SPORTTOTAL AG has adjusted its revenues and earnings forecasts for 2018 due to delays in the VENUES division (race track projects).
Ad-hoc: SPORTTOTAL AG adjusts revenues and earnings forecast
Köln, 21. Juni 2018.
SPORTTOTAL AG has adjusted its revenues and earnings forecasts for 2018 due to delays in the Venues division (race track projects). The management now anticipates revenues of between € 42 and € 56 million (previously € 50 to € 70 million) and EBIT of € -3 million to € -8.2 million (previously € -3 million to € +3 million).
The management’s forecast reflects the possibility that only a small part of the three projects originally planned may be recognized in revenues in 2018. However, if the three possible projects are completed with the originally anticipated levels of revenues and earnings, the result could come in at EUR -3 million. Instead of the minimum anticipated revenue contribution of EUR 25 million and the minimum anticipated EBIT contribution of EUR +4 million, the division may only generate revenues of approx. EUR 7 million and EBIT breakeven in the worst-case scenario – in the best-case scenario revenues of EUR 17.7 million and EBIT of + EUR 2.7 million, according to the current assessment.
The LIVE division’s performance and the holding costs (up to EUR 5 million) are completely in line with expectations which means that EBIT of around EUR 1 to EUR 2 million is set to be posted with revenues of about EUR 33 million.
The management can almost confirm the lower end of the earnings forecast range for the sporttotal.tv division with its fully automated transmission technology. Although the company is implementing rollout at a slower pace in football and driving forward a more rapid expansion in other sports – such as the German volleyball league – and internationalization. sporttotal.tv aims to secure the broadcast rights and future earnings streams long-term as early as possible through the associated short-term expenditure. The company is set to post an earnings contribution of EUR -3.6 to EUR -3.9 million in this division this year with revenues of EUR 2.7 to EUR 3 million – an EBIT adjustment of EUR 0.5 million compared to the lower end of the target figure. SPORTTOTAL AG aims to become the biggest video platform for amateur sport in Europe with sporttotal.tv – including enhanced features (analytics), interactive functions and a constantly growing community. The company expects the conclusion of further sponsorship contracts during the course of the year in the growth division of sporttotal.tv.
The forecast for the following years remains unchanged. For 2019, the management currently anticipates revenues of EUR 70 to 80 million with an EBIT margin of 7 to 9%. As things stand, it is set to break through the EUR 100-million revenues barrier in 2020 with an EBIT margin of at least 10%.