FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the Month of ~~August~~May, ~~2005~~2006 Commission File Number: 000-33143

CLAXSON INTERACTIVE GROUP INC.

(Translation of Registrant’s Name into English)

Avenida Melian 2752, C1430EYH, Buenos Aires, Argentina

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___.

CLAXSON INTERACTIVE GROUP INC.
Form 6-K

TABLE OF CONTENTS

Item		Page
Item 1.	Press Release Announcing Claxson Interactive Group Inc.’s Fiscal ~~2005~~2006 ~~Second~~First Quarter Financial Results		3
Signatures			10

2 ~~Item 1. Press Release Announcing Claxson Interactive Group Inc.’s Fiscal 2005 Second Quarter Financial Results~~


Item 1.		Press Release Announcing Claxson Interactive Group Inc.’s Fiscal 2005 First Quarter Financial Results

FOR IMMEDIATE RELEASE

CLAXSON REPORTS ~~2005~~2006 ~~SECOND~~FIRST QUARTER FINANCIAL RESULTS

The Company ~~reports~~shows ~~solid~~improved ~~operating~~results ~~income growth~~ in ~~second~~Pay ~~quarter~~TV and Broadcast businesses

Buenos Aires, ~~August~~May 2219, ~~2005~~2006 — Claxson Interactive Group Inc. (XSONF.OB; “Claxson” or the “Company”), today announced ~~financial~~ results for the three ~~and six~~-month ~~periods~~period ended ~~June~~March 3031, ~~2005.~~ 2006. As previously announced, the Company finalized the sale of its TV Broadcast operation Chilevision on April 18. In addition, on May 6, Claxson completed the sale of the language localization operations of The Kitchen. In accordance with applicable accounting principles, the assets, liabilities and operations of Chilevision and the language localization operations of The Kitchen are reflected as assets and liabilities held for sale in the balance sheet and as discontinued operations in the statement of operations of the Company until the time of their sale.

Financial Highlights

~~Second~~Net ~~Quarter~~revenue for the first quarter of 2006 was $19.6 million, a 10% increase from net revenue of $17.8 million for the first quarter of 2005, reflecting the improved performance of Pay TV and Broadcast Radio. Operating expense for the three months ended March 31, 2006 was $14.8 million, compared to $14.9 million in the first quarter of 2005. Operating income for the three-month period ended March 31, 2006 was $4.8 million, compared to $2.9 million for the three month period ended March 31, 2005. Foreign exchange loss for the three-month period ended March 31, 2006 was $0.3 million compared to a foreign exchange gain of $0.6 million in the same period of 2005. Net income from continuing operations for the three months ended March 31, 2006 was $3.1 million ($0.15 per common and $0.14 per diluted share), compared to $2.3 million ($0.11 per common and diluted share) for the same period in 2005. Net income for the three months ended March 31, 2006 was $3.1 million ($0.15 per common and $0.14 per diluted share), compared to $1.4 million ($0.07 per common and diluted share) for the same period in 2005.

~~Net~~During ~~revenue for~~ the ~~second~~first quarter of ~~2005 was $19.1 million~~2006, ~~a 23% increase from net revenue of $15.5 million for~~ the ~~second~~average quarter of 2004. Operating expense for the three months ended June 30, 2005 was $15.4 million, a 23% increase from the $12.5 million for the second quarter of 2004. Operating income increased to $3.7 million for the three-month period ended June 30, 2005 from $3.0 million for the three-month period ended June 30, 2004. Foreign currency exchange ~~gain~~rate ~~for the three-month period ended June 30, 2005 was $0.5 million, a total $1.8 million positive effect compared to the $1.3 million loss in the same period~~ of ~~2004. Net income from continuing operations for~~ the ~~three~~Argentine ~~months ended June 30, 2005 was $2.8 million ($0.14 per basic~~ and ~~$0.13~~Chilean ~~per~~currencies ~~diluted share),~~ compared to ~~$1.3 million ($0.07 per basic and diluted share) for~~ the ~~same period in 2004~~U. ~~Net income for the three months ended June 30, 2005 was $1~~S.~~2 million~~ ~~($0.06~~dollar ~~per~~depreciated ~~basic~~5% and ~~$0.05~~ ~~per~~appreciated ~~diluted~~9%, ~~share)~~respectively, ~~compared~~versus ~~to $2.3 million ($0.10 per basic and $0.11 per diluted share) for~~ the same period in ~~2004~~2005.

~~During the second quarter of 2005, the average exchange rate of the Argentine and Chilean~~Continued ~~currencies compared to the U.S. dollar remained unchanged and appreciated 8%, respectively, versus the same period in 2004.~~

Claxson Reports 2006 First ~~Six~~Quarter ~~Months~~Results ofPage ~~2005~~2

Net revenue for the six-month period ended June 30, 2005 was $36.9 million, a 21% increase compared to $30.6 million for same period in 2004. Operating expense for the six-month period ended June 30, 2005 was $30.3 million, an 11% increase compared to $27.3 million in the same period of 2004. Operating income was $6.6 million for the six-month period ended June 30, 2005 compared to $3.3 million for the same period in 2004. Foreign currency exchange gain for the six-month period ended June 30, 2005 was $1.1 million, a total $1.4 million positive effect

compared to the $0.3 million loss in the same period of 2004. Net income from continuing operations for the six-month period ended June 30, 2005 was $5.1 million ($0.25 per basic and $0.23 per diluted share), compared to $2.4 million ($0.12 per basic and diluted share) for the same period in 2004. Net income for the six-month period ended June 30, 2005 was $2.6 million ($0.13 per basic and $0.12 per diluted share), compared to $2.5 million ($0.13 per basic and $0.12 per diluted share) for the same period in 2004.

During the six-month period ended June 30, 2005, the average exchange rate of the Argentine and Chilean currencies compared to the U.S. dollar remained unchanged and appreciated 5%, respectively, versus the same period in 2004.

CLAXSON
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS — INFORMATION BY SEGMENT
(In Thousands of U.S. dollars)

			Operating									Consolidated
			expenses									Operating
	Net		(before depr.			Depreciation			Total			Income
	Revenues		and amort.)			& amortization			expenses			(loss)
For the Three Months Ended June 30,
For the Three Months Ended March 31,
2006
Pay TV	$	13,478	$	(9,069	)	$	(432	)	$	(9,501	)	$	3,977
Broadcast Radio		5,985		(3,534	)		(460	)		(3,994	)		1,991
Broadband & Internet		48		(232	)		—			(232	)		(184	)
Corporate		72		(1,092	)		—			(1,092	)		(1,020	)
Total	$	19,583	$	(13,927	)	$	(892	)	$	(14,819	)	$	4,764
2005
Pay TV	$	1312,~~975~~299	$	(9,~~976~~170	)	$	~~453~~(551	)	$	10(9,~~429~~721	)	$	32,~~546~~578
Broadcast		5,009		3,304			453			3,757			1,252
Broadcast Radio		5,379		(3,418	)		(469	)		(3,887	)		1,492
Internet & Broadband		31		218			—			218			(187	)
Broadband & Internet		29		(227	)		—			(227	)		(198	)
Corporate		72		(1,~~027~~029	)		—			(1,~~027~~029	)		(~~955~~957	)
Total	$	1917,~~087~~779	$	14(13,~~525~~844	)	$	~~906~~(1,020	)	$	15(14,~~431~~864	)	$	32,~~656~~915
2004
Pay TV	$	11,768	$	8,143		$	679		$	8,822		$	2,946
Broadcast		3,692		2,457			388			2,845			847
Internet & Broadband		31		279			7			286			(255	)
Corporate		—		578			—			578			(578	)
Total	$	15,491	$	11,457		$	1,074		$	12,531		$	2,960

			Operating						Consolidated
			expenses						Operating
	Net		(before depr.		Depreciation		Total		Income
	Revenues		and amort.)		& amortization		expenses		(loss)
For the Six Months Ended June 30,
2005
Pay TV	$	26,274	$	19,146	$	1,004	$	20,150	$	6,124
Broadcast		10,388		6,722		922		7,644		2,744
Internet & Broadband		60		445		—		445		(385	)
Corporate		144		2,056		—		2,056		(1,912	)
Total	$	36,866	$	28,369	$	1,926	$	30,295	$	6,571
2004
Pay TV	$	22,607	$	17,318	$	1,520	$	18,838	$	3,769
Broadcast		7,924		5,151		818		5,969		1,955
Internet & Broadband		57		540		7		547		(490	)
Corporate		—		1,904		—		1,904		(1,904	)
Total	$	30,588	$	24,913	$	2,345	$	27,258	$	3,330

“We are very pleased with the overall results of the first three months of 2006. The last few periods, we have seen a consistent growth in our consolidated net revenues,” said Roberto Vivo, Chairman and CEO. “particularly in the broadcasting and pay TV units.”

“We are very pleased with the overall results of the second quarter and first six months of 2005. We have seen a consistent growth in our consolidated net revenues which resulted in significant improvements in operating income,” said Roberto Vivo, Chairman

and CEO. “These results and the performance of the management team make me confident that we are well prepared to face the challenges ahead”.

PAY TV

Net revenue for the ~~second~~first quarter of ~~2005~~2006 was $1413.05 million, a 1910% increase from net revenue of $1112.83 million for the ~~second~~first quarter of ~~2004~~2005. The increase in net revenue is principally attributable to anincreased ~~increase~~advertising insales ~~subscriber-based fees~~ and ~~advertising.~~other ~~Net revenue for the six-month period ended June 30~~revenues, ~~2005~~mainly ~~was~~production ~~$26.3 million~~services ~~compared to $22.6 million for the same~~and ~~period~~programming ofsales ~~2004.~~to ~~The~~third ~~increase~~parties, isand ~~primarily~~to a ~~result~~lesser ofextent ~~increase~~ subscriber-based fees ~~and advertising revenues~~.

Operating expense (excluding depreciation and amortization) for the ~~second~~first quarter of ~~2005~~2006 was ~~$10.0 million~~ ~~compared to~~ $89.1 ~~million for the same period in 2004. The increase is principally~~ ~~attributable to increased programming and production costs as a result of additional investment in programming~~million, ~~as well as increased sales expenses related to the increase in revenues. Operating expense for the six-month period ended June 30, 2005 was $19.1 million~~ compared to $179.32 million for the ~~same~~comparable period of ~~2004~~2005.

Operating income for the ~~second~~first quarter of ~~2005~~2006 was $34.50 million compared to ~~an operating income of~~ $2.96 million for the same period in ~~2004. Operating income for the six-month period ended June 30,~~ 2005 ~~was $6~~.~~1 million compared to $3.8 million for the same period of 2004.~~

As of ~~June~~March 3031, ~~2005~~2006, the Company’s owned basic and premium channels reached 47approximately 50.3 6 million aggregate subscribers, a 17% growth compared to its subscriber base as of ~~June~~March 3031, ~~2004~~2005. Infinito, ~~FTV~~HTV and ~~Retro~~FTV were the Company’s ~~owned~~ channels that reported the strongest growth compared to the same period in 2005.

BROADCAST RADIO

Net revenue for the ~~second~~first quarter of ~~2005~~2006 was $56.0 million, aan 3611% increase from net revenue of $35.74 million for the ~~second~~first quarter of ~~2004~~2005. The increase is ~~primarily~~ attributable to ~~improved~~the increase in audience share in Chile with a corresponding increase in advertising revenues, as well as ana 89% appreciation in the Chilean peso as compared to ~~2004. Net revenue for the six-month period ended June 30,~~ 2005 ~~was $10~~.4 million compared to $7.9 million for the same period of 2004. This increase is primarily a result of the increased audience share in Chile as well as a general improvement of the operations of Sarandi in Uruguay.

Operating expense (excluding depreciation and amortization) for the ~~second~~first quarter of ~~2005~~2006 was $3.35 million compared to $23.54 million for the same period in ~~2004~~2005. The increase is principally due to ~~the~~ the appreciation of the Chilean peso, ~~and~~partially ~~the~~offset ~~development~~by ofreduced ~~the~~corporate ~~new businesses~~ and ~~increased sales and~~administration ~~marketing~~ expenses. Operating expense for the six-month period ended June 30, 2005 was $6.7 million compared to $5.2 million for the same period of 2004. As was the case in the second quarter, this increase is explained by the appreciation of the Chilean Peso and the increase in production and sales expenditures.

Operating income for the ~~second~~first quarter of ~~2005~~2006 was $12.30 million compared to $01.95 million for the same period in ~~2004. Operating income for the six-month period ended June 30,~~ 2005 ~~was $2~~.~~7 million compared to $2.0 million for the same period of 2004.~~

~~During~~Claxson ~~the~~Reports ~~second~~2006 ~~quarter~~First ofQuarter ~~2005,~~Results ~~Ibero~~Page ~~American Radio Chile’s average audience share was 38%, compared to 35% for the same period in 2004.~~3

5IberoAmerican Radio Chile’s average audience share in the first quarter of 2006 was 40.1% compared to 39.3% for the same period of 2005.

BROADBAND & INTERNET

Net revenue for the ~~second~~first ~~quarters~~quarter of ~~both~~2006 ~~2005 and 2004~~ was $3148,000. ~~Net revenue for the six-month period ended June 30, 2005 was $60,000~~ compared to $5729,000 for the same period ~~of 2004~~in 2005.

Operating expense (excluding depreciation and amortization) ~~for~~remained ~~the~~constant ~~second~~at ~~quarter of 2005 was~~ $0.2 ~~million compared to $0.3~~ million ~~for the same period in 2004~~. ~~Operating expense for the six-month period ended June 30, 2005 was $0.5 million compared to $0.5 million for the same period of 2004.~~

Operating loss for the ~~second~~first quarter of ~~2005~~2006 was $0.2 million ~~compared to a $0.3 million loss for the same period in 2004. Operating income for the six-month period ended June 30~~, ~~2005~~unchanged ~~was~~when ~~$0.4 million~~ compared to ~~$0.5 million for~~ the same period ofin ~~2004~~2005.

~~Liquidity~~Statement of Cash Flows

As of ~~June~~March 3031, ~~2005~~2006, Claxson had cash and cash equivalents of $2125.17 million and financial debt of $8268.14 million ~~in debt,~~including ~~which~~principal ~~includes~~and ~~$14.8 million~~accrued inbut ~~future~~unpaid interest. Future interest payments on the Company’s 8.75% Senior Notes due in 2010~~. For the six-month period ended June 30~~, ~~2005,~~totaling ~~Claxson operating activities generated cash flows of~~ $611.82 million ~~compared~~as ~~to $0.9 million for the same period~~ of 2004. The difference is primarily due to the improved operating results. Cash generated from operating activities was primarily used for the payment of debt obligations and for capital expenditures. In addition, during the second quarter Claxson received $11.1March ~~million~~31, ~~net of transaction expenses paid~~2006, ~~from the~~are ~~sale of assets (primarily Chilevision) and an additional $1.0 million in restricted funds that~~recorded ~~serve~~ as afinancial ~~holdback for potential indemnification payable on the first anniversary of the closing~~debt. ~~As part of the terms of the Chilevision sale, we retained approximately $5.9 million of Chilevision’s account receivable which are being collected as expected.~~

During the first quarter of 2006 Claxson operating activities generated cash flow of $3.3 million compared to $2.4 million for the same period of 2005. The difference is primarily due to improved operating results, partially offset by increased investment in working capital in 2006, primarily as a result of the decrease in liabilities. Cash generated from operating activities was primarily used for the payment of debt obligations and for capital expenditures.

About Claxson

Claxson (XSONF.OB) is a multimedia company providing branded entertainment content targeted to Spanish and Portuguese speakers around the world. Claxson has a portfolio of popular entertainment brands that are distributed over multiple platforms through its assets in pay television, radio and the Internet. Headquartered in Buenos Aires, Argentina, and Miami, Florida, Claxson has a presence in the United States and all key Ibero-American countries, including without limitation, Argentina, Mexico, Chile, Brazil, Spain and Portugal. Claxson’s principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst Inc.

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Claxson’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed discussion of these factors and other cautionary statements, please refer to Claxson’s annual report on Form 20F filed with the U.S. Securities and Exchange Commission on July 15, 2005.

# # #

Contacts:
Press		Investors
Juan Iramain		Jose Antonio Ituarte
VP, Communications		Chief Financial Officer
Claxson		Claxson
011-5411-4339-3701		011-5411-4339-3700

Contacts:


Press		Investors
Juan Iramain		Jose Antonio Ituarte
VP, Communications		Chief Financial Officer
Claxson		Claxson
011-5411-4339-3701		011-5411-4339-3700


Claxson Reports 2006 First Quarter Results		Page 4

— Financial Tables Attached —

6CLAXSON UNAUDITED BALANCE SHEETS (In Thousands of U.S. dollars)

CLAXSON


	As of		As of
	March 31,		December 31,
	2006		2005
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	25,702	$	25,126
Accounts receivable, net		23,923		23,527
Other current assets		5,431		7,157


Total current assets		55,056		55,810

PROPERTY AND EQUIPMENT, net		10,174		10,583

PROGRAMMING RIGHTS, net		4,399		4,413

INVESTMENTS IN UNCONSOLIDATED AFFILIATES		2,432		2,405

GOODWILL		52,472		53,164

BROADCAST LICENSES, net		16,084		16,841

OTHER ASSETS		8,476		8,404


TOTAL ASSETS	$	149,093	$	151,620


LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable, accrued and other liabilities	$	27,139	$	28,319
Current portion of programming rights obligations		3,421		4,688
Current portion of long-term debt		14,949		14,722

Total current liabilities		45,509		47,729

LONG-TERM LIABILITIES:
Long-term debt, net of current portion		64,713		67,057
Other long-term liabilities		2,846		3,103

Total long-term liabilities		67,559		70,160

MINORITY INTEREST		317		311

SHAREHOLDERS’ EQUITY		35,708		33,420


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	149,093	$	151,620

~~UNAUDITED~~Claxson ~~BALANCE~~Reports ~~SHEETS (In~~2006 ~~Thousands~~First ofQuarter ~~U.S.~~Results ~~dollars)~~ Page 5

	As of		As of
	June 30,		December 31,
	2005		2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	21,065	$	7,270
Accounts receivable, net		20,577		23,018
Assets held for sale		—		25,599
Other current assets		5,895		8,698
Restricted investments		1,009		—
Total current assets		48,546		64,585
PROPERTY AND EQUIPMENT, net		10,483		11,048
PROGRAMMING RIGHTS, net		4,437		4,028
INVESTMENTS IN UNCONSOLIDATED AFFILIATES		2,233		3,407
INVESTMENTS IN EQUITY SECURITIES		306		54
GOODWILL		50,110		51,021
BROADCAST LICENSES, net		15,506		16,722
OTHER ASSETS		7,365		5,650
TOTAL ASSETS	$	138,986	$	156,515
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable, accrued and other liabilities	$	23,654		24,444
Liabilities related to assets held for sale		—		14,927
Current portion of programming rights obligations		5,152		5,332
Current portion of long-term debt		9,053		8,172
Total current liabilities		37,859		52,875
LONG-TERM LIABILITIES:
Long-term debt, net of current portion		73,019		77,680
Other long-term liabilities		2,749		2,795
Total long-term liabilities		75,768		80,475
MINORITY INTEREST		334		562
SHAREHOLDERS’ EQUITY		25,025		22,603
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	138,986	$	156,515

CLAXSON
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of U.S. dollars, except per share data)

	Three Months Ended						~~Six Months Ended~~
	June 30,						June 30,
	March 31,
	2005			2004			2005			2004
	2006			2005
NET REVENUES:
Subscriber-based fees	$	1110,~~123~~927		$	910,~~928~~556		$	~~21,679~~		$	~~19,439~~
Advertising		67,~~839~~262			56,~~185~~166			~~13,005~~			~~10,397~~
Production services		~~374~~572			~~141~~277			~~651~~			~~246~~
Other		~~751~~822			~~237~~780			~~1,531~~			~~506~~
Total net revenues		19,~~087~~583			1517,~~491~~779			~~36,866~~			~~30,588~~
OPERATING EXPENSES:
Product, content and technology		(6,~~956~~605	)		(6,~~148~~942	)		~~13,898~~			~~12,212~~
Marketing and sales		(3,~~583~~699	)		2(3,~~092~~138	)		~~6,721~~			~~5,452~~
Corporate and administration		(3,~~986~~623	)		(3,~~217~~764	)		~~7,750~~			~~7,249~~
Depreciation and amortization		~~906~~(892	)		(1,~~074~~020	)		~~1,926~~			~~2,345~~
Total operating expenses		15(14,~~431~~819	)		12(14,~~531~~864	)		~~30,295~~			~~27,258~~
OPERATING INCOME		34,~~656~~764			2,~~960~~915			~~6,571~~			~~3,330~~
INTEREST EXPENSE		(~~337~~541	)		(~~475~~381	)		~~(718~~	)		~~(874~~	)
OTHER INCOME (EXPENSE), NET		315			(249	)		791			(58	)
OTHER INCOME, NET		355			476
FOREIGN CURRENCY EXCHANGE GAIN (LOSS)		486			(1,332	)		1,095			(343	)
FOREIGN CURRENCY EXCHANGE (LOSS) GAIN		(341	)		609
NET (LOSS) INCOME FROM UNCONSOLIDATED AFFILIATES		(1,041	)		679			(1,597	)		876
NET (LOSS) FROM UNCONSOLIDATED AFFILIATES		(451	)		(556	)
INCOME BEFORE INCOME TAXES , MINORITY INTEREST AND DISCONTINUED OPERATIONS		3,~~079~~786			13,~~583~~063			~~6,142~~			~~2,931~~
INCOME TAXES		(~~349~~693	)		(~~243~~941	)		~~(1,290~~	)		~~(521~~	)
MINORITY INTEREST		83(21	)		~~(24~~153	)		~~236~~			3
NET INCOME FROM CONTINUING OPERATIONS		23,~~813~~072			12,~~316~~275			~~5,088~~			~~2,413~~
DISCONTINUED OPERATIONS
(Loss) income from operations of discontinued divisions — net		(1,624	)		967			(2,458	)		51
(Loss) from operations of discontinued divisions — net		—			(834	)
(LOSS) GAIN ON DISCONTINUED OPERATIONS		(1,624	)		967			(2,458	)		51
(LOSS) ON DISCONTINUED OPERATIONS		—			(834	)
NET INCOME	$	13,~~189~~072		$	21,~~283~~441		$	~~2,630~~		$	~~2,464~~
NET INCOME PER COMMON SHARE:
Income from continuing operations
Basic	$	0.1415		$	0.0711		$	~~0.25~~		$	~~0.12~~
Diluted	$	0.1314		$	0.0711		$	~~0.23~~		$	~~0.12~~
(Loss) gain on discontinued operations
(Loss) on discontinued operations
Basic and diluted	$	~~(0.08~~—	)	$	(0.0504	)	$	~~(0.12~~	)	$	~~0.00~~
Diluted	$	(0.07	)	$	0.05		$	(0.11	)	$	0.00
NET INCOME PER SHARE:
NET INCOME PER SHARE:
Basic	$	0.15		$	0.07
Basic	$	0.06		$	0.12		$	0.13		$	0.13
Diluted	$	0.14		$	0.07
Diluted	$	0.05		$	0.11		$	0.12		$	0.12
NUMBER OF SHARES USED IN PER SHARE CALCULATIONS:
NUMBER OF SHARES USED IN PER SHARE CALCULATIONS:
Basic		20,486			20,318
Basic		20,399			19,476			20,358			19,451
Diluted		21,893			21,941
Diluted		21,907			19,910			21,873			19,909

8 Claxson Reports 2006 First Quarter Results Page 6

CLAXSON
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of U.S. dollars)

	Six Months Ended
	Three Months Ended
	June 30,
	March 31,
	2005				2004
	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	23,~~630~~072			$	21,~~464~~441
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of programming rights		~~1,468~~751				~~742~~776
Share-based compensation		2892				3314
Depreciation and amortization		~~1,926~~892				21,~~345~~020
Accrued and unpaid interest		(51	)			56
Accrued and (uncollected) unpaid interest		204				181
Exchange rate (gain)		(1,095	)			343
Exchange rate loss (gain)		341				(609	)
Net (gain) on disposal of assets		(1,207	)			(336	)
Net loss (gain) on disposal of assets		24				(506	)
(Income) loss from unconsolidated affiliates		1,597				(876	)
Income from unconsolidated affiliates and related transactions		451				556
Minority interest		~~(236~~21	)			(3153	)
Changes in operating assets and liabilities		1,732				(3,924	)
Changes in operating assets and liabilties		(2,501	)			(360	)
Net cash provided by operating activities		63,~~792~~347				~~844~~2,360
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment		(~~1,023~~444	)			(~~756~~289	)
Transaction costs paid		—				(1,152	)
(Investment in) distributions from unconsolidated affiliates, net		(310	)			(170	)
Distributions to minority owners of unconsolidated subsidiaries		—				(380	)
Proceeds from sale of investments in subsidiaries, equity securities and affiliates, net		(4	)			639
Investment in (distributions from) unconsolidated affiliates		(22	)			247
Net cash (used in) provided by investing activities		(758	)			180
Redemption of deposit for the sale of subsidiary		(506	)			—
Restricted cash received from sale of subsidiary		1,000				—
Restricted cash released in guarantee of Chilean syndicated loan		—				907
Proceeds from sale of investments in subsidiaries and affiliates		11,088				625
Net cash provided by (used in) investing activities		10,537				(509	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of short/long-term debt		(31,~~627~~954	)			(2,~~638~~120	)
Proceeds from exercised stock options		114				52
Proceeds from excercised stock options		—				26
Net cash (used in) financing activities		(31,~~513~~954	)			(2,~~586~~094	)
EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH AND CASH EQUIVALENTS		(2159	)			~~(46~~—	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		13,795				(2,297	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		576				446
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		7,270				7,677
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		25,126				7,270
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2125,~~065~~702			$	57,~~380~~716

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CLAXSON INTERACTIVE GROUP INC. (Registrant)
	CLAXSON INTERACTIVE GROUP INC.
Date: August 24, 2005	By:	/s/ Roberto Vivo-Chaneton
	(Registrant)
Date: June 12, 2006	By:	/s/ Roberto Vivo-Chaneton
		Name:	Roberto Vivo-Chaneton
		Title:	Chief Executive Officer

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