Cablevisión Holding announces its Full Year and Fourth Quarter 2020 Results (FY20 and 4Q20)
Cablevisión Holding (CVHSY) reported its 2020 financial results. Total revenues decreased by 6.5% to Ps. 301,596 million, affected by lower income from internet, cable TV, and fixed telephony. Despite a revenue decline, EBITDA saw a smaller dip of 1.8%, reaching Ps. 102,642 million, with an improved EBITDA margin of 34.0%. The consolidated net loss was Ps. 5,874 million, a 16.8% improvement compared to 2019. Price increases for services were suspended during the pandemic, impacting revenue growth.
- EBITDA margin improved to 34.0% in 2020 from 32.4% in 2019.
- Consolidated net loss reduced by 16.8% year-over-year.
- Total revenues decreased by 6.5% compared to 2019.
- Consolidated net loss amounted to Ps. 5,874 million.
BUENOS AIRES, ARGENTINA / ACCESSWIRE / March 10, 2021 / Cablevisión Holding S.A., ("Cablevision Holding", "CVH" or "the Company") (BCBA:CVH)(LSE:CVH)(OTC PINK:CVHSY), controlling shareholder of Telecom Argentina S.A. (TEO)(TECO2), announced today its full year and fourth 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 December 31, 2020, unless otherwise indicated.
The Company's Management has applied IAS 29 (inflation adjustment) in the preparation of these financial statements, following the provisions of Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV").
CVH Highlights (2020 vs. 2019):
- Total Revenues reached Ps. 301,596 million, a decrease of
6.5% in real terms as of December 31, 2020, compared to 2019, mainly driven by lower revenues from internet, cable TV, fixed telephony, and data services and from equipment sales, which was partially offset by higher mobile services revenues. Price increases of mobile and fixed Telephony, Internet and Pay TV services were suspended between May 1 to August 31, 2020, as agreed by industry players & the National Communications Entity (ENACOM), in an effort to ease the impact of the Covid-19 pandemic crisis. Moreover, Decree 690/2020 suspended any price increase or price increase announcement as from July 31st, 2020 until December 31st, 2020. - Total Costs (Excluding Depreciation and Amortization) reached Ps. 198,954 million, a decrease of
8.8% in constant currency, mainly driven by lower employee benefits expenses and severance payments, programming and content costs, fees for services, maintenance, materials and supplies, costs of equipment and handset, commissions and advertising costs, taxes and fees with the Regulatory Authority and other operating expenses, partially offset by higher bad debt expenses and higher interconnection costs. - EBITDA reached Ps. 102,642 million, a decrease of
1.8% in real terms compared to 2019, mainly driven by lower revenues, partially offset by lower operating costs, which resulted in a higher EBITDA Margin of34.0% in 2020, compared to32.4% in 2019. - Consolidated Net Loss amounted Ps. 5,874 million. Consolidated Net Loss attributable to the Controlling Company amounted to Ps. 3,011 million.
FINANCIAL HIGHLIGHTS
(millions of Ps.in constant Currency as of December 31, 2020) | 2020 | 2019 | % Ch. | 4Q20 | 3Q20 | 4Q19 | QoQ | YoY | ||||||||||||||||||||||||
Total Revenues | 301,596 | 322,686 | (6.5 | %) | 69,791 | 74,614 | 79,791 | (6.5 | %) | (12.5 | %) | |||||||||||||||||||||
EBITDA (1) | 102,642 | 104,539 | (1.8 | %) | 19,985 | 25,473 | 24,006 | (21.5 | %) | (16.7 | %) | |||||||||||||||||||||
EBITDA Margin (2) | 34.0 | % | 32.4 | % | 5.1 | % | 28.6 | % | 34.1 | % | 30.1 | % | (16.1 | %) | (4.8 | %) | ||||||||||||||||
Loss for the period | (5,874 | ) | (7,059 | ) | (16.8 | %) | (4,647 | ) | (3,816 | ) | 15,921 | 21.8 | % | (129.2 | %) | |||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||||||
Equity Shareholders | (3,011 | ) | (4,118 | ) | (26.9 | %) | (2,453 | ) | (1,611 | ) | 7,254 | 52.3 | % | (133.8 | %) | |||||||||||||||||
Non-Controlling Interests | (2,863 | ) | (2,941 | ) | (2.7 | %) | (2,194 | ) | (2,205 | ) | 8,667 | (0.5 | %) | (125.3 | %) | |||||||||||||||||
(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.
For a full version of this earnings release with financial statements, go to: https://www.cablevisionholding.com/Investors
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 Fourth Quarter 2020 Results
Date: Wednesday, March 17, 2021
Time: 12:00 pm Buenos Aires Time/11:00 am New York Time/3:00 pm 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 4Q20 results will be accompanied by a webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/cvhsy210414xGAotx0s.html
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: 64921135.
The webcast presentation will be archived at: https://www.cablevisionholding.com/Investors/Presentations
Investor Relations Contacts:
In Buenos Aires:
Cablevisión Holding S.A
Agustín Medina Manson, Head of Investor Relations
Valentina Lopez, Sr. Analyst
Email: ir@cvh.com.ar
Tel: (+54 11) 4309 - 3417
www.cvh.com.ar
In New York:
i-advize Corporate Communications, Inc
Camilla Ferreira
Email: cferreira@i-advize.com
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.
SOURCE: Cablevision Holding S.A.
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