Grupo Clarín announces its

Fourth Quarter (4Q09) and Full Year (FY09) results for 2009

Buenos Aires, Argentina, March 11^th, 2010 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its fourth quarter and full year results for 2009. Figures in this report have been prepared in accordance with Argentine GAAP as of December 31^st, 2009 and are stated in Argentine Pesos, unless otherwise indicated.

Highlights (FY09 vs. FY08):

§Net Sales totaled Ps. 6,678.8 million, an increase of 16.4% from 2008, mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in Broadcasting and Programming and higher sales in the Printing and Publishing segments.

§Adjusted EBITDA ⁽¹⁾ reached Ps. 1,985.7 million, an increase of 18.6% from 2008, mainly driven by higher sales in the Cable and Internet access segment.

§Grupo Clarín's Adjusted EBITDA Margin ⁽²⁾ for 2009 was 29.7%, compared to 29.2% in 2008.

§Net Income totaled Ps.  290.1  million, an increase of 10.4% from Ps. 262.7 million reported in 2008.

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. Because Adjusted EBITDA is not an Argentine GAAP measure, 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. 

Investor Relations Contacts

In Buenos Aires:

Alfredo Marín / M. Julia Díaz Ardaya / Romina Vázquez

Grupo Clarín S.A.

Tel: +54 11 4309 7215

Email: investors@grupoclarin.com

http://www.grupoclarin.com/ir

In London:

Alex Money / Lorna Ellen

Temple Bar Advisory

Tel: +44 20 7002 1080

E-mail: clarin@templebaradvisory.com

In New York:

Melanie Carpenter / Peter Majeski

i-advize Corporate Communications

Tel: +1 212 406 3692

Email: clarin@i-advize.com

OPERATING RESULTS

Net sales reached Ps.6,678.8 million, an increase of16.4% from Ps.5,736.1 million in 2008 mainly due to ARPU and subscriber growth in the Cable TV and Internet access segment and, to a lesser extent, to higher advertising sales in Broadcasting and Programming, and higher sales in the Printing and Publishing segments.

Following is a breakdown of Net Sales by business segment:

NET SALES

Cost of sales (Excluding Depreciation and Amortization) reached Ps.  3,260.5  million, an increase of 16.5% from Ps. 2,799.5 million reported for 2008 due to higher costs in our business segments, mainly in Cable TV and Internet access due to subscriber growth, but also in Printing and Publishing and in Broadcasting and Programming.

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 1,432.6  million, an increase of 13.5% from Ps. 1,262.0  million in 2008. This increase was mainly due to higher costs in the Cable TV and Internet access, in the Broadcasting and Programming and in the Printing and Publishing segments.

Adjusted EBITDA reached Ps.1,985.7 million, an increase of 18.6% from Ps. 1,674.6  million reported for2008, driven by higher sales in the Cable and Internet access, Broadcasting and Programming and Printing and Publishing segments, and partially offset by increasing costs.

Following is a breakdown of adjusted EBITDA by business segment:

ADJUSTED EBITDA

Financial results nettotaled Ps.(617.6) million compared to Ps(517.2) million for 2008. The increase was mainly due to the peso depreciation during 2009, which went from 3.45 pesos per dollar at the end of 2008, to 3.80 pesos per dollar as of December 31^st, 2009

Equity in earnings from unconsolidated affiliates in 2009 totaled Ps. 16.3 million, compared to Ps. 9.3  million for 2008.

Other expenses, net reached Ps.(2.3) million, compared to Ps. (16.6) million in 2008.

Income tax as of December 2009 reached Ps. (312.4) million, from Ps. (299.7) million in December 2008. 

Net income totaled Ps.290.1 million, an increase of10.4% from Ps.262.7  million reported for 2008. This was mainlya consequence of higher EBITDA in the Cable & Internet access segment partially offset by the peso depreciation during 2009. The Total loss as a consequence of the exchange rate differences generated by our financial and other debt in foreign currency amounted to 273.4 million pesos.

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 686.6  million in2009, a decrease of19.0%  from Ps.847.3  million reported for2008. Out of the total CAPEX in 2009, 83.4% was allocated to the Cable TV and Internet access segment, 11.0% to the Printing and Publishing segment and the remaining 5.7% to other activities. Our Capex in the Cable TV and Internet access segment contemplates network upgrades, digitalization, subscriber growth and further development of the triple play strategy. 

Debt profile ⁽¹⁾: Debt coverage ratio for the period ended December 31, 2009 was 1.1x, while Net Debt at the end of this period totaled Ps. 2,153.4 million.

⁽¹⁾ Debt Coverage Ratio is defined as Total Financial Debt minus Cash and Equivalents divided by Adjusted EBITDA (last 12 months). Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. The figure does not include cash in reserve accounts in Cablevisión S.A.

SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2009

SALES BREAKDOWN BY SOURCE OF REVENUE - DECEMBER 2008

RESULTS BY BUSINESS SEGMENT

CABLE TV AND INTERNET ACCESS

Net Sales

Net sales increased by 23.5% to Ps.4,219.0 million for 2009compared to Ps. 3,417.5 million for 2008. The increase is mostly attributable to an increase in subscription charges registered during the last twelve months, and also reflects the growth in Cable, Broadband and Digital subscribers. The company has discontinued the consolidation of 99,6 thousand subscribers since October 1^st, 2009. Therefore, Total Consolidated Cable TV basic subscribers reached 3,192,950 as of December 2009, compared to the 3,190,570 reported for the same date in 2008. Internet subscribers reached 988,031 in December 2009, compared to the 938,787 of December 2008.

Cost of Sales(Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 26.2% to Ps. 1,843.6 million for December 2009, compared to Ps. 1,461.2 million in December 2008. This was mainly derived from personnel and salary increases, and higher programming costs attributable to growth in our subscriber base and also to pricing adjustments linked to basic monthly fee increases. It also shows higher expenses for maintenance of property, plant and equipment, along with network expenses and transmission costs. 

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 12.7% to Ps.     857.6 million for 2009, compared to Ps. 760.8 million reported in 2008. This increase is driven by higher expenses for salaries, fees for services, wages and social security charges, and by higher taxes, duties and contributions.

Depreciation and Amortization

Depreciation and amortization expenses increased by 21.5% to Ps. 478.1 million for 2009 from Ps. 393.4  million reported in 2008.

PRINTING AND PUBLISHING

Net Sales

Net sales increased by 5.2% to Ps.1,598.6 million in 2009, compared to Ps. 1,519.9 million in 2008. This was the result of higher sales in circulation, in Papel Prensa and CIMECO and partially offset by lower sales in advertising and printing services.

Cost of Sales(Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 6.5% to Ps. 857.2 million in 2009, compared to Ps. 805.2 million in 2008. The increase was mainly the result of higher salaries and social security expenses and partially offset by lower paper consumption.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 12.7% to Ps.     444.9 million in 2009, compared to the Ps. 394.7 million reported for 2008. This was primarily the result of an increase in salaries, social security charges and allowances for doubtful accounts accrued related to advertising and was partially offset by lower marketing expenses.

Depreciation and Amortization

Depreciation and amortization expenses increased by 19.5% to Ps. 72.4 million in 2009 compared to Ps.      60.6 million in 2008.

BROADCASTING AND PROGRAMMING

Net Sales

Net sales increased by 5.8% to Ps. 1,097.5 million in 2009, compared to Ps. 1,037.6 million in 2008. The increase was primarily the result of higher advertising sales mainly due to elections-related spending. It was also driven by increases in the pricing of cable signals, attributable to contract formulas that link pricing to increases in the monthly fees and, to a lesser extent, to additional sales from the car racing business and the Pol-ka consolidation.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) increased by 0.8% to Ps. 695.3 million in 2009, compared to Ps. 689.5 million in 2008. This is attributable to increases in salaries, the consolidation of Pol-ka, and was offset by lower sports programming production due to the unilateral contract rescission by AFA, lower co-production and events costs.

Selling and Administrative Expenses(Excluding Depreciation and Amortization)

Selling and administrative expenses (excluding depreciation and amortization) increased by 26.6% to Ps.     239.9 million in 2009, compared to Ps. 189.5 million in 2008. The increase was primarily the result of higher salaries, fees for services, marketing expenses, the consolidation of Pol-ka and allowances for doubtful accounts accrued related to advertising.

Depreciation and Amortization

Depreciation and amortization expenses increased by 80.3% to Ps. 42.7 million in 2009 compared to Ps.     23.7 million reported in 2008.

DIGITAL CONTENT AND OTHERS

Net sales in this segment are derived from administrative and corporate services rendered by the Company and by our subsidiary GC Gestión Compartida S.A. to third parties as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Additionally, this segment includes the production of digital content. Net sales to third parties are largely derived from advertising in our web pages and portals. Cost of sales (excluding depreciation and amortization) is driven mainly by salaries and professional fees paid to advisers. 

In this period, net sales increased 15.9% to 192.3, and EBITDA resulted in Ps. 9.1 million in comparison with the Ps. 0.5 million reported for 2008. The increase in EBITDA was mainly attributable to higher fees and sales and lower severance payments.

OPERATING STATISTICS BY BUSINESS SEGMENT

CABLE TV AND INTERNET ACCESS

⁽¹⁾ Figures in thousands

⁽²⁾ Net Sales/ Average Pay TV Subscribers

⁽³⁾ Total subscribers consolidated following the same consolidation methods used in the financial statements as of each year end.

⁽⁴⁾ Total subscribers considering the equity share in each subsidiary.

PRINTING AND PUBLISHING

⁽¹⁾ Average number of copies according to IVC (including Diario Clarín and Olé)

⁽²⁾ Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Company estimates.

BROADCASTING AND PROGRAMMING

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

 ⁽²⁾ Share of broadcast TV audience according to IBOPE for AMBA. PrimeTime 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 CONTENT AND OTHERS

⁽¹⁾In millions. Average. Source IAB

DEBT AND LIQUIDITY

* Does not include Reserve Accounts amounting to 54.8 MM ARS as of December 31^st, 2009.

Negotiable obligations include Cablevisión USD 100.0 MM notes due October 2012; Cablevisión USD 235.1 MM notes due October 2015, Multicanal USD 100.4 MM notes due July 2013, Multicanal USD 80.3 MM notes due July 2016 and AGEA Ps.  150.0 MM notes due 2011.

Total Financial Debt⁽¹⁾ and Net Debt, decreased from Ps. 3,067.9 million to Ps. 2,612.9  million and decreased from Ps. 2,600.3 million to 2,153.4  Ps. million. This represents a decrease of  (14.8%) in the Total Debt and a decrease of  (17.2%) in the Net Debt. 

Debt coverage ratio ⁽¹⁾ as of December 31, 2009 was 1.1x in the case of Net Debt and of 1.3x in terms of Total Financial Debt.

⁽¹⁾ Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest. Debt Coverage Ratio is defined as Total Financial Debt minus Cash and Equivalents divided by Adjusted EBITDA (last 12 months). Does not include Reserve Accounts amounting to  54.8 MM ARS as of December 31^st, 2009.

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.

CONFERENCE CALL AND WEBCAST INFORMATION

Grupo Clarín will host a conference call and webcast to discuss its Fourth Quarter and Full Year Results for 2009, on Thursday, March 11, 2009

Presentations by: Alejandro Urricelqui, Chief Financial Officer; Alfredo Marin, Investor Relations Officer

Time: 12.00 pm Buenos Aires Time/3:00 pm London Time/10:00 am New York Time

To access the conference call, please dial: from within Argentina + 0 800 333 0050; from within the United Kingdom +44 (800) 092 3582; from within the United States +1 (800) 311 9401; and from all other countries +1 (334) 323 7224. The Conference ID is #6118.

To access the simultaneous webcast presentation, please direct your browser to:

http://www.grupoclarin.com/ir 

There will be a 60 day replay available starting one hour after the conclusion of the conference call.  To access the replay, please dial +1 (877) 919-4059 toll free from the U.S., or +1 (334) 323-7226 from anywhere outside the U.S. The replay passcode is: 70351568. 

The PDF version of the webcast presentation will be available at http://www.grupoclarin.com.ar/ir  prior to the call, on March 11, and archived in our Website after its conclusion.

ABOUT THE COMPANY

Grupo Clarín is the largest media company in Argentina and the market leader in the Cable Television and Internet Access, Printing and Publishing, and Broadcasting and Programming segments. It's Cable Television network is one of the largest in Latin America, with one of the largest broadband subscriber base in Argentina. Its flagship newspaper -Diario Clarín- is the highest circulation newspaper in Latin. 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.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2009 and 2008

In Argentine Pesos (Ps.)

CONSOLIDATED STATEMENTS OF OPERATIONS

As of December 31, 2009 and 2008

In Argentine Pesos (Ps.)

⁽¹⁾ Chargeable to:

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of December 31^th, 2009, available at http://www.grupoclarin.com/ir

CONSOLIDATED STATEMENTS OF CASH FLOWs

As of December 31, 2009 and 2008

In Argentine Pesos (Ps.)

CONSOLIDATED STATEMENTS OF CASH FLOWs

As of December 31, 2009 and 2008

In Argentine Pesos (Ps.)

⁽¹⁾ Includes: