Wanda Sports Group Company Limited Reports Fourth Quarter and Full Year 2019 Unaudited Financial Results
Fourth Quarter and Full Year 2019 Financial and Operational Highlights:
- For the fourth quarter of 2019, total revenue was €255.5 million (
US$286.8 million ) and excluding the impact of reimbursement revenues[1], total revenue was €252.2 million (US$283.1 million ). For the full year 2019, total revenue was €1,030.1 million (US$1,156.5 million ) and excluding the impact of reimbursement revenues, total revenue was €996.6 million (US$1,118.9 million ), an increase of 10% year-over-year. The Company's revenue, and revenue excluding reimbursement revenues, for the fourth quarter of 2019 and the full year 2019 were within its guidance range. - For the fourth quarter of 2019 and for the full year 2019, the loss for the period was €258.6 million (
US$290.3 million ) and €273.8 million (US$307.4 million ), respectively, mainly attributable to a non-cash goodwill impairment loss of €254.3 million (US$285.5 million ) for impairment of goodwill atThe IRONMAN Group relating to itsNorth America andOceania cash-generating units. For fiscal 2019, the net loss was €273.8 million (US$307.4 million ). Excluding the non-cash expenses of goodwill impairment loss described above and the share-based compensation, there would have been a net profit of €6.0 million (US$6.7 million ) for full year 2019. - For the fourth quarter of 2019 and for the full year 2019, adjusted EBITDA was €44.8 million (
US$50.3 million ) and €167.4 million (US$187.9 million ), respectively. Both were within the Company's guidance range. - Our net leverage ratio was 4.1x as of
December 31, 2019 . - In our Mass Participation segment, for the fourth quarter of 2019, the number of gross-paid athletes was 330,000, a 22% increase from 270,000 in the fourth quarter of 2018, and we held 62 mass participation events, compared to 70 mass participation events in the fourth quarter of 2018. For the full year 2019, the number of gross-paid athletes was 1.524 million, a 15% increase from 2018 and we held 343 mass participation events, compared to 326 events in 2018. Our Mass Participation segment showed revenue growth of 16% in the fourth quarter of 2019 year-over-year and 15% for the full year 2019 compared to 2018, mainly attributable to the successful expansion of our event platform in
China and acquisitions of a number of new international events. - In our
Spectator Sports segment, we delivered approximately 3,700 event days in 2019. Some of our key events included the 2019FIBA Basketball World Cup, the 2019 FIFA Women's World Cup France™ and the IIHF Ice Hockey World Championship 2019. At the same time, we successfully prolonged major rights-in business engagements, such as with theInternational Ice Hockey Federation (IIHF), the Confédération Européenne de Volleyball (CEV) and theChampions Hockey League (CHL). - We have acquired a number of new businesses in 2019, such as the landmark deal with World Athletics granting us the right to organize in the future an annual
Diamond League meeting inChina and to bring new top-class track and field events to China. We also won the international media rights for theDiamond League for five years and new World Athletics Continental Tour events for ten years. Another exciting business win included a partnership with the NBA covering the sale of the NBA's sponsorship rights inItaly andFrance , which marks the NBA's first agreement with a sports marketing company to represent its inventory in these countries. We also signed a new six-year agreement with TheInternational Olympic Committee for the media rights to Sub-Saharan Africa for all Olympic events until 2024. - In our DPSS segment, we strengthened our digital capabilities through the launch of iX.co (rebranded from Infront Digital in
May 2019 ). Operating under its iX.co brand, the Group has a dedicated and experienced digital solutions team offering digital distribution and data analytics solutions to its partners. iX.co is leading the Group's efforts to build a leading digital media and solutions company that connects brands and sports rights holders to global fan audiences.
[1] See revenue discussion below for a description or reimbursement revenues and their impact. |
Mr. Hengming Yang, Chief Executive Officer of
All the achievements were based on the strength and dedication of our global team and we will continue to work diligently to build out our business, particularly to further capture growth in the Chinese market. However, the rapid spread of COVID-19 has significantly impacted, and is expected to continue to impact, our business as governments, businesses and communities continue to grapple with the toll of the pandemic and the widespread mitigation efforts. We currently are unable to predict the duration and severity of the spread of the coronavirus. Despite the current global uncertainty, however, we are confident in our long-term outlook."
Mr.
Fourth Quarter and Full Year 2019 Business Highlights
Core Business Segments
Mass Participation
The following highlights key activities in our Mass Participation segment. In the fourth quarter of 2019, we operated 62 events, compared to 70 events in the same period last year, a decrease of 11%. For the year 2019, we operated a total of 343 events, a 5% increase over 2018.
Triathlon
- During the fourth quarter of 2019:
- We held the IRONMAN World Championship in
- We also oversaw three inaugural triathlon events: the IRONMAN 70.3 in
- For the full year 2019:
- We held 15 inaugural IRONMAN and IRONMAN 70.3 triathlon events (including the three in the fourth quarter) in
- We hosted the Hamburg Wasser World Triathlon Series, one of the world's largest short distance triathlons, and held the first IRONMAN 70.3 World Championship in
Running
- During the fourth quarter of 2019:
- We held the 18th and inaugural night edition of the Standard Chartered Singapore Marathon with over 50,000 registered runners from 133 countries, of which 20,000 were first-time participants. In addition to the Saturday night Half Marathon and Marathon, the three-day event included a run for kids and 5K and 10K races.
- In Las Vegas, over 35,000 registered runners from 66 countries participated in the Rock 'n' Roll Marathon Series, which included distances from 5K, 10K, Half Marathon to a full Rock 'n' Roll Marathon. The partnership with Facebook Watch was also extended to this series. In the fourth quarter, we operated 11 Rock 'n' Roll events of various distances, making the events accessible to a wider range of participants.
- For the full year 2019:
- The Rock 'n' Roll Marathon Series continued to expand its global popularity by showcasing a variety of available distances, including 1-mile, 5K, 10K, Half Marathon and Marathon.
- The success of B2Run, the corporate running series, continued with over 230,000 participants (gross paid athletes) from around 11,000 companies at 27 events taking place in two countries. On top of that the series is licensed-out to 5 countries with 11 events and almost 18,000 participants.
- We made strategic acquisitions to bolster the Company's mass participation platform in attractive markets. This includes the addition of Nine's Events
- We expanded our presence in city marathons through an exclusive agreement to organize the Rome Marathon from 2020 to 2023. This includes management of the event as well as all marketing, commercial TV and media aspects.
-
Cycling
- During the fourth quarter of 2019:
- We held the Cape to Cape in
- For the full year 2019:
- We expanded our presence in European cycling through an exclusive commercial agreement with the Granfondo Campagnolo Roma for the organization of the event.
Other Mass Participation Sports Events
- During the fourth quarter of 2019:
- We invested in HYROX, a
- For the full year 2019:
- The Xletix and Muddy
- We completed the acquisition of
- We acquired
- We also made an investment in District Technologies, a
The following highlights the Group's position as the partner of choice for major sports rights holders, world-class brands and media organizations around the world.
Key events
- During the fourth quarter of 2019:
-
- November's
- For the full year 2019:
- We delivered nine global partner sponsors for the 2019
- We delivered the IIHF Ice Hockey World Championship to our full-service long term partner with what is estimated to be the broadest ever broadcast reach of a cumulative audience of over 1.6 billion which marked the fourth year in a row the tournament has surpassed one billion viewers. Over 470,000 fans attended games in
- We entered into a new partnership with the
- We acquired Youthstream, the owner of the exclusive television, marketing and global promotional rights for the FIM MXGP Motocross World Championship through 2036.
Major Prolongations and Key New Business Wins
- During the fourth quarter of 2019:
- We reached a new five-year media rights agreement with the
- We negotiated a 12-year expansion with the CEV that includes the media rights partnership for its flagship national team competitions and club tournaments, including the
- For the full year 2019:
- We established a long term strategic partnership with World Athletics (formerly IAAF), including a new
- We established a partnership with the NBA covering the sale of the NBA's sponsorship rights in
- We expanded our 10-year media, marketing, digital and merchandising rights agreement with the IIHF, which organizes the annual IIHF Ice Hockey World Championship. The new agreement will start in 2024 following the end of our current agreement. Separately, the Group received the right to produce and organize the IIHF's first eSports tournament at the 2021 competition in
- We entered into a media rights agreement with the
Digital, Production, Sports Solutions (DPSS)
We continued to develop our digital solutions platform to maximize the potential of our sporting events and marketing business across production, innovative content development and advertising.
- During the fourth quarter of 2019:
- Our state-of-the-art LED perimeter boards were successfully installed and operated at the FIFA Club World Cup 2019™ in
- We entered into a digital consultancy partnership with the
- For the full year 2019:
- We were the host broadcaster during the 2019 FIFA Women's World Cup France™ which took place across 11 cities in
- We continued to invest in new, innovative technologies to help increase fan engagement, event reach and broadcast standards. This includes delivering the first ever 8K HD production in rugby broadcast production during the Rugby World Cup in
- We provided host broadcasting and production for the FIS Alpine & Nordic World Ski Championships.
China Business Highlights
We continued to add premium mass participation and spectator sports events in
- During the fourth quarter of 2019:
-
- The 2019 Gree-Tour of
- We were one of the host broadcasters for the National Day Parade in
- We hosted the
- For the full year 2019:
- In May, the Chengdu Marathon of
- In September, the IRONMAN 70.3 held its first event in
- In September, the Group secured the operating rights for the Shenyang International Marathon, which hosted 20,000 athletes from 18 countries. The race's top 100 qualifiers will represent
- Summing up 2019, the Group has held and brought in a number of top-class world championship sporting events to
- The 2019 Gree-Tour of Guangxi;
-
- The 2019
- A long-term strategic partnership signed with World Athletics for the Group to organize an annual
Fourth Quarter 2019 Financial Results
Revenue
Total revenue was €255.5 million (
Mass Participation revenue was €92.6 million (
Spectator Sports revenue was €129.3 million (
DPSS revenue was €33.6 million (
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
Three Months Ended |
||||||
2019 |
2018 |
|||||
(in millions, except percentages) |
USD |
EUR |
% of |
EUR |
% of |
YoY Change |
Core segments: |
||||||
Mass Participation |
104.0 |
92.6 |
36% |
79.7 |
30% |
16% |
|
145.2 |
129.3 |
51% |
149.3 |
57% |
(13%) |
DPSS |
37.7 |
33.6 |
13% |
34.2 |
13% |
(2%) |
Total Revenue |
286.9 |
255.5 |
100% |
263.2 |
100% |
(3%) |
DPSS excluding reimbursement revenues |
33.9 |
30.3 |
31.9 |
(5%) |
||
Total Revenue excluding reimbursement |
283.1 |
252.2 |
260.9 |
(3%) |
Gross profit
Total gross profit was €94.4 million (
Mass Participation gross profit was €31.2 million (
Spectator Sports gross profit was €52.9 million (
DPSS gross profit was €10.3 million (
The following table sets forth a breakdown of our gross profit and our gross margin by segment for the periods indicated:
Three Months Ended, |
||||||
2019 |
2018 |
|||||
(in millions, except percentages) |
USD |
EUR |
Gross |
EUR |
Gross |
YoY |
Core segments: |
||||||
Mass Participation |
35.0 |
31.2 |
34% |
27.7 |
35% |
13% |
|
59.4 |
52.9 |
41% |
51.4 |
34% |
3% |
DPSS |
11.6 |
10.3 |
31% |
15.3 |
45% |
(33%) |
Total Gross Profit |
106.0 |
94.4 |
37% |
94.4 |
36% |
- |
Personnel expenses were €40.9 million (
Selling, office and administrative expenses were €23.2 million (
Depreciation and amortization expenses were €12.3 million (
Impairment of goodwill was €254.3 million (
Other operating income, net was €4.0 million (
Finance costs were €25.0 million (
Income tax expenses were €3.5 million (
Loss for the period was €258.6 million (
Adjusted EBITDA was €44.8 million (
Loss attributable to ordinary shareholders of
Basic and diluted loss per American Depositary Share ("ADS") were both €1.89 (
Full year 2019 Financial Results
Inter-year Cyclicality
A large number of our activities show a pattern of significant inter-year cyclicality, particularly in our
In our
In our DPSS segment, the most important contribution to inter-year cyclicality was the host broadcast production for the 2018 FIFA World Cup Russia™. Our agreements as host broadcaster for 2018 FIFA World Cup Russia™ were principally on a cost-plus basis giving rise to significant reimbursement revenues and reimbursement costs, but having a negligible impact on gross margins. These items can have a significant impact on the comparability of our results of operations above gross profit between 2018 and 2019.
Revenue
Total revenue was €1,030.1 million (
Mass Participation revenue was €326.9 million (
DPSS revenue, excluding reimbursement revenues, was €102.4 million (
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
Year Ended |
||||||
2019 |
2018 |
|||||
(in millions, except percentages) |
USD |
EUR |
% of |
EUR |
% of |
YoY Change |
Core segments: |
||||||
Mass Participation |
367.0 |
326.9 |
32% |
284.1 |
25% |
15% |
|
636.9 |
567.3 |
55% |
523.8 |
46% |
8% |
DPSS |
152.6 |
135.9 |
13% |
321.3 |
29% |
(58%) |
Total Revenue |
1,156.5 |
1,030.1 |
100% |
1,129.2 |
100% |
(9%) |
DPSS excluding reimbursement revenues |
115.0 |
102.4 |
102.1 |
0% |
||
Total Revenue excluding reimbursement |
1,118.9 |
996.6 |
910.0 |
10% |
Gross profit
Total gross profit was €343.7 million (
Mass Participation gross profit was €117.4 million (
DPSS gross profit was €41.5 million (
The following table sets forth a breakdown of our gross profit and our gross margin by segment for the periods indicated:
Year Ended, |
||||||
2019 |
2018 |
|||||
(in millions, except percentages) |
USD |
EUR |
Gross |
EUR |
Gross |
YoY |
Core segments: |
||||||
Mass Participation |
131.8 |
117.4 |
36% |
100.8 |
35% |
16% |
|
207.5 |
184.8 |
33% |
208.2 |
40% |
(11%) |
DPSS |
46.6 |
41.5 |
31% |
56.4 |
18% |
(26%) |
Total Gross Profit |
385.9 |
343.7 |
33% |
365.4 |
32% |
(6%) |
Personnel expenses were €163.6 million (
Selling, office and administrative expenses were €68.7 million (
Depreciation and amortization expenses were €36.3 million (
Impairment of goodwill was €254.3 million (
Other operating income, net was €2.4 million (
Finance costs were €80.0 million (
Income tax expenses in 2019 were €21.2 million (
Loss for the period was €273.8 million (
Adjusted EBITDA was €167.4 million (
Loss attributable to ordinary shareholders of
Basic and diluted loss per American Depositary Share ("ADS") were both €2.18 (
Cash and cash equivalents
As of
Indebtedness
As of
The following table sets forth a breakdown of interest-bearing liabilities at year-end.
|
||
(in millions) |
USD |
EUR |
|
199.8 |
178.0 |
|
480.5 |
428.0 |
|
269.1 |
239.7 |
Total |
949.4 |
845.7 |
COVID-19 and Operational Update
Following the global outbreak of the coronavirus, we adapted to the changing environment and transitioned our employees around the world to work remotely for their own safety and well-being. We also implemented strict cost management procedures, including a hiring freeze and elimination of discretionary spending, while ensuring we have the resources available to continue to support partners and promptly restart all of our activities once sporting events resume.
The COVID-19 pandemic began impacting
We are working closely with our partners, rights holders, sponsors and event organizers to assess the impact of COVID-19 on timing and the protocols for future events and to manage the financial impact across our value chain. In anticipation that sports events and games might proceed in the future without spectators, we are developing additional digital and broadcast solutions to offer to and prepare partners for the expected demand for new forms of live and digital sports consumption.
We are also partnering with leading sports organizations to provide innovative online racing and event experiences to keep our athlete communities connected and engaged. For instance, we recently hosted several virtual IRONMAN races and organized the Chengdu Shuangyi Online Marathon and Nanning Online Marathon. We are also working to virtualize part of the racing trail for the UCI world Tour of
Our active support of rights holders' efforts to develop eSports events has enabled us to benefit from rapid growth of the industry. For example, we are currently providing post-production services for La Liga's EA FIFA tournament, supporting the Lega Serie A's eSports tournaments and working with the IIHF to organize and promote a virtual world championship for ice hockey fans.
Financial Guidance
Due to the significant uncertainties relating to scope, duration and impact of COVID-19, we currently are unable to reasonably estimate what our 2020 financial performance will be and, accordingly, are not providing any updated guidance.
Conference Call Information
Wanda Sport's management will host an earnings conference call at
Participants can join the earnings conference call by completing online registration at: http://apac.directeventreg.com/registration/event/6793939. Upon registering, all participants will be provided with participant dial-in numbers, passcodes and unique registrant IDs to access the conference call.
Additionally, participants can join the call via a live webcast of the earnings conference call at: http://investor.wsg.cn/. An archived webcast will be available through the same link.
A telephonic replay will be available after the conclusion of the conference call, from
About
Headquartered in
Use of Non-IFRS Financial Measures
To supplement our consolidated financial statements which are presented in accordance with International Financial Reporting Standards as issued by the
Non-IFRS financial measures should not be considered in isolation or construed as an alternative to profit/(loss) from operations and net profit/(loss) or any other measure of performance, or as an indicator of our operating performance. Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
Reconciliation of Adjusted EBITDA and EBITDA, another non-IFRS financial measure, to the most directly comparable IFRS financial measure is set forth at the end of this release.
Exchange Rate Information
This press release contains translation of certain Euro ("€") amounts into
Change in the parent Company's functional currency
Prior to
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
|
||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS |
||||||||||
(Amounts in thousands of Euro ("€") or, for convenience translation, thousands of |
||||||||||
For the three months ended |
For the Year ended |
|||||||||
|
|
|
|
|||||||
$ |
€ |
€ |
$ |
€ |
€ |
|||||
Revenue |
286,835 |
255,484 |
263,224 |
1,156,484 |
1,030,080 |
1,129,186 |
||||
Cost of sales |
(180,884) |
(161,113) |
(168,842) |
(770,585) |
(686,360) |
(763,793) |
||||
Gross profit |
105,951 |
94,371 |
94,382 |
385,899 |
343,720 |
365,393 |
||||
Personnel expenses |
(45,974) |
(40,949) |
(36,667) |
(183,656) |
(163,582) |
(144,433) |
||||
Selling, office and administrative expenses |
(26,019) |
(23,175) |
(16,028) |
(77,105) |
(68,677) |
(52,043) |
||||
Depreciation and amortization |
(13,827) |
(12,316) |
(8,281) |
(40,749) |
(36,295) |
(32,846) |
||||
Impairment of goodwill |
(285,535) |
(254,326) |
- |
(285,535) |
(254,326) |
- |
||||
Other operating (expense)/income, net |
4,449 |
3,963 |
2,097 |
2,730 |
2,432 |
(26,801) |
||||
Finance costs |
(28,017) |
(24,955) |
(12,675) |
(89,819) |
(80,002) |
(53,711) |
||||
Finance income |
1,187 |
1,057 |
1,199 |
2,599 |
2,315 |
11,842 |
||||
Share of profit of associates and joint ventures |
1,411 |
1,257 |
1,903 |
1,979 |
1,763 |
5,566 |
||||
(Loss)/Profit before tax |
(286,374) |
(255,073) |
25,930 |
(283,657) |
(252,652) |
72,967 |
||||
Income tax expense |
(3,921) |
(3,493) |
(7,313) |
(23,784) |
(21,184) |
(18,955) |
||||
(Loss)/Profit for the period |
(290,295) |
(258,566) |
18,617 |
(307,441) |
(273,836) |
54,012 |
||||
Attributable to: |
||||||||||
Equity holders of the parent |
(290,745) |
(258,967) |
18,589 |
(309,470) |
(275,645) |
51,646 |
||||
Non‑controlling interests |
450 |
401 |
28 |
2,029 |
1,809 |
2,366 |
||||
(290,295) |
(258,566) |
18,617 |
(307,441) |
(273,836) |
54,012 |
|||||
Earnings per share[2]: |
||||||||||
Basic (loss)/profit for the period attributable to |
(1.42) |
(1.26) |
0.11 |
(1.63) |
(1.45) |
0.31 |
||||
Diluted (loss)/profit for the period attributable to |
(1.42) |
(1.26) |
0.11 |
(1.63) |
(1.45) |
0.30 |
||||
Basic (loss)/profit for the period attributable to ADS |
(2.13) |
(1.89) |
0.16 |
(2.45) |
(2.18) |
0.47 |
||||
Diluted (loss)/profit for the period attributable to |
(2.13) |
(1.89) |
0.16 |
(2.45) |
(2.18) |
0.45 |
||||
[2] Basic and diluted earnings per share and profit attributable to ADS holders of the parent for the three months ended |
|
||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
||||||||||
(Amounts in thousands of Euro ("€") or, for convenience translation, thousands of |
||||||||||
For the three months ended |
For the year ended |
|||||||||
|
|
|
|
|||||||
$ |
€ |
€ |
$ |
€ |
€ |
|||||
(Loss)/profit for the period |
(290,295) |
(258,566) |
18,617 |
(307,441) |
(273,836) |
54,012 |
||||
Other comprehensive income: |
||||||||||
Other comprehensive income/(loss) to be |
||||||||||
Net gain/(loss) on cash flow hedges |
2,031 |
1,809 |
950 |
2,180 |
1,942 |
5,092 |
||||
Exchange differences on translation of foreign |
(17,382) |
(15,482) |
4,422 |
2,642 |
2,353 |
(2,957) |
||||
Net other comprehensive income/(loss) income to |
(15,351) |
(13,673) |
5,372 |
4,822 |
4,295 |
2,135 |
||||
Other comprehensive income not to be reclassified |
||||||||||
Net remeasurement on defined benefit plans |
(2,309) |
(2,057) |
(760) |
(2,309) |
(2,057) |
(760) |
||||
Other comprehensive income/(loss) for the period, |
(17,660) |
(15,730) |
4,612 |
2,513 |
2,238 |
1,375 |
||||
Total comprehensive income for the period, net of |
(307,955) |
(274,296) |
23,229 |
(304,928) |
(271,598) |
55,387 |
||||
Attributable to: |
||||||||||
Equity holders of the parent |
(308,043) |
(274,374) |
23,052 |
(307,169) |
(273,595) |
52,682 |
||||
Non‑controlling interests |
88 |
78 |
177 |
2,241 |
1,997 |
2,705 |
||||
(307,955) |
(274,296) |
23,229 |
(304,928) |
(271,598) |
55,387 |
|
|||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL |
|||||
(Amounts in thousands of Euro ("€") or, for convenience translation, thousands of |
|||||
|
|
||||
$ |
€ |
€ |
|||
ASSETS |
|||||
CURRENT ASSETS |
|||||
Cash and cash equivalents |
183,255 |
163,225 |
177,048 |
||
Trade and other receivables |
296,442 |
264,041 |
299,898 |
||
Accrued income |
11,786 |
10,498 |
6,474 |
||
Contract assets |
60,111 |
53,541 |
39,714 |
||
Inventories |
10,548 |
9,395 |
5,935 |
||
Income tax receivables |
15,262 |
13,594 |
8,816 |
||
Other assets |
90,942 |
81,001 |
81,561 |
||
Assets held for sale |
9,122 |
8,125 |
- |
||
677,468 |
603,420 |
619,446 |
|||
NON‑CURRENT ASSETS |
|||||
Long‑term receivables |
7,643 |
6,808 |
6,271 |
||
Investments in associates and joint |
3,679 |
3,277 |
5,551 |
||
Property, plant and equipment |
29,521 |
26,294 |
26,048 |
||
Right of use assets |
39,574 |
35,249 |
35,789 |
||
Intangible assets |
546,686 |
486,933 |
423,488 |
||
|
603,553 |
537,585 |
677,326 |
||
Contract assets |
11,528 |
10,268 |
9,077 |
||
Deferred tax assets |
25,893 |
23,063 |
24,562 |
||
Other assets |
70,915 |
63,164 |
54,953 |
||
1,338,992 |
1,192,641 |
1,263,065 |
|||
TOTAL ASSETS |
2,016,460 |
1,796,061 |
1,882,511 |
|
||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL |
||||||
(Amounts in thousands of Euro ("€") or, for convenience translation, thousands of |
||||||
|
|
|||||
$ |
€ |
€ |
||||
LIABILITIES |
||||||
CURRENT LIABILITIES |
||||||
Trade and other payables |
195,189 |
173,855 |
816,451 |
|||
Interest‑bearing liabilities |
229,688 |
204,583 |
25,487 |
|||
Lease liabilities |
11,273 |
10,041 |
9,863 |
|||
Accrued expense |
78,417 |
69,846 |
83,516 |
|||
Deferred income |
6 |
5 |
7 |
|||
Contract liabilities |
224,430 |
199,900 |
185,681 |
|||
Liabilities held for sale |
7,831 |
6,975 |
- |
|||
Other liabilities |
21,565 |
19,208 |
17,097 |
|||
Income tax payable |
24,461 |
21,787 |
31,009 |
|||
Provisions |
10,367 |
9,234 |
3,419 |
|||
803,227 |
715,434 |
1,172,530 |
||||
NON‑CURRENT |
||||||
Interest‑bearing liabilities |
719,754 |
641,085 |
535,630 |
|||
Lease liabilities |
32,732 |
29,154 |
28,841 |
|||
Accrued expenses |
3,425 |
3,051 |
4,941 |
|||
Deferred income |
- |
- |
10 |
|||
Contract liabilities |
19,390 |
17,271 |
13,485 |
|||
Deferred tax liabilities |
111,375 |
99,202 |
82,941 |
|||
Provisions |
4,419 |
3,936 |
8,576 |
|||
Long‑term payroll payables |
17,218 |
15,336 |
12,770 |
|||
Other liabilities |
48,926 |
43,578 |
31,802 |
|||
957,239 |
852,613 |
718,996 |
||||
TOTAL LIABILITIES |
1,760,466 |
1,568,047 |
1,891,526 |
|||
EQUITY |
||||||
Share capital |
1,707,439 |
1,520,816 |
1,520,816 |
|||
Reserves |
(913,102) |
(813,300) |
(1,321,685) |
|||
Accumulated deficit |
(542,507) |
(483,211) |
(207,566) |
|||
Equity/(deficit) attributable to |
251,830 |
224,305 |
(8,435) |
|||
Non‑controlling interests |
4,164 |
3,709 |
(580) |
|||
TOTAL EQUITY/(DEFICIT) |
255,994 |
228,014 |
(9,015) |
|||
TOTAL LIABILITIES AND |
2,016,460 |
1,796,061 |
1,882,511 |
|
|||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||||||
(Amounts in thousands of Euro ("€") or, for convenience translation, thousands of |
|||||||||
For the three months ended |
For the year ended |
||||||||
|
|
|
|
||||||
$ |
€ |
€ |
$ |
€ |
€ |
||||
NET CASH FLOWS FROM (USED |
57,709 |
51,401 |
48,984 |
31,127 |
27,725 |
66,588 |
|||
NET CASH FLOWS FROM (USED |
(5,150) |
(4,587) |
(15,483) |
(153,348) |
(136,587) |
(57,120) |
|||
NET CASH FLOWS FROM (USED |
(5,438) |
(4,844) |
(1,607) |
104,539 |
93,113 |
(65,449) |
|||
NET INCREASE (DECREASE) IN |
47,121 |
41,970 |
31,894 |
(17,682) |
(15,749) |
(55,981) |
|||
Cash and cash equivalents at |
137,852 |
122,785 |
141,543 |
198,774 |
177,048 |
230,419 |
|||
Effect of foreign exchange rate |
(1,411) |
(1,257) |
3,611 |
2,470 |
2,199 |
2,610 |
|||
Transfer to assets held for sale |
(307) |
(273) |
- |
(307) |
(273) |
- |
|||
CASH AND CASH EQUIVALENTS |
183,255 |
163,225 |
177,048 |
183,255 |
163,225 |
177,048 |
|
||||||||||
RECONCILIATION OF NON-IFRS MEASURE – IFRS Profit for the Period and Year to Adjusted EBITDA (unaudited) |
||||||||||
(Amounts in thousands of Euro ("€") or, for convenience translation, thousands of |
||||||||||
For the three months ended |
For the year ended |
|||||||||
|
|
|
|
|||||||
$ |
€ |
€ |
$ |
€ |
€ |
|||||
(Loss)/profit for the period |
(290,295) |
(258,566) |
18,617 |
(307,441) |
(273,836) |
54,012 |
||||
Income tax expense |
3,921 |
3,493 |
7,313 |
23,784 |
21,184 |
18,955 |
||||
Net interest expenses |
21,550 |
19,195 |
5,729 |
76,112 |
67,793 |
24,587 |
||||
Depreciation and amortization |
13,827 |
12,316 |
8,281 |
40,749 |
36,295 |
32,846 |
||||
EBITDA |
(250,997) |
(223,562) |
39,940 |
(166,796) |
(148,564) |
130,400 |
||||
|
285,535 |
254,326 |
- |
285,535 |
254,326 |
- |
||||
Share-based compensation(2) |
(403) |
(359) |
(1,360) |
28,610 |
25,483 |
8,723 |
||||
Expenses or charges relating to acquisition(3) |
2,440 |
2,173 |
1,505 |
5,314 |
4,733 |
5,055 |
||||
Expenses or charges relating to IPO or financing(4) |
1,593 |
1,419 |
2,474 |
7,457 |
6,642 |
3,850 |
||||
Restructure and disposal of investments / subsidiaries(5) |
2,696 |
2,401 |
- |
3,120 |
2,779 |
- |
||||
Profit or loss from termination of customers(6) |
- |
- |
192 |
- |
- |
1,928 |
||||
Change in fair value of investments(7) |
(1,435) |
(1,278) |
375 |
(1,376) |
(1,226) |
445 |
||||
Bad debt expenses relating to specific customer(8) |
- |
- |
- |
- |
- |
27,122 |
||||
Losses on foreign exchange and derivatives, and other financial charges(9) |
5,280 |
4,703 |
5,747 |
11,108 |
9,894 |
17,282 |
||||
Estimated client compensation relating to fraudulent activities(10) |
4,650 |
4,142 |
- |
13,967 |
12,440 |
- |
||||
Expenses or charges relating to Sarbanes-Oxley compliance(11) |
186 |
166 |
- |
186 |
166 |
- |
||||
Remeasurement of contingent consideration (12) |
631 |
562 |
- |
631 |
562 |
- |
||||
Net (gain) / loss on disposal of assets (13) |
167 |
149 |
- |
168 |
149 |
- |
||||
Adjusted EBITDA |
50,343 |
44,842 |
48,873 |
187,924 |
167,384 |
194,805 |
||||
1. Represents one-time impairment charges of goodwill where the annual goodwill impairment test indicated that there were 2 out of 9 cash-generating units ("CGU") have value in use lower than their respective carrying amounts, including |
||||||||||
2. Share-based compensation has been excluded as it is a non-recurring expense. |
||||||||||
3. Represents expenses incurred for professional fees such as legal counsel, auditors, underwriters, valuation experts and consultants mainly in respect of strategic acquisitions in our mass participation sports business. |
||||||||||
4. Represents professional fees of legal counsel, auditors, due diligence experts, consultants, and related expenses for our IPO and financing. |
||||||||||
5. Represents expenses or costs incurred in the restructuring and disposal of investments and subsidiary companies. In 2019, the expenses or costs mainly represented business optimization and other reorganization expenses incurred in WEH and |
||||||||||
6. Eliminates the impact from the extraordinary loss of certain rights-in partners following their insolvency. |
||||||||||
7. Eliminates the net investment loss on investments. |
||||||||||
8. Eliminates expenses reflecting expected credit losses in trade account receivables that we had outstanding from a sports marketing and media rights firm (MP & Silva) as well as contract assets, as a result of the initiation of MP & Silva's insolvency process. |
||||||||||
9. Represents the losses on foreign exchange, derivative financial instruments at fair value through profit or loss, termination of the cross-currency swap and other financial charges. |
||||||||||
10. Represents the amount estimated to be paid by Infront as compensation in connection with fraudulent activities presumably undertaken by a former senior employee of Infront. |
||||||||||
11. Represents Sarbanes-Oxley Act consulting charges paid to third parties. |
||||||||||
12. Represents fair value change of contingent consideration from business combination. |
||||||||||
13. Represents net (gain)/loss on disposal of property, plant and equipment and intangible assets. |
View original content:http://www.prnewswire.com/news-releases/wanda-sports-group-company-limited-reports-fourth-quarter-and-full-year-2019-unaudited-financial-results-301050024.html
SOURCE
For investor and media inquiries, please contact: In China: Wanda Sports Group, Edith Kwan, Tel: +86 (10) 8558 7456, E-mail: ir@wsg.cn; In the U.S.: Sard Verbinnen & Co, Paul Scarpetta, E-mail: WandaSports-SVC@SARDVERB.com