EUROPACORP (EPA:ECP) - Consolidated revenue and profit – H1 FY2015/2016

Transparency directive : regulatory news

24/12/2015 08:00

PRESS RELEASE

                   Consolidated revenue and profit - H1 FY2015/2016

                       Consolidated revenue of EUR76.6 million
                         Operating margin of EUR20.7 million

* Operating margin remained high despite lower activity : 27.1%
* Significant investment in support of the international development strategy
* Half-year net income was affected by :
  - the recognition of all US distribution costs for The Transporter - Refueled,
    released in theaters at the end of the half-year, and whose US revenues
    will for the most part be recognized starting in the second half of the
    current year
  - a half-year financial loss of EUR7.6 million, impacted by unrealized
    currency effects and interest expense on credit facilities

Saint-Denis, December 24, 2015 - EuropaCorp, producer and distributor of
feature films and one of Europe's leading independent film studios, today
announces its consolidated revenue and results for the six months as of
September 30, 2015.

Consolidated half-year results

Consolidated net income (EURm)   Sept. 30, 2015    Sept. 30, 2014
                                    6 months          6 months
Revenue                               76.6             98.0
Cost of sales                        (55.9)           (69.1)
Operating margin                      20.7             28.9
% of revenue                                 27%                29%
Operating profit (loss)               (4.1)             7.6
% of revenue                                                     8%
Financial income                      (7.6)             4.0
Net income - Group share              (3.5)             7.3
% of revenue                                                     7%

The consolidated financial statements for the first half of FY2015/2016 show
consolidated revenue of EUR76.6 million, compared with EUR98.0 million in the
first half of the previous financial year, hence a decline of 21.8%.

International Sales totaled EUR36.4 million, or 47.5% of total revenue. The
revenue of this business was mainly derived from international deliveries of
The Transporter - Refueled and royalties received on the film catalog (notably
Lucy and Colombiana).

Revenue related to the Cinemas business amounted to EUR8.1 million, breaking
down as EUR2.8 million in France and EUR5.2 million in the United States.
Activity was marked by the release of the following films:
- Buddy Guards on April 15 (147 thousand admissions);
- A Love You on April 24 (27 thousand admissions);
- The Transporter - Refueled on September 4 in the United States and September
  9 in France (as of September 30, 2015, $15.8 million in domestic box office
  (1) receipts, and 492 thousand admissions in France).

Revenue from the Video and VOD business in France amounted to EUR7.0 million, or
9.1% of the period's total revenue, compared with EUR3.7 million for the first
half of FY2014/2015. This business in France, highlighted mainly by the releases
of Taken 3 and Bis, had revenue of EUR5.3 million. Meanwhile, activity in the
United States contributed EUR1.7 million thanks to the release of Big Game,
mainly in VOD.

Revenue related to Television rights rose over the period to EUR11.1 million, or
14.5% of total revenue, compared with EUR9.2 million in the first half of
FY2014/2015. This revenue mainly reflects the start of broadcast rights windows
during the period for Lucy, Malavita (The Family) and It Boy in the French
market and for Big Game in the U.S. market.

In the first half of FY2015/2016, the TV Series business generated revenue of
EUR3.4 million, or 4.4% of half-year revenue. Few deliveries took place during
the period, which was marked primarily by the continued exploitation of Taxi
Brooklyn and the delivery to France 3 of the TV film Les Années Perdues.

The Events activity generated revenue of EUR2.0 million, compared with EUR1.4
million in the six months to September 30, 2014, corresponding to events
organized at the Cité du Cinéma and elsewhere during the period.

The revenue of the Multiplexes business was EUR3.3 million in the first half of
FY2015/2016, compared with EUR2.7 million in the first half of FY2014/2015,
growth of 22% attributable chiefly to an increase in attendance. Over the
period, the number of admissions totaled 338 thousand, compared with 257
thousand in the first half of 2014/2015.

Revenue from Subsidies, chiefly generated by Production activities (including TV
productions), Distribution in cinemas, Video releases and Theatrical
exploitation, was EUR2.4 million, compared with EUR4.9 million in the first half
of FY2014/2015.

The Other activities (EUR2.9 million) mainly comprise the partnerships,
licensing, music publishing and postproduction activities.

The consolidated operating margin stood at EUR20.7 million, or 27.1% of the
half-year's revenue, compared with EUR28.9 million or 29.5% of revenue for the
same period the previous year. Operating margin remained high (over 27%)
primarily due to the significant contribution of International Sales during the
half-year.

Half-year financial income was a loss of EUR7.6 million, compared with a profit
of EUR4.0 million in the six months to September 30, 2014, and was mainly
affected by interest expense incurred during the period, notably on Senior and
Secondary credit facilities, as well as unrealized foreign currency effects.

Taking into account a positive tax effect of EUR9.0 million, half-year net
income - Group share was a loss of EUR3.5 million.

Cash flows from operations amounted to EUR21.6 million, down compared with the
first half of the previous fiscal year. This decline was the result of a lighter
film release schedule during the first half of FY2015/2016, as well as the
success of Lucy in the first half of the previous year (5.2 million admissions
in France).

During the first half, the Group invested EUR84.6 million in the production of
films and TV series, an increase of nearly 8% compared to the first half of
2014/2015.

Investments were primarily focused on the production of English-language films
with strong international potential, which will provide the line-up for the
current and upcoming fiscal year.

The Group confirmed its strategy to develop its line-up of international
productions through several projects with strong revenue potential.

(1) Domestic box office includes receipts within the borders of the United
States and Canada.

Prospects
Several high-potential films in English are currently in post-production:
- Shut in, directed by Farren Blackburn, with Naomi Watts in the leading role,
and Oliver Platt, Charlie Heaton, Jacob Tremblay, David Cubitt and Clémentine
Poidatz;
- The Lake, written and produced by Luc Besson and directed by Steven Quale
(Into the Storm), starring Sullivan Stapleton (300: Rise of an Empire);
- Nine Lives, the next film directed by Barry Sonnenfeld (the Men In Black
trilogy, The Addams Family etc.), starring Kevin Spacey, Jennifer Garner and
Christopher Walken;
- Warrior's Gate, the first French-Chinese coproduction between EuropaCorp and
Fundamental Films, directed by Matthias Hoene with Uriah Shelton, Dave Bautista
and Mark Zhao.

The second half of the fiscal year will also see production start on Miss
Sloane, directed by John Madden, with Jessica Chastain in the title role.

Moreover, the next science-fiction film directed by Luc Besson, Valerian and the
City of a Thousand Planets, announced during the last Cannes Festival, is due to
start shooting in France in January 2016 with a view to a release in the United
States on July 21, 2017. Adapted from the graphic novel of the same name, it
will feature Cara Delevingne, Dane DeHaan, Clive Owen, Rihanna, Ethan Hawke and
Herbie Hancock.
With regard to films shot in French language, Stop Me Here, directed by Gilles
Bannier and with Reda Kateb, Léa Drucker and Gilles Cohen, will open in French
theaters January 6, 2016, while Hopefully, the next film starring Sandrine
Kiberlain and directed by Benoît Graffin, will open on January 27, 2016.

In terms of the TV Series business, the eight episodes of the series Section
Zero, directed by Olivier Marchal will be delivered to Canal+ in the second half
of the year. In addition, several single-episode programs will be put into
production, including one from the Mary Higgins-Clark collection. Lastly, three
new English-language TV series are in development and are under agreement with
North American networks:
- Taken, a 10-episodes prequel to the hit trilogy, coproduced with Universal
  Studios for NBC. Alexander Cary (Homeland) will be the showrunner;
- These Final Hours, for which the pilot is in development for Fox. The script
  will be written by Zak Hilditch, the writer and director of the original
  Australian film from which this adaptation was made; and
- Janus, the remake of an Austrian series on the public network ORF, for which
  the pilot is in development for ABC.

2015/2016 financial calendar

May 2016 Annual 2015/2016 revenue
June 2016 Consolidated annual 2015/2016 income

ABOUT EUROPACORP

EuropaCorp is one of Europe's leading film studios. Founded in 1999, EuropaCorp
has operations spanning production, theatrical distribution, video and VOD, and
French TV sales, as well as the operation of theaters since the opening of the
first EuropaCorp multiplex in Aéroville in 2013. EuropaCorp also has
international rights, partnerships and licensing, production and soundtrack
publishing activities. The Group has also been producing TV series since 2010.
EuropaCorp's integrated business model allows it to benefit from diversified
sources of revenue. With a line-up boasting various types of films and a very
strong foothold in international markets, the Group has produced France's
biggest international hits in recent years. In February 2014, EuropaCorp joined
forces with Relativity Media to create RED, a distribution joint venture in the
United States, allowing it to fully control its distribution in the United
States and maximize the visibility of its films in international markets.
EuropaCorp was founded by French filmmaker, screenwriter and producer Luc
Besson. The Group owns a catalog of 500 movies and has 150 permanent employees.
For more information, go to www.europacorp-corporate.com

Contacts
Groupe EuropaCorp                            CLAI
Pierre-André Junne - Investor Relations      Victor Boury
investors@europacorp.com                     victor.boury@clai2.com
Tel.: +33 (0)1 55 99 50 00                   Tel.: +33 (0)1 44 69 54 00

EuropaCorp is listed in Compartment C of Euronext Paris, a market of the NYSE
Euronext Group
ISIN code: FR0010490920 - Ticker: ECP

Appendix

H1 2015/2016 revenue

Revenue by
business line
(ЕURm)                  Q1      Q1       Q2        Q2      H1       H1
                    2015/16  2014/15  2015/16  2014/15  2015/16  2014/15   Var.
International Sales    3.6     8.5     32.7      29.6     36.4     38.1   -4.6%
% of revenue          20.8%   38.2%    55.3%     39.1%    47.5%    38.9%
Cinema                 0.6     1.9      7.5      14.6      8.1     16.5  -51.2%
% of revenue           3.3%    8.4%    12.6%     19.3%    10.5%    16.8%
Video & VOD            4.9     2.0      2.1       1.7      7.0      3.7   89.3%
% of revenue          27.9%    9.0%     3.6%      2.3%     9.1%     3.8%
Television             1.8     2.0      9.3       7.2     11.1      9.2   21.1%
% of revenue          10.3%    8.9%     15.8%     9.5%    14.5%     9.4%
Subsidy                0.9     1.7      1.5       3.2      2.4      4.9  -50.3%
% of revenue           5.1%    7.8%     2.6%      4.2%     3.2%     5.0%
TV series              1.5     3.6      1.9      15.1      3.4     18.7  -81.9%
% of revenue           8.3%   16.2%     3.3%     19.9%     4.4%    19.1%
Events                 1.0     0.4      1.1       0.9      2.0      1.4   46.0%
% of revenue           5.5%    2.0%     1.8%      1.2%     2.7%     1.4%
Multiplexes            1.7     1.2      1.6       1.4      3.3      2.7   20.5%
% of revenue           9.7%    5.6%     2.6%      1.9%     4.2%     2.7%
Other                  1.6     0.9      1.4       2.0      2.9      2.9    1.4%
% of revenue           9.0%    4.0%     2.3%      2.6%     3.8%     2.9%
TOTAL                 17.5    22.3      59.1      75.8    76.6      98.0 -21.8%

EUROPACORP's latest news

14/02/2024 19:30

EUROPACORP (EPA:ECP) - Consolidated revenue and profit – H1 FY2015/2016

Transparency directive : regulatory news

EUROPACORP's latest news

Other stories