The result virtually will be at breakeven at mid-year.Guidance affirmed: EBIT to increase to € 1.5 million in 2017. New structure to already turn a profit in the first year.
CN: SPORTTOTAL AG raises EBIT by € 1.35 million
Cologne, 05 September 2017.
SPORTTOTAL AG (formerly _wige MEDIA AG) achieved virtually breakeven results in the first half of 2017 and affirms its guidance for 2017. Over the past twelve months the company has concentrated fully on the rapidly scalable digital business with video platforms and communities such as sporttotal.tv, on the high-margin international project business, as well as on the live events business. SPORTTOTAL AG has disposed of low margin or low growth operations. With a stable revenue volume of around € 27 million, the company has improved EBIT by € 1.35 million to € –0.04 million. The operating result had therefore almost reached breakeven by the end of the first six months. In view of this development, the Management Board affirms its guidance for revenues of approximately € 60 million and EBIT of € 1.5 million. “This is already clear evidence that we will be turning a good profit in the first year of our new structure,” emphasised CEO Peter Lauterbach. In the medium term, the Management Board envisages revenues of more than €100 million and an EBIT margin of over 10 percent.
sporttotal.tv is to become Europe’s leading sports video platform.
sporttotal.tv, the new sport video platform, is to make a significant contribution to the planned impetus for growth: Fielding a special camera technology which SPORTTOTAL AG has secured exclusively for itself, sporttotal.tv is able to fully automatically record sports events and make them available to fans free of charge via web TV or the basic version of the “sporttotal.tv” app. During live transmission, users can also take on the role of director by moving the 180-degree image across the pitch, selecting areas of the pitch by way of the zoom function, or selecting individual players to take a closer look. Highlights of the game can be shared across social networks. Following the successful conclusion of the pilot phase, sporttotal.tv entered into an exclusive 10-year contract with the German Football Association (DFB) to which all 21 national and five regional associations belong.
An important part of the partnership is the cooperation with FUSSBALL.de, one of the largest amateur sport platforms in the world with more than three billion page impressions a year and a decisive reach multiplier for sporttotal.tv. The installation and operation of sporttotal.tv is free for the clubs. After a one-year launch phase, the clubs’ membership of sporttotal.tv (€ 9.90 a month) will entitle them to participate in advertising revenue of 10 percent of all in-video proceeds. sporttotal.tv is the video platform with the greatest reach for German amateur football by a long way and therefore very attractive to advertising partners: sporttotal.tv has signed a long-term contract with Hyundai as its automotive partner, for example. SPORTTOTAL AG is excellently positioned with Allianz Deutschland AG, BILD, Deutsche Post AG and Telekom Deutschland as its partners as well as with Microsoft’s support to promote its development.
As CEO Peter Lauterbach states:
“We have ambitious goals: We want to make sporttotal.tv Europe’s leading digital sports video platform.”