Wanda Sports Group Company Limited | |||
Date: April 30, 2020
|
By:
|
/s/ Honghui Liao | |
Name: Honghui Liao | |||
Title: Chief Financial Officer | |||
● |
For the fourth quarter of 2019, total revenue was €255.5 million (US$286.8 million) and excluding the impact of reimbursement revenues1, 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.
|
● |
During the fourth quarter of 2019:
|
o |
We held the IRONMAN World Championship in Kailua-Kona, Hawaii, attracting 2,500 athletes from 75 countries.
|
o |
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.
|
● |
For the full year 2019:
|
o |
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.
|
o |
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.
|
● |
During the fourth quarter of 2019:
|
o |
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.
|
o |
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.
|
● |
For the full year 2019:
|
o |
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.
|
o |
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.
|
o |
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.
|
o |
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.
|
o |
Vienna Night Run and Business Run events added another 56,000 gross paid athletes.
|
● |
During the fourth quarter of 2019:
|
o |
We held the Cape to Cape in Perth, Australia, the country’s largest and longest running mountain bike multi-stage endurance race.
|
● |
For the full year 2019:
|
o |
We expanded our presence in European cycling through an exclusive commercial agreement with the Granfondo Campagnolo Roma for the organization of the event.
|
● |
During the fourth quarter of 2019:
|
o |
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.
|
● |
For the full year 2019:
|
o |
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.
|
o |
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.
|
o |
We acquired Germany-based Megamarsch, which offers 15 unique long-distance hiking events across the country with close to 30,000 gross paid athletes.
|
o |
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.
|
● |
During the fourth quarter of 2019:
|
o |
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.
|
o |
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.
|
● |
For the full year 2019:
|
o |
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.
|
o |
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.
|
o |
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.
|
o |
We acquired Youthstream, the owner of the exclusive television, marketing and global promotional rights for the FIM MXGP Motocross World Championship through 2036.
|
● |
During the fourth quarter of 2019:
|
o |
We reached a new five-year media rights agreement with the Scottish Professional Football League (SPFL) for its four leagues and two cup competitions.
|
o |
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.
|
● |
For the full year 2019:
|
o |
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.
|
o |
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.
|
o |
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.
|
o |
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.
|
● |
During the fourth quarter of 2019:
|
o |
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.
|
o |
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.
|
● |
For the full year 2019:
|
o |
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.
|
o |
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.
|
o |
We provided host broadcasting and production for the FIS Alpine & Nordic World Ski Championships.
|
● |
During the fourth quarter of 2019:
|
o |
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.
|
o |
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.
|
o |
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.
|
o |
We hosted the Chengdu and Beijing Rock ‘n’ Roll Marathon events, the Xi’an Bahe Half Marathon, the Nanning Marathon and the Zhuhai Marathon.
|
● |
For the full year 2019:
|
o |
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.
|
o |
In September, the IRONMAN 70.3 held its first event in Xi’an, China, providing athletes with new racing opportunities.
|
o |
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.
|
o |
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.
|
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
|
%)
|
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 |
%
|
-
|
|
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
|
%
|
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
|
%)
|
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
|
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 share2:
|
||||||||||||||||||||||||
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
|
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
|
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
|
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 |
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
|
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.
|
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