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Wanda Sports Group Company Limited Reports Second Quarter 2020 Results Nasdaq:WSG

Wanda Sports Group Company Limited Reports Second Quarter 2020 Results Nasdaq:WSG 2020-09-01Leave a comment

Wanda Sports activities Group Firm Restricted Stories Second Quarter 2020 Outcomes Nasdaq:WSG

BEIJING, Sept. 01, 2020 (GLOBE NEWSWIRE) — Wanda Sports activities Group Firm Restricted (the “Firm” and, along with its consolidated entities, “Wanda Sports activities Group,” the “Group” or “we”) (Nasdaq: WSG), a number one international sports activities occasions, media and advertising and marketing platform, at this time introduced its unaudited monetary outcomes for the second quarter ended June 30, 2020.

Because the sale of The IRONMAN Group was accomplished in July, The IRONMAN Group was handled for functions of the Group’s outcomes for the second quarter of 2020 as an asset held on the market and its historic outcomes have been mirrored in these outcomes as discontinued operations.  As well as, The IRONMAN Group’s outcomes and working information have been excluded from the comparative second quarter 2019 outcomes and working information.  Until in any other case indicated, the monetary assertion line gadgets and non-IFRS monetary measures are introduced on a unbroken operations foundation. 

Second Quarter 2020 Highlights: 

  • Whole income from persevering with operations for the second quarter of 2020 was €51.8 million (US$58.2 million), representing a lower of 75% year-over-year, primarily attributable to a lower in income from the Spectator Sports activities and DPSS segments as a result of broad results of COVID-19 mitigation efforts. Excluding reimbursement income,1 complete income was €51.4 million (US$57.8 million), a lower of 72% over the second quarter of 2019.
  • Internet Revenue for the interval from persevering with operations was €5.5 million (US$6.2 million), in comparison with €19.0 million within the second quarter of 2019.
  • Adjusted EBITDA from persevering with operations was €20.9m million (US$23.5 million), in comparison with €41.2 million within the second quarter of 2019.
  • The Group’s liquidity place remained stable within the second quarter of 2020. The Group had complete money and money equivalents of €167.5 million (US$188.3 million), as of June 30, 2019.
  • The German Ice Hockey Federation prolonged its unique media and advertising and marketing settlement with the Group till the 2023/2024 season. The Group expanded the scope of the renewed settlement and also will be liable for all German girls’s and males’s nationwide ice hockey workforce merchandise throughout all age teams.
  • The Group prolonged its unique worldwide media rights partnership with the Czech Republic Ski Federation from 2026 to 2031, and the Norway Ski Federation from 2021 to 2026, respectively, to cowl all FIS World Cup occasions together with males’s and girls’s alpine snowboarding, cross-country snowboarding, ski leaping and Nordic-combined. 
  • The Group just lately reached an settlement with cell community supplier Verizon for 4 separate offers to help new Verizon 5G expertise for multi-camera options for some bigger US sports activities associations (together with the NBA), shopper leisure (together with Fox’s “The Masked Singer”) and motor sports activities (NASCAR, IndyCar).
  • There have been no mass participation occasions mirrored within the persevering with operations within the second quarter of 2020 on account of occasion cancellations on account of the COVID-19 pandemic.  Regardless of that, the Group used new, revolutionary codecs and hosted a number of mass participation occasions just about in Europe and China.

_______________
1 Reimbursement revenues characterize income that has related prices of an analogous, usually matching, quantity (reimbursement prices), thereby leading to a negligible gross margin influence.

Mr. Hengming Yang, Chief Government Officer of Wanda Sports activities Group, commented, “As anticipated, the complete second quarter was affected by the worldwide unfold of the pandemic and the associated extreme influence on enterprise exercise, journey and private routines.  Nonetheless, given the variety of our enterprise mannequin with long-term contracts, and our workers’ capability to adapt to uncertainties and new norms of working, we have been capable of proceed to concentrate on enterprise improvement, delivering different sports activities service options, whereas successfully managing our prices and liquidity.  Regardless of our income of €51.8 million within the second quarter being a lot decrease than the earlier yr, our gross margin was considerably enhanced.  Wanting ahead, though visibility remains to be unclear by way of public well being and macroeconomic circumstances, we stay optimistic about our partnerships with purchasers and our enterprise alternatives.  We’re assured within the capability of our international workforce to persevere and navigate the challenges forward. We’ll stay vigilant in managing our operations and in investing in our future, in order that we will be well-positioned to return to income and revenue development as soon as the markets get better.”

Mr. Brian Liao, Chief Monetary Officer of Wanda Sports activities Group commented, “Regardless of the anticipated contraction in our income and profitability, our personnel bills and promoting, workplace and administrative bills within the second quarter of 2020 decreased by roughly 28% year-over-year, primarily pushed by our value discount efforts from the beginning of the pandemic.  A number of value classes will proceed to lower all year long as we proceed to reply to the disaster, reminiscent of personnel prices, workplace and journey bills, and advertising and marketing bills.  As well as, regrettably we needed to scale back the variety of workers by 13% because the first quarter 2020, however will proceed to spend money on core capabilities.  We’ll proceed to additional streamline our operations as a way to protect money and defend our profitability. By way of liquidity, after the IRONMAN transaction, as of July 31, 2020, we’ve a €208.7 million money steadiness.  We intend to make use of the steadiness of the web proceeds of the IRONMAN transaction, topic to enterprise circumstances, to return capital to its shareholders (both via a particular dividend or a share repurchase program; in both case, topic to shareholder approval), and/or for basic company functions.  In the meantime, we’re intensely targeted on positioning our firm optimally to return to income development as we climate the unprecedented uncertainty of the COVID-19 disaster.”

Second Quarter 2020 Enterprise Highlights

Core Enterprise Segments:

Spectator Sports activities
Within the second quarter, the Spectator Sports activities enterprise leveraged its digital ecosystem innovation and assets by efficiently delivering plenty of digital occasions.  These digital occasions attracted a variety of protection, whereas increasing new enterprise wins, regardless of the uncertainty of the working atmosphere. 

Key occasions

  • The Group, because the International Ice Hockey Federation’s (or IIHF) long-standing unique media and advertising and marketing rights accomplice, launched the IIHF Esports Fan Championship on Might 15. Followers from the 16 nations which had certified for the 2020 IIHF Ice Hockey World Championship got the prospect to characterize their nations within the digital event, which was hosted on a brand new IIHF esports on-line platform. 
  • The Group acted because the promoter, producer and organizer of another on-line esports event for the Italian soccer league’s eSerie A TIM golf equipment after the suspension of the event as a result of pandemic.  Followers have been capable of watch unique reside content material on eSerie A TIM’s YouTube channel
  • The Coppa Italia Coca Cola closing, Italy’s high soccer knock-out event, celebrated a broadcast attain of over 10 million viewers with the match distributed to nearly 220 territories globally. Digital overlay expertise supplied by the Group lined the empty stands which have been adorned with the golf equipment’ colours, the competitors emblem and the Italian flag.
  • The Group collectively supported the launch of the primary digital pro-cycling race collection – the Digital Swiss 5, which noticed skilled cyclists competing throughout 5 digital races as a substitute for the cancelled Tour de Suisse. The occasion achieved sturdy protection on main public broadcast networks throughout nearly 30 nations.
  • The Group launched a brand new digital ecosystem for the European Handball Federation (EHF), which is designed to amplify the outreach and consciousness of handball throughout all platforms of TV, OTT, digital and social media.  All the digitally-optimized, high-quality content material is created by specialists from the Group and its companions via greater than 5,000 items of video content material for all main EHF competitions, as a way to join, work together and entertain followers globally.

Main Prolongations

  • The Group efficiently organized for the renewal of a industrial settlement between Nike and Prime 14 rugby membership Stade Toulousain. The sports activities attire firm will proceed its function because the French membership’s official provider till the top of the 2025 season.
  • The German Ice Hockey Federation prolonged its unique media and advertising and marketing settlement with the Group till the 2023/2024 season. The Group expanded the scope of the renewed settlement and also will be liable for all German girls’s and males’s nationwide ice hockey workforce merchandise throughout all age teams.
  • The Group prolonged its unique worldwide media rights partnership with the Czech Republic Ski Federation from 2026 to 2031, and the Norway Ski Federation from 2021 to 2026, respectively, to cowl all FIS World Cup occasions together with males’s and girls’s alpine snowboarding, cross-country snowboarding, ski leaping and Nordic-combined. 
  • The Group efficiently prolonged the partnership between LGT and the World Curling Federation (WCF), securing the Liechtenstein-based monetary group because the official sponsor for the 2022 European Curling Championships and official title sponsor for the World Girls’s Curling Championship 2024.
  • German door producer Hörmann prolonged its settlement with the Worldwide Biathlon Union (IBU) in a deal signed by the Group. The extended partnership will run for 4 extra years masking all IBU World Cup occasions till the top of the 2023/2024 season.
  • Finland Biathlon additionally prolonged its long-running settlement with the Group for unique advertising and marketing rights for all IBU occasions till the 2029/30 season.    

Key New Enterprise Wins

  • Broadcaster Pragosport reached an settlement masking 15 totally different media properties for a interval as much as 2028 within the territories of Czech Republic, Slovakia and Hungary, with the Group serving because the unique media rights accomplice for all purchasers.
  • Besiktas Sports activities Membership, one in every of Turkey’s high soccer, basketball, volleyball, handball and esports golf equipment reached an unique advertising and marketing and gross sales settlement with the Group for all sports activities in addition to all related venues from 2021 to 2024.
  • The Group accomplished media agreements for the Scottish Premier Soccer League (SPFL) in over 30 nations. These contracts will run via till a minimum of the conclusion of the 2022/23 season.

Digital, Manufacturing, Sports activities Options (DPSS)

  • As sports activities occasions and video games such because the German Bundesliga soccer matches proceeded with out spectators, the Group developed extra venue promoting together with putting in further rows of LED boards rather than empty seats as a way to present extra visibility and elevated publicity for sponsors and advertisers.
  • The Group has renewed its contract with France’s Ligue Soccer Skilled (LFP) for the following 4 seasons persevering with a long-running and profitable partnership.
  • The Group obtained a mission mandate with the Skilled Golf Tour (PGAT) to launch the API Stay Scoring and the TourCast, which allows photographs to be viewable just about in actual time.
  • An settlement was reached with cell community supplier Verizon for 4 separate offers to help new Verizon 5G expertise for multi-camera options for some bigger US sports activities associations (together with the NBA), shopper leisure (together with Fox’s “The Masked Singer”) and motor sports activities (NASCAR, IndyCar).
  • English Premier League membership Chelsea FC prolonged its partnership with the Group till 2021, with new merchandise together with a subscription-based paid video manufacturing that’s at the moment being developed.
  • The Group signed a brand new three-year settlement with the Badminton World Federation (BWF). The Group can be working with the federation on new content material for its digital platforms.
  • The Group prolonged its relationship with online game developer Activision Blizzard to work on its esports platforms, together with a brand new proprietary platform that built-in with Activision Blizzard’s current web site. This has enabled Activision Blizzard to develop a contemporary and environment friendly website infrastructure and utterly improve the web site for the favored esports Overwatch league and 20 Overwatch League workforce websites. 
  • IGBS, a three way partnership between HBS and IMG, gained the “Excellent Manufacturing Achievement –Occasion” award class for its manufacturing of the Rugby World Cup Japan 2019 by the SVG (Sports activities Video Group) Europe TV Awards, one of the prestigious our bodies for sports activities broadcasting and manufacturing throughout Europe. The event set new requirements in rugby broadcast manufacturing with the primary 8K manufacturing, using augmented actuality graphics and Hawk-Eye Good Replay expertise.

Mass Participation
Within the second quarter, though many mass participation occasions have been cancelled or postponed as a result of international pandemic, the Group nonetheless hosted a couple of profitable occasions to offer contributors with a stimulating outlet in the course of the pandemic.

  • Group firm Megamarsch launched the #Wirgehenweiter (“we go additional”) problem that befell from June 20-21. The digital occasion lined a number of strolling distances and was bought out in two weeks. This preliminary success led to the launch of additional editions in August and September.
  • All through the Covid-19 lockdown, HYROX, the World Sequence of Health (through which the Group at the moment has a minority funding), sought new methods to offer health competitions for its worldwide neighborhood. After the success of the House Sequence, its first initiative, which attracted 5,000 contributors from 51 nations, HYROX launched the Digital Championships of Health, which started on July 3 and features a body weight and tools division comprising 5 exercises over three weeks.

China Enterprise Highlights
Within the second quarter of 2020, nearly all sports activities occasions have been cancelled or postponed throughout China on account of the COVID-19 pandemic.

  • The 2020 Chengdu Double Heritage Marathon was held on-line from Might 1 to Might 31, instead resolution for one of many largest annual highway races in Western China – the Chengdu Double Heritage Worldwide Marathon. There have been greater than 6,500 runners registered for the web race’s three classes, together with 6km, half-marathon, and marathon.

Second Quarter 2020 Monetary Outcomes

Income

Whole income for the second quarter of 2020 was €51.8 million (US$58.2 million), representing a lower of 75% year-over-year, primarily attributable to a lower in income from the Spectator Sports activities and DPSS segments. Excluding reimbursement income2, complete income was €51.4 million (US$57.8 million), a lower of 72% over the second quarter of 2019.

The next desk units forth a breakdown of income by section for the intervals indicated:

  Three Months Ended June 30,
  2020 2019
(in thousands and thousands, besides percentages) USD  EUR % of
Income
EUR % of
Income
YoY Change
Core segments:            
Spectator Sports activities 43.2 38.4 74 % 138.1 66 % (72 %)
DPSS 14.7 13.1 25 % 54.8 26 % (76 %)
Mass Participation 0.3 0.3 1 % 16.9 8 % (98 %)
Whole Income 58.2 51.8 100 % 209.8 100 % (75 %)
DPSS excluding reimbursement income 14.3 12.7   27.1   (53 %)
Whole Income excluding reimbursement income 57.8 51.4   182.1   (72 %)
               
  Six Months Ended June 30,
  2020 2019
(in thousands and thousands, besides percentages) USD  EUR % of
Income
EUR % of
Income
YoY Change
Core segments:            
Spectator Sports activities 200.1 178.1 83 % 332.2 77 % (46 %)
DPSS 40.5 36.0 16 % 76.3 18 % (53 %)
Mass Participation 1.5 1.3 1 % 21.2 5 % (94 %)
Whole Income  242.1 215.4 100 % 429.7 100 % (50 %)
DPSS excluding reimbursement income 39.3 35.0   48.7   (28 %)
Whole Income excluding reimbursement income 241.0 214.4   402.1   (47 %)

_______________
2 Reimbursement revenues characterize income that has related prices of an analogous, usually matching, quantity (reimbursement prices), thereby leading to a negligible gross margin influence.

  • Spectator Sports activities: The lower in income was primarily on account of postponement or cancellation of occasions on account of the COVID-19 mitigation efforts. For instance, the IIHF Ice Hockey World Championships have been cancelled, and the Italian soccer occasions have been suspended in April and Might this yr.
  • DPSS: The lower in income was primarily pushed by the cyclicality impact, because the Girls’s FIFA World Cup befell in 2019.
  • Mass Participation: The lower in income was as a result of cancellation of all scheduled occasions on account of the COVID-19 mitigation efforts. The variety of occasions was nil and 50 within the second quarter of 2020 and of 2019, respectively. The variety of gross-paid athletes was nil and 225,000 within the second quarter of 2020 and of 2019, respectively.

Gross revenue

The next desk units forth a breakdown of gross revenue and the corresponding gross margin by section for the intervals indicated:

  Three Months Ended June 30,
  2020 2019
(in thousands and thousands, besides percentages) USD EUR Gross
margin
EUR Gross
margin
YoY Change
in Gross
Revenue
Core segments:            
Spectator Sports activities 32.7 29.0 76 % 55.4 40 % (48 %)
DPSS 6.7 6.0 46 % 13.1 24 % (54 %)
Mass Participation (0.6) (0.5) (189 %) 8.0 47 % (106 %)
Whole Gross Revenue 38.8 34.5 67 % 76.5 36 % (55 %)
                   
  Six Months Ended June 30,
  2020 2019
(in thousands and thousands, besides percentages) USD EUR Gross
margin
EUR Gross
margin
YoY Change
in Gross
Revenue
Core segments:            
Spectator Sports activities 85.9 76.5 43 % 99.4 30 % (23 %)
DPSS 18.2 16.2 45 % 22.4 29 % (28 %)
Mass Participation (0.4) (0.4) (31 %) 8.3 39 % (105 %)
Whole Gross Revenue 103.7 92.3 43 % 130.1 30 % (29 %)
                   
  • Spectator Sports activities: The lower in gross revenue was primarily as a result of cancellation of the IIHF World Championships and the cancellation or postponement of the summer season sport occasions.
  • DPSS: The lower in gross revenue was primarily pushed by cyclicality impact, because the Girls’s FIFA World Cup befell in 2019.
  • Mass Participation: The lower in gross revenue was as a result of cancellation of all scheduled occasions on account of the COVID-19 mitigation efforts.  

Gross margin, or gross revenue as a proportion of income, was 67%, in contrast with 36% within the corresponding quarter of 2019, primarily reflecting a better weight of commission-model primarily based enterprise in soccer, which instructions a better gross margin.

Personnel bills have been €22.8 million (US$25.6 million), in contrast with €27.4 million within the second quarter in 2019, primarily attributable to the Group’s strict value management measures throughout COVID-19 outbreak, reminiscent of a hiring freeze, wage reductions and diminished hours. As well as, the Group acquired “diminished working time” compensation from native authorities which partially offset personnel bills within the second quarter of 2020.

Promoting, workplace and administrative bills have been €6.2 million (US$7.0 million), in contrast with €12.8 million within the second quarter in 2019, primarily ensuing from the associated fee saving actions in addition to the absence of IPO-related bills incurred in 2019. The associated fee financial savings have been on account of, amongst others, strict journey restrictions and reductions of selling bills.

Depreciation and amortization bills have been €5.9 million (US$6.6 million), in contrast with €5.4 million within the second quarter in 2019. 

Different working earnings, internet was €15.1 million (US$17.0 million) in contrast with nil within the second quarter of 2019, primarily reflecting insurance coverage funds for occasions that have been cancelled and a optimistic honest worth adjustment of liabilities from acquisition of firms.

Finance prices have been €10.3 million (US$11.6 million), in contrast with €12.2 million within the second quarter in 2019, primarily on account of curiosity expense financial savings underneath the senior 364-day time period mortgage facility entered into in March 2020, which was partially offset by a rise in overseas alternate loss.

Earnings tax was €0.2 million (US$0.2 million), in contrast with €0.2 million within the second quarter of 2019.

Revenue for the interval from persevering with operations was €5.5 million (US$6.2 million), in comparison with €19.0 million within the second quarter of 2019, primarily as a result of decreased gross revenue, which was partially offset by financial savings in overhead bills and finance prices.

Adjusted EBITDA from persevering with operations was €20.9 million (US$23.5 million), in comparison with €41.2 million within the second quarter of 2019, principally ensuing from the decreased gross revenue, which was partially offset by financial savings in overhead bills.

Internet loss for the Group (inclusive of discontinued operations) attributable to peculiar shareholders of Wanda Sports activities Group Firm Restricted was €30.0 million (US$33.7 million), in comparison with a internet revenue of €23.4 million within the second quarter of 2019.

Fundamental and diluted internet loss for the Group (inclusive of discontinued operations) per American Depositary Share (“ADS”) have been each €0.22 (US$0.24), in comparison with fundamental and diluted internet revenue per ADS of each €0.17 within the second quarter of 2019. 

Money and money equivalents

As of June 30, 2020, the Group had complete money and money equivalents of €167.5 million (US$188.3 million) from persevering with operations.

Indebtedness

As of June 30, 2020, the Group had complete interest-bearing liabilities of €685.2 million (US$770.0 million) from persevering with operations.

The next desk units forth a breakdown of interest-bearing liabilities at interval finish.

  June 30, 2020
(in thousands and thousands) USD EUR
Wanda Sports activities Group Firm Restricted 239.0 212.7
Infront Group 531.0 472.5
Whole 770.0 685.2
     

COVID-19 Enterprise Operation & Outlook 

  • As the worldwide COVID-19 pandemic continues past the second quarter, the Group’s high precedence stays to make sure the security and well-being of its athletes, workers, purchasers and key companions. In response to the outbreak, the Group closed its company workplaces and requested that every one workers both work remotely or work at workplace premises in shifts for restricted intervals of time in the course of the second quarter.  At the moment, chosen workers have returned to workplaces in compliance with the heightened hygiene protocols as required by the respective public well being authorities.  In response to the pandemic, the Group undertook plenty of actions to mitigate the influence, together with lowering headcount by 13% because the first quarter of 2020, leading to roughly 1,100 workers as of June 30, 2020, excluding discontinued operations. 
  • Virtually all sports activities occasions have been cancelled or postponed on a world foundation within the second quarter.  The Group’s present precedence is meticulous planning for the resumption of sports activities occasions in numerous markets (even when with out spectators at venues). Infront is one in every of roughly 30 underwriters of the #Sport4Recovery initiative, which launched a global marketing campaign to encourage policymakers to soundly re-open organized sports activities. Along with speaking with policymakers, this marketing campaign goals to collaborate with the scientific neighborhood to focus on the significance of sport for psychological and bodily well being restoration in addition to to mobilize athletes and sports activities followers. 
  • Regardless of the difficult atmosphere, the Group continues to undertake artistic sports activities options by innovating inside its enterprise on a number of fronts.  Examples of this innovation embody the IIHF digital world championship, the newly developed digital ecosystem for EHF and the esports event for the Italian soccer league’s eSerie A TIM golf equipment. 
  • To mitigate additional potential dangers to the Group’s monetary efficiency and higher align its value construction with shopper demand, administration continues to implement a complete set of short-term value discount and money circulation enchancment actions.  Wanting forward and aware of the challenges the trade faces, the Group has initiated a complete overview with the aim of additional streamlining its enterprise, as a way to create a leaner group with higher flexibility that can proceed to be extremely targeted on delivering worth for all its stakeholders. Total, the overview goals to allow the Group to appreciate its full potential over the mid- to long-term and to realize a sustainable and wholesome base for its future.

Different Developments

On Jun 24, 2020, the German Soccer Affiliation (DFB) knowledgeable the Group that it might finish its longstanding partnership with Infront and terminate or discontinue all current contracts primarily based on allegations of “doubtlessly damaging actions.” Infront responded in a public assertion, amongst different issues, difficult the validity of the cancelation.  Infront and the DFB stay in discussions to resolve the matter between them.

Liquidity

The Firm had complete money and money equivalents of €167.5 million (US$188.3 million) excluding discontinued operations on the finish of the second quarter.  As of July 31, 2020, submit the completion of the IRONMAN Group gross sales, the Firm had complete money and money equivalents of €208.7 million (US$ 234.5 million).  As beforehand reported, the Firm intends to make use of the steadiness of the web proceeds of the IRONMAN transaction, topic to enterprise circumstances, to return capital to its shareholders (both via a particular dividend or a share repurchase program; in both case, topic to shareholder approval), and/or for basic company functions.

Administration is assured of the Group’s sturdy liquidity place and its disciplined method in managing the continued capital necessities. 

Monetary Steerage

As a result of vital uncertainties referring to the scope, period and influence of COVID-19, the Firm at the moment is unable to fairly estimate its 2020 monetary efficiency and, accordingly, just isn’t offering any up to date steering.

Administration continues to imagine that the Firm’s long-term development prospects stay promising and that Wanda Sports activities Group is properly positioned to play a number one function within the international sports activities media and occasions trade into the long run.

Convention Name Data

Wanda Sport’s administration will host an earnings convention name at 8:00 AM U.S. Japanese Time on September 1, 2020 (8:00 PM Beijing/Hong Kong time on September 1, 2020).

Individuals can be part of the earnings convention name by finishing on-line registration at: http://apac.directeventreg.com/registration/event/7083268. Upon registration, all contributors can be supplied with participant dial-in numbers, passcodes and distinctive registrant IDs to entry the convention name.

Moreover, contributors can be part of the decision through a reside webcast of the earnings convention name at: http://investor.wsg.cn/. An archived webcast can be accessible via the identical hyperlink.

A telephonic replay can be accessible after the conclusion of the convention name, from 11:00 a.m. U.S. Japanese Time on September 1 to 09:59 a.m. U.S. Japanese Time on September 9, 2020 by dialing +61 2 8199 0299 and getting into passcode 7083268

About Wanda Sports activities Group

Wanda Sports activities Group is a number one international sports activities occasions, media and advertising and marketing platform with a mission to unite individuals in sports activities and allow athletes and followers to reside their passions and goals. Via its companies, Infront and Wanda Sports activities China, Wanda Sports activities Group has vital mental property rights, long-term relationships and broad execution capabilities, enabling it to ship inspiring sports activities occasion experiences, creating entry to participating content material and constructing inclusive communities. Wanda Sports activities Group provides a complete array of occasions, advertising and marketing and media companies via its three major segments: Spectator Sports activities, Digital, Manufacturing, Sports activities Options (DPSS) and Mass Participation. Wanda Sport Group’s full-service platform creates worth for its companions and purchasers in addition to different stakeholders within the sports activities ecosystem, from rights homeowners, to manufacturers and advertisers, and to followers and athletes.

Headquartered in China, Wanda Sports activities Group has greater than 49 workplaces in 17 nations with over 1,100 workers all over the world.  For extra data, please go to http://investor.wsg.cn/investor-relations.

Use of Non-IFRS Monetary Measures

To complement our consolidated monetary statements that are introduced in accordance with Worldwide Monetary Reporting Requirements as issued by the Worldwide Accounting Requirements Board (“IFRS”), we additionally use Adjusted EBITDA as a non-IFRS monetary measure. We current this non-IFRS monetary measure as a result of it’s utilized by our administration in evaluating our working outcomes and for monetary and operational decision-making functions.  We outline Adjusted EBITDA as internet earnings excluding share-based compensation and different non-recurring bills. We additionally imagine that this non-IFRS monetary measure gives helpful data to traders and others in understanding and evaluating our consolidated outcomes of operations in the identical method as our administration and in evaluating monetary outcomes throughout accounting intervals and to these of our peer firms.

Non-IFRS monetary measures shouldn’t be thought of in isolation or construed as a substitute for revenue/(loss) from operations and internet revenue/(loss) or another measure of efficiency, or as an indicator of our working efficiency. Adjusted EBITDA is probably not corresponding to equally titled measures introduced by different firms. Different firms might calculate equally titled measures in another way, limiting their usefulness as comparative measures to our information. We encourage traders and others to overview our monetary data in its entirety and never depend on a single monetary measure. 

Reconciliation of Adjusted EBITDA and EBITDA, one other non-IFRS monetary measure, to essentially the most immediately comparable IFRS monetary measure is ready forth on the finish of this launch.

Change Fee Data 

This press launch incorporates translation of sure Euro (“€”) quantities into U.S. Greenback (“$”) at specified charges solely for the comfort of readers. Until in any other case famous, all translations from Euro to U.S. greenback have been made on the alternate charge of €0.8899 to US$1.00, the alternate charge on June 30, 2020 set forth within the H.10 statistical launch of the Board of Governors of the Federal Reserve System.

Secure Harbor Assertion 

This announcement incorporates forward-looking statements. These statements are made underneath the “secure harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements embody however are usually not restricted to administration quotes and the Firm’s monetary outlook. These forward-looking statements will be recognized by terminology reminiscent of “will,” “estimate,” “mission,” “predict,” “imagine,” “anticipate,” “anticipate,” “intend,” “potential,” “plan,” “aim” and comparable statements. The Firm may make written or oral forward-looking statements in its periodic experiences to the U.S. Securities and Change Fee (“SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to 3rd events. Such statements contain sure dangers and uncertainties that would trigger precise outcomes to vary materially from these expressed or implied within the forward-looking statements and, consequently, may very well be affected by the unsure and unprecedented influence of the COVID-19 pandemic on the Firm’s enterprise and operations and the associated influence on its liquidity wants. These forward-looking statements embody, however are usually not restricted to, statements about: the influence of the pandemic and associated mitigation efforts on the Firm’s enterprise, operations and working outcomes; the Firm’s objectives and methods; the anticipated development within the Firm’s trade; the Firm’s expectations relating to its capability to draw rights-in companions and monetize their rights via rights-out preparations; modifications in shopper conduct and shopper and company spending, specifically on account of the pandemic; the Firm’s capability to achieve acceptable ranges of engagement with its athletes following within the context of present public well being considerations; the Firm’s future enterprise improvement, outcomes of operations and monetary situation; competitors within the Firm’s trade; basic financial and enterprise circumstances, together with on account of the pandemic; the end result of discussions with rights homeowners and lenders to mitigate the influence of the consequences of the pandemic on the Group; and assumptions underlying or associated to any of the foregoing in addition to dangers, uncertainties, and different elements described in ”Threat Components” and elsewhere within the Firm’s annual report on Kind 20-F for the yr ended December 31, 2019, which is offered on the SEC’s web site at www.sec.gov. Extra data can be made accessible in future filings that the Firm makes now and again with the SEC.

As well as, any forward-looking statements contained on this press launch are primarily based on assumptions that the Firm’s believes to be affordable as of this date. The Firm undertakes no obligation to replace any forward-looking statements to replicate occasions or circumstances after the date of this press launch or to replicate new data or the incidence of unanticipated occasions, besides as required by legislation.

For investor and media inquiries, please contact:

Wanda Sports activities Group

Edith Kwan

Tel:  +86 (10) 8558 7456

E-mail:  ir@wsg.cn

WANDA SPORTS GROUP COMPANY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(Quantities in 1000’s of Euro (“€”) or, for comfort translation, 1000’s of U.S. Greenback (“$”), apart from variety of shares and per share information)

  For the three months ended   For the six months ended
  June 30, 2020   June 30, 2019   June 30, 2020   June 30, 2019
  $     $  
Persevering with operations                              
Income 58,193   51,786     209,812     242,101   215,446     429,719  
Price of gross sales (19,419 ) (17,281 )   (133,300 )   (138,375 ) (123,140 )   (299,576 )
Gross revenue 38,774   34,505     76,512     103,726   92,306     130,143  
Personnel bills (25,611 ) (22,791 )   (27,443 )   (58,357 ) (51,932 )   (53,840 )
Promoting, workplace and administrative bills (6,997 ) (6,227 )   (12,795 )   (17,505 ) (15,578 )   (19,787 )
Depreciation and amortization (6,612 ) (5,884 )   (5,353 )   (13,137 ) (11,691 )   (10,368 )
Different working earnings/(expense), internet 16,959   15,092     (46 )   16,460   14,648     931  
Finance prices (11,579 ) (10,304 )   (12,194 )   (25,177 ) (22,405 )   (18,033 )
Finance earnings 1,121   998     258     1,324   1,178     848  
Share of lack of associates and joint ventures (30 ) (27 )   (147 )   (63 ) (56 )   (10 )
Revenue earlier than tax from persevering with operations 6,025   5,362     18,792     7,271   6,470     29,884  
Earnings tax 172   153     185     (5,904 ) (5,254 )   (7,519 )
Revenue for the interval from persevering with operations 6,197   5,515     18,977     1,367   1,216     22,365  
                               
Discontinued operations                              
(Loss)/revenue after tax for the interval from discontinued operations (40,108 ) (35,693 )   5,588     (62,264 ) (55,409 )   (6,436 )
(Loss)/revenue for the interval (33,911 ) (30,178 )   24,565     (60,897 ) (54,193 )   15,929  
                               
Attributable to:                              
Fairness holders of the dad or mum (33,664 ) (29,958 )   23,446     (60,248 ) (53,615 )   14,586  
Non‑controlling pursuits (247 ) (220 )   1,119     (649 ) (578 )   1,343  
  (33,911 ) (30,178 )   24,565     (60,897 ) (54,193 )   15,929  
Earnings per share3:                              
Fundamental (loss)/revenue for the interval attributable to peculiar fairness holders of the dad or mum (0.16 ) (0.14 )   0.11     (0.29 ) (0.26 )   0.07  
Diluted (loss)/revenue for the interval attributable to peculiar fairness holders of the dad or mum (0.16 ) (0.14 )   0.11     (0.29 ) (0.26 )   0.07  
Fundamental (loss)/revenue for the interval attributable to ADS holders of the dad or mum (0.24 ) (0.22 )   0.17     (0.44 ) (0.39 )   0.11  
Diluted (loss)/revenue for the interval attributable to ADS holders of the dad or mum (0.24 ) (0.22 )   0.17     (0.44 ) (0.39 )   0.11  
                               
Earnings per share for persevering with operations:                              
Fundamental revenue for the interval attributable to peculiar fairness holders of the dad or mum 0.03   0.03     0.09     0.01   0.01     0.10  
Diluted revenue for the interval attributable to peculiar fairness holders of the dad or mum 0.03   0.03     0.09     0.01   0.01     0.10  
Fundamental revenue for the interval attributable to ADS holders of the dad or mum 0.05   0.04     0.13     0.01   0.01     0.16  
Diluted revenue for the interval attributable to ADS holders of the dad or mum 0.05   0.04     0.13     0.01   0.01     0.16  

_______________
3 Fundamental and diluted earnings per share and revenue attributable to ADS holders of the dad or mum for the three months ended June 30, 2020 and 2019 have been computed within the assumption that the Firm had issued 23.8 million ADS, and the Firm had roughly 208 million and 205 million peculiar shares issued and excellent as at June 30, 2020 and 2019, respectively.


WANDA SPORTS GROUP COMPANY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Quantities in 1000’s of Euro (“€”) or, for comfort translation, 1000’s of U.S. Greenback (“$”))

  For the three months ended   For the six months ended
  June 30, 2020    June 30, 2019    June 30, 2020   June 30, 2019
  $     $  
(Loss)/revenue for the interval (33,911 ) (30,178 )   24,565     (60,897 ) (54,193 )   15,929  
Different complete earnings:                              
Different complete earnings to be reclassified to revenue or loss in subsequent intervals (internet of tax):                              
Internet (loss)/achieve on money circulation hedges (660 ) (587 )   237     (7,520 ) (6,692 )   (96 )
Change variations on translation of overseas operations (3,987 ) (3,548 )   (13,673 )   4,550   4,049     (8,469 )
Internet different complete loss to be reclassified to revenue or loss in subsequent intervals (4,647 ) (4,135 )   (13,436 )   (2,970 ) (2,643 )   (8,565 )
Different complete earnings to not be reclassified to revenue or loss in subsequent intervals:                              
Internet remeasurement on outlined profit plans       (12 )         (12 )
Internet loss on fairness devices designated at honest worth via different complete earnings (8,912 ) (7,931 )       (8,912 ) (7,931 )    
Internet different complete loss to not be reclassified to revenue or loss in subsequent intervals (8,912 ) (7,931 )   (12 )   (8,912 ) (7,931 )   (12 )
Different complete loss for the interval, internet of tax (13,559 ) (12,066 )   (13,448 )   (11,882 ) (10,574 )   (8,577 )
Whole complete (loss)/earnings for the interval, internet of tax (47,470 ) (42,244 )   11,117     (72,779 ) (64,767 )   7,352  
Attributable to:                              
Fairness holders of the dad or mum (47,135 ) (41,946 )   10,293     (72,016 ) (64,087 )   5,536  
Non‑controlling pursuits (335 ) (298 )   824     (763 ) (680 )   1,816  
  (47,470 ) (42,244 )   11,117     (72,779 ) (64,767 )   7,352  
                               


WANDA SPORTS GROUP COMPANY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Quantities in 1000’s of Euro (“€”) or, for comfort translation, 1000’s of U.S. Greenback (“$”))

  June 30, 2020   December 31, 2019  
  $        
ASSETS              
CURRENT ASSETS              
Money and money equivalents 188,276   167,547     163,225  
Commerce and different receivables 232,804   207,172     264,041  
Accrued earnings 841   748     10,498  
Contract belongings 50,343   44,800     53,541  
Inventories 634   564     9,395  
Earnings tax receivables 3,487   3,103     13,594  
Different belongings 81,846   72,836     81,001  
  558,231   496,770     595,295  
Belongings held on the market 933,618   830,827     8,125  
  1,491,849   1,327,597     603,420  
NON‑CURRENT ASSETS              
Lengthy‑time period receivables 10,814   9,623     6,808  
Investments in associates and joint ventures 4,152   3,695     3,277  
Property, plant and tools 15,234   13,557     26,294  
Proper of use belongings 25,931   23,076     35,249  
Intangible belongings 73,929   65,789     486,933  
Goodwill 263,686   234,654     537,585  
Contract belongings 12,332   10,974     10,268  
Deferred tax belongings 20,319   18,082     23,063  
Different belongings 67,423   60,000     63,164  
  493,820   439,450     1,192,641  
TOTAL ASSETS 1,985,669   1,767,047     1,796,061  
               


WANDA SPORTS GROUP COMPANY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Quantities in 1000’s of Euro (“€”) or, for comfort translation, 1000’s of U.S. Greenback (“$”))

  June 30, 2020   December 31, 2019
  $        
LIABILITIES              
CURRENT LIABILITIES              
Commerce and different payables 151,380   134,713     173,855  
Curiosity‑bearing liabilities 768,774   684,132     204,583  
Lease liabilities 7,877   7,010     10,041  
Accrued expense 54,199   48,232     69,846  
Deferred earnings 2   2     5  
Contract liabilities 110,591   98,415     199,900  
Different liabilities 10,036   8,930     19,208  
Earnings tax payable 12,973   11,545     21,787  
Provisions 2,822   2,511     9,234  
  1,118,654   995,490     708,459  
Liabilities immediately related to the belongings held on the market 584,082   519,775     6,975  
  1,702,736   1,515,265     715,434  
NON‑CURRENT LIABILITIES              
Curiosity‑bearing liabilities 1,169   1,040     641,085  
Lease liabilities 19,213   17,098     29,154  
Accrued bills 3,566   3,173     3,051  
Contract liabilities 12,812   11,401     17,271  
Deferred tax liabilities 20,443   18,192     99,202  
Provisions 2,050   1,824     3,936  
Lengthy‑time period payroll payables 18,029   16,044     15,336  
Different liabilities 24,783   22,056     43,578  
  102,065   90,828     852,613  
TOTAL LIABILITIES 1,804,801   1,606,093     1,568,047  
EQUITY              
Share capital 1,708,974   1,520,816     1,520,816  
Reserves (928,267 ) (826,065 )   (813,300 )
Accrued deficit (603,243 ) (536,826 )   (483,211 )
Fairness attributable to fairness holders of the dad or mum 177,464   157,925     224,305  
Non‑controlling pursuits 3,404   3,029     3,709  
TOTAL EQUITY 180,868   160,954     228,014  
TOTAL LIABILITIES AND EQUITY 1,985,669   1,767,047     1,796,061  
               


WANDA SPORTS GROUP COMPANY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Quantities in 1000’s of Euro (“€”) or, for comfort translation, 1000’s of U.S. Greenback (“$”))

  For the three months ended   For the six months ended
  June 30, 2020   June 30, 2019   June 30, 2020   June 30, 2019
  $     $  
NET CASH FLOWS FROM OPERATING ACTIVITIES 5,791   5,153     30,704     23,024   20,489     817  
NET CASH FLOWS USED IN INVESTING ACTIVITIES (923 ) (821 )   (41,991 )   (36,751 ) (32,705 )   (125,118 )
NET CASH FLOWS FROM FINANCING ACTIVITIES 8,684   7,728     12,361     67,595   60,153     131,999  
NET INCREASE IN CASH AND CASH EQUIVALENTS 13,552   12,060     1,074     53,868   47,937     7,698  
Money and money equivalents at starting of the interval 185,099   164,720     186,739     183,419   163,225     177,048  
Impact of overseas alternate charge modifications, internet 512   455     (1,308 )   (953 ) (848 )   1,759  
Switch to belongings held on the market (10,887 ) (9,688 )       (48,058 ) (42,767 )    
CASH AND CASH EQUIVALENTS AT END OF PERIOD 188,276   167,547     186,505     188,276   167,547     186,505  
                   


WANDA SPORTS GROUP COMPANY LIMITED

RECONCILIATION OF NON-IFRS MEASURE – IFRS Revenue for the Interval and Yr to Adjusted EBITDA (unaudited)

(Quantities in 1000’s of Euro (“€”) or, for comfort translation, 1000’s of U.S. Greenback (“$”))                                                   

  For the three months ended   For the six months ended
  June 30, 2020   June 30, 2019   June 30, 2020   June 30, 2019
  $     $  
Continued operations                              
Revenue for the interval from persevering with operations 6,197   5,515     18,977     1,367   1,216     22,365  
Earnings tax (172 ) (153 )   (185 )   5,904   5,254     7,519  
Internet curiosity bills 7,476   6,653     14,634     17,116   15,232     17,527  
Depreciation and amortization 6,612   5,884     5,353     13,137   11,691     10,368  
EBITDA from persevering with operations 20,113   17,899     38,779     37,524   33,393     57,779  
                               
Share-based compensation(1) 1,274   1,134     279     2,647   2,356     730  
Bills or costs referring to acquisition(2)       317           503  
Bills or costs referring to IPO or financing(3)       3,496     357   318     3,721  
Restructure and disposal of investments/subsidiaries(4) (1,123 ) (999 )       (1,123 ) (999 )    
Loss/(achieve) on overseas alternate and derivatives, and different monetary costs(5) 2,982   2,653    

(2,698

)

 

6,737

 

5,995

   

(342

)

Estimated shopper compensation referring to fraudulent actions(6)       1,029           7,029  
Bills or costs referring to Sarbanes-Oxley compliance(7) 284   253         500   445      
Remeasurement of contingent consideration(8) (100 ) (89 )       (100 ) (89 )    
Internet loss on disposal of belongings (9) 4   4         99   88      
Bills referring to shareholder class motion lawsuit (10) 89   79         160   142      
Adjusted EBITDA from persevering with operations 23,523   20,934     41,202     46,801   41,649     69,420  
                               
Discontinued operations                              
Loss/(achieve) for the interval from discontinued operations (40,108 ) (35,693 )   5,588     (62,264 ) (55,409 )   (6,436 )
Internet curiosity expense, earnings tax, depreciation and amortization 30,024   26,718     8,615     27,067   24,087     14,149  
EBITDA from discontinued operations (10,084 ) (8,975 )   14,203     (35,197 ) (31,322 )   7,713  
Changes (11) (433 ) (385 )   3,395     11,662   10,378     6,140  
Adjusted EBITDA from discontinued operations (10,517 ) (9,360 )   17,598     (23,535 ) (20,944 )   13,853  
                               
Adjusted EBITDA 13,006   11,574     58,800     23,266   20,705     83,273  
                               

_______________

  1. Share-based compensation consisted of share-based compensation and social insurance coverage bills. This merchandise has been excluded as it’s a non-recurring expense.
  2. Represents bills incurred for skilled charges reminiscent of authorized counsel, auditors, underwriters, valuation specialists and consultants primarily in respect of acquisitions.
  3. Represents skilled charges of authorized counsel, auditors, due diligence specialists, consultants, and associated bills for our IPO and financing.
  4. Represents bills or prices incurred within the restructuring and disposal of investments and subsidiary firms.
  5. Represents the loss/(achieve) on overseas alternate, spinoff monetary devices at honest worth via revenue or loss, termination of the cross-currency swap and different monetary costs.
  6. Represents the quantity estimated to be paid by Infront as compensation in reference to fraudulent actions presumably undertaken by a former senior worker of Infront.
  7. Represents Sarbanes-Oxley Act consulting costs paid to 3rd events.
  8. In 2020, remeasurement of contingent consideration represents honest worth change of contingent consideration from enterprise mixture of Gsport.
  9. Represents internet loss on disposal of property, plant and tools and intangible belongings.
  10. Represents authorized charges associated to shareholder class motion, voluntarily dismissed on Might 18, 2020.
  11. Represents change in honest worth of investments amounting to €1.3 million, features on overseas alternate amounting to €3.0 million and different non-recurring bills amounting to €1.3 million.

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