Banijay Group: Q1 2024 results
Press Release
Paris, 15 May 2024
First quarter 2024 Results
FL ENTERTAINMENT BECOMES BANIJAY GROUP TO
REFLECT AMBITION AS ENTERTAINMENT LEADER
VERY GOOD START TO 2024 WITH STANDOUT
PERFORMANCE INONLINE SPORTS BETTING &
GAMING
UPGRADED FY 2024 EBITDA GUIDANCE &
NEW GUIDANCE METRICS PROVIDED FOR 2024
Q1 2024 FINANCIAL
HIGHLIGHTS1
-
Revenue up +10.6% to €1,001m in Q1 2024
- Adjusted EBITDA up
+11.2% to €164m, Adjusted EBITDA margin of 16.4% up 30bp vs Q1
2023
- Adjusted net
income up +4.5% at current currencies to €73m, net
income at €18.7m (vs €8.4m in Q1 2023)
- Adjusted free cash flow
conversion of 80% (vs 83% in Q1 2023)
- Strong liquidity
position of €434m and stable 3.1x leverage ratio (31 March
2024 vs 31 Dec. 2023)
Q1 2024 BUSINESS
HIGHLIGHTS1
- Content
production & distribution
- Revenue up +3.1% reflecting
amplified seasonality of major scripted show deliveries and revenue
recognition towards Q4 2024 compared to 2023
- Continued delivery of high
performing content for linear broadcasters and streaming platforms
and awarded ‘Distributor of the Year’ by K7 Media in April
2024
- Strong global presence in high-end
live shows, including opening ceremony for the Dakar
Rally; large seasonal events scheduled in H2
- Online
sports betting & gaming
- Standout performance with revenue
up 31% thanks to 24% increase in the number of Unique Active
Players, with strong momentum in all geographies
- Successful Ivory Coast expansion
boosted by Africa Cup of Nations 2024
- Non-Sportsbook revenues up +53%,
supported by cross-selling activity
- Strong activity going forward with
busy sports calendar (Euro 2024, Paris Olympic Games)
UPDGRADED 2024 GUIDANCE
- 2024
guidance for organic Adjusted EBITDA growth upgraded to low
teens (from high single-digit)
- Continued growth expected across
all business segments with stronger than anticipated performance at
Online sports betting and gaming
- Strong pipeline of scripted show
deliveries anticipated in Q4 2024, including Marie-Antoine for
Canal+ in France and SAS Rogue Heroes for BBC One in the UK
François Riahi, CEO of Banijay Group, said:
“We are pleased to report a strong start to
2024, driven by the outstanding performance of Online sports
betting & gaming, which saw a 31% increase in revenue and a 24%
increase in Unique Active Players. In Content production &
distribution, we continue to see a strong demand for formats and
shows from both streaming platforms and linear broadcasters. The
anticipated phasing of major show deliveries will deliver strong
growth in the second half of the year.
Thanks to this performance and the perspective
on our businesses, we are in a position to increase our earnings
guidance for the year and now expect organic adjusted EBITDA growth
in the low teens, up from high single-digits previously, fueled by
the growth of all our segments, especially strong for online sports
betting and online gaming.
Our group structure and branding is also
evolving to improve its visibility and reflect the growth and
transformation of the Group since 2022. FL Entertainment will
become Banijay Group, incorporating Banijay Entertainment, Banijay
Live and Banijay Gaming. This strategic rebranding reflects the
complementarity and the synergy potential between our existing
activities and underlines our ambition to position ourselves as
European entertainment leader. Creating passion, emotion and
fulfilling experiences to audiences and users worldwide is the
cornerstone of our ambition.”
*****
Banijay Group invites you to its Q1 2024 results conference call
on:
Wednesday, 15 May 2024, at 6:00pm
CET
Webcast live:You can watch the
presentation on the following
link:https://edge.media-server.com/mmc/p/gdanpi5z/
Dial-in access telephone
numbers:You need to register to the following
link:https://register.vevent.com/register/BIaba80b3c78964c56810e39c64cd15f59
Slides related to Q1 2024 results are available
on the Group’s website, in the “Investor relations” section:
https://www.flentertainment.com/results-center/
KEY FINANCIALS IN Q1 2024
€m |
Q1 2023 |
Q1 2024 |
% reported change |
% constant currency |
|
|
|
|
|
Revenue |
900.2 |
1 001.1 |
11.2% |
10.6% |
Adjusted
EBITDA |
144.6 |
163.7 |
13.3% |
11.2% |
Adjusted EBITDA
margin |
16.1% |
16.4% |
|
|
|
|
|
|
|
Net
income/(loss) for the period |
8.4 |
18.7 |
122.3% |
|
Adjusted net
income |
70.2 |
73.4 |
4.5% |
|
|
|
|
|
|
Adjusted
free cash flow |
119.4 |
131.5 |
10.1% |
|
Free cash flow
conversion rate |
82.6% |
80.3% |
|
|
|
|
|
|
|
For the twelve-month period ended |
31 Dec 2023 |
31 March 2024 |
|
|
|
|
|
|
|
Net financial
debt (reported) |
2 280 |
2 354 |
|
|
Net financial debt / Adjusted EBITDA |
3.1x |
3.1x |
|
|
Refer to the Appendix for definition
Q1 2024 KEY EVENTS
Creation of CreAsia Studio for
South-East Asia
In February 2024, Banijay announced a strategic
expansion in South-East Asia with the creation of CreAsia Studio.
The studio will focus on local collaborations to create local
originals and produce local adaptations of Banijay IP.
Re-pricing of Term Loan B at
Banijay
In February 2024, Banijay re-priced its €555m
Term Loan B at Euribor +3.75% and its $556m Term Loan B
at SOFR + 3.25%, reducing margins by 75bp and 50bp
respectively.
Banijay Entertainment awarded
“Distributor of the Year 2023” by industry analyst K7 Media,
announced in April 2024
For the second year in a row, Banijay has been
named K7 Media’s Distributor of the Year. K7’s “Tracking The
Giants” report recognised Banijay for producing the greatest number
of new format launches, and for having the most active formats.
Banijay’s new launches accounted for nearly one-third of all-new
global format launches. Good Luck Guys, a show created and produced
by Banijay, launched on W9 in France in 2016, was also awarded
“Rising Format Star” for the highest number of new territory
launches in 2023 with six new local adaptations across Scandinavia
and the Netherlands.
Bolts-ons at The
Independents
Banijay Group holds a minority stake in global
marketing and communications group The Independents with an option
to consolidate it in 2026. During Q1 2024, The Independents
continued its consolidation efforts, acquiring two new specialist
agencies focused on strategic consulting for brand, cultural and
entertainment projects: London-based Kennedy and London and Los
Angeles-based Sunshine.
Those two acquisitions will bring complementary
skills to the group in a context where brands increasingly operate
both locally and globally.
Balich Wonder Studios (52% stake) and The
Independents incorporate together as for now 16 global agencies and
offices specialized in ceremonies, brand events and communication,
destination experiences and immersive shows.
POST-Q1 2024 EVENTS
FL Entertainment becomes Banijay
Group
FL Entertainment will be renamed Banijay Group2,
and unveil a new brand identity that reflects the ambition of the
Group to be the leading European leader in the global entertainment
space. The Group’s divisions will be as follows:
- Banijay
Entertainment – the leading Content production &
distribution business (formerly “Banijay”). With 130+ production
companies across 21 territories, the content powerhouse creates and
distributes culture-defining IP for audiences globally.
-
Banijay Live – formalizing our live experiences
business (previously “Banijay Events”) and cementing its ambition
to be a consolidator in this market. With Balich Wonder Studio and
a minority investment in The Independents, the leading player in
live experiences specializes in the production of institutional
ceremonies and live events in the sports, luxury and fashion
industries.
- Banijay Gaming –
regrouping our Online sports betting and gaming activities. The
consumer-facing brands “Betclic” and “Bet at Home” – leaders in
several European countries, and Africa – remain unchanged.
From a financial reporting perspective, Banijay
Group will continue to report at the level of its two business
segments:
- Content production &
distribution, incorporating Banijay Entertainment and Banijay Live,
which are supported by the same central team, and are led by CEO
Marco Bassetti.
- Online sports betting & gaming,
incorporating Banijay Gaming led by CEO Nicolas Béraud.
OUTLOOK
The Group has upgraded its guidance for 2024 to
low-teens organic Adjusted EBITDA growth, from the previous
guidance of high single-digit organic growth published at FY2023
results.
This is due to the stronger performance at
Online sports betting & gaming, and reflects the continued
profitable growth expected for each business segment.
- In Banijay
Entertainment, major scripted shows are expected to be
delivered to the second half of the year, and more specifically to
Q4 2024, including new seasons of Marie-Antoinette for Canal+,
Carême for Apple TV+, or SAS Rogue Heroes for BBC One in the
UK.
- In Banijay
Gaming, positive commercial momentum combined with a busy
sports event calendar including UEFA Euro 2024.
The Group also provides the following additional
financial metrics within its FY 2024 guidance:
- Free cash flow
conversion: above 80%
- Net debt leverage:
below 3x as at December 2024
------------------
As previously communicated, Banijay Group aims
to expand its free float and stock liquidity. In this respect, the
company continues to actively monitor market conditions in
readiness for a market opportunity.PROFIT & LOSS – Q1
2024
In € million |
Q1 2023 |
Q1 2024 |
% reported change |
|
|
|
|
Revenue |
900.2 |
1 001.1 |
11.2% |
External
expenses |
(488.9) |
(566.3) |
15.8% |
Personnel
expenses excluding LTIP & employment-related earn-out &
option expenses |
(260.9) |
(265.3) |
1.7% |
Other operating
income & expenses excl. restructuring costs & other
non-recurring items |
(5.8) |
(5.9) |
2.2% |
Depreciation and
amortization expenses net of reversals related to fiction and other
operational provisions |
0.0 |
0.2 |
|
Adjusted EBITDA |
144.6 |
163.7 |
13.3% |
Adjusted EBITDA
margin |
16.1% |
16.4% |
|
|
|
|
|
Restructuring
costs and other non-recurring items |
(5.7) |
(4.9) |
|
LTIP
expenses |
(25.4) |
(22.6) |
|
Employment-related earn-out and option expenses |
(5.4) |
(12.2) |
|
Depreciation and amortization (excl. D&A fiction and other
operational provisions) |
(28.8) |
(28.2) |
|
Operating profit/(loss) |
79.3 |
95.8 |
20.8% |
|
|
|
|
Cost of net
debt |
(34.3) |
(46.9) |
|
Other finance income/(costs) |
(25.3) |
(14.9) |
|
Net
financial income/(expense) |
(59.5) |
(61.9) |
4.0% |
Share of net
income from associates & joint ventures |
(0.9) |
(1.4) |
|
Earnings before provision for income taxes |
18.8 |
32.6 |
73.0% |
Income tax
expenses |
(10.4) |
(13.9) |
|
Net income/(loss) for the period |
8.4 |
18.7 |
122.3% |
Attributable to: |
|
|
|
Non-controlling
interests |
3.8 |
1.4 |
|
Shareholders |
4.6 |
17.3 |
|
Restructuring costs and other non-recurring items |
5.7 |
4.9 |
|
LTIP and
employment-related earn-out and option expenses |
30.8 |
34.8 |
|
Other finance
income/(costs) |
25.3 |
14.9 |
|
Adjusted net income |
70.2 |
73.4 |
4.5% |
CONSOLIDATED REVENUE
At constant currencies, Banijay Group recorded
revenue of €1,001m, equating to +10.6% growth. This breaks down
into +3.1% increase at Banijay Entertainment and Banijay Live and
+30.8% at Banijay Gaming.
This is reflected as follows by business:
€m |
Q1 2023 |
Q1 2024 |
% reported change |
% constant currency |
|
|
|
|
|
Production |
553.0 |
541.4 |
(2.1)% |
(2.3)% |
Distribution |
67.9 |
60.5 |
(10.9)% |
(12.5)% |
Live
experiences & other |
35.5 |
77.8 |
119.1% |
117.7% |
Banijay Entertainment & Banijay Live |
656.4 |
679.7 |
3.5% |
3.1% |
|
|
|
|
|
Sportsbook |
194.8 |
246.8 |
26.7% |
25.5% |
Casino |
30.6 |
51.2 |
67.1% |
67.0% |
Poker |
15.2 |
18.9 |
24.5% |
24.5% |
Turf |
3.1 |
4.6 |
45.2% |
45.3% |
Banijay Gaming |
243.8 |
321.5 |
31.9% |
30.8% |
|
|
|
|
|
TOTAL REVENUE |
900.2 |
1 001.1 |
11.2% |
10.6% |
Banijay Entertainment & Banijay
Live:
The Group’s traditional seasonality towards the
second half of the year is amplified in 2024 with more major
scripted show deliveries in Q4 2024, than seen in 2023.
Content production:
Content production revenue in Q1 2024 stood at
€541.4m, down -2.3% as continued demand from linear broadcasters
and streamers was offset by anticipated show phasing differences
compared to Q1 2023.
Global and local streamers remained focused on
enriching their catalogues with local non-scripted content,
including docuseries and sports programing. Linear broadcasters
continued to develop their own streaming platforms, in order to
gain a larger share of audiences.
Record rating and high performance for
content on linear, streaming platforms and social
media3
Content produced by Banijay Entertainment rated
highly in Q1 2024, demonstrating the continued and increasing
demand for shows with an established track record and proven
popularity.
Spanish reality music talent show Operación
Triunfo, first broadcast in 2001, relaunched on Amazon Prime Video
in November 2023. Now the most watched Spanish premiere for the
platform, the show earned 3.5m views over the season. It also
generated high levels of social media engagement, receiving 8.6m
weekly votes, more than 5 billion views on TikTok for the hashtag
‘#OT2023’, and 60 million music streaming downloads on Spotify.
Celebrity Big Brother returned to UK screens on
ITV1 and streaming platform ITVx and was highest rated show for
young adults for this time slot. On social media, related content
recorded 49m views on TikTok and 25m on X (ex-Twitter).
Other highlights included: non-scripted reality
show Love is Blind on Netflix, which became the number one series
in its genre in Sweden; the latest Italian series of iconic super
brand MasterChef, which was the most watched since 2017 on Sky Uno;
and premium scripted series SuperSex which was the most watched
series in Italy on Netflix and the number 3 non-English series
worldwide.
Content distribution:
First quarter revenue was down -12.5% to €60.5m
due to a high comparison basis in Q1 2023 when a significant number
of new scripted shows were delivered.
The content catalogue increased by a further
+4,000 hours to 189,000 hours at the end of March 2024 compared to
December 2023.
MasterChef, the world’s most successful cookery
TV format, continued to record large audiences in Q1 2024. In
the Nordics, it ranked as third biggest non-scripted title on TV4.
In the US, MasterChef Junior rated in the top 3 unscripted program
with adults aged 18-49 and had 1.5m average viewers on Fox.
Deal or No Deal continued to entertain viewers
globally and has now been commissioned in 84 territories since its
first launch in 2002 in the Netherlands. The show returned to
screens in Australia in January 2024 on Channel Ten after a 10-year
break, giving the broadcaster its biggest 6pm audience since May
2023. ITV1 picked it up in the UK in January 2024 for a second
season after a 7-year hiatus while NBC in the US launched a
spin-off Deal or No Deal Island in February 2024.
Live experiences & other:
Revenue growth is mainly attributable to the
consolidation of Balich Wonder Studio. Q1 events included the
opening ceremony for the Dakar Rally in Saudi Arabia and the Hegra
Candlelit Concert in AlUla featuring the music of Ludovico
Einaudi.
In Q1 2024, The Independents4 produced two
iconic fashion shows in Paris: Saint Laurent Men’s winter 2024
fashion show and Dior Women’s winter 2024 through Bureau Betak
agency.
Banijay
Gaming5:
The Group once again recorded outstanding
performance in Q1 2024 in all key geographies with revenue up by
+30.8% to €321.5m versus Q1 2023. Sportsbook revenue rose by
+25.5%, while Online casino, Poker and Turf posted very solid
revenue growth of +52.5%. This was achieved thanks to the continued
execution of the Group’s strategy, focused on user experience.
Average monthly Unique Active Players (UAP),
which combines retained and new players, increased by +24% in Q1
2024 compared to a high Q1 2023 comparison, which benefited from
the FIFA World Cup at the end of 2022.
The overall performance was underpinned by the
ongoing enrichment of user experience, with product innovation
through new and attractive games, particularly for online casinos,
that improve player experience, drive engagement, and the
introduction of a range of new features. The performance was also
driven by cross-selling between Sportsbook and other games. In
Sportsbook, the momentum continued to be very positive with an
increasing number of betting formats on individual players
(compared to traditional bets on football teams).
By geography, the Group continued to reinforce
its positions in its core markets while recording excellent
performance in new territories, namely Ivory Coast. During the
Africa Cup of Nations in Jan-Feb 2024, the Betclic App was
downloaded 127,000 times, and ranked first on the App Store among
all categories.
As part of its responsible gaming strategy,
Banijay Gaming generated 99% of its revenue in locally regulated
markets in March 2024, an increase of 7 percentage points over the
last two years (92% in December 2021).
ADJUSTED EBITDA
At constant exchange rates, Banijay Group
recorded a +11.2% increase in Adjusted EBITDA to €164m in Q1 2024
compared to Q1 2023. This reflected a solid level of profitability
across all businesses, and a 30bp improvement in Adjusted EBITDA
margin to 16.4%.
Adjusted EBITDA - In € million |
Q1 2023 |
Q1 2024 |
% reportedchange |
% constant currency |
|
|
|
|
|
Banijay
Entertainment & Banijay Live |
84.2 |
80.4 |
(4.5)% |
(4.8)% |
Banijay
Gaming |
62.8 |
84.5 |
34.5% |
32.4% |
Holding |
(2.4) |
(1.1) |
|
|
Adjusted EBITDA |
144.6 |
163.7 |
13.3% |
11.2% |
|
|
|
|
|
Banijay
Entertainment & Banijay Live |
12.8% |
11.8% |
|
|
Banijay
Gaming |
25.8% |
26.3% |
|
|
Holding |
|
|
|
|
Adjusted EBITDA margin |
16.1% |
16.4% |
|
|
At a Group level, external expenses rose by
+15.8% to €566.3m, driven by higher sports betting taxes. Personnel
expenses (excluding LTIP and employment-related earn-out &
option expenses) increased modestly by 1.7% to €265.3m.
FROM ADJUSTED EBITDA TO ADJUSTED NET
INCOME
Restructuring and other non-recurring
items: -€4.9m in Q1 2024 compared to -€5.7m in Q1
2023.
LTIP expenses totaled -€22.6m
in Q1 2024 compared to -€25.4m in Q1 2023. LTIPs charges are in
line with Group’s trajectory to record on average 10% of Adjusted
EBITDA as LTIPs expenses.
Employment-related earn-out and option
expenses: -€12.2m in Q1 2024 compared to -€5.4m in
Q1 2023.
Net financial result amounted
to -€61.9m in Q1 2024 compared to -€59.5m in Q1 2023. Of this
amount:
- Cost of net debt
totaled -€46.9m in Q1 2024 compared to -€34.3m in Q1 2023. The
increase was attributable to increased interest costs given the
refinancing operations conducted at Banijay Entertainment level in
2023.
- Other financial income and
expenses amounted to -€14.9m in Q1 2024 compared to
-€25.3m in Q1 2023, mainly explained by the change in fair value of
the Put/Earn-out debt and other financial instruments, hedging
instruments and currency impact.
Income tax expenses
The tax charge amounted to -€13.9m in Q1 2024
compared to -€10.4m in Q1 2023.
Adjusted net income rose by
+4.5% to €73.4m in Q1 2024.
FREE CASH FLOW AND NET FINANCIAL
DEBT
The Group’s Adjusted free cash flow (after lease
payments) reached €131.5m in Q1 2024, up +10.1% year-on-year,
driven by the business performance and disciplined capital
expenditures.
Capex expenditures went to €20.4m in Q1 2024
from €13.7m in Q1 2023 due to a higher proportion of IT costs
capitalized in Banijay Gaming.
Adjusted free cash flow conversion after capex
and leases payment amounted to 80%.
The increase in the change in working capital
requirement from €38.6m in Q1 2023 to €42.7m in Q1 2024 came
mostly from seasonality effect in show deliveries.
The rise in income taxes paid came from higher
taxable results at Banijay Entertainment and Banijay Gaming in 2023
compared to 2022, and the impact of Balich Wonder Studio.
Adjusted operating free cash flow stood at
€68.5m in Q1 2024.
€m |
Q1 2023 |
Q1 2024 |
% reportedchange |
Adjusted
EBITDA |
144.6 |
163.7 |
13.3% |
Capex |
(13.6) |
(20.3) |
|
Total cash outflows for leases that are not recognised as rental
expenses |
(11.6) |
(12.0) |
|
Adjusted
free cash flow |
119.4 |
131.5 |
10.1% |
|
|
|
|
Change in
working capital* |
(38.6) |
(42.7) |
|
Income tax paid |
(7.9) |
(20.3) |
|
Adjusted
operating free cash flow |
72.8 |
68.5 |
(5.9)% |
*Excludes LTIP paid, exceptional items cash-out,
trade receivables on providers and players’ liabilities
The Group’s net financial debt totaled €2,354m
as of 31 March 2024 compared to €2,280m as of
31 December 2023. The increase in net
financial debt mainly reflected acquisitions and change in
financial assets for €34m, LTIP paid & exceptional items for
€37m, €47m interests recognized in Q1 2024 and €25m of others,
mostly foreign exchange impact.
As a result, the financial leverage ratio stood
at 3.1x as of 31 March 2024, stable compared to
31 December 2023.
Agenda: H1 2024 results: 1
August 2024
Investor Relations
Caroline Cohen – Phone: +33 1 44 95 23 34 –
c.cohen@flentertainment.com
Marion Heudes – Phone: +33 1 44 95 23 47 -
m.heudes@flentertainment.com
Press Relations
flentertainment@brunswickgroup.com
Hugues Boëton – Phone: +33 6 79 99 27 15
Nicolas Grange – Phone: +33 6 29 56 20 19
About Banijay Group
Banijay Group is a global entertainment leader
founded by Stéphane Courbit, a 30-year entrepreneur and
entertainment industry pioneer. Our mission is to inspire passion
by providing audiences with engaging and innovative entertainment
experiences. The Group’s activities include content production
& distribution (through Banijay Entertainment, the largest
international independent producer distributor), live experiences
(through Banijay Live, a leading player in live experiences) and
online sports betting & gaming (through Banijay Gaming,
Europe’s fastest-growing online sports betting platform). In 2023,
Banijay Group recorded revenue and Adjusted EBITDA of €4,318m and
€737m respectively. Banijay Group is listed on Euronext Amsterdam
(ISIN: NL0015000X07, Bloomberg: FLE NA, Reuters: FLE.AS).
Forward-looking statementsThis
communication contains information that qualifies as inside
information within the meaning of Article 7(1) of the EU Market
Abuse Regulation.
Forward Looking StatementsSome
statements in this press release may be considered “forward-looking
statements”. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on
circumstances that may occur in the future. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that are outside of our control and impossible to predict
and may cause actual results to differ materially from any future
results expressed or implied. These forward-looking statements are
based on current expectations, estimates, forecasts, analyses and
projections about the industry in which we operate and management's
beliefs and assumptions about possible future events. You are
cautioned not to put undue reliance on these forward-looking
statements, which only express views as at the date of this press
release and are neither predictions nor guarantees of possible
future events or circumstances. We do not undertake any obligation
to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events, except as may be required under applicable securities
law.
Alternative performance
measuresThe financial information in this release includes
non-IFRS financial measures and ratios (e.g. non-IFRS metrics, such
as adjusted EBITDA) that are not recognized as measures of
financial performance or liquidity under IFRS. The non-IFRS
financial measures presented are measures used by management to
monitor the underlying performance of the business and operations
and, have therefore not been audited or reviewed. Furthermore, they
may not be indicative of the historical operating results, nor are
they meant to be predictive of future results. These non-IFRS
measures are presented because they are considered important
supplementary measurements of FL Entertainment N.V.'s (the
"Company") performance, and we believe that these and similar
measures are widely used in the industry in which the Company
operates as a way to evaluate a company’s operating performance and
liquidity. Not all companies calculate non-IFRS financial measures
in the same manner or on a consistent basis. As a result, these
measures and ratios may not be comparable to measures used by other
companies under the same or similar names.
Regulated information related to this
press release is available on the
website:https://www.flentertainment.com/results-center/https://www.flentertainment.com/
APPENDIX
Glossary
Adjusted EBITDA: for a period
is defined as the operating profit for that period excluding
restructuring costs and other non-core items, costs associated with
the long-term incentive plan within the Group (the "LTIP") and
employment related earn-out and option expenses, and depreciation
and amortization net of reversals (excluding D&A fiction and
non-recurring provisions). D&A fiction are costs related to the
amortization of fiction production, which the Group considers to be
operating costs. As a result of the D&A fiction, the
depreciation and amortization line item in the Group's combined
statement of income deviates from the depreciation and amortization
costs in this line item.
Adjusted net income: defined as
net income (loss) adjusted for restructuring costs and other
non-core items, costs associated with the LTIP and employment
related earn-out and option expenses and other financial
income.
Adjusted free cash flow:
defined as Adjusted EBITDA adjusted for purchase and disposal of
property plant and equipment and of intangible assets and cash
outflows for leases that are not recognized as rental expenses.
Adjusted operating free cash
flow: defined as adjusted EBITDA adjusted for purchase and
disposal of property plant and equipment and of intangible assets,
cash outflows for leases that are not recognized as rental
expenses, change in working capital requirements, and income tax
paid.
Net financial debt: defined as
the sum of bonds, bank borrowings, bank overdrafts, vendor loans,
accrued interests on bonds and bank borrowings minus cash and cash
equivalents, funding of Gardenia, trade receivables on providers,
cash in trusts and restricted cash, plus players liabilities plus
(or minus) the fair value of net derivatives liabilities (or
assets) for that period. Net financial debt is pre-IFRS 16.
Leverage: Adjusted net
financial debt / Adjusted EBITDA.
Number of Unique Active
Players: average number of unique players playing at least
once a month in a defined period.
Table 1: Revenue breakdown by activity
€m |
Q1 2023 |
Q1 2024 |
% reported change |
% constant currency |
|
|
|
|
|
Production |
553.0 |
541.4 |
(2.1)% |
(2.3)% |
Distribution |
67.9 |
60.5 |
(10.9)% |
(12.5)% |
Live experiences
& other |
35.5 |
77.8 |
119.1% |
117.7% |
Banijay Entertainment & Banijay Live |
656.4 |
679.7 |
3.5% |
3.1% |
|
|
|
|
|
Sportsbook |
194.8 |
246.8 |
26.7% |
25.5% |
Casino |
30.6 |
51.2 |
67.1% |
67.0% |
Poker |
15.2 |
18.9 |
24.5% |
24.5% |
Turf |
3.1 |
4.6 |
45.2% |
45.3% |
Banijay Gaming |
243.8 |
321.5 |
31.9% |
30.8% |
|
|
|
|
|
TOTAL REVENUE |
900.2 |
1 001.1 |
11.2% |
10.6% |
Table 2: Adjusted operating free cash flow by
activity
Banijay Entertainment & Banijay Live - €m |
Q1 2023 |
Q1 2024 |
% reported change |
|
|
|
|
Adjusted
EBITDA |
84.2 |
80.4 |
(4.5)% |
Adjusted EBITDA
margin (%) |
12.8% |
11.8% |
|
|
|
|
|
Capex |
(11.6) |
(13.2) |
|
Total cash
outflows for leases that are not recognised as rental expenses |
(10.7) |
(11.1) |
|
Adjusted free cash flow |
61.9 |
56.2 |
(9.2)% |
|
|
|
|
Change in
WC(1) |
(40.5) |
(48.5) |
|
Income tax
paid |
(4.9) |
(12.2) |
|
Adjusted Operating free cash flow |
16.5 |
(4.5) |
|
Banijay Gaming |
Q1 2023 |
Q1 2024 |
% reported |
|
|
|
change |
Adjusted
EBITDA |
62.8 |
84.5 |
34.5% |
Adjusted EBITDA
margin (%) |
25.8% |
26.3% |
|
|
|
|
|
Capex |
(2.0) |
(7.2) |
|
Total cash
outflows for leases that are not recognised as rental expenses |
(1.0) |
(0.9) |
|
Adjusted free cash flow |
59.9 |
76.4 |
27.7% |
|
|
|
|
Change in
WC(2) |
6.1 |
6.8 |
|
Income tax
paid |
(3.0) |
(8.1) |
|
Adjusted Operating free cash flow |
63.0 |
75.1 |
19.1% |
(1) Excluding LTIP payment and exceptional items for Content
production & distribution
(2) Excluding LTIP payment, exceptional items, trade receivables
on providers and players’ liabilities for Online sports betting
& gaming
Table 3: Consolidated statement of cash
flows
In € million |
31 March 2023 |
31 March 2024 |
Profit/(loss) |
8.4 |
18.7 |
Adjustments: |
131.6 |
139.4 |
Share of profit
of associates and joint ventures |
0.9 |
1.4 |
Amortisation,
depreciation, impairment losses and provisions, net of
reversals |
27.9 |
27.8 |
Employee
benefits LTIP & employment-related earn-out and option
expenses |
30.8 |
34.8 |
Change in fair
value of financial instruments |
16.1 |
1.2 |
Income tax
expenses |
10.4 |
13.9 |
Other
adjustments(1) |
9.2 |
11.8 |
Cost of
financial debt, lease liabilities and current accounts |
36.1 |
48.6 |
Gross cash provided by operating activities |
140.0 |
158.1 |
Changes in
working capital |
(52.8) |
(91.0) |
Income tax
paid |
(7.9) |
(20.3) |
Net cash flows provided by operating
activities |
79.2 |
46.8 |
Purchase of
property, plant, and equipment and of intangible assets |
(13.7) |
(20.4) |
Purchases of
consolidated companies, net of acquired cash |
(3.0) |
(14.8) |
Investing in
associates and Joint ventures |
- |
(7.2) |
Increase in
financial assets |
(6.4) |
(10.9) |
Disposals of
property, plant and equipment and intangible assets |
0.2 |
0.1 |
Proceeds from
sales of consolidated companies, after divested cash |
0.1 |
(2.6) |
Decrease in
financial assets |
1.7 |
32.5 |
Dividends
received |
0.1 |
(0.0) |
Net cash provided by/(used for) investing
activities |
(21.1) |
(23.3) |
Change in
capital |
- |
11.7 |
Change in other
securities |
- |
- |
Dividends
paid |
- |
- |
Dividends paid
by consolidated companies to their non-controlling interests |
(4.1) |
(4.4) |
Transactions
with non-controlling interests |
- |
(0.3) |
Proceeds from
borrowings and other financial liabilities |
3.3 |
5.3 |
Repayment of
borrowings and other financial liabilities |
(25.3) |
(27.1) |
Other cash items
related to financial activities |
0.2 |
- |
Interest
paid |
(49.8) |
(38.0) |
Net cash flows from (used in) financing
activities |
(75.7) |
(52.7) |
Impact of
changes in foreign exchange rates |
(11.0) |
0.1 |
Net increase (decrease) of cash and cash
equivalents |
(28.6) |
(29.1) |
Cash and cash
equivalents at the beginning of the period |
479.4 |
462.9 |
Cash and cash
equivalents at end of the period |
450.8 |
433.7 |
(1) Other
adjustments include notably in 2023: i) unrealized foreign exchange
gains; ii) acquisition costs reclassified in “Purchases of
consolidated companies”; and (iii) other financial items
reclassified in “Interests paid” and in 2022 i) unrealized foreign
exchange gains; ii) losses on disposal and liquidation of
subsidiaries; and (iii) IFRS 2 listing costs. Table 4:
Consolidated balance sheet
In € million |
31 Dec. 2023 |
31 March 2024 |
ASSETS |
|
|
Goodwill |
2 834.0 |
2 847.0 |
Intangible
assets |
204.7 |
225.9 |
Right-of-use
assets |
149.2 |
146.5 |
Property, plant
and equipment |
70.6 |
69.1 |
Investments in
associates and joint ventures |
31.7 |
42.8 |
Non-current
financial assets |
228.5 |
164.2 |
Other
non-current assets |
36.9 |
32.8 |
Deferred tax assets |
58.4 |
57.7 |
Non-current assets |
3 614.0 |
3 586.0 |
|
|
|
Inventories and
work in progress |
678.1 |
708.1 |
Trade
receivables |
588.9 |
628.0 |
Other current
assets |
357.6 |
396.3 |
Current
financial assets |
30.2 |
63.1 |
Cash and cash equivalents |
464.2 |
433.8 |
Current
assets |
2 119.0 |
2 229.3 |
|
|
|
TOTAL
ASSETS |
5 733.0 |
5 815.3 |
EQUITY
AND LIABILITIES |
|
|
Share
capital |
8.1 |
8.1 |
Share premiums,
treasury shares and retained earnings (deficit) |
(35.8) |
21.2 |
Net
income/(loss) - attributable to shareholders |
60.8 |
17.3 |
Shareholders' equity |
33.0 |
46.6 |
Non-controlling
interests |
20.2 |
22.6 |
Total equity |
53.2 |
69.2 |
|
|
|
Other
securities |
139.4 |
139.4 |
Long-term
borrowings and other financial liabilities |
2 551.9 |
2 583.5 |
Long-term lease
liabilities |
126.1 |
120.5 |
Non-current
provisions |
34.3 |
31.7 |
Other
non-current liabilities |
352.5 |
399.2 |
Deferred tax
liabilities |
7.9 |
7.5 |
Non-current liabilities |
3 212.1 |
3 281.8 |
|
|
|
Short-term
borrowings and bank overdrafts |
358.3 |
352.2 |
Short-term lease
liabilities |
41.8 |
44.6 |
Trade
payables |
709.7 |
701.7 |
Current
provisions |
13.5 |
12.3 |
Customer
contract liabilities |
750.0 |
771.8 |
Other current
liabilities |
594.3 |
581.6 |
Liabilities
classified as held for sale |
- |
- |
Current liabilities |
2 467.7 |
2 464.2 |
|
|
|
TOTAL
EQUITY AND LIABILITIES |
5 733.0 |
5 815.3 |
Table 5: IFRS consolidated net financial
debt
In € million |
31 December 2023 |
31 March 2024 |
Bonds |
1 284.2 |
1 293.5 |
Bank borrowings
and other |
1 437.3 |
1 448.0 |
Bank
overdrafts |
1.5 |
0.2 |
Accrued interests
on bonds and bank borrowings |
37.2 |
46.9 |
Vendor loans |
143.5 |
145.7 |
Total bank indebtedness |
2 903.7 |
2 934.2 |
Cash and cash
equivalents |
(464.2) |
(433.8) |
Funding of
Gardenia |
(79.7) |
(82.1) |
Trade receivables
on providers |
(60.8) |
(73.1) |
Players'
liabilities |
50.2 |
56.8 |
Cash in trusts
and restricted cash |
(31.0) |
(0.3) |
Net cash and cash equivalents |
(585.5) |
(532.5) |
|
|
|
Net debt before derivatives effects |
2 318.2 |
2 401.8 |
Derivatives -
liabilities |
6.4 |
1.4 |
Derivatives -
assets |
(44.6) |
(48.7) |
Net debt |
2 280.0 |
2 354.5 |
Table 6: Cash flow statement
|
31 March 2024 |
In € million |
Banijay Entertainment & Banijay Live |
Banijay Gaming |
Holding |
Banijay Group |
Net cash flow from operating activities |
(5.6) |
54.4 |
(2.1) |
46.8 |
Cash flow (used in)/from investing activities |
(46.6) |
23.2 |
0.0 |
(23.3) |
Cash flow (used in)/from financing activities |
(55.0) |
(8.9) |
11.2 |
(52.7) |
Effect of foreign exchange rate differences |
0.1 |
- |
- |
0.1 |
Net increase/(decrease) in cash and cash
equivalents |
(107.0) |
68.7 |
9.1 |
(29.1) |
Cash and cash equivalents as of 1 January |
368.1 |
93.3 |
1.5 |
462.9 |
Cash and cash equivalents as of 31 March |
261.1 |
162.1 |
10.6 |
433.7 |
|
31 March 2023 |
In € million |
Banijay Entertainment & Banijay Live |
Banijay Gaming |
Holding |
Banijay Group |
Net cash flow from operating activities |
25.4 |
60.6 |
(6.8) |
79.2 |
Cash flow (used in)/from investing activities |
(18.3) |
(2.8) |
- |
(21.1) |
Cash flow (used in)/from financing activities |
(124.7) |
(23.0) |
71.9 |
(75.7) |
Effect of foreign exchange rate differences |
(11.0) |
- |
- |
(11.0) |
Net increase/(decrease) in cash and cash
equivalents |
(128.6) |
34.9 |
65.1 |
(28.6) |
Cash and cash equivalents as of 1 January |
396.2 |
72.1 |
11.2 |
479.4 |
Cash and cash equivalents as of 31 March |
267.6 |
106.9 |
76.3 |
450.8 |
Table 7: Banijay Entertainment: Net financial debt as of
31 March 2024
At Banijay Entertainment level: |
|
|
In €
million |
31 Dec. 2023 |
31 March 2024 |
|
|
|
Total
Secured Debt (OM definition) |
1 988 |
2 022 |
Other debt |
326 |
328 |
SUN |
409 |
402 |
Total Debt |
2 722 |
2 752 |
Net Cash |
(368) |
(261) |
Total net financial debt (excl. Earn-out &
PUT) |
2 354 |
2 491 |
EO &
PUT |
178 |
186 |
Total net financial debt (incl earn-out &
PUT) |
2 532 |
2 677 |
|
|
|
Ratios
at Banijay Entertainment level: |
|
|
Leverage Ratio,
as presented |
4.49 |
4.87 |
Adjusted
Leverage Ratio, as presented |
4.82 |
5.23 |
Senior secured
net leverage ratio |
3.43 |
3.80 |
|
|
|
Cash
conversion rate - Banijay Entertainment definition* |
73% |
70% |
Banijay Entertainment contribution at Banijay Group
level: |
|
|
In €
million |
31 Dec. 2023 |
31 March 2024 |
|
|
|
Total
net financial debt (excl. Earn-out & PUT) |
2 354 |
2 491 |
Transaction
costs amortization and other |
(32) |
(31) |
Vendor loan |
- |
- |
Lease debt (IFRS
16) |
(155) |
(152) |
Total net financial debt at Banijay Group
level |
2 167 |
2 307 |
|
|
|
Derivatives |
(38) |
(46) |
Total net financial debt at Banijay Group level after
derivatives |
2 129 |
2 261 |
Leverage ratio: total Net financial debt / (Adj
EBITDA + shareholder fees + proforma impact from acquisitions)
Adjusted leverage ratio: total net financial
debt including earn-out and puts / (Adjusted EBITDA + shareholder
fees + proforma impact from acquisitions)
Senior secured net leverage ratio: total Senior
Secured Notes + Earn-out – Cash / (Adjusted EBITDA + shareholder
fees + proforma impact from acquisitions)
* Based on free cash flow as defined as follows: Adjusted EBITDA
+ change in working capital – income tax paid – capex
1 Growth at constant currencies, unless indicated
differentlyRefer to the Appendix for definition2 Subject to AGM
approval on 23 May 20243 Ranking refers to the first week after
release4 Not consolidated in Banijay Group accounts5 Revenue growth
is at constant currencies
- Banijay Group_PR_Q1 2024 Results
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