DGAP-News: Highlight Communications AG

DGAP-News: 3Q2016: Highlight Group with solid business development

DGAP-News: Highlight Communications AG / Key word(s): 9-month figures 3Q2016: Highlight Group with solid business development

15.11.2016 / 17:43 The issuer is solely responsible for the content of this announcement.

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3Q2016: Highlight Group with solid business development

- Consolidated sales rose by 20.5% to CHF 278.4 million

- Consolidated net profit of CHF 11.5 million at previous year's level

- Significant improvement of net liquidity by CHF 15.4 million

Overall, the Highlight Group's figures for the first nine months were in line with expectations.

Group development in the first nine months of 2016

- Consolidated sales were up by CHF 47.3 million year-on-year at CHF 278.4 million (previous year's period: CHF 231.1 million). Both the Film segment (+22.6 %) and the Sports- and Event-Marketing segment (+18.0 %) contributed to this increase in sales.

- The rise in the Film segment was due mainly to sales from "Shadowhunters" - the Constantin Film Group's first major international TV series production.

- The increase in the Sports- and Event-Marketing segment was due to the higher agency commissions that the TEAM Group generated as a result of the successful marketing of the UEFA club competitions (2015/16 to 2017/18 seasons).

- Consolidated operating expenses rose by CHF 66.8 million to CHF 336.9 million. This development is attributable firstly to considerably higher amortization of film assets and secondly to a rise in the cost of materials and licenses in connection with productions.

- As a result, EBIT of CHF 19.4 million was lower than in the previous year's period (CHF 23.0 million).

- Consolidated net profit for the period was virtually unchanged at CHF 11.5 million (previous year's period: CHF 11.6 million). The share of profit attributable to Highlight shareholders amounted to CHF 11.1 million, corresponding to earnings per share of CHF 0.26 CHF.

- Consolidated equity (including non-controlling interests) at CHF 96.7 million was down by CHF 7.1 million as against the end of 2015. This decline was due primarily to the purchase of treasury stock.

- Net liquidity posted a significant increase of CHF 15.4 million to CHF 17.5 million.

- The previous forecast for consolidated net profit attributable to shareholders of between CHF 18 million and CHF 20 million remains unchanged. Based on the operating business development to date and from today's perspective, the Highlight Group is now expecting to generate consolidated sales of between CHF 410 million and CHF 430 million in 2016 as a whole.

The quarterly statement as of September 30, 2016 will be available for download at www.highlight-communications.ch starting from today.



Highlight Group at a glance Group figures according to IFRS

in CHF million 3Q2016 3Q2015 Change in % Sales 278.4 231.1 20.5 EBIT 19.4 23.0 -15.7 Net profit for the period 11.5 11.6 -0.9 Net profit attributable 11.1 11.9 -6.7 to shareholders Earnings per share (in 0.26 0.27 -3.7 CHF) Segment sales Film 234.1 191.0 22.6 Sports- and Event- 44.1 37.3 18.2 Marketing Other Business Activities 0.2 2.8 -92.9 Segment result Film 1.3 11.4 -88.6 Sports- and Event- 19.2 16.4 17.1 Marketing Other Business Activities 2.7 -0.7 485.7

in CHF million Sep. 30, 2016 Dec. 31, 2015 Change in % Balance sheet total 376.8 458.0 -17.7 Equity 96.7 103.8 -6.8 Equity ratio (%) 25.7 22.7 3.0 points Current financial 89.7 104.3 -14.0 liabilities Cash and cash equivalents 107.2 106.4 0.8

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15.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

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Language: English Company: Highlight Communications AG Netzibodenstrasse 23b 4133 Pratteln Switzerland Phone: +41 61 816 96 96 Fax: +41 61 816 67 67 E-mail: ir@hlcom.ch Internet: www.hlcom.ch ISIN: CH0006539198 WKN: 920299 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News Service ---------------------------------------------------------------------------

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