DGAP-News: Constantin Medien AG: Constantin Medien confirms forecast for the full year 2018

PRESS RELEASE

Constantin Medien confirms forecast for the full year 2018
 

- Following completion of takeover bid by Highlight Communications AG and Studhalter Investment AG, Group has new shareholder structure and clear majority control since February 2018

- Successful debt clearance leads already in first half-year to clearly improved financial result year-on-year

- Expansion of SPORT1 program portfolio, among others, with DFB-Pokal (DFB Cup) as of 2019, highlights of 2^nd German Soccer Bundesliga and 2018 FIFA World Cup(TM) as well as further acceleration of eSports activities and successful launch of new video platform

- PLAZAMEDIA launches Europe's most state-of-the-art IP-based broadcast center

- Framework production agreement between PLAZAMEDIA and Sky Deutschland, which was not extended mid-2017, burdens sales and earnings compared with same period last year

Ismaning, August 22, 2018 - Sales and earnings performance in the Constantin Medien Group were below its own expectations in the first half of 2018. The year-on-year comparison is significantly influenced by the deconsolidation of Highlight Communications AG effective June 12, 2017. Furthermore, sales and EBIT in the Segment Sports were down year-on-year, especially due to the non-extension of the framework production agreement between PLAZAMEDIA GmbH and Sky Deutschland effective mid-2017. Taking this into account and despite high legal and consulting costs - including for the legal review of the activities of former boards - as well as a final interest charge for the now repaid 2013/2018 corporate bond and non-recurring tax expenses resulting from the completion of the takeover bid by Highlight Communications AG and Studhalter Investment AG, the Management Board confirms the forecast for the full year 2018, anticipating Group sales of between EUR 110 million and EUR 130 million and Group earnings attributable to shareholders of between EUR -1.5 million and EUR -4.5 million.

Shareholder structure with clear majority control
Following completion of the takeover bid by Highlight Communications AG and Studhalter Investment AG on February 13, 2018, Highlight Communications AG holds a total share of 78.38 percent in Constantin Medien AG.

Olaf Schröder, CEO of Constantin Medien AG: "Our Group has come a long way over the past nearly 12 months after its zigzag course in the previous years. In particular, we have ended legal disputes and have completely cleared the Group's debts by repaying the corporate bond in full. So now we can go back to focusing increasingly on the strategic orientation of our Group and our operative business in the sports media sector. We have, for example, further strengthened the positioning of SPORT1 as the leading 360 sports platform in the German-speaking countries, and in June we launched the most state-of-the-art IP-based broadcast center in Europe with our subsidiary PLAZAMEDIA.ˮ

Key figures of the Group H1 2018

- Group sales amounted to EUR 60.5 million, 69.8 percent down on the previous year's value of EUR 200.3 million. The decline in sales is primarily due to the deconsolidation of Highlight Communications AG as of June 12, 2017 and the operating business development in the Sports Segment, which was mainly influenced by the loss of sales from the production framework agreement between PLAZAMEDIA GmbH and Sky Deutschland Fernsehen GmbH & Co. KG that was not extended beyond June 30, 2017.

- Profit/loss from operations (EBIT) came to EUR -4.8 million compared with EUR 43.3 million in the first half of 2017. The year-on-year loss is primarily due to the aforementioned deconsolidation effect of Highlight Communications AG and the resulting non-recurring deconsolidation gain of EUR 38.3 million in the H1 2017. Lower staff costs, including from reducing the Management Board from three members to two, had a positive effect, but this was in contrast to high legal and consulting costs. The necessary review of certain business activities from previous years in the company and the resulting filing of corresponding claims, also against former boards, will be a strain on the company for a while yet.

- The financial result improved considerably, up EUR 5.1 million from EUR -5.6 million in the first half of 2017 to EUR -0.5 million a year later. Under the present conditions with no further interest payments to be made, the financial result is expected to noticeably and permanently improve going forward.

- The tax result of EUR -1.1 million in the H1 2018 was decisively influenced by the one-time reversal of deferred tax assets on tax-loss carryforwards, which ceased to apply in Q1 2018 due to the change of control at Constantin Medien AG due to the completion of the takeover bid by Highlight Communications AG and Studhalter Investment AG.

- The Group earnings attributable to shareholders in the first half of 2018 amounted to EUR -6.4 million for the aforementioned reasons. The loss compared to the same period last year is primarily due to the aforementioned deconsolidation of Highlight Communications AG and the resulting non-recurring deconsolidation gain of EUR 38.3 million in the H1 2017.

- As at the cut-off date of June 30, 2018, the Constantin Medien Group reported net liquidity of EUR 21.1 million, compared with net debt of EUR 43.0 million as at December 31, 2017.

Outlook for the 2018 financial year

The Management Board of Constantin Medien AG is confident of achieving its present Group forecast for the 2018 financial year, anticipating Group sales of between EUR 110 million and EUR 130 million, and Group earnings attributable to shareholders of between EUR -1.5 million and EUR -4.5 million.

The Constantin Medien Group at a glance

Group results according to IFRS

in EUR millions	H1 2018	H1 2017	Change in %
Sales	60.5	200.3	-69.8
EBIT	-4.8	43.3	-
Group earnings for shareholders	-6.4	34.8	-
Earnings per share (in EUR)	-0.07	0.37	-
Segment sales
Sports	60.5	75.6	-20.0
Film*	-	100.3	-
Sports- and Event-Marketing*	-	24.4	-
Segment earnings
Sports	-2.1	1.9	-
Film*	-	-3.9	-
Sports- and Event-Marketing*	-	9.6	-
Other	-2.7	35.6	-
in EUR millions	6/30/2018	12/31/2017	Change in %
Balance sheet total	98.6	175.1	-43.7
Equity	59.4	62.9	-5.6
Equity ratio (%)	60.3	35.9	+24.4 percentage points
Net liquidity/debt	21.1	-43.0	-

*Includes the period 1/1 to 6/12/2017 The Interim Financial Report of Constantin Medien AG as at June 30, 2018 (German version) is available on the company's website (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