REG - Cablevision Holding - First Half and Second Quarter 2020 Results

Telecom Argentina SAAnnouncement

20/08/2020 08:55

RNS Number : 6939W
  
Cablevision Holding S.A.
  
20 August 2020
  
 

Cablevisión Holding Announces First Half and Second Quarter 2020 Results (1H20 and 2Q20)
 
Buenos Aires, Argentina, August 19, 2020 - Cablevisión Holding S.A., ("Cablevision Holding", "CVH" or "the Company" - BCBA: CVH; LSE: CVH; Level 1: CVHSY), controlling shareholder of Telecom Argentina S.A. (NYSE: TEO, BCBA: TECO2), announced today its first half and second quarter 2020 Results. Figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in constant Argentine Pesos ("Ps." or "P$") as of June 30, 2020, unless otherwise indicated. 
The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the annual financial statements.
 
CVH Highlights (1H20 vs. 1H19):
 
§ Total Revenues reached Ps. 131,158 million, a decrease of 3.0% in real terms as of June 30, 2020, compared to 1H19, mainly driven by lower revenues from equipment sales, internet, and cable services revenues, which was partially offset by higher mobile services revenues.
§ Total Costs (Excluding Depreciation and Amortization) reached Ps. 83,444 million, a decrease of 7.3% in constant currency, mainly driven by lower costs of equipment and handset, employee benefits expenses and severance payments, programming and content costs, taxes and fees with the Regulatory Authority and commissions and advertising costs, partially offset by higher bad debt expenses.
§  EBITDA reached Ps. 47,714 million, an increase of 5.5% in real terms compared to 1H19, mainly driven by lower operating costs. EBITDA Margin was 36.4% in 1H20, compared to 33.4% in 1H19.
§ Consolidated Net Income amounted to Ps. 2,161 million. Consolidated Net Income attributable to the Controlling Company amounted to Ps. 879 million.
                                                                                                                                                                                                                                        
FINANCIAL HIGHLIGHTS 
 




(millions of Ps.in constant Currency as of June 30, 2020)


1H20


1H19


% Ch.


2Q20


1Q20


2Q19


QoQ


YoY




Total Revenues


131,158


135,272


(3.0%)


65,023


66,135


66,004


(1.7%)


(1.5%)




EBITDA (1) 


47,714


45,235


5.5%


24,580


23,134


22,700


6.3%


8.3%




EBITDA Margin (2)


36.4%


33.4%


8.8%


37.8%


36.9%


34.4%


0.9%


3.4%




Income for the period


2,161


9,041


(76.1%)


(763)


2,923


7,951


(126.1%)


(109.6%)




Attributable to:


 


 


 


 


 


 


 


 




Equity Shareholders


879


3,102


(71.7%)


(305)


1,185


3,374


(125.7%)


(109.0%)




Non-Controlling Interests


1,282


5,939


(78.4%)


(457)


1,738


4,577


(126.3%)


(110.0%)




 
 
(1)   EBITDA is defined as Total 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 media companies based on 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 Total Revenues.


OPERATING RESULTS
 
Total Revenues reached Ps. 131,158 million, a decrease of 3.0% compared to Ps. 135,272 million in 1H19, mainly driven by lower revenues from equipment sales, internet, and cable services revenues, which was partially offset by higher mobile services revenues. 
 
Following is a breakdown of Total Revenues:
 




(millions of Ps.in constant Currency as of June 30, 2020)


1H20


1H19


YoY


1H20

% of Total


1H19

% of Toal




Mobile Services


49,433


45,716


8.1%


37.7%


33.8%




Internet Services


28,392


30,623


(7.3%)


21.6%


22.6%




Cable TV Services


26,357


28,575


(7.8%)


20.1%


21.1%




Fixed Telephony and Data Services


20,093


21,065


(4.6%)


15.3%


15.6%




Other revenues from services


383


478


(19.9%


0.3%


0.4%




Revenues From Services


124,658


126,457


(1.4)


95.0%


93.5%




Revenues From Equipment Sales


6,500


8,815


(26.3%)


5.0%


6.5%




Total Revenues


131,158


135,272


(3.0%)


100.0%


100.0%




 
Mobile Services Revenues increased by 8.1% in real terms. This was mainly the results of an increase in the subscribers' base compared to 1H19.
 
In Argentina, Personal mobile subscriber amounted to 18.8 million and around 41% of them are postpaid. Mobile internet revenues reached 77% of service revenues of Personal in Argentina (vs. 78% in 1H19). Thanks to the value proposition of Personal, our subsidiary had a positive subscribers' evolution compared to 1H19, increasing in more than 100 thousand clients. Mobile ARPU increased 6.9% during the 1H20 compared to 1H19 (Ps. 375.5 in 1H20 vs Ps. 351.4 in 1H19). Mobile churn was 2.2% as of June 30, 2020, compared to 2.3% in 1H19.
 
It is important to highlight that as a result of the mandatory lockdown that the country is going through,  our subsidiary continues to reinforce its networks, systems infrastructure and service platforms to provide services that are essential for the society as they connect people, homes, companies and governments. In this sense, digital and telephone contact channels have been strengthened so that the greater volume of service and commercial requests could be carried out directly from the clients' homes, without needing to visit the company's commercial offices. 
 
As of June 30, 2020, Núcleo customer base reached around 2.2 million subscribers, of which 17% are postpaid. Revenues from Núcleo services were Ps 6,317 million in 1H20, an increase of 7.6% compared to 1H19. Mobile internet revenues represented 50.0% of 1H20 service revenues (vs. 49.0% in 1H19).
 
Internet Services Revenues dropped 7.3% to Ps. 28,392 in 1H20 mainly due to the restatement effect as of June 30, 2020. Of the 4.1 million broadband customers reached in 1H20, around 67% of them subscribed to services with speeds of 20Mb or higher. Monthly churn dropped to 1.3% in 1H20 from 1.4% in 1H19.
 
It is worth to mention that a new solution under the name of INFINITE was launched in June of 2020. It has an automatic switch between fixed and mobile networks that guarantees a secure connection and allows to enhance the Internet connection ´s performance.
 
Cable TV Services Revenues amounted to Ps. 26,357 million in 1H20, a decrease of 7.8% compared to 1H19, mainly due to the restatement effect as of June 30, 2020, and the fact that those revenues derived from  activities suspended due to the mandatory lockdown have not been generated during the period.  Cable TV ARPU reached Ps. 1,255.3 in 1H20, a decrease of 8.2% compared to 1H19. Additionally, Cable TV churn decreased to 1.0% in 1H20 from 1.3% in 1H19.
 
Fixed Telephony and Data Services Revenues reached Ps. 20,093 million in 1H20, a decrease of 4.6% compared to 1H19, mainly due the restatement effect as of June 30, 2020. Additionally, ARBU in fixed telephony reached Ps. 519.4 in 1H20, increasing 6.5% compared to 1H19. In the current health emergency context, different initiatives were developed by Telecom during the second quarter of 2020, in order to assist the corporate segment, providing solutions based on the needs of the companies so they can continue with their activities.
 
Consolidated Operating Costs and Expenses (Excluding D&A and impairment of PP&E and intangible assets) totaled Ps. 83,444 million in 1H20, a decrease of Ps. 6,593 million, or 7.3% compared to 1H19. These lower operating costs and expenses were mainly due to lower costs of equipment and handset, employee benefits and severance payments, programming and content costs, taxes and fees with the Regulatory Authority and commissions and advertising costs. More than 99.8% of the costs and expenses are related to Telecom Argentina operations. 
 
EBITDA reached Ps. 47,714 million, an increase of 5.5% from Ps. 45,235 million reported for 1H19, driven by lower operating costs.
 
Depreciation, amortization and impairment of PP&E, intangible assets and rights-of-use amounted Ps. 33,355 million in 1H20, an increase of 4.0% compared to 1H19. The increase was due to the impact of the amortization of the assets activated after June 30, 2019.
 
Equity in earnings from unconsolidated affiliates totaled Ps. 216 million in 1H20, compared to Ps. 236 million in 1H19.
 
Financial Results net totaled Ps. (9122) million compared to Ps. 6,528 million in 1H19, mainly as a result of negative FX results (including results of NDF) measured in real terms in 1H20 for Ps. (5,793) million (vs. positive FX results measured in real terms registered in 1H19 for Ps. 8,737 million), higher interests on financial debts and lower inflation adjustment results.
 
Income tax as of June 2020 reached Ps. (3,292) million, from Ps. (10,880) million in June 2019. 
 
Net Income for the period totaled Ps. 2,161 million, from Ps. 9,041 million reported for 1H19. This was mainly a consequence of negative financial results in 1H20, which was partially offset by a lower income tax. The Equity Shareholders Income for the period amounted to Ps. 879 million.
 
 




(millions of Ps.in constant Currency as of June 30, 2020)


1H20


1H19


YoY


2Q20


1Q20


2Q19


QoQ


YoY

 


 



Consolidated Revenues


131,158


135,272


 (3.0%)


65,023


66,135


66,004


(1.7%)


(1%)


 

 



  Employee benefit expenses and severance payments


(24,433)


(25,831)


 
    (5.4%)


 
(12,073)


 
(12,360)


 
(12,095)


 
(2.3%)


 
(0%)


 

 



  Interconnection and Transmission Costs


 
    (4,601)


  (4,264)


 
7.9%


 
(2,477)


 
(2,124)


 
(1,973)


 
16.6%


 
26%


 

 



  Fees for Services, Maintenance, Materials and Supplies


  (13,807)


(14,049)


(1.7%)


(6,516)


(7,291)


(6,948)


(10.6%)


(6%)


 

 



  Taxes and Fees with the Regulatory Authority


    (9,923)


  (10,737)


 
(7.6%)


 
(4,888)


 
(5,035)


 
(5,292)


 
(2.9%)


 
(8%)


 

 



  Commissions and Advertising


  (7,011)


(7,965)


(12.0%)


(3,249)


(3,762)


(4,028)


(13.6%)


(19%)


 

 



  Cost of Equipment and Handsets


(4,399)


(6,621)


(33.6%)


(2,028)


(2,371)


(3,211)


(14.5%)


(37%)


 

 



  Programming and Content Costs


(8,991)


(10,196)


(11.8%)


(4,011)


(4,980)


(4,862)


(19.5%)


(18%)


 

 



  Bad Debt Expenses


(5,359)


(3,800)


41.0%


(2,990)


(2,369)


(1,535)


26.2%


95%


 

 



  Other Operating Income and Expense


(4,920)


(6,574)


(25.2%)


(2,211)


(2,709)


(3,360)


(18.4%)


(34%)


 

 



EBITDA1


47,714


45,235


5.5%


24,580


23,134


22,700


6.3%


8%


 

 



EBITDA Margin2 


36.4%


33.4%


8.8%


37.8%


36.9%


34.4%


0.9%


3%


 

 



Net Income


2,161


9,041


(76.1%)


(763)


2,923


7,951


(126.1%)


(110%)


 

 



Attributable to:


 


 


 


 


 


 


 


 


 

 



Controlling Company


879


3,102


(72%)


(305)


1,185


3,374


(125.7%)


(109.0%)


 

 



Non-controlling interest


1,282


5,939


(78.4%)


(457)


1,738


4,577


(126.3%)


(110.0%)


 

 



 
 
OPERATING STATISTICS BY BUSINESS SEGMENT
 




 


1H20


1H19


YoY




Mobile Services


 


 


 




Total Subscribers


21.049
 


20,943


0.5%




Personal (Argentina)


18.804
 


18,408


2.2%




Nextel (Argentina)


0


182


N/A




Nucleo (Paraguay)


2,245


2,352


(4.5%)




 


 


 


 




Postpaid


 


 


 




Personal (Argentina)


41%


40%


2.5%




Nextel (Argentina)


N/A


76%


N/A




Nucleo (Paraguay)


17%


17%


-




 


 


 


 




ARPU Personal(2)


375.5


351.4


6.9%




Churn


2.2%


2.3%


(0.1%)




 


 


 


 




Broadband Services


 


 


 




Subscribers


4,095


4,132


(0.9%)




Speeds >20Mb (% of subs)


67%


49%


36.7%




ARPU(2)


1,160.9


1,235.4


(6.0%)




Churn(4)


1.3%


1.4%


(0.1%)




Cable TV Services


 


 


 




Cable TV Subs


3,500


3,417


2.4%




Argentina Subs


3,284


3,276


0.2%




Uruguay Subs


141


141


-




ARPU(2)


1,255.3


1,367.2


(8.2%)




Churn(4)


1.0%


1.3%


(0.3%)




Fixed Line Services


 


 


 




Subscribers


2,998


3,371


(11.1%)




ARBU(3)


519.4


487.9


6.5%




 
(1) Figures in thousands
(2) ARPU = Average Revenue per user (restated by inflation as of June 30, 2020)
(3) ARBU = Average Billing per user (restated by inflation as of June 30, 2020)
(4) Monthly Average Churn
 
 
CAPITAL EXPENDITURE (CAPEX)
 
During 1H20, our subsidiary, Telecom Argentina, invested Ps. 22,766 million, a decrease of approximately 33.9% compared to 1H19. The investments were focused on projects related to: the Cable TV and Internet services expansion to improve the transmission and access speed offered to customers, the deployment of 4G coverage and capacity to support the growth of the Mobile Internet service, and the extension of the transmission networks in order to unify the different access technologies, reconverting the copper fixed networks into fiber or hybrid fiber- coaxial networks.. It is important to mention that thanks to the investments that our subsidiary has done in recent years, the equipment and systems allow its networks to perform efficiently, supporting the increase of up to 50% in home internet data traffic, 70% in mobile voice services and 30% in mobile data, plus a 75% growth in upstream. In relative terms, investments reached 17.4% of consolidated revenues in 1H20.
 
 
DEBT AND LIQUIDITY
 




(In millions of Ps.)


June 2020


December 2019


% Change






Short Term and Long-Term Debt  


 


 


 




Current Financial Debt


78,957


40,076


97.0%




Bank overdraft


8,100


11,030


(26.6%)




Securities-guaranteed loans


0


350


(100.0%)




Financial loans


21,892


15,334


42.8%




Acquisition of equipment


1,976


1,704


16.0%




Negotiable obligations


33,489


0


NA




NDF


792


410


93.2%




Acrrued interest


12,708


11,248


13.0%




Non-Current Financial Debt


104,243


132,581


(21.4%)




Negotiable obligations


20,389


46,034


(55.7%)




Financial loans


64,151


64,392


(0.4%)




NDF


33


16


106.3%




Acquisition of equipment


4,058


3,056


32.8%




Accrued interest


15,612


19,083


(18.2%)




Total Financial Debt (A)


183,200


172,657


6.1%




 


 


 


 




Cash and Cash Equivalents (B)


52,973


33,659


57.4%




Net Debt (A) - (B)


130,227


138,998


(6.3%)




Net Debt/Adjusted Ebitda (1)


1.5


1.6


(8.9%)




% USD Debt


86,8%


92.3%


(5.5%)




% PYG Debt


2,9%


2.8%


0.1%




% ARS Debt


10,3%


4.9%


5.4%




 
Total Financial Debt(1) increased from Ps. 172,657 million to Ps. 183,200 million and and Net Debt decreased from Ps 138,998 to Ps. 130,277. 
 
Debt coverage ratio (1) as of June 30, 2020 was 1.5x in the case of Net Debt and of 2.0x in terms of Total Financial Debt. 
 
(1)      Debt Coverage Ratio is defined as Total Financial Debt divided by Last Twelve Months EBITDA. Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.
 
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)
 


429,5 




CVH or CVHSY Price per GDS (USD)


3.0 




Total Shares


180,642,580




Total GDSs


180,642,580




Closing Price


August 19, 2020
 




 


 




CONFERENCE CALL AND WEBCAST INFORMATION
 
CABLEVISIÓN HOLDING S.A
(BCBA: CVH / LSE: CVH)
cordially invites you to participate in its conference call and webcast presentation
to discuss Second Quarter 2020 Results
 
Date: Wednesday, August 26, 2020
Time: 2:00pm Buenos Aires Time/1:00pm New York Time/6:00pm London
 
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: CVH
 
The 2Q20 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/cvhsy200819ckfv4r2Y.html
 
 
NOTE: Cablevisión Holding S.A. will release its Second Quarter 2020 Earnings Report on Wednesday, August 19, 2020 after the markets close.
 
A replay of the conference call will be available four hours after its conclusion and will remain available for 7 days.  To access the replay, please dial from the within the U.S. 1-844-488-7474, or from anywhere outside the U.S. +1-862-902-0129. The passcode is: 99475127
The webcast presentation will be archived at:  https://www.cablevisionholding.com/Investors/Presentations
 
 
 
INVESTOR RELATIONS CONTACTS
 




In Buenos Aires:


In New York:




Cablevisión Holding S.A         


i-advize Corporate Communications, Inc




Agustín Medina Manson, Head of Investor Relations                                            


Camilla Ferreira / Kenia Vargas




Valentina Lopez, Sr. Analyst


Email:      cferreira@i-advize.com




Email: ir@cvh.com.ar


kvargas@i-advize.com




Tel: (+54 11) 4309 - 3417
www.cvh.com.ar


Tel: +1 212 406 3695 / 3696




 


 




 
 
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.

 

 
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 SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019, 
AND THE THREE-MONTH PERIODS BEGINNING ON APRIL 1 AND ENDED ON JUNE 30, 2020 AND 2019
 (in millions of Argentine pesos)
 
 




 


June 30, 2020


 


June 30, 
2019


 


April 1, 2020

through June 30, 2020


 


April 1, 2019

through June 30, 2019




 


 


 


 


 


 


 


 




Revenues


131,158


 


135,272


 


65,023


 


66,004




  Employee benefit expenses and severance payments


(24,433)


 


(25,831)


 


(12,073)


 


(12,095)




  Interconnection and Transmission Costs


(4,601)


 


(4,264)


 


(2,477)


 


(1,973)




  Fees for Services, Maintenance, Materials and Supplies


(13,807)


 


(14,049)


 


(6,516)


 


(6,948)




  Taxes and Fees with the Regulatory Authority


(9,923)


 


(10,737)


 


(4,888)


 


(5,292)




  Commissions and Advertising


(7,011)


 


(7,965)


 


(3,249)


 


(4,028)




  Cost of Equipment and Handsets


(4,399)


 


(6,621)


 


(2,028)


 


(3,211)




  Programming and Content Costs


(8,991)


 


(10,196)


 


(4,011)


 


(4,862)




  Bad Debt Expenses


(5,359)


 


(3,800)


 


(2,990)


 


(1,535)




  Other Operating Income and Expense


(4,920)


 


(6,574)


 


(2,211)


 


(3,360)




Operating Income before Depreciation and Amortization


47,714


 


45,235


 


24,580


 


22,700




  Depreciation, Amortization and Impairment of PP&E, Intangible Assets and Rights of Use.


(33,355)


 


 
(32,078)


 


(16,232)


 


 
(16,456)




Operating Income


14,359


 


13,157


 


8,348


 


6,244




  Equity in Earnings from Associates


216


 


236


 


119


 


75




  Financial Expenses on Debts


(12,755)


 


2,821


 


(9,495)


 


10,133




  Other Financial Results, net


3,633


 


3,707


 


1,773


 


(2,977)




Income (Loss) before Income Tax Expense


5,453


 


19,921


 


745


 


13,475




  Income Tax


(3,292)


 


(10,880)


 


(1,508)


 


(5,524)




Net Income (Loss)


2,161


 


9,041


 


(763)


 


7,951




 


 


 


 


 


 


 


 




Other Comprehensive Income - to be subsequently reclassified to profit or loss


 


 


 


 


 


 


 




  Currency Translation Adjustments (no effect on Income Tax)


(829)


 


(2,745)


 


229


 


(1,982)




  Effect of NDF classified as hedges


(323)


 


(351)


 


2


 


(235)




  Tax Effect of NDF classified as hedges


89


 


68


 


11


 


36




Other Comprehensive Income, net of Taxes


(1,063)


 


(3,028)


 


242


 


(2,181)




 


 


 


 


 


 


 


 




Total Comprehensive (Loss) / Income


1,098


 


6,013


 


(521)


 


5,770




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Net Income (Loss) attributable to:


 


 


 


 


 


 


 




Shareholders of the Controlling Company


879


 


3,102


 


(306)


 


3,374




Non-Controlling Interest


1,282


 


5,939


 


(457)


 


4,577




 


 


 


 


 


 


 


 




Total Comprehensive Income (Loss) Attributable to:


 


 


 


 


 


 


 




Shareholders of the Controlling Company


539


 


2,160


 


(238)


 


2,707




Non-Controlling Interest


559


 


3,853


 


(283)


 


3,063




 


 


 


 


 


 


 


 




Basic and Diluted Earnings per Share attributable to the Shareholders of the Controlling Company (in pesos)


4.87


 


17.17


 


(1.69)


 


18.68




 
 
CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF JUNE 30, 2020, AND DECEMBER 31, 2019
(in millions of Argentine pesos)
 
 
 




 


 


 


 




ASSETS


June 30, 
2020


 


December 31, 2019




CURRENT ASSETS


 


 


 




Cash and Cash Equivalents


49,967


 


30,742




Investments


2,253


 


487




Trade Receivables


17,152


 


19,271




Other Receivables


5,800


 


5,241




Inventories


2,325


 


3,649




Total Current Assets


77,497


 


59,390




NON-CURRENT ASSETS


 


 


 




Trade Receivables


54


 


94




Other Receivables


2,138


 


2,302




Deferred Income Tax Assets


375


 


378




Investments


2,241


 


2,412




Goodwill


199,087


 


199,197




Property, Plant and Equipment ("PP&E")


270,133


 


279,253




Intangible Assets


89,931


 


93,511




Right-of-Use Assets


12,011


 


10,790




Total Non-Current Assets


575,970


 


587,937




Total Assets


653,467


 


647,327




LIABILITIES


 


 


 




CURRENT LIABILITIES


 


 


 




Accounts Payable


28,652


 


36,319




Financial Debt


78,957


 


40,076




Salaries and Social Security Payables


9,978


 


11,303




Taxes Payable


3,928


 


3,763




Dividends Payable


152


 


-




Lease Liabilities


3,177


 


2,998




Other Liabilities


2,211


 


1,978




Provisions


1,321


 


1,353




Total Current Liabilities


128,376


 


97,790




NON-CURRENT LIABILITIES


 


 


 




Accounts Payable


3,661


 


2,675




Financial Debt


104,243


 


132,581




Salaries and Social Security Payables


871


 


978




Deferred Income Tax Liabilities


62,828


 


59,696




Taxes Payable


10


 


16




Lease Liabilities


5,400


 


4,171




Other Liabilities


1,031


 


1,731




Provisions


4,662


 


5,258




Total Non-Current Liabilities


182,706


 


207,106




Total Liabilities


311,082


 


304,896




EQUITY (as per the corresponding statement)


 


 


 




Attributable to Shareholders of the Parent Company


141,748


 


142,050




Attributable to Non-Controlling Interests


200,637


 


200,381




TOTAL EQUITY 


342,385


 


342,431




TOTAL LIABILITIES AND EQUITY 


653,467


 


647,327




 


CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019
 (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 January 1, 2019


181


7,040


16,979


24,200


 


(1,199)


90,056


 


242


16,055


16,978


146,332


 


229,732


 


376,064




Set-up of Reserves


-


-


-


-


 


-


-


 


1,202


100,741


(101,943)


-


 


-


 


-




Dividends and Other Movements of Non-Controlling Interest 


-


-


-


-


 


-


-


 


-


-


-


-


 


(6,301)


 


(6,301)




Net Income (Loss) for the Period


-


-


-


-


 


-


-


 


-


-


3,102


3,102


 


5,939


 


9,041




Other Comprehensive Income


-


-


-


-


 


(942)


-


 


-


-


-


(942)


 


(2,086)


 


(3,028)




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balances as of June 30, 2019


181


7,040


16,979


24,200


 


(2,141)


90,056


 


1,444


116,796


(81,863)


148,492


 


227,284


 


375,776




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balances as of January 1, 2020


181


7,040


16,979


24,200


 


(2,000)


90,010


 


1,444


116,796


(88,400)


142,050


 


200,381


 


342,431




Set-up of Reserves (Note 26)


-


-


-


-


 


-


-


 


-


(3,420)


3,420


-


 


-


 


-




Dividend Distribution (Note 26)


-


-


-


-


 


-


-


 


-


(844)


-


(844)


 


-


 


(844)




Adjustment to the value of the Irrevocable Call and Put Option on the Shares of AVC Continente Audiovisual 


-


-


-


-


 


-


3


 


-


-


-


3


 


5


 


8




Dividends and Other Movements of Non-Controlling Interest 


-


-


-


-


 


-


-


 


-


-


-


-


 


(308)


 


(308)




Net Income (Loss) for the Period


-


-


-


-


 


-


-


 


-


-


879


879


 


1,282


 


2,161




Other Comprehensive Income


-


-


-


-


 


(340)


-


 


-


-


-


(340)


 


(723)


 


(1,063)




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balances as of June 30, 2020


181


7,040


16,979


24,200


 


(2,340)


90,013


 


1,444


(2) 112,532


(84,101)


141,748


 


200,637


 


342,385




 
 
 
(1) Includes 1,578 treasury shares. See Note 20.
(2)  Voluntary Reserve for Illiquid Results.
  


CABLEVISIÓN HOLDING S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019
 (in millions of Argentine pesos)
 
 




 


 


 




 


June 30, 2020


 


June 30, 2019




CASH FLOWS PROVIDED BY OPERATING ACTIVITIES


 


 


 




Net Income


2,161


 


9,041




Adjustments to reconcile Net Income to net Cash flows provided by Operating Activities 


 


 


 




  Allowances Deducted from Assets and Provisions for Lawsuits and Other Contingencies


5,622


 


4,250




  Depreciation of PP&E


26,630


 


25,622




  Amortization of Intangible Assets


4,146


 


4,453




  Amortization of Rights of Use


2,430


 


1,876




  Equity in Earnings from Associates


(216)


 


(236)




  Net Book Value of Fixed Assets and Consumption of Materials


407


 


93




  Financial Results and Other


12,143


 


585




  Income Tax Expense


3,292


 


10,880




  Income Tax Paid


(724)


 


(1,142)




  Net (Increase) Decrease in Assets


(4,247)


 


5,232




  Net Decrease in Liabilities


(4,505)


 


(11,215)




Net Cash Flows provided by Operating Activities 


47,139


 


49,439




CASH FLOWS USED IN INVESTING ACTIVITIES 


 


 


 




  PP&E Acquisitions


(21,810)


 


(29,985)




  Intangible Assets Acquisition


(699)


 


(968)




  Collection of Dividends


15


 


153




  Income from Sale of PP&E and Intangible Assets


-


 


1




  Investments not considered as cash and cash equivalents


(1,022)


 


2,100




Net Cash Flows used in Investing Activities 


(23,516)


 


(28,699)




CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 


 


 


 




  Proceeds from Financial Debt


27,688


 


31,286




  Payment of Financial Debt


(20,309)


 


(21,917)




  Payment of Interest and Related Expenses


(9,449)


 


(5,496)




  Payment of Lease Liabilities


(2,451)


 


(2,264)




  Payment of Dividends


(844)


 


-




  Increase in the Reserve Account


-


 


(13)




  Payment of Cash Dividends to Non-Controlling Interests


(154)


 


(5,707)




Net Cash Flows used in Financing Activities 


(5,519)


 


(4,111)




 


 


 


 




NET INCREASE IN CASH FLOWS


18,104


 


16,629




CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR:


30,742


 


13,028




EFFECTS OF EXCHANGE RATE DIFFERENCES AND GAIN (LOSS) ON NET MONETARY POSITION ON CASH AND CASH EQUIVALENTS


1,121


 


 
(2,226)




CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD


49,967


 


27,431




 


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