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Tivoli A/S

Annual Report Mar 15, 2019

3418_10-k_2019-03-15_6e8ab68e-a69d-401f-b288-634fd436b7ce.pdf

Annual Report

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Contents

  • A word from the chairman
  • Five years' key figures
  • Financial Review
  • Shareholder Information
  • Income Statement
  • Cash Flow Statement
  • Balance Sheet
  • Statement of changes in Equity
  • Notes

A WORD FROM THE CHAIRMAN:

"What an anniversary year it was"

There is a lot to be pleased with looking back at 2018. Tivoli celebrated its 175th anniversary with a wide range of new activities, and with the opening of the new Winter in Tivoli season in February, Tivoli has truly become a year-round business.

The anniversary year was celebrated with, among other events, an Anniversary Parade, inauguration of the new ride, Tik Tak as well as a visit from the New York City Ballet. The year-round operation of the Tivoli Corner and the other shops on the edge of Tivoli plays an important part of our strategy. Another important part is the use of our Halls, which in 2018 saw a very high activity level and all-time high box office sales of about 400,000 tickets. The new season, Winter in Tivoli, was well received boasting almost 10,000 visitors per day. With Winter in Tivoli in the first quarter, Tivoli is now open in all quarters of the year. In 2018, the Gardens were open to visitors 282 days in total, which is 39 days more than 2017 and the highest number of opening days ever.

Tivoli's newer business areas were also developed in 2018. Tivoli has acquired 50% of the Rasmus Klump (Petzi) rights from Egmont. The partnership will develop the well-known character and, going forward, Rasmus Klump will live in Tivoli.

4

Digitalization is an important focus area of Tivoli. The Tivoli Pass was introduced in 2018 in replacement of the annual card. Monthly payment is now possible, and the Tivoli Pass is valid from the date of purchase instead of the calendar year. With the Tivoli APP, the Tivoli Pass is always close at hand. The model has been high in demand and has now been technically enabled.

Tivoli's development matters to all of Copenhagen. In 2018, Lonely Planet, which issues travel guides and writes about exciting destinations, chose Copenhagen as the must-visit city in 2019. One of the main reasons for the honour is that Winter in Tivoli and the Copenhagen Light Festival make February very special. Tivoli was also on the Time Magazine's World's 100 Greatest Places List.

The increased awareness of the industry demands, among other things, great accessibility by flight, train and ship, and that Copenhagen has a good and well-arranged infrastructure that makes it easy for tourists to navigate. That obligates legislators and approval authorities to continuously focus on these aspects in order for tourism to develop sustainably and for the benefit of Danish economy.

Attendance figures for the year reached 4.85 million visitors, which is an 11% increase compared to 2017 and the highest attendance level in recent years. Revenue for 2018 amounted to DKK 1.5 billion including tenants and lessees and to DKK 1.1 billion excluding tenants and lessees. Profit before tax for 2018 amounted to DKK 120.6 million, which is a 20% increase compared to last year. The high attendance figures, all-time high revenue of more than DKK 1 billion and the highest profit in Tivoli's history confirm that Tivoli has succeeded in becoming a year-round business. The significant investments in Tivoli's anniversary has progressed activity in the Gardens, and both the core business, the Gardens in Vesterbrogade 3, and the new activities are showing momentum, which promises well for the future business and visitors to the Gardens.

Tom Knutzen

Chairman of the Board of Directors

Tivoli's collaboration with Normann Copenhagenaround a large design collection with starting point in Tivoli was introduced in 2018.

Financial Performance 2018

FIVE YEARS' KEY FIGURES 2018 2017 2016 2015 2014
DKK million
Revenue
incl.
tenants
and
lessees
1,519.5 1,283.8 1,294.0 1,331.8 1,240.7
Revenue 1,058.8 938.5 939.0 948.0 857.0
Net
revenue
1,058.8 938.5 933.1 943.3 852.6
Expenses
before
depreciation,
amortisation
and
impairment
-836.7 -749.2 -751.8 -785.0 -711.0
Earnings
before
interest,
tax,
depreciation
and
amortisation
(EBITDA)
222.1 189.3 187.2 163.0 146.0
Depreciation, amortisation and impairment -91.0 -84.6 -87.2 -94.0 -84.4
Earnings
before
interest
and
tax
(EBIT)
131.1 104.7 100.0 69.0 61.6
Net
financials
-10.5 -4.2 -3.7 -4.9 -5.2
Profit
before
tax
120.6 100.5 96.3 64.1 56.4
Profit for the year 94.2 78.5 75.3 43.8 44.4
Comprehensive income for the year 93.3 79.9 69.2 45.9 40.0
Non-current
assets
1,423.7 1,335.6 1,096.7 904.8 910.1
Current
assets
181.3 212.6 93.3 139.3 121.6
Total assets 1,605.0 1,548.2 1,190.0 1,044.1 1,031.7
Share capital 57.2 57.2 57.2 57.2 57.2
Equity 920.4 846.7 785.6 727.4 692.6
Non-current
liabilities
399.5 412.5 80.3 89.3 94.5
Current
liabilities
285.1 289.0 324.1 227.4 244.6
Invested capital 1,250.2 1,192.4 997.6 751.2 769.0
Investment
in
property,
plant
and
equipment
131.8 309.8 279.1 92.1 84.6
Cash
flows
from
operating
activities
184.5 188.8 160.1 148.2 167.2
Cash
flows
from
investing
activities
-179.1 -323.5 -279.1 -92.1 -90.2
Hereof
invested
in
property,
plant
and
equipment
-131.8 -309.8 -279.1 -92.1 -84.6
Cash
flows
from
financing
activities
-43.4 243.8 69.0 -27.2 -70.1
Total cash flows -38.0 109.1 -50.0 28.9 6.9
FIVE YEARS' RATIOS 2018 2017 2016 2015 2014
EBIT
margin
12% 11% 11% 7% 7%
Solvency ratio 57% 55% 66% 70% 67%
Return
on
equity
(ROE)
11% 10% 10% 6% 6%
Earnings
in
DKK,
per
share
of
DKK
10
(EPS)*
16.5 13.7 13.2 7.7 7.8
Dividend
in
DKK,
per
share
of
DKK
10*
4.1 3.4 3.3 1.9 2.0
Share
price
in
DKK,
end
of
year*
632 590 441 382 304
Number
of
employees
960 885 868 886 810

Financial review

Consolidated revenue for 2018 amounted to DKK 1,058.8 million compared to DKK 938.5 million for 2017 (+13%). The positive development is primarily due to more visitors in the Gardens, a higher level of activity in the Halls as well as the Tivoli Corner, which was completed in November 2017.

Total attendance figures aggregated 4,854,000, which is 11% above the 2017 figure of 4,377,000. The higher attendance figures for 2018 are due to the new season, Winter in Tivoli, more opening days as well as a well-attended summer season, fuelled by the many anniversary activities, unlike 2017 when the summer season was negatively affected by the rainy summer weather. Tivoli's attendance figures for 2018 reached 232,000 visitors for the winter season, 3,033,000 visitors for the summer season, 519,000 visitors for Halloween season, 1,010,000 visitors for christmas season and 60,000 visitors for off-season periods.

Staff expenses and other external expenses aggregated DKK 836.7 million compared to DKK 749.2 million for 2017 (+12%). The higher level of cost is due to the many extra activities in 2018.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2018 amounted to DKK 222.1 million compared to DKK 189.3 million for 2017 (+17%). The higher earnings are primarily due to the higher level of activity.

Depreciation, amortisation and impairment amounted to DKK 91.0 million for 2018 compared to DKK 84.6 million for 2017 (+8%). The increase in depreciation, amortisation and impairment is due to the high investment level. The development in net financials is primarily due to interest expenses in connection with the funding of the Tivoli Corner.

Reported profit before tax for 2018 amounted to DKK 120.6 million compared to DKK 100.5 million for 2017, which is

DKK 20.1 million (20%) higher than last year's figure. Up until 2017, Tivoli received public cultural appropriations from the Danish State to cover certain loss-making activities of approx DKK 6.0 million. These appropriations were not received in 2018.

Tax on profit for the year amounted to DKK 26.4 million for 2018 compared to DKK 22.0 million for 2017. The effective tax rate was DKK 21.9% for 2018 compared to 21.9% for 2017, and is thus at last year's level.

Profit after tax for 2018 amounted to DKK 94.2 million compared to DKK 78.5 million for 2017 (+20%).

Profit before tax for the year corresponds to the expectations in the Stock Exchange Announcement of 15 August 2018 in which Tivoli upward adjusted the expectations to the profit before tax at the level of DKK 110-120 million.

Investments in intangible assets and property, plant and equipment for 2018 amounted to DKK 162.6 million compared to DKK 323.5 million for 2017. The investmentlevel is lowerthan 2017, but nevertheless higherthan Tivoli's normal investment level, which has historically been on the low side of DKK 100 million. The high investmentlevel is due to, among otherthings, the ride, Tik Tak, , the completion of the Tivoli Corner, preparations forthe Tivoli House as well as a large number of digitalization projects, including the new Tivoli Card and the Tivoli Lux loyalty programme which aim is to add new propositions for visitors to the Gardens and to improving general service.

The Group's assets amounted to DKK 1,605.0 million at 31 December 2018 compared to DKK 1,548.2 million at 31 December 2017. The increase is primarily due to the increased activity. The equity share of the balance sheet total (solvency ratio) represented 57%, which is slightly above the 31 December 2017 figure (55%).

The Board of Directors proposes distribution of dividend of 25% of the profit after tax for the year, corresponding to DKK 23.6 million compared to dividend of DKK 19.6 million for 2017. The remaining profit will thus be allocated to distributable reserves.

Tivoli segments

Games & Casino recorded a revenue of DKK 71.6 million for 2018, which is an 4% decrease on 2017. Earnings before interest, tax, depreciation and amortisation amounted to DKK 15.3 million for 2018, which is a 23% decrease on 2017. The lower earnings are primarily due to the lower level of activity as well as improved service to the users of Tivoli's online casino and the visitors to Tivoli's amusement arcades which increased their level of cost.

Tivoli is currently working on a strategic analysis of the Tivoli online casino business.

Food & Beverage recorded a revenue of DKK 149.6 million for 2018, which is a 3% increase compared to 2017. Earnings before interest, tax, depreciation and amortisation amounted to DKK 23.0 million for 2018, which is a 4% decrease compared to 2017. The higher revenue is due to, among other factors, more visitors to the Gardens. The reason for the slightly lower earnings is higher cost of sales due to increased focus on sustainability.

Tivoli High-End recorded a revenue of DKK 162.5 million for 2018, which is a 25% increase compared to 2017. Earnings before interest,tax, depreciation and amortisation amounted to DKK 30.7 million for 2018, which is a 131% increase compared to 2017. The higher revenue is due to the opening ofthe Tivoli Corner, which added 21 new rooms to the Nimb Hotel, increasing revenue ofthe Nimb restaurants as well as increased efficiency ofthe Nimb event business. The higher revenue and the higher earnings are due to the higher level of activity as well as to an improvement of earnings in this area.

Enterprise Rental recorded a revenue of DKK 83.0 million for 2018, which is a 26% increase on 2017. Earnings before interest, tax, depreciation and amortisation amounted to DKK 79.9 million for 2018, which is a 27% increase compared to 2017. The higher revenue and the higher earnings are primarily due to the opening of the Tivoli Corner.

Sales recorded a revenue of DKK 486.5 million for 2018, which is a 10% increase compared to 2017. Earnings before interest, tax, depreciation and amortisation amounted to DKK 401.6 million

for 2018, which is a 10% increase on 2017. The higher revenue and the higher earnings are due to more visitors to the Gardens as well as higher consumption per visitor. The higher revenue and the higher earnings are due to the higher level of activity.

Culture recorded a revenue of DKK 79.3 million for 2018, which is a 49% increase compared to 2017. Earnings before interest, tax, depreciation and amortisation amounted to a negative DKK 44.6 million for 2018, which is a 22% increase compared to 2017. The higher revenue and the earnings improvement are due to many visitors to the Halls. One of the reasons for the loss-making performance of Culture is that activities such as the Tivoli Youth Guard Band and classical music are not profitable.

Outlook for 2019

The weather and other external factors may have great impact on Tivoli's business and thus the development in profit for the year. Revenue for 2019 is expected to reach the level of 2018. Tivoli is expected to show a profit before tax for 2019 at the level of DKK 100 million before extraordinary items. The reason for the lower profit is the implementation of the Tivoli Pass. The Tivoli Pass gives access to the Gardens for 12 months from the date of sale; sales are recognised differently for accounting purposes than sales of the previous annual card. The previous annual card gave access to the Gardens in the calendar year only, which meant that all sales were recognised as from the date of sale to the next 31 December.

Subsequent events

No material events have occurred after the balance sheet date.

SEGMENTS IN TIVOLI

Total revenue 1,058.8 DKKm 100%

from the Tivoli Business Club.

46%

REVENUE INCL TENANTS AND LESSEES: 1,519.5 DKKm

SEGMENTS IN TIVOLI

Food & Beverage operates Tivoli's own restaurants, with the exception of six places operated by the High-End (Nimb). The restaurants include Mazzolis, wagamama, fast food outlets and bars for Friday Rock.

Theater, Tivoli-Garden, Friday Rock and Tivoli Summer Classic.

Unallocated includes royalties as well as invoicing of architects, cleaning and renovation.

Shareholder information

Tivoli A/S is listed on Nasdaq OMX Copenhagen. At 31 December 2018, the share capital amounted to DKK 57.2 million distributed on 5,716,660 shares of DKK 10. Each share amount of DKK 10 carries one vote. At 31 December 2018, the market price of 632 corresponded to a market capitalisation of DKK 3.6 billion. At 31 December 2017, the market price of 590 corresponded to a market capitalisation of DKK 3.4 billion.

Share price development

The following chart shows the share price development in the period from 31 December 2013 to 31 December 2018 compared with the OMXC20. Shareholders with a shareholding registered to their name with a nominal value of at least DKK 100 receive a Pass to Tivoli. The Pass entitles the holder and one companion to free admission to Tivoli in all Tivoli seasons. The entitlement to a Pass is decided upon by the Board of Directors for one year at a time. The Board of Directors regularly assesses the Group's capital and share structure. The share structure comprises solely A shares, and there are no plans of changing this structure. Moreover, the existing capital structure is considered adequate for the current business foundation.

Dividend policy and dividend

The Board of Directors has established a general policy for payment of dividend. It is the intention, in normal investment years, that dividend corresponding to 25% of the consolidated profit after tax is distributed. In years when investments are particularly high, the Board of Directors may decide that the dividend should deviate from the policy.

Tivoli A/S' profit after tax for 2018 amounted to DKK 94.2 million compared to DKK 78.5 million in 2017. The Board of Directors recommends to the Annual General Meeting distribution of dividend of 25% of the profit after tax for the year, corresponding to DKK 23,6 million compared to DKK 19.6 million last year. The remaining profit of the Group will be allocated to the Group's distributable reserves as the Group is also expecting a high level of investments in the coming years.

Shareholders

At 31 December 2018, Tivoli had 20,005 registered shareholders. According to the Group's register of shareholders, shareholdings in excess of 5% break down as follows:

  • Skandinavisk Holding A/S, Søborg, Denmark 31.8%
  • Chr. Augustinus Fabrikker Aktieselskab, Copenhagen, Denmark 25.4%
  • Clearstream Banking AS Nominee 5.0%

Tivolis A/S share price development compared with the OMXC20.

Investor relations (IR)

Tivoli aims to meet the stock exchange's disclosure obligations. Stock exchange notices are therefore submitted correct and timely to the Stock Exchange and published at the same time at www.tivoli.dk/en/om/virksomheden. Further company information and all published company announcements can also be found here. Inquiries regarding relations with investors and the stock market can be directed to the IR responsible: Dorthe Weinkouff Barsøe e-mail: [email protected].

SHARE AND DIVIDEND RATIOS* 2018 2017 2016 2015 2014
DKK million
Average
number
of
shares
('000)
5,716.7 5,716.7 5,716.7 5,716.7 5,716.7
Earnings
in
DKK,
per
share
of
DKK
10
(EPS)
16.5 13.7 13.2 7.7 7.8
Cash
flows
from
operating
activities
in
DKK
per
share
(CFPS)
32.3 33.1 28.0 25.9 29.2
Net
asset
value
in
DKK
per
share,
end
of
year
161 148 137 127 121
Share
price
in
DKK,
end
of
year
632 590 441 382 304
Dividend
in
DKK,
per
share
of
DKK
10
4.1 3.4 3.3 1.9 2.0
%
payout
ratio
25% 25% 25% 25% 25%
Price/earnings
ratio
(PE)
38 43 33 50 39
Price/cash
flow
(PCF)
20 18 16 15 10
Price/net
asset
value
(P/NAV)
3.9 4.0 3.2 3.0 2.5
INCOME STATEMENT 1 JANUARY - 31 DECEMBER GROUP PARENT COMPANY
NOTE DKK million 2018 2017 2018 2017
3,4 Net
revenue
1,058.8 938.5 1,058.8 938.5
Revenue 1,058.8 938.5 1,058.8 938.5
5 Other
external
expenses
-368.5 -330.2 -368.5 -330.2
6 Staff expenses -468.2 -419.0 -468.2 -419.0
Expenses -836.7 -749.2 -836.7 -749.2
EBITDA 222.1 189.3 222.1 189.3
12,13 Depreciation, amortisation and impairment -91.0 -84.6 -91.0 -84.6
EBIT 131.1 104.7 131.1 104.7
7 Financial income 1.1 0.5 1.1 0.5
7 Financial expenses -11.6 -4.7 -11.6 -4.7
Profit before tax 120.6 100.5 120.6 100.5
8 Tax
on
profit
for
the
year
-26.4 -22.0 -26.4 -22.0
Net profit 94.2 78.5 94.2 78.5
9 Earnings
in
DKK,
per
share
of
DKK
10
(EPS)
16.5 13.7
GROUP PARENT COMPANY
STATEMENT OF COMPREHENSIVE INCOME 2018 2017 2018 2017
Profit for the year 94.2 78.5 94.2 78.5
Items
subsequently
recycled
to
income
statement
Value
adjustments:
Value
adjustment
hedging
instruments
-1.0 1.8 -1.0 1.8
Other
adjustments:
Tax
on
value
adjustments
hedging
instruments
0.1 -0.4 0.1 -0.4
Total comprehensive income 93.3 79.9 93.3 79.9
CASH FLOW STATEMENT - 1 JANUARY - 31 DECEMBER GROUP PARENT COMPANY
NOTE DKK million 2018 2017 2018 2017
EBITDA 222.1 189.3 222.1 189.3
10 Change
in
working
capital
-27.4 24.6 -27.4 24.6
Cash
flows
from
operating
activities
before
financial
income
and
expenses
194.7 213.9 194.7 213.9
Financial income
Financial expenses
1.1
-11.6
0.5
-4.7
1.1
-11.6
0.5
-4.7
Cash
flows
from
operating
activities
before
tax
184.2 209.7 184.2 209.7
Corporation tax paid 0.3 -20.9 0.3 -20.9
Cash flows from operating activities 184.5 188.8 184.5 188.8
Purchase
of
subsidiary
and
associated
company
Purchase
of
property,
plant
and
equipment
-16.5
-162.6
0.0
-323.5
-0.4
-162.6
0.0
-323.5
Cash flows from investing activities -179.1 -323.5 -163.0 -323.5
11 Repayment
of
mortgage
loans
Raising
/
repayment
of
mortgage
loans
Raising
/
repayment
of
bank
overdraft
Raising
/
repayment
of
loan
from
associated
company
Intercompany wtih associated company
Shareholders:
Dividend
distributed
-5.3
-18.5
0.0
0.0
0.0
-19.6
-5.3
350.0
3.0
-85.1
0.0
-18.8
-5.3
-18.5
0.0
0.0
-16.5
-19.6
-5.3
350.0
3.0
-85.1
0.0
-18.8
Cash flows from financing activities -43.4 243.8 -59.9 243.8
Cash flows for the year -38.0 109.1 -38.4 109.1
Cash
and
cash
equivalents,
beginning
of
year
130.3 21.2 130.3 21.2
92.3 130.3 91.9 130.3
BALANCE SHEET AT 31 DECEMBER GROUP PARENT COMPANY
NOTE DKK million 2018 2017 2018 2017
ASSETS
12 Rights 15.8 5.6 15.8 5.6
12 Software 25.5 1.9 25.5 1.9
12 Work
in
progress
2.2 10.3 2.2 10.3
Intangible assets 43.5 17.8 43.5 17.8
13 Land
and
buildings
1,043.6 1,020.1 1,043.6 1,020.1
13 Other
fixtures
and
fittings,
tools
and
equipment
248.5 212.3 248.5 212.3
13 Assets
under
construction
and
prepayments
for
property,
plant
and
equipment
71.6 85.4 71.6 85.4
Property, plant and equipment 1,363.7 1,317.8 1,363.7 1,317.8
14 Investments
in
subsidiaries
0.0 0.0 0.4 0.0
15 Investement in associated company 16.5 0.0 0.0 0.0
Other non-current assets 16.5 0.0 0.4 0.0
Total non-current assets 1,423.7 1,335.6 1,407.6 1,335.6
17 Finished
goods
12.3 8.7 12.3 8.7
18 Trade receivables 41.6 37.7 41.6 37.7
Receivable tax 0.0 0.3 0.0 0.3
Other
receivables
24.4 25.8 24.4 25.8
Intercompany with associated company 0.0 0.0 16.5 0.0
19 Prepayments 7.2 8.1 7.2 8.1
Deposits 3.5 1.7 3.5 1.7
Cash at bank and in hand 92.3 130.3 91.9 130.3
Total current assets 181.3 212.6 197.4 212.6
Total assets
1,605.0 1,548.2 1,605.0 1,548.2
BALANCE SHEET AT 31 DECEMBER GROUP PARENT COMPANY
NOTE DKK million 2018 2017 2018 2017
LIABILITIES AND EQUITY
20 Share capital 57.2 57.2 57.2 57.2
Reserves 839.6 769.9 839.6 769.9
Proposed dividend 23.6 19.6 23.6 19.6
Total equity 920.4 846.7 920.4 846.7
21 Mortgage
loans
361.6 384.4 361.6 384.4
16 Deferred tax liabilities 37.9 28.1 37.9 28.1
Total non-current liabilities 399.5 412.5 399.5 412.5
21 Mortgage
loans
22.6 23.6 22.6 23.6
Trade payables 38.4 44.6 38.4 44.6
Corporation tax payable 16.3 0.0 16.3 0.0
23 Other
payables
138.7 128.8 138.7 128.8
24 Deferred income 69.1 92.0 69.1 92.0
Total current liabilities 285.1 289.0 285.1 289.0
Total liabilities and equity 1,605.0 1,548.2 1,605.0 1,548.2
STATEMENT OF CHANGES IN EQUITY - GROUP RESERVES
DKK million Share
capital
Hedge
transactions
Retained
earnings
Proposed
dividend
Total
Equity at 1 January 2017 57.2 -20.7 730.3 18.8 785.6
Changes
in
equity
in
2017
Profit
for
the
year
0.0 0.0 58.9 19.6 78.5
Value
adjustment
hedging
instruments
0.0 1.8 0.0 0.0 1.8
Tax
on
value
adjustments
hedging
instruments
0.0 -0.4 0.0 0.0 -0.4
Total comprehensive income 0.0 1.4 58.9 19.6 79.9
Dividend
distributed
0.0 0.0 0.0 -18.8 -18.8
Equity at 31 December 2017 57.2 -19.3 789.2 19.6 846.7
Equity at 1 January 2018 57.2 -19.3 789.2 19.6 846.7
Changes
in
equity
in
2018
Profit
for
the
year
0.0 0.0 70.6 23.6 94.2
Value
adjustment
hedging
instruments
0.0 -1.0 0.0 0.0 -1.0
Tax
on
value
adjustments
hedging
instruments
0.0 0.1 0.0 0.0 0.1
Total comprehensive income 0.0 -0.9 70.6 23.6 93.3
Dividend
distributed
0.0 0.0 0.0 -19.6 -19.6
Equity at 31 December 2017 57.2 -20.2 859.8 23.6 920.4

STATEMENT OF CHANGES IN EQUITY - PARENT COMPANY

RESERVES
DKK million Share
capital
Hedge
transactions
Developement
projects
Retained
earnings
Proposed
dividend
Total
Equity at 1 January 2017 57.2 -20.7 0.0 730.3 18.8 785.6
Changes
in
equity
in
2017
Profit
for
the
year
0.0 0.0 0.0 58.9 19.6 78.5
Capitalized
developement
projects
0.0 0.0 5.7 -5.7 0.0 0.0
Value
adjustment
hedging
instruments
0.0 1.8 0.0 0.0 0.0 1.8
Tax
on
value
adjustments
hedging
instruments
0.0 -0.4 0.0 0.0 0.0 -0.4
Total comprehensive income 0.0 1.4 5.7 53.2 19.6 79.9
Dividend
distributed
0.0 0.0 0.0 0.0 -18.8 -18.8
Equity at 31 December 2018 57.2 -19.3 5.7 783.5 19.6 846.7
Equity at 1 January 2018 57.2 -19.3 5.7 783.5 19.6 846.7
Changes
in
equity
in
2018
Profit
for
the
year
0.0 0.0 0.0 70.6 23.6 94.2
Capitalized
developement
projects
0.0 0.0 11.6 -11.6 0.0 0.0
Value
adjustment
hedging
instruments
0.0 -1.0 0.0 0.0 0.0 -1.0
Tax
on
value
adjustments
hedging
instruments
0.0 0.1 0.0 0.0 0.0 0.1
Total comprehensive income 0.0 -0.9 11.6 59.0 23.6 93.3
Dividend
distributed
0.0 0.0 0.0 0.0 -19.6 -19.6
Equity at 31 December 2018 57.2 -20.2 17.3 842.5 23.6 920.4

Dividend

Dividend of DKK 23.6 million is proposed (2017: DKK 19.6 million), corresponding to dividend per share of DKK 4.12 (2017: DKK 3.43). Dividend of DKK 19.6 million has been distributed during the year (2017: DKK 18.8 million). Distribution of dividend to the shareholders of Tivoli A/S has no tax implications to Tivoli A/S.

NOTE 1 – ACCOUNTING POLICIES

Tivoli A/S is a limited company registered in Denmark. The Annual Report of Tivoli A/S for 2017 comprises the Consolidated Financial Statements of Tivoli A/S and its subsidiaries (the Group) as well as separate Parent Company Financial Statements. The Consolidated Financial Statements and the Parent Company Financial Statements of Tivoli A/S for 2017 are presented in accordance with the International Financial Reporting Standards as issued by the IASB and as adopted by the EU as well as additional Danish disclosure requirements for annual reports of listed companies.

§

At Tivoli, management responsibility is divided on 11 main areas managed by Vice Presidents. Five of the main areas generate revenue, whereas the seven remaining main areas undertake administrative functions within eg IT, Finance, Marketing and HR as well as operation and maintenance of the Gardens. Only the first six main areas are considered reportable according to IFRS 8. Expenses for administrative functions as well as operation and maintenance of the Gardens are not allocated to the other main areas. Culture bears the expenses for Friday Rock concerts, Garden orchestras, Pantomime shows and other events in the Gardens. Earnings from entrance fees are recognised in Sales. Culture does not receive a share of earnings from entrance fees and is, viewed in isolation, a loss-making segment. Food & Beverage operates Tivoli's own restaurants whereas High End operates the House of Nimb and Gemyse. Income from tenanted restaurants is allocated to Enteprise Rental. Depreciation, amortisation and financial expenses are not allocated on to the main areas. Therefore "Profit before depreciation, amortisation and impairment" has been chosen as a performance measure in the segment reporting. Similarly, the balance sheet has not been broken down on main areas and therefore total assets per main area are not presented.

SEGMENT REPORTING 2018
GROUP
Games &
Casino
Food &
Beverage
High-End Enterprise
Rental
Sales Culture Total Not
allocated
Total
Revenue 71.6 149.6 162.5 83.0 486.5 79.3 1,032.5 26.3 1,058.8
Total revenue 71.6 149.6 162.5 83.0 486.5 79.3 1,032.5 26.3 1,058.8
EBITDA 15.3 23.0 30.7 79.9 401.6 -44.6 505.9 -283.8 222.1
Depreciation, amortisation and impairment -91.0 -91.0
Net
financials
-10.5 -10.5
Profit before tax 120.6

Not allocated comprises administrative functions as well as operation and maintenance of the Gardens. These functions have no business activities and generate only very limited revenue. In 2018 "not allocated" includes royalty income, invoicing of architects, cleaning and renovation.

SEGMENT REPORTING 2017
GROUP
Games &
Casino
Food &
Beverage
High-End Enterprise
Rental
Sales Culture Total Not
allocated
Total
Revenue 74.1 144.8 129.6 66.0 443.4 53.2 911.1 27.4 938.5
Total revenue 74.1 144.8 129.6 66.0 443.4 53.2 911.1 27.4 938.5
EBITDA 19.9 24.0 13.3 62.8 366.6 -57.5 429.1 -239.8 189.3
Depreciation, amortisation and impairment -84.6 -84.6
Net
financials
-4.2 -4.2
Profit before tax 100.5

Not allocated comprises administrative functions as well as operation and maintenance of the Gardens. These functions have no business activities and generate only very limited revenue. In 2017 "not allocated" includes royalty income, invoicing of architects, cleaning and renovation.

TIVOLI A/S Vesterbrogade 3 DK-1630 Copenhagen V

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