Earnings Release • Jun 25, 2015
Earnings Release
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Saint-Denis, 25 June 2015 – EUROPACORP, the producer and distributor of feature films and one of the leading independent film studios in Europe, today announces its consolidated annual results for the 2014/2015 financial year to 31 March 2015, as approved by the Board of Directors on 24 June 2015.
| Consolidated accounts | FY | FY | Var. |
|---|---|---|---|
| (€ million) | 2014/15 | 2013/14 | 2014/15 |
| Revenue | 226.9 | 211.8 | 15.1 |
| Cost of sales | -155.4 | -154.1 | -1.4 |
| Operating margin (before overheads) | 71.5 | 57.7 | 13.8 |
| % of revenue | 31.5% | 27.3% | +4.2 pt |
| Operating income | 19.5 | 8.5 | 11.0 |
| % of revenue | 8.6% | 4.0% | +4.6 pt |
| Net income (Group share) | 16.2 | 0.2 | 16.0 |
| Equity | 184.7 | 156.2 | 28.5 |
* FY2014/2015 annual financial statements, approved by the Board of Directors at their meeting on 24 June 2015
International Sales stayed very brisk over the financial year, amounting to €96 million.
Sales were driven mainly by the international revenues of English language films such as Lucy, Taken 3 and Brick Mansions, and by the first royalties from Lucy, as well as those from catalogue films (especially Three Days To Kill, Malavita (The Family), Colombiana and Transporter 3).
With the release of eight films in FY2014/2015, Cinemas, France totalled €29.2 million, up 180% compared to the previous year. This was driven mainly by the success of Lucy (over 5.3 million French admissions), Taken 3 (almost 2.7 million French admissions) and Bis (over 1.5 million French admissions to date). Overall, films released by the EuropaCorp Group in France during the financial year attracted around 11 million admissions.
Revenue from the TV Series segment reached €32.8 million. The sales were generated mainly by the delivery to TF1 of Season 3 of No Limit, the international sales of the series Taxi Brooklyn, and the delivery of seven television films.
The Video & VOD France activity, with revenues of €13.7 million, mainly benefited from the video releases of Lucy, I Did It Again, Jack and the Cuckoo-Clock Heart, Brick Mansions, and The Homesman, as well as continued sales of catalogue films.
Television, France sales reported annual revenue of €29.1 million, which corresponds to various broadcast windows opening for new films during the financial year (particularly Malavita (The Family) and Jack and the Cuckoo-Clock Heart), and dynamic catalogue sales (Taken 2, the Transporter and Taxi franchises…).
Revenue from the French Subsidies totalled €9.8 million.
The Events segment generated €4.4 million revenue from events organised both within and outside the Cité du Cinéma during the financial year.
Multiplexes reported €5.8 million revenue. This segment grew steadily and corresponds to the income generated by the first EuropaCorp Cinemas in the Aéroville shopping centre. The multiplex has generated 567 thousand admissions in its first full year of operation, in line with forecasts.
Other activities (€6.4 million) were driven mainly by partnerships, music publishing, brand-content and postproduction activities.
The profits generated during FY2014/2015 confirm that the Group's strategic choices are relevant. They are the result of:
The Group's major strategic investments in the US through EuropaCorp Films USA and the RED platform explains the variation in overheads, which were €51.5 million as of 31 March 2015 (compared to €44.6 million for the previous financial year).
Financial income stood at €4.7 million, and was positively impacted by the evolution of the US dollar/euro exchange rate over the period.
The tax expense was (€7.0) million and the net income (Group share) stood at €16.2 million as of 31 March 2015, compared to €0.2 million over the previous financial year, a gain of €16 million.
Net cash flows from activities reported €146 million, against €94 million for the previous financial year, a nearly 56% increase.
Equity (Group share) was €184.7 million, a gain of €28.5 million. The net gearing ratio remained quite satisfactory, specifically in regard with the sector benchmark (net debt-toequity ratio of 0.46 at 31 March 2015, down from 0.70 at 31 March 2014).
The Transporter Refueled, directed by Camille Delamarre and starring Ed Skrein in the leading role, will be released in the US on 4 September 2015 by EuropaCorp Films USA (through its RED service platform).
Shut In, with Naomi Watts in the leading role, is currently in post-production, with its US release scheduled for 19 February 2016.
Other high-potential English-language films have recently entered production. Shooting of The Lake, written and produced by Luc Besson and directed by Steven Quale (Into the Storm) with Sullivan Stapleton (300: Rise of an Empire) in the leading role, began late April. The US release is slated for 15 July 2016.
Shooting of the next film by Barry Sonnenfeld (Men in Black, The Addams Family), entitled Nine Lives, with Kevin Spacey, Jennifer Garner and Christopher Walken, started early May (for release due on 29 April 2016), as did filming for Warrior's Gate, the first French-Chinese co-production by EuropaCorp and Fundamental Films, directed by Matthias Hoene, with Uriah Shelton, Dave Bautista and Mark Zhao.
Shooting of the film Escobar, currently in development, directed by Fernando Leon de Aranoa, with Javier Bardem and Penélope Cruz in the leading roles, should begin in October 2015. EuropaCorp recently announced that Jean-François Richet (Mesrine) will direct Twice, a new English-language action film.
Finally, shooting of the upcoming science-fiction film directed by Luc Besson, Valerian, announced at the Cannes Film Festival this year and generating record pre-sales, is due to start in January 2016, for US release planned on 21 July 2017. Based on the eponymous French sci-fi graphic novels, Dane DeHaan and Cara Delevingne will play the leading roles.
As for French-language productions, the next film with Sandrine Kiberlain in the leading role and directed by Benoît Graffin is currently in post-production.
In terms of TV Series, the quarter was marked by the start of production of the series Section Zéro, directed by Olivier Marchal for Canal+. Two new English-language TV series are currently in development, and are in advanced discussions with US broadcasters. In addition, season 4 of the series No Limit is currently in development, as are three new television fictions from the Mary Higgins Clark collection.
Finally, administrative appeals against the second multiplex EuropaCorp Cinemas located in La Joliette (Marseilles) are now cleared. Work will begin at the end of the year; scheduled to open in summer 2017.
"EuropaCorp's many successes during this financial year have doubled our operating income. This is a testament to the relevance of our strategic plan, which consists of choosing films with an international scope, such as Lucy and Taken 3 and, at the same time, developing activities with recurring income, such as TV and VOD series", remarked Christophe Lambert, CEO of EuropaCorp.
Annual General Meeting of Shareholders September 2015 HY2015/2016 Revenue and Consolidated Income November 2015
EuropaCorp is among the top tier of European film studios. Founded in 1999, EuropaCorp's different activities include production, distribution for cinemas, home entertainment, video on-demand services, sales of TV rights for France; and following the recent opening of its first new multiplex at Roissy's 'Aéroville', the group now counts a'Europacorp Cinemas' branch. The group is also present in the sale of rights internationally, as well as the production and distribution of original soundtracks. Since 2010, the group has also been producing television fiction. 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. In February 2014, EuropaCorp created a U.S. distribution and marketing joint venture together with Relativity, that allows EuropaCorp to fully control it distribution in the U.S. and maximize the visibility for its films.
EuropaCorp was founded by French director, screenwriter and producer Luc Besson. 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 CLAI Investor Relations Kaena Haloua [email protected] [email protected] Tel.: +33 (0)1 55 99 50 00 Tel.: +33 (0)1 44 69 54 00
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