Constantin Suffers Difficult Year Revenue Drops

'Fack ju Goehte' was the most popular film in movie theaters in Germany last year

LONDON — Leading German media company Constantin Medien has reported that 2013 was a “difficult” year, despite releasing the year’s most-watched film in Germany, “Fack ju Goehte.”

Revenue stood at Euros 458.3 million ($630 million), 12% below the previous year, and profit from operations (EBIT) dropped to Euros 8.3 million ($11.4 million), compared with 2012’s Euros 21.6 million ($30 million). Earnings attributable to shareholders recorded a loss of Euros 10.7 million ($14.7 million), compared with 2012’s Euros 5 million ($6.87 million) profit. The net result (earnings after taxes) was a loss of Euros 6.1 million ($8.38 million), after a profit of Euros 12.5 million ($17.2 million) the year before.

In the film segment, the comedy “Fack ju Goehte,” which was released in cinemas at the beginning of November, attracted 5.6 million moviegoers by the end of 2013, catapulting it to become the most-watched film of the year in Germany. The Constantin Film production has now been viewed by more than 7 million moviegoers to become the third most successful German film based on box office receipts since German reunification.

Nevertheless, revenue from theatrical distribution was at the lower end of expectations in 2013, due to underperforming international licensed titles.

In contrast, revenue in the TV service production division was better than in the previous year.

In total, revenue in the film segment reached Euros 268.3 million ($369 million) or 8.5% behind the prior year. The lower revenue and higher-than-budgeted release costs led to a decline in segment result from Euros 8.8 million ($12.1 million) to Euros 4.7 million ($6.46 million).

The sports segment significantly advanced its multimedia strategy and carried out extensive investments in new products and platforms, license rights, programs and the branding of Sport1.

Highlights were the kick-off of the digital sports radio station SPORT1.fm and the pay TV channel Sport1 US, as well as the new corporate design of the umbrella brand Sport1.

The free-TV channel Sport1 raised its market share from 1.1% to 1.4% in the target group males aged 14 to 49 years. Pay TV channel Sport1+, and the online and mobile offers of Sport1 also grew market share.

Nonetheless, the increase in coverage and market share could not be monetized. The free-TV channel Sport1 still had agreements with the advertisers and media agencies that were based on the weaker coverage and market share rates of the year 2012. This, the lower-than-expected revenues from the advertising of sports betting, and the loss of the Bundesliga channel LIGA Total led to a decline in segment sales of 9% to Euros 147.4 million ($203 million) in 2013. Segment result amounted to a Euros 2.8 million ($3.85 million) loss, following a Euros 4.9 million ($6.73 million) profit the previous year.

In the sports and event marketing segment, besides the processing of the current season, the marketing company Team handled the marketing of the UEFA Champions League and the UEFA Europa League for the seasons 2015/2016 to 2017/18. At Euros 39.7 million ($54.6 million), segment sales were 31.1% behind the prior year. At Euros 14.2 million ($19.5 million), segment result remained slightly below the prior year’s figure, Euros 14.7 million ($20.2 million).

The other business activities segment, which includes the marketing of the Eurovision Song Contest and the Vienna Philharmonic Orchestra, as well as activities in the field of online/social gaming, generated sales of Euros 2.9 million ($3.98 million), against 2012’s Euros 7.9 million ($10.9 million). The segment loss, Euros 3.3 million ($4.53 million), was lower than expected. It compared with 2012’s loss of Euros 2.2 million ($3.02 million).

Bernhard Burgener, CEO of Constantin Medien, said: “2013 was a difficult year for Constantin Medien, in which our economic targets were not reached. Sales and earnings performance were below our expectations. However, we made major strategic progress, particularly in the sports segment, to profit from the opportunities in digitization in the coming years. Hence, all our energy is being directed in the sports business on a wide multimedia presence of the Sport1 brand. Furthermore, the growing fragmentation of programs in the digital age opens up new sales channels for our film segment that we want to use.”

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