Earnings Release • Nov 28, 2012
Earnings Release
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Saint-Denis, 28 November 2012 – EUROPACORP (FR0010490920), the producer and distributor of feature films and one of the leading independent film studios in Europe, today announces its half-year consolidated revenue and earnings at 30 September 2012.
| 30 Sept. 2012 | 30 Sept. 2011 | |||
|---|---|---|---|---|
| Consolidated results (€m) | (6 months) | (6 months) | ||
| Revenue | 82.1 | 70.6 | ||
| Cost of sales | -51.8 | -64.2 | ||
| Operating margin | 30.3 | 6.3 | ||
| % of revenue | 37% | 9% | ||
| Operating income | 18.5 | -5.9 | ||
| % of revenue | 23% | -8% | ||
| Financial income | 0.3 | -4.0 | ||
| Earnings (excluding minorities) | 12.0 | -12.6 | ||
| % of revenue | 15% | -18% |
The consolidated financial statements for H1 FY 2012/2013 show consolidated revenue of €82.1 million, compared to €70.6 million for H1 FY 2011/2012, an increase of 16%.
International Sales have increased sharply year over year (+20%) at €46.8 million, representing 57% of total revenue.
They are primarily driven by the first international deliveries of Taken 2 and by royalties received in North America for Colombiana and Taken. This trend confirms the relevance of the studio's strategic decision to invest in English-language films with strong international potential.
Video & VOD revenue is €5.3 million compared to €4.8 million for H1 FY 2011/2012 (+11%). VOD accounts for 21% of segment revenue. The main video releases were Lock Out, The Lady and Love Lasts 3 Years.
Revenue from television rights is recognised when each film broadcast window opens. Over the half-year the opening of these windows generated revenue of €19 million compared to €13 million during H1 FY 2011/2012.
During the half-year, the TV Series segment generated revenue of €5.6 million compared to €3.4 million for H1 FY 2011/2012. This result is primarily due to the delivery of the mini-series Flight of the Storks to Canal+ during the half-year.
This sharp rise in Group consolidated revenue was achieved despite the revenue for the Cinemas, France segment of €1.8 million declining significantly year over year (down from €4.1 million). This is due to the reduced number of theatrical releases in France over the half-year.
The Group posted a consolidated operating margin of €30.3 million (37% of revenue) compared to €6.3 million (9% of revenue) for H1 FY 2011/2012. This upturn in the Group's operating margin can be explained by the combined effect of rising revenue and falling sales costs. During the first half of the previous fiscal year the cost of sales was exceptionally high due to the Group's ad hoc decision to pay all Colombiana's theatrical promotion and advertising expenses (around €23m) in North America.
The operating margin was also buoyed by the Television, France segment, which generates healthy margins and enjoyed strong year-over-year growth.
The financial income for the half-year is €0.3 million, compared to a loss of €4 million at 30 September 2011. The main factors that impacted the financial income are the discounting of the debts on Sofica EuropaCorp and EuropaCorp Television securities, as well as the period-end valuation of foreign exchange hedging instruments.
After an income tax expense of €6 million, the half-year earnings, excluding minorities, are €12.0 million compared to a loss of €12.6 million for H1 FY 2011/2012, an increase in earnings of €24.6 million.
These half-year earnings of €12m are the highest EuropaCorp has ever recorded over a full fiscal year since its flotation on the stock market.
The Group recorded film investments of €43.9 million during the half-year, compared to €10.9 million for H1 FY 2011/2012. This more sustained level of investment will give the Group the benefit of a production line-up that is both rich and diversified.
The cash flows from operations during the half-year totalled €56.8 million compared to €30.6 million during H1 FY 2011/2012. This change is directly connected to the significant inflows recorded over the half-year following the international deliveries of Taken 2.
The start of H2 FY 2012/2013 was marked by the worldwide success of Taken 2. The film has already recorded 2.9 million admissions in France and to date totalled global box office takings of more than \$350 million. These figures mean that Taken 2 is the French film that has enjoyed the greatest international success.
In addition to Taken 2, the line-up for the second half-year will be deeper than for the first half-year. Releases scheduled for H2 include The Man Who Laughs (directed by Jean-Pierre Améris, with Gérard Depardieu and Marc-André Grondin), Operación E (directed by Miguel Courtois), The Journey (starring Vincent Perez, directed by Philippe Lellouche), Intersections (starring Roschdy Zem, Jaimie Alexander and Frank Grillo, directed by David Marconi), Mobius (Jean Dujardin's next film, directed by Eric Rochant) and It Boy (directed by David Moreau, starring Virginie Efira).
Malavita, the forthcoming film directed by Luc Besson, starring Robert de Niro, Michelle Pfeiffer and Tommy Lee Jones, and World Petank Tour, starring Gérard Depardieu, Edouard Baer and Virginie Efira, are now in postproduction. They are scheduled for release in FY 2013/2014.
Shooting for Three Days to Kill, starring Kevin Costner, will start on 5 December 2012.
For the TV Series segment, the second half-year will see increased business, in particular with the delivery of six episodes of the series No Limit, which generated exceptional viewing figures when the first four episodes aired on TF1 on 15 November 2012 (more than 7 million viewers) and 22 November 2012.
The second half-year will also be marked by the delivery of season two of the series XIII (Canal+ and M6) as well as the feature-length drama Code Name Rose (TF1).
The projects Brooklyn South, No Limit Season 2, The Lost Patrol and The Passenger are in the development phase, as well as Life after life, the first English-language series based on an original idea by Luc Besson.
The Group continues to honour the commitments made in its strategic three-year plan:
All of the actions taken since the announcement of the strategic plan have enabled the Group to confirm the objectives it announced at that time.
14/02/2013: Q3 revenue 2012/2013 23/05/2013: Annual revenue 2012/2013 27/06/2013: Consolidated annual revenue 2012/2013
EuropaCorp ranks amongst the top European film studios. Founded in 1999, EuropaCorp's different activities include production, theater distribution, home entertainment, VOD, sales of TV rights for France as well as sales of international rights, partnerships and licenses, original soundtrack production and publishing. The Group has also been producing TV drama since 2010. EuropaCorp's integrated financial model generates revenues from a wide range of sources. With films from a wide range of genres and a strong presence in the international market, the Group has produced some of the latest French worldwide record-breaking successes. EuropaCorp's catalogue includes 500 films and the company employs 120 permanent staff members.
For more information go to www.europacorp-corporate.com
EuropaCorp Group Image Sept Olivier Roullet - Investor Relations Sylvie Ruggieri - Fabrice Rémon Tel: +33 1 55 99 50 00 Tel: +33 1 53 70 74 70
[email protected] [email protected] / [email protected]
EuropaCorp is listed on Euronext Paris – Compartment C by NYSE Euronext ISIN: FR0010490920 – Mnemonic: ECP
| Revenue by segment (€m) | Q1 2012/13 |
Q1 2011/12 |
Q2 2012/13 |
Q2 2011/12 |
H1 2012/13 |
H1 2011/12 |
Δ |
|---|---|---|---|---|---|---|---|
| International Sales | 8,3 | 4,0 | 38,5 | 34,9 | 46,8 | 38,9 | 20.3% |
| % of revenue | 37.7% | 21.0% | 64.1% | 67.9% | 57.0% | 55.1% | |
| Cinemas, France | 1.3 | 2.1 | 0.5 | 1.9 | 1.8 | 4.1 | -56.6% |
| % of revenue | 5.9% | 11.1% | 0.8% | 3.7% | 2.2% | 5.7% | |
| Video & VOD, France | 3.2 | 2.8 | 2.1 | 2.0 | 5.3 | 4.8 | 11.4% |
| % of revenue | 14.6% | 14.6% | 3.5% | 3.9% | 6.5% | 6.8% | |
| Television France | 7.9 | 6.1 | 11.2 | 6.9 | 19.0 | 13.0 | 46.4% |
| % of revenue | 35.9% | 32.0% | 18.6% | 13.3% | 23.2% | 18.4% | |
| Subsidies | 0.7 | 1.9 | 0.2 | 0.6 | 0.9 | 2.6 | -65.1% |
| % of revenue | 3.3% | 10.1% | 0.3% | 1.3% | 1.1% | 3.7% | |
| TV Series | 0.0 | 0.5 | 5.6 | 2.9 | 5.6 | 3.4 | 64.1% |
| % of revenue | 0.1% | 2.8% | 9.2% | 5.6% | 6.8% | 4.8% | |
| Other Activities | 0.5 | 1.6 | 2.1 | 2.2 | 2.6 | 3.8 | -31.0% |
| % of revenue | 2.4% | 8.4% | 3.5% | 4.3% | 3.2% | 5.4% | |
| TOTAL | 21.9 | 19.2 | 60.1 | 51.4 | 82.1 | 70.6 | 16.3% |
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