GAUMONT : Half-year consolidated results as of June 30, 2018
Neuilly-sur-Seine, September 24, 2018
The Gaumont Board of directors, which met on September 20, 2018 under the chairmanship of Nicolas Seydoux, approved the financial statements for the period ended June 30, 2018.
CONSOLIDATED HALF-YEAR RESULTS as of June 30, 2018
|Key figures from operations (in millions of euros)||June 30, 2018 1||June 30, 2017||% change|
|Consolidated revenue||65,6||56,8||+ 15 %|
|Operating income after share of net income of associates||-3,1||134,2||na|
|Net income, Group share||-2,2||130,5||na|
|Investments||48,4||51,3||- 6 %|
|Key balance sheet figures (in millions of euros)||June 30, 2018 1||December 31, 2017||% change|
|Equity attributable to owners of the parent||279,3||305,1||- 8 %|
|Net borrowings||5,4||27,7||- 81 %|
|1 The limited review procedures have been carried out and the statutory auditors' report on the half-yearly financial information has been issued on September 20, 2018.|
- REVENUE FOR THE FIRST HALF OF 2018
Consolidated revenue for the first half of 2018 amounted to €65.6 million, versus €56.8 million as of June 30, 2017.
- Cinema production and distribution
Revenue for the cinema production and distribution business amounted to €51.4 million as of June 30, 2018, versus €40.9 million as of June 30, 2017:
- revenue from film distribution in French movie theaters stood at €13.3 million as of June 30, 2018, versus €11.6 million as of June 30, 2017. In the first half of 2018, 5.5 million cinema tickets were sold for the six movies released, compared with 4.7 million tickets for seven movies as of June 30, 2017. Rolling to You sold 2.4 million tickets, and Belle and Sebastian, Friends for Life sold almost 1.7 million;
- revenue from video distribution and video on demand in France amounted to €7.3 million as of June 30, 2018, versus €6.3 million as of June 30, 2017. Sales of new films increased over the period with good results for See You up There and C'est la Vie!. Physical video sales of catalog titles were up, while video on demand sales did not manage to match the results of 2017, which was an exceptionally good year;
- sales of broadcasting rights to French television channels totaled €13.1 million as of June 30, 2018, versus €7.8 million as of June 30, 2017. Sales of catalog titles to historical television channels were higher than for the previous year, while sales to digital channels and cable decreased. More than 90 movies have been sold since the beginning of the year;
- international sales of rights stood at €14.5 million as of June 30, 2018, versus €12.9 million as of June 30, 2017. They were driven by the sales of new releases that increased significantly due to the success of The Death of Stalin and C'est la Vie!. Sales of catalog titles also rose because of a new contract with China.
- Television production and distribution
Revenue for the television production and distribution business amounted to €11.4 million as of June 30, 2018, versus €13.3 million as of June 30, 2017.
As of June 30, 2018, the animated series Belle and Sebastian and Trulli Tales as well as the first episodes of Furiki wheels have been delivered to the main broadcasters during the period. Broadcasting of the French drama series Nox began on Canal+ on March 12, 2018.
Season 3 of F is for Family and season 4 of Narcos will be delivered to Netflix in the second half of 2018.
- RESULTS FOR THE FIRST HALF OF 2018
Gaumont recorded a net loss of €2.2 million as of June 30, 2018 versus a profit of €130.5 million as of June 30, 2017.
Results for the two periods cannot be compared:
- As of June 30, 2017, the profit includes the exceptional gain on disposal of the 34% minority stake in Les Cinémas Pathé Gaumont for €143.9 million;
- As of June 30, 2018:
- operating income from cinema production and distribution, excluding overheads, recorded a profit of €16.6 million as of June 30, 2018 compared to €8.7 million as of June 30, 2017,
- operating income from the television production business in France and in the United States, excluding overheads, recorded a loss of €0.1 million as of June 30, 2018 compared to a loss of €1.2 million for the same period of 2017. This result is due to the fact that the main series shot in the United States will be delivered in the second half-year.
- EQUITY AND BORROWINGS
Consolidated equity (group share) stood at €279.3 million as of June 30, 2018, versus €305.1 million as of December 31, 2017. The decrease in equity was due essentially to Gaumont USA Inc buying an additional 15% stake in Gaumont Television USA Llc for $24 million.
The Group's net borrowings stood at €5.4 million as of June 30, 2018, versus €27.7 million as of December 31, 2017. This includes a positive cash balance of €129.7 million, the Gaumont SA bond for €60 million and self-liquidating production loans of €52.7 million, based on proceeds from pre-financing and the release of French and American series.
As of June 30, 2018, the balance due from Pathé for the sale of Gaumont's stake in Les Cinémas Pathé Gaumont was €63.3 million. It decreased from the same amount after the early payment of the second installment initially due on June 30, 2019.
Four movies were scheduled to be released in theaters by December 31, 2018:
- Tricky old Dogs, directed by Christophe Duthuron, starring Eddy Mitchell, Roland Giraud, Pierre Richard and Alice Pol, was released on August 22 and sold a total of 750,000 tickets in four weeks;
- Capharnaum, directed by Nadine Labaki, starring Zain Alrafeea and Yordanos Shifera, will be released on October 17;
- A Man in a Hurry, directed by Hervé Mimran, starring Fabrice Luchini and Leila Bekhti, will be released on November 7;
- The Emperor of Paris, directed by Jean-François Richet, starring Vincent Cassel, August Diehl, Olga Kurylenko, Freya Mavor, Denis Ménochet, Patrick Chesnais, James Thierrée and Fabrice Luchini, will be released on December 19.
The following television series will be delivered in the second half of 2018:
- Narcos Mexico, season 4 of the 10-episode American drama directed by José Padilha and Eric Newman. The series will be available on Netflix from November 16, 2018;
- F is for Family, season 3 of the 10-episode cartoon series, which will be available on Netflix in the last quarter of 2018;
- The Art of Crime season 2, a six-episode French drama, to France 2;
- the last episodes of the cartoon series Furiki Wheels to France 3 and Disney.
- DATES OF NEXT FINANCIAL COMMUNICATION
A press release on the full-year consolidated results as of December 31, 2018 will be published on February 22, 2019.
APPENDIX: Half-year consolidated revenue
|Consolidated revenue by business segment (in millions of euros)||2018||2017||% change|
|Movie theaters France||13.3||11.6||14.9%|
|Video on demand France||2.5||2.1||17.5%|
|Other movie distribution income (1)||3.2||2.3||41.7%|
|Animated films and series||4.3||0.2||1820.0%|
|Other miscellaneous income||1.1||0.9||16.7%|
|(1) Primarily includes spin-off products, music publishing and the Gaumont Pathé Archives business|