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Cablevision Holding (CVH)

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Tuesday 12 November, 2019

Cablevision Holding

Third Quarter and Nine-Month 2019 Results

RNS Number : 0860T
Cablevision Holding S.A.
12 November 2019
 

Cablevisión Holding Announces nine months and Third Quarter 2019 Results (9M19 and 3Q19)

 

Buenos Aires, Argentina, November 11, 2019 - 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 nine months and third quarter 2019 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 September 30, 2019, 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 (9M19 vs. 9M18):

 

§ Total Revenues reached Ps. 159,699 million, a decrease of 10.2% in real terms as of September 30, 2019, compared to 9M18, mainly driven by lower mobile and cable services revenues.

§ Total Costs (Excluding Depreciation and Amortization) reached Ps. 106,749 million, a decrease of 8.0% in constant currency, mainly driven by lower labor costs, taxes and fees, commissions and advertising, cost of handsets sold and programing and content costs.

§ EBITDA reached Ps. 52,950 million, a decrease of 14.4% in real terms compared to 9M18, mainly driven by lower revenues. EBITDA Margin was 33.2% in 9M19, compared to 34.8% in 9M18.

§ Consolidated Net Income totaled a loss of Ps. (15,109) million. Consolidated Net Income attributable to the Controlling Company amounted to Ps. (7,477) million.

                                                                                                                                                                                                                                       

FINANCIAL HIGHLIGHTS

 

(millions of Ps.in constant Currency as of September 30, 2019)

9M19

9M18

% Ch.

3Q19

2Q19

3Q18

QoQ

YoY

Total Revenues

159,699

177,898

(10.2%)

53,106

52,010

57,444

2.1%

(7.6%)

EBITDA (1)

52,950

61,836

(14.4%)

17,306

17,887

18,839

(3.2%)

(8.1%)

EBITDA Margin (2)

33.2%

34.8%

(1.6%)

32.6%

34.4%

32.8%

(1.8%)

(0.2%)

Income for the period

(15,109)

(18,429)

(18.0%)

(22,231)

6,264

(18,210)

(454.9%)

(22.1%)

Attributable to:

 

 

 

 

 

 

 

 

Equity Shareholders

(7,477)

(11,356)

34.2%

(9,921)

2,657

(8,780)

(473.4%)

(13.0%)

Non-Controlling Interests

(7,632)

(7,073)

(7.9%)

(12,310)

3,606

(9,430)

(441.3%)

(30.5%)

 

 

(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. 159,699 million, a decrease of 10.2% compared to Ps. 177,898 million in 9M18, mainly driven by lower revenues from Mobile and Cable TV services in constant currency.

 

Following is a breakdown of Total Revenues:

 

(millions of Ps.in constant Currency as of September 30, 2019)

9M19

9M18

YoY

9M19
% of Total

9M18
% of Total

Mobile Services

54,829

61,857

(11.4%)

34.3%

34.8%

Internet Services

35,859

40,003

(10.4%)

22.5%

22.5%

Cable TV Services

33,390

38,283

(12.8%)

20.9%

21.5%

Fixed Telephony and Data Services

25,021

23,297

7.4%

15.7%

13.1%

Other revenues from services

542

864

(37.3%)

0.3%

0.5%

Revenues From Services

149,641

164,304

(8.9%)

93.7%

92.4%

Revenues From Equipment Sales

10,058

13,594

(26.0%)

6.3%

7.6%

Total Revenues

159,699

177,898

(10.2%)

100.0%

100.0%

 

Mobile Services Revenues decreased by 11.4% in real terms. This was mainly the results of the restatement effect as of September 30,2019, which was partially offset by the increase in the mobile plan prices.

 

In Argentina, Personal mobile subscriber amounted to 19 million and around 40% of them are postpaid. Thanks to the value proposition of Personal, the Company increased in more than 560 thousand and 490 clients comparing to the 2Q19 and the same period of 2019, respectively. Mobile internet revenues reached 76% of service revenues of Personal in Argentina (vs. 59% in 9M18). During the nine months of 2019, mobile ARPU was Ps. 281.1, resulting in an 8.3% lower ARPU restated in constant currency compared to 9M18. Revenues excluding revenues from equipment sales amounted to Ps 54,829 million.

 

As of September 30, 2019, Núcleo customer base reached more than 2.3 million subscribers, of which 17% are postpaid. Revenues from Núcleo services were Ps 7,304 million in 9M19, an increase of 10.6% compared to 9M18. Mobile internet revenues represented 50% of 9M19 service revenues (vs. 44% in 9M18).

 

Internet Services Revenues dropped 10.4% to Ps. 35,859 in 9M19, mainly due to the results of the restatement effect as of September 30, 2019. Of the 4.1 million broadband customers reached in 9M19, around 58% of them subscribed to services with speeds of 20Mb or higher, increasing from the participation registered in 9M18 (34%). Internet ARPU was Ps. 967.2 in 9M19, decreasing 11.2% compared to 9M18, mainly due to the restatement effect as of September 30, 2019. Monthly churn stood at 1.5% in 9M19.

 

Cable TV Services Revenues amounted to Ps. 33,390 million in 9M19, a decrease of 12.8% compared to 9M18. ARPU had a reduction in real terms (as of September 30, 2019) from Ps. 1,205.2 in 9M18 to Ps. 1065.7 in 9M19, a decrease of 11.6%. With the aim to continue offering to its customers the best entertainment experience, Telecom renewed Cablevisión Flow´s App. The development of this project was entirely in-house, thanks to a multi-disciplinary work team. The renewal of Flow App permitted to modernize its interface, optimize the navigation, improve the search engine and organize the selected contents for each client.

 

Fixed Telephony and Data Services Revenues reached Ps. 25,021 million in 9M19, an increase of 7.4% compared to 9M18. The increase was the result of higher Data services revenues, mainly driven by the growing position of Telecom Argentina as an integrated ICT provider (Datacenter, VPN, among other services) in the segment of Corporate and Government customers. Additionally, prices in fixed telephony services for both, corporates and residential, have increased and, consequently, ARBU in fixed telephony also increased 3.1%, from Ps. 378.5 in 9M18 to Ps. 390.1 in 9M19.

 

Consolidated Operating Costs and Expenses (Excluding D&A and impairment of PP&E and intangible assets) totaled Ps. 106,749 million in 9M19, a decrease of Ps. 9,313 million, or 8.0% compared to 9M18. These lower operating costs and expenses were mainly due to lower cost of taxes and fees with the regulatory authority, commissions and advertising, cost of handsets sold, interconnection and transmission costs, programming costs and labor costs. More than 99.7% of the costs and expenses are related to Telecom Argentina operations.

 

EBITDA reached Ps. 52,950 million, a decrease of 14.4% from Ps. 61,835 million reported for 9M18, driven by lower revenues mainly in Mobile Services and Cable TV.

 

Depreciation, amortization and impairment of PP&E, intangible assets and rights-of-use amounted Ps. 38,812 million in 9M19, an increase of 14.8% compared to 9M18. The increase was due to the impact of the amortization of the incorporations after September 30, 2018, as a consequence of the Capex Plan that Telecom Argentina is developing and the effect of the application of IFRS 16 since January 1, 2019, which was partially offset by assets that have stopped amortizing in 2019.

 

Equity in earnings from unconsolidated affiliates totaled Ps. (204) million in 9M19, compared to Ps. 209 million in 9M18.

 

Financial Results net totaled Ps. (16,500) million compared to Ps. (57,935) million in 9M18, as a result of a lower impact of the peso depreciation on dollar denominated debt: lower negative FX results (including results of NDF) measured in real terms in 9M19 for Ps. 9,807 million (due to a depreciation of the Argentine peso against the US dollar of 53% vs. an inflation of 38% during the same period), while negative FX results measured in real terms registered in 9M18 amounted to Ps. 57,130 million (due to a depreciation of the Argentine peso against the US dollar of 121% vs. an inflation of 32% during the same period). These results were partially offset by a lower inflation adjustment results.

 

Income tax as of September 2019 reached Ps. (12,543) million, from Ps. 11,257 million in September 2018.

 

Net Income for the period totaled a loss of Ps. (15,109) million, from Ps. (18,429) million reported for 9M18. This was mainly a consequence of lower peso depreciation and lower financial costs in 9M19. The Equity Shareholders Income for the period amounted to Ps. (7,477) million.

 

(millions of Ps.in constant Currency as of September 30, 2019)

9M18

YoY

3Q19

2Q19

3Q18

QoQ

YoY

 
 

Consolidated Revenues

159,699

177,898

(10.2%)

53,106

52,010

57,444

2.1%

(7.6%)

 

  Employee benefit expenses and severance payments

(30,426)

(31,130)

(2.3%)

(10,072)

(9,530)

(10,353)

5.7%

(2.7%)

 

  Interconnection and Transmission Costs

(5,102)

(5,701)

(10.5%)

(1,742)

(1,555)

(1,943)

12.1%

(10.3%)

 

  Fees for Services, Maintenance, Materials and Supplies

(17,332)

(17,396)

(0.4%)

(6,262)

(5,475)

(6,262)

14.4%

0.0%

 

  Taxes and Fees with the Regulatory Authority

(12,520)

(14,319)

(12.6%)

(4,060)

(4,170)

(4,505)

(2.6%)

(9.9%)

 

  Commissions and Advertising

(9,538)

(11,312)

(15.7%)

(3,262)

(3,175)

(3,747)

2.8%

(12.9%)

 

  Cost of Equipment and Handsets

(7,495)

(10,162)

(26.2%)

(2,278)

(2,530)

(3,065)

(10.0%)

(25.7%)

 

  Programming and Content Costs

(12,043)

(12,760)

(5.6%)

(4,008)

(3,831)

(4,259)

(4.6%)

5.9%

 

  Bad Debt Expenses

(4,348)

(3,553)

22.4%

(1,352)

(1,209)

(1,165)

(11.8%)

(16.1%)

 

  Other Operating Income and Expense

(7,945)

(9,729)

(18.3%)

(2,764)

(2,648)

(3,306)

4.4%

(16.4%)

 

EBITDA1

52,950

61,836

(14.4%)

17,306

17,887

18,839

(3.2%)

(8.1%)

 

EBITDA Margin2

33.2%

34.8%

(1.6%)

32.6%

34.4%

32.8%

(1.8%)

(0.21%)

 

Net Income

(15,109)

(18,429)

18.0%

(22,231)

6,264

(18,210)

(454.9%)

(22.1%)

 

Attributable to:

 

 

 

 

 

 

 

 

 

Controlling Company

(7,477)

(11,356)

(34.2%)

(9,921)

2,657

(8,780)

(473.4%)

(13.0%)

 

Non-controlling interest

(7,632)

(7,073)

(7.9%)

(12,310)

3,606

(9,430)

(441.3%)

(30.5%)

 

 

 

OPERATING STATISTICS BY BUSINESS SEGMENT

 

9M19

9M18

YoY

Mobile Services

 

 

 

Total Subscribers

21,282

20,851

(2.1%)

Personal (Argentina)

18,974

18,484

(2.7%)

Nucleo (Paraguay)

2,308

2,368

(2.5%)

 

 

 

 

Postpaid

 

 

 

Personal (Argentina)

40%

38%

5.3%

Nucleo (Paraguay)

17%

17%

-

 

 

 

 

ARPU Personal(2)

281.1

306.5

(8.3%)

Churn

2.1%

2.7%

(23.5%)

 

 

 

 

Broadband Services

 

 

 

Subscribers

4,144

4,133

0.3%

Speeds >20Mb (% of subs)

58%

34%

70.6%

ARPU(2)

967.2

1089.0

(11.2%)

Churn(4)

1.5%

1.3%

11.2%

Cable TV Services

 

 

 

Cable TV Subs

3,515

3,564

(1.4%)

Argentina Subs

3,291

3,345

(1.6%)

Uruguay Subs

143

143

-

Paraguay Subs

81

76

6.6%

ARPU(2)

1065.7

1205.2

(11.6%)

Churn(4)

1.3%

1.2%

5.6%

Fixed Line Services

 

 

 

Subscribers

3,272

3,617

(9.5%)

ARBU(3)

390.1

378.5

3.1%

 

(1) Figures in thousands

(2) ARPU = Average Revenue per user (restated by inflation as of September 30, 2019)

(3) ARBU = Average Billing per user (restated by inflation as of September 30, 2019)

(4) Monthly Average Churn

 

CAPITAL EXPENDITURE (CAPEX)

 

During 9M19, our subsidiary, Telecom Argentina, invested Ps. 43,939 million, an increase of approximately 4.0% compared to 9M18. The investments were focused on projects aimed to maximize the network capacity and on products and services developed to contribute the customer's needs in terms of connectivity and data availability. Moreover, transmission and transport networks has been extended to unify the different access technologies, reconverting the copper fixed networks into fiber or coaxial-fiber hybrid networks, in order to face the increasing services demand from mobile and fixed clients.  In addition, our subsidiary has invested in the charging, billing and relationship systems with customers. Telecom Argentina aims to improve the capacity and coverage of its networks, which is a key factor, not only for the transformation towards convergent services, but also to leverage the content business, with Flow as an integral content platform and entertainment center. In relative terms, investments reached 27.5% of consolidated revenues in 9M19, compared to 23.7% in 9M18.

 

 

DEBT AND LIQUIDITY

 

(In millions of Ps.)

September 2019

December 2018

% Change

Short Term and Long-Term Debt 

 

 

 

Current Financial Debt

38,938

38,864

0.2%

Bank overdraft

7,358

3,134

134.8%

Financial loans

12,693

29,078

(56.3%)

Acquisition of equipment

1,481

1,443

2.6%

NDF

178

138

NA

Accrued interest

17,228

5,071

239.7%

Non-Current Financial Debt

115,473

81,609

41.5%

Negotiable obligations

38,344

25,929

47.9%

Financial loans

57,054

47,174

20.9%

NDF

23

0

NA

Acquisition of equipment

2,420

1,420

70.4%

Accrued interest

17,632

7,086

148.8%

Total Financial Debt (A)

154,411

120,473

28.2%

 

 

 

 

Cash and Cash Equivalents (B)

42,906

19,911

37,2%

Net Debt (A) - (B)

111,505

100,562

(8,2%)

Net Debt/Adjusted Ebitda (1)

1,6x

1,3x

20,7%

% USD Debt

93,4%

94,8%

(1.5%)

% PYG Debt

2,7%

2,6%

0.2%

% ARS Debt

3,9%

2,6%

1.3%

 

Total Financial Debt(1) increased from Ps. 120,473 million to Ps. 154,411 million and Net Debt increased from Ps 100,562 to Ps. 111,505.

 

Debt coverage ratio (1) as of September 30, 2019 was 1.6x in the case of Net Debt and of 2.2x in terms of Total Financial Debt.

 

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

 

 

CVH Standalone Debt

 

(In millions of Ps.)

Sep 2019

Dec 2018

% change

Short Term and Long-Term Debt 

 

 

 

Current Financial Debt

8,181

11,265

(27.4%)

 

Financial loans

8,170

11,280

(27.6%)

Accrued interest

11

11

-

Measurement at fair Value

 

0

(26)

N.A.

Non-Current Financial Debt

0

0

-

Financial loans

0

0

-

Total Short Term and Long-Term Debt (A)

8,181

11,265

27.4%

Cash and Equivalents (B) (1)

1,657

1,489

11.3%

Net Debt (A)-(B)

6,524

9,776

(33.3%)

 

(1)  Includes Ps. 357 million and Ps. 412 million of Reserve Account as of September 19 and Dec 18, respectively.

               

 

On 28 October, 2019, the Company informed the Argentine Securities Commission and the Buenos Aires Stock Exchange that it had made a prepayment of the outstanding principal amount under the USD750,000,000 Loan with Citibank, N.A, Goldman Sachs Bank USA, the Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch and Itaú Unibanco S.A. Nassau Branch, pursuant to amendment dated on 20 March 2019, for the amount of USD 25,401,114.77.

 

As of today, the Loan has been totally paid and there is no debt at holding level.              

 

 

 

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)

 

241.0

CVH or CVHSY Price per GDS (USD)

3.2

Total Shares

180,642,580

Total GDSs

180,642,580

Market Value (USD MM)

583.5

Closing Price

November 11, 2019

 

 

 

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 Third Quarter 2019 Results

 

Date: Wednesday, November 13, 2019

Time: 12:00pm Buenos Aires Time/10:00am New York Time/3:00pm 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 3Q19 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/cvhsy1911136CK23nUM.html

 

 

NOTE: Cablevisión Holding S.A. will release its Third Quarter 2019 Earnings Report on Monday, November 11, 2019 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: 85288137

 

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, Inc

Agustín Medina Manson, Head of Investor Relations                                                           Camilla Ferreira / Kenia Vargas

Valentina Lopez, Sr. Analyst                                                                                   Email:      [email protected]

Email: [email protected]                                                                                                             [email protected] 

Tel: (+54 11) 4309 - 3417                                                                                                      Tel: +1 212 406 3695 / 3696

www.cvh.com.ar 

 

 

 

 

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-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018,

AND THE THREE-MONTH PERIODS BEGINNING ON JULY 1 AND ENDING ON SEPTEMBER 30, 2019 AND 2018

 (in millions of Argentine pesos)

 

September 30, 2019

 

September 30, 2018

 

 

July 1, 2019 through September 30, 2019

 

 

July 1, 2018 through September 30, 2018

 

 

 

 

 

 

 

 

Revenues

159,699

 

177,898

 

53,106

 

57,444

  Employee benefit expenses and severance payments

(30,426)

 

(31,130)

 

(10,072)

 

(10,353)

  Interconnection and Transmission Costs

(5,102)

 

(5,701)

 

(1,742)

 

(1,943)

  Fees for Services, Maintenance, Materials and Supplies

(17,332)

 

(17,396)

 

(6,262)

 

(6,262)

  Taxes and Fees with the Regulatory Authority

(12,520)

 

(14,319)

 

(4,060)

 

(4,505)

  Commissions and Advertising

(9,538)

 

(11,312)

 

(3,262)

 

(3,747)

  Cost of Equipment and Handsets

(7,495)

 

(10,162)

 

(2,278)

 

(3,065)

  Programming and Content Costs

(12,043)

 

(12,760)

 

(4,008)

 

(4,259)

  Bad Debt Expenses

(4,348)

 

(3,553)

 

(1,352)

 

(1,165)

  Other Operating Income and Expense

(7,945)

 

(9,729)

 

(2,764)

 

(3,306)

Operating Income before Depreciation and Amortization

52,950

 

61,836

 

           17,306

 

18,839

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

(38,812)

 

(33,796)

 

(13,535)

 

(12,196)

Operating Income

14,138

 

28,040

 

3,771

 

            6,643

  Equity in Earnings from Associates

(204)

 

209

 

(390)

 

11

  Financial Expenses on Debts

(25,817)

 

(68,344)

 

(28,040)

 

(46,413)

  Other Financial Results, net

9,317

 

10,409

 

6,398

 

14,397

Loss before Income Tax Expense

(2,566)

 

(29,686)

 

(18,261)

 

(25,362)

  Income Tax

(12,543)

 

11,257

 

(3,970)

 

7,152

Net Loss

(15,109)

 

(18,429)

 

(22,231)

 

(18,210)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

  Currency Translation Adjustments (no effect on Income Tax)

 

(495)

 

3,874

 

 

1,668

 

1,872

  Effect of NDF classified as hedges

(360)

 

544

 

(83)

 

214

  Tax Effect of NDF classified as hedges

94

 

(153)

 

40

 

               (52)

Other Comprehensive Income, net of Taxes

(761)

 

4,265

 

1,625

 

            2,034

 

 

 

 

 

 

 

 

Total Comprehensive Income

(15,870)

 

(14,164)

 

(20,606)

 

(16,176)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income attributable to:

 

 

 

 

 

 

 

Shareholders of the Controlling Company

(7,477)

 

(11,356)

 

(9,921)

 

(8,780)

Non-Controlling Interest

(7,632)

 

(7,073)

 

(12,310)

 

(9,430)

 

 

 

 

 

 

 

 

Total Comprehensive Income (Loss) Attributable to:

 

 

 

 

 

 

 

Shareholders of the Controlling Company

(7,762)

 

(10,122)

 

(9,464)

 

(8,132)

Non-Controlling Interest

(8,108)

 

(4,042)

 

(11,142)

 

(8,044)

 

 

 

 

 

 

 

 

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

(41.39)

 

(62.86)

 

(54.92)

 

(48.62)

 

 

 

CABLEVISIÓN HOLDING S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(in millions of Argentine pesos)

 

 

 

 

 

 

ASSETS

September 30, 2019

 

December 31, 2018

CURRENT ASSETS

 

 

 

Cash and Cash Equivalents

38,854

 

10,267

Investments

1,251

 

1,888

Trade Receivables

16,192

 

23,979

Other Receivables

6,049

 

7,063

Inventories

3,459

 

3,769

Other Assets

357

 

412

Total Current Assets

66,162

 

47,378

NON-CURRENT ASSETS

 

 

 

Trade Receivables

101

 

84

Other Receivables

1,986

 

2,750

Deferred Income Tax Assets

171

 

161

Investments

2,079

 

7,704

Goodwill

157,047

 

157,098

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

215,165

 

206,826

Intangible Assets

77,184

 

81,667

Right-of-Use Assets

8,207

 

781

Total Non-Current Assets

461,940

 

457,071

Total Assets

528,102

 

504,449

LIABILITIES

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts Payable

29,791

 

31,517

Financial Debt

38,938

 

38,864

Salaries and Social Security Payables

7,431

 

8,200

Taxes Payable

2,525

 

3,236

Lease Liabilities

2,829

 

-

Other Liabilities

1,782

 

2,202

Provisions

909

 

1,024

Total Current Liabilities

84,205

 

85,043

NON-CURRENT LIABILITIES

 

 

 

Accounts Payable

1,725

 

785

Financial Debt

115,473

 

81,609

Salaries and Social Security Payables

609

 

478

Deferred Income Tax Liabilities

46,008

 

33,793

Taxes Payable

17

 

36

Lease Liabilities

3,657

 

-

Other Liabilities

1,355

 

1,597

Provisions

4,247

 

4,775

Total Non-Current Liabilities

173,091

 

123,073

Total Liabilities

257,296

 

208,116

EQUITY (as per the corresponding statement)

 

 

 

Attributable to Shareholders of the Parent Company

107,516

 

115,307

Attributable to Non-Controlling Interests

163,290

 

181,026

TOTAL EQUITY

270,806

 

296,333

TOTAL LIABILITIES AND EQUITY

528,102

 

504,449

 

 

 

 

 

 

 

 

 

CABLEVISIÓN HOLDING S.A.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

 (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, 2018

181

5,509

13,380

19,070

 

(1,555)

(10)

 

190

9,366

19,010

46,071

 

22,737

 

68,808

Effect of Adopting New Accounting Policies

-

-

-

-

 

-

-

 

-

-

(137)

(137)

 

(99)

 

(236)

Effect of the Merger

-

-

-

-

 

-

71,172

 

-

 

-

71,172

 

176,896

 

248,068

Set-up of Reserves

-

-

-

-

 

-

-

 

-

3,285

(3,285)

-

 

-

 

-

Dividends and Other Movements of Non-Controlling Interest

-

-

-

-

 

-

 

-

-

-

-

 

(24,188)

 

(24,188)

Changes in Other Reserves

-

-

-

-

 

-

(70)

 

-

-

-

(70)

 

(112)

 

(182)

Net Income (Loss) for the Period

-

-

-

-

 

-

-

 

-

-

(11,356)

(11,356)

 

(7,073)

 

(18,429)

Other Comprehensive Income

-

-

-

-

 

1,234

-

 

-

-

-

1,234

 

3,031

 

4,265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of September 30, 2018

181

5,509

13,380

19,070

 

(321)

71,092

 

190

12,651

4,232

106,914

 

171,192

 

278,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of January 1, 2019

181

5,509

13,380

19,070

 

(945)

70,962

 

190

12,651

13,379

115,307

 

181,026

 

296,333

Set-up of Reserves (Note 26.1)

-

-

-

-

 

-

-

 

948

79,382

(80,330)

-

 

-

 

-

Dividends and Other Movements of Non-Controlling Interest

-

-

-

-

 

-

-

 

-

-

-

-

 

(9,500)

 

(9,500)

Acquisition of an equity interest in Tuves

-

-

-

-

 

-

12

 

-

-

-

12

 

(66)

 

(54)

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

-

-

-

-

 

-

(41)

 

-

-

-

(41)

 

(62)

 

(103)

Net Income (Loss) for the Period

-

-

-

-

 

-

-

 

-

-

(7,477)

(7,477)

 

(7,632)

 

(15,109)

Other Comprehensive Income

-

-

-

-

 

(285)

-

 

-

-

-

(285)

 

(476)

 

(761)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of September 30, 2019

181

5,509

13,380

19,070

 

(1,230)

70,933

 

1,138

 (2) 92,033

(74,428)

107,516

 

163,290

 

270,806

 

(1) Includes 1,578 treasury shares. See Note 20.

(2)  Broken down as follows: (i) Voluntary Reserve for Illiquid Results of $ 75,510, (ii) Voluntary Reserve for Financial Obligations of $ 16,523.

 

 

 

CABLEVISIÓN HOLDING S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

 (in millions of Argentine pesos)

 

 

 

 

 

September 30, 2019

 

September 30, 2018

CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

 

 

Net Loss

(15,109)

 

(18,429)

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

 

 

 

  Allowances Deducted from Assets and Provisions for Lawsuits and Other Contingencies

7,059

 

3,628

  Depreciation of PP&E

30,946

 

27,701

  Amortization of Intangible Assets

5,648

 

                5,566

  Amortization of Rights of Use

2,195

 

                     73

  Equity in Earnings from Associates

204

 

                 (209)

  Impairment of PP&E

23

 

                   456

  Net Book Value of PP&E

97

 

                   984

  Financial Results and Other

24,322

 

              54,244

  Income Tax Expense

12,543

 

(11,257)

  Income Tax Paid

(1,352)

 

              (8,937)

  Decrease (Increase) in Assets, Net

2,175

 

              (5,573)

  Net Decrease in Liabilities

(13,222)

 

(9,237)

Net Cash Flows provided by Operating Activities

55,529

 

              39,010

CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

 

  PP&E Acquisitions

(31,154)

 

 (30,629)

  Intangible Assets Acquisition

(1,111)

 

(3,528)

  Acquisition of an equity interest in Tuves

(54)

 

-

  Acquisition of an equity interest in CV Berazategui

-

 

(324)

  Collection of Dividends

147

 

68

  Cash Incorporated under the Merger

-

 

5,658

  Income from Sale of PP&E and Intangible Assets

1

 

57

  Investments not considered as cash and cash equivalents

4,344

 

3,694

Net Cash Flows used in Investing Activities

(27,827)

 

(25,004)

CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

 

 

  Proceeds from Financial Debt

48,402

 

42,384

  Payment of Financial Debt

(31,145)

 

(24,889)

  Payment of Interest and Related Expenses

(6,558)

 

(4,293)

  Payment of Lease Liabilities

(1,755)

 

-

  Decrease in the Reserve Account

108

 

497

  Payment of Cash Dividends to Non-Controlling Interests

(9,257)

 

(26,030)

Net Cash Flows used in Financing Activities

(205)

 

(12,331)

 

 

 

 

NET INCREASE IN CASH FLOWS

27,497

 

1,675

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR:

10,267

 

10,199

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

 

1,090

 

4,960

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

38,854

 

16,834

 


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