Edel SE & Co. KGaA

Earnings Release • Nov 30, 2000

News Details

Ad-hoc | 30 November 2000 21:19

Ad hoc-Service: edel music AG 9 Months engl.

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— – Group sales in the first 9 months 2000 rose by 164 percent to DEM 754.6 million – Adjusted EBITDA in the first three quarters up 145 percent to DEM 20.9 million – Remodelling of group’s organisation Growth rates of sales remained very strong in the first three quarters of 2000 for edel music AG. Group sales rose by 164 percent from DEM 285.9 million in the first nine months 1999 to DEM 754.6 million in the first nine months 2000. This increase is due to strong organic growth of app. 20% within the group and the first time consolidation of major acquisitions. The PIAS group contributed DEM 225.4 million to group sales, Eagle Rock achieved DEM 40.3 million and Red Distribution reached DEM 223.7 million. Group sales for the fourth quarter are expected to reach app. DEM 400 million so that sales for the full year 2000 will surpass DEM 1.15 billion. Adjusted for an exchange loss of DEM 7.9 million in the first three quarters 2000 due to the unfavourable US$-EUR exchange rate effect on deferred purchase payments, edel music AG’s EBITDA, reached DEM 20.9 million, compared to an EBITDA of DEM 8.5 million in the same period 1999. After amortization costs from acquisitions and depreciation, the unadjusted EBIT according to US-GAAP was DEM -9.7 million compared to DEM -1.8 million last year. EBITDA for the third quarter 2000 amounted to DEM 7.2 million while EBIT was DEM -1.0 million (3rd quarter 1999: EBITDA DEM 0.3 million and EBIT DEM -4.8 million). Despite the generally very strong current fourth quarter, various onetime effects will have a significant influence on this year’s earnings: The underperforming US label Edel America as well as the Argentinian company will undergo major restructuring. edel records and edel media & entertainment, Germany, are not likely to reach their earnings target. Therefor, a comprehensive cost saving program is currently being installed with the help of management consultants Roland Berger. After elimination of the above mentioned currency loss of DEM 7.9 million and non-recurring items of DEM 10.3 million, management expects for the full year 2000 an adjusted EBITDA of app. DEM 57.5 million resulting in an adjusted EBIT of DEM 23.5 million. This excludes possible earnings from the edel Ventures division. The integration processes of the overall group organisation are well under way. In 2001 management will concentrate on realising consolidation benefits from past acquisitions while at the same time divesting from unprofitable and cash intensive businesses. Cost saving programs will effect the whole group to re-establish satisfactory earnings levels. Michael Diederich, CFO since April 2000, will leave the company at his own request by the end of this year. Dr. Andre Finkenwirth, COO (Chief Operating Officer) of edel music AG and former CFO of BMG Germany, Switzerland, Austria and Eastern Europe, will take over his function temporarily. For further details on the Quarterly Reporting III / 2000 please visit our homepage: www.edel.com The Management Board Hamburg 30. November 2000 Ende der Mitteilung