Highlight Group publishes results for fiscal year 2023

EQS-News: Highlight Communications AG / Key word(s): Annual Results
Highlight Group publishes results for fiscal year 2023

24.04.2024 / 14:15 CET/CEST
The issuer is solely responsible for the content of this announcement.

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PRESS RELEASE

Highlight Group publishes results for fiscal year 2023

  * Consolidated sales amounted to CHF 421.3 million in the financial year
    (previous year: CHF 523.8 million), due to production-related factors in
    the Film segment

* Due to foreign-currency effects, EBIT amounts to CHF 6.9 million

  * Consolidated net profit for the period attributable to shareholders of
    CHF -10.6 million

* The equity ratio decreases to 26.8% as at December 31, 2023

Pratteln, April 24, 2023 - The Highlight Group generates solid consolidated
sales in 2023 in a difficult environment

Group development in fiscal 2023

  * The Highlight Group's business performance in 2023 was more subdued than
    in the previous year. At CHF 421.3 million, consolidated sales were down
    19.6 % on the previous year's figure of CHF 523.8 million due to
    production-related factors and foreign currency effects.

  * The operating profit (EBIT) fell by CHF 7.7 million or 52.9 % to CHF 6.9
    million (previous year: CHF 14.6 million) due to foreign currency
    effects and declining consumer behavior.

  * The share of earnings attributable to Highlight shareholders decreased
    to CHF -10.6 million after CHF -2.9 million in the previous year.

Development of the operating segments in 2023

Film segment

  * There were a total of three in-house and co-productions in theatrical
    production. In 2023, shooting took place on the in-house productions
    "Chantal im Märchenland" and "September 5", as well as a psychological
    thriller set in the US with the working title of "Psycho Killer". In
    terms of international projects, shooting for "In the Lost Lands and
    "Hagen" was completed. In theatrical distribution, ten films were
    released in German theaters during the fiscal year, including
    "Rehragout-Rendezvous" from the Eberhofer series, "Manta Manta - Zwoter
    Teil" and "Sun and Concrete". In TV exploitation/license trading,
    numerous license sales of in-house and third-party productions took
    place with established and new partners in 2023. The premiere broadcasts
    of "Guglhupfgeschwader" and "Contra" achieved a high market share.

  * Sales in the Film segment fell by 29.1 % to CHF 253.6 million in the
    year under review (previous year: CHF 357.4 million). Other segment
    income, which is largely influenced by capitalized film production
    costs, rose by 10.9 % to CHF 85.5 million (previous year: CHF 77.1
    million). At the same time, segment expenses declined by a total of 21.2
    % to CHF 330.5 million due to the significant reduction in amortization
    in particular (previous year: CHF 419.3 million). At CHF 8.7 million,
    segment earnings were down 42.5 % year-on-year (previous year: CHF 15.2
    million).

Sport and event segment

  * In the sports and event segment, TEAM Marketing AG had a very good start
    to sales in both the media and sponsorship areas and renewed several
    important partnerships in the early stages.

  * In the reporting year, Sport1 Medien AG focused on optimizing its
    portfolio of rights, improving and creating new digital content and
    marketing environments in addition to cross-platform content
    exploitation, networking and capitalization.

  * In the Highlight Event AG area, focus was set on the intensive support
    and realization of the sponsorship agreements with the main sponsors of
    the Vienna Philharmonic and the Eurovision Song Contest. Additionally,
    the agreement with the Vienna Philharmonic was extended until 2032 ahead
    of schedule.

  * At CHF 167.7 million, external sales in the Sports and Event segment
    were up 0.8 % on the previous year's level (CHF 166.4 million). Segment
    expenses declined from CHF 176.6 million to CHF 170.9 million, while
    other income fell from CHF 13.3 million to CHF 6.4 million. As a result,
    the segment result of CHF 3.9 million was slightly below the previous
    year's figure (CHF 5.6 million).

Targets for fiscal 2024

Due to the continuing uncertain market situation caused by the inflation
trend and the effects of the Ukraine crisis, the Board of Directors cannot
rule out an impact on the Highlight Group's operating activities.

As in the previous year, the Board of Directors is monitoring the current
situation in the current year and regularly reviews the measures taken. The
Highlight Group plans to return to stable and economically successful
business activities with great growth potential, including with a strong
cinema program in the Film segment such as "In the Lost Lands" and
"September 5" and the highly successful UEFA club competitions in the Sports
and Events segment. Due to the risks mentioned above, the Board of Directors
is unable to issue a forecast for the 2024 financial year.

There will be an adjustment to the Highlight Group's management in 2024.
Peter von Büren, long-standing CFO (Chief Financial Officer) of the
Highlight Group, will step down from the Management Board as of June 30,
2024 due to his age. However, he will stand for re-election as a
non-executive member of the Board of Directors of Highlight Communications
AG at the 2024 Annual General Meeting. As his successor, the Board of
Directors of Highlight Communications AG has appointed Hasan Dilsiz, the
former long-standing Director of Group Finance, as the new CFO and member of
the Management Board as of July 1, 2024.

The Annual General Meeting for fiscal 2023 is scheduled to take place on
June 27, 2024.

From today, the annual report for 2023 can be downloaded from
www.highlight-communications.ch in German and English.

    The Highlight Group at a glance
    Group figures (IFRS)

    CHF million                                  2023      2022  Change
                                                                   in %
    Sales                                       421.3     523.8   -19.6
    EBIT                                          6.9      14.6   -52.9
    Consolidated net profit                     -10.6      -2.5     n/a
    (after taxes)                               -10.6      -2.9     n/a
    Net profit attributable to shareholders     -0.19     -0.05     n/a
    Segment revenue
    Film                                        253.6     357.4   -29.0
    Sportund Event                              167.7     166.4     0.8
    Segment earnings
    Film                                          8.7      15.2   -42.5
    Sportund Event                                3.9       5.6   -30.1

    CHF million                              Dec. 31,  Dec. 31,  Change
                                                 2023      2022    in %
    Total assets                                598.8     634.3    -5.6
    Equity                                      160.4     186.0   -13.8
    Equity ratio (%)                             26.8      29.3    -2.5
                                                                 points
    Financial liabilities                       157.2     189.3    17.0
    Cash and cash equivalents                    25.5      29.9   -14.7
    For further information: Highlight
    Communications AG
    Investor Relations
    Netzibodenstrasse 23b
    CH-4133 Pratteln BL
    Tel: +41 (0)61 816 96 91
    E-mail: (1)ir@hlcom.ch  1.
    mailto:ir@hlcom.ch

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24.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        Highlight Communications AG
                   Netzibodenstrasse 23b
                   4133 Pratteln
                   Switzerland
   Phone:          +41 61 816 96 96
   Fax:            +41 61 816 67 67
   E-mail:         ir@hlcom.ch
   Internet:       www.hlcom.ch
   ISIN:           CH0006539198
   WKN:            920299
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1888363

End of News EQS News Service
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1888363 24.04.2024 CET/CEST