DGAP-News

Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic

DGAP-News: Highlight Communications AG / Key word(s): Quarterly / Interim Statement Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic 10.11.2020 / 15:00 The issuer is solely responsible for the content of this announcement. EBIT improved by 9.8% from CHF 18.3 million to CHF 20.2 million. Consolidated net profit for the period climbed substantially by 38.1% to CHF 7.9 million. Consolidated sales fell by 23.1% year-on-year to CHF 272.0 million due to COVID-19. The equity ratio was 30.6% as of the end of the first nine months of 2020 (December 31, 2019: 29.3%). Highlight Group maintains positive earnings development in Q3 2020 despite COVID-19 pandemic.

Group performance leads to clearly positive earnings figures in first nine months of 2020

• Consolidated sales fell by 23.1% as of the end of the first nine months year-on-year to CHF 272.0 million due to COVID-19:
  • Sales in the Film segment declined by CHF 60.5 million to CHF 162.6 million. This was mainly due to the loss of theatrical distribution and service production sales on account of the COVID-19 pandemic. Owing to the pandemic situation, filming did not begin on any new theatrical productions in the third quarter of 2020. The conventional home entertainment market as a whole remained on a downward trajectory, while digital distribution forms continued to grow in significance.
  • The slight decrease in the external sales of the Sport- and Event-Marketing segment by CHF 1.9 million to CHF 46.9 million essentially reflects currency effects.
  • The sales decline in the Sports segment by CHF 19.5 million year on year to CHF 62.4 million relates in particular to reduced advertising revenue on account of the cancellation of sporting events.
     
• Nonetheless, the Highlight Group once again proved its earnings strength in all key earning figures:
  • EBIT improved by CHF 1.9 million or 9.8% to CHF 20.2 million. The higher EBIT resulted chiefly from the Film segment, which contributed CHF 12.6 million to earnings, its contribution thus considerably higher than in the previous year (CHF 9.4 million). This was thanks to lower costs, in particular on account of the suspension/break in movie and TV service productions due to the coronavirus.
  • The consolidated net profit of the period was CHF 7.9 million, which is significantly higher than the prior year figure of CHF 5.7 million.