Grupo Clarín cashes in on pay-TV

DetailsJuan Fernandez Gonzalez | 18 March 2015

Due to increases in both subscribers and the cost of its pay-TV and Internet packages on Cablevisión, Fibertel and FiberCorp, Argentina's Grupo Clarín has invoiced over $1.6 billion through its TV and Internet business, representing over 70% of the entire income of the media group.

According to the company's 2014 results, its pay-TV business income had grown 45.9% by December 2014, becoming the strongest revenue generator for Clarín. Indeed, pay-TV drew 1.2 billion out of the 2.2 billion invoiced by the company in the whole year.

Regarding EBITDA, which usually gives a better picture of the profits inside the country, without taking into account currency issues, pay-TV showed 64.7% growth, reaching $533 million out of Clarín's total $571 million EBITDA. These figures are much greater than in 2013, when the company reported an EBITDA of $91 million.

According to Clarín, such growth in pay-TV is due to the rise in subscriptions and the higher costs of its services. As of December 2014, Cablevisión had 3.5 million cable subscribers, 1.4 million of which paid for digital TV. The company closed 2014 reaching 7.5 million Argentinean homes with its cable network.