SCP Standard Capital Partners (CAP) H2 2024 earnings summary

Executive summary

• 2024 marked a year of operational focus and strategic transformation, including a name change to PAL Next AG and a continued emphasis on combining creative excellence with technological innovation, particularly in AI-driven content production.

• The company completed several high-profile productions, including THE TIGER for Amazon Prime Video, and advanced AI-generated projects at Storybook Studios, such as SPACE VETS and PREVIOUSLY ON.

• Revenue declined temporarily due to the production cycle, with most income from completed projects expected to be realized in 2025.

• The Supervisory Board actively supported management, oversaw strategic realignment, and approved all major financial statements and actions.

Financial highlights

• Revenue for 2024 was EUR 4.16 million, down from EUR 35.38 million in 2023, reflecting a production-heavy year with delayed revenue recognition.

• EBIT improved to EUR -3.34 million from EUR -3.60 million in 2023, due to cost reductions following restructuring.

• Consolidated net loss for the year was EUR -3.39 million (2023: EUR -3.62 million).

• Cash flow from operating activities increased to EUR 11.95 million (2023: EUR 7.08 million), mainly due to higher advance payments received.

• Equity ratio declined to -1.1% (2023: 6.2%) as a result of increased liabilities from production activities and a consolidated equity of EUR -763 thousand.

Outlook and guidance

• Management expects a significant increase in revenue and earnings in 2025, with projected revenue of EUR 21–23 million and EBIT between EUR -300 thousand and EUR +200 thousand.

• The first commercially viable AI formats from Storybook Studios are expected to contribute meaningfully to group performance.

• Market conditions remain challenging, but digitalization and AI adoption are expected to drive growth in the entertainment sector.