Archive notice: This article was originally published on May 28, 2008. Links and embedded videos are preserved as part of the historical record.
In the first quarter of 2008, Constantin Film AG (ISIN DE0005800809) generated revenue of €67.2 million (Q1 2007: €76.8 million). Revenue was therefore 12 percent below the comparable prior-year period, mainly because of lower commissioned-production revenue. The in-house and co-production segment generated €52.7 million in revenue during the reporting period (previous year: €68.7 million), while third-party productions generated €14.6 million (previous year: €8.1 million).
Constantin Film AG’s theatrical-distribution revenue in the first quarter of 2008 totaled €12.2 million (March 31, 2007: €5.5 million), an increase of 120 percent year on year. In the in-house production segment, this was primarily attributable to the outstanding performance of THE WAVE, the strong run of ASTERIX AT THE OLYMPIC GAMES, and the sustained success of WHY MEN DON’T LISTEN AND WOMEN CAN’T READ MAPS. In third-party productions, STEP UP 2 THE STREETS and MICHAEL CLAYTON were particularly successful.
Home-entertainment exploitation proceeded according to plan and generated revenue of €15.1 million (previous year: €14.2 million). Major revenue contributors were in-house productions RESIDENT EVIL: EXTINCTION, KEIN BUND FÜRS LEBEN, and continuing sales of PERFUME: THE STORY OF A MURDERER, as well as third-party productions LISSI AND THE WILD EMPEROR and STEP UP.
The Constantin Group’s television revenue from licensing TV rights to broadcasters totaled €13.0 million (previous year: €7.8 million), an increase of 67 percent. Revenue from commissioned productions amounted to €25.6 million in the first quarter of 2008 as expected (previous year: €48.1 million). The 47-percent decrease was mainly attributable to the high Q1 2007 revenue from MOOVIE—the art of entertainment—which could not be repeated during the reporting period.
Constantin Film AG generated operating profit of €5.0 million in the reporting quarter (Q1 2007: €2.0 million), representing a year-on-year increase of 149 percent. Operating profit equaled 7.5 percent of revenue, meaning the Constantin Group’s operating margin improved significantly by almost 4.9 percentage points compared with March 31, 2007, despite the decline in revenue. This result was primarily attributable to television exploitation and the very strong theatrical-distribution result. Quarterly net income was €3.5 million (Q1 2007: €0.8 million). Earnings per share were €0.28, 366 percent above the prior-year figure (March 31, 2007: €0.06).
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As of March 31, 2008, total assets amounted to €329.4 million (December 31, 2007: €333.3 million). The equity ratio was 24 percent. After netting cash against bank liabilities and film assets against advance payments received, the adjusted equity ratio was 49 percent.
Cash and cash equivalents stood at €99.5 million as of March 31, 2008, while bank liabilities totaled €111.2 million. Net liquidity improved by €8.6 million compared with December 31, 2007.
The 2008 cinema year began promisingly for the industry as a whole and for Constantin Film. The summer months will, however, present a challenge because of the European Football Championship and the Olympic Games. By contrast, autumn and winter promise an exciting and eventful cinema season with a high concentration of interesting and commercially promising films. With its performance in the first three months and a promising release slate, Constantin Film’s theatrical-distribution operation is very well positioned for the financial year. Constantin Film’s diverse, high-quality release slate, its ambitious development and production work, the sustainable integration of all business units, and consistent implementation of its five-pillar strategy support steady, profitable business development. Constantin Film AG therefore continues to plan for revenue of at least €230 million and positive operating profit of at least €12 million in 2008.
The full first-quarter 2008 report will be available for download from May 28, 2008, on the company website at http://constantin-film.de and on the Deutsche Börse website at http://www.deutscheboerse.com.
