BUENOS AIRES (Dow Jones)–Argentine media conglomerate Grupo Clarin SA (GCLA.BA) saw its third quarter profit drop on the year despite a steep gain in sales as the cost of those sales rose sharply.
Third quarter profit totaled 123 million pesos ($29 million), down 8.2% on the year, the company reported Friday.
Net sales rose 25% to ARS2.5 billion, largely due to growth in the company’s internet segment, Clarin said.
The cost of sales during the first nine months of the year jumped 30% on the year to ARS3.4 billion «due to higher costs in our business segments, mainly in cable TV and internet access and in printing and publishing,» Clarin said. Quarterly figures weren’t provided.
Inflation is running at annual rate of well over 20% in Argentina, according to economists.
In the cable and Internet segment, Clarin’s sales during the quarter reached ARS1.5 billion, up 20% on the year. The gain was due mainly to more subscribers, Clarin said. Cable TV customers reached 3.5 million as of September 2011, up from 3.4 million a year earlier. Internet subscribers reached 1.3 million, up from 1.1 million.
The company’s net debt at the end of the quarter totaled ARS2.2 billion.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@dowjones.com
Source: http://online.wsj.com