Constantin Medien AG: 2018 sales and earnings within forecast
Constantin Medien: 2018 sales and earnings within forecast
- Group sales of EUR 119.1 million within forecast range of EUR 110 million to EUR 130 million
- EBITDA of EUR 1.3 million back in the black after EUR -0.6 million on a like-for-like basis* year-on-year
- EBIT of EUR -2.8 million shows considerable improvement on EUR -6.6 million on like-for-like basis* in 2017
- Group earnings attributable to shareholders of EUR -4.3 million within forecast and clearly improved on last year's figure on like-for-like basis* of EUR -11.1 million
- 2019 forecast assumes improved Group earnings attributable to shareholders
Ismaning, March 15, 2019 - The Constantin Medien Group has set the course for the future in 2018. The focus was on the Group's debt reduction through the complete repayment of the 2013/2018 corporate bond including interest in the total amount of EUR 69.5 million. Thus, after several years, the Group again has net liquidity instead of net debt. This created financial scope for important future investments in the past financial year, in particular to exploit the opportunities offered by the digital transformation and the rapidly changing behavior of media consumers. In particular the further expansion of the digital business models combined with the debt clearance - taking into account the comparable prior-year basis, i.e. without the contributions of the Highlight group included in the consolidated Group earnings up to June 12, 2017 and the non-recurring, non-cash deconsolidation gain of EUR 38.3 million - led to a marked improvement in key financial figures.
Key figures of the Group 2018
- Group sales fell to EUR 119.1 million (2017: EUR 263.8 million). On a like-for-like basis*, Group sales in 2017 amounted to EUR 139.3 million. Taking this into account, the 2018 Group sales fell 14.5 percent, especially because PLAZAMEDIA was unable to compensate for the Sky agreement which expired on June 30, 2017. Also down were TV advertising revenues at SPORT1, above all due to the loss of rights to the UEFA Europa League from the second half of 2018. Advertising revenues from digital products, on the other hand, developed positively, as did the consulting and third-party marketing activities.
- Profit from operations before depreciation/amortization (EBITDA) fell to EUR 1.3 million (2017: EUR 83.7 million). On a like-for-like basis* the 2017 EBITDA was EUR -0.6 million. Taking this into account, this figure saw a massive increase of 316.7 percent in 2018, moving from red into black.
- The profit from operations (EBIT) fell to EUR -2.8 million (2017: EUR 36.7 million). The previous year's result was influenced by a non-recurring, non-cash gain of EUR 38.3 million from the deconsolidation of Highlight Communications AG recorded in that year. On a like-for-like basis* the EUR -6.6 million profit from operations was up 57.6 percent, due especially to lower personnel and license costs and despite still high legal and consulting costs - including those in connection with enforcing claims against former executive bodies, which the company feels obliged to pursue.
- The financial result improved considerably to EUR -0.5 million (2017: EUR -5.3 million), especially as the previous year was still influenced by the interest charges for the 2013/2018 corporate bond repaid in April 2018. On a like-for-like basis* the 2017 financial result was EUR -3.9 million. Taking this into account, the development in 2018 equates to an improvement of 87.2 percent. A positive financial result is expected in future.
- The Group net result amounted to EUR -4.4 million, compared with EUR 28.8 million the year before. Earnings attributable to shareholders of Constantin Medien AG came to EUR -4.3 million (2017: EUR 27.8 million). On a like-for-like basis* the Group recorded an improvement of 61.3 percent (2017: EUR -11.1 million), even though PLAZAMEDIA GmbH's 2018 profit from operations fell by EUR 5.9 million due to the Sky agreement which expired on June 30, 2017, owing among other things to necessary restructuring measures.
Financial position of the Group as at December 31, 2018
The equity ratio (total equity relative to balance sheet total) was 66.1 percent as at December 31, 2018, compared with 35.9 percent a year earlier. The increased equity ratio is due to the sharp reduction in current liabilities. Net liquidity as at December 31, 2018 stood at EUR 12.4 million (2017: EUR -43.0 million). Following repayment of the corporate bond 2013/2018 and the receipt of cash inflow from the sale of Highlight Communications AG shares, as at December 31, 2018 the Constantin Medien Group can once again report net liquidity instead of net debt for the first time in several years. Also, as at this date, Constantin Medien AG holds some 6.18 million Highlight Communications AG shares with a market value of approx. EUR 31.3 million, as at this date.
Shareholder structure of the Group as at December 31, 2018
On February 13, 2018, the Highlight group increased its existing share of almost 30 percent in the Group to 78.38 percent in a public takeover bid and then to 79.18 percent by December 31, 2018. Another major shareholder is Cigogne UCITS with a 3.16 percent share of the basic capital. 17.66 percent of shares are in free float.Olaf G. Schröder, CEO: "We achieved some major milestones in the 2018 financial year. The positive trend becomes clear when you look at the actual operative business and the year-on-year comparison is adjusted for the pro rata profit contributions of Highlight Communications AG up to June 12, 2017 and the non-recurring deconsolidation gain of EUR 38.3 million. Thanks to the clear majority control in the shareholder structure of Constantin Medien AG, we can now go back to focusing on the strategic orientation of our Group and the operative business in the sports division, concentrating on the further acceleration of our digital strategy. An important component last year was the reorganization of PLAZAMEDIA, which saw us launch the most state-of-the-art IP-based broadcast center in Europe last summer. With the majority takeover of the full-service event and sports consulting agency Match IQ in August, we expanded our service range across the entire value chain in the Sports division. In January this year we launched eSPORTS1, the first eSports channel in Germany, Austria and Switzerland. Thanks to our SPORT1 platforms, our digital expertise and our service portfolio, we are superbly positioned in the sports media and sports event sectors."Performance of the Sports division
In 2018 the focus of SPORT1 as the leading 360 sports platform in the German-speaking region remained on strengthening its rights portfolio, optimizing existing digital offerings and marketing environments or creating new ones, as well as cross-platform utilization, networking and capitalization of content.
At EUR 119.1 million, sales in the Sports division were down on the previous year (2017: EUR 139.3 million), due especially to the loss of Sky sales at PLAZAMEDIA. TV advertising revenues also fell, notably due to the loss of UEFA Europa League rights from the second half of 2018. Advertising revenues from digital products, on the other hand, developed positively, as did the consulting and third-party marketing activities. Despite falling sales and the unplanned reorganization expenses at PLAZAMEDIA GmbH, the EBIT in the Sports division remained virtually constant at EUR 1.1 million (2017: EUR 1.9 million).
Outlook for the 2019 financial year
For 2019, Constantin Medien AG is expecting stable revenues at Group level compared with last year. This results from the expectation that sales increases in digital and at PLAZAMEDIA can largely compensate for the forecast drop in sales in TV. Sales in TV in 2019 will be influenced by the loss of UEFA Europa League rights as of the 2018/19 season and by the newly acquired rights to the DFB-Pokal (DFB Cup) from the second half of 2019 onwards. In almost all KPIs, the Constantin Medien Group expects considerably higher, positive figures year-on-year.
Based on current developments in the Sports division, the Management Board of Constantin Medien AG currently expects for the 2019 financial year Group sales of EUR 105 million to EUR 125 million and Group earnings attributable to shareholders of between EUR +0.5 million and EUR -3.0 million. Holding costs, taxes and an expected positive financial result were also considered. * Like-for-like basis: without pro rata profit contributions of Highlight Communications AG up to June 12, 2017 and the non-recurring, non-cash deconsolidation gain (EUR 38.3 million) the previous year.The Constantin Medien Group at a glance
Group results according to IFRS
in EUR millions 2018 2017 Change in % Sales 119.1 263.8 -54.9 EBITDA 1.3 83.7 -98.5 EBIT -2.8 36.7 -107.6 Net result -4.4 28.8 -114.2 (Earnings after taxes) Earnings attributable to shareholders -4.3 27.8 -115.5 Earnings per share (in EUR) -0.05 0.30 -116.7 Segment sales Sports 119.1 139.1 -14.5 Film - 100.3 - Sports- and Event-Marketing - 24.4 - Segment earnings Sports 1.1 1.9 -42.1 Film - -4.7 - Sports- and Event-Marketing - 9.9 - in EUR millions 31.12.2018 31.12.2017 Balance sheet total 91.0 175.1 -48.0 Equity 60.2 62.9 -4.3 Equity ratio (%) 66.1 35.9 +30.2 percent points
Key figures of the Constantin Medien Group without pro rata profit contributions of Highlight Communications AG up to June 12, 2017 and the non-recurring, non-cash deconsolidation gain (EUR 38.3 million) the previous year
in EUR millions 2018 2017* Change in % Sales 119.1 139.3 -14.5 EBITDA 1.3 -0.6 +316.7 EBIT -2.8 -6.6 +57.6 Earnings attributable to shareholders -4.3 -11.1 +61.3 The full consolidated accounts of Constantin Medien AG for the 2018 financial year are available on the company's website (www.constantin-medien.de). Contact: Contact PR: Constantin Medien AG, Michael Röhrig, Tel.: +49 (0) 89 99 500 461, Fax: +49 (0) 89 99 500 466, email: firstname.lastname@example.org NewMark Finanzkommunikation GmbH, Dr Charlotte Brigitte Looß, Tel.: +49 (0) 69 94 41 80 63, E-Mail: email@example.com Contact IR: Constantin Medien AG, Stéphane Winzenried, Tel.: +49 (0)89 99 500 803, Fax: +49 (0)89 99 500 371, email: firstname.lastname@example.org Constantin Medien AG, Münchener Straße 101g, 85737 Ismaning, Tel.: +49 (0)89 99 500 0, Fax: +49 (0)89 99 500 111
15.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Constantin Medien AG Münchener Straße 101 g 85737 Ismaning
Germany Phone: 089 / 99500-436 Fax: 089 / 99500-433 E-mail: email@example.com Internet: http://www.constantin-medien.de ISIN: DE0009147207 WKN: 914720 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service