the client to make and receive calls using any Wi-Fi network in the world as if it was a local voice call.
Regarding infrastructure, Personal continued to enhance the mobile internet experience of its customers through the deployment of its 4G and 4G + network throughout Argentina, which currently covers more than 1,500 locations from La Quiaca to Ushuaia, and reaching more than 11.7 million customers with 4G devices throughout the country. Customers experience an average browsing speed that exceeds 20 Mbps, standing out as the fastest network in the country.
Personal in Paraguay ('Núcleo')
As of September 30, 2018, Núcleo's subscriber base reached around 2.4 million clients. Prepaid and postpaid customers represented 83% and 17%, respectively.
Núcleo generated service revenues equivalent to P$3,678 million during 9M18 (+79.7% vs. 9M17). Internet revenues amounted to P$1,632 million (+75.3% vs. 9M17) representing 44.4% of 9M18 service revenues (vs. 45.5% in 9M17).
Cable TV Services
Cable TV service revenues reached P$21,417 million in 9M18 (+42.6% vs. 9M17). This increase was mainly explained by an upselling of value added services combined with price adjustments. Cable TV subscribers totaled almost 3.5 million, while the Cable TV ARPU reached P$674.9 during 9M18, rising +26.9% vs. 9M17. Moreover, average monthly churn during 9M18 was 1.4%.
In the third quarter of 2018, Cablevisión continued to add featured titles to its on-demand content grid, being the most relevant the co-production Rizhoma Hotel, Naturaleza Salvaje and Pasado de Copas.
In addition, Telecom Argentina and Sony Pictures formalized an agreement to acquire content directly in Argentina, in order to offer more entertainment options to the customers, thus continuing to complete the Flow offer according to the their preferences.
Moreover, in August Cablevisión incorporated satellite technology to its offer in Uruguay in the cities of Montevideo, Canelones and San José, following a process of technological evolution that will allow adding more high definition channels to its programming and, in the near future, new value added services.
Fixed Telephony and Data Services
During 9M18, revenues generated by fixed telephony and data reached P$13,086 million in 9M18, +36.4% vs. 9M17. The increase in fixed telephony services was mainly explained by monthly fee price increases that came into effect for both corporate and residential fixed line customers, and additionally due to the bundled offer of packs that include voice and internet services ('Arnet + Voz'), that aim to achieve higher levels of customer loyalty and churn reduction.
As a result, the average monthly revenue billed per user ('ARBU') of fixed telephony reached P$236.6 in 9M18, +62.5% vs. 9M17.
Meanwhile, Data revenues increase (services mainly offered to Corporate customers, SMEs, Government and to other operators) was mainly driven by FX rate variations that affected those contracts that were adjusted by the $/U$S exchange rate and due to the increase in the number of clients, generated in a context that evidences the growing position of Telecom as an integrated ICT provider.
In this sense, FiberCorp, Personal and Telecom presented their unified portfolio of products and services for companies. The portfolio for SMEs includes solutions for Connectivity, Communications, IoT, Cloud and Video & Media, while for Large Clients Datacenter and Security services are added to the aforementioned offer.
Internet Services
Internet services revenues totaled P$22,448 million during 9M18, +32.6% vs. 9M17. As of September 30, 2018, total broadband accesses increased to more than 4.1 million (+1.8% vs. 9M17). Additionally, broadband ARPU amounted to P$604.8 per month in 9M18 (+34.9% vs. 9M17). Moreover, the average monthly churn rate for the period was 1.9%. On the other hand, clients with service of 20Mb or higher currently represent 34% of the total customer base as of 9M18.
Consolidated Operating Costs
Consolidated Operating Costs totaled P$79,550 million in 9M18, an increase of P$16,484 million, or +26.1% vs. 9M17 (including D&A and impairment of PP&E). Continuing with the trend observed during the lasts quarters, this overall increase is below inflation levels and moreover Revenue growth, which allowed a significant increase in the Company's Operating Income before D&A and to improve its margin. This was a result of a higher level of efficiency achieved in the cost structure. Higher costs are mainly associated to the effect of higher revenues, a highly competitive environment in the mobile, cable TV and broadband businesses, the impact of higher direct and indirect labor costs generated by the operations in Argentina, the increase in costs of services contracted with suppliers, higher programming and content costs due the incorporation of broadcasting signals of football matches.
The cost breakdown is as follows:
- Employee benefit expenses and severance payments totaled P$17,596 million (+22.8% vs. 9M17), mainly impacted by increases in salaries to unionized and non‐unionized employees together with the associated social security contributions. Finally, total employees at the end of 9M18 amounted to 25,775 (vs. 26,975 in 9M17).
- Interconnection and transmission costs (including TLRD, Roaming, international settlement charges and lease of circuits) amounted to P$3,203 million, +16.8% vs. 9M17. This increase is mostly explained by higher TLRD costs.
- Fees for services, maintenance, materials and supplies amounted to P$9,245 million (+12.3% vs. 9M17), mainly due to increases in fees for services, mostly related to call centers and higher professional generated by a higher level of activity fees driven mainly by new Company projects and by services linked to operational management in general. There were also higher technical maintenance costs and higher hardware and software maintenance costs due to price increases, the U$S FX fluctuations and the higher level of activity.
- Taxes and fees with regulatory authorities reached P$8,009 million (+30.2% vs. 9M17). The increase was mainly due to the growth in revenues.
- Commissions and advertising (Commissions paid to agents, prepaid card distribution commissions and others) totaled P$6,333 million (+28.8% vs. 9M17). The increase is mostly due to higher fees paid in favor of commercial channels and collection fees.
- Cost of handsets sold totaled P$5,370 million (+9.1% vs. 9M17); this increase was mainly associated with an increase in the average unit cost, partially offset by a decrease in the quantities sold.
- Programming and content costs totaled P$7,144 million (+56.5% vs. 9M17), largely due to the incorporation of the cost of signals to broadcast live football matches of the first division of the Argentine Football Association, price increases and fluctuation of the P$/U$S exchange rate.
- Depreciation, amortization and impairment of PP&E amounted P$15,252 million (+27.6% vs. 9M17). Depreciations of PP&E totaled P$12,184 million, amortizations of intangible assets reached P$2,799 million, while the losses of PP&E reached P$191 million and the impairment of PP&E P$78 million. The higher charge is mostly due to a greater amortization and depreciation of PP&E and intangibles, corresponding to higher values allocated to the aforementioned assets resulting from the acquisition method under IFRS 3.
- Other Costs totaled P$7,398 million (+40.7% vs. 9M17), of which bad debt expenses reached P$1,990 million (+52.6% vs. 9M17), and whose increase is mainly due to the impact generated by the application as of the FY2018 of IFRS 9, as well as other operating costs that totaled P$5,408 million (36.7% vs. 9M17).
Net Financial Results
The Net Financial Results (including Financial Costs on Debt and Other Financial Results, net) showed a loss of P$47,218 million, compared with a loss of P$2,281 million in 9M17. The result was mainly due to FX losses of P$45,864 million (compared with a loss of P$1,387 million in 9M17), mostly due to the strong depreciation of the peso during the 9M18, followed by net interest losses of P$1,908 million (representing a greater loss of P$1,858 million vs. 9M17), which are partially offset by gains on investments of P$1,491million (that generated greater earnings of P$1,517 million vs. 9M17).
Consolidated Net Financial Debt
As of September 30, 2018, net financial debt position (cash, cash equivalents plus financial investments and financial NDF minus loans) totaled P$67,901 million,
increasing when compared to the consolidated net financial debt position as of December 31, 2017 (calculated as the sum of consolidated net financial debt positions of Telecom Argentina and Cablevisión, which was P$9,580 million).
Capital Expenditures
During 9M18, the Company invested P$24,046 million, increasing approximately 49.5% from the sum of the parts of Telecom Argentina's and Cablevisión's CAPEX as of 9M17, focusing on projects that maximize the network capacity and on the development of products and services that contribute to address the customer's needs that today demand for connectivity and data availability. Moreover, transmision and transport networks has been extended to unify the differents access technologies, reconverting the copper fixed networks into fiber or coaxial-fiber hybrid networks, in order to face the the increaseing services demand from mobile and fixed clients. Likewise, significant investments have been made in the charging, billing and relationship systems with customers. The Company aims to improve the capacity and coverage of its networks, which is key factor for the transformation towards convergent services with international quality standards, but also to leverage the content business, with Flow as an integral content platform and entertainment center, whose competitive advantages and differential features place it above other platforms. In relative terms, CAPEX reached 24.2% of consolidated revenues.
As part of its infrastructure deployment strategy, during the last months Telecom has made several agreements in the interior of the country and in the Buenos Aires metropolitan area, in order to expand its access network and improve the speed and capacity of mobile connections, thus boosting the navigation experience for the clients. Among the most relevant agreements are those reached with the city of Santa Fe (Santa Fe province), the province of Jujuy, and the municipalities of Ezeiza and Lomas de Zamora (Buenos Aires metropolitan area).
STOCK AND MARKET INFORMATION
Cablevisión Holding trades its stock on the Buenos Aires Stock Exchange (BCBA) and on the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.
CVH (BCBA) Price per Share (ARS)
293.8
CVH or CVHSY Price per GDS (USD)
8.3
Total Shares
180,642,580
Total GDSs
180,642,580
Market Value (USD MM)
1,496
Closing Price
November 8, 2018
CONFERENCE CALL AND WEBCAST INFORMATION
Cablevisión Holding S.A. will host a conference call and webcast presentation to discuss the Third Quarter 2018 Results, on Tuesday, November 13, 2018.
Time: 11:00am Buenos Aires Time/9:00am New York Time/2:00pm London
To access the conference call, please dial:
Argentina Participants: 0-800-666-0250U.S. Participants: 1-877-830-2576
All other countries: 1-785-424-1726
Passcode: CVH
The 3Q18 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/cvh20181113/no-audio
Link for conference call via webcast only (live stream of audio and slide presentation):
https://webcasts.eqs.com/cvh20181113
The webcast presentation will be archived at: https://www.cablevisionholding.com/Investors/Presentations
ABOUT THE COMPANY
CVH was funded as corporate spin-off from Grupo Clarín S.A. and it is the first Argentine holding company that engages in the development of infrastructure and the provision of convergent telecommunications services, focusing on Argentina and the region. CVH's subsidiaries specialize in the provision of cable TV, broadband and mobile communications services; and their brands are already well known in the telecommunications and content distribution industries.
Investor Relations Contacts:
In Buenos Aires: In New York:
Cablevisión Holding S.A i-advize Corporate Communications,
Agustín Medina Manson, Head of Investor Relations Camilla Ferreira / Kenia Vargas
Email: cferreira@i-advize.com
Email: ir@cablevisionholding.com kvargas@i-advize.com
Tel: (+54 11) 4309 - 3417 Tel: +1 212 406 3695 / 3696
https://www.cablevisionholding.com
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 CVH. 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. CVH 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 CVH's projections or forward-looking statements, including, among others, general economic conditions, CVH's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to CVH and its operations.
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE AND THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2018 AND FOR THE FIVE AND THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2017
(in millions of Argentine pesos)
September 30, 2018
Five-month period ended September 30, 2017
July 1, 2018 through September 30, 2018
July 1, 2017 through September 30, 2017
Revenues
99,494
17,225
35,315
10,544
Employee benefit expenses and severance payments
(17,610)
(3,037)
(6,547)
(1,937)
Interconnection and Transmission Costs
(3,203)
(325)
(1,229)
(198)
Fees for Services, Maintenance, Materials and Supplies
(9,331)
(2,011)
(3,041)
(1,240)
Taxes and Fees with the Regulatory Authority
(8,028)
(1,259)
(2,761)
(769)
Commissions and Advertising
(6,333)
(880)
(2,515)
(588)
Cost of Equipment and Handsets
(5,370)
(182)
(1,774)
(98)
Programming and Content Costs
(7,144)
(2,254)
(2,615)
(1,388)
Bad Debt Expenses
(1,990)
(211)
(717)
(132)
Other Operating Income and Expense
(5,473)
(765)
(2,314)
(469)
Operating Income before Depreciation and Amortization
35,012
6,301
11,802
3,725
Depreciation, Amortization and Impairment of PP&E
(15,252)
(1,597)
(5,610)
(1,006)
Operating Income
19,760
4,704
6,192
2,719
Equity in Earnings from Associates
129
63
38
38
Financial Expenses on Debts
(53,957)
(1,152)
(29,440)
(372)
Other Financial Results, net
1,645
(460)
690
(445)
(Loss) / Income before Income Tax Expense
(32,423)
3,155
(22,520)
1,940
Income Tax and Tax on Assets
8,587
(1,114)
6,370
(658)
Net (Loss) / Income
(23,836)
2,041
(16,150)
1,282
Other Comprehensive Income - to be subsequently reclassified to profit or loss
Currency Translation Adjustments (no effect on Income Tax)
4,377
204
2,338
143
Effect of IFD classified as hedges
303
-
115
-
Tax Effect of IFD classified as hedges
(86)
-
(33)
-
Other Comprehensive Income, net of Taxes
4,594
204
2,420
143
Total Comprehensive Income
(19,242)
2,245
(13,730)
1,425
Net Income attributable to:
Shareholders of the Controlling Company
(12,560)
1,148
(7,827)
717
Non-Controlling Interest
(11,276)
893
(8,323)
565
Total Comprehensive Income Attributable to:
Shareholders of the Controlling Company
(11,212)
1,247
(7,817)
783
Non-Controlling Interest
(8,030)
998
(5,913)
642
Basic and Diluted Earnings per Share attributable to the Shareholders of the Controlling Company (in pesos)
(69.53)
6.35
(43.33)
3.97
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2018 AND DECEMBER 31, 2017
(in millions of Argentine pesos)
ASSETS
September 30, 2018
December 31, 2017
CURRENT ASSETS
Cash and Cash Equivalents
10,937
4,879
Investments
6,614
110
Trade Receivables
12,953
1,753
Other Receivables
5,910
956
Inventories
2,831
83
Other Assets
314
378
Total Current Assets
39,559
8,159
NON-CURRENT ASSETS
Trade Receivables
63
-
Other Receivables
1,423
237
Deferred Income Tax Assets
81
51
Investments
5,530
11,201
Goodwill
63,547
3,584
Property, Plant and Equipment ("PP&E")
97,501
22,068
Intangible Assets
42,165
2,353
Total Non-Current Assets
210,310
39,494
Total Assets
249,869
47,653
LIABILITIES
CURRENT LIABILITIES
Accounts Payable
24,168
3,886
Financial Debt
61,655
3,712
Salaries and Social Security Payables
4,572
1,751
Taxes Payable
1,867
1,887
Dividends Payable
-
1,633
Other Liabilities
1,642
102
Provisions
491
-
Total Current Liabilities
94,395
12,971
NON-CURRENT LIABILITIES
Accounts Payable
1,279
-
Financial Debt
38,146
20,936
Salaries and Social Security Payables
245
-
Deferred Income Tax Liabilities
8,582
266
Taxes Payable
29
3
Other Liabilities
915
134
Provisions
3,380
1,092
Total Non-Current Liabilities
52,576
22,431
Total Liabilities
146,971
35,402
EQUITY (as per the corresponding statement)
Attributable to Shareholders of the Parent Company
35,073
7,591
Attributable to Non-Controlling Interests
67,825
4,660
TOTAL EQUITY
102,898
12,251
TOTAL LIABILITIES AND EQUITY
249,869
47,653
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018 AND
FOR THE FIVE-MONTH PERIOD BEGINNING MAY 1, 2017 AND ENDED SEPTEMBER 30, 2017
(in millions of Argentine pesos)
Equity attributable to Shareholders of the Parent Company
Equity Attributable to Non-Controlling Interests
Shareholders' Contribution
Other Items
Retained Earnings
Total Equity of Controlling Interests
Total Equity
Capital Stock (1)
Inflation Adjustment on Capital Stock
Additional Paid-in Capital
Subtotal
Other Comprehensive Income
Other Reserves
Legal Reserve
Voluntary Reserves
Retained Earnings
Balances as of May 1, 2017
181
195
888
1,264
749
(3)
75
3,692
834
6,611
4,625
11,236
Exchange of Shares - Payment of fractions in cash (see Note 10 to the parent company only financial statements.)
-
-
-
-
-
(1)
-
-
-
(1)
-
(1)
Net Income for the Period
-
-
-
-
-
-
-
-
1,148
1,148
893
2,041
Other Comprehensive Income
-
-
-
-
99
-
-
-
-
99
105
204
Balances as of September 30, 2017
181
195
888
1,264
848
(4)
75
3,692
1,982
7,857
5,623
13,480
Balances as of December 31, 2017
181
195
888
1,264
948
(4)
75
3,692
1,616
7,591
4,660
12,251
Effect of Adopting New Accounting Policies (Note 3.u))
-
-
-
-
-
-
-
-
(67)
(67)
(50)
(117)
Effect of the Merger (Note 4.a))
-
-
-
-
-
38,866
-
-
-
38,866
83,665
122,531
Set-up of reserves
-
-
-
-
-
-
-
1,616
(1,616)
-
-
-
Dividends and Other Movements of Non-Controlling Interest (Note 28)
-
-
-
-
-
-
-
-
-
-
(12,253)
(12,253)
Increase of the equity interest in CV Berazategui
-
-
-
-
-
(69)
-
-
-
(69)
(112)
(181)
Changes in Other Reserves
-
-
-
-
-
(36)
-
-
-
(36)
(55)
(91)
Loss for the period
-
-
-
-
-
-
-
-
(12,560)
(12,560)
(11,276)
(23,836)
Other Comprehensive Income
-
-
-
-
1,348
-
-
-
-
1,348
3,246
4,594
Balances as of September 30, 2018
181
195
888
1,264
2,296
38,757
75
(2) 5,308
(12,627)
35,073
67,825
102,898
(1) Includes 1,578 treasury shares (Note 20).
(2) Broken down as follows: (i) Voluntary reserve for future dividends of $ 1,813; (ii) Voluntary reserve for illiquidity of results of $ 437, (iii) Voluntary reserve to ensure the liquidity of the Company and its subsidiaries of $ 660. (iv) Voluntary Reserve to provide financial aid to subsidiaries and in connection with the Audiovisual Communication Services Law of $782 and (v) Voluntary Reserve for financial obligations of $ 1,616.
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018 AND
FOR THE FIVE-MONTH PERIOD BEGINNING MAY 1, 2017 AND ENDED SEPTEMBER 30, 2017
(in millions of Argentine pesos)
September 30, 2018
Five-month period ended September 30, 2017
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net (Loss) / Income
(23,836)
2,041
Adjustments to reconcile net income to net cash flows provided by operating activities
Allowances Deducted from Assets and Provisions for Lawsuits and Other Contingencies
2,155
367
Depreciation of PP&E
12,184
1,587
Amortization of Intangible Assets
2,799
11
Equity in Earnings from Associates
(129)
(63)
Disposals and Impairment of PP&E
269
-
Net Book Value of PP&E
21
323
Financial Results and Other
43,827
1,494
Accrued Income Tax and Tax on Assets
(8,587)
1,114
Income Tax Paid
(4,403)
(1,915)
(Increase) Decrease in Assets, Net
(7,933)
675
Net Increase in Liabilities
10,990
681
Net Cash Flows provided by Operating Activities
27,357
6,315
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
PP&E Acquisitions
(21,815)
(5,207)
Intangible Assets Acquisition
(1,218)
-
Acquisition of an equity interest in CV Berazategui
(181)
-
Collection of Dividends
36
30
Cash Incorporated under the Merger
2,831
-
Payment for call option
-
(53)
Proceeds from the Sale of PP&E
31
2
Investments not considered as cash and cash equivalents
2,058
713
Net Cash Flows used in Investing Activities
(18,258)
(4,515)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
Proceeds from Financial Debt
22,188
13,280
Payment of Financial Debt
(12,998)
(426)
Payment of Interest and Related Expenses
(2,515)
(400)
Payment of Fractions of Shares
-
(1)
Reversal of Reserve Account
240
(318)
Payment of Cash Dividends to Non-Controlling Interests
(13,449)
(800)
Net Cash Flows (used in) provided by Financing Activities
(6,534)
11,335
NET INCREASE IN CASH FLOWS
2,565
13,135
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR:
4,879
2,003
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
3,493
(201)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
10,937
14,937
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDQRTBLBRTMBIMMIP
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