Editoria e Media
GAUMONT: Half-year consolidated results as of June 30, 2019
Press release
Neuilly-sur-Seine, September 10, 2019
The Gaumont Board of directors, which met today under the chairmanship of Nicolas Seydoux, approved the financial statements for the period ended June 30, 2019.
CONSOLIDATED HALF-YEAR RESULTS as of June 30, 2019
In 2017, Gaumont decided to sell its movie theater operation business to focus on production, particularly series production in the U.S., Germany and the UK. 2018 and 2019 represent a transition and development period for these new activities.
Apart from how well released movies are received by the public, Gaumont's earnings are closely linked to the delivery schedule of the various series.
Consolidated revenue for the first half of 2019 amounted to €47.4 million, versus €65.6 million as of June 30, 2019.
Revenue for the film production and distribution business amounted to €34.5 million as of June 30, 2019, versus €51.4 million as of June 30, 2018:
Revenue for the television production and distribution business amounted to €10.5 million as of June 30, 2019, versus €11.4 million as of June 30, 2018. It includes €3.5 million in revenue generated by the German subsidiary, which began operating in 2018.
The animated series Noddy Season 2 was partially delivered in the first half of 2019. The one-off special Les Ombres de Lisieux was also delivered to France Télévisions.
Gaumont recorded a net loss of €18.1 million as of June 30, 2019, against a loss of €2.2 million as of June 30, 2018.
Operating income from cinema production and distribution, excluding overheads, recorded a profit of €6.9 million as of June 30, 2019 compared to €16.6 million as of June 30, 2018. This decline is due to lower film performances in theaters in the first half of 2019, combined with a fall in sales of catalog titles, particularly to digital channels.
The television production and distribution business, excluding overheads, recorded an operating loss of €1.2 million as of June 30, 2019, compared with a loss of €0.1 million as of June 30, 2018. Major deliveries will take place in the second half of 2019 in the United States, France and Germany.
Revenue from the holding and real estate businesses totaled €0.7 million as of June 30, 2019, versus €1.7 million as of June 30, 2018.
Support for the development costs of European operations amounted for €1.2 million during the period.
The Group's net borrowings, excluding its liability under IFRS 16, stood at €49.1 million as of June 30, 2019, against net cash of €20.1 million as of December 31, 2018. It mainly includes a positive cash balance of €96.1 million, the Gaumont SA bond for €60.0 million and self-liquidating loans of €76.9 million, based on proceeds from pre-financing and release of American series.
Movie investment came in at €14.6 million in the first half of 2019, compared with €9.4 million in the first half of 2018. Television investment totaled €56.5 million in the first half of 2019, compared with €38.4 million in the same period of 2018. In March 2019, Gaumont acquired the company CDG SAS, to which the entire branch of a business had been transferred, comprising producer shares, rights to a share of the proceeds and distribution rights for most of the Roissy Films catalog.
Two films have been released since July 1 :
Three movies are scheduled to be released in theaters in the second half of 2019:
The following television series will be delivered in the second half of 2019:
A press release on the full-year consolidated results as of December 31, 2019 will be published on March 10, 2020.
APPENDIX: Half-year consolidated revenue
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