Grupo Clarin Announces Results for the First Quarter of 2008

Grupo Clarin Announces Results for the First Quarter of 2008

BUENOS AIRES, Argentina, May 12 /PRNewswire-FirstCall/ -- Grupo Clarin S.A. ("Grupo Clarin" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its First Quarter 2008 results. Figures in this report have been derived from the Company's consolidated unaudited financial statements as of and for the three months ended March 31, 2008, which have been prepared in accordance with Argentine GAAP and are stated in Argentine Pesos, unless otherwise indicated.

Highlights (1Q07 vs. 1Q08):
-- Net Sales totaled Ps. 1,195.7 million, an increase of 31.8% from 1Q07,
reflecting subscriber and ARPU growth in the Cable TV & Internet
segment, and higher advertising sales and, to a lesser extent, higher
advertising and programming sales in the Broadcasting and Programming
segment.
-- Adjusted EBITDA(1) totaled Ps. 352.5 million, an increase of 25.8%,
driven by higher sales in the Cable and Internet access, Printing and
Publishing and Broadcasting and Programming segments.
-- As a result, Grupo Clarin's Adjusted EBITDA Margin(2) was 29.5% for
1Q08, compared to 30.9% in 1Q07, mainly due to a decrease in the margin
of the Printing and Publishing segment.
-- Net Income totaled Ps. 79.9 million, compared to Ps. 26.0 million in
1Q07.

Comments from the Vice Chairman of Grupo Clarin:

Mr. Jose A. Aranda, Vice Chairman of Grupo Clarin, stated, "We are pleased to report Grupo Clarin's earnings results for the First Quarter of 2008. We continue to consolidate our position within our business segments, extending our footprint in the interior of the country and following our growth strategy in broadband, digital cable TV and communications, as we improve the results of our businesses, thus generating value for our shareholders."

FINANCIAL HIGHLIGHTS

(In millions of Ps.) 1Q08 1Q07 % Var. 1Q08 4Q07 % Var.
Net Sales 1,195.7 907.3 31.8% 1,195.7 1,266.2 -5.6%
Adjusted
EBITDA (1)(3) 352.5 280.3 25.8% 352.5 398.7 -11.6%
Adjusted EBITDA
Margin % (2) 29.5% 30.9% -4.5% 29.5% 31.5% -6.4%
Net Income 79.9 26.0 207.5% 79.9 86.7 -7.8%

(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.

(3) Adjusted EBITDA includes a onetime event charge of Ps. 6.6 million related to the implementation costs of the Long Term Savings Plan (PALP)

CONFERENCE CALL AND WEBCAST INFORMATION

Grupo Clarin will host a conference call and webcast to discuss its first quarter results for 2008, on Monday, May 12, 2008, at 12:00 Buenos Aires / 4pm London / 11am New York

Presentations by Alejandro Urricelqui, Chief Financial Officer and Alfredo Marin, Investor Relations Officer, will be in English, based on the earnings release.

To access the conference call, please dial: +44 (800) 092 3582 toll free from the U.K., +1 (800) 311 9401 toll free from the U.S., +0 800 333-0050 from Argentina, or +1 (334) 323 7224 from all other countries, 5-10 minutes prior to the start time. The Conference ID is #6118.

To access the simultaneous webcast presentation, please go to: http://www.grupoclarin.com.ar/ir

A replay of the conference call will be available one hour after its conclusion, and will remain available for one week. 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: 39028197. The webcast presentation will be archived at http://www.grupoclarin.com.ar/ir

ABOUT THE COMPANY

Grupo Clarin 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. Its cable television network is the largest in Latin America, with the largest broadband subscriber base in Argentina. Its flagship newspaper -- Diario Clarin -- is the highest circulation newspaper in Latin America and the second-highest circulation Spanish-language newspaper in the world. Grupo Clarin 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 income, geography and age.

Disclaimer

Certain information included in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarin. 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 Clarin does not undertake or intend to 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 Clarin's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarin's competitive environment, risks associated with operating in Argentina, rapid technological and market change, and other factors specifically related to Grupo Clarin and its operations.

A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION AND COMPLETE FINANCIAL STATEMENTS CAN BE OBTAINED FROM http://www.grupoclarin.com/IR OR BY CONTACTING:

Investor Relations Contacts
In Buenos Aires:
Alfredo Marin / M. Julia Diaz Ardaya / Alejandro Yu
Grupo Clarin
Email: investors@grupoclarin.com

In London:
Tom Allison / Alex Money / Lorna Ellen
Temple Bar Advisory Ltd.
Tel: +44 20 7002 1080
E-mail: info@templebaradvisory.com

In New York:
Melanie Carpenter / Peter Majeski
I-advize Corporate Communications
Tel: +1 212 406 3692
Email: clarin@i-advize.com

First Call Analyst:
FCMN Contact:

Source: Grupo Clarin S.A.

CONTACT: In Buenos Aires: Alfredo Marin, M. Julia Diaz Ardaya, or
Alejandro Yu, all of Grupo Clarin, investors@grupoclarin.com; in London: Tom
Allison, Alex Money or Lorna Ellen, all of Temple Bar Advisory Ltd.,
+44-20-7002-1080, info@templebaradvisory.com, for Grupo Clarin; in New York:
Melanie Carpenter or Peter Majeski, both of I-advize Corporate Communications,
+1-212-406-3692, clarin@i-advize.com, for Grupo Clarin

Web site:

http://www.grupoclarin.com/

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