DGAP-News: Highlight Group in line with planning after six months

Highlight Group in line with planning after six months

- Consolidated sales rise by 33.7% to CHF 214.5 million

- EBIT significantly improved by 46.4% to CHF 10.1 million

- Consolidated net profit for the period at CHF 3.2 million

Constantin Medien AG was fully consolidated in the half-year financial statements of the Highlight Group for the first time.

Group development in the first half of 2018 *

• Consolidated sales increased by CHF 54.1 million year-on-year to CHF 214.5 million. The increase results from the first-time consolidation of Constantin Medien AG on the one hand (CHF 37.3 million) and from the Film segment on the other. In particular, this was thanks to the extraordinarily good sales figures for the hit movies "Ostwind - Aufbruch nach Ora" and "Fack Ju Göhte 3" in home entertainment exploitation.
   
• Consolidated operating expenses increased by CHF 43.8 million to CHF 282.1 million (previous year's period: CHF 238.3 million). This development primarily resulted from increases in the cost of materials and licenses (CHF 18.8 million), staff costs (CHF 8.7 million) and other operating expenses (CHF 10.5 million).
   
• EBIT improved by 46.4% from CHF 6.9 million to CHF 10.1 million.
   
• As a result of higher financing costs and a rise in tax expenses, the consolidated net profit for the period was down on the previous year's level (CHF 4.4 million) at CHF 3.2 million. The same applies to the share of earnings attributable to Highlight shareholders, which declined from CHF 4.0 million to CHF 3.3 million.
   
• Consolidated equity (including non-controlling interests) totaled CHF 215.8 million as of the end of the first half of 2018. The decline of CHF 20.6 million as against December 31, 2017 essentially results from the first-time consolidation of Constantin Medien AG.

* It should be noted regarding the statements on the development of sales and earnings that Constantin Medien AG was included in consolidation for the first time effective March 31, 2018, and was allocated to the new Sports segment. As the prior-year figures for the Highlight Group have not been adjusted, comparisons with the first half of 2017 are of limited significance only.

The Highlight Group is continuing to forecast consolidated sales of between CHF 520 million and CHF 540 million as well as a consolidated net profit attributable to shareholders of between CHF 18 million and CHF 20 million for 2018 as a whole.

Following the successful takeover bid and the first-time consolidation of Constantin Medien AG by Highlight Communications AG as of March 31, 2018, Dr. Paul Graf and the Board of Directors of Highlight Communications AG agreed at their meeting today that Dr. Graf will resume his old functions at Highlight Communications AG in full as of September 1, 2018. These functions were temporarily suspended after Dr. Graf was elected as the Chairman of the Supervisory Board of Constantin Medien AG. Dr. Paul Graf will continue to perform the duties of the office of Chairman of the Supervisory Board of Constantin Medien AG.

The German interim report as of June 30, 2018 will be available for download at www.highlight-communications.ch starting from today, and the English version from August 28, 2018.