3rd Quarter and 9 Month Results

Grupo Clarin S.A.

12 November 2023

 

Grupo Clarín Announces Nine months and Third Quarter 2023 Results

Buenos Aires, Argentina, November 10, 2023 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its Nine months and Third Quarter 2023 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards ^(*) ("IFRS") as of September 30, 2023 and are stated in Argentine Pesos ("Ps"), unless otherwise indicated.

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

Highlights (9M23 vs. 9M22):

§ Total Revenues reached Ps. 109,644.1 million, a decrease of 2.3% in real terms compared to 9M22, mainly due to lower revenues in the Broadcasting and Programming segment, partially offset by higher revenues in Digital and Printed Publications.

§ Adjusted EBITDA⁽¹⁾ reached Ps. 11,844.5 million, a decrease of 29.4% compared to 16,766.0 for 9M22, mainly driven by lower EBITDA in Broadcasting and Programming and Others segments.

§ Grupo Clarín's Adjusted EBITDA Margin⁽²⁾ was 10.8% in 9M23, compared to 14.9% in 9M22.

§ Net Income for the period resulted in  a loss of  Ps. 1,513.2 million, an increase of 35.8% compared to a loss of Ps. 1,114.3 million reported in 9M22. Loss for the period attributable to Equity Shareholders amounted Ps 1,377.2 million in 9M23 from a loss of Ps. 1,181.9 million in 9M22, an increase of 16.5%.

FINANCIAL HIGHLIGHTS

(In millions of Ps.)	9M23	9M22	% Ch.	3Q23	2Q23	3Q22	QoQ	YoY
Total Revenues	109,644.1	112,266.9	(2.3%)	35,061.7	36,596.7	37,313.2	(4.2%)	(6.0%)
Adjusted EBITDA (1)	11,844.5	16,766.0	(29.4%)	2,512.7	3,983.2	6,292.2	(36.9%)	(60.1%)
Adjusted EBITDA Margin (2)	10.8%	14.9%	(27.7%)	7.2%	10.9%	16.9%	(34.2%)	(57.5%)
Profit/(Loss) for the period	(1,513.2)	(1,114.3)	35.8%	(2,810.6)	(458.0)	(1,647.8)	513.6%	70.6%
Attributable to:
Equity Shareholders	(1,377.2)	(1,181.9)	16.5%	(2,720.0)	(426.4)	(1,565.5)	537.9%	73.7%
Non-Controlling Interests	(136.0)	67.5	(301.4%)	(90.6)	(31.6)	(82.3)	186.4%	10.1%

(1)  We define Adjusted EBITDA as Total Revenues minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies based on operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.

(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Total Revenues.

OPERATING RESULTS

Total Revenues reached Ps. 109,644.1 million, a decrease of 2.3% in real terms from Ps. 112,266.9 million in 9M22, in a context of increasing inflation (which reached 138.3% interannually as of September and 115.0% on average). Advertising revenues decreased 5.7% in real terms and represented around 44.2% of the Total Revenues of the Company. Circulation revenues increased 4.5% YoY and represented 31.4% of the Total. Programming revenues decreased 19.0% YoY and represented 13.4% of the Total.

Following is a breakdown of Total Revenues by business segment:

REVENUES

(In millions of Ps.)	9M23	9M22	YoY	3Q23	2Q23	3Q22	QoQ	YoY
Digital and Printed Publications	55,656.9	51,368.9	8.3%	17,178.1	17,116.0	16,207.6	0.4%	6.0%
Broadcasting and Programming	50,165.6	57,336.7	(12.5%)	16,748.9	18,209.5	19,857.7	(8.0%)	(15.7%)
Others	7,745.5	8,088.8	(4.2%)	2,247.9	2,475.2	2,339.4	(9.2%)	(3.9%)
Subtotal	113,568.1	116,794.3	(2.8%)	36,174.9	37,800.7	38,404.7	(4.3%)	(5.8%)
Eliminations	(3,924.0)	(4,527.4)	(13.3%)	(1,113.2)	(1,203.9)	(1,091.5)	(7.5%)	2.0%
Total	109,644.1	112,266.9	(2.3%)	35,061.7	36,596.7	37,313.2	(4.2%)	(6.0%)

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 67,968.0 million, an increase of 2.3% from Ps. 66,422.8 million reported in 9M22, mainly due to higher costs in the Digital and Printed Publications segment related to the increase in schoolbooks sales and severance payments; partially offset by lower content production cost in Broadcasting and Programming and lower salaries in real terms, across all segments.

Selling and Administrative Expenses (Excluding Depreciation and Amortization) totaled Ps. 29,831.6 million, an increase of 2.6% from Ps. 29,078.1 million in 9M22. This increase was mainly due to higher contingencies, advertising and promotion costs.

Adjusted EBITDA amounted to Ps. 11,844.5 million, decrease of 29.4% from Ps. 16,766.0 million reported in 9M22. This decrease was driven by a lower EBITDA in Broadcasting and Programming, mainly as a result of lower advertising and programming revenues in real terms that couldn't be offset by lower costs.

Following is a breakdown of adjusted EBITDA by business segment:

ADJUSTED EBITDA

(In millions of Ps.)	9M23	9M22	YoY	3Q23	2Q23	3Q22	QoQ	YoY
Digital and Printed Publications	4,127.2	4,247.9	(2.8%)	314.0	490.4	1,193.1	(36.0%)	(73.7%)
Broadcasting and Programming	7,550.2	11,822.3	(36.1%)	2,688.3	3,632.6	5,146.5	(26.0%)	(47.8%)
Others	167.1	695.9	(76.0%)	(489.6)	(139.8)	(47.4)	250.1%	932.4%
Total	11,844.5	16,766.0	(29.4%)	2,512.7	3,983.2	6,292.2	(36.9%)	(60.1%)

Financial results net totaled Ps. (10,648.0) million compared to Ps. (11,096.1) million in 9M22. This decrease was mainly due to higher gained interests, lower net negative Foreign Exchange results and lower negative results of operations with notes and bonds, partially offset by higher interest on debts and higher negative inflation adjustment results versus 2022.

Equity in earnings from unconsolidated affiliates in 9M23 totaled Ps. 1,345.6 million, compared to Ps. 566.3  million in 9M22, mainly related to the suspension of operations in BIMO which had had negative results in 2022, partially offset by lower positive results in our subsidiary Papel Prensa higher negative results in TRISA versus a negative result in 2022.

Other Income (expenses), net reached Ps. 450.5 million, compared to Ps. (115.1) million in 9M22.

Income tax as of 9M23 reached Ps. (33.1) million, from Ps. Ps. (2,698.3) million in 9M22, mainly as a result of lower taxable income (after considering taxable Inflation Adjustment).

Income for the period totaled Ps. 1,513.2 million, an increase of 35.8% from a loss of Ps. 1,114.3 million reported in 9M22. The Equity Shareholders Loss for the period amounted Ps. 1,377.2 million, an increase of 16.5% YoY from a loss of  1,181.9 million.

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 3,355.5 million in 9M23, an increase of 2.0% from Ps. 3,288.4 million reported in 9M22. Out of the total CAPEX in 9M23, 74.3% was allocated towards the Broadcasting and Programming segment and 25.3% to the Digital and Printed Publications segment.  

SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2023

(In millions of Ps.)	Digital & Printed Publications	Broadcasting & Programming	Others	Eliminations	Total	%
Advertising	13,779.5	35,253.2	-	(571.9)	48,460.7	44.2%
Circulation	34,437.2	-	-	-	34,437.2	31.4%
Printing	4,977.3	-	-	(3.7)	4,973.7	4.5%
Programming	-	14,703.4	-	-	14,703.4	13.4%
Other Sales	2,462.9	209.0	7,745.5	(3,348.4)	7,069.1	6.4%
Total Sales	55,656.9	50,165.6	7,745.5	(3,924.0)	109,644.1	100.0%

SALES BREAKDOWN BY SOURCE OF REVENUE - SEPTEMBER 2022

(In millions of Ps.)	Digital & Printed Publications	Broadcasting & Programming	Others	Eliminations	Total	%
Advertising	13,213.7	38,733.3	-	(583.0)	51,363.9	45.8%
Circulation	32,947.3	-	-	-	32,947.3	29.3%
Printing	2,598.9	-	-	-	2,598.9	2.3%
Programming	-	18,149.3	-	-	18,149.3	16.2%
Other Sales	2,609.0	454.1	8,088.8	(3,944.4)	7,207.4	6.4%
Total Sales	51,368.9	57,336.7	8,088.8	(4,527.4)	112,266.9	100.0%

RESULTS BY BUSINESS SEGMENT

BROADCASTING AND PROGRAMMING

Revenues

Revenues decreased by 12.5% to Ps. 50,165.6 million in 9M23, compared to Ps. 57,336.7 million in 9M22 mainly as a result of lower programming and advertising revenues, in real terms.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) decreased by 7.8% to Ps. 31,469.0 million in 9M23, compared to Ps. 34,148.3 million in 9M22. This is mainly attributable to lower programming, content production and services and satellites costs, and lower salaries and severance payments in real terms.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) decreased by 1.9% to Ps. 11,146.5 million in 9M23, compared to Ps. 11,366.1 million in 9M22. The decrease was primarily the result of lower fees for services, partially offset by higher contingencies.

Depreciation and Amortization

Depreciation and amortization expenses decreased by 6.2% to Ps. 2,100.9 million in 9M23 compared to Ps.  2,240.6 million reported in 9M22.

DIGITAL AND PRINTED PUBLICATIONS

Revenues

Total revenues increased by 8.3% to Ps. 55,656.9 million in 9M23, mainly as a result of higher circulation and printing revenues from school textbooks and printing services related to biddings for school textbooks, mainly during 1Q23, and higher Optional Products and Paywall revenues, offset by lower traditional circulation revenues. In spite of the high interannual inflation, advertising revenues were higher than the figure registered during 9M22, driven by political advertising and higher digital advertising.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 13.9% to Ps. 31,717.6 million in 9M23, compared to Ps. 27,842.8 million in 9M22. The increase is mainly the result of higher costs related to the increase in schoolbooks sales and printing and other costs of editorial products and the effect of inflation adjustment over consumption of goods acquired during previous months; and severance payments related to the restructuring carried out in 2Q23; partially offset by lower salaries.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 2.8% to Ps. 19,812.1 million in 9M23, compared to the Ps.  19,278.2 million reported in 9M22. This was primarily the result of higher salaries and severance payments, contingencies, and bad debt, partially offset by lower distribution costs.

Depreciation and Amortization

Depreciation and amortization expenses increased by 12.3% to Ps. 1,714.3 million in 9M23 compared to Ps. 1,526.5 million in 9M22.

OTHERS

Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gestión Compartida S.A. to third parties, as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.

In this period, total revenues decreased 4.2% to Ps. 7,745.5 , from Ps. 8,088.8 million reported in 9M22. EBITDA resulted in Ps. 167.1 million.

OPERATING STATISTICS BY BUSINESS SEGMENT

DIGITAL AND PRINTED PUBLICATIONS

	9M23	9M22	YoY	3Q23	2Q23	3Q22	QoQ	YoY
Circulation (1)	54.9	67.3	-18.4%	52.6	55.6	64.5	-1.3%	-18.6%
Circulation share % (2)	54.3%	56.4%	-3.8%	53.6%	54.0%	56.0%	0.6%	-4.2%
Total Digital Subs (3)	691.8	554.6	24.7%	691.8	657.9	554.6	5.2%	24.7%

⁽¹⁾ Average number of paper copies, (newsstands, and subscriptions), according to IVC (including Diario Clarín and Olé) in thousands

⁽²⁾ Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín/Clarín+La Nación. Source: IVC.

⁽³⁾ Total Clarin.com subs, in thousand, EOP. Company information.

BROADCASTING AND PROGRAMMING

	9M23	9M22	YoY	3Q23	2Q23	3Q22	QoQ	YoY
Advertising Share % (1)	32.1%	35.0%	-8.4%	32.1%	33.5%	35.7%	-4.3%	-10.1%
Audience Share % (2)
Prime Time	28.0%	33.7%	-16.7%	29.2%	32.0%	34.3%	-12.4%	-14.9%
Total Time	26.6%	31.3%	-15.2%	28.0%	27.8%	32.0%	-4.3%	-12.5%

⁽¹⁾ Company estimates, over ad spend in Ps. In broadcast TV for AMBA region.

⁽²⁾ Share of broadcast TV audience according to IBOPE for AMBA. Prime Time is defined as Monday through Friday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12 pm to 12 am.

DIGITAL KPIs

	9M23	9M22	YoY	3Q23	2Q23	3Q22	QoQ	YoY
Page Views (1)	825.8	896.5	-7.9%	738.0	808.9	974.5	2.1%	-24.3%
Mobile page Views	620.1	661.6	-6.3%	524.0	600.7	731.7	3.2%	-28.4%

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

DEBT AND LIQUIDITY

(In millions of Ps.)	September 2023	September 2022	% Change
Short Term and Long-Term Debt
Current Financial Debt	6,724.0	3,534.2	90.3%
Financial loans	4,690.5	1,921.3	144.1%
Accrued interest	132.3	387.2	(65.8%)
Acquisition of equipment	8.7	88.3	(90.1%)
Related Parties Accrued Interest	-	-	0.0%
Related Parties Capital	-	-	0.0%
Bank overdraft	1,892.5	1,137.3	66.4%
Non-Current Financial Debt	526.9	3,386.5	(84.4%)
Financial loans	526.9	3,365.7	(84.3%)
Acquisition of equipment	-	20.8	(100.0%)
Total Financial Debt (A)	7,250.9	6,920.7	4.8%
Total Short Term and Long-Term Debt	7,250.9	6,920.7	4.8%
Cash and Cash Equivalents (B)	16,514.6	15,846.2	4.2%
Net Debt (A) - (B)	(9,263.7)	(8,925.4)	3.8%
Net Debt/Adjusted Ebitda (1)	(0.62x)	(0.42x)	46.1%

Total Financial Debt⁽¹⁾ and Net Debt, increased 4.8% to Ps. 7,250.9 million from Ps. 6,920.7 million and to Ps. (9,263.7) million from Ps. (8,925.4) million, respectively.

Debt coverage ratio ⁽¹⁾ as of September 30, 2023 was (0.62x) in the case of Net Debt and of 0.48x in terms of Total Financial Debt.

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

REVENUES AND EBITDA - IAS 29 Adjustment

REVENUES (In millions of Ps.)	9M23	9M22	YoY	9M23 ex IAS 29	IAS 29 Adjust.	9M23 as reported	9M22 ex IAS 29	IAS 29 Adjust.	9M22 as reported
Digital and Printed Publications	55,656.9	51,368.9	8.3%	39,854.7	15,802.2	55,656.9	17,105.8	34,263.1	51,368.9
Broadcasting and Programming	50,165.6	57,336.7	(12.5%)	35,922.5	14,243.1	50,165.6	19,093.1	38,243.6	57,336.7
Others	7,745.5	8,088.8	(4.2%)	5,546.4	2,199.1	7,745.5	2,693.6	5,395.2	8,088.8
Subtotal	113,568.1	116,794.3	(2.8%)	81,323.7	32,244.5	113,568.1	38,892.4	77,901.9	116,794.3
Eliminations	(3,924.0)	(4,527.4)	(13.3%)	(2,809.9)	(1,114.1)	(3,924.0)	(1,507.6)	(3,019.8)	(4,527.4)
Total	109,644.1	112,266.9	(2.3%)	78,513.8	31,130.4	109,644.1	37,384.8	74,882.1	112,266.9

REVENUES (In millions of Ps.)	3Q23	3Q22	YoY	3Q23 ex IAS 29	IAS 29 Adjust.	3Q23 as reported	3Q22 ex IAS 29	IAS 29 Adjust.	3Q22 as reported
Digital and Printed Publications	17,178.1	16,207.6	6.0%	15,683.6	1,494.5	17,178.1	6,484.2	9,723.4	16,207.6
Broadcasting and Programming	16,748.9	19,857.7	(15.7%)	14,931.2	1,817.7	16,748.9	7,771.4	12,086.3	19,857.7
Others	2,247.9	2,339.4	(3.9%)	2,093.0	154.9	2,247.9	956.8	1,382.6	2,339.4
Subtotal	36,174.9	38,404.7	(5.8%)	32,707.8	3,467.1	36,174.9	15,212.4	23,192.3	38,404.7
Eliminations	(1,113.2)	(1,091.5)	2.0%	(1,044.2)	(69.0)	(1,113.2)	(469.7)	(621.8)	(1,091.5)
Total	35,061.7	37,313.2	(6.0%)	31,663.5	3,398.1	35,061.7	14,742.7	22,570.5	37,313.2

EBITDA (In millions of Ps.)	9M23	9M22	YoY	9M23 ex IAS 29	IAS 29 Adjust.	9M23 as reported	9M22 ex IAS 29	IAS 29 Adjust.	9M22 as reported
Digital and Printed Publications	4,127.2	4,247.9	(2.8%)	2,955.4	1,171.8	4,127.2	1,414.5	2,833.3	4,247.9
Broadcasting and Programming	7,550.2	11,822.3	(36.1%)	5,406.5	2,143.7	7,550.2	3,936.8	7,885.5	11,822.3
Others	167.1	695.9	(76.0%)	119.7	47.4	167.1	231.7	464.2	695.9
Total	11,844.5	16,766.0	(29.4%)	8,481.6	3,362.9	11,844.5	5,583.1	11,183.0	16,766.0

EBITDA (In millions of Ps.)	3Q23	3Q22	YoY	3Q23 ex IAS 29	IAS 29 Adjust.	3Q23 as reported	3Q22 ex IAS 29	IAS 29 Adjust.	3Q22 as reported
Digital and Printed Publications	314.0	1,193.1	(73.7%)	560.1	(246.1)	314.0	491.8	701.4	1,193.1
Broadcasting and Programming	2,688.3	5,146.5	(47.8%)	2,352.4	335.8	2,688.3	1,920.2	3,226.3	5,146.5
Others	(489.6)	(47.4)	932.4%	(292.8)	(196.7)	(489.6)	7.2	(54.6)	(47.4)
Subtotal	2,512.7	6,292.2	(60.1%)	2,619.7	(107.0)	2,512.7	2,419.1	3,873.1	6,292.2

STOCK AND MARKET INFORMATION

Grupo Clarín trades its stock in the Buenos Aires Stock Exchange (BCBA) and in the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.

GCLA (BCBA) Price per Share (ARS)	727.55
GCLA (LSE) Price per GDS (USD)	1.33
Total Shares	106,776,004
Shares per GDS	2
Closing Price	November 10, 2023

CONFERENCE CALL AND WEBCAST INFORMATION

GRUPO CLARIN S.A.

(BCBA: GCLA; LSE: GCLA)

cordially invites you to participate in its Webcast Presentation

to discuss its Nine months and Third Quarter 2023 Results

            Date: Tuesday, November 14, 2023        

Time: 1:00pm Buenos Aires Time/4:00pm London Time/11:00am New York Time

To access the live stream and slide presentation, visit:

 https://event.choruscall.com/mediaframe/webcast.html?webcastid=Zn6aVaSq

The webcast presentation will also be available at https://ir.grupoclarin.com

Investor Relations Contacts
In Buenos Aires:	In London:	In New York:
Samantha Olivieri	Alex Money	Camilla Ferreira and Marcella Ewerton Dragone
Grupo Clarín S.A.	Jasford IR	Fig Corporate Communications
Tel: [phone]	Tel: [phone]	Tel: [phone]
Email: [e-mail]	E-mail: [e-mail]	E-mail: [e-mail]

ABOUT THE COMPANY

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

Disclaimer

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

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022,

AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1 AND ENDING ON SEPTEMBER 30, 2023 AND 2022

 (Amounts stated in Argentine Pesos)

	September 30, 2023		September 30, 2022		July 1, 2023 through September 30, 2023		July 1, 2022 through September 30, 2022
Revenues	109,644,137,625		112,266,920,105		35,061,670,546		37,313,235,356
Cost of Sales (1)	(71,650,168,409)		(69,986,667,203)		(23,788,518,943)		(22,197,269,375)
Subtotal - Gross Profit	37,993,969,216		42,280,252,902		11,273,151,603		15,115,965,981
Selling Expenses (1)	(13,541,790,211)		(13,647,428,685)		(4,316,434,940)		(4,678,670,851)
Administrative Expenses (1)	(17,080,293,979)		(16,403,906,002)		(5,920,310,172)		(5,658,078,689)
Other Income and Expenses, net	450,460,385		(115,111,811)		214,104,209		148,102,150
Financial Expenses on Debt	(5,079,620,829)		(2,469,091,898)		(2,349,933,659)		(1,174,518,007)
Gain (Loss) on Net Monetary Position	(7,534,553,078)		(6,775,170,536)		(3,307,266,573)		(3,004,326,420)
Other Financial Results, net	1,966,201,095		(1,851,881,092)		233,944,944		(309,771,994)
Financial Results	(10,647,972,812)		(11,096,143,526)		(5,423,255,288)		(4,488,616,421)
Equity in Earnings from Associates	1,345,573,294		566,303,093		335,892,312		(739,661,273)
Income (Loss) before Income Tax	(1,480,054,107)		1,583,965,971		(3,836,852,276)		(300,959,103)
Income Tax	(33,144,651)		(2,698,300,690)		1,026,264,389		(1,346,865,865)
Net Income (Loss) for the Period	(1,513,198,758)		(1,114,334,719)		(2,810,587,887)		(1,647,824,968)
Other Comprehensive Income
Items which can be reclassified to Net Income (Loss)
Equity in Comprehensive Earnings from Associates	116,263,308		-		104,862,676		-
Variation in Translation Differences of Foreign Operations	(11,102,477)		(144,397,229)		(14,560,206)		(44,735,134)
Other Comprehensive Income (Loss) for the Period	105,160,831		(144,397,229)		90,302,470		(44,735,134)
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD	(1,408,037,927)		(1,258,731,948)		(2,720,285,417)		(1,692,560,102)
(Loss) Income Attributable to:
Shareholders of the Controlling Company	(1,377,153,316)		(1,181,880,427)		(2,719,972,075)		(1,565,536,902)
Non-Controlling Interests	(136,045,442)		67,545,708		(90,615,812)		(82,288,066)
Total Comprehensive Income (Loss) Attributable to:
Shareholders of the Controlling Company	(1,271,992,485)		(1,326,277,656)		(2,629,669,605)		(1,610,272,036)
Non-Controlling Interests	(136,045,442)		67,545,708		(90,615,812)		(82,288,066)
Basic and Diluted Earnings per Share (Note 10)	(12.90)		(11.07)		(25.47)		(14.66)

⁽¹⁾        Includes amortization of intangible assets and film library, right-of-use assets, depreciation of property, plant and equipment and investment property in the amount of $ 4,472,642,706 and $ 4,537,109,715 for the nine-month periods ended September 30, 2023 and 2022, respectively.

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of September 30^st, 2023 available at https://ir.grupoclarin.com

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022

 (Amounts stated in Argentine Pesos)

	September 30, 2023		December 31, 2022
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment	36,241,142,098		36,222,036,313
Intangible Assets	3,113,119,202		3,099,466,271
Goodwill	108,784,095		108,784,095
Investment Properties	3,729,948,105		3,784,034,269
Deferred Tax Assets	4,951,308,819		3,907,042,485
Right-of-Use Assets	323,633,797		162,705,342
Investments in Associates	20,481,816,519		19,187,334,497
Other Investments	895,319,914		918,949,450
Inventories	81,503,412		1,564,624,577
Other Assets	244,015,480		244,173,165
Other Receivables	771,526,499		265,726,126
Total Non-Current Assets	70,942,117,940		69,464,876,590
CURRENT ASSETS
Inventories	6,891,025,384		9,044,718,837
Other Assets	1,297,255,987		1,007,883,334
Other Receivables	6,861,176,898		10,510,537,337
Trade Receivables	28,909,037,826		37,167,203,491
Other Investments	13,461,572,775		12,297,546,425
Cash and Banks	3,926,996,320		4,351,485,385
Total Current Assets	61,347,065,190		74,379,374,809
Total Assets	132,289,183,130		143,844,251,399
EQUITY (as per the corresponding statement)
Attributable to Shareholders of the Controlling Company
Shareholders' Contribution	72,735,057,427		72,735,057,427
Other Items	(32,246,308)		(137,407,139)
Retained Earnings	8,867,759,489		10,244,912,805
Total Attributable to Shareholders of the Controlling Company	81,570,570,608		82,842,563,093
Attributable to Non-Controlling Interests	274,995,796		448,997,489
Total Equity	81,845,566,404		83,291,560,582
LIABILITIES
NON-CURRENT LIABILITIES
Provisions and Other Charges	3,939,486,995		5,678,405,305
Financial Debt	526,851,586		4,212,061,560
Lease Liabilities	41,720,569		27,282,717
Deferred Tax Liabilities	2,987,009,591		2,870,437,216
Taxes Payable	209,116,239		22,141,381
Other Liabilities	1,184,339,574		2,018,833,489
Trade and Other Payables	173,173,267		76,620,102
Total Non-Current Liabilities	9,061,697,821		14,905,781,770
CURRENT LIABILITIES
Financial Debt	6,724,023,379		2,896,300,597
Taxes Payable	1,839,065,378		1,527,507,050
Lease Liabilities	214,365,452		115,611,192
Other Liabilities	5,611,640,755		6,922,214,325
Trade and Other Payables	26,992,823,941		34,185,275,883
Total Current Liabilities	41,381,918,905		45,646,909,047
Total Liabilities	50,443,616,726		60,552,690,817
Total Equity and Liabilities	132,289,183,130		143,844,251,399

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

 (Amounts stated in Argentine Pesos - Note 2.1.1)

	Shareholders' Contribution				Other Items		Retained Earnings				Total Equity of Controlling Company		Equity Attributable to Non-Controlling Interests
	Capital Stock	Inflation Adjustment on Capital Stock	Additional Paid-in Capital	Subtotal	Other Comprehensive Income	Other Reserves	Legal Reserve	Voluntary Reserves (1)	Retained Earnings						Total Equity
Balances as of January 1st 2023	106,776,004	30,446,316,699	42,181,964,724	72,735,057,427	888,874,315	(1,026,281,454)	4,111,744,074	8,920,719,452	(2,787,550,721)		82,842,563,093		448,997,489		83,291,560,582
Reversal of Reserve (Note 9.a)	-	-	-	-	-	-	(2,787,550,721)	-	2,787,550,721		-		-		-
Dividends and Other Movements of Non-Controlling Interest	-	-	-	-	-	-	-	-	-		-		(37,956,251)		(37,956,251)
Net Income (Loss) for the Period	-	-	-	-	-	-	-	-	(1,377,153,316)		(1,377,153,316)		(136,045,442)		(1,513,198,758)
Other Comprehensive Income:
Changes in Other Comprehensive Income	-	-	-	-	105,160,831	-	-	-	-		105,160,831		-		105,160,831
Balances as of September 30, 2023	106,776,004	30,446,316,699	42,181,964,724	72,735,057,427	994,035,146	(1,026,281,454)	1,324,193,353	8,920,719,452	(1,377,153,316)		81,570,570,608		274,995,796		81,845,566,404
Balances as of January 1, 2022	106,776,004	30,446,316,699	42,181,964,724	72,735,057,427	982,186,544	(1,026,281,454)	-	8,920,719,452	4,111,744,061		85,723,426,030		575,601,453		86,299,027,483
Set-up of Reserves	-	-	-	-	-	-	4,111,744,061	-	(4,111,744,061)		-		-		-
Dividends and Other Movements of Non-Controlling Interest	-	-	-	-	-	-	-	-	-		-		(126,667,042)		(126,667,042)
Net Income (Loss) for the Period	-	-	-	-	-	-	-	-	(1,181,880,427)		(1,181,880,427)		67,545,708		(1,114,334,719)
Other Comprehensive Income:
Changes in Other Comprehensive Income	-	-	-	-	(144,397,229)	-	-	-	-		(144,397,229)		-		(144,397,229)
Balances as of September 30, 2022	106,776,004	30,446,316,699	42,181,964,724	72,735,057,427	837,789,315	(1,026,281,454)	4,111,744,061	8,920,719,452	(1,181,880,427)		84,397,148,374		516,480,119		84,913,628,493

^{(1) Corresponds to Judicial Reserve for Future Dividends Distribution}

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

 (Amounts stated in Argentine Pesos)

	September 30, 2023		September 30, 2022
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net Income (Loss) for the Period	(1,513,198,758)		(1,114,334,719)
Income Tax	33,144,651		2,698,300,690
Accrued Interest, net	490,557,946		442,912,292
Adjustments to reconcile Net Loss for the Period to Cash provided by Operating Activities:
Depreciation of Property, Plant and Equipment	3,236,811,132		3,418,965,715
Amortization of Intangible Assets and Film Library	842,954,804		767,024,259
Amortization of Right-of-Use Assets	338,790,606		309,586,882
Depreciation of Investment Properties	54,086,164		41,532,859
Net Allowances	2,043,742,085		1,316,446,556
Financial Income, except Interest	1,222,741,633		2,697,017,399
Gain (Loss) on Net Monetary Position	7,534,553,078		6,775,170,536
Equity in Earnings from Associates	(1,345,573,294)		(566,303,093)
Other Income and Expenses	(73,406,880)		81,442,859
Changes in Assets and Liabilities:
Trade Receivables	(19,250,203,173)		(14,224,031,550)
Other Receivables	(2,600,470,228)		(4,283,271,994)
Inventories	2,049,040,436		2,889,770,808
Other Assets	(324,563,030)		(86,160,766)
Trade and Other Payables	15,215,239,309		5,430,420,269
Taxes Payable	498,681,974		1,738,702,504
Other Liabilities	2,006,236,531		2,086,698,527
Provisions	(2,040,482,110)		(326,781,822)
Payments of Income tax	(388,120,568)		(2,177,834,447)
Net Cash Flows provided by Operating Activities	8,030,562,308		7,915,273,764
CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES
Payments for Acquisition of Property, Plant and Equipment	(3,355,545,045)		(3,288,358,277)
Payments for Acquisition of Intangible Assets	(870,606,968)		(720,084,159)
Acquisition of Government and Corporate Securities	12,178,856		(1,601,190,594)
Collection of Other Investments	-		32,431,959
Proceeds from Sale of Property, Plant and Equipment and Intangible Assets	166,953,824		38,785,724
Dividends Collected	186,349,414		410,304,637
Proceeds from Disposal of Unconsolidated Affiliates	-		108,531,880
Transactions with Securities, Bonds and Other Placements, Net	(1,214,816,764)		(1,653,532,687)
Payment of capital contributions	(634,156)		(799,870,696)
Net Cash Flows used in Investing Activities	(5,076,120,839)		(7,472,982,213)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
Loans Obtained	4,928,316,320		2,842,091,529
(Return) Collection of Counter Guarantee	(149,822,261)		1,083,305,462
Payment of Financial Debt	(2,842,666,011)		(1,193,139,253)
Payment of Interest	(1,719,833,734)		(507,754,148)
Payments to Non-Controlling Interests, net	-		(36,783,578)
Payment of Lease Liabilities	(258,426,579)		(276,726,063)
Net Cash Flows (used in) / provided by Financing Activities	(42,432,265)		1,910,993,949
Net Increase in Cash Flow	2,912,009,204		2,353,285,500
Cash and Cash Equivalents at the Beginning of the Year	15,734,383,039		16,953,181,329
FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS	(2,131,771,817)		(3,464,388,568)
Decrease in Cash Due to Deconsolidation of Subsidiaries (1)	-		4,082,467
Cash and Cash Equivalents at the End of the Period	16,514,620,426		15,846,160,728

(1)    Deconsolidation of cash flows, net, from Auto Sports S.A. as of September 30, 2022.

 

END