28.03.2018 – 17:53

Highlight Communications AG

DGAP-News: Highlight Group with a significant increase in earnings in fiscal year 2017

DGAP-News: Highlight Communications AG / Key word(s): Final Results
Highlight Group with a significant increase in earnings in fiscal year 2017

28.03.2018 / 17:50
The issuer is solely responsible for the content of this announcement.

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Highlight Group with a significant increase in earnings in fiscal year 2017
Consolidated sales of CHF 374.3 million at the upper end of
expectationsConsolidated net profit attributable to shareholders improved by
15.2% to CHF 22.7 millionEquity ratio rose from 36.7% to 46.1%
The business performance of the Highlight Group was highly positive overall in
2017.

Group development in fiscal year 2017
At CHF 374.3 million, consolidated sales were at the upper end of the forecast
corridor of between CHF 360 million and CHF 380 million.
 Due to one-off expenses (costs for the takeover offer to the shareholders of
Constantin Medien AG, additional legal and consulting costs), EBIT decreased as
expected to CHF 25.4 million compared to the previous year's figure (CHF 35.8
million), which also included a one-off effect of CHF 2.7 million from the sale
of the Other Business Activities segment.
 The consolidated net profit attributable to shareholders improved by 15.2%
year-on-year to CHF 22.7 million. The figure thus significantly exceeded the
earnings forecast of CHF 18 million to CHF 20 million.
 Earnings per share recorded a slight decline from CHF 0.46 to CHF 0.41 due to a
considerably larger number of shares (up 30.6% year-on-year) as a result of the
capital increase.
 This capital increase also caused the equity ratio to rise from 36.7% to 46.1%
and net liquidity to increase from CHF 36.2 million to CHF 109.4 million.
Development of the operating segments in 2017
TheFilmsegmentlargely achieved itstargets in fiscal year 2017, with the
theatrical distribution area developing very well. Three titles from the
distribution slate drew audiences of more than a million moviegoers in Germany,
with "Fack Ju Göhte 3" in the lead as the most-watched movie of 2017. As
anticipated, sales in the home entertainment business area - which had
particularly benefited from exceptionally high sales figures for the hit films
"Fack Ju Göhte 2" and "Look Who's Back" in 2016 - fell short of the previous
year's level. The same applies to the TV exploitation/license trading area,
which had benefited from high financing proceeds from the international own
production "Resident Evil: The Final Chapter" in the previous year. By contrast,
income from TV service productions remained at a consistently high level,
primarily due to the continuing strong performance of dailies, weeklies, and
fictional miniseries.As a result of these developments, the Film segment
generated external sales of CHF 315.6 million in the year under review, down CHF
67.2 million on the figure for the previous year (CHF 382.8 million). Segment
expenses fell by CHF 44.3 million to CHF 458.9 million (2016: CHF 503.2
million), mainly due to considerably lower scheduled amortization on film
assets. At CHF 9.7 million, segment earnings were down CHF 2.2 million or 18.5%
compared to the previous year's figure (CHF 11.9 million).In theSports- and
Event-Marketingsegment, activities focused on marketing of the commercial rights
to the UEFA Champions League and the UEFA Europa League (for the 2018/19 to
2020/21 seasons). In the area of TV rights, contracts have already been
concluded for some key markets. With regard to sponsorship rights, contracts
with existing sponsors were successfully extended and a new sponsor was
contractually secured.
At CHF 58.7 million, the segment's external sales were virtually unchanged from
the previous year's level (CHF 58.6 million), while segment expenses were
reduced by CHF 4.0 million to CHF 31.9 million. Accordingly, segment earnings
improved by CHF 1.9 million or 7.5% to CHF 27.3 million (2016: CHF 25.4
million).

Targets for fiscal year 2018

Assuming stable currency effects, the Highlight Group is expecting consolidated
sales of between CHF 520 million and CHF 540 million and a consolidated net
profit attributable to shareholders of between CHF 18 million and CHF 20 million
for the current fiscal year.

The Board of Directors of Highlight Communications AG will propose the
distribution of a dividend of CHF 0.20 per entitled share for fiscal year 2017
at the Annual General Meeting. The ordinary Annual General Meeting for fiscal
year 2017 is expected to take place in June 2018.

The annual report for 2017 will be available for download at
www.highlight-communications.ch starting from today.

Highlight Group at a glance                            

Group figures according to IFRS                                      

                                                                     

in CHF million                          2017          2016          Change in %

Sales                                   374.3         441.7         -15.3

EBIT                                    25.4          35.8          -29.1

Net profit for the period               23.7          20.3          16.7

Net profit attributable to shareholders 22.7          19.7          15.2

Earnings per share (CHF)                0.41          0.46          -10.9

Segment sales                                                        

Film                                    315.6         382.8         -17.6

Sports- and Event-Marketing             58.7          58.6          0.2

Segment earnings                                                     

Film                                    9.7           11.9          -18.5

Sports- and Event-Marketing             27.3          25.4          7.5

                                                                     

in CHF million                          Dec. 31, 2017 Dec. 31, 2016 Change in %

Balance sheet total                     512.8         368.5         39.2

Equity                                  236.4         135.3         74.7

Equity ratio (%)                        46.1          36.7          9.4 points

Current financial liabilities           77.2          52.3          47.6

Cash and cash equivalents               186.6         88.5          110.8

                                                                     

For more information:                                                

                                                                     

Highlight Communications AG                                          

Investor Relations                                                   

Netzibodenstrasse 23b                                                

4133 Pratteln BL, Switzerland                                        

Phone: +41 (0)61 816 96 91                                           

E-mail:  ir@hlcom.ch                                                  

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28.03.2018  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.

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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



 

End of News DGAP News Service

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669957  28.03.2018