BEIJING, April 30, 2020
/PRNewswire/ -- Wanda Sports Group Company Limited (the "Company",
and together with its consolidated entities, "Wanda Sports," the "Group" or "we") (NASDAQ:
WSG), a leading global sports events, media and marketing platform,
today announced its unaudited financial results for the fourth
quarter and full year ended December 31, 2019.
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 at The IRONMAN Group relating to its
North America and Oceania
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
2019 FIBA 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 the International Ice Hockey Federation
(IIHF), the Confédération Européenne de Volleyball (CEV) and the
Champions 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 in China
and to bring new top-class track and field events to China.
We also won the international media rights for the Diamond 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 in
Italy and France, 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 The
International 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 Wanda Sports, commented, "Looking back at 2019,
we are pleased to have successfully completed the IPO of the Wanda
Sports Group in July. 2019 was a busy year with a set of solid
achievements, including the expansion of our Mass Participation
business portfolio, the extension of existing rights agreements
with long-term partners and our entry into new contracts, the
expansion of our position and footprint in China and our increased
digital capabilities through iX.co. With respect to 2020, we are
proud that we were able to refinance a 364-day term loan facility
with a new 364-day term loan facility and enter into a share
purchase agreement with Advance to sell The IRONMAN Group, which we
believe will unlock significant shareholder value.
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. Brian Liao, Chief Financial
Officer of Wanda Sports commented,
"We are pleased with the solid financial and operating performance
for the fourth quarter and fiscal year ended December 31, 2019, which enabled us to deliver
total revenue and adjusted EBITDA within our guidance range. One of
our priorities was to improve our capital structure. At the end of
2019, the net leverage ratio was 4.1x, which was a significant
improvement from 4.8x immediately following our IPO in July
2019. At the end of 2019, we maintained a strong liquidity
position with cash on hand of €163.2 million. In March 2020, we completed our 364-day term loan
refinancing to reduce our finance costs amidst the challenging
global environment created by COVID-19. Furthermore, we expect to
close the sale of The IRONMAN Group in the second quarter of 2020,
which will allow us to further optimize our capital structure and
strengthen our balance sheet to weather the impact of the global
pandemic on our business."
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 Kailua-Kona,
Hawaii, attracting 2,500 athletes from 75 countries.
- We also oversaw three inaugural triathlon events: the IRONMAN
70.3 in Goa, India (which was the
first IRONMAN Group event in India), the IRONMAN 70.3 in Marrakesh,
Morocco, and the IRONMAN 70.3 in
São Paulo, Brazil.
- We held 15 inaugural IRONMAN and
IRONMAN 70.3 triathlon events (including the three in the fourth
quarter) in Brazil, China,
France, Greece, India, Ireland, Italy, Korea, Morocco, Oman, Spain,
Thailand, and the United States.
- 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 Nice,
France, with a record number of over 5,000 athletes from 105
countries registered to compete in the two-day event.
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.
- 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 & Entertainment division in
Australia, which operates the Sun
Herald City2Surf presented by Westpac – one of the world's largest
fun runs.
- 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.
- Vienna Night Run and Business Run events added another 56,000
gross paid athletes.
Cycling
- During the fourth quarter of 2019:
- We held the Cape to Cape in
Perth, Australia, the country's
largest and longest running mountain bike multi-stage endurance
race.
- 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
Germany-based winter indoor
fitness competition for amateur and professional athletes,
providing an attractive event during a typically less competitive
part of the year.
- The Xletix and Muddy Angel Run
challenges welcomed participants to obstacle course races through
25 events across Europe in six
countries. Over 190,000 gross paid athletes participated in the
events.
- We completed the acquisition of London-based Threshold Sports, organizer of
unique events such as Ride Across Britain, Race to the
Stones, London Revolution, Race to the
King and Race to the Tower, which differentiates itself
through the development of unique events including the Ride Across
Britain – a nine-day, 1,500km cycling challenge – as well as
various trail running events, marks our first mass participation
presence in the United Kingdom
with 9,000 gross paid athletes.
- We acquired Germany-based
Megamarsch, which offers 15 unique long-distance hiking events
across the country with close to 30,000 gross paid athletes.
- We also made an investment in District Technologies, a
Singapore-based company that is
harnessing technology to redefine running and exploration. This
strategic partnership allows Infront and Wanda Sports Group to
operate as the exclusive partner of the app and the connected
District Races in Europe. So far
events have been held in Berlin
and Zurich, with Adidas secured as
a new sponsorship partner in Switzerland.
Spectator Sports
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. The Spectator Sports business
in the fourth quarter and for the full year 2019 reflected the
Group's delivery of a number of world championships and large-scale
regional events.
Key events
- During the fourth quarter of 2019:
- The HSBC Badminton World
Federation (BWF) World Tour Finals were held in Guangzhou, China. As the exclusive media
and marketing partner of the BWF through 2025, the Group once
again successfully provided global exposure for sponsors, reaching
fans all over the world.
- November's International Skiing Federation (FIS) Ski World Cup in
Levi, Finland marked the start of
the alpine skiing season. The Group was the exclusive media and
marketing partner, handling sponsorship packages, media rights,
production and archive solutions for the event.
- We delivered nine global partner
sponsors for the 2019 FIBA Basketball World Cup in China, providing
exposure to over 800,000 spectators on site and a global television
audience of over 3 billion. We successfully delivered the
commercial program of the 2019 FIBA Basketball World Cup, serving
as the exclusive partner for its worldwide sponsorship,
merchandising, licensing and hospitality.
- 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 Bratislava and Košice
with Finland's 3-1 victory over
Canada in the final attended by
almost 10,000 spectators.
- We entered into a new partnership with the English Premier
League, for free-to-air rights across sub-Saharan Africa for three
years commencing with the 2019/20 season.
- 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 Scottish Professional Football League
(SPFL) for its four leagues and two cup competitions.
- 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 CEV Champions
League, CEV Cup and CEV Challenge Cup and all CEV Snow Volleyball
events. We have a long-standing partnership with the CEV and
most recently secured broadcasters in over 150 territories globally
for this year's CEV Men's and Women's European Volleyball
Championships.
- We established a long term
strategic partnership with World Athletics (formerly IAAF),
including a new Diamond League media rights agreement for five
years from 2025, a ten-year international media rights agreement
for World Athletics Continental Tour, a series of the world's best
one-day meetings outside the Diamond League from 2020; the future
organization of an annual Diamond League meeting in China by the
Group as well as the creation of a new annual World Athletics event
in China to be organized by us.
- We established a partnership with the NBA covering the sale of
the NBA's sponsorship rights in Italy and France, which marks the NBA's first agreement
with a sports marketing company to represent its inventory in these
countries.
- 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
Finland.
- We entered into a media rights agreement with the International
Skating Union (ISU) through the 2022/23 season, making us the
commercial partner of all seven Olympic Winter Sports
Federations.
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 Qatar, opening up additional advertising
opportunities.
- We entered into a digital consultancy partnership with the French
Rugby League (LNR), launching a new English-speaking website
dedicated to the Top 14 league for the coverage of relevant key
markets worldwide. The agreement, which comprises a 360°
digital approach, also includes the launch of social accounts,
editorial management and content activation.
- We were the host broadcaster
during the 2019 FIFA Women's World Cup France™ which took place
across 11 cities in France
showcasing the world's top women's teams. The on-site host
broadcast has deployed more than 1,000 staff and six production
teams per match. A maximum of 29 cameras captured the action on the
pitches and delivered spectacular images. The Group's LED board
teams added another technical service providing stadium advertising
systems.
- 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 Japan along with the use of
augmented reality graphics and Hawk-Eye Smart Replay technology and
the successful testing of a 5G-connected-camera set-up at the BMW
Berlin-Marathon. The project marks the first time such a set-up has
been implemented in continental Europe, on a live, public 5G network.
- 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 China to our portfolio.
- During the fourth quarter of 2019:
- The HSBC Badminton World
Federation (BWF) World Tour Finals were held in Guangzhou, China. The Guangzhou station
was the highest-level competition of the world tour series and has
been held at Guangzhou since 2018.
We were the exclusive media and marketing partner and we also
provided hospitality services during the event.
- The 2019 Gree-Tour of Guangxi, a
six-day road cycling stage race was held in Guangxi. It was the third edition of the Tour
of Guangxi and the final event of
the 2019 UCI World Tour, attracting 126 athletes from 18 top-level
road cycling teams. We produced, managed and operated the event and
we also served as host broadcaster of this event.
- We were one of the host broadcasters for the National Day
Parade in Beijing on October 1 which celebrated the 70th
anniversary of the founding of the
People's Republic of China's. The event was the
largest of its kind ever held in China.
- We hosted the Chengdu and
Beijing Rock 'n' Roll Marathon events, the Xi'an Bahe Half
Marathon, the Nanning Marathon and the Zhuhai Marathon.
- In May, the Chengdu Marathon of
China was recognized as a candidate race for the Abbott World
Marathon Majors, becoming the first and only candidate race in
China for the world's largest and most renowned marathon series
which consists of the world's six premier marathons.
- In September, the IRONMAN 70.3 held its first event in
Xi'an, China, providing athletes
with new racing opportunities.
- 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 China in
the Abbott WMM Wanda Age Group World Championships, which will be
held as part of the London Marathon Majors.
- Summing up 2019, the Group has held and brought in a number of
top-class world championship sporting events to China:
- The 2019 Gree-Tour of
Guangxi;
- The HSBC Badminton World Federation (BWF) World Tour Finals;
- The 2019 FIBA Basketball World Cup, staged across eight cities
and was held in China for the first time; and
- A long-term strategic partnership signed with World Athletics for
the Group to organize an annual Diamond League, a series of the
world's best one-day meetings, and also to create a new annual
event in China. China is set to become one of the few countries to
host two events a year for world elite athletics. This marked
a historic collaboration and was an important addition to the
Group's top-class track and field event portfolio.
Fourth Quarter 2019 Financial Results
Revenue
Total revenue was €255.5 million (US$286.9 million) in the fourth quarter of 2019,
a decrease of 3% from the fourth quarter of 2018. Revenue,
excluding reimbursement revenues1, was €252.2 million
(US$283.1 million), compared to
€260.9 million in fourth quarter of 2018.
Mass Participation revenue was €92.6 million (US$104.0 million) in the fourth quarter of 2019,
a 16% increase compared with the fourth quarter of 2018,
principally driven by increase in the number of gross-paid
athletes, which increased to 330,000 from 270,000 in the same
period last year. The increase was mainly attributable to
continuing strong demand for participation in IRONMAN and IRONMAN
70.3 events, as well as business expansion from Wanda Sports China, including as a result of
marathons held in the fourth quarter of 2019.
Spectator Sports revenue was €129.3 million (US$145.2 million) in the fourth quarter of 2019,
a 13% decrease compared with the fourth quarter of 2018, primarily
due to the cyclicality effect of the EHF handball business, reduced
sponsorship sales and activation revenue from FIFA-related
projects, as well as the discontinuation of DFB national team
business. The decrease was partially offset by the
contribution from FIBA-related events following the occurrence of
the FIBA World Cup in the third quarter of 2019.
DPSS revenue was €33.6 million (US$37.7
million) in the fourth quarter of 2019, compared with €34.2
million in the same period in 2018. This decrease was primarily due
to decreased media production activities in our DPSS segment as a
result of the cyclicality effect of the 2018 FIFA World Cup
Russia™, which was partially offset by contributions from the Rugby
World Cup 2019 as well as growth in our digital business.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated:
|
Three Months Ended
December 31,
|
|
2019
|
2018
|
(in millions,
except percentages)
|
USD
|
EUR
|
% of
Revenue
|
EUR
|
% of
Revenue
|
YoY
Change
|
Core
segments:
|
|
|
|
|
|
|
Mass
Participation
|
104.0
|
92.6
|
36%
|
79.7
|
30%
|
16%
|
Spectator
Sports
|
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
revenues
|
283.1
|
252.2
|
|
260.9
|
|
(3%)
|
Gross profit
Total gross profit was €94.4 million (US$106.0 million) in the fourth quarter of 2019,
substantially similar to the same period in 2018. The gross margin
improved from 36% in the fourth quarter 2018 to 37% in the fourth
quarter 2019.
Mass Participation gross profit was €31.2 million (US$35.0 million) in the fourth quarter of 2019, a
13% increase compared with the fourth quarter of 2018, principally
driven by the increase in the number of gross-paid athletes, mainly
from continuing strong demand for participation in IRONMAN and
IRONMAN 70.3 events as well as business expansion from Wanda Sports China.
Spectator Sports gross profit was €52.9 million
(US$59.4 million) in the fourth
quarter of 2019, a 3% increase compared with the fourth quarter of
2018. The increase was primarily due to the higher profit
contribution from FIBA-related events following the occurrence of
the FIBA World Cup in the third quarter of 2019 in China and
organic growth of our football business, which partially offset the
cyclicality effect driven by the absence of the EHF European
Championships in 2019 and reduced contribution from FIFA-related
projects in 2019.
DPSS gross profit was €10.3 million (US$11.6 million) in the fourth quarter 2019,
compared with €15.3 million in the same period in 2018. This
decrease was primarily due to decreased media production and sports
solutions activities in our DPSS segment as a result of the
cyclicality effect of the 2018 FIFA World Cup Russia™, which was
partially offset by contributions from the Rugby World Cup
2019.
The following table sets forth a breakdown of our gross profit
and our gross margin by segment for the periods indicated:
|
Three Months
Ended, December 31,
|
|
2019
|
2018
|
(in millions,
except percentages)
|
USD
|
EUR
|
Gross
margin
|
EUR
|
Gross
margin
|
YoY
Change in
Gross
Profit
|
Core
segments:
|
|
|
|
|
|
|
Mass
Participation
|
35.0
|
31.2
|
34%
|
27.7
|
35%
|
13%
|
Spectator
Sports
|
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
(US$46.0 million) in the fourth
quarter of 2019, compared with €36.7 million in the fourth quarter
in 2018, primarily driven by the increased headcount from 1,624 as
of December 31, 2018 to 1,850 as of
December 31, 2019 due to business
expansion.
Selling, office and administrative expenses were
€23.2 million (US$26.0 million) in
the fourth quarter of 2019, compared with €16.0 million in the
fourth quarter in 2018, primarily driven by IPO-related costs,
higher third-party service fees as well as higher marketing
expenses.
Depreciation and amortization
expenses were €12.3 million (US$13.8 million) in the fourth quarter of 2019,
compared with €8.3 million in the fourth quarter in 2018. The
increase principally reflected additional amortization of purchase
price allocations relating to acquisitions in our Mass
Participation and Spectator Sports segments recorded in the year
end 2019.
Impairment of goodwill was €254.3 million
(US$285.5 million) in the fourth
quarter of 2019. The annual goodwill impairment analysis performed
as of December 31, 2019 indicated
that the value in use of two out of nine cash-generating units
("CGUs") (The IRONMAN Group's North
America and Oceania CGUs) was lower than their respective
carrying values.
Other operating income, net was €4.0 million
(US$4.4 million) in the fourth
quarter of 2019, compared with €2.1 million in the fourth quarter
of 2018.
Finance costs were €25.0 million (US$28.0 million) in the fourth quarter of 2019,
compared with €12.7 million in the fourth quarter in 2018,
primarily due to interest expense during the period for the 364-day
term loan facility (which was entered into in March 2019).
Income tax expenses were €3.5 million (US$3.9 million) in the fourth quarter of 2019,
compared with €7.3 million for the fourth quarter of 2018, mainly
due to deferred tax benefit in the year end 2019 as well as tax
optimization.
Loss for the period was €258.6 million (US$290.3 million) in the fourth quarter of 2019,
compared to a profit of €18.6 million for the fourth quarter of
2018, which was mainly attributable to non-cash impairment loss of
€254.3 million (US$285.5 million)
recorded at the end of 2019 related to goodwill in The IRONMAN
Group business, as well as additional finance costs relating to our
364-day term loan facility, the increase in selling, office and
administrative expenses as well as personnel expenses, partially
offset by tax savings.
Adjusted EBITDA was €44.8 million (US$50.3 million) in the fourth quarter of
2019, compared with €48.9 million in the fourth quarter of 2018,
principally resulted from an increase in selling, office and
administrative expenses resulting from our business expansion.
Loss attributable to ordinary shareholders of Wanda Sports
Group Company Limited was €259.0 million (US$290.7 million) in the fourth quarter of 2019,
compared to a profit attributable to ordinary shareholders of Wanda
Sports Group Company Limited of €18.6 million for the fourth
quarter of 2018.
Basic and diluted loss per American Depositary Share
("ADS") were both €1.89 (US$2.13)
in the fourth quarter of 2019, compared to basic and diluted profit
per ADS of both €0.16 in the fourth quarter of 2018.
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 Spectator Sports and
DPSS segments.
In our Spectator Sports segment, we experienced the effect of
inter-year cyclicality in major sports events between 2018 and
2019. For example, in 2018, there were the EHF European
Championships (which occur only in even years) and the FIFA World
Cup™ (which occurs only every four years). In 2019, there were the
FIS World Championships (which occur only in odd years), the FIBA
Basketball World Cup (which occurs only every four years) and the
CEV European Volleyball Championships (which occur only in odd
years). The revenue from such events tends to be most significant
in the year the event is taking place, which results in significant
fluctuations in our results of operations between years.
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 (US$1,156.5 million) in 2019, a decrease of 9%
compared with 2018. This decrease principally reflected a €185.7
million decrease in reimbursement revenues, largely attributable to
decreased media production activities in our DPSS segment as a
result of the cyclicality effect of the 2018 FIFA World Cup Russia™
having occurred in 2018 (and not in 2019). Revenue, excluding
reimbursement revenues, was €996.6 million (US$1,118.9 million), up 10% year-over-year.
Mass Participation revenue was €326.9 million (US$367.0 million) in 2019, a 15% increase
compared with 2018, principally driven by the increase in the
number of gross-paid athletes from 1,322,000 in 2018 to 1,524,000
in 2019 as well as the increase in total number of events from 326
in 2018 to 343 in 2019.
Spectator Sports revenue was €567.3 million (US$636.9 million) in 2019, an 8% increase
compared with 2018. The increase principally reflected the
inter-year cyclicality of events in our portfolio, as mentioned
above, as well as the contribution from the FIM MXGP Motocross
World Championships.
DPSS revenue, excluding reimbursement revenues, was €102.4
million (US$115.0 million) in 2019,
substantially similar to revenue, excluding reimbursement revenues,
in 2018.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated:
|
Year Ended
December 31,
|
|
2019
|
2018
|
(in millions,
except percentages)
|
USD
|
EUR
|
% of
Revenue
|
EUR
|
% of
Revenue
|
YoY
Change
|
Core
segments:
|
|
|
|
|
|
|
Mass
Participation
|
367.0
|
326.9
|
32%
|
284.1
|
25%
|
15%
|
Spectator
Sports
|
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
revenues
|
1,118.9
|
996.6
|
|
910.0
|
|
10%
|
Gross profit
Total gross profit was €343.7 million (US$385.9 million) in 2019, a 6% decrease compared
with 2018. The gross margin improved from 32% in 2018 to 33% in
2019.
Mass Participation gross profit was €117.4 million (US$131.8 million) in 2019, a 16% increase
compared with 2018, principally driven by the increase in the
number of gross-paid athletes and the increase in total number of
events.
Spectator Sports gross profit was €184.8 million (US$207.5 million) in 2019, an 11% decrease
compared with 2018. The main profit contribution in 2019 was from
the expansion of our summer sports portfolio as well as the FIS
World Championships 2019, which was offset by the absence of the
2018 FIFA World Cup Russia™ due to event cyclicality, as well as a
revenue deduction in connection with fraudulent activities
committed by a former employee of Infront.
DPSS gross profit was €41.5 million (US$46.6 million) in 2019, a 26% decrease compared
with 2018, primarily due to the cyclicality effect of the 2018 FIFA
World Cup Russia™.
The following table sets forth a breakdown of our gross profit
and our gross margin by segment for the periods indicated:
|
Year Ended,
December 31,
|
|
2019
|
2018
|
(in millions,
except percentages)
|
USD
|
EUR
|
Gross
margin
|
EUR
|
Gross
margin
|
YoY
Change in
Gross
Profit
|
Core
segments:
|
|
|
|
|
|
|
Mass
Participation
|
131.8
|
117.4
|
36%
|
100.8
|
35%
|
16%
|
Spectator
Sports
|
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
(US$183.7 million) in 2019, compared
with €144.4 million in 2018, largely attributable to the impact of
stock-based compensation expense due to option grants under our
Management Equity Incentive Plan. Also, the addition of new
personnel as a result of our general business expansion and
acquisitions in our Mass Participation and Spectator Sports
segments contributed to the increase for 2019 compared to 2018.
Selling, office and administrative expenses were
€68.7 million (US$77.1 million) in
2019, compared with €52.0 million in 2018, principally reflecting
IPO-related costs as well as higher third-party service
fees.
Depreciation and amortization
expenses were €36.3 million (US$40.7 million) in 2019, compared with €32.8
million in 2018. The increase principally reflected additional
amortization of purchase price allocations relating to the
acquisitions in our Mass Participation and Spectator Sports
segments.
Impairment of goodwill was €254.3
million (US$285.5 million) in 2019.
The annual goodwill impairment analysis performed as of
December 31, 2019 indicated that the
value in use of two out of nine CGUs (The IRONMAN Group's
North America and Oceania CGUs)
was lower than their respective carrying values.
Other operating income, net was €2.4 million
(US$2.7 million) in 2019, compared
with other operating expenses, net of €26.8 million in 2018. The
improvement was principally due to the absence of expected credit
losses of €25.0 million in trade accounts receivable that we had
outstanding in 2018 relating to services provided to MP &
Silva.
Finance costs were €80.0 million (US$89.8 million) in 2019, compared with €53.7
million in 2018, principally reflected interest expenses and the
make-whole amount due in connection with the 364-day term loan
facility entered into in March
2019.
Income tax expenses in 2019 were €21.2 million
(US$23.8 million), compared with
€19.0 million in 2018. The increase principally reflected a
valuation allowance for a deferred tax asset, partially offset by
current income tax savings due to lower pre-tax profit in 2019.
Loss for the period was €273.8 million (US$307.4 million) in 2019, compared to a profit
of €54.0 million in 2018, principally due to non-cash impairment
loss of €254.3 million for impairment of goodwill, as well as the
decreased gross profit in 2019 due to event cyclicality, the
increased stock-based compensation expense, the increased financing
costs and IPO-related costs. Excluding non-cash goodwill impairment
loss and stock-based compensation expenses, profit for the period
would have been €6.0 million.
Adjusted EBITDA was €167.4 million (US$187.9 million) in 2019, compared with
€194.8 million in 2018. The decrease was mainly due to event
cyclicality in connection with the 2018 FIFA World Cup
Russia™, as well as an increase in selling, office and
administrative expenses resulting from our business expansion.
Loss attributable to ordinary shareholders of Wanda Sports
Group Company Limited was €275.6 million (US$309.5 million) in 2019, compared to a profit
attributable to ordinary shareholders of Wanda Sports Group Company
Limited of €51.6 million in 2018.
Basic and diluted loss per American Depositary Share
("ADS") were both €2.18 (US$2.45)
in 2019, compared to basic profit per ADS of €0.47 and diluted
profit per ADS of €0.45 in 2018.
Cash and cash equivalents
As of December 31, 2019, our total
cash and cash equivalents was €163.2 million (US$183.3 million).
Indebtedness
As of December 31, 2019, our total
interest-bearing liabilities were €845.7 million (US$949.4 million).
The following table sets forth a breakdown of interest-bearing
liabilities at year-end.
|
December 31,
2019
|
(in
millions)
|
USD
|
EUR
|
Wanda Sports Group
Company Limited
|
199.8
|
178.0
|
Infront
Group
|
480.5
|
428.0
|
The IRONMAN
Group
|
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 Wanda Sports in China in January and
February 2020 as races and events
were postponed due to containment efforts in much of the country.
During this period, we continued to host races and sports events in
Europe and North America. As the pandemic spread around
the world, we cancelled or postponed mass participation sports
events also in other markets, while sports federations and
organizers postponed or cancelled more sports events and entire
seasons, beginning in March 2020. By
April 2020, substantially all of our
remaining sports events had been cancelled or postponed, and it is
currently unclear when these sport events will resume.
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
Guangxi.
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 8:30
AM U.S. Eastern Time on April 30,
2020 (8:30 PM Beijing/Hong
Kong Time on April 30, 2020).
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 11:30 a.m.
on April 30 until 10:00 a.m. U.S. Eastern Time on May 8, 2020 by dialing +61 2 8199 0299 and
entering passcode 6793939.
About Wanda Sports Group
Wanda Sports Group is a leading global sports events, media and
marketing platform with a mission to unite people in sports and
enable athletes and fans to live their passions and dreams. Through
our businesses, including Infront and, pending its sale, The
IRONMAN Group, we have significant intellectual property rights,
long-term relationships and broad execution capabilities, enabling
us to deliver unrivalled sports event experiences, creating access
to engaging content and building inclusive communities. We offer a
comprehensive array of events, marketing and media services through
three primary segments: Mass Participation, Spectator Sports and
Digital, Production, Sports Solutions (DPSS). Our full-service
platform creates value for our partners and clients as well as
other stakeholders in the sports ecosystem, from rights owners, to
brands and advertisers, and to fans and athletes.
Headquartered in China, Wanda Sports Group has more than 60
offices and 1,600 employees around the world. For more information,
please visit http://investor.wsg.cn/investor-relations.
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 International Accounting Standards Board
("IFRS"), we also use Adjusted EBITDA as a non-IFRS financial
measure. We present this non-IFRS financial measure because it is
used by our management in evaluating our operating results and for
financial and operational decision-making purposes. We define
Adjusted EBITDA as net income excluding share-based compensation
and other non-recurring expenses. We also believe that this
non-IFRS financial measure provides useful information to investors
and others in understanding and evaluating our consolidated results
of operations in the same manner as our management and in comparing
financial results across accounting periods and to those of our
peer companies.
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 U.S. Dollar ("$") at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Euro to U.S. dollar were made at the exchange rate of €0.8907
to US$1.00, the exchange rate on
December 31, 2019 set forth in the
H.10 statistical release of the Board of Governors of the Federal
Reserve System.
Change in the parent Company's functional
currency
Prior to July 31, 2019, the
functional currency of the Company (the Group's parent company) was
Euro. Effective as of July 31,
2019, the Company changed its functional currency from Euro
to the U.S. Dollar. Management believes the U.S. Dollar
better reflects the more relevant economic environment of the
Company, as it incurs and services its external debt mainly in U.S.
Dollars. Meanwhile, the Group's presentation currency for its
consolidated financial statements has been, and will remain, the
Euro.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include but are not limited to
management quotes and our financial outlook. These forward-looking
statements can be identified by terminology such as "will,"
"estimate," "project," "predict," "believe," "expect,"
"anticipate," "intend," "potential," "plan," "goal" and similar
statements. We may also make written or oral forward-looking
statements in our periodic reports to the U.S. Securities and
Exchange Commission ("SEC"), in our annual report to shareholders,
in press releases and other written materials and in oral
statements made by our officers, directors or employees to third
parties. Such statements involve certain risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements and,
consequently, could be affected by the uncertain and unprecedented
impact of COVID-19 on our business and operations and the related
impact on our liquidity needs. These forward-looking statements
include, but are not limited to, statements about: the impact of
the spread of COVID-19 and related mitigation efforts on our
business, operations and operating results; our goals and
strategies, including following the completion of the sale of the
IRONMAN Group; the expected growth in our industry; our
expectations regarding our ability to attract rights-in partners
and monetize their rights through rights-out arrangements; changes
in consumer behavior and consumer and corporate spending, including
as a result of the COVID-19 crisis; our ability to reach acceptable
levels of engagement with our athletes following the COVID-19
crisis; our future business development, results of operations
and financial condition; competition in our industry; general
economic and business conditions, including as a result of the
COVID-19 crisis; and assumptions underlying or related to any of
the foregoing as well as risks, uncertainties, and other factors
described in "Risk Factors" and elsewhere in our registration
statement on Form F-1, which is available on the SEC's website
at www.sec.gov. Additional information will be made available
in our annual report on Form 20-F for the year ended December
31, 2019 and other filings that we make from time to time with
the SEC.
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.
WANDA SPORTS GROUP
COMPANY LIMITED
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF PROFIT OR LOSS
|
(Amounts in
thousands of Euro ("€") or, for convenience
translation, thousands of U.S. Dollar ("$"), except for number of
shares and per share data)
|
|
|
For the three
months ended
|
|
For the Year
ended
|
|
December 31,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
$
|
€
|
|
€
|
|
$
|
€
|
|
€
|
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
ordinary equity holders of the parent
|
|
(1.42)
|
(1.26)
|
|
0.11
|
|
(1.63)
|
(1.45)
|
|
0.31
|
Diluted (loss)/profit
for the period attributable to
ordinary equity holders of the parent
|
|
(1.42)
|
(1.26)
|
|
0.11
|
|
(1.63)
|
(1.45)
|
|
0.30
|
Basic (loss)/profit
for the period attributable to ADS
holders of the parent
|
|
(2.13)
|
(1.89)
|
|
0.16
|
|
(2.45)
|
(2.18)
|
|
0.47
|
Diluted (loss)/profit
for the period attributable to
ADS holders of the parent
|
|
(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 December 31, 2019 and 2018 were computed in the
assumption that, the
Company had issued 23.8 million ADS, and the Company had
approximately 205 million ordinary shares issued and outstanding as
at December 31, 2019 and 2018.
|
WANDA SPORTS GROUP
COMPANY LIMITED
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
|
(Amounts in
thousands of Euro ("€") or, for convenience
translation, thousands of U.S. Dollar ("$"))
|
|
|
For the three
months ended
|
|
For the year
ended
|
|
December 31,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
$
|
€
|
|
€
|
|
$
|
€
|
|
€
|
(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
reclassified to profit or loss in subsequent
periods (net of tax):
|
|
|
|
|
|
|
|
|
|
|
Net gain/(loss) on
cash flow hedges
|
|
2,031
|
1,809
|
|
950
|
|
2,180
|
1,942
|
|
5,092
|
Exchange differences
on translation of foreign
operations
|
|
(17,382)
|
(15,482)
|
|
4,422
|
|
2,642
|
2,353
|
|
(2,957)
|
Net other
comprehensive income/(loss) income to
be reclassified to profit or loss in subsequent
periods
|
|
(15,351)
|
(13,673)
|
|
5,372
|
|
4,822
|
4,295
|
|
2,135
|
Other comprehensive
income not to be reclassified
to profit or loss in subsequent periods:
|
|
|
|
|
|
|
|
|
|
|
Net remeasurement on
defined benefit plans
|
|
(2,309)
|
(2,057)
|
|
(760)
|
|
(2,309)
|
(2,057)
|
|
(760)
|
Other comprehensive
income/(loss) for the period,
net of tax
|
|
(17,660)
|
(15,730)
|
|
4,612
|
|
2,513
|
2,238
|
|
1,375
|
Total comprehensive
income for the period, net of
tax
|
|
(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
|
WANDA SPORTS GROUP
COMPANY LIMITED
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL
POSITION
|
(Amounts in
thousands of Euro ("€") or, for convenience
translation, thousands of U.S. Dollar ("$"))
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
$
|
€
|
|
€
|
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
ventures
|
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
|
Goodwill
|
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
|
WANDA SPORTS GROUP
COMPANY LIMITED
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL
POSITION
|
(Amounts in
thousands of Euro ("€") or, for convenience
translation, thousands of U.S. Dollar ("$"))
|
|
|
December 31,
2019
|
December 31,
2018
|
|
$
|
€
|
€
|
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
LIABILITIES
|
|
|
|
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
equity holders of the parent
|
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
EQUITY
|
2,016,460
|
1,796,061
|
1,882,511
|
WANDA SPORTS GROUP
COMPANY LIMITED
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
|
(Amounts in
thousands of Euro ("€") or, for convenience
translation, thousands of U.S. Dollar ("$"))
|
|
|
For the three
months ended
|
|
For the
year ended
|
|
December 31,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
|
December 31,
2018
|
|
$
|
€
|
|
€
|
|
$
|
€
|
|
€
|
NET CASH FLOWS FROM
(USED
IN) OPERATING ACTIVITIES
|
57,709
|
51,401
|
|
48,984
|
|
31,127
|
27,725
|
|
66,588
|
NET CASH FLOWS FROM
(USED
IN) INVESTING ACTIVITIES
|
(5,150)
|
(4,587)
|
|
(15,483)
|
|
(153,348)
|
(136,587)
|
|
(57,120)
|
NET CASH FLOWS FROM
(USED
IN) FINANCING ACTIVITIES
|
(5,438)
|
(4,844)
|
|
(1,607)
|
|
104,539
|
93,113
|
|
(65,449)
|
NET INCREASE
(DECREASE) IN
CASH AND CASH
EQUIVALENTS
|
47,121
|
41,970
|
|
31,894
|
|
(17,682)
|
(15,749)
|
|
(55,981)
|
Cash and cash
equivalents at
beginning of the period
|
137,852
|
122,785
|
|
141,543
|
|
198,774
|
177,048
|
|
230,419
|
Effect of foreign
exchange rate
changes, net
|
(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
AT END OF PERIOD/YEAR
|
183,255
|
163,225
|
|
177,048
|
|
183,255
|
163,225
|
|
177,048
|
WANDA SPORTS GROUP
COMPANY LIMITED
|
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 U.S. Dollar ("$"))
|
|
|
For the three
months ended
|
|
For the year
ended
|
|
December 31,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
|
December 31,
2018
|
|
$
|
€
|
|
€
|
|
$
|
€
|
|
€
|
(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
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
(1)
|
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
the WEH North America CGU and WEH Oceania CGU.
|
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
Infront. While event and contract performance reviews are performed
as a normal course of business, these larger restructuring
processes are considered non-recurring.
|
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 Wanda Sports Group Company Limited