DGAP-News: Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic
DGAP-News: Highlight Communications AG
/ Key word(s): Quarterly / Interim Statement
Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic
10.11.2020 / 15:00
The issuer is solely responsible for the content of this announcement.
Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic.
Group performance leads to clearly positive earnings figures in first nine months of 2020
Consolidated sales fell by 23.1% as of the end of the first nine months year-on-year to CHF 272.0 million due to COVID-19: Sales in the Film segment declined by CHF 60.5 million to CHF 162.6 million. This was mainly due to the loss of theatrical distribution and service production sales on account of the COVID-19 pandemic. Owing to the pandemic situation, filming did not begin on any new theatrical productions in the third quarter of 2020. The conventional home entertainment market as a whole remained on a downward trajectory, while digital distribution forms continued to grow in significance. The slight decrease in the external sales of the Sport- and Event-Marketing segment by CHF 1.9 million to CHF 46.9 million essentially reflects currency effects. The sales decline in the Sports segment by CHF 19.5 million year on year to CHF 62.4 million relates in particular to reduced advertising revenue on account of the cancellation of sporting events.Nonetheless, the Highlight Group once again proved its earnings strength in all key earning figures: EBIT improved by CHF 1.9 million or 9.8% to CHF 20.2 million. The higher EBIT resulted chiefly from the Film segment, which contributed CHF 12.6 million to earnings, its contribution thus considerably higher than in the previous year (CHF 9.4 million). This was thanks to lower costs, in particular on account of the suspension/break in movie and TV service productions due to the coronavirus. The consolidated net profit of the period was CHF 7.9 million, which is significantly higher than the prior year figure of CHF 5.7 million.
The Highlight Group also has a sound financial position: At CHF 202.3 million consolidated equity was up by CHF 4.6 million as against the end of 2019. The equity ratio was 30.6% as of the end of the third quarter of 2020 (December 31, 2019: 29.3%).
The quarterly statement as of September 30, 2020 is available for download at www.highlight-communications.ch from today.
The Highlight Group at a glance Group figures (IFRS) CHF million 3Q 2020 3Q 2019 Change in % Sales 272.0 353.6 -23.1 EBIT 20.2 18.3 9.8 Consolidated net profit (after taxes) 7.9 5.7 38.1 Net profit attributable to shareholders 8.0 6,3 26.5 Earnings per share (in CHF) 0.14 0.11 27.3 Segment sales Film 162.6 223.2 -27.1 Sport- and Event-Marketing 46.9 48.8 -3.9 Sports 62.4 81.9 -23.8 Segment earnings Film 12.6 9.4 33.2 Sport- und Event-Marketing 22.3 24.3 -8.4 Sport -10.5 -9.6 n/a CHF million 30.9.2019 31.12.2019 Change in % Total assets 661.9 673.9 -1.8 Equity 202.3 197.7 2.3 Equity ratio (%) 30.6 29.3 1.3 points Current financial liabilities 69.5 66.7 4.3 Cash and cash equivalents 33.6 53.0 -36.6 For further information: Highlight Communications AG Investor Relations Netzibodenstrasse 23b CH-4133 Pratteln BL Telefon: +41 (0)61 816 96 91 E-Mail: ir@hlcom.ch
10.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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1146913 10.11.2020