Grupo Clarin Announces Its Results for the Third Quarter and First Nine Months of 2008

Grupo Clarin Announces Its Results for the Third Quarter and First Nine Months of 2008

BUENOS AIRES, Argentina, Nov. 7 /PRNewswire/ -- Grupo Clarin S.A. ("Grupo Clarin" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its results for the third quarter and the first nine months of 2008. Figures in this report have been prepared in accordance with Argentine GAAP as of September 30, 2008 and are stated in Argentine Pesos, unless otherwise indicated.

Highlights (9M08 vs. 9M07):

-- Net Sales totaled Ps. 4,110.8 million, an increase of 31.9% from 9M07, mainly due to subscriber and ARPU growth in the Cable TV and Internet segment and, to a lesser extent, to higher advertising sales in Printing and Publishing, and higher advertising and programming sales in the Broadcasting and Programming segment.

-- Adjusted EBITDA(1) reached Ps. 1,216.5 million, an increase of 27.8% from 9M07, driven by higher sales in the Cable and Internet, Printing and Publishing and Broadcasting and Programming segments.

-- Grupo Clarin's Adjusted EBITDA Margin (2) was 29.6% for 9M08, compared to 30.5% in 9M07.

-- Net Income totaled Ps. 276.9 million, an increase of 125.4% from Ps. 122.8 million reported in 9M07.

Comments from the Vice Chairman of Grupo Clarin:

Mr. Jose A. Aranda, Vice Chairman of Grupo Clarin, stated, "I am pleased to report Grupo Clarin's results for the third quarter of 2008. In the midst of a challenging environment, our Company continues to show a good performance, especially in the Cable TV and Internet access segment. The diversity of our products and the strength of our market position, along with the proven ability of the management team, reaffirm my confidence in our capacity to conduct our strategy and to consolidate the Company's leadership in its core businesses."

FINANCIAL HIGHLIGHTS

(In millions of Ps.) 9M08 9M07 % Var. 3Q08 3Q07 % Var.

Net Sales 4,110.8 3,117.5 31.9% 1,506.0 1,152.7 30.7%
Adjusted EBITDA(1) 1,216.5 952.1 27.8% 451.8 335.5 34.7%
Adjusted EBITDA
Margin %(2) 29.6% 30.5% -3.1% 30.0% 29.1% 3.1%
Net Income 276.9 122.8 125.4% 60.1 19.3 210.7%

(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.

CONFERENCE CALL AND WEBCAST INFORMATION

Grupo Clarin will host a conference call and webcast to discuss its third quarter and nine month results for 2008, on Friday, November 7, 2008.

Time: 2:00 pm Buenos Aires Time/4:00 pm London Time/11:00 am New York Time

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

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 pass code is: 6118

To access the simultaneous webcast presentation, please direct your browser to: http://www.grupoclarin.com.ar/ir . The slides-only presentation will be available in the Investor Kit section of the Website prior to the call.

A replay of the conference call will be available one hour after its conclusion, and will remain available for two months. To access the replay, please dial: from within the U.S. + 1 (877) 919 4059 or from anywhere outside the U.S. +1 (334) 323 7226. The pass code is: 36946714. 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. It's 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 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 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 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 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:
Alex Money, Lorna Ellen
Temple Bar Advisory Ltd.
Tel: +44 20 7002 1080
E-mail: info@templebaradvisory.com

In New York:
Melanie Carpenter, Pete Majeski
I-advize Corporate Communications
Tel: +1 212 406 3692
E-mail: clarin@i-advize.com

Source: Grupo Clarin S.A.

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

Web site: http://www.grupoclarin.com/
http://www.grupoclarin.com.ar/ir

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