DGAP-News: Highlight Group in line with planning after six months
11.08.2015 – 17:52
DGAP-News: Highlight Communications AG / Key word(s): Half Year Results Highlight Group in line with planning after six months 11.08.2015 / 17:48 --------------------------------------------------------------------- Highlight Group in line with planning after six months - Sharp appreciation of the Swiss franc against the euro impacts results of operations - Consolidated sales of CHF 126.7 million below the previous year's figure as expected - EBIT margin improves from 4.5% to 5.7% - Consolidated net profit for the period at CHF 0.6 million due to currency effects - Forecast re-confirmed for fiscal year 2015 In the first half of 2015, the Highlight Group generated sales and earnings that were in line with expectations for the current year. Compared to the first six months of the previous year, however, the company's results of operations were significantly impacted by the sharp appreciation of the Swiss franc against the euro as a result of the cap of 1.20 EUR/CHF having been lifted by the Swiss National Bank. In the Highlight Group's financial statements for the first half of the year,this change in the currency relation was reflected in a CHF 5.0 million rise in financial expenses, among other effects. Group development in the first half of 2015 - At CHF 126.7 million, consolidated sales were down on the previous year's level (CHF 216.3 million), mainly due to lower sales in the Film segment. This decline reflects the fact that, in contrast to the previous year, no international Constantin Film production was released in the first half of 2015. In addition, the Film segment had benefited in the previous year from extremely high sales figures in home entertainment exploitation. - Consolidated operating expenses declined by CHF 87.0 million from CHF 238.8 million in the first six months of the previous year to CHF 151.8 million in the reporting period. This decrease was primarily due to amortization, depreciation and impairment, which fell by CHF 55.6 million to CHF 21.2 million. - As the decline in consolidated operating expenses was weaker overall than the reduction in consolidated sales, EBIT at CHF 7.2 million remained below the previous year's level (CHF 9.7 million). The EBIT margin (EBIT as a percentage of consolidated sales) for the first half of the year improved despite this decline from 4.5% in the previous year to currently 5.7%. - Consolidated net profit for the period, which was affected by the significant rise in financial expenses among other factors, amounted to CHF 0.6 million (previous year's period: CHF 5.9 million). This pronounced decline was mainly attributable to the change in the EUR/CHF currency relation as described above. - CHF 0.8 million of this profit is attributable to Highlight shareholders (previous year's period: CHF 5.6 million), corresponding to earnings per share of CHF 0.02 (previous year's period: CHF 0.13). - At CHF 81.9 million, consolidated equity (including non-controlling interests) was CHF 25.0 million lower than at the end of 2014 (CHF 106.9 million). This decline is firstly due to exchange rate differences of CHF 14.4 million resulting from the translation of the equity of those subsidiaries whose functional currency is not the Swiss franc. Secondly, dividends totaling CHF 10.3 million were distributed in the reporting period. Targets for fiscal year 2015 Based on the positive operating prospects in the second half of the year, particularly with regard to the theatrical releases of "Fack Ju Göhte 2" and "Er ist wieder da", the Highlight Group is continuing to forecast consolidated sales of between CHF 310 million and CHF 330 million and a consolidated net profit for the period attributable to shareholders of between CHF 14 million and CHF 16 million for the Highlight Group in 2015 as a whole. The German interim report as of June 30, 2015 will be available for download at www.highlight-communications.ch starting from this evening, and the English version from August 18, 2015 at the latest. Highlight Group at a glance Group figures according to IFRS in CHF million 6M 2015 6M 2014 Change in % Sales 126.7 216.3 -41.4 EBIT 7.2 9.7 -25.8 Net profit for the period 0.6 5.9 -89.8 Net profit attributable to 0.8 5.6 -85.7 shareholders Earnings per share (CHF) 0.02 0.13 -84.6 Segment sales Film 102.7 190.0 -45.9 Sports- and Event-Marketing 22.1 24.8 -10.9 Other Business Activities 1.8 1.5 20.0 Segment result Film 0.9 3.8 -76.3 Sports- and Event-Marketing 9.7 10.2 -4.9 Other Business Activities -0.6 -1.4 57.1 in CHF million June 30,2015 Dec.31,2014 Change in % Balance sheet total 373.7 361.6 3.3 Equity 81.9 106.9 -23.4 Equity ratio (%) 21.9 29.6 -7.7pts Current financial liabilities 60.5 81.3 -25.6 Cash and cash equivalents 102.1 44.8 127.9 --------------------------------------------------------------------- 11.08.2015 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. --------------------------------------------------------------------- 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 End of News DGAP News-Service --------------------------------------------------------------------- 385657 11.08.2015