EuropaCorp (ALECP) H1 24/25 earnings summary

Executive summary

• First half marked by the release of Weekend in Taipei and the start of production on Dracula: A Love Tale and Hell in Paradise.

• Operating margin dropped to €0.7M (6% of sales) due to lower sales and underperformance of Weekend in Taipei.

• Overheads reduced by 25% to €3.7M, but net loss reached €4.9M for the period.

• Operating cash flow improved to €12.4M, up €4.2M year-over-year, mainly from catalog and film deliveries.

Financial highlights

• Revenue fell 15% year-over-year to €11.4M, mainly due to lower TV/SVOD sales in the US.

• Operating margin decreased to €0.7M (6% of sales) from €3.7M (28%) year-over-year.

• Net loss of €4.9M, compared to a slight profit of €0.1M in the prior year period.

• Net debt increased by €5.9M to €30.7M at September 30, 2024.

• Cash position at €35.6M, down from €46.3M at March 31, 2024.

Outlook and guidance

• Anticipates a full-year loss for FY 2024/2025 but expects to meet safeguard plan deadlines.

• Completed shooting of Dracula: A Love Tale in November 2024; other productions underway.

• Additional co-development and coproduction agreements signed, with more projects in development.