- Creation of an independent European
audiovisual content group
- Numerous operational developments
and good financial performance: revenue of €86.8 million and
EBITDA of €21.5 million (pro forma1)
- Consolidated cash position of
€104 million
- 2017 objectives reaffirmed for the
“Groupe AB” scope
Regulatory News
Mediawan (Paris:MDW) (Ticker: MDW - ISIN: FR0013247137),
an independent European audiovisual content platform, announces its
results for the first half 2017, as approved by the Board of
Directors on September 25 after a limited review by the
auditors.
Pierre-Antoine Capton, Mediawan’s Chairman, says: “Mediawan has
experienced a very eventful first half of the year that notably
included the acquisition of Groupe AB, the first step in the
construction of an independent European audiovisual content and
media group. The audiovisual content market is very dynamic, with
strong demand from traditional and digital media. Our organization
and our philosophy, combined with a solid financial structure, make
Mediawan a pivotal player in the anticipated consolidation of the
European production market, and our know-how as a producer and
distributor is one of the major assets that will drive Mediawan’s
growth in the coming years.”
Key financial indicators: reported and pro
forma1
€ millions H1 2017 H1 2017 -
PF1 Channels & Digital 27.2 54.2
Production & Distribution 11.3 32.6
Revenue 38.6 86.8 Channels &
Digital 4.4 7.6 Production & Distribution
7.2 15.5 Overheads (1.6) (1.6)
EBITDA*
10.0 21.5 Current EBIT
9.0 19.6
30/06/2017 31/12/2016 Net
financial debt (33) 251
Consolidated cash position 104
251 Shareholders’ equity 214
244
* EBITDA: earnings before interests,
taxes, depreciation & amortization (excluding
amortization of audiovisual rights which are included included in
the EBITDA)
Creation of an independent European audiovisual content
group
In early 2017, Mediawan carried out its first structuring
operation with the acquisition of Groupe AB, thus creating the
foundations for an independent European audiovisual content and
media group. After contractual adjustments on the basis of closing
accounts, the definitive acquisition price was €280.0 million.
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.
Mediawan, via Groupe AB, completed the acquisition of an 80%
stake in CC&C, a company that specializes in the audiovisual
production of historical documentaries, from its founding partners.
CC&C has notably created a collection of historical
documentaries built around the “Apocalypse” brand that has been
enjoying record viewing figures in France and 165 other
countries.
In July 2017, the Group also acquired the remaining 35% of
minority interests in channel RTL9 that it did not already own from
RTL Group.
In order to support its development objectives and be capable of
continuing its organic and external growth initiatives, Mediawan
has also strengthened its managerial structure, and appointed
Orla Noonan – CEO of Groupe AB – to its Strategic
Committee.
Operational developments and fine business
performance
- Numerous
operational developments
Since the start of the year, the Group has launched numerous
initiatives in order to accelerate growth on its two business
segments.
On the “Channels & Digital” segment, the Group
launched the TV channel ABXplore in Belgium. This new channel,
which consolidates the Group’s position in that country, is
dedicated to entertainment documentaries and focuses on themes such
as adventure, automotive and extreme jobs. Furthermore, the Group
has extended its partnership with Sciences & Vie to launch the
“Mon Sciences&Vie Junior” app, and has also launched specific
Swiss commercial windows for TV channel AB3.
On the “Production & Distribution” segment, the new
“Zone Blanche” series broadcast on France 2 has stood out both in
France and abroad, and the second season is already being written.
In distribution, the “Missions” sci-fi series has been sold to AMC
Networks (SVOD rights for certain territories, including the United
States), which will co-produce season 2. Moreover, the Group has
acquired all of the distribution rights in French-speaking Europe
for TV series “Babylon Berlin”, a high-end international
co-production that scooped the MIPdrama Screenings Grand Jury prize
in 2017.
- A good first
half: revenue of €86.8 million and an EBITDA margin of 25%
(data and comments on a pro forma basis: integration of Groupe AB
on January 1st)
Channels & Digital:
- Revenue from the Channels & Digital
segment totaled €54.2 million, slightly up on the figure of €53.4
million recorded in the same period of 2016, driven by the increase
in royalty revenue and the dynamism of the advertising market,
notably in France – partly offset by the decrease in the rebilling
of the costs of transport and technical services.
- EBITDA saw a substantial rise of +24%
to €7.6 million, thanks to first-half revenue growth and the
Group’s ability to control its direct costs.
Production & Distribution:
- The Production & Distribution
segment recorded a +6.2% increase in revenue to €32.6 million,
thanks to the growth in distribution sales in H1 2017 and to the
delivery of a number of audiovisual programs over the period.
- EBITDA for this segment was €15.5
million, down -11% compared to the first half of 2016 because of
the twofold effect of (i) a low amortization level in 2016
(associated with the sales mix) and (ii) cautious assumptions
regarding the amortization of the production costs of programs
delivered in H1 2017.
Solid financial structure – Net financial debt of €33 million
as of end-June 2017
As of June 30, 2017, Mediawan had a consolidated cash position
of €104 million and a financial debt of €137 million, mainly
corresponding to the €130 million bank loan (amortized over 5
years) raised for the acquisition of Groupe AB.
Compared to the cash position of €251 million at year end 2016,
the main change in net financial debt is related to the impact of
the acquisition of Groupe AB for -€289 million.
2017 objectives reaffirmed
As a reminder, Mediawan’s revenue and results are notably
correlated to the number and timing of audiovisual programs
delivered and broadcasting rights opening for the client. These
factors can lead to significant variations in the Group’s results
from one period to the next, and consolidated half-year results are
not representative of future annual results.
However, first-half activity and results and second-half
prospects allow the Group to reaffirm its 2017 objectives for the
“Groupe AB” scope, i.e. revenue and EBITDA of respectively €163
million and €37 million.
This guidance for the “Groupe AB” scope does not include the
contribution of recent acquisitions (notably the acquisition of
CC&C on July 20, 2017) nor overheads and M&A costs.
The half-year financial report is available at
www.mediawan.fr/investor-relations/#regulated
Next financial press release: Q3 2017 revenue, on
November 13, 2017 (after market close).
About Mediawan
Mediawan was incorporated in December 2015 as a Special Purpose
Acquisition Company (SPAC) for the purpose of acquiring one or more
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 regulated market of Euronext Paris.
In March 2017, Mediawan acquired Groupe AB and became present in
the content and media industries. Founded in 1977, Groupe AB is a
leading independent editor, producer and distributor of audiovisual
content in French-speaking Europe. It is primarily involved in
producing and distributing series, television movies, cartoons and
documentaries and in editing TV channels and bundled digital
services. The group has a portfolio of 19 channels, widely
distributed in French-speaking Europe and Africa. Groupe AB is one
of the largest and most diversified content managers in France,
with about 12,000 hours of programming in library and internal
production of about 80 hours per year. In 2016, Groupe AB achieved
adjusted revenues and EBITDA of, respectively, €160m and €37m.
Further information is available on Mediawan’s
website (www.mediawan.fr) and on Groupe AB’s website
(www.groupe-ab.fr).
APPENDIX
1. CONSOLIDATED BALANCE SHEET AT JUNE
30, 2017 AND DECEMBER 31, 2016
In € thousands June 30, 2017 June
30, 2016
ASSETS Intangible assets 69 238 43 Goodwill 190 276 -
Tangible assets 12 229 - Financial assets 1 818 - Deferred tax
assets 1 357 -
Non-current assets 274 918
43 Inventories 1 457 - Trade receivables 51 130 -
Other receivables 10 834 685 Marketable securities 56 - Cash at
bank and in hand 103 945 250 664
Current assets
167 421 251 349
Total assets 442 339 251 392
EQUITY AND LIABILITIES Share capital 284 313 Additional
paid-in capital 216 181 244 634 Treasury shares (172) - Reserves
(279) - Retained earnings (deficit) (1 860) (661)
Equity group
share 214 154 244 285 Non-controlling
interests
(0) - Total
equity 214 154 244 285 Long-term
borrowings 110 441 - Post-employment benefit obligations 2 770 -
Deferred tax liabilities 5 880 0
Non-current
liabilities 119 091 0 Short-term
borrowings and other financial liabilities 26 797 - Current
provisions 2 483 - Trade payables 46 730 7 087 Other payables 31
540 19 Deferred income 668 Current tax payables 874 -
Current liabilities 109 093 7 106
Total equity and liabilities
442 339 251 392
2. CONSOLIDATED INCOME STATEMENT –
PERIODS FROM JANUARY 1 TO JUNE 30, 2017 AND JANUARY 1 TO JUNE 30,
2016
In € thousands June 30, 2017 June
30, 2016
Revenue 38 597 - Cost of goods sold (22
030) -
Gross margin 16 567 - Selling, general
and administrative expenses (7 525) -
Current EBIT
9 042 - Other operating income and expenses
(6 171) (213)
EBIT 2 872 (213)
Cost of net financial debt (1 312) - Other financial income
and expenses (49) (2)
Net financial income (expenses) (1
361) (2) Pre-tax income /
(loss) 1 510 (215) Current and
deferred tax (expense) / benefit (2 400) 0,0
Net income / (loss)
(890) (215) Profit
(loss) after taxes (890) (215)
Net income (loss), Group share
(1 199) (215) Minority interests 309
- Basic earnings / (loss) per share attributable to
owners (0,040) (0,015) Diluted earnings /(loss) per share (0,040)
(0,015)
3. PRO FORMA FINANCIAL
INFORMATION
In € thousands
Mediawan
auditedfinancialinformationfor the 6
monthsclosedJune 30, 2017
Groupe AB auditedfinancial
informationfor the 3 monthsfrom January 1st
toMarch 30, 2017[1]
Unaudited pro
formaadjustments [2]
Pro forma unauditedP&L
accountfor the 6 monthsclosed June 30, 2017
Revenue 38 597 49 937 (1 750) 86 784
EBITDA[3] 10 022 12 386 (928)
21 481 Current EBIT 9 042 11 466 (928) 19 581
EBIT 2 872 11 027 5 682 19 581
[1]: Period before acquisition by
Mediawan [2]: Corresponds mainly to adjustments of (i) non
recurring costs related to Groupe AB acquisition and (ii) a
quarterly €1.8m compensation claim
[3]: Mediawan's key analytical performance
indicator - Earnings before depreciation & amortization and
provisions but after the amortization of audiovisualrights
1 Reported results include 3 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170926006463/en/
MEDIAWANinvestors@mediawan.eupress@mediawan.euorNewCapInvestor
RelationsMarc Willaume, +33 1 44 71 00
13mediawan@newcap.euorNewCapMedia RelationsNicolas Merigeau,
+33 1 44 71 98 55mediawan@newcap.eu