Earnings Release • Jun 27, 2013
Earnings Release
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Saint-Denis, 27 June 2013 – EUROPACORP, the producer and distributor of feature films and one of the leading independent film studios in Europe, today announces its consolidated annual results as of 31 March 2013, as approved by the Board of Directors on 26 June 2013, for FY2012/2013.
| Consolidated financial statements | FY | FY | Change |
|---|---|---|---|
| (€m) | 2012/13 | 2011/12 | 2012/13 |
| Revenue | 185.8 | 168.3 | 17.5 |
| Cost of sales | -129.7 | -137.3 | 7.6 |
| Operating margin (before overheads) | 56.1 | 30.9 | 25.2 |
| % of revenue | 30.2% | 18.4% | + 11.8 points |
| Operating income | 30.3 | 6.8 | 23.5 |
| % of revenue | 16.3% | 4.1% | + 12.2 points |
| Net income (excluding minorities) | 19.6 | 0.1 | 19.5 |
| Shareholders' equity | 151.5 | 102.4 | 49.1 |
* Annual financial statements for FY2012/2013 approved by the Board of Directors during its meeting of 26 June 2013, currently being audited
TV Series revenue increased appreciably over the financial year, reaching €28.4m. This shows that the Group's strategy of developing recurring revenue sources is yielding results.
The revenue from this segment represents 15.3% of overall annual revenue, compared to 5.2% for the previous financial year. These sales primarily correspond to royalties from the series XIII, No Limit and Flight of the Storks.
They were driven by Taken 2, which was released in October 2012, royalties from English-language catalogue films (Colombiana, Taken, Transporter 3 and I Love You Phillip Morris, among others) and the revenue associated with the contractual stages defined with the US distributor of Malavita, which were completed by the close of the financial year.
Cinemas, France sales for the past financial year total €16.2m, up around 16% compared to FY2011/2012, with the release of 9 films, including Taken 2 (around 3 million admissions), It Boy (over 1.4 million admissions to date) and Möbius (around 1.1 million admissions).
The Video, France segment, which posted revenue of €15.1m, primarily benefited from the video and VOD releases of Taken 2, Lock Out and The Lady, as well as continuing catalogue sales (A Monster in Paris, Colombiana, The Tree of Life and Little White Lies, among others).
Television, France revenue increased by 9.9%, reaching €41.4m over the financial year. This change was caused by a significant number of broadcast windows opening during the financial year for television premieres, as well as proactive catalogue management.
The Other Activities (€6.1m) primarily correspond to the revenue generated from partnerships, music publishing and coproduction sales during the financial year.
Revenue from Subsidies totalled €6.8m.
The profitability generated over FY2012/2013 confirms the Group's strategic choices and is a consequence of:
Overheads are €26.1m, compared to €25.2m during the previous financial year, an increase of €0.9m, primarily caused by the effects of changes in perimeter (addition of brand entertainment and post-production). Other than flows linked to perimeter changes and equity transactions, overheads are under control and do not vary from one financial year to the next (€25.2m per financial year).
The financial income totalled (€0.02m).
The tax expense is €9.4m and the net income (excluding minorities) is €19.6m at 31 March 2013, compared to €0.1m for the previous financial year, an increase of €19.5m.
Net cash flow from operations was €87m, compared to €82m during the previous financial year, an increase of 6%.
Bank covenants were honoured as of 31 March 2013.
The Group's shareholders' equity is €151.5m, an increase of €49m. The net gearing ratio remains highly satisfactory in relation to the sector benchmark (net debt to equity ratio of 0.21 at 31 March 2013 compared to 0.50 at 31 March 2012).
In FY2013/2014, the Cinemas, France segment will benefit from an extremely rich and highly diversified line-up.
The coming financial year will see the international release of three English language films: Malavita, directed by Luc Besson, starring Robert de Niro, Michelle Pfeiffer and Tommy Lee Jones, Three Days to Kill, directed by McG, starring Kevin Costner, and Brick Mansions, directed by Camille Delamarre, starring Paul Walker and David Belle.
Shooting for Luc Besson's next film, Lucy, starring Scarlett Johansson, will start in September 2013.
The third film in the Taken saga will start production in February 2014, with Liam Neeson reprising his role as Bryan Mills. The film is expected to be released worldwide in February 2015.
During the 2013 Cannes Film Festival, the Group announced that it had signed an agreement with the Chinese company Fundamental Films for the production of a new trilogy of the successful Transporter film franchise.
In the TV Series segment, shooting for the second series of No Limit has started and the English-language series Taxi Brooklyn South is in pre-production.
FY2013/2014 will also see the opening of the first EuropaCorp Cinemas movie theatre in October.
| Q1 revenue | August 2013 |
|---|---|
| General Meeting | September 2013 |
| H1 Revenue and Consolidated Results | November 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 150 permanent staff members.
For more information go to www.europacorp-corporate.com
EuropaCorp Group Image Sept Olivier Roullet – Investor Relations Fabrice Rémon / Sylvie Ruggieri Tel: +33 1 55 99 00 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
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