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Euro Media Group

Beneficial interest 22.2%
AvH Contact: Tom Bamelis
www.euromediagroup.com

Euro Media Group (EMG) is an important player on the European market of audiovisual technical services. The group has a presence in seven countries: France, Belgium, the Netherlands, Germany, the United Kingdom, Switzerland and Italy.

Information from the 2016 annual report

EMG has a large capacity of mobile production facilities and studios, and provides a variety of specialized services, such as remote production solutions, radio frequency (RF) solutions, and slow motion and other specialized cameras. EMG also supplies second screen solutions through Netco Sports, which was acquired in September 2015.

2016 was a particularly busy year for EMG. This increase is to a large extent attributable to the international sporting events of 2016 (Euro 2016 and Summer Olympic Games in Brazil), where the group had a very strong presence. EMG also benefited from the full-year contribution of the acquisitions of 2015, namely Broadcast RF in the United Kingdom and Netco Sports in France.

2016 saw a significant improvement of the results in France, not only because of the international sporting events, but also due to the positive impact in 2016 of the restructuring of the studio activities that was carried out in 2015. This positive impact, however, was partly offset by the decision of a major customer of Euro Media in France to insource its studio activities from August 2016 onwards. EMG will continue to work on the rightsizing and profitability of its French operations.

The Netherlands, Italy and Germany reported a vigorous growth in 2016, with positive developments on the local market, despite stiff competition. Belgium continued to deliver a good financial result, in line with 2015. The Brexit decision of June 2016 had a significant impact on the exchange rate between pound sterling and the euro. The activities in the United Kingdom continued to meet expectations in local currency terms, thanks to a strong local market.

The net result remains negative in 2016 (-4.4 million euros), although 6.5 million euros is attributable to the recognition of interest charges on convertible bonds that EMG issued in 2014, and 7.4 million euros represents non-recurring costs (such as for restructuring). Excluding these non-recurring and non-cash costs, the group recorded a positive result in 2016.

EMG worked on external growth opportunities in several countries during 2016. As a result, it was able to finalize the acquisition of DB Video in Belgium in January 2017. DB Video will help EMG to further strengthen its position in the institutional and corporate market segment, while the group will also benefit from DB Video’s presence in the market of sporting and live events.

EMG expects its financial performance to improve further in 2017, adjusted for the impact of the international sporting events of 2016 and compared with 2015. EMG will implement its new group strategy in 2017, with greater emphasis on sporting and live events, further development of the integrated range of services, and maximization of the added value from non-sports and non-live activities.

16-3618-Euro Media Group _Tabel _UK

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