EuropaCorp (ALECP) H1 24/25 earnings summary

Executive summary

• Revenue for H1 2024/2025 was €11.4M, down 15% year-over-year, mainly due to lower TV/SVOD sales in the US and timing of international deliveries for 'Weekend à Taipei'.

• Operational margin dropped to 6% (€0.7M) from 28% (€3.7M) due to lower revenue and higher amortization costs for new releases.

• Net result was a loss of €4.9M, compared to a profit of €0.08M in H1 2023/2024.

• Cash flow from operations improved to €12.4M, up from €8.2M year-over-year, mainly from catalog and film deliveries.

• Overheads reduced by €1.2M to €3.7M, a 25% decrease, mainly from lower rent after HQ relocation.

Financial highlights

• International sales rose by €0.6M to €6.0M, representing 53% of total revenue, driven by 'Weekend à Taipei' deliveries.

• TV/SVOD sales fell by €1.9M to €3.4M, mainly due to a large prior-year US sale.

• Operating expenses decreased by €1.2M, mainly from lower rent after HQ relocation.

• Net financial expense was €1.9M, including €2.1M in debt costs and a €0.9M FX loss.

• Investments in co-productions reached €15.4M, focused on 'Dracula' and 'Hell in Paradise'.

Outlook and guidance

• The group expects a full-year loss for FY 2024/2025 but maintains confidence in meeting debt obligations and safeguard plan deadlines.

• Several new productions are underway, including 'Dracula: A Love Tale', 'Hell in Paradise', and 'Disorder', with 'Dracula' shooting completed in November 2024.

• Additional co-development and co-production agreements have been signed, pending financing, with more projects in development.