DGAP-News: Constantin Medien AG: Constantin Medien in the first half of 2019: Significant improvement in consolidated earnings attributable to shareholders

PRESS RELEASE

Constantin Medien in the first half of 2019: Significant improvement in consolidated earnings attributable to shareholders
 

- Consolidated earnings attributable to shareholders slightly positive in Q2 2019

- Turnaround at PLAZAMEDIA confirmed

- Financial result positive for the first time in years, also positive operating cash flow

- Management Board sees its strategy confirmed

Ismaning, August 13, 2019 - Consolidated earnings attributable to shareholders of the Constantin Medien Group (ISIN: DE0009147207, WKN: 914720) improved by EUR 2.3 million over the previous year's period. In the second quarter 2019, slightly positive consolidated earnings attributable to shareholders and a significant improvement in EBIT compared to the corresponding prior-year quarter were achieved. In addition, a positive financial result of EUR 0.9 million was achieved in the first half of 2019.

Revenues in the first six months of 2019 were below the previous year's level, in particular due to lower TV advertising revenues following the discontinuation of the rights to the UEFA Europa League and a general restraint in advertising spending by advertisers. Nevertheless, the Constantin Medien Group generated a positive cash flow from operating activities of EUR 2.3 million in the first six months of 2019 (H1 2018: EUR -4.9 million). In addition, the year-on-year comparison is characterized by the fact that 2018 was a particularly strong sports year in terms of topics, with the Olympic Games and the 2018 FIFA World Cup^TM, in which SPORT1 held rights to highlight clips of all World Cup matches for its digital platforms. The digital area developed as expected in the first half of 2019, the increase in video views on YouTube deserves special mention here. Despite the decline in revenues, the operating result (EBIT) remained almost stable, in particular due to the decline in material and license expenses.
 

Group key figures H1 2019

- Group revenues in the first half of 2019 reached EUR 50.0 million (H1 2018: EUR 60.5 million). Positive sales impulses from the Ice Hockey World Championship, the DEL and Champions Hockey League as well as the stable Bundesliga Sundays could not compensate for the discontinuation of the UEFA Europa League in the first half of 2019. In addition, there was a general restraint in advertising spending and months of legal uncertainty regarding the Schleswig-Holstein licenses for online casinos. The advertising of online casinos has only been possible again since June 27, 2019. The newly won live and highlight rights to the DFB Cup (DFB-Pokal) will not be exploited until the 2019/20 season, which began on August 9, 2019.

- Earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR -0.9 million in the first half of 2019 clearly exceeded EUR -3.0 million in H1 2018. Despite the decline in revenue, EBITDA was positive in the second quarter at EUR 1.1 million, compared with EUR -1.3 million in the second quarter of 2018. In addition to the shift of rental and leasing expenses to amortization due to the first-time adoption of IFRS 16, this was due to considerably lower license expenses as well as lower legal and consulting costs.

- The operating result (EBIT) for the first six months of 2019 was EUR -5.0 million, compared with EUR -4.8 million in the same period of the previous year. Despite the significant decline in revenues, EBIT remained virtually stable. In the second quarter, EBIT increased significantly by EUR 1.3 million to EUR -0.9 million compared to the same quarter of the previous year.

- In H1 2019, the financial result increased by EUR 1.4 million year-on-year to EUR 0.9 million (H1 2018: EUR -0.5 million). The main reason for this was the complete redemption of the 2013/2018 corporate bond, which matured in April 2018, and the associated elimination of the corresponding interest expenses.

- Consolidated earnings attributable to shareholders improved by EUR 2.3 million to EUR -4.1 million (H1 2018: EUR -6.4 million). At the quarterly level, the Group recorded a slightly positive result of EUR 0.04 million in Q2 2019 after a loss of EUR -1.6 million in the same quarter of the previous year.
 

Operative Highlights

- The biggest new program highlight this year for SPORT1 is the acquisition of rights to the DFB Cup. Germany's leading 360 sports platform will broadcast a total of four matches live from the first round to the quarter finals and offer accompanying formats and coverage on its TV, digital and social media channels.

- On 24 January 2019, eSPORTS1, the first eSports channel in the German-speaking area, went on-air successfully. The program comprises at least 1,200 live hours per year of international and national top events as well as highlight broadcasts and self-produced magazines. The new pay-TV channel reports 24/7 on the most popular titles such as League of Legends, Dota 2 and Counter-Strike. Since its launch, eSPORTS1 has been offered via the platforms of Vodafone Deutschland, Telekom, Unitymedia, 1&1, T-Mobile Austria, A1 Telekom, UPC Switzerland and Zattoo as well as via the new eSPORTS1 app. This underlines the Group's innovative role in the German media industry.

- Investments and the expansion of customer relationships at PLAZAMEDIA GmbH led to a considerable improvement in EBIT in the first six months of 2019.

- In the first half of 2019, the full-service event and sports consulting agency Match IQ organized trips abroad and friendly matches for well-known German clubs such as Eintracht Frankfurt, Hertha BSC, VfL Wolfsburg and FC St. Pauli.
 

Olaf Schröder, CEO of Constantin Medien AG: "The results for the first half of 2019 clearly show that our strategy is paying off. Profitability is more important to us than revenues growth, and we have made great progress in this respect. Despite declining revenues, Group earnings improved strongly. We are particularly pleased with the earnings improvement at PLAZAMEDIA, where our considerable investments are beginning to pay off. Of course, we also want to grow revenues again. In return, I expect impulses from the live and highlight rights to the DFB Cup as of the 2019/20 season. I also see positive developments in the digital area, where we now employ more people than in our core free-TV business. As a 360-degree-platform, we are excellently positioned in the sports market with our umbrella brand SPORT1, which will also have a noticeable financial impact."
 

Outlook for the 2019 financial year

The Management Board of Constantin Medien AG confirms its previous Group forecast for the 2019 fiscal year. At the present time, it continues to anticipate Group revenues of between EUR 105 million and EUR 125 million and consolidated earnings attributable to shareholders of between EUR +0.5 million and EUR -3.0 million (considering holding costs as well as the financial result and taxes).
 

The interim financial report 2019 of Constantin Medien AG is available on the website of the Company (www.constantin-medien.de).

Contact:
Contact PR:
Constantin Medien AG, Michael Röhrig, Tel.: +49 (0) 89 99 500 461, Fax: +49 (0) 89 99 500 466, email: michael.roehrig@constantin-medien.de

NewMark Finanzkommunikation GmbH, Dr Charlotte Brigitte Looß, Tel.: +49 (0) 69 94 41 80 63, E-Mail: constantinmedien@newmark.de

Contact IR:
Constantin Medien AG, Stéphane Winzenried, Tel.: +49 (0)89 99 500 803, Fax: +49 (0)89 99 500 371, email: ir@constantin-medien.de

Constantin Medien AG, Münchener Straße 101g, 85737 Ismaning, Tel.: +49 (0)89 99 500 0, Fax: +49 (0)89 99 500 111