Grupo Clarín announces its Results for the First Half (1H17) and Second Quarter of 2017 (2Q17)

BUENOS AIRES, Argentina, Aug. 11, 2017 /PRNewswire/ -- Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its first half and second quarter results for 2017. Figures are stated in Argentine Pesos, unless otherwise indicated.

On September 28, 2016, Grupo Clarín's Shareholders approved a split-up of Grupo Clarín's equity interest in Cablevisión S.A, the subsidiary that operates Grupo Clarín's cable television, internet and telephony segment, into a new Argentine corporation under the name of Cablevisión Holding S.A. ("CVH"). After the split-up is complete, CVH will own directly and indirectly, 60% equity interest in Cablevision.

The Effective Date of the Spin-off was May 1, 2017. As from this date, Cablevisión Holding S.A. began activities on its own, and the accounting effects of the Spin-off became effective. For further information about CVH, please see the appendix of this report.

Highlights (1H17 vs. 1H16):

• Net Sales totaled Ps. 6,281.8 million, an increase of 30.0% from 1H16, mainly due to higher advertising and programming sales in the Broadcasting and Programming segment and, to a lesser extent, driven by higher circulation and advertising revenues in the Printing and Publishing segment.
• Adjusted EBITDA (1) reached Ps. 301.4 million, a decrease of 21.1% from 1H16, mainly driven by the implementation of a strategic cost reduction plan, focused on rightsizing the company in order to reach a more flexible structure. Grupo Clarín's Adjusted EBITDA Margin ⁽²⁾ for 2016 was 4.8%, compared to 7.9% in 1H16.
• Income for the period totaled Ps. 2,443.4 million, an increase of 18.4% from 1H16, and the Income for the period attributable to Equity Shareholders amount to Ps 1,494.2 million.

FINANCIAL HIGHLIGHTS

(1)  We define Adjusted EBITDA as net sales 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 on the basis of 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 Net Sales

SOURCE Grupo Clarin