Q Quarterly Statement

Transcription

1 Q1 216 Quarterly Statement

2 Q1 216 Constantin Medien AG Business performance Constantin Medien AG is an internationally operating media company based in Ismaning near Munich. In the reporting period, business operations comprised the Segment Sports as well as, through its majority holding in Highlight Communications AG, Pratteln/Switzerland, the Segments Film, Sports- and Event- Marketing as well as the Segment Other Business Activities. Constantin Medien made a good start into the 216 financial year Fred Kogel, Chief Executive Officer of Constantin Medien AG: In the first three months of 216, Constantin Medien continued its positive trend of 215. Good coverage and user figures of our SPORT1 platforms, a strong licensing and home entertainment business in the Segment Film as well as a charac - teristically, high solid performance of our marketing company TEAM have shaped the start of the year. Further more, we have stream lined our Group portfolio by means of divestments. Overall, the business performance of the first quarter was in line with our expectations. Constantin Medien increased Group sales in the first quarter 216 by 59.6% to EUR million, driven by the Segment Film. Profit from operations (EBIT) improved by EUR 1.5 million to EUR 6.1 million. This includes EUR 1.2 million from the sale of the companies of the Segment Other Business Activities. Group net profit (profit after taxes) increased from EUR -.8 million to EUR 1. million, despite advers effect on earnings from portfolio streamlining. Earnings attributable to shareholders improve to EUR -.7 million (Q1 215: EUR -1.1 million). This includes a non-recurring expense of EUR -.8 million (Q1 215: EUR million) pursuant to the sale of the Segment Other Business Activities and non-strategic investments and associated companies. Unchanged expectations for 216 full year Group sales ranging between EUR 55 million and EUR 59 million and earnings attributable to shareholders between EUR 6 million and EUR 9 million. New introduced key performance indicator Group EBIT is expected to range between EUR 29 million and EUR 33 million. 1

3 Q1 216 Content Content 1. Financial performance indicators 3 2. Business performance in the first quarter Overall view 2.2 Operating and economic performance of the segments Segment Sports Segment Film Segment Sports- and Event-Marketing Segment Other Business Activities Others 6 3. Risk- and opportunities report 6 4. Outlook Priorities Financial targets 7 5. Financial information 8 6. Significant explanatory notes Divestments Segment Other Business Activities and other activities Significant change of the equity ratio and net debt Events after the reporting period 14 Forward-looking statements This document contains forward-looking statements that are based on esti mates and expectations of the Management Board. Words such as anti cipate, intend, expect, can/could, plan, intend, further improvement, target is and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not historical facts. They are subject to risks, uncertainties and factors, of which most are difficult to assess and which in general are beyond the control of the Management Board. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove to be incorrect, the actual results, performance or achievements of the Constantin Medien Group may differ significantly from those described explicitly or implicitly in the forward-looking statements. The Constantin Medien AG does not intend to continuously update the forward-looking statements contained in this document. Although every effort has been made to ensure that the provided informa tion and facts are correct, and that the opinions and expectations are reasonable, no liability or warranty as to the completeness, correctness, adequacy and/or accuracy of any forward-looking statements in this document is assumed. This document is a quarterly statement according to section 51a of the Stock Exchange Regulations of Frankfurt Stock Exchange. Rounding differences of +/- one unit may occur in the tables for computational reasons and the percentages shown may not precisely reflect the absolute figures that they represent. Important notice This document is a free translation into English of the original German text. It is not a binding document. In the event of a conflict in interpre - tation, reference should be made to the German version, which is the authentic text. 2

4 Quarterly Statement Q1 216 Financial performance indicators Business performance in the first quarter 216 Quarterly Statement 1. Financial performance indicators Sales and earnings attributable to shareholders were the key performance indicators within the Constantin Medien Group so far. The Management Board of Constantin Medien AG has decided to apply profit from operations (EBIT) as key performance indicator for the success of the group of companies in addition to sales and earnings attributable to shareholders. 2. Business performance in the first quarter Overall view Sales, profit from operations (EBIT) and earnings attributable to shareholders increased in the first quarter 216 compared to same period last year. Business development is in line with expectations. Increase in sales by 59.6%, mainly resulting from the Segment Film. Profit from operations (EBIT) increased by EUR 1.5 million to EUR 6.1 million. This includes EUR 1.2 million result from the sale of the subsidiaries in the Segment Other Business Activities. Group earnings attributable to shareholders improved by EUR.4 million to EUR -.7 million. This includes EUR -.8 million expense from the sale of subsidiaries, investments and associated companies. Constantin Medien Group Business performance in EUR million 3/31/216 3/31/215 Sales Profit from operations EBIT Earnings attributable to shareholders % +32.6% +36.4% 2.2 Operating und economic performance of the segments Segment Sports SPORT1 is further expanding its rights portfolio in the first quarter 216 and acquires platform-neutral exploitation rights for several domestic matches of the team of Deutscher Handballbund (DHB) for the current year as well as for the international football tournament series International Champions Cup 216 and 217. In the mobile area, co-operation between SPORT1 (as one of 3 media partners around the world) and Google for launching AMP ( Accelerated Mobile Pages ). Significantly shorter charging times submit faster access to content on mobile devices. Top free-tv coverage, e.g. with the live broadcasts of the 216 Darts World Cup at the beginning of January, the Volkswagen Doppel pass and the UEFA Europa League. Slight increase in the free-tv market shares of viewers overall (Z3+); market share in the core target group of men aged (M14-49) continues to be high. SPORT1 Free-TV in % Market share / Z3+ (Ø / month) Market share / M14-49 (Ø / month) Q Q % +/-% Source: AGF/GfK Fernsehforschung (TV Scope), January 1 to March 31, 215/216 Pay-TV distribution remains stable at a total of 2.2 million subscribers for SPORT1+ and 1.49 million subscribers for SPORT1 US (both without the subscribers of Sky). 3

5 Q1 216 Quarterly Statement Business performance in the first quarter 216 Ongoing strong increases in page impressions (PIs) and visits in the mobile area due to general sustained growth trend in the mobile area and to optimization of the apps and mobile website of SPORT1. Strong access figures in reporting at the start of the Bundesliga return leg, the good performance of German clubs in the UEFA Champions League and UEFA Europa League, the Handball European Championship and the Australian Open in tennis. SPORT1 Mobile in million Page Impressions (PIs) (Ø / month) Visits (Ø / month) Q Q % +39% Source: IVW (German Information Association for the Ascertainment of Distribution of Advertising Media), January to March 215/216; Mobile incl. MEW, SPORT1 News App, Manager App, Video App and SPORT1.fm App. Decline in PIs and visits in the pure online area due to the ongoing shift of content use from online to mobile. SPORT1 Online in million Page Impressions (PIs) (Ø / month) Visits (Ø / month) Q Q % -27% Source: IVW (German Information Association for the Ascertainment of Distribution of Advertising Media e.v.), January to March 215/216; Online incl. SPORT1.de; tv.sport1.de; video.sport1.de, bundesligamanager.sport1.de and SPORT1.fm. Increase in video views due to continuous further development of the video offers on the SPORT1 platforms and the SPORT1 YouTube channels. SPORT1 Video in million Video Views (all SPORT1 platforms) (Ø / month) Video Views (SPORT1 YouTube channels) (Ø / month) Q * 3.9 Q % Sources: Google Analytics January to March 215; DoubleClick January to March 216; Akamai January to March 215/216; YouTube Content Manage ment System January to March 215/216 *Since January 1, 216, video views for SPORT1 are collected by DoubleClick; a comparison to previous periods is therefore not possible. Decline in the listener numbers of SPORT1.fm in Q1 216 to approx. 7.7 million streaming sessions a decrease of 19% compared to Q Sources: Triton January to March 215/216 Host Broadcasting and numerous unilateral provisions by PLAZAMEDIA as part of the broadcasts of the UEFA Champions League for the customers Sky and ZDF. PLAZAMEDIA implements virtual extension of the ZDF mobile UEFA Champions League studio using augmented and virtual reality elements. Comprehensive technical production services for the customers Sky and SPORT1 within the broadcasts of the UEFA Europa League and the return leg of the Football Bundesliga and 2 nd Bundesliga. 4

6 Segment Sports Segment performance in EUR million 3/31/216 3/31/215 Segment sales Segment result % -61.9% Sales of EUR 35.2 million almost at the level of the previous year, but sales from interactive program areas and new customer business in the production are falling short of expectations. Segment result below previous year's level mainly due to higher cost of materials and licenses (especially UEFA Europa League) Segment Film Theatrical distribution Theatrical release of two films by the Constantin Film group in the first quarter with the co-production Gut zu Vögeln (release date: January 14, 216) and the licensed film Dirty Grandpa (release date: February 11, 216), which attracted 1.26 million viewers in Germany by the end of March (including previews), reaching number 8 in the ranking of all films released in the first quarter of 216 (related to the German market). Source: comscore, Evaluations of the theatrical market in Germany in 216, 1 st quarter 216 January 7, 216 to March 3, 216 Home Entertainment Extraordinarily good performance of the new release Fack Ju Göhte 2 (available since February 25, 216) with approx. 5, physical units sold and around 4, digital transactions until the end of February 216*. Source: GfK Key Facts video purchasing market, January to February 216 *The data for March 216 were not yet available until the editorial deadline. License trading/tv exploitation License starts e.g. of the theatrical films Inside Wikileaks (ProSieben) and Schoßgebete (WDR) in free-tv as well as Frau Müller muss weg! (Sky) in pay-tv. Delivery and start of TV exploitation for the first season of Shadow hunters on the American channel Freeform. Shadowhunters is the second best production on this channel. Constantin Film group has already been commissioned with a second season. TV service production Start of shooting for the two-parter Familie for ZDF and the drama Terror for ARD/Degeto at Moovie GmbH. Market shares (overall market) of several TV service productions by Constantin Film AG and its subsidiaries in doubledigit percentage range in the first quarter of 216. Source: GG Media TV Facts Segment Film Segment performance in EUR million Segment sales Segment result 3/31/ /31/ % +88.9% Sales more than doubled, mainly as a result of the successes in license trading and home entertainment. Sales drivers were primarily Shadowhunters and Fack Ju Göhte 2. Segment result almost balanced, after EUR -.9 million in the same period last year. High amortization on film assets, in particular in connection with Shadowhunters have contributed as expected to disproportionately earnings development. 5

7 Q1 216 Quarterly Statement Risk- und opportunities report Segment Sports- and Event-Marketing Conclusion of further major contracts in the marketing process for the commercial rights for the 215/16 to 217/18 match periods of the UEFA Champions League and the UEFA Europa League, both for TV and sponsorship rights. Further focus in the reporting period on preparing the upcoming rights marketing for the 217/18 to 22/21 seasons. Segment Sports- and Event-Marketing Segment performance in EUR million 3/31/216 3/31/215 Segment sales Segment result % -3.4% Sales increase of EUR 2.9 million results from higher agency commissions pursuant to the successful marketing of the UEFA club competitions. Segment result of EUR 5.6 million after EUR 5.8 million in the same quarter last year. Previous year figure included high foreign currency exchange gains Segment Other Business Activities Resolution by the Board of Directors of Highlight Communications AG on February 2, 216, to no longer pursue the activities of the Segment Other Business Activities. The interest in Highlight Event & Entertainment AG was sold as of February 3, 216. Pokermania GmbH was sold as of March 31, 216. Sales are not comparable with previous year figure due to the sale of Highlight Event & Entertainment AG. Segment result of EUR 1.2 million due to the gain from sale of Highlight Event & Entertainment AG and Pokermania GmbH Others Profit from operations of the holding company Constantin Medien AG (division Others) improved by EUR.7 million to EUR -1.4 million primarily due to lower personnel costs. 3. Risk- und opportunities report Detailed description of the risk management system, the risk and opportunities profile as well as the individual risks and opportunities see chapter 8 of the combined group management and management report of the 215 annual report of Constantin Medien AG. Current evaluation of the risk factors by the relevant parties responsible supports the classification of risks and opportunities set out in the combined group management and management report of the 215 annual report of Constantin Medien AG. Therefore no significant changes in the reporting period compared to the presentation in the combined group management and management report of the 215 annual report of Constantin Medien AG. 6

8 Quarterly Statement Q1 216 Outlook 4. Outlook 4.1 Priorities No material changes in the priorities of the individual segments compared to the presentation in the 215 annual report 4.2 Financial targets Based on unchanged currency conditions, expectation of the Management Board of Constantin Medien AG for the 216 full year Group sales still ranging between EUR 55 million and EUR 59 million. Expectation of the Management Board of Constantin Medien AG for the 216 full year profit from operations (EBIT) in a range between EUR 29 million and EUR 33 million, taking into account holding costs and almost constant currency exchange rates. Taking into account financing expenses and taxes and almost constant currency exchange rates, expec tation of the Management Board of Constantin Medien AG for the 216 full year earnings attributable to shareholders still between EUR 6 million and EUR 9 million. 7

9 Q1 216 Quarterly Statement Financial information Consolidated income statement 5. Financial information Consolidated income statement January 1 to March 31, 216 in EUR 3/31/216 3/31/215 Sales Capitalized film production costs and other own work capitalized Total output 152,95 42, ,959 95,264 7,243 12,57 Other operating income 6,652 8,878 Costs for licenses, commissions and materials Costs for purchased services Cost of materials and licenses -1,996-63,866-74,862-8,911-32,596-41,57 Salaries Social security and pension costs Personnel expenses -28,777-4,94-32,871-28,144-4,133-32,277 Amortization and impairment on film assets Amortization/depreciation and impairment on intangible assets and property, plant and equipment Impairment on goodwill Amortization, depreciation and impairment -64,451-1,8-66,251-1,525-1,934-12,459 Other operating expenses -21,524-2,578 Profit from operations 6,13 4,564 Profit from investments in associated companies and joint ventures Financial income Financial expenses Financial result 2,94-6,217-4,123 4,488-1,375-5,887 Profit/loss before taxes 2, Income taxes Deferred taxes Taxes , Net profit/loss thereof non-controlling interests thereof shareholders' interests 985 1, ,57 8

10 Quarterly Statement Q1 216 Financial information Consolidated statement of comprehensive income/loss January 1 to March 31, 216 3/31/216 3/31/215 Earnings per share Earnings per share attributable to shareholders, basic (in EUR) Earnings per share attributable to shareholders, diluted (in EUR) Average number of outstanding shares (basic) Average number of outstanding shares (diluted) 86,177,57 86,177,57 86,177,57 86,177,57 Consolidated statement of comprehensive income/loss January 1 to March 31, 216 in EUR 3/31/216 3/31/215 Net profit/loss Foreign currency translation differences Net gains/losses from a net investment hedge in fair value of available-for-sale financial assets Gains/losses from cash flow hedges Items that probably will be reclassified to profit or loss in subsequent periods , ,917 Result from remeasurement of defined benefit plans Items that will not be reclassified to profit or loss in subsequent periods -1,112-1, Other comprehensive income/loss, net of tax -1,861 2,8 Total comprehensive income/loss thereof non-controlling interests thereof shareholders' interests ,888-2,764 1, ,784 9

11 Q1 216 Quarterly Statement Financial information Consolidated balance sheet Assets Consolidated Balance Sheet as of March 31, 216 in EUR 3/31/216 12/31/215 Non-current assets Film assets Other intangible assets Goodwill Property, plant and equipment Investment property Investments in associated companies and joint ventures Other financial assets Receivables due from associated companies and joint ventures Deferred tax assets 134,41 32,884 47,674 9, ,712 3, , ,731 33,289 49,551 1,34 3, ,871 4,789 3, ,484 Current assets Inventories Trade accounts receivable and other receivables Receivables due from associated companies and joint ventures Other financial assets Income tax receivables Cash and cash equivalents 3, , ,229 12,53 228,21 3, , ,48 122, ,694 Total assets 465,748 54,178 1

12 Equity/Liabilities Consolidated Balance Sheet as of March 31, 216 in EUR 3/31/216 12/31/215 Equity Subscribed capital Treasury stock Capital reserve Other reserves Accumulated loss Shareholders' interests Equity attributable to the shareholders Non-controlling interests 93,6-7,422 88,52 11, ,6-1,411 12,517 27,226 39,743 93,6-7,422 93,517 13,91-184,832 12,792 2,746 36,846 57,592 Non-current liabilities Financial liabilities Advance payments received Other liabilities Pension liabilities Provisions Deferred tax liabilities 98,663 35, , , ,16 98,72 43, , ,468 17,93 Current liabilities Financial liabilities Advance payments received Trade accounts payable and other liabilities Liabilities due to associated companies and joint ventures Provisions Income tax liabilities 76,8 57,32 117,871 9,736 1,27 261,989 96,333 68,13 132,857 8,75 5, ,656 Total equity and liabilities 465,748 54,178 11

13 Q1 216 Quarterly Statement Financial information Consolidated statement of cash flows Consolidated statement of cash flows January 1 to March 31, 216 in EUR 3/31/216 3/31/215 Net profit/loss Deferred taxes Income taxes Financial result Profit (-) / loss (+) from investments in associated companies and joint ventures Amortization, depreciation and impairment and write-ups on film assets, intangible assets and property, plant and equipment Profit (-) / loss (+) from disposal of film assets, intangible assets and property, plant and equipment Other non-cash items Increase (-) / decrease (+) in inventories, trade accounts receivable and other assets not classified to investing or financing activities Decrease (-) / increase (+) in trade accounts payable and other liabilities not classified to investing or financing activities Dividends received from associated companies and joint ventures Interest paid Interest received Income taxes paid Income taxes received , ,251-1, ,66-31,525-1, ,262 2, , , , , , Cash flow from operating activities 18,187 1,97 in cash and cash equivalents due to acquisitions of companies/shares in companies, net Payments for intangible assets Payments for film assets Payments for property, plant and equipment Payments for financial assets Proceeds/payments due to sale of companies/shares in companies, net Proceeds from disposal of intangible assets and film assets Proceeds from disposal of property, plant and equipment Proceeds from disposal of financial assets , , , ,62-1, Cash flow for investing activities -16,233-7,66 12

14 January 1 to March 31, 216 in EUR 3/31/216 3/31/215 Proceeds from capital increase and from issuance of equity instruments Payments for purchase of treasury stock Proceeds from sale of treasury stock Payments for purchase of non-controlling interests Proceeds from sale of non-controlling interests Repayment and buy-back of non-current financial liabilities Repayment and buy-back of current financial liabilities Proceeds from receipt of non-current financial liabilities Proceeds from receipt of current financial liabilities Dividend payments -2, , ,198 Cash flow for financing activities -21,564-2,6 Cash flow for/from the reporting period -19,61 91,358 Cash and cash equivalents at the beginning of the reporting period in cash and cash equivalents due to exchange rate movements Cash and cash equivalents at the end of the reporting period 122, ,53 73,748 5,321 17,427 in cash and cash equivalents -19,61 91,358 13

15 Q1 216 Quarterly Statement Significant explanatory notes Imprint 6. Significant explanatory notes 6.1 Divestments Segment Other Business Activities and other activities The sale of the subsidiaries Highlight Event & Entertainment AG and Pokermania GmbH, the associated companies Holotrack AG, Paperflakes AG and Kuuluu Interactive Entertainment AG as well as the other investment Pulse Evolution Corporation has affected earnings attributable to shareholders with a total of EUR -.8 million in the first quarter Significant change of the equity ratio and net debt Equity ratio (total equity in relation to the balance sheet total) at 8.5% (December 31, 215: 1.7%). Decline in equity attributable to non-controlling interests, mainly due to the purchase of treasury shares at Highlight Communications AG as well as the deconsolidation of Highlight Event & Entertainment AG and Pokermania GmbH. Adjusted equity ratio (after netting advance payments received against film assets and film-related cash and cash equivalents with the corresponding financial liabilities) at 9.3% (December 31, 215: 11.8%). Net debt almost unchanged. Cash and cash equivalents and current financial liabilities decreased in each case by around EUR 2 million. Net debt as of March 31, 216 in EUR million Cash and cash equivalents Current financial liabilities Non-current financial liabilities 3/31/ /31/ % -21.%.% Net debt % 6.3 Events after the reporting period Increase of equity through sale of 7.4 million treasury shares by the subsidiary Highlight Communications AG in April 216. With the sale the free float of the Constantin Medien AG share increased from 49.7% to 57.6%. Ismaning, May 12, 216 Constantin Medien AG Fred Kogel Olaf G. Schröder Leif Arne Anders Chief Executive Officer Chief Officer Sports Chief Financial Officer Imprint Published by Constantin Medien AG, Münchener Straße 11g, Ismaning, Germany, HRB , Munich District Court Phone +49 () , Fax +49 () , info@constantin-medien.de, 14

16 Constantin Medien ag Münchener Straße 11g Ismaning, Germany constantin-medien.de