DGAP-News: Highlight Communications AG

• Consolidated sales of CHF 160.4 million, below the previous year's figure as expected
• EBIT at CHF 6.9 million also below the previous year's level
• Consolidated net profit for the period at CHF 4.4 million
• Consolidated equity rose by 70.1% to CHF 230.2 million
• Sales and earnings forecast confirmed for fiscal year 2017

The Highlight Group's figures for the first half of the year were in line with planning for the year as a whole.

Group development in the first half of 2017

• Compared to the very strong figure for the same period of the previous year, consolidated sales fell by 22.3% to CHF 160.4 million. The lower sales essentially result from the Film segment, which achieved extraordinarily good sales figures for the hit movies "Fack Ju Göhte 2" and "Look Who's Back" in home entertainment exploitation in the first half of 2016. As expected, the company was not able to repeat these results in the current fiscal year.
   
• Consolidated operating expenses declined by 7.8% to CHF 238.3 million. This development is primarily due to lower amortization and impairment losses on film assets. By contrast, the cost of materials and licenses climbed on account of productions.
   
• As expected, EBIT declined from CHF 13.9 million to CHF 6.9 million, because, according to planning, no major films were released in the first half of 2017 and no material TV licenses were invoiced in the second quarter. In addition, there had been a one-time accounting profit of CHF 2.6 million from the deconsolidation of Highlight Event and Entertainment AG and Pokermania GmbH in the first half of 2016.
   
• The consolidated net profit for the period was also down year-on-year at CHF 4.4 million (previous year's period: CHF 8.1 million). The share of earnings attributable to Highlight shareholders was CHF 4.0 million, corresponding to earnings per share of CHF 0.08.
   
• The significant increase in consolidated equity (including non-controlling interests) primarily results from the capital increase from authorized capital performed in the second quarter of 2017. 15,750,000 new shares were issued at a subscription price of EUR 5.20 per share.

In particular due to the strong theatrical slate in the second half of 2017 (including "Das Pubertier", "Ostwind - Aufbruch nach Ora", "Grießnockerlaffäre", "Fack Ju Göhte 3", and "Dieses bescheuerte Herz"), the Highlight Group continues to forecast consolidated sales of between CHF 360 million and CHF 380 million as well as a consolidated net profit attributable to shareholders of between CHF 18 million and CHF 20 million for 2017 as a whole.

On August 23, the Annual General Meeting of Constantin Medien AG elected Dr. Paul Graf as a member of the Supervisory Board, which subsequently elected him as its Chairman on the same day. To allow Dr. Graf to concentrate on his responsible new task, Dr. Graf and the Board of Directors of Highlight Communications AG have agreed that Dr. Graf will set aside his roles at Highlight Communications AG for the time being.

The interim report as of June 30, 2017 will be available for download at www.highlight-communications.ch starting from today.