FL Entertainment: 9M 2023 results
Press Release
Paris, 9 November 2023
First nine-month 2023
Results
SOLID TOP-LINE GROWTH & PROFITABILITY
IN 9M 2023
M&A ACTIVITY IN CONTENT PRODUCTION
& DISTRIBUTION
SUCCESSFUL REFINANCING OF BANIJAY DEBT -
MATURITY EXTENDED TO 2028-2029
9M 2023 FINANCIAL HIGHLIGHTS
- Revenue up
+7.5% at constant currencies to €2,866m in 9 months of
2023 (+5.6% reported) with +6.6% in Q3 2023 (+3.4% reported)
- Adjusted EBITDA1
up +8.1% at constant currencies to €473m (+6.9%
reported)
- Adjusted net
income1 up +5.6%
to €217m, net income at €21m (9M 2022: net loss of -€80m2)
- Adjusted free cash flow
conversion1 of 83%
- Strong liquidity position
of €419m and leverage ratio of 3.2x at
the end of September 2023 (end of December 2022: 3.1x)
- Successful Banijay debt
refinancing: ~85% of debt maturity extended until
2028-2029
9M 2023 BUSINESS HIGHLIGHTS
- Content
production & distribution
- Sustained demand from broadcasters
and streaming platforms
- Investment in Hyphenate Media
Group, led by Eva Longoria and Cris Abrego, to develop and produce
premium scripted and unscripted content in the Americas
- Expansion into live event
production with two strategic transactions – Balich Wonder Studio
and The Independents
- Online sports betting &
gaming
- Strong
performance across all segments
- Continued strong momentum in Unique
Active Players, with +34% increase versus 9M 2022
- International Safer Gambling
certification awarded by GamCare
- Enhanced products and user
experience with the launch of the new Betclic app
François Riahi, CEO of FL Entertainment,
said:
“We delivered solid results in the first nine
months of 2023, with top line growth and profitability reflecting
the strengths of our entertainment businesses.
In Content production & distribution, we saw
sustained demand from both linear broadcasters and streaming
platforms, where the strength of our iconic ‘superbrands’ and our
ability to produce successful formats in multiple countries is
driving repeat and recurring revenues, while also enriching our
content catalogue.
In October, we invested in Hyphenate Media Group
to support the production of premium, inclusive content for the
Americas and most recently acquired a majority stake in The Forge,
one of the UK’s most highly-regarded drama producers.
In Online sports betting & gaming, we
maintained strong, double-digit growth across all activities. Our
continued focus on growing and retaining Unique Active Players, was
supported by the successful launch of a highly rated new App that
enhances our product offer and user experience. Betclic has also
become the first player to achieve the GamCare Safer Gambling
certification outside the UK, demonstrating our total commitment to
responsible gaming.
Looking ahead, we are focused on growing our
leadership positions in the entertainment space to deliver
sustained profitable growth.”
*****
FL Entertainment invites you to its 9M 2023 results conference
call on:
Thursday, 9 November 2023, at 6:00pm
CET
Webcast live:You can watch the
presentation on the following
link:https://edge.media-server.com/mmc/p/pykjp2jt/
Dial-in access telephone
numbers:You need to register to the following
link:https://register.vevent.com/register/BI8924489f27a742b39975710dde0728b7
Slides related to 9M 2023 results are available
on the Group’s website, in the “Investor relations” section:
https://www.flentertainment.com/
KEY FINANCIALS IN 9M 2023
|
€m |
9M 2022 |
9M 2023 |
% change |
% constant currency |
| |
|
|
|
|
|
Revenue |
2 712.9 |
2 866.2 |
5.6% |
7.5% |
| Adjusted
EBITDA |
442.3 |
472.9 |
6.9% |
8.1% |
| Adjusted EBITDA
margin |
16.3% |
16.5% |
|
|
| |
|
|
|
|
| Net
income/(loss) for the period |
(79.5) |
20.9 |
|
|
| Adjusted net
income* |
205.7 |
217.1 |
5.6% |
|
| |
|
|
|
|
| Adjusted
free cash-flow |
368.9 |
391.8 |
6.2% |
|
| Free cash flow
conversion rate |
83.4% |
82.9% |
|
|
| |
|
|
|
|
|
For the twelve-month period ended |
31 Dec. 2022 |
30 Sept. 2023 |
|
|
|
|
|
|
|
|
| Net financial
debt (reported) |
2 090.8 |
2 384.3 |
|
|
|
Net financial debt / Adjusted EBITDA |
3.1x |
3.2x |
|
|
* Refer to the Appendix for definition
9M 2022 figures are adjusted to include proforma
holding costs of -€4.1m for comparison purposes
9M 2023 KEY EVENTS
Strategic M&A deals
FL Entertainment has a proven M&A strategy
with a focus on profitable, leading businesses in structurally
growing markets that offer opportunities for consolidation.
New Venture partnership: Hyphenate Media
Group
Banijay has acquired a minority stake in
Hyphenate Media Group, a new multi-platform media company led by
Eva Longoria, actress, producer, director, and founder of
production company UnbeliEVAble, and Cris Abrego, Chairman of
Banijay America Group. Banijay has the option to increase its
investment gradually over the coming years.
Hyphenate Media Group will produce content
through its own brand and grow through the acquisition of
independent creator-led studios. Self-produced scripted and
unscripted content will target linear broadcasters and streaming
platforms, with strong development opportunities in Americas.
Live Events
Content production & distribution has
expanded into live events with investments in two businesses that
offer multiple synergies with Banijay and support FL
Entertainment’s ambition to become an integrated global
entertainment leader.
Balich Wonder Studio
Banijay has acquired a 52% stake in Balich
Wonder Studio alongside its founder and has the option to
progressively increase its stake. The transaction closed in
September 2023.
Founded in 2013, Balich Wonder Studio is a
global live entertainment group that specializes in creating,
producing, and delivering live shows and experiences and has
executed the most Olympic opening and closing ceremonies. Balich
operates across three business units: Ceremonies, Exhibits &
Brand Experiences, and Immersive Shows & Destination
Experiences, and has a ten-year track record of impressive organic
growth along with sales of €315m in 2022.
The Independents
FL Entertainment has acquired a minority stake
in The Independents with the option to progressively become the
majority shareholder by 2026. The transaction closed in June
2023.
The Independents is a leading experiential
marketing and communications group for luxury brands. Founded in
2017 and with seven best-in-class agencies, the company works with
clients such as LVMH, Kering, L’Oréal, Richemont and Chanel. The
Independents generated sales of ~€353m in 2022 and shares a strong
corporate DNA with Banijay, with a decentralized organizational
structure well-suited to developing creative talent, an
entrepreneurial culture and experienced management.
Banijay debt: successful refinancing and
maturity extension until 2028-29
Banijay successfully refinanced around 85% of
its debt, extending its Term Loan B by three years to March 2028
and its Senior Secured Notes by four years until May 2029. In all,
Banijay has refinanced and raised a total amount close to
€2.0bn.
POST-PERIOD EVENTS
The Forge
In November, Banijay acquired a majority stake
in The Forge, a leading scripted production company in the UK.
Well-established through its award-winning drama productions such
as Marriage, Help and Becoming Elizabeth, The Forge will bolster
Banijay UK’s scripted output as the ninth owned UK label alongside
Kudos, Tiger Aspects and Wild Mercury. Building on its pool of
industry-leading talents, The Forge has a series of new titles in
production for both linear and SVOD platforms, including The
Buccaneers for Apple TV+ and Shardlake for Disney+.
GamCare certification
In November, Betclic became the first operator
to obtain the international standard for safer gambling by GamCare.
This international certification recognizes Betclic's daily
commitment to ensuring a responsible gaming experience for its
players, now consolidated under the Betclic Protect program.
GamCare is the leading independent UK provider
of free information, advice and support for anyone harmed by
gambling. The "Safer Gambling Standard" is GamCare's quality
standard for social responsibility for licensed gaming operators.
It aims to raise standards across the industry, making gambling
safer for everyone.
Q4 2023 OUTLOOK
Content production &
distributionIn line with expectations, Content production
& distribution will benefit from a high level of show
deliveries in Q4 2023 given the natural seasonality of the
business, as well as the acquisition of The Forge.
Balich Wonder Studio, which has a strong
presence in Saudi Arabia, Qatar and the UAE, has experienced the
postponement or cancellation of some of its live events as a
consequence of the ongoing conflict in the broader Middle East
region. The Group anticipates an impact of -€10m to -€15m on its
2023 Adjusted EBITDA guidance of ~€750m proforma acquisitions3 and
continues to monitor closely the situation.
Online sports betting &
gamingThe Group expects the positive momentum seen in the
year to date will continue in Q4 2023, driven by ongoing growth and
retention of Unique Active Players and the expected impact of the
new Betclic app, which offers an enriched user experience across
all products. While October saw adverse sports results, which
affected the wider Sportsbook sector, the impact has already
started to reverse and is expected to be fully offset by the end of
Q4 2023 or in Q1 2024 at the latest.
------------------
As previously communicated, FL Entertainment aims to expand its
free float and stock liquidity in the short to medium term. In this
respect, it continues to review its options and monitor capital
markets.
PROFIT & LOSS – 9M 2023
First 9M 2022 figures are adjusted to include proforma holding
costs of -€4.1m for comparison purposes.
|
In € million |
9M 2022 |
9M 2023 |
% change |
|
|
|
|
|
|
Revenue |
2 712.9 |
2 866.2 |
5.6% |
| External
expenses |
(1 312.7) |
(1 411.2) |
7.5% |
| Personnel
expenses excluding LTIP & employment-related earn-out &
option expenses |
(940.4) |
(965.8) |
2.7% |
| Other operating
income & expenses excl. restructuring costs & other
non-recurring items |
(15.7) |
(17.8) |
13.3% |
| Depreciation and
amortization expenses net of reversals related to fiction and other
operational provisions |
(1.7) |
1.5 |
|
|
Adjusted EBITDA |
442.3 |
472.9 |
6.9% |
| Adjusted EBITDA
margin |
16.3% |
16.5% |
|
| |
|
|
|
| Restructuring
costs and other non-recurring items |
(99.5) |
(19.6) |
|
| LTIP
expenses |
(87.5) |
(107.1) |
|
|
Employment-related earn-out and option expenses |
(17.2) |
(14.4) |
|
|
Depreciation and amortization (excl. D&A fiction) |
(88.2) |
(88.0) |
|
|
Operating profit/(loss) |
150.0 |
243.8 |
62.5% |
| |
|
|
|
| Cost of net
debt |
(106.4) |
(146.8) |
|
|
Other finance income/(costs) |
(81.1) |
(55.1) |
|
| Net
financial income/(expense) |
(187.5) |
(201.9) |
7.7% |
| Share of net
income from associates & joint ventures |
(1.7) |
(2.1) |
|
|
|
|
|
|
|
Earnings before provision for income taxes |
(39.2) |
39.8 |
|
|
|
|
|
|
| Income tax
expenses |
(40.3) |
(18.9) |
|
|
Profit/(loss) from continuing operations |
(79.5) |
20.9 |
|
|
Net income/(loss) for the period |
(79.5) |
20.9 |
|
|
Attributable to: |
|
|
|
| Non-controlling
interests |
3.9 |
6.8 |
75.3% |
|
Shareholders |
(83.4) |
14.1 |
|
|
|
|
|
|
|
Restructuring costs and other non-recurring items |
99.5 |
19.6 |
|
| LTIP and
employment-related earn-out and option expenses |
104.7 |
121.6 |
|
| Other finance
income/(costs) |
81.1 |
55.1 |
|
|
|
|
|
|
|
Adjusted net income |
205.7 |
217.1 |
5.6% |
CONSOLIDATED REVENUE IN 9M
2023
Over the first 9M 2023, Group’s revenue
increased by +7.5% at constant currencies to €2,866m.
This is reflected as follows by business:
|
€m |
9M 2022 |
9M 2023 |
% change |
% constant currency |
|
|
|
|
|
|
| Production |
1 744.2 |
1 770.4 |
1.5% |
4.1% |
|
Distribution |
267.2 |
277.5 |
3.9% |
5.3% |
| Other |
110.4 |
99.7 |
(9.7%) |
(8.7)% |
|
Content production & distribution |
2 121.8 |
2 147.7 |
1.2% |
3.5% |
|
|
|
|
|
|
| Sportsbook |
477.1 |
558.4 |
17.0% |
16.7% |
| Casino |
71.8 |
106.9 |
48.8% |
48.7% |
| Poker |
34.9 |
43.7 |
25.3% |
25.3% |
| Other |
7.2 |
9.5 |
32.2% |
32.2% |
|
Online sports betting & gaming |
591.0 |
718.5 |
21.6% |
21.3% |
|
|
|
|
|
|
|
TOTAL REVENUE |
2 712.9 |
2 866.2 |
5.6% |
7.5% |
In Q3 2023, FL Entertainment posted revenue of
€943m, +6.6% at constant currencies.
Content production &
distribution:
Revenue totaled €2,148m, up +3.5% at constant
currencies (+1.2% in absolute terms) in 9M 2023 compared to 9M
2022, fueled by an ongoing demand from both linear TV and streaming
platforms. In Q3 2023, revenue rose by +3.7% at constant currencies
and -0.6% in absolute terms.
Content production revenue increased by a firm
+4.1% at constant currencies over the first 9M 2023, reflecting the
delivery of new shows and renewed series.
Iconic ‘superbrands’ continued to perform well.
With 67 adaptations broadcasted across 72 countries, Big Brother
has once again proven its popularity, returning to UK after a
5-year hiatus and with the delivery of additional episodes for its
Italian format, Grande Fratello, produced by Endemol Shine Italy.
New productions and series of MasterChef have been delivered in
India, USA, Latam, Australia, Iberia and the Nordics.
In parallel, the period saw the delivery of new
productions and recommissions of non-scripted shows for both linear
broadcasters and OTT platforms such as Love Triangle in the UK for
E4, Blow Up in Australia for TV3, Survivor season 23 in France (Koh
Lanta) and Dating Naked for Paramount+ in Germany. In scripted
shows, the delivery of Sem Filtro, Happiness Paradox, Culpa Mia and
Mixed by Erry also contributed to revenue growth. In the production
of sports-related content, Banijay signed a joint venture with
LaLiga in June 2023.
Content distribution revenue increased by +5.3%
to €278m at constant currencies over 9M 2023, driven by continuous
demand from both linear TV and streaming platforms for key
non-scripted and scripted content.
The -12.0% decline in Q3 2023 distribution
revenues reflected the high number of show deliveries during the
same period last year.
The Group’s IP has been sold to multiple
territories including the Americas, the Nordics, Iberia, Italy and
France. As an example, MasterChef has been newly adapted in
French-Canada with a co-production with Pixcom, in collaboration
with Quebecor Content while Young MasterChef was commissioned for
season two on BBC Three. Popstars is returning to screens in France
on Amazon Prime video after a 20-year break.
Marie Antoinette has now been sold to over 70
territories, including in the US, the UK, Australia and several
broadcasters across Europe and Latin America. Recently, the series
has been acquired by Disney+ in Germany, while Canal+ has ordered a
second season, with filming already launched this autumn.
At the end of September 2023, the content
catalogue increased by a further +13% to ~180,000 hours (vs
December 2022).
Online sports betting &
gaming:
Revenue rose by a solid +21.3% at constant
currencies to €719m over 9M 2023 compared to 9M 2022, with +17.3%
in Q3 2023:
All segments contributed to this performance,
recording double-digit growth: at constant exchange rates,
sportsbook revenue rose by +16.7%, online casino by +48.7%, and
online poker by +25.3%. Sportsbook performance was particularly
solid given the comparison with a strong Q3 2022 where the UEFA
Champions League started earlier than usual due to the FIFA World
Cup at the end of 2022.
At current currencies and excluding Bet-at-home
operations discontinued in certain jurisdictions, revenue was up
+22% in 9M 2023, driven by the continued solid performance of
Betclic entity (+24%). Bet-at-home recorded a -14% decline in
revenue.
The company continued to record strong player
momentum with new Unique Active Players up by +34% (9M 2023 vs 9M
2022).
To support its growth strategy, Betclic launched
a new major version of its app in September designed to offer an
even simpler and more enjoyable user experience as well as a range
of new features.
The Group’s commitment to comply with
responsible standards is also well reflected in the nature of the
business (100% of business online) and the high proportion of
revenue generated in locally regulated markets. During the first 9M
2023, 98.6% of revenue were generated in locally-regulated markets
(96.5% over 9M 2022).
ADJUSTED EBITDA OVER THE FIRST 9M
2023
Adjusted
EBITDA4 amounted to €472.9m in 9M 2023,
up by +8.1% at constant currencies on 9M 2022 and +6.9% in absolute
terms. This represents 16.5% of Group revenue, reflecting a solid
level of profitability across all businesses.
|
Adjusted EBITDA - € million |
9M 2022 |
9M 2023 |
% change |
% constant currency |
|
|
|
|
|
|
| Content
production & distribution |
297.2 |
293.8 |
(1.2%) |
|
| Online sports
betting & gaming |
150.8 |
184.8 |
22.6% |
|
| Holding |
(5.6) |
(5.6) |
|
|
|
Adjusted EBITDA |
442.3 |
472.9 |
6.9% |
8.1% |
|
|
|
|
|
|
| Content
production & distribution |
14.0% |
13.7% |
|
|
| Online sports
betting & gaming |
25.5% |
25.7% |
|
|
|
Adjusted EBITDA margin |
16.3% |
16.5% |
|
|
At a Group level, external expenses rose by
+7.5% to €1,411.2m on the back of two elements that already
reported in H1 2023: the change in the allocation of free-lancers’
costs at Content production & distribution between personnel
costs and external expenses as well as higher betting taxes for
Online sports betting & gaming. Consequently, this also had an
impact on personnel expenses (excluding LTIP and employment-related
earn-out & option expenses) which grew by +2.7% to €965.8m.
FROM ADJUSTED EBITDA TO ADJUSTED NET
INCOME
Restructuring and other non-recurring
items: -€19.6m in 9M 2023 compared to -€99.5m in 9M
20225.
LTIP expenses totaled -€107m in
9M 2023 compared to -€87.5m in 9M 2022. LTIPs charges reflect the
accelerated phase of the vesting at the start of the incentive
plan. This is in line with Group’s trajectory to record on average
10% of Adjusted EBITDA as LTIPs expenses.
Employment-related earn-out and option
expenses: -€14.4m in 9M 2023 vs -€17.2m in 9M 2022.
Net financial result amounted
to -€201.9m in 9M 2023 compared to -€187.5m in 9M 2022. Of this
amount:
- Cost of net debt
totaled -€146.8m in 9M 2023 compared to -€106.4m for the first nine
months of 2022. The increase was mostly explained by the
cancellation of the old financing fees not fully amortized at the
time of the refinancing of Term Loans B and Senior Secured Notes
and redemption costs of the Senior Secured Notes at Content
production and distribution business.
- Other financial income and
expenses amounted to -€55.1m in 9M 2023 vs -€81.1m in 9M
2022, mainly explained by the change in fair value of the
Put/Earn-out debt, hedging instruments and currency impact.
Income tax expenses
The tax charge amounted to -€18.9m in 9M 2023
compared to -€40.3m in 9M 2022. Tax in 9M 2022 was particularly
high given higher taxable results due to the non-taxable listing
fees in 2022.
Adjusted net income rose by
+5.6% to €217.1m over the first 9M 2023.
FREE CASH FLOW AND NET FINANCIAL
DEBT
The Group’s Adjusted free cash flow (after lease
payments) reached €391.8m in 9M 2023, up +7.4% YoY, driven by the
business performance and disciplined cash expenses and capital
expenditures. The strong reduction in the change in working capital
requirement reflected a seasonality impact from production
deliveries at Content production & distribution.
Adjusted free cash flow conversion after capex
and leases payment amounted to 83%.
The rise in income taxes paid was mainly
attributable to advanced tax payment on higher 2022
performance.
Adjusted operating free cash flow stood at
€307.5m in 9M 2023.
|
€m |
9M 2022 |
9M 2023 |
% change |
| Adjusted
EBITDA |
442.3 |
472.9 |
6.9% |
| Capex |
(43.2) |
(48.1) |
|
| Disposals of
property, plant and equipment and intangible assets |
- |
0.3 |
|
|
Total cash outflows for leases that are not recognised as rental
expenses |
(34.4) |
(33.3) |
|
| Adjusted
Free-cash flow |
364.8 |
391.8 |
7.4% |
|
|
|
|
|
| Change in
working capital* |
(108.4) |
(14.4) |
|
|
Income tax paid |
(48.6) |
(69.9) |
|
| Adjusted
operating free cash flow |
207.7 |
307.5 |
48.1% |
*Excludes LTIP paid, exceptional items cash-out,
trade receivables on providers and players’ liabilities
The Group’s net financial debt totaled €2,384m
as of 30 September 2023 compared to €2,091m as of
31 December 2022. The increase in net
financial debt mainly reflected the seasonality of cash payments of
which the dividend payment for €148m, acquisitions and change in
financial assets for €198m, LTIP paid & exceptional items for
€58m, €147m interests recognized during the first 9M 2023 and €49m
of others.
As a result, the financial leverage ratio stood
at 3.2x as of 30 September 2023, compared to 3.1x at
31 December 2022.
Agenda: FY 2023 results: 7
March 2024
Investor Relations
Caroline Cohen – Phone: +33 1 44 95 23 34 –
c.cohen@flentertainment.com
Marion Heudes – Phone: +33 1 44 95 23 47 -
m.heudes@flentertainment.com
Press Relations
flentertainment@brunswickgroup.com
Hugues Boëton – Phone: +33 6 79 99 27 15
Nicolas Grange – Phone: +33 6 29 56 20 19
About FL Entertainment
FL Entertainment Group is a global entertainment
leader founded by Stéphane Courbit, a 30-year entrepreneur and
entertainment industry pioneer. Our mission is to inspire passion
by providing audiences with engaging and innovative entertainment
experiences. The Group’s activities include content production
& distribution (through Banijay, the world’s largest
independent producer distributor) and online sports betting &
gaming (through Betclic, Europe’s fastest-growing online sports
betting platform). In 2022, FL Entertainment recorded revenue and
Adjusted EBITDA of €4,047m and €670m respectively.FL Entertainment
is listed on Euronext Amsterdam (ISIN: NL0015000X07, Bloomberg: FLE
NA, Reuters: FLE.AS).
Forward-looking statementsThis
communication contains information that qualifies as inside
information within the meaning of Article 7(1) of the EU Market
Abuse Regulation.
Forward Looking StatementsSome
statements in this press release may be considered “forward-looking
statements”. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on
circumstances that may occur in the future. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that are outside of our control and impossible to predict
and may cause actual results to differ materially from any future
results expressed or implied. These forward-looking statements are
based on current expectations, estimates, forecasts, analyses and
projections about the industry in which we operate and management's
beliefs and assumptions about possible future events. You are
cautioned not to put undue reliance on these forward-looking
statements, which only express views as at the date of this press
release and are neither predictions nor guarantees of possible
future events or circumstances. We do not undertake any obligation
to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated
events, except as may be required under applicable securities
law.
Alternative performance
measuresThe financial information in this release includes
non-IFRS financial measures and ratios (e.g. non-IFRS metrics, such
as adjusted EBITDA) that are not recognized as measures of
financial performance or liquidity under IFRS. The non-IFRS
financial measures presented are measures used by management to
monitor the underlying performance of the business and operations
and, have therefore not been audited or reviewed. Furthermore, they
may not be indicative of the historical operating results, nor are
they meant to be predictive of future results. These non-IFRS
measures are presented because they are considered important
supplementary measurements of FL Entertainment N.V.'s (the
"Company") performance, and we believe that these and similar
measures are widely used in the industry in which the Company
operates as a way to evaluate a company’s operating performance and
liquidity. Not all companies calculate non-IFRS financial measures
in the same manner or on a consistent basis. As a result, these
measures and ratios may not be comparable to measures used by other
companies under the same or similar names.
Regulated information related to this
press release is available on the
website:https://www.flentertainment.com/results-center/https://www.flentertainment.com/
APPENDIX
Glossary
Adjusted EBITDA: for a period
is defined as the operating profit for that period excluding
restructuring costs and other non-core items, costs associated with
the long-term incentive plan within the Group (the "LTIP") and
employment related earn-out and option expenses, and depreciation
and amortization (excluding D&A fiction). D&A fiction are
costs related to the amortization of fiction production, which the
Group considers to be operating costs. As a result of the D&A
fiction, the depreciation and amortization line item in the Group's
combined statement of income deviates from the depreciation and
amortization costs in this line item.
Adjusted net income: defined as
net income (loss) adjusted for restructuring costs and other
non-core items, costs associated with the LTIP and employment
related earn-out and option expenses and other financial
income.
Adjusted free cash flow:
defined as Adjusted EBITDA adjusted for purchase and disposal of
property plant and equipment and of intangible assets and cash
outflows for leases that are not recognized as rental expenses.
Adjusted operating free cash
flow: defined as adjusted EBITDA adjusted for purchase and
disposal of property plant and equipment and of intangible assets,
cash outflows for leases that are not recognized as rental
expenses, change in working capital requirements, and income tax
paid.
Net financial debt: defined as
the sum of bonds, bank borrowings, bank overdrafts, vendor loans,
accrued interests on bonds and bank borrowings minus cash and cash
equivalents, trade receivables on providers, cash in trusts, plus
players liabilities and escrow accounts plus (or minus) the fair
value of net derivatives liabilities (or assets) for that period.
Net financial debt is pre-IFRS 16.
Leverage: Adjusted net
financial debt / Adjusted EBITDA.
Number of Unique Active
Players: average number of unique players playing at least
once a month in a defined period.
Table 1: Revenue breakdown by activity
|
€m |
Q3 2022 |
Q3 2023 |
% change |
% constant currency |
9M 2022 |
9M 2023 |
% change |
% constant currency |
|
|
|
|
|
|
|
|
|
|
| Production |
575.9 |
591.1 |
2.7% |
7.7% |
1 744.2 |
1 770.4 |
1.5% |
4.1% |
|
Distribution |
107.6 |
93.2 |
(13.4%) |
(12.0%) |
267.2 |
277.5 |
3.9% |
5.3% |
| Other |
34.1 |
29.3 |
(14.3%) |
(13.0)% |
110.4 |
99.7 |
(9.7%) |
(8.7%) |
|
Content production & distribution |
717.6 |
713.6 |
(0.6%) |
3.7% |
2 121.8 |
2 147.7 |
1.2% |
3.5% |
|
|
|
|
|
|
|
|
|
|
| Sportsbook |
154.9 |
169.2 |
9.2% |
8.6% |
477.1 |
558.4 |
17.0% |
16.7% |
| Casino |
25.3 |
41.6 |
64.1% |
63.8% |
71.8 |
106.9 |
48.8% |
48.7% |
| Poker |
11.7 |
15.1 |
28.7% |
28.7% |
34.9 |
43.7 |
25.3% |
25.3% |
| Other |
2.6 |
3.4 |
34.3% |
34.3% |
7.2 |
9.5 |
32.2% |
32.2% |
|
Online sports betting & gaming |
194.5 |
229.3 |
17.9% |
17.3% |
591.0 |
718.5 |
21.6% |
21.3% |
|
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUE |
912.1 |
942.9 |
3.4% |
6.6% |
2 712.9 |
2 866.2 |
5.6% |
7.5% |
Table 2: Adjusted operating free cash flow by
activity
|
Content production & distribution - €m |
9M 2022 |
9M 2023 |
% change |
|
|
|
|
|
| Adjusted
EBITDA |
297.2 |
293.8 |
(1.2%) |
| Adjusted EBITDA
margin (%) |
14.0% |
13.7% |
|
|
|
|
|
|
| Capex |
(36.8) |
(42.0) |
|
| Total cash
outflows for leases that are not recognised as rental expenses |
(31.8) |
(31.2) |
|
|
Adjusted Free-cash flow |
228.7 |
220.6 |
(3.6%) |
|
|
|
|
|
| Change in
WC(1) |
(103.8) |
(21.8) |
|
| Income tax
paid |
(27.8) |
(24.8) |
|
|
Adjusted Operating free cash flow |
97.0 |
174.1 |
79.5% |
|
Online Sports betting & gaming |
9M 2022 |
9M 2023 |
% change |
|
|
|
|
|
| Adjusted
EBITDA |
150.8 |
184.8 |
22.6% |
| Adjusted EBITDA
margin (%) |
25.5% |
25.7% |
|
|
|
|
|
|
| Capex |
(6.4) |
(5.8) |
|
| Total cash
outflows for leases that are not recognised as rental expenses |
(2.6) |
(2.2) |
|
|
Adjusted free-cash flow |
141.7 |
176.9 |
24.8% |
|
|
|
|
|
| Change in
WC(2) |
(10.3) |
9.7 |
|
| Income tax
paid |
(21.0) |
(45.1) |
|
|
Adjusted Operating free cash flow |
110.4 |
141.6 |
28.2% |
(1) Excluding LTIP payment and exceptional items for Content
production & distribution
(2) Excluding LTIP payment, exceptional items, trade receivables
on providers and players’ liabilities for Online sports betting
& gaming
Table 3: Consolidated statement of cash
flows
|
In € million |
30-Sep-22 |
30-Sep-23 |
|
Profit/(loss) |
(75.4) |
20.9 |
|
Adjustments: |
487.3 |
436.8 |
| Share of
profit/(loss) of associates and joint ventures |
1.7 |
2.1 |
| Amortization,
depreciation, impairment losses and provisions, net of
reversals |
91.3 |
89.8 |
| Employee
benefits LTIP & employment-related earn-out and option
expenses |
104.7 |
121.6 |
| Change in fair
value of financial instruments |
76.9 |
14.1 |
| Income tax
expenses |
40.3 |
18.9 |
| Other
adjustments (1) |
64.0 |
38.7 |
| Cost of
financial debt and current accounts |
108.3 |
151.6 |
|
Gross cash provided by operating activities |
411.9 |
457.7 |
| Changes in
working capital |
(205.5) |
(85.8) |
| Income tax
paid |
(48.6) |
(69.9) |
|
Net cash flows provided by operating
activities |
157.8 |
302.0 |
| Purchase of
property, plant and equipment and intangible assets |
(43.2) |
(48.1) |
| Purchases of
consolidated companies, net of acquired cash and other liabilities
related to business combination |
(27.7) |
(77.3) |
| Investing in
associates and Joint ventures |
(2.1) |
(18.4) |
| Increase in
financial assets |
(2.9) |
(97.7) |
| Disposals of
property, plant and equipment and intangible assets |
- |
0.3 |
| Proceeds from
sales of consolidated companies, after divested cash |
3.8 |
(0.0) |
| Decrease in
financial assets |
163.5 |
11.4 |
| Dividends
received |
0.3 |
0.2 |
|
Net cash provided by/(used for) investing
activities |
91.8 |
(229.6) |
| Change in
capital |
364.8 |
- |
| Change in other
securities |
114.4 |
- |
| Dividends
paid |
(0.2) |
(148.2) |
| Dividends paid
by consolidated companies to their non-controlling interests |
(3.6) |
(17.8) |
| Transactions
with non-controlling interests |
(400.5) |
(28.1) |
| Proceeds from
borrowings and other financial liabilities |
15.6 |
1 293.6 |
| Repayment of
borrowings and other financial liabilities |
(365.7) |
(1 038.7) |
| Net variation of
group current accounts |
(0.1) |
0.1 |
| Interest
paid |
(111.1) |
(165.1) |
|
Net cash flows from/(used in) financing
activities |
(386.4) |
(104.2) |
| Impact of
changes in foreign exchange rates |
36.7 |
(29.7) |
|
Net increase/(decrease) of cash and cash
equivalents |
(100.0) |
(61.5) |
|
|
|
|
| Net cash and
cash equivalents at the beginning of the period |
432.4 |
479.4 |
| Net cash and
cash equivalents at the end of the period |
332.4 |
418.1 |
(1) Other adjustments include notably unrealized foreign
exchange gains on disposal and liquidation of
subsidiariesTable 4: Consolidated balance
sheet
|
In € million |
31 December 2022 |
30 September 2023 |
|
ASSETS |
|
|
| Goodwill |
2 570.2 |
2 773.5 |
| Intangible
assets |
194.8 |
205.5 |
| Right-of-use
assets |
160.8 |
155.8 |
| Property, plant
and equipment |
59.2 |
66.1 |
| Investments in
associates and joint ventures |
14.0 |
31.4 |
| Non-current
financial assets |
161.7 |
217.6 |
| Other
non-current assets |
35.9 |
32.4 |
|
Deferred tax assets |
51.9 |
59.0 |
|
Non-current assets |
3 248.6 |
3 541.3 |
|
|
|
|
| Inventories and
work in progress |
705.2 |
947.9 |
| Trade
receivables |
496.5 |
614.0 |
| Other current
assets |
288.3 |
340.1 |
| Current
financial assets |
24.7 |
40.6 |
|
Cash and cash equivalents |
479.4 |
419.1 |
| Current
assets |
1 994.1 |
2 361.7 |
|
|
|
|
| TOTAL
ASSETS |
5 242.6 |
5 903.0 |
| EQUITY
AND LIABILITIES |
|
|
| Share
capital |
8.0 |
8.1 |
| Share
premiums |
91.7 |
(43.2) |
| Net
income/(loss) - attributable to shareholders |
(88.0) |
14.1 |
|
Shareholders' equity |
11.7 |
(21.1) |
| Non-controlling
interests |
6.3 |
19.3 |
|
Total equity |
18.0 |
(1.7) |
|
|
|
|
| Other
securities |
130.5 |
130.5 |
| Long-term
borrowings and other financial liabilities |
2 290.3 |
2 622.3 |
| Long-term lease
liabilities |
131.2 |
128.4 |
| Non-current
provisions |
27.7 |
36.8 |
| Other
non-current liabilities |
441.3 |
342.9 |
| Deferred tax
liabilities |
7.4 |
10.3 |
|
Non-current liabilities |
3 028.4 |
3 271.3 |
|
|
|
|
| Short-term
borrowings and bank overdrafts |
349.4 |
359.4 |
| Short-term lease
liabilities |
40.4 |
40.6 |
| Trade
payables |
663.6 |
621.9 |
| Current
provisions |
23.0 |
19.2 |
| Customer
contract liabilities |
693.3 |
1 024.7 |
| Other current
liabilities |
426.6 |
567.8 |
|
Current liabilities |
2 196.2 |
2 633.5 |
|
|
|
|
| TOTAL
EQUITY AND LIABILITIES |
5 242.6 |
5 903.0 |
Table 5: IFRS consolidated net financial
debt
|
In € million |
31 December 2022 |
30 September 2023 |
| Bonds |
1 330.8 |
1 300.5 |
| Bank borrowings
and other |
1 140.1 |
1 467.4 |
| Bank
overdrafts |
0.0 |
1.0 |
| Accrued
interests on bonds and bank borrowings |
29.6 |
13.9 |
| Vendor
loans |
138.4 |
198.9 |
|
Total bank indebtedness |
2 638.9 |
2 981.7 |
| Cash and cash
equivalents |
(479.4) |
(419.1) |
| Funding of
Gardenia |
- |
(78.3) |
| Trade
receivables on providers |
(13.1) |
(43.1) |
| Players'
liabilities |
50.6 |
51.8 |
| Cash in trusts
and restricted cash |
(31.6) |
(28.5) |
|
Net cash and cash equivalents |
(473.6) |
(517.2) |
|
|
|
|
|
Net debt before intercompany loan and derivatives
effects |
2 165.3 |
2 464.5 |
|
|
|
|
|
Net debt before derivatives effects |
2 165.3 |
2 464.5 |
| Derivatives -
liabilities |
0.0 |
- |
| Derivatives -
assets |
(74.5) |
(80.3) |
|
Net debt |
2 090.8 |
2 384.3 |
Table 6: Cash flow statement
|
|
30 September 2023 |
|
In € million |
Content production & distribution |
Online sports betting & gaming |
Holding |
Total Group |
|
Net cash flow from operating activities |
196.3 |
121.0 |
(15.3) |
302.0 |
|
Cash flow (used in)/from investing activities |
(140.0) |
(2.7) |
(86.9) |
(229.6) |
|
Cash flow (used in)/from financing activities |
(85.6) |
(112.6) |
94.0 |
(104.2) |
|
Other |
(29.7) |
- |
- |
(29.7) |
|
Net increase/(decrease) in cash and cash
equivalents |
(59.0) |
5.7 |
(8.2) |
(61.5) |
|
Cash and cash equivalents as of 1 January |
396.2 |
72.1 |
11.2 |
479.4 |
|
Cash and cash equivalents as of 30 September |
337.2 |
77.8 |
3.0 |
418.1 |
|
|
30 September 2022 |
|
In € million |
Content production & distribution |
Sports Betting & Online Gaming |
Holding |
Total Group |
|
Net cash flow from operating activities |
141.3 |
42.0 |
(25.5) |
157.8 |
|
Cash flow (used in)/from investing activities |
(65.0) |
(5.8) |
162.6 |
91.8 |
|
Cash flow (used in)/from financing activities |
(225.0) |
(38.1) |
(123.3) |
(386.4) |
|
Other |
36.7 |
- |
- |
36.7 |
|
Net increase/(decrease) in cash and cash
equivalents |
(111.9) |
(1.9) |
13.8 |
(100.0) |
|
Cash and cash equivalents as of 1 January |
342.4 |
87.9 |
2.2 |
432.4 |
|
Cash and cash equivalents as of 30 September |
230.5 |
86.0 |
15.9 |
332.4 |
Table 7: Content production & distribution: Net
financial debt as of 30 September 2023
|
At Banijay level: |
|
|
| In €
million |
31 Dec. 2022 |
30 Sept. 2023 |
|
|
|
|
| Total
Secured Debt (OM definition) |
1 847 |
2 009 |
| Other debt |
339 |
323 |
| SUN |
409 |
402 |
|
Total Debt |
2 595 |
2 734 |
| Net Cash |
(396) |
(337) |
|
Total net financial debt (excl. Earn-out &
PUT) |
2 199 |
2 397 |
| EO &
PUT |
124 |
150 |
|
Total net financial debt (incl earn-out &
PUT) |
2 323 |
2 547 |
|
|
|
|
| Ratios
at Banijay level: |
|
|
| Leverage Ratio,
as presented |
4.46 |
4.57 |
| Adjusted
Leverage Ratio, as presented |
4.71 |
4.85 |
| Senior secured
net leverage ratio |
3.20 |
3.50 |
|
|
|
|
| Cash
conversion rate - Banijay definition* |
75% |
72% |
|
Banijay contribution at FL Entertainment
level: |
|
|
| In €
million |
31 Dec. 2022 |
30 Sept. 2023 |
|
|
|
|
| Total
net financial debt (excl. Earn-out & PUT) |
2 199 |
2 397 |
| Transaction
costs amortization and other |
(74) |
(34) |
| Vendor loan |
- |
58 |
| Lease debt (IFRS
16) |
(160) |
(155) |
|
Total net financial debt at FL Entertainment
level |
1 965 |
2 265 |
|
|
|
|
| Derivatives |
(69) |
(76) |
|
Total net financial debt at FL Entertainment level after
derivatives |
1 896 |
2 189 |
Leverage ratio: total Net financial debt / (Adj
EBITDA + shareholder fees + proforma impact from acquisitions)
Adjusted leverage ratio: total Net financial
debt including earn-out and PUTS / (Adjusted EBITDA + shareholder
fees + proforma impact from acquisitions)
Senior secured net leverage ratio: total Senior
Secured Notes + earn-out – Cash / (Adjusted EBITDA + shareholder
fees + proforma impact from acquisitions)
* Based on free cash flow as defined as follows: Adjusted EBITDA
+ change in working capital – income tax paid – capex with LTIP
paid
1 Adjusted EBITDA, Adjusted net income and Adjusted free cash
flow conversion: figures in 9M 2022 are adjusted to include holding
costs of -€4.1m for comparison purposes2 Reported net income over
9M 20223 Proforma acquisitions as if they are consolidated on 1
January 2023
4 Figures in 9M 2022 are adjusted to take into account holding
costs of -€4.1m for comparison purposes5 Restructuring in 9M 2022
were related to listing and transaction fees and costs incurred to
realize the transaction
- FL Entertainment_PR_9M 2023 Results
Grafico Azioni FL Entertainment NV (EU:FLE)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni FL Entertainment NV (EU:FLE)
Storico
Da Mag 2023 a Mag 2024
