FL Entertainment: H1 2023 Results
Press Release
Paris, 2
August 2023
First-half 2023
Results
EXCELLENT
FINANCIAL RESULTS THANKS
TO SUSTAINED BUSINESS MOMENTUM AND
INDUSTRY-LEADING PROFITABILITY
STRATEGIC
EXPANSION OF
ENTERTAINMENT OFFER TO LIVE EVENT
PRODUCTION WITH
INVESTMENTS IN BALICH WONDER STUDIO &
THE INDEPENDENTS
2023 ADJUSTED
EBITDA GUIDANCE
INCREASED TO
€750MTO REFLECT
M&A TRANSACTIONS
H1
2023 FINANCIAL
HIGHLIGHTS
-
Revenue up
+7.9% at
constant exchange rates to €1,923m in H1 2023 (+6.8% reported) with
double-digit growth in Q2 2023 (+14.2% at constant exchange
rates)
- Strong growth in
Adjusted EBITDA1: up +10.1% to €327m
- Adjusted net
income1 up
+23.8%
to €167m, net income at €12m (H1 2022: net loss of -€18m2)
- Adjusted
free cash flow conversion1
of
84%
- Strong liquidity position
of €468m and
leverage3
ratio of
3.3x at the end
of June 2023 on cash payment seasonality, expected to return to
3.1x3 at year-end, proforma acquisitions
- Successful refinancing of
Banijay debt, 3-year extension of maturity and ~€200m of
new financing
- FY
2023 objectives and
mid-term outlook
re-confirmed, with 2023
Adjusted EBITDA
increased to take into account the recent M&A
transactions.
H1 2023
BUSINESS HIGHLIGHTS
- Content
production & distribution
- Expanding into Live event
production with two strategic transactions – Balich Wonder Studio4
and The Independents – to capitalize on significant growth
opportunities in unconsolidated market
- All key activities contributing to
growth: continued strong demand for iconic “superbrands”, powerful
IP adapted for multiple geographies and increased activity with
streaming platforms
- Online sports betting &
gaming
- Activating new strategic
partnerships, enhanced features and cross-selling strategies
- Continued growth in player numbers
with +36% increase in Unique Active Players compared to H1 2022,
highlights attractiveness of the platform
François Riahi, CEO of FL Entertainment,
said:
“We delivered excellent first half results that
demonstrate the strength of our differentiated and complementary
business model, as well as the creativity and agility of our teams.
We saw double-digit growth in Q2 that contributed to our earnings
and profitability.
Our unrivalled multi-format, geographic and IP
offer in Content production and distribution continues to ensure we
are the leading and premier partner for both linear broadcasters as
well as new and established streaming platforms which represent a
rapidly increasing part of our business. Our unique de-risked
business model and approach are strong levers that have, once
again, allowed Banijay to outperform its market.
Our Online sports betting & gaming business
maintained its double-digit revenue growth across all activities
thanks to an increased number of Unique Active Players and our
geographic and product diversity.
As part of our wider strategy to become an
integrated global entertainment leader, we expanded our Content
production & distribution business into live events, making
strategic investments in two profitable, growing businesses that
are established leaders in their markets. This is a largely
unconsolidated segment of the global entertainment industry with
significant growth potential and synergies with our existing
business.
We are well positioned to build on our
leadership positions and capture compelling opportunities in the
structurally growing segments of the entertainment industry,
delivering sustained profitable growth in the second half of 2023
and beyond.”
*****
FL Entertainment invites you to its H1 2023 results conference
call on:
Wednesday,
2 August 2023, at 6:00pm CET
Webcast live:You can watch the
presentation on the following
link:https://edge.media-server.com/mmc/p/4kwjcvz6
Dial-in access telephone
numbers:You need to register to the following
link:https://register.vevent.com/register/BI5db5922b92184422ad30140c0245391a
Slides related to H1 2023 results are available
on the Group’s website, in the “Investor relations” section:
https://www.flentertainment.com/
KEY FINANCIALS IN
H1
2023
|
€m |
H1 2022 |
H1 2023 |
% change |
% constant currency |
|
|
|
|
|
|
| Group
revenue |
1 800.8 |
1 923.3 |
6.8% |
7.9% |
| Adjusted
EBITDA |
297.3 |
327.3 |
10.1% |
|
| Adjusted EBITDA
margin |
16.5% |
17.0% |
|
|
|
|
|
|
|
|
| Net income |
(21.7) |
11.6 |
|
|
| Adjusted net
income* |
135.3 |
167.4 |
23.8% |
|
|
|
|
|
|
|
| Adjusted
free cash-flow |
245.8 |
274.1 |
11.6% |
|
| Free cash flow
conversion rate |
83% |
84% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve-month period ended |
31 Dec.
2022 |
30 June 2023 |
% change |
|
|
|
|
|
|
|
| Net financial
debt (reported) |
2 091 |
2,277 |
8.9% |
|
|
Net financial debt / Adjusted EBITDA |
3.1x |
3.3x |
|
|
* Refer to the Appendix for definitionH1 2022 figures are
adjusted to include holding costs of -€3.5m for comparison
purposes
H1
2023 KEY
EVENTS
Strategic growth
initiatives: expanding
into live events production
FL Entertainment has a proven ability to execute
and create value through acquisitions, with a focus on
opportunities in fast-growing segments of the global entertainment
industry. With strict financial discipline, the Group seeks out
profitable businesses with leadership positions in structurally
growing markets that offer consolidation opportunities.
FL Entertainment is expanding its Content
production & distribution business into live event production
with the proposed acquisition of Balich Wonder Studio and the
investment in The Independents. Both businesses are leaders in
their respective markets with an operating model similar to that of
the Group’s Content production & distribution activities. These
businesses complement the Group’s existing activities while
supporting FL Entertainment’s ambition to become an integrated
global entertainment leader.
“Banijay Events”, will be led by current Banijay
France Chief Executive Officer, François de Brugada. François de
Brugada has served as CEO of Banijay France since 2015 and brings a
track record of creating synergies, building an ecosystem of the
best talents, labels and IP, and business performance.
Balich Wonder Studio
Founded in 2013, Balich Wonder Studio is a
leading global live entertainment group that specializes in
creating, producing, and delivering live shows and experiences. It
is a major sporting and institutional events specialist, and has
conceived, produced and delivered the most Olympic Opening and
Closing Ceremonies of any of its competitors to date.
Headquartered in Milan, Balich has 200 employees
located in 20 markets and operates across three business units:
Ceremonies, Exhibits & Brand Experiences, and Immersive Shows
& Destination experiences.
Balich has demonstrated a ten-year track record
of impressive organic growth and generated sales of €315m in 2022.
The company operates on a cost-plus pricing model (asset light,
variable costs) and generates solid cash flow.
Banijay will acquire a 52% stake of Balich
Wonder Studio alongside the company founder and has the option to
progressively increase its stake. The transaction remains subject
to customary closing conditions and is anticipated to close in H2
2023.
The Independents
FL Entertainment has acquired a minority stake
in The Independents, a leading experiential marketing and
communications group for luxury brands, with the option to
progressively become the majority shareholder by 2026. The
transaction closed in Q2 2023.
Founded in 2017 by Isabelle Chouvet, Olivier
Chouvet and Alexandre Monteux, the company is recognized as a
one-stop-shop for luxury brands, servicing its established,
blue-chip customer base of more than 500 clients including LVMH,
Kering, L’Oréal, Richemont and Chanel, thanks to its unparalleled
reputation and high-quality of execution.
With its seven5 best-in-class agencies, a global
footprint and local market expertise, The Independents offers
marketing and communication services including experiential content
events production.
The company operates in the resilient and
growing luxury market that benefits from high barriers to entry,
the increased role of social media influencers and a greater focus
on experiences amongst Gen Z and Millennial consumers.
The Independents generated sales of ~€353m in
2022 and has strong cash flow thanks to its cost-plus business
model.
The company shares a strong corporate DNA with
Banijay: operating under a decentralized organizational structure
well-suited to developing creative talent, with an entrepreneurial
culture and experienced management.
With a proven track record in M&A, The
Independents will continue to play a leading consolidator role in a
fragmented and growing sector.
OUTLOOK
Thanks to FL Entertainment’s solid H1 2023
performance, combined with continued positive momentum across both
businesses and the strength of its unique model, the Group
re-confirms all financial objectives for 2023, increases its
Adjusted EBITDA to take into account the announced M&A
transaction, and re-confirms its mid-term outlook despite wider
macroeconomic conditions.
For the financial year 2023, FL
Entertainment anticipates the following:
Revenue:
- Mid-single digit
organic growth for Content production & distribution
- Double-digit
organic growth for Online sports betting & gaming
Increased Adjusted
EBITDA: the Group now anticipates ~€750m proforma for
Balich Wonder Studio as if the transaction was closed on 1 January
2023. This compares with the previous objective of ~€710m Adjusted
EBITDA pre-acquisitions.
~80% free cash flow
conversion
Dividend payout ratio: at least
33.3% of the Group’s Adjusted net income
Leverage ratio of 3.1x taking
into account: 1/ Adjusted EBITDA with full consolidation of Balich
Wonder Studio as if the transaction was closed on 1 January 2023;
2/ net debt including the acquisition of Balich Wonder Studio, net
of cash acquired.
As previously communicated, FL Entertainment aims to expand its
free float and stock liquidity in the short to medium term. In this
respect, it continues to review its options and monitor capital
markets.
PROFIT & LOSS –
H1 2023
H1 2022 figures are adjusted to include holding costs of -€3.5m
for comparison purposes.
|
In € million |
H1 2022 |
H1 2023 |
% change |
|
|
|
|
|
|
Revenue |
1 800.8 |
1 923.3 |
6.8% |
| External
expenses |
(864.8) |
(993.5) |
14.9% |
| Personnel
expenses excluding LTIP & employment-related earn-out &
option expenses |
(628.6) |
(590.9) |
-6.0% |
| Other operating
income & expenses excl. restructuring costs & other
non-recurring items |
(8.9) |
(11.5) |
29.5% |
| Depreciation and
amortization expenses related to D&A fiction |
(1.2) |
0.0 |
|
|
Adjusted EBITDA |
297.3 |
327.3 |
10.1% |
| Adjusted EBITDA
margin |
16.5% |
17.0% |
|
| |
|
|
|
| Restructuring
costs and other non-recurring items |
5.4 |
(9.5) |
|
| LTIP
expenses |
(66.1) |
(79.1) |
|
|
Employment-related earn-out and option expenses |
(10.5) |
(9.0) |
|
|
Depreciation and amortization (excl. D&A fiction) |
(59.0) |
(60.3) |
|
|
Operating profit/(loss) |
167.0 |
169.4 |
1.4% |
| |
|
|
|
| Cost of net
debt |
(73.6) |
(88.8) |
|
|
Other finance income/(costs) |
(85.7) |
(58.2) |
|
| Net
financial income/(expense) |
(159.3) |
(147.0) |
-7.7% |
| Share of net
income from associates & joint ventures |
(1.5) |
(1.3) |
|
|
|
|
|
|
|
Earnings before provision for income taxes |
6.2 |
21.1 |
242.0% |
|
|
|
|
|
| Income tax
expenses |
(27.8) |
(9.5) |
|
|
Profit/(loss) from continuing operations |
(21.7) |
11.6 |
|
|
Net income/(loss) for the period |
(21.7) |
11.6 |
|
|
Attributable to: |
|
|
|
| Non-controlling
interests |
2.1 |
5.3 |
|
|
Shareholders |
(23.7) |
6.3 |
|
|
|
|
|
|
|
Restructuring costs and other non-recurring items |
(5.4) |
9.5 |
|
| LTIP and
employment-related earn-out and option expenses |
76.6 |
88.1 |
|
| Other finance
income/(costs) |
85.7 |
58.2 |
|
|
|
|
|
|
|
Adjusted net income |
135.3 |
167.4 |
23.8% |
CONSOLIDATED REVENUE
IN H1 2023
In H1 2023, Group’s revenue increased by +7.9%
at constant currency to €1,923m and +6.8% in absolute terms.
This is reflected as follows by business:
|
€m |
H1 2022 |
H1 2023 |
% change |
% constant currency |
|
|
|
|
|
|
|
Production |
1 168.3 |
1 179.3 |
0.9% |
|
|
Distribution |
159.6 |
184.3 |
15.5% |
|
| Other |
76.3 |
70.4 |
-7.7% |
|
|
Content production & distribution |
1 404.2 |
1 434.0 |
2.1% |
3.5% |
|
|
|
|
|
|
|
Sportsbook |
322.3 |
389.2 |
20.8% |
|
| Casino |
46.5 |
65.4 |
40.5% |
|
| Poker |
23.2 |
28.6 |
23.6% |
|
| Other |
4.6 |
6.1 |
31.0% |
|
|
Online sports betting & gaming |
396.6 |
489.3 |
23.4% |
23.3% |
|
|
|
|
|
|
|
TOTAL REVENUE |
1 800.8 |
1 923.3 |
6.8% |
7.9% |
FL Entertainment recorded accelerated growth in
Q2 2023 where revenues were up +14.2% at constant exchange rates,
following a +1.6% increase in Q1 2023.
Content
production &
distribution:
In H1 2023, revenue totaled €1,434.0m, up +3.5%
at constant currency (+2.1% in absolute terms) compared to H1 2022.
In Q2 2023, revenue stood at €777.6m, up +9.1% at constant currency
and +7.0% in absolute terms.
H1 2023 activity was driven by a combination of
original content production (unscripted and scripted), the global
growth of iconic and proven “superbrands” in new territories, which
demonstrates the durability and continued evolution of these
titles, and general series renewals and territory extensions. This
performance continues to demonstrate a well-adapted offering with
strong creative IP and distribution capabilities catering to demand
from both linear TV and streaming platforms for key non-scripted
and scripted content.
Content production revenue was up +0.9% to
€1,179.3m in H1 2023, factoring in the return to normal
seasonality. Q2 2023 revenue increased by +7.6% having been down
-5.7% in Q1 2023.
The Group’s iconic “superbrands” continue to be
in firm demand from both broadcasters and audiences. Deal or No
Deal is returning to Spain after a 12-year hiatus, while Big
Brother, is recording its 67th adaptation with a new version in
Chile and is also returning to UK screens. Survivor is returning to
Argentinian screens after a 22-year break, and Lego Masters reached
its the 20th and 21st territories in Hungary and Japan.
The group continues to monetize its powerful IP
thanks to its ability to adapt, distribute and commercially and
digitally exploit its successful formats across multiple markets.
Banijay Italia’s game show 100% will be adapted for the first time
by Banijay Production Media for France 2, and Star Academy has been
picked up by Reshet 13 in Israel after its successful return to
France with a second season on the way.
Good Luck Guys is a non-scripted production
first created in France, where it has successfully aired for five
seasons on W9. Banijay has now also produced local versions for
Amazon Prime Video in Norway, Denmark and Sweden, which have all
been picked up for a second season, while a first season in The
Netherlands is under production.
Content distribution revenue increased by +15.5%
to €184.3m in H1 2023, reflecting a strong demand from both linear
TV and streaming platforms for key non-scripted and scripted
content.
In Q2 2022, Content distribution revenue
increased by +13.6% after +18.9% in Q1 2023.
One notable example in H1 2023 was scripted
production Marie Antoinette, which will return for a second season
on Canal+, has now been picked up in over 70 territories, including
by Disney+ in Germany.
Popstars, which was the world’s first music
reality competition, is returning to screens in France on Amazon
Prime video after a 20-year break, while the Group is seeing strong
demand for non-English language shows like Time Zone for HBO Max
Spain, and Culpa Mia for Prime Video.
Overall, the number of content hours at the end
of June 2023 increased further by +8% compared to December 2023 to
~172,000 hours and +29% compared to H1 2022.
Online sports
betting &
gaming:
In H1 2023, revenue rose by a solid +23.3% at
constant currency to €489.5m compared to H1 2022 (+23.4% on a
reported basis6 in H1 2023), with accelerated growth in Q2 2023 of
+33.3%.
The performance reflected the successful
execution of the Group’s growth strategy, capitalizing on continued
strong player momentum with new Unique Active Players up by +44%
and total Unique Active Players by +36% in H1 2023 compared to H1
2022. The implementation of new innovative features such as instant
payment, and cross-selling strategies across all other product
lines, also drove performance. On the business operations, Betclic
signed two strategic football partnerships with Liga Portugal,
until the end of the 2026-27 season and the Ruch Chorzów SA
football club in Poland, the most successful club in Poland’s
history.
All activities recorded double-digit growth in
H1 2023: on a reported basis, sportsbook revenue rose by +20.8%,
online casino by +40.5%, and online poker by +23.6%, with all lines
benefiting from gamification and constant product improvement.
At constant exchange rates and excluding
Bet-at-home operations discontinued in certain jurisdictions,
revenue was up +24% in H1 2023, driven by the continued solid
performance of Betclic entity (+26%). Bet-at-home recorded a -5%
decline in revenue.
Betclic’s remains strongly engaged in complying
with responsible gaming standards. This is illustrated in
particular by the proportion of revenue generated in locally
regulated markets which increased to 98.5% (compared to 96.5% in H1
2022), partly due to the increase of Bet-at-home in regulated
markets.
On 1 February 2023, Bet-at-home group rolled out
its new betting and gaming platform, which is expected to benefit
all countries from Q3 2023 onwards.
ADJUSTED EBITDA
IN H1 2023
Adjusted
EBITDA7 amounted to €327.3m in H1
2023, up by +10.1% on H1 2022. This represents 17.0% of Group
revenue.
|
Adjusted EBITDA
(€m) |
H1 2022 |
H1 2023 |
% change |
|
|
|
|
|
| Content
production & distribution |
198.3 |
200.7 |
1.2% |
| Online sports
betting & gaming |
103.2 |
130.2 |
26.1% |
| Holding |
(4.2) |
(3.5) |
-17.0% |
|
Adjusted EBITDA |
297.3 |
327.3 |
10.1% |
|
|
|
|
|
| Content
production & distribution |
14.1% |
14.0% |
|
| Online sports
betting & gaming |
26.0% |
26.6% |
|
|
Adjusted EBITDA margin |
16.5% |
17.0% |
|
At a Group level, external expenses rose by
+14.9% to €993.5m mainly reflecting higher betting taxes for Online
sports betting & gaming but also a change in the allocation of
free-lancers’ costs at Content production & distribution
between personnel costs and external expenses. Consequently, this
also had an impact on personnel expenses (excluding LTIP and
employment-related earn-out & option expenses) which declined
by -6% to €590.9m.
FROM ADJUSTED EBITDA TO ADJUSTED NET
INCOME
Restructuring and other non-recurring
items: -€9.5m in H1 2023 compared to +€5.4m in H1
2022.
LTIP expenses
totaled -€79m in H1 2023 compared
to -€66.1m in H1 2022. LTIPs charges reflect the accelerated phase
of the vesting at the start of the incentive plan. This is in line
with Group’s trajectory to record on average 10% of annual Adjusted
EBITDA as LTIPs expenses.
Employment-related
earn-out and option expenses: -€9.0m in
H1 2023 (-€10.5m in H1 2022).
Net financial result
Net financial result amounted to -€147.0m in H1
2023 compared to -€159.3m in H1 2022. Of this amount:
- Cost of
net debt totaled -€88.8m in H1 2023
compared to -€73.6m for the first six months of 2022. The increase
by -€15m is mostly explained by the cancellation of the old
financing fees of Content production and distribution business Term
Loans B not fully amortized at the time of the refinancing.
- Other financial income and
expenses amounted to -€58.2m in H1 2023, compared to
-€85.7m in H1 2022, mainly explained by the change in fair value of
the Put/Earn-out debt, hedging instruments and foreign exchange
losses.
Income tax expenses
The tax charge amounted to -€9.5m in H1 2023
compared to -€27.8m in H1 2022.
Adjusted net income rose by
+23.8% to €167.4m in H1 2023.
FREE CASH FLOW AND NET FINANCIAL
DEBT
The Group’s Adjusted free cash flow (after lease
payments) reached €274m in H1 2023, up +11.5% compared to
H1 2022, driven by the business performance and a continued
disciplined control of cash expenses and capital expenditures.
The change in working capital in H1 2023 is due
to the return to a normal seasonality for Content production &
distribution, following high show deliveries in H1 2022.
Adjusted free cash flow conversion after capex
and leases payment amounted to 84%.
The rise in income taxes paid was mainly
attributable to advanced tax payment on higher 2022
performance.
Adjusted operating free cash flow stood at €151m
in H1 2023.
|
€m |
H1 2022 |
H1 2023 |
% change |
|
Adjusted EBITDA |
297.3 |
327.3 |
10.1% |
| Capex |
(28.6) |
(31.0) |
|
| Disposals of
property, plant & equipment & intangible assets |
- |
0.2 |
|
| Total cash
outflows for leases that are not recognized as rental expenses |
(22.8) |
(22.4) |
|
|
Adjusted free
cash flow |
245.8 |
274.1 |
11.5% |
|
|
|
|
|
| Change in
working capital* |
(84.3) |
(69.3) |
|
| Income tax
paid |
(33.0) |
(53.5) |
|
|
Adjusted operating free cash flow |
128.5 |
151.3 |
17.7% |
*Excludes LTIP paid, exceptional items cash-out,
trade receivables on providers and players’ liabilities
The Group’s net financial debt totaled €2,277m
as of 30 June 2023 compared to €2,091m as of
31 December 2022. The increase in net
financial debt mainly reflected the seasonality of cash payments of
which the dividend payment for €148m, acquisitions and change in
financial assets for €33m, LTIP paid & exceptional items for
€26m, €89m interests recognized during H1 2023 and €42m of
others.
As a result, the financial leverage ratio stood
at 3.3x as of 30 June 2023, compared to 3.1x at
31 December 2022.
Agenda
Q3 2023 results: 9 November 2023
Investor Relations
Caroline Cohen – Phone: +33 1 44 95 23 34 –
c.cohen@flentertainment.com
Press Relations
flentertainment@brunswickgroup.com
Hugues Boëton – Phone: +33 6 79 99 27 15
Nicolas Grange – Phone: +33 6 29 56 20 19
About FL
Entertainment
Founded by Stéphane Courbit, a 30-year
entertainment industry pioneer and entrepreneur, FL Entertainment
Group is a global leader in multimedia content and gaming,
combining the strengths of Banijay, the world’s largest independent
producer distributor, with Betclic Everest Group, the
fastest-growing online sports betting platform in Europe. In 2022,
FL Entertainment recorded through Banijay and Betclic Everest
Group, a combined revenue, and Adjusted EBITDA, of €4,047m and
€670m respectively. FL Entertainment listed on Euronext Amsterdam
in July 2022.ISIN: NL0015000X07 - Bloomberg: FLE NA - Reuters:
FLE.AS
Forward-looking statementsThis
communication contains information that qualifies as inside
information within the meaning of Article 7(1) of the EU Market
Abuse Regulation.
Forward Looking StatementsSome
statements in this press release may be considered “forward-looking
statements”. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on
circumstances that may occur in the future. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that are outside of our control and impossible to predict
and may cause actual results to differ materially from any future
results expressed or implied. These forward-looking statements are
based on current expectations, estimates, forecasts, analyses and
projections about the industry in which we operate and management's
beliefs and assumptions about possible future events. You are
cautioned not to put undue reliance on these forward-looking
statements, which only express views as at the date of this press
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future events or circumstances. We do not undertake any obligation
to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events, except as may be required under applicable securities
law.
Alternative performance
measuresThe financial information in this release includes
non-IFRS financial measures and ratios (e.g. non-IFRS metrics, such
as adjusted EBITDA) that are not recognized as measures of
financial performance or liquidity under IFRS. The non-IFRS
financial measures presented are measures used by management to
monitor the underlying performance of the business and operations
and, have therefore not been audited or reviewed. Furthermore, they
may not be indicative of the historical operating results, nor are
they meant to be predictive of future results. These non-IFRS
measures are presented because they are considered important
supplementary measurements of FL Entertainment N.V.'s (the
"Company") performance, and we believe that these and similar
measures are widely used in the industry in which the Company
operates as a way to evaluate a company’s operating performance and
liquidity. Not all companies calculate non-IFRS financial measures
in the same manner or on a consistent basis. As a result, these
measures and ratios may not be comparable to measures used by other
companies under the same or similar names.
Regulated information related to this
press release is available on the
website:https://www.flentertainment.com/results-center/https://www.flentertainment.com/
APPENDIX
Glossary
Adjusted EBITDA: for a period
is defined as the operating profit for that period excluding
restructuring costs and other non-core items, costs associated with
the long-term incentive plan within the Group (the "LTIP") and
employment related earn-out and option expenses, and depreciation
and amortization (excluding D&A fiction). D&A fiction are
costs related to the amortization of fiction production, which the
Group considers to be operating costs. As a result of the D&A
fiction, the depreciation and amortization line item in the Group's
combined statement of income deviates from the depreciation and
amortization costs in this line item.
Adjusted net income: defined as
net income (loss) adjusted for restructuring costs and other
non-core items, costs associated with the LTIP and employment
related earn-out and option expenses and other financial
income.
Adjusted free cash flow:
defined as Adjusted EBITDA adjusted for purchase and disposal of
property plant and equipment and of intangible assets and cash
outflows for leases that are not recognized as rental expenses.
Adjusted
operating free cash flow: defined
as adjusted EBITDA adjusted for purchase and disposal of property
plant and equipment and of intangible assets, cash outflows for
leases that are not recognized as rental expenses, change in
working capital requirements, and income tax paid.
Net financial debt: defined as
the sum of bonds, bank borrowings, bank overdrafts, vendor loans,
accrued interests on bonds and bank borrowings minus cash and cash
equivalents, trade receivables on providers, cash in trusts, plus
players liabilities and escrow accounts plus (or minus) the fair
value of net derivatives liabilities (or assets) for that period.
Net financial debt is pre-IFRS 16.
Leverage: Adjusted net
financial debt / Adjusted EBITDA.
Number of Unique Active
Players: average number of unique players playing at least
once a month in a defined period.
Table 1: Revenue breakdown by
activity
|
€m |
Q1 2022 |
Q1 2023 |
% change |
% constant currency |
Q2 2022 |
Q2 2023 |
% change |
% constant currency |
H1 2022 |
H1 2023 |
% change |
% constant currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
586.4 |
553.0 |
-5.7% |
|
581.9 |
626.3 |
7.6% |
|
1 168.3 |
1 179.3 |
0.9% |
|
| Distribution |
57.1 |
67.9 |
18.9% |
|
102.5 |
116.5 |
13.6% |
|
159.6 |
184.3 |
15.5% |
|
| Other |
34.0 |
35.5 |
4.5% |
|
42.3 |
34.9 |
-17.5% |
|
76.3 |
70.4 |
-7.7% |
|
|
Content production & distribution |
677.5 |
656.4 |
-3.1% |
-2.5% |
726.7 |
777.6 |
7.0% |
9.1% |
1 404.2 |
1 434.0 |
2.1% |
3.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sportsbook |
175.0 |
194.8 |
11.3% |
|
147.3 |
194.4 |
32.0% |
|
322.3 |
389.2 |
20.8% |
|
| Casino |
23.3 |
30.6 |
31.6% |
|
23.2 |
34.7 |
49.4% |
|
46.5 |
65.4 |
40.5% |
|
| Poker |
12.3 |
15.2 |
23.8% |
|
10.9 |
13.5 |
23.3% |
|
23.2 |
28.6 |
23.6% |
|
| Other |
2.4 |
3.1 |
32.8% |
|
2.3 |
2.9 |
29.2% |
|
4.6 |
6.1 |
31.0% |
|
|
Online sports betting & gaming |
212.9 |
243.8 |
14.5% |
14.6% |
183.7 |
245.5 |
33.6% |
33.3% |
396.6 |
489.3 |
23.4% |
23.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUE |
890.4 |
900.2 |
1.1% |
1.6% |
910.4 |
1 023.1 |
12.4% |
14.2% |
1 800.8 |
1 923.3 |
6.8% |
7.9% |
Table 2: Adjusted operating free cash
flow by activity
|
Content production & distribution -
€m |
H1 2022 |
H1 2023 |
% change |
| |
|
|
|
| Adjusted
EBITDA |
198.3 |
200.7 |
1.2% |
| Adjusted EBITDA
margin (%) |
14.1% |
14.0% |
|
|
|
|
|
|
| Capex |
(24.5) |
(27.0) |
|
| Total cash
outflows for leases that are not recognised as rental expenses |
(21.2) |
(20.9) |
|
|
Adjusted Free-cash flow |
152.6 |
152.7 |
0.1% |
|
|
|
|
|
| Change in
WC(1) |
(64.6) |
(64.2) |
|
| Income tax
paid |
(15.6) |
(18.6) |
|
|
Adjusted Operating free cash flow |
72.3 |
70.0 |
-3.1% |
|
Online sports betting & gaming - €m |
H1 2022 |
H1 2023 |
% change |
|
|
|
|
|
| Adjusted
EBITDA |
103.2 |
130.2 |
26.1% |
| Adjusted EBITDA
margin (%) |
26.0% |
26.6% |
|
|
|
|
|
|
| Capex |
(4.1) |
(3.8) |
|
| Total cash
outflows for leases that are not recognised as rental expenses |
(1.7) |
(1.5) |
|
|
Adjusted free-cash flow |
97.4 |
124.9 |
28.2% |
|
|
|
|
|
| Change in
WC(2) |
(20.6) |
(5.1) |
|
| Income tax
paid |
(17.4) |
(34.3) |
|
|
Adjusted Operating free cash flow |
59.4 |
85.4 |
43.8% |
(1) Excluding LTIP payment and exceptional items for Content
production & distribution
(2) Excluding LTIP payment, exceptional items, trade receivables
on providers and players’ liabilities for Online sports betting
& gaming
Table 3: Consolidated
statement of cash flows
|
In € million |
30 June 2022 |
30 June 2023 |
|
Profit/(loss) |
(18.2) |
11.6 |
|
Adjustments: |
311.8 |
309.0 |
| Share of
profit/(loss) of associates and joint ventures |
1.5 |
1.3 |
| Amortization,
depreciation, impairment losses and provisions, net of
reversals |
59.8 |
60.6 |
| Employee
benefits LTIP & employment-related earn-out and option
expenses |
76.6 |
88.1 |
| Change in fair
value of financial instruments |
89.7 |
31.0 |
| Income tax
expenses |
27.8 |
9.5 |
| Other
adjustments (1) |
(18.7) |
26.6 |
| Cost of
financial debt and current accounts |
75.0 |
91.9 |
|
Gross cash provided by operating activities |
293.6 |
320.6 |
| Changes in
working capital |
(84.2) |
(108.4) |
| Income tax
paid |
(33.0) |
(53.5) |
|
Net cash flows provided by operating
activities |
176.4 |
158.7 |
| Purchase of
property, plant and equipment and intangible assets |
(28.6) |
(31.0) |
| Purchases of
consolidated companies, net of acquired cash |
(13.9) |
(18.1) |
| Increase in
financial assets |
(2.5) |
(95.4) |
| Disposals of
property, plant and equipment and intangible assets |
|
0.2 |
| Proceeds from
sales of consolidated companies, after divested cash |
2.2 |
0.0 |
| Decrease in
financial assets |
0.4 |
6.6 |
|
Dividends received |
0.3 |
0.1 |
| Net cash
provided by/(used for) investing activities |
(42.2) |
(137.6) |
| Dividends
paid |
0.0 |
(148.1) |
| Dividends paid
by consolidated companies to their non-controlling interests |
(1.5) |
(17.3) |
| Proceeds from
borrowings and other financial liabilities |
11.1 |
362.4 |
| Repayment of
borrowings and other financial liabilities |
(47.9) |
(114.6) |
| Interest
paid |
(65.3) |
(91.2) |
|
Net cash flows from/(used in) financing
activities |
(103.6) |
(8.8) |
| Impact of
changes in foreign exchange rates |
25.2 |
(28.2) |
|
Net increase/(decrease) of cash and cash
equivalents |
55.7 |
(15.9) |
|
|
|
|
| Net cash and
cash equivalents at the beginning of the period |
432.4 |
479.4 |
| Net cash and
cash equivalents at the end of the period |
488.0 |
463.5 |
(1) Other adjustments include notably unrealized foreign
exchange gains on disposal and liquidation of subsidiaries
Table 4:
Consolidated
balance sheet
|
In € million |
31 December 2022 |
30 June 2023 |
|
ASSETS |
|
|
| Goodwill |
2 570.2 |
2 599.2 |
| Intangible
assets |
194.8 |
205.7 |
| Right-of-use
assets |
160.8 |
174.9 |
| Property, plant
and equipment |
59.2 |
62.7 |
| Investments in
associates and joint ventures |
14.0 |
26.4 |
| Non-current
financial assets |
161.7 |
216.7 |
| Other non-current
assets |
35.9 |
31.1 |
|
Deferred tax assets |
51.9 |
64.3 |
|
Non-current assets |
3 248.6 |
3 381.1 |
|
|
|
|
| Inventories and
work in progress |
705.2 |
819.4 |
| Trade
receivables |
496.5 |
505.9 |
| Other current
assets |
288.3 |
319.1 |
| Current financial
assets |
24.7 |
29.4 |
|
Cash and cash equivalents |
479.4 |
468.3 |
| Current
assets |
1 994.1 |
2 142.0 |
|
|
|
|
| TOTAL
ASSETS |
5 242.6 |
5 523.0 |
| EQUITY
AND LIABILITIES |
|
|
| Share
capital |
8.0 |
8.0 |
| Share
premiums |
91.6 |
(142.1) |
| Net
income/(loss) - attributable to shareholders |
(88.0) |
6.3 |
|
Shareholders' equity |
11.7 |
(127.9) |
|
Non-controlling interests |
6.3 |
4.9 |
|
Total equity |
18.0 |
(122.9) |
|
|
|
|
| Other
securities |
130.5 |
130.5 |
| Long-term
borrowings and other financial liabilities |
2 290.3 |
2 600.0 |
| Long-term
lease liabilities |
131.2 |
147.0 |
| Non-current
provisions |
27.7 |
30.4 |
| Other
non-current liabilities |
441.3 |
365.7 |
| Deferred tax
liabilities |
7.4 |
9.0 |
|
Non-current liabilities |
3 028.4 |
3 282.6 |
|
|
|
|
| Short-term
borrowings and bank overdrafts |
349.4 |
301.7 |
| Short-term
lease liabilities |
40.4 |
39.6 |
| Trade
payables |
663.6 |
607.3 |
| Current
provisions |
23.0 |
14.7 |
| Customer
contract liabilities |
693.3 |
841.6 |
| Other current
liabilities |
426.6 |
558.5 |
|
Current liabilities |
2 196.2 |
2 363.3 |
|
|
|
|
| TOTAL
EQUITY AND LIABILITIES |
5 242.6 |
5 523.0 |
Table 5: IFRS consolidated net
financial debt
|
In € million |
31 December 2022 |
30 June 2023 |
| Bonds |
1 330.8 |
1 277.9 |
| Bank
borrowings |
1 140.0 |
1 445.3 |
| Bank
overdrafts |
0.0 |
4.7 |
| Accrued
interests on bonds and bank borrowings |
29.6 |
30.4 |
| Vendor
loans |
138.4 |
140.8 |
|
Total bank indebtedness |
2 638.9 |
2 899.1 |
| Cash and cash
equivalents |
(479.4) |
(468.3) |
| Financial
Assets |
|
(77.0) |
| Trade
receivables on providers |
(13.1) |
(26.7) |
| Players'
liabilities |
50.6 |
44.5 |
| Cash in
trusts |
(31.6) |
(28.5) |
|
Net cash and cash equivalents |
(473.6) |
(556.0) |
|
|
|
|
|
Net debt before intercompany loan and derivatives
effects |
2 165.3 |
2 343.1 |
|
|
|
|
|
Net debt before derivatives effects |
2 165.3 |
2 343.1 |
| Derivatives -
liabilities |
- |
2.7 |
| Derivatives -
assets |
(74.5) |
(68.6) |
|
Net debt |
2 090.8 |
2 277.2 |
Table 6:
Cash flow statement
|
|
30 June 2023 |
|
In € million |
Content production & distribution |
Online sports betting & gaming |
Holding |
Total Group |
|
Net cash flow from operating activities |
96.7 |
71.2 |
(9.2) |
158.7 |
|
Cash flow (used in)/from investing activities |
(50.4) |
(0.8) |
(86.4) |
(137.6) |
|
Cash flow (used in)/from financing activities |
(27.5) |
(74.8) |
93.5 |
(8.8) |
|
Other |
(28.2) |
- |
- |
(28.2) |
|
Net increase/(decrease) in cash and cash
equivalents |
(9.3) |
(4.5) |
(2.1) |
(15.9) |
|
Cash and cash equivalents as of 1 January |
396.8 |
72.1 |
10.5 |
479.4 |
|
Cash and cash equivalents as of 30 June |
387.6 |
67.6 |
8.4 |
463.5 |
|
|
30 June 2022 |
|
In € million |
Content production & distribution |
Online sports betting & gaming |
Holding |
Total Group |
|
Net cash flow from operating activities |
102.6 |
73.5 |
0.3 |
176.4 |
|
Cash flow (used in)/from investing activities |
(36.9) |
(5.4) |
- |
(42.2) |
|
Cash flow (used in)/from financing activities |
(79.7) |
(24.0) |
0.0 |
(103.6) |
|
Other |
25.2 |
- |
- |
25.2 |
|
Net increase/(decrease) in cash and cash
equivalents |
11.2 |
44.2 |
0.3 |
55.7 |
|
Cash and cash equivalents as of 1 January |
343.1 |
87.9 |
1.5 |
432.4 |
|
Cash and cash equivalents as of 30 June |
354.3 |
132.1 |
1.8 |
488.2 |
Table 7:
Content production & distribution:
Net financial debt as
of 30 June
2023
|
At Banijay level: |
|
|
| In
€ million |
31-Dec-2022 |
30 June
2023 |
| |
|
|
| Total
Secured Debt (OM definition) |
1 847 |
1 984.0 |
| Other debt |
339 |
325.3 |
|
SUN |
409 |
408.7 |
|
Total Debt |
2 595 |
2 718.0 |
| Net Cash |
(396) |
(386) |
|
Total net financial debt (excl.
earn-out &
PUT) |
2 199 |
2 332 |
| EO & PUT |
124 |
159 |
|
Total net financial debt (incl.
earn-out &
PUT) |
2 323 |
2 491 |
|
|
|
|
| Ratios at
Banijay level: |
|
|
| Leverage
ratio |
4.46 |
4.70 |
| Adjusted Leverage
ratio |
4.71 |
5.02 |
| Senior secured
net leverage ratio |
3.20 |
3.54 |
| |
|
|
| Cash
conversion rate – Banijay
definition* |
75% |
73% |
|
|
|
|
|
Banijay contribution at FL Entertainment
level: |
|
|
| In
€ million |
31-Dec-2022 |
30 June 2023 |
|
|
|
|
| Total net
financial debt (excl. earn-out
& PUT) |
2 199 |
2 332 |
| Transaction costs
amortization and others |
(74) |
(63) |
| Lease debt (IFRS
16) |
(160) |
(172) |
|
Total Net financial debt
at FL Entertainment level |
1 965 |
2 097 |
|
Derivatives |
(69) |
(61) |
|
Total Net financial debt
at FL Entertainment level |
1 896 |
2 035 |
Leverage ratio: total Net financial debt / (Adj
EBITDA + shareholder fees + proforma impact from acquisitions)
Adjusted leverage ratio: total Net financial
debt including earn-out and PUTS / (Adjusted EBITDA + shareholder
fees + proforma impact from acquisitions)
Senior secured net leverage ratio: total Senior
Secure Notes + earn-out – Cash / (Adjusted EBITDA + shareholder
fees + proforma impact from acquisitions)
* Based on free cash flow as defined as follows: Adjusted EBITDA
+ change in working capital – income tax paid – capex with LTIP
paid
1 Adjusted EBITDA, Adjusted net income and Adjusted free cash
flow conversion: figures in H1 2022 are adjusted to include holding
costs of -€3.5m for comparison purposes2 Reported net income in H1
20223 Leverage of 3.1x taking into account: 1/ Adj. EBITDA with
full consolidation of Balich Wonder Studio as if the transaction
was closed on 1 January 2023; 2/ net debt including the acquisition
of Balich Wonder Studio, net of cash acquired4 The acquisition
remains subject to customary closing conditions and is anticipated
to close in H2 2023 For definition, refer to the Appendix
5 Of which Ctzar has been recently acquired in France6 Including
the discontinued Bet-at-home activities7 Figures in H1 2022 are
adjusted to take into account holding costs of -€3.5m for
comparison purposes
- FL Entertainment_PR_H1 2023 Results
FL Entertainment NV (EU:FLE)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
FL Entertainment NV (EU:FLE)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
