Splendid Medien AG 2007 with double digit sales growth, EBITDA significantly above the figure for the previous year
Press release according to WpHG - April 22, 2008
-Consolidated sales increased by 13% to 28.1m
-EBITDA for the group increased by 23%, EBITDA margin of 32%
-Consolidated EBIT before exceptional items: 2.4m, after exceptional items -1.9m
-Cash flow from business operations significantly improved to 5.9m
(Cologne, 22.4.2008) - Splendid Medien AG, Cologne, achieved a growth in sales for the consolidated group of 13% to 28.1m (previous year 24.9). The earnings for the group before interest, tax and amortization (EBITDA) at 9.1m were 23% above the figure for the previous year of 7.4m. The EBITDA margin was 32% and was therefore also above the figure for the previous year of 29.7%. Earnings before interest and tax (EBIT) amounting to -1.9m were affected by exceptional write-offs of film assets amounting to 4.3m. Adjusted for these exceptional items, the EBIT figure reached 2.4m and was thus above the figure for the previous year of 2.3m.
The exceptional write-offs of the film assets were calculated on the basis of an independent certified valuation of the film library of the subsidiary company Splendid Film GmbH. As already reported, the executive board of Splendid Medien AG had already commissioned the examination and valuation of the film library of Splendid Film, in order to establish the value and marketability of all the film titles when submitted for individual independent expert analysis in particular with regard to the current and foreseeable development of added value in the film industry. On the whole the intrinsic value of the library was confirmed; the requirement for the exceptional write-off was compared with higher potential values which, however, could not be included in the accounts, however for which corresponding earnings from their exploitation are expected in future business years. The exceptional write-off, was disclosed accordingly in real time in the financial statement of 2007 for the Splendid group, in the course of the actual findings which were supported by the expert appraisal.
Earnings before tax (EBT) were -2.4m (previous year 2.0). The profits after tax for the consolidated group were affected by deferred taxes on losses carried forward and amounted to -1.2m (previous year 2.9). Earnings per share stand at -0.12 (previous year 0.30).
The most important area of business was the home entertainment sector which represented 75% of total sales. The area of licensing was in second place with 13% of total sales ahead of post production with a share of 12%.
Cash flow from business operations increased markedly from 4.2m to 5.9m. This increase is to be attributed mainly to the increased profits before depreciation in comparison with the previous year. The Splendid group of companies has over 7.7m available as liquid assets (previous year 10.7m). The equity capital of the company amounted to 14.0m (previous year 15.3) on the account date, giving a high equity ratio of 41.6% (previous year 44.5%).
The group invested 9.4m during the past business year (previous year 7.6) in its film library. A similar level of investment is planned for the business year 2008.
The executive board anticipates sales for the business year of 2008 of at least 31m and an EBIT margin between 8 and 9%.