Sport1 Medien AG
Constantin Medien: Operational development 2016 above expectations
DGAP-News: Constantin Medien AG / Key word(s): Final Results Constantin Medien: Operational development 2016 above expectations – Group sales of EUR 565.7 million after a strong fourth quarter slightly above target forecast and 17.5 percent above previous year – Profit from operations (EBIT) of EUR 39.5 million significantly above expectations – Earnings attributable to shareholders of EUR 8.3 million at the upper end of the target range despite non-recurring charges
Key figures of the Group 2016 – Group sales increased by 17.5 percent to EUR 565.7 million (2015: EUR 481.6 million), slightly above the last forecast of EUR 522 million to EUR 562 million. All operating segments contributed to the growth. – Profit from operations (EBIT) at EUR 39.5 million significantly exceeded the target range of EUR 29 million to EUR 33 million and almost matched the previous year’s figure of EUR 40.3 million. The Segments Sports as well as Sports- and Event-Marketing recorded earnings growth while the Segment Film showed a decline in earnings due to the disproportionately high exploitation-related amortization on film assets. – The financial result of EUR -18.9 million was below the previous year’s figure of EUR -12.7 million, primarily due to the sale of non-strategic investments, the impairment on a financial investment as well as exchange rate effects. – Group net result amounted to EUR 14.4 million after EUR 20.0 million in the previous year. Earnings attributable to shareholders of Constantin Medien AG were at EUR 8.3 million and at the upper end of the target range of EUR 6 million to EUR 9 million.
The Group’s balance sheet total of EUR 469.5 million as of December 31, 2016, by EUR 70.7 million was primarily lower as at the same balance sheet date of the previous year (EUR 540.2 million) as a result of the amortization-related reduction of film assets. Equity increased year-on-year by a total of EUR 40.5 million to EUR 98.1 million, which is attributable to the positive net result and the sales of shares in Constantin Medien AG and Highlight Communications AG. The equity ratio almost doubled from 10.7 percent to 20.9 percent.
Segments performance – Due to the successful marketing of all SPORT1 platforms, in 2016 the Segment Sports significantly increased the advertising sales, thus compensating the expected decline in sales in the area of production services. As a result, segment sales increased by 2.0 percent against the previous year to EUR 160.7 million. Despite the strong competition from the UEFA EURO 2016(TM) and the Summer Olympics, in free-TV SPORT1 virtually maintained the market shares. In terms of the cumulated access figures in the online and mobile area as well as the video views SPORT1 achieved a very pleasing growth. Due to the strong operational performance, segment result increased by 11.9 percent to EUR 15.0 million and this in spite of an increased year-on-year cost base. – In 2016, the Segment Film on the one hand was characterized by marketing successes in the areas of TV exploitation/licensing trading, especially through the international pre-sales of “Resident Evil: The Final Chapter” as well as “Shadowhunters” and in Home Entertainment in particular due to the exploitation of “Fack Ju Göhte 2”. On the other hand, 2016 was marked by a disappointing development in theatrical distribution. The audience response of a number of films was below expectations and only one title – “Dirty Grandpa” – attracted more than one million viewers in cinemas. Segment sales considerably increased by 28.9 percent to EUR 351.0 million, due to the international movie exploitations. However, in return, amortization on film assets disproportionately increased and thus segment result declined by EUR 5.5 million to EUR 9.0 million. – The Segment Sports- and Event-Marketing, as usual, recorded a very solid performance on a high level. Attributable to the successful marketing of the UEFA club competitions sales grew by 10.9 percent to EUR 53.8 million. The result disproportionately increased by 25.3 percent to EUR 21.3 million.
For the current year, the Management Board is expecting an overall positive business development which however has to be considered differentiated in the individual segments. In the Segment Sports at SPORT1, Constantin Medien is currently assuming moderate increasing sales. There are initial signs that the TV advertising market is going to lose some of its growth dynamic. In the production business, however, we are anticipating a significant decline in sales due to the expected loss of the key account Sky. In the Segment Film there are uncertainties regarding the performance of the theatrical releases, but there are high expectations for the third part of the comedy “Fack Ju Göhte”, which will presumably be released in fall 2017. In the current year, the Segment Sports- and Event-Marketing should take up the previous year’s successes. High legal and consulting costs at Constantin Medien AG (Others division) will continue to burden the result. On the basis of the Group and taking into account the holding costs as well as the financial expenses, for 2017 the Management Board is anticipating sales of between EUR 480 million and EUR 520 million and earnings attributable to shareholders of between EUR 0.5 million and EUR 3.5 million. However, due to the still continuing dispute over the control of the Constantin Medien Group’s companies, the various legal disputes as well as the effects of a possible sale of the shares in Sport1 GmbH and Sport1 Media GmbH, a number of uncertainties exist which could affect the expectations for the operational development in the segments and overall the financial targets of the Constantin Medien Group, but cannot yet be finally quantified as of today.
The Constantin Medien Group at a glance Group results according to IFRS
Frank Elsner Kommunikation für Unternehmen GmbH, Phone: +49 (0) 5404 – 91 92 0, Contact IR: Constantin Medien AG, Münchener Straße 101g, 85737 Ismaning, Phone: +49
30.06.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Constantin Medien AG |
Münchener Straße 101 g | |
85737 Ismaning | |
Germany | |
Phone: | 089 / 99500-436 |
Fax: | 089 / 99500-433 |
E-mail: | ir@constantin-medien.de |
Internet: | http://www.constantin-medien.de |
ISIN: | DE0009147207, DE000A1R07C3 |
WKN: | 914720, A1R07C |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |