- Creation of an independent European
audiovisual content group
- Numerous developments across all
activities resulting in proforma1 revenues of €164m, growing
+3% vs. 2016 and above initial target
- Proforma1 EBITDA2 of
€37m, beating initial target for the acquired perimeter by approx.
10%3
- Significant improvement of growth
profile: strong production line-up supporting a target of
double-digit organic growth for the combined group
Regulatory News:
Mediawan (Paris:MDW) (Ticker: MDW - ISIN: FR0013247137),
an independent European audiovisual content platform, announces its
2017 annual results.
The members of the Supervisory Board unanimously approved on
March 20, 2018 the consolidated financial statements for the year
ending December 31, 2017 which have been adopted by the Management
Board on that same day. The Statutory Auditors also confirmed that
they had no observation on such financial accounts.
Key reported and pro forma financial
indicators1
In
€m 2017 A
2017 PF 2016 PF
Var (%) Channels & Digital
81.3 108.2 106.8
+1% Production & Distribution
34.3 55.6 52.7
+5%
Revenues
115.7 163.8
159.6 +3% Channels & Digital
9.4 11.9 11.6 +3% Production & Distribution 19.7 28.6 25.4 +12%
EBITDA – operations 29.1 40.5 37.0
+9% Central costs (3.6)
(3.6)
EBITDA2 25.5
37.0
In
€m
31.12.2017 31.12.2016 Net
financial debt (29) 251 Shareholders’ equity
210 244
Pierre-Antoine Capton, Mediawan’s Chairman, says: “2017 was the
year that saw the birth of Mediawan, an independent European
audiovisual content group, with the acquisition of Groupe AB
followed by the deployment of our strategy with a number of
operations in the key domains of fiction, animation and
documentaries. The growth of our various business segments and our
ability to attract and integrate complementary talents reflect the
fine execution of this strategy. With solid financial capabilities,
Mediawan will benefit from the substantial international appetite
for original European productions. Thanks to our recent successes,
our ongoing projects and our agreements with leading global
broadcasters, 2018 should see the deployment of our strategy across
Europe”.
Creation of an independent European audiovisual content
group
All along 2017, Mediawan gathered various companies which have
been or are expected to be acquired in 2018, establishing the
group’s position in Europe with combined revenues around €270m.
- Groupe AB, the first pillar in
constituting Mediawan
With the acquisition of Groupe AB for €280 million, Mediawan
carried out its first structuring operation on 31 March 2017,
creating the foundations for an independent European audiovisual
content group.
Founded in 1977, Groupe AB is a leading independent editor,
producer and distributor of audiovisual content in French-speaking
Europe that is involved in producing and distributing TV series, TV
movies, cartoons and documentaries and in editing a portfolio of 19
television channels and associated digital services focusing on
major topics and brands.
- Leading producer of fiction and
documentaries in France
Mediawan acquired in July, via its subsidiary Groupe AB, a
majority stake in CC&C (Clarke Costelle & Co) from its
founding partners. Since 2001, CC&C specializes in producing
historical programs and documentaries notably built around the
“Apocalypse” collection which enjoys record viewing figures in
France and 165 other countries.
Early 2018, Mediawan announced various combination projects with
production companies, thus enabling it to become the leading
producer of fiction in France, via the acquisition of:
- EuropaCorp’s TV business (excluding US
series), with a track record of successes in France and
internationally such as “XIII”, “No Limit”, “Les Bleus” and “Taxi
Brooklyn”. This transaction was completed on January 15, 2018,
- a majority stake in the Makever group,
one of France’s leading producers developing strong franchises such
as “Captain Charif”, “Kaboul Kitchen” and, more recently, “The Red
Band Society”, which was finalized on March 15, 2018;
- 60% of Mon Voisin Productions producing
the successful TV series “Call My Agent”, founded by Dominique
Besnehard and Michel Feller, the announced exclusive talks being
expected to be shortly finalized.
Run by exceptionally talented people, these companies match
perfectly Mediawan’s strategic objectives: premium contents with
recognized and strong identifiable brands, together with a high
catalogue value and substantial growth prospects.
- European leader in
animation
Last December, Mediawan announced entering into exclusive talks
in order to acquiring a majority stake in ON kids & Family, the
European leader in animation, producer of successful TV series and
feature films with exceptional brands such as “Miraculous Ladybug”,
“The Little Prince”, “Playmobil”, “Robin Hood”, “Little Nicolas”,
“Iron Man”, “Chaplin”, “Drôles de Petites Bêtes”, etc.
Apart from its recognized experience in creation and production,
ON kids & family’s main characteristic is its unique capability
to upgrade IPs in particular by generating considerable licensing
& merchandising revenues notably through partnerships concluded
with the market’s leading toy manufacturers.
The finalization of this transaction is scheduled to occur
during Q2 2018.
Various developments across all activities
Mediawan confirms its capacity to pursue its various activities’
operational developments, rolling out its strategy announced in
March 2017 at the time of its first acquisition.
- Acceleration in operational
developments on the Channels & Digital segment
Mediawan has strengthened and made durable its relations with TV
and telecom operators in order to distribute its channels and
contents to a very large audience. These successes are the result
of a proactive development policy, with notably:
- the launch of new TV channel ABXplore
in Belgium in September;
- its entry into eSport throught an
exclusive TV partnership with the video game global leader
Activision Blizzard (“Call of Duty”, “World of Warcraft”); and
- its digital offering’s intensification,
genuine extension of the Group’s channels notably thanks to the
launch of the “Mon Science & Vie Junior” app, the development
of YouTube channels such as “Instant Saga” and the creation of
original programs such as a news magazine monthly released on the
YouTube channel “Chasse et Pêche”.
- Pursuance of investments for
contents to increase the Group’s catalogue
The Group’s talents’ creativity was confirmed with the delivery
of key programs’ new seasons such as “Section de Recherches”,
“Alice Nevers” and “Zone Blanche”.
2017 was an eventful year for the Group’s distribution platform.
Following the sale of the worldwide SVOD rights to police series
“The Mantis” to Netflix and the sale of the SVOD rights to science
fiction series “Missions” for certain countries including the USA,
Canada, Germany and the UK to Shudder/AMC Networks, later in the
year Amazon acquired the world wide’s SVOD rights of “Black Spot”
series, produced and distributed by Mediawan (Ego Productions and
AB Distribution). These deals are in line with Mediawan’s
global growth strategy driven by highly-appealing contents.
Last, the Group acquired all the distribution rights in
French-speaking Europe for TV series “Babylon Berlin”, a
prestigious international co-production which won the MIPdrama
Screenings Grand Jury award in 2017.
Altogether, the amounts invested by the Group in audiovisual
rights, both in distribution and new productions, in 2017 totalize
€52 million (pro forma).
Solid performances, beating targets: revenues of €163.8m and
EBITDA of €37m (pro forma4)
2017 annual revenues totaled €115.7 million based on the 9-month
consolidation of Groupe AB – i.e. from April 1. Pro forma revenues,
with Groupe AB consolidated on January 1, 2017, was €163.8
million.
Channels & Digital:
Revenues from the Channels & Digital segment, which
incorporates royalties and advertising income, totalized €81.3
million in 2017 and €108.2 million pro forma. Advertising income
raised significantly, notably benefiting from growing audience
ratings and the opening of new regional advertising offer in
Switzerland.
EBITDA came to €9.4 million (€11.9 million pro forma), thanks to
the increase in revenues and the Group’s ability to control its
direct costs.
Production & Distribution:
Revenues from the Production & Distribution’s
activity totalized €34.3 million (€55.6 million pro forma, +5%
growth for the financial year 2017).
The revenues of the Production activity match with the
delivery of new programs to broadcasters, in particular 8 episodes
of TV series “Alice Nevers” were delivered in the 2nd quarter of
2017 and 6 episodes of season 12 of “Research Unit” were delivered
during the 2nd half of 2017.
The Distribution activity was driven by sales on digital
platforms: Amazon with “Black Spot”, Netflix with “The Mantis”,
“Seven and Me” and numerous films from the catalogue.
EBITDA of the activity was €19.7 million (€28.6 million pro
forma in 2017), 12% growth compared to 2016.
Altogether, the pro forma revenues totalized €163.8 million
for 2017, above expectations announced in March 2017 and +3%
growth compared to 2016.
In 2017, Group’s EBITDA amounts to €37.0m on a pro forma
basis. On a comparable basis at Groupe AB level (meaning
without central costs), this represents a +9% increase compared to
last year results and beating initial target by 10%.
The operating result indicates a loss of €(3.1) million was
mainly affected by:
- non-recurring expenses of €(9.3)
million associated with acquisition costs, partly offset by a
one-off indemnity of €5.2 million;
- amortization of the goodwill allocated
to tangible and intangible fixed assets, for €(21.7) million.
The 2017 net revenues shows a loss of €(6.8) million,
integrating also the financial expenses of €(3.7) million,
principally consisting of bank loan interest subscribed for the
purpose of Groupe AB’s acquisition.
Solid financial structure: net debt of €29m and shareholders’
equity of €210m at end-2017
As of December 31, 2017, Mediawan had net financial debt of
€28.5 million. The net cash position was €82.4 million, a
significant part of which has already or shall be used for the
purpose of the acquisitions already contemplated or to be finalized
in 2018.
Substantial line-up and good prospects for 2018
Mediawan is now a key European player in audiovisual
content:
- the leading producer of fiction and
documentaries in France, with 13 production companies gathering
the most talented people in all creative areas;
- the leading player in animation in
Europe, with recognized global franchises such as “Miraculous
Ladybug, “The Little Prince” and “Playmobil”;
- a catalogue of more than 13,000
hours of programs, growing every year with over 250 hours of
new productions, commercialized with high distribution capacities
in France and abroad;
- a leader in contents’ aggregation on
focused themes, via the publication of channels and associated
digital services.
In 2018 Mediawan intends to integrate its recently-acquired
companies to create the bedrock for its European deployment.
Simultaneously, it will pursue its growth strategy using
clearly-identified pillars:
- accelerate the international
development of production activities, notably by increasing its
partnerships with European broadcasters and global platforms;
- accompany the development and
production of its best projects in progress, in both fiction and
animation;
- increase its international distribution
capabilities, in particular thanks to strengthening of its teams
and catalogue;
- continue the transformation plan on
thematic verticals: channels repositioning, launch of new concepts
and development of digital ecosystems.
Such ambitions are expressed by a significant improvement of
organic growth, revised from 3-5% for the historic perimeter
to approx. 10% for the new combined group.
Lastly, Mediawan will continue to explore external development
opportunities, via the recruitment of talented staff and further
acquisitions, with particular attention being paid to international
activity, which will help facilitate co-production schemes and
strengthen the catalogue.
The 2017 annual financial report is available at:
www.mediawan.fr/fr/relations-investisseurs/#info
Next financial press release: Q1 2018 revenues, at
the latest on May 31, 2018
About Mediawan
Mediawan was incorporated in December 2015 as a Special Purpose
Acquisition Company (SPAC) for the purpose of acquiring one or more
targeted operating businesses or companies in the traditional and
digital media content and entertainment industries in Europe. The
Company was formed by Pierre-Antoine Capton, Xavier Niel and
Matthieu Pigasse, and raised €250 million in April 2016 from an
initial public offering on the Euronext regulated market in
Paris.
In March 2017, Mediawan acquired Groupe AB and thus became an
independent leader in audiovisual content in French-speaking
Europe. The Group is active in the production and distribution of
television series, TV movies, cartoons and documentaries and in the
publication of TV channels and associated digital services.
With the acquisition of CC&C in July 2017, the entering into
exclusive talks with ON kids & family in December 2017, the
acquisition of EuropaCorp Television’s business (excluding US
series) in January 2018 and the acquisition of a majority stake in
Makever on 15 March 2018, Mediawan continued its growth strategy in
international content in the field of fiction, documentaries and
animated content.
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.
For further information, please visit the Mediawan website
(www.mediawan.fr).
1. CONSOLIDATED BALANCE SHEET AT 31 DECEMBER
2017
In € thousands 31 dec 17
31 dec 16
Intangible assets 209 378 43 Goodwill 96 401 - Property,
plant and equipment 18 462 - Other non-current financial assets 2
144 - Deferred tax assets 2 390
-
Non-current assets 328
777 43 Inventories and
work-in-progress 2 008 - Trade receivables 46 938 - Other
receivables 13 117 685 Cash and cash equivalents
82 478 250 664
Current assets
144 541 251
349
Total assets 473 318
251 392 Share capital 284 313
Share premium 216 181 244 634 Treasury shares (65) - Other reserves
62 - Retained earnings (deficit) (7 350) (661)
Equity
attributable to owners of the Company 209 113 244
285 Equity attributable to non-controlling
interests 597 -
Equity
209 710 244 285
Long-term borrowings and other non-current fin. liab. 95 080 -
Employee benefit obligations 3 113 - Long-term provisions 7 947 -
Deferred tax liabilities 42 216
-
Non-current liabilities 148
355 - Short-term borrowings
and other current fin. liab. 15 949 - Short-term provisions 365 -
Trade and other operating payables 79 375 7 087 Other payables and
accrued expenses 18 447 19 Current tax liabilities
1 117 -
Current liabilities
115 253 7
106
Total Equity and liabilities
473 318 251 392
2. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31
DECEMBER 2017
In € thousands 2017
2016
Revenue 115 657 - Cost of goods sold (65 486)
-
Gross margin 50 171 - Selling, general and
administrative expenses (24 632) (627) Other depreciation (2 845)
(9) Other operating income and expenses (4 152) - Amortization of
intangible assets recognized through business combinations
(21 669) -
EBIT
(3 127) (635)
Cost of net financial debt (3 754) - Other financial income
and expenses 38 -
Net financial income (expense) (3
716) -
Pre-tax income / (loss)
(6 842) (635) Current and
deferred tax (expense) / benefit 223 -
Profit (loss) after tax
(6 620)
(635)
Net income / (loss)
(6 620) (635)
Net income
/ (loss), Group share (6 835) (635) Minority interests
216 -
Basic earnings (loss) per
share attributable to owners (in €) (0.233) (0.028) Diluted
earnings (loss) per share (in €) (0.233)
(0.028)
3. RECONCILIATION OF EBITDA, GROUP’S KEY PERFORMANCE
INDICATOR
In € thousands 2017 Actual
2017 PF
EBIT
(3 127) 7 902 Amortization of
intangible assets recognized through business combinations
21 669 22 108 Other operating
income and expenses 4 152 3 224 Other depreciation
2 845 3 764
EBITDA
25 539 36 998
1 Reported results include 9 months of Groupe AB activity, the
latter being consolidated since its acquisition on March 31, 2017.
Pro forma indicators are calculated consolidating Groupe AB from
January 1, 2017.2 EBITDA reported after amortization of audiovisual
rights (other than recognized through business combination).3
EBITDA of €40.5m for Groupe AB (before central costs), compared to
initial target of €37m for the acquired perimeter.4 Reported
results include 9 months of Groupe AB’s activity, the latter being
consolidated since its acquisition on March 31, 2017. Pro forma
indicators are calculated consolidating Groupe AB from January 1,
2017.
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MEDIAWANinvestors@mediawan.eupress@mediawan.euorNewCapRelations
investisseursMarc Willaumemediawan@newcap.euTél. : +33 (0)1 44 71
00 13orNewCapRelations MédiasNicolas
Merigeaumediawan@newcap.euTél. : +33 (0)1 44 71 98 55