DGAP-News

2Q2016: Highlight Group with significant improvement after six months

DGAP-News: Highlight Communications AG / Key word(s): Half Year Results
2Q2016: Highlight Group with significant improvement after six months

10.08.2016 / 17:44
The issuer is solely responsible for the content of this announcement.

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In the first half of 2016, the Highlight Group generated sales and earnings
significantly higher than the comparative figures for the previous year:

- Consolidated sales rise by 63.0% to CHF 206.5 million

- EBIT almost doubled from CHF 7.2 million to CHF 13.9 million

- Net profit for the period improves more than proportionately from CHF
0.6 million to CHF 8.1 million

- Earnings per share increase from CHF 0.02 to CHF 0.19


Group development in the first half of 2016

- Consolidated sales of CHF 206.5 million exceeded the previous year's
figure (CHF 126.7 million) by 63.0%. Both the Film segment (+72.2%) and
the Sports- and Event-Marketing segment (+33.0%) contributed to this
increase.

- The rise in the Film segment was based firstly on extremely good sales
figures of the box-office hits "Fack Ju Göhte 2" and "Look Who's Back"
in home entertainment marketing. Secondly, the TV series
"Shadowhunters", which the Constantin Film Group produced for the US
network Freeform, began broadcasting.

- The sales increase in the Sports- and Event-Marketing segment was due
to the higher agency commissions that the TEAM Group generated as a
result of the successful marketing of rights for the UEFA club
competitions (2015/16 to 2017/18 seasons).

- Consolidated operating expenses rose by CHF 106.8 million to CHF 258.6
million, after CHF 151.8 million in the first half of 2015. This was
primarily due to a rise in the cost of materials and licenses in
connection with productions and significantly higher amortization and
impairment on film assets.

- EBIT increased from CHF 7.2 million to CHF 13.9 million, representing
an improvement of 93.1%.

- Consolidated net profit for the period increased from CHF 0.6 million
to CHF 8.1 million, of which CHF 8.2 million was attributable to
Highlight shareholders (previous year's period: CHF 0.8 million).
Earnings per share therefore rose from CHF 0.02 to CHF 0.19.

- Consolidated equity (including non-controlling interests) totaled CHF
93.4 million as of the end of the first half of 2016. The decline of
CHF 10.4 million as against December 31, 2015 essentially results from
the acquisition of treasury stock.

- Net liquidity amounted to CHF 26.7 million - an increase of CHF 24.6
million as against year-end 2015.

The German interim report as of June 30, 2016 will be available for