- Integration of acquired companies
and structuring of the Group based on 4 core businesses with
strengthened cross-business functions
- Revenues of €125 m and EBITDA of €30
m, strong growth compared to first half of 2017
- Numerous developments across all
Group activities, with a substantial increase of ongoing
productions’ volumes
- 2018 targets reaffirmed
Regulatory News:
Mediawan (Ticker: MDW – ISIN: FR0013247137) (Paris:MDW),
an independent European audiovisual content platform, announces its
results for the first half of 2018, approved by the Supervisory
Board on September 26 and subjected to a limited review by the
statutory auditors.
Key reported financial indicators
H1 2018
H1 20171
Change In €m (6 months) (3
months) (6 months) (vs. 6 months) Mediawan Originals
47.3 4.6 20.8 +127% Mediawan Animation
- - - - Mediawan Rights 23.2
6.7 11.8 +97% Mediawan Thematics 54.4
27.2 54.2 +1%
Revenues2
125.3 38.6 86.8
+44%
EBITDA3
30.0 10.8 21.9
+37%
In €m 30/06/18
31/12/17
30/06/17
Net financial debt4
112.6
28.5
32.0 Shareholders’ equity 192.6
209.1
210.2
Pierre-Antoine Capton, Mediawan’s Chairman, says:
“Mediawan recorded a great semester and delivered solid financial
performances. These results reinforce our strategy based on premium
content and give us confidence in our ability to deliver our
medium-term growth objectives. It is also to undertake the next
steps of its development that the Group has integrated a new
organization based on 4 core businesses with strengthened
cross-business functions”.
Finalization of the previously-announced external growth
operations
During the first half of the year, Mediawan pursued its
consolidation’s strategy through the integration of:
- 80% of Storia
Television, created to acquire EuropaCorp Télévision’s
activities (excluding US series) – operation finalized in January
2018;
- 77% of Makever, one of France’s leading producers
gathering 7 independent studios – operation carried out in March
2018;
- 51% of ON
Entertainment, developing both animated content - with ON
kids & family - and fiction - with Chapter 2 – operation
completed on June 7, 2018;
- 60% of Mon Voisin
Productions – an operation currently being finalized.
These companies are perfectly in line with Mediawan’s strategic
objectives: premium content with recognized and very identifiable
brands, high value catalogue supported by the Group’s international
network, substantial growth prospects and, most importantly, a pool
of exceptionally talented people.
New Group organization incorporating expertise within four
core businesses
The acquisitions undertaken by Mediawan have enabled the Group
to build a solid asset base with strong positions on complementary
business lines. In order to continue the development of these
activities in a strategically integrated manner and facilitate the
implementation of synergies, Mediawan has adopted a new
organization which better reflects both the specificity and offer
of a Group that is integrated throughout the whole value chain of
audiovisual content.
Mediawan is thus now structured around 4 core businesses:
- Mediawan Originals: production
of original content, fiction and documentaries,
- Mediawan Animation: production
and management of animated content,
- Mediawan Rights: distribution of
audiovisual programs,
- Mediawan Thematics: publishing
of channels and associated digital services.
These four core businesses are managed independently, each
headed by its own specific team. They are complementary by nature
with numerous areas of cooperation. Mediawan’s goal is to ensure
that these business units are supported by a strengthened Group
structure which will develop and incorporate cross-business
expertise in various operational and functional sectors.
Numerous developments across all Group activities
Over the first half of the year, Mediawan significantly
increased its volume of productions in all areas, and notably
fiction and animated content.
- Mediawan
Originals produced almost 70 hours (cumulative volume) of
fiction prime-time broadcasted on television over the last 12
months, and was awarded number 1 prime time fiction producers in
France in the annual ranking published by Écran Total
magazine.
During the semester, Mediawan Originals confirmed the success of
its programs such as “The Red Bracelets“ (Les Bracelets Rouges),
“Research Unit“ (Section de Recherches), “Alice Nevers” (Alice
Nevers, le juge est une femme) and “Captain Sharif” (Cherif), each
screening being watched by millions of TV viewers.
The Group has also successfully launched new programs as “The
Crimson Rivers“ (Les Rivières Pourpres), “Traqués” and “Noces
Rouges”, and also co-produced “I Am Not as Easy Man” (Je ne suis
pas un homme facile), the first ‘Netflix Original’ French film,
broadcasted on the platform since early April.
- Mediawan
Rights has also strengthened its positions with a number of
noteworthy agreements, such as the sale of French rights of
“Babylon Berlin” (16x45’) to Groupe Canal+, the series currently
broadcasted and the distribution of the series “Murders At…” and
“Research Unit” (Section de Recherches) - seasons 1 to 7 - to NBC
Universal Europe.
The Group has also signed an agreement with Amazon which allows
its platform - Prime Video - to stream on French spoken European
territories “Research Unit“ (Section de Recherches), “Alice Nevers”
(Alice Nevers, le juge est une femme) and “Les Mystères de
l’Amour”.
- Mediawan
Thematics has continued to implement its strategy aimed at
strengthening its portfolio of channels, notably with a trademark
agreement leading to the upcoming launch of the new AUTOMOTO TV
channel (replacing AB Moteurs), and working on partnership to
develop a new eSport offer.
The Group has also recorded outstanding audiences figures in
Belgium with AB3 and ABxplore (recently launched), increasing the
Group’s position on such market.
- Mediawan
Animation is accelerating its development strategy on both
TV series and feature films. Numerous major projects are currently
in production, notably the “Power Players” series and the
“Playmobil” movie.
The “Miraculous” phenomenon carries on with the ongoing delivery
of new episodes of seasons 2 and 3 and the development of seasons 4
and 5. Many other projects are also being looked at to use this
worldwide-recognized intellectual property on other formats.
Changes in governance
The General Shareholders’ Meeting held on June 5, 2018 approved
the appointment of Mrs. Anne Le Lorier, Second Deputy
Governor of the Banque de France until January of this year, as a
member of the Supervisory Board.
Furthermore, Mediawan’s Supervisory Board appointed:
- Guillaume Izabel, CFO of Mediawan since
June 2017, as a member of the Management Board,
- Stanislas Subra, Head of the
Alternative Investment Fund division at the MACSF insurance
company, as censor of the Supervisory Board.
Solid revenues growth of +44% to €125 million5
Revenues totaled €125.3 million in the first half of 2018, up
+44% on the pro forma revenues published in the first half of
20174. This growth was mainly due to the contribution of the
CC&C, Storia and Makever acquisitions, which were not part of
the consolidated scope in the first half of 2017.
- Mediawan
Originals recorded revenues of €47.3 million at June 30,
2018, up sharply compared with the same half of 2017 notably thanks
to the contribution of the newly-acquired companies. Revenues
primarily corresponded to the delivery of new programs to
broadcasters and income from secondary sales of programs produced
by the Group (net of distribution fees). Mediawan Originals
delivered almost 40 hours of programs over the half, 34 of them in
the second quarter, and strengthened its production line-up by
signing new seasons of a number of successful series including
“Black Spot” (Zone Blanche) and “The Red Bracelets“ (Les Bracelets
Rouges).
- Mediawan
Animation recorded no revenues during the first half of the
year: the acquisition of ON kids & family having been carried
out in June 2018, its activity was only consolidated in Mediawan’s
accounts from June 30, 2018.
- Mediawan
Rights recorded revenues of €23.2 million, a
substantial increase on the previous year, notably because of a
more concentrated rights entitlement schedule in this first half.
Revenue essentially came from (i) sales of rights acquired by the
Group and (ii) distribution fees levied when rights produced by
production companies or third parties are sold.
- Mediawan
Thematics recorded revenues of €54.4 million, a slight
improvement on the first half of 2017. Revenues primarily consisted
of royalties from TV operators and advertising income.
EBITDA6 in excess of €30 million and net profit
of €11 million despite exceptional items
EBITDA totaled €30.0 million over the first half of
2018, giving a margin of close to 24%. This high margin was mainly
due to the substantial contribution of Mediawan Rights’ activity
over the half.
The reported operating profit was €12.8 million,
primarily affected by:
- -€3.6 million of non-recurring expenses
associated with acquisition and reorganization costs;
- the accounting impact, with no impact
on the Group’s cash position, of elements similar to remuneration
elements under IFRS to the tune of €(1.0) million;
- amortization of the goodwill allocated
to tangible and intangible fixed assets, for € (10.7) million.
There was a net profit of €11.3 million in the first half of
2018, derived from the operating profit and taking into account (i)
a financial result of €2.2 million including the change in the fair
value of non-consolidated equity interests for €3.5 million, (ii)
tax of €(3.2) million and (iii) €(0.4) million in minority
interests.
Net profit group share adjusted for the amortization of
assets acquired through business combinations (net of tax) was
€18.2 million.
A solid capital structure
The change in shareholders’ equity, group share, from
€209.1 million at December 31, 2017 to €192.6 million at
June 30, 2018 was chiefly the result of (i) the net profit of
€11.3 million, (ii) capital increases following the exercise
of warrants for €10.3 million and (iii) the non-monetary
impact associated with the writing down of minority interest
purchase commitments for € (40.6) million.
At June 30, 2018, the Group’s net financial debt was €(112.6)
million, versus €(28.5) million at December 31, 2017, the increase
in debt over the period being principally due to the impact of the
Group’s acquisitions for close to €100 million.
2018 targets reaffirmed
Mediawan reminds readers that its revenues and results are
notably correlated to the number and delivery schedule of
audiovisual programs and the dates of rights entitlements. These
factors can result in significant variations in the Group’s results
from one period to the next; consolidated half-year results are
therefore not indicative of future annual results.
As far as Mediawan Originals and Mediawan Animation’s activities
are concerned, substantial volumes of work are currently in
production and should be delivered over the coming months.
Uncertainty regarding precise delivery dates and their proximity to
the end of the 2018 financial year are liable to have an impact on
Mediawan’s consolidated results for the current year.
However, the continuation of Mediawan’s growth strategy, with
numerous clearly-identified levers including a substantial
production line-up, bolsters the Group’s good 2018 prospects.
Management is therefore reaffirming the growth and margin targets
on a pro forma basis.
First half financial report is available on:
https://mediawan.fr/fr/regulated-information/
Next financial press release: Q3 2018 revenues,
end-November 2018.
Disclaimer
This document may contain forward-looking statements. Although
Mediawan believes that the estimates and projections reflected in
the forward-looking statements are reasonable, they may prove
materially incorrect, and actual results may materially differ. As
a result, you should not rely on these forward-looking statements.
Mediawan undertakes no obligation to update or revise any
forward-looking statements in the future or to adjust them in line
with future events or developments, except to the extent required
by law.
About Mediawan
Mediawan was incorporated in December 2015 as a Special Purpose
Acquisition Company (SPAC) by Pierre-Antoine Capton, Xavier Niel
and Matthieu Pigasse, and the following year raised €250 million
through an IPO on the Euronext regulated market in Paris. Mediawan
has carried out 7 strategic acquisitions since March 2017, thus
consolidating a new independent player in audiovisual content with
a leading position in Europe. The Group operates on 4 segments: the
production of original fiction and documentary content, the running
of animated brands, the distribution of audiovisual content and the
publishing of channels and digital services.
For further information, please visit the Mediawan website:
www.mediawan.fr
APPENDIXES
1. Consolidated balance sheet at June 30, 2018 and
December 31, 2017
In € thousands 30-june-18
31-dec-17 Intangible assets 319 636 209 378 Goodwill 180 078
96 401 Property, plant and equipment 19 721 18 462 Other
non-current financial assets 829 2 144 Deferred tax assets
12 288 2 390
Non-current assets 532 552
328 777 Inventories and work-in-progress 1 604 2 008
Trade receivables 91 639 46 938 Other receivables 50 441 14 903
Current tax receivables 3 494 1 094 Cash and cash equivalents
60 535 82 478
Current assets 207
714 147 422 Total assets 740
266 476 198 Share capital 293 284 Share premium
226 442 216 181 Treasury shares (43) (65) Other reserves (37 909)
209 Retained earnings (deficit) 3 844 (7 497)
Equity
attributable to owners of the Company 192 627 209
113 Equity attributable to non-controlling interests
674 597 Equity 193
301 209 710 Long-term borrowings and other
non-current fin. liab. 147 219 95 080 Other financial liabilities
47 148 - Employee benefit obligations 3 477 3 113 Long-term
provisions 6 135 7 947 Deferred tax liabilities 43 979
42 216
Non-current liabilities 247 958
148 355 Short-term borrowings and other current fin.
liab. 58 238 15 949 Short-term provisions 375 365 Trade and other
operating payables 125 805 76 431 Other payables and accrued
expenses 112 690 23 177 Current tax liabilities 1 901
2 212
Current liabilities 299 007
118 133 Total Equity
and liabilities 740 266 476 198
2. Consolidated income statement – period from January
1 to June 30, 2018 and January 1 to June 30, 2017
In € thousands H1 2018 H1 2017
Revenues 125 347 38 597 Other products
40 823 8 432 Purchases and external expenses (33 480)
(11 802) Personnel expenses (35 013) (10 029) Other expenses (13
272) (3 977) Depreciation and provisions, net (54 374) (10 999)
Other depreciation (excl. audiovisual rights) (1 901) (980) Other
operating income and expenses (4 654) (6 371) Amortization of
assets recognized through bus. combinations (10 661)
(6 967)
EBIT 12 815 (4 096) Cost
of net financial debt (2 484) (1 312) Other financial income and
expenses 4 634 (49)
Net financial income (expense)
2 150 (1 361) Pre-tax income / (loss)
14 965 (5 457) Current and deferred tax
(expense) / benefit (3 182) (1)
Profit (loss)
after tax 11 783 (5 458) Income
from equity affiliates (37) - Income from activities
held for sale or discontinued - -
Net income /
(loss) 11 746 (5 458) Net income /
(loss), Group share 11 341 (5 767) Minority interests 405
309 Basic earnings (loss)
per share attributable to owners (in €) 0,399 (0,190) Diluted
earnings (loss) per share (in €) 0,385 (0,190)
3. Evolution of EBITDA, Group’s key performance
indicator
In € thousands H1 2018 H1 2017
EBIT* 12 815 (4 096)
Amortization of assets recognized through bus. combinations*
10 661 6 967 Other operating income and expenses* 4 654 6
371 Other depreciation (excl. audiovisual rights)* 1 901
980
EBITDA 30 031 10 222
[*]: As presented in consolidated income statement
1 Financial indicators for the first half of 2017 correspond to
the Group’s scope of consolidation with Groupe AB only consolidated
from April 1, 2017 (3 months) and to the restated scope as if the
acquisition of Groupe AB had been finalized on January 1, 2017 (6
months).2 On H1 2018, include a €0.5 m contribution from the
corporate center.3 EBITDA after amortization of audiovisual rights,
other than those recognized through business combination.4
Financial debt excluding self-liquidating production loans.5 Growth
vs. H1 2017 revenues restated as if the acquisition of Groupe AB
had been carried out on January 1, 2017 (6 months).6 EBITDA after
amortization of audiovisual rights, other than those recognized
through business combination.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180927005694/en/
MEDIAWANinvestors@mediawan.eupress@mediawan.euorNewCapInvestor
RelationsMarc Willaume, Tel: +33 (0)1 44 71 00
13mediawan@newcap.euorNewCapMedia RelationsNicolas
Merigeau, Tel: +33 (0)1 44 71 98 55mediawan@newcap.eu