Highlight Communications : Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic
November 10, 2020 at 09:00 am EST
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DGAP-News: Highlight Communications AG
/ Key word(s): Quarterly / Interim Statement
Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic
10.11.2020 / 15:00
The issuer is solely responsible for the content of this announcement.
EBIT improved by 9.8% from CHF 18.3 million to CHF 20.2 million.
Consolidated net profit for the period climbed substantially by 38.1% to CHF 7.9 million.
Consolidated sales fell by 23.1% year-on-year to CHF 272.0 million due to COVID-19.
The equity ratio was 30.6% as of the end of the first nine months of 2020 (December 31, 2019: 29.3%).
Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic.
Group performance leads to clearly positive earnings figures in first nine months of 2020
Consolidated sales fell by 23.1% as of the end of the first nine months year-on-year to CHF 272.0 million due to COVID-19:
Sales in the Film segment declined by CHF 60.5 million to CHF 162.6 million. This was mainly due to the loss of theatrical distribution and service production sales on account of the COVID-19 pandemic. Owing to the pandemic situation, filming did not begin on any new theatrical productions in the third quarter of 2020. The conventional home entertainment market as a whole remained on a downward trajectory, while digital distribution forms continued to grow in significance.
The slight decrease in the external sales of the Sport- and Event-Marketing segment by CHF 1.9 million to CHF 46.9 million essentially reflects currency effects.
The sales decline in the Sports segment by CHF 19.5 million year on year to CHF 62.4 million relates in particular to reduced advertising revenue on account of the cancellation of sporting events.
Nonetheless, the Highlight Group once again proved its earnings strength in all key earning figures:
EBIT improved by CHF 1.9 million or 9.8% to CHF 20.2 million. The higher EBIT resulted chiefly from the Film segment, which contributed CHF 12.6 million to earnings, its contribution thus considerably higher than in the previous year (CHF 9.4 million). This was thanks to lower costs, in particular on account of the suspension/break in movie and TV service productions due to the coronavirus.
The consolidated net profit of the period was CHF 7.9 million, which is significantly higher than the prior year figure of CHF 5.7 million.
The Highlight Group also has a sound financial position:
At CHF 202.3 million consolidated equity was up by CHF 4.6 million as against the end of 2019.
The equity ratio was 30.6% as of the end of the third quarter of 2020 (December 31, 2019: 29.3%).
The quarterly statement as of September 30, 2020 is available for download at www.highlight-communications.ch from today.
The Highlight Group at a glance
Group figures (IFRS)
CHF million
3Q 2020
3Q 2019
Change in %
Sales
272.0
353.6
-23.1
EBIT
20.2
18.3
9.8
Consolidated net profit (after taxes)
7.9
5.7
38.1
Net profit attributable to shareholders
8.0
6,3
26.5
Earnings per share (in CHF)
0.14
0.11
27.3
Segment sales
Film
162.6
223.2
-27.1
Sport- and Event-Marketing
46.9
48.8
-3.9
Sports
62.4
81.9
-23.8
Segment earnings
Film
12.6
9.4
33.2
Sport- und Event-Marketing
22.3
24.3
-8.4
Sport
-10.5
-9.6
n/a
CHF million
30.9.2019
31.12.2019
Change in %
Total assets
661.9
673.9
-1.8
Equity
202.3
197.7
2.3
Equity ratio (%)
30.6
29.3
1.3 points
Current financial liabilities
69.5
66.7
4.3
Cash and cash equivalents
33.6
53.0
-36.6
For further information:
Highlight Communications AG
Investor Relations
Netzibodenstrasse 23b
CH-4133 Pratteln BL
Telefon: +41 (0)61 816 96 91
E-Mail: ir@hlcom.ch
10.11.2020 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.de
Language:
English
Company:
Highlight Communications AG
Netzibodenstrasse 23b
4133 Pratteln
Switzerland
Phone:
+41 61 816 96 96
Fax:
+41 61 816 67 67
E-mail:
ir@hlcom.ch
Internet:
www.hlcom.ch
ISIN:
CH0006539198
WKN:
920299
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
Highlight Communications AG is a Switzerland-based holding company engaged in the entertainment production. The Companyâs business is divided into two segments. The Film segment is engaged in the production, exploitation and distribution of films and film licenses, from cinema to video, digital versatile disc (DVD) and television broadcasting. The Sports and Event Marketing segment commercializes the licensing, marketing and sponsorship rights for the UEFA European championships, as well as for the Eurovision Song Contest and the Vienna Philharmonic Orchestra. The Company's subsidiaries include Constatin Film AG, Highlight Communications (Deutschland) GmbH, Rainbow Home Entertainment AG, Rainbow Home Entertainment GmbH, TEAM Television Event and Media Marketing AG and Team Football Marketing AG, among others.