Highlight Communications : Positive earnings development at Highlight Group despite COVID-19 pandemic
August 13, 2020 at 10:30 am EDT
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DGAP-News: Highlight Communications AG
/ Key word(s): Half Year Results
Positive earnings development at Highlight Group despite COVID-19 pandemic
13.08.2020 / 16:30
The issuer is solely responsible for the content of this announcement.
EBIT improved significantly from CHF 1.6 million to CHF 11.9 million.
At CHF 4.0 million, the consolidated net profit for the period was well into positive territory after the prior-year figure of CHF -1.8 million.
Consolidated revenue fell by 25.2% year-on-year to CHF 172.0 million due to COVID-19, mainly in the Film and Sports segments.
The equity ratio rose to 31.5% as of the end of the first half of 2020 (December 31, 2019: 29.3%).
Group performance leads to clearly positive earnings figures in first half of 2020
Consolidated revenue fell by 25.2% year-on-year to CHF 172.0 million:
Revenue in the Film segment declined by CHF 42.9 million to CHF 98.0 million. This was mainly due to the loss of theatrical distribution and service production revenue on account of the COVID-19 pandemic. Moreover, the conventional home entertainment market as a whole remained on a downward trajectory, while digital distribution forms continued to grow in significance.
The Sports- and Event-Marketing segment reported a slight decline in revenue of CHF 1.7 million to CHF 31.2 million due to currency effects.
The revenue decline in the Sports segment from CHF 56.4 million to CHF 43.2 million relates in particular to reduced advertising revenue on account of the cancellation of sporting events.
Nonetheless, all the Highlight Group's earnings figures improved significantly:
The rise in EBIT of CHF 10.3 million to CHF 11.9 million primarily results from improvements in the Film segment, which contributed earnings of CHF 8.8 million in the first half of 2020 after a loss of CHF -2.6 million in the first half of the previous year. This was thanks to lower costs, in particular on account of the suspension/break in movie and TV service productions due to the coronavirus.
At CHF 4.0 million, the consolidated net profit for the period was significantly higher than the prior-year figure of CHF -1.8 million. The share of earnings attributable to Highlight's shareholders was CHF 4.2 million (previous year: CHF -0.5 million), corresponding to earnings per share of CHF 0.07 (previous year: CHF -0.01).
The Highlight Group also has a sound financial position:
At CHF 196.8 million, consolidated equity was down by CHF 0.9 million as against the end of 2019, partly as a result of currency effects.
The equity ratio was 31.5% as of the end of the first half of 2020 (December 31, 2019: 29.3%).
The interim report as of June 30, 2020 is available for download at www.highlight-communications.ch from today.
The Highlight Group at a glance
Group figures (IFRS)
CHF million
Q2 2020
Q2 2019
Change in %
Revenue
172.0
229.9
-25.2
EBIT
11.9
1.6
n/a
Consolidated net profit (after taxes)
4.0
-1.8
n/a
Net profit attributable to shareholders
4.2
-0.5
n/a
Earnings per share (in CHF)
0.07
-0.01
n/a
Segment revenue
Film
98.0
140.9
-30.5
Sports- and Event-Marketing
31.2
32.9
-5.1
Sports
43.2
56.4
-23.5
Segment earnings
Film
8.8
-2.5
n/a
Sports- and Event-Marketing
14.7
16.2
-9.3
Sports
-8.6
-8.4
-2.0
CHF million
Jun. 30, 2020
Dec. 31, 2019
Change in %
Total assets
625.5
674.0
-7.2
Equity
196.8
197.7
-0.5
Equity ratio (%)
31.5
29.3
+2.2 points
Financial liabilities
173.2
187.7
-7.7
Cash and cash equivalents
33.6
53.0
-36.7
For further information:
Highlight Communications AG
Investor Relations
Netzibodenstrasse 23b
CH-4133 Pratteln BL
Tel: +41 (0) 61 816 96 91
E-mail: ir@hlcom.ch
13.08.2020 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.
HIGHLIGHT COMMUNICATIONS AG 
