Lint, 31 March 2008
Financial highlights
• The total revenue in the year 2007 amounted to EUR 30.1 million, compared to EUR 27.9 million in 2006 which is an increase of 8%.
• The 2007 EBITDA reached EUR 12.6 million, compared to EUR 12.9 million in 2006.
• Profit before taxes EUR 3.4 million and profit after taxes EUR 2.4 million.
• Profit per share, prior to dilution, amounts to EUR 0.32.
As already mentioned at Alfacam Group’s flotation on the stock market, the total revenues in the even years are significantly higher than in the odd years, because traditionally Alfacam is involved in major special projects in the even years, such as the Olympic Games and the European and World Championship Football. In the odd years there are far less projects of that magnitude. As a consequence, Alfacam’s results are largely characterised by this cyclicity.
Despite the extra demands on management time and the additional structural costs that were necessitated by the IPO, in 2007 Alfacam Group generated larger revenues than in 2006 and an EBITDA and EBIT, which are almost identical to those of 2006. In 2007, profit before taxes amounted to EUR 3.4 million, just like in 2006.
Hence, Alfacam Group proved that the company is capable of eliminating this cyclicity to a large extent by carrying out projects such as the Pan American Games, the Rugby World Cup, the World Championship Handball and others.
EVOLUTION OF THE FINANCIAL RESULTS
The best basis for comparison of the financial results of Alfacam Group is to compare the even with the even years and the odd years with the odd.
• 2007 vs. 2005
In comparison to 2005, the EBIT rose from EUR -0.5 million to EUR 5.6 million. Total revenue increased in the same period from EUR 22.3 million to EUR 30.1 million, which reflects the fact that Alfacam Group strives for “quality” revenue, i.e. revenue with an attractive margin.
In 2007, the EBITDA margin for the total revenue amounts to 42.0%, i.e. an increase of 131% in relation to the comparable year 2005.
The net profit margin amounts to 8% in 2007, compared to -6% in 2005 and reached EUR 2.4 million.
• 2007 vs. 2006
The fact that the EBITDA and EBIT are somewhat lower than in the year 2006, is the result of the reinforcement of the company’s structure in view of the IPO. This investment in staff will yield benefits in the future.
By recruiting additional staff in view of the expected growth in 2008, the personnel costs as a percentage of the revenue are higher in comparison to 2006 and 2005.
Profits before taxes amount to EUR 3.4 million in the odd year 2007, which is exactly the same figure as in the pair year 2006. Thus reaching the ambitious target, which the management had set itself at the IPO launch, to flatten the cyclicity.
In 2007, profit per average weighted share, prior to dilution, amounts to EUR 0.32 per share.
EXPANSION OF THE ACTIVITIES OUTSIDE EUROPE
Whereas in the year 2006 only 11.7% of the activities were undertaken outside Europe, this rose to 30.4% in 2007. The search for other markets with higher margins is a well-defined strategic choice and is good news for Alfacam’s future growth potential.
In 2007, Alfacam generated 15.5% of its total revenue in Asia and 6.6% in the Americas. In Brazil, a number of large projects such as the Pan American Games, the World Judo Championship and football games in Brazil’s premier league were very successfully completed. This trend continues in 2008 with the Beijing Olympics and all new contracts in its wake.
The same applies to the Middle East, where a new contract has been signed to record 500 football games in 2007-2008 in Saudi Arabia, Jordan and Syria. Since the contracts are negotiated in euros, the exchange rate has had no negative impact on the revenue.
For the year 2008, more than 45% of the revenue is expected to come from outside Europe. In January 2008, Alfacam recorded the African Cup of Nations, which was held in Ghana. The projects in the Middle East are on-going and the Summer Olympics in Beijing are Alfacam’s most important assignment of 2008. In addition, Alfacam also records all A1GP car races worldwide, 80% of which take place outside Europe.
RENEWAL OF THE OB FLEET
In 2007, the OB fleet comprising 15 vehicles grew with four new HDTV trucks. Two TV trucks were sold to third parties.
In June 2007, OB 30, a new-generation large HDTV OB vehicle, was completed. In August 2007, OB31 and OB34 joined the fleet and at the end of December a fourth vehicle (OB35) was put into service.
In total, EUR 30 million has been invested, of which EUR 22 million in four new OB trucks. EUR 8 million was used to start with the manufacturing of seven new OB vehicles. The largest part is leased and the remaining amount is financed with own funding.
In the year 2007, a lot of preparations and pre-investments have already been undertaken in view of 2008. Part of these costs is already reflected in the accounts of 2007.
DEVELOPMENT OF THE EUROCAM MEDIA CENTER
After the summer period Alfacam Group invested EUR 5.7 million in the further development of the Eurocam Media Center.
Studios 7, 8 and 9 were completed in September 2007 and studios 10 and 11 were finished in December. As a result, the revenue from these new investments is only partly visible in 2007.
The investment of approximately EUR 1.5 million in 12,000 m2 gross and 5,600 m2 net surface of solar panels was completed in November 2007 and fully financed via leasing contracts. The energy savings will bear fruit as from 2008. The revenue from the eco- electricity certificates will be generated as from 2008.
At the end of 2007, the debts with regard to the Eurocam Media Center amount to EUR 14 million on the balance sheet.
INVESTMENTS AND DEBTS
Total investments for 2007 (OB vehicles, wireless investments, building, solar panels, server-related investments) reached EUR 37.0 million.
The total equity capital was EUR 29.9 million on 31 December 2007, i.e. 33.5% of the balance total. On 31 December 2006, the total equity capital was EUR 8.7 million, i.e. 15.6% of the balance total. The increase was due to the issuing of new shares.
At the end of December 2007, Alfacam had a net credit position of EUR 41.5 million, in comparison with a net credit position of EUR 30.0 million on 31 December 2006. This is mainly to be explained by the construction of four new OB trucks, the seven OB vehicles of which construction had started in 2007 and the investments in the studio infrastructure of the Eurocam Media Center.
CONTENT AND PRODUCTIONS
At present, the ‘Content’ division comprises over 500 television productions, of which the rights have been acquired without being bought or paid. More specifically, it concerns co-productions for which Alfacam engages TV assets, people and studios. These costs are being booked without any counter value.
In 2007 alone, more than 400 hours of sports content, 60 large cultural productions and 150 short documentaries have been acquired this way, including concerts by the Flemish Philharmonic, the Flemish Radio Orchestra, a number of other classical orchestras, Jean Michel Jarre, Yasmine, Andre Rieu and finally numerous sports productions, such as the A1GP races, the Pan American Games and the World Championship Handball. The rights are still valid for several years. See annex 4 for a detailed list.
Results of the divisions for the financial year 2007
Below, the three divisions (Multicamera TV Services, Content and the Eurocam Media Center) are explained. The ‘Wireless’ activities are comprised in the Multicamera TV Services division.
Multicamera TV Services
The revenues of the Multicamera TV Services division amount to EUR 24.1 million in 2007, compared to EUR 22.6 million in 2006 and EUR 17.9 million in 2005. This growth also leads to better operational margins, which are the result of the attractive assignments that have been carried out in 2007 and the larger demand for HDTV productions. The Pan American Games for example were for the first time in history recorded in HD quality.
Content
Alfacam Group signed partnership agreements for a total value of more than EUR 5.5 million, spread over 3 years. In return, Alfacam Group is giving air-time on its HDTV channels and offers its partners other marketing opportunities.
The culture channel EXQI has been distributed by INDI since April 2007 and since December 2007 by Telenet, Coditel and Belgacom TV. The impact is, of course, not yet displayed in 2007, but the editorial structure has already being reinforced in order to be able to cope with the growth in the years to come.
Negotiations with regard to the international distribution of HD1 and EXQI are being held in several countries, and we expect a number of new distribution agreements in 2008.
In 2007, the total revenue of the Content division amounts to EUR 3.7 million.
Eurocam Media Center
The activities of the Eurocam Media Center are almost at cruising altitude with productions such as ‘Debby & Nancy’, ‘Zo is er maar één’, ‘De Provincieshow’, ‘De Bedenkers’, ‘De Slimste Mens’ (all VRT), ‘Sterren op het ijs’ (VTM via Eyeworks) and ‘Slimmer dan een kind van 10’ (VT4) being recorded at the studios. Production companies (a.o. Kanakna, Elisabeth, Eyeworks,...) are making more use of the studio infrastructure.
In addition, large corporate events continue to be organised at the Eurocam Media Center by Mercedes-Benz, INDI, Telenet, Aquafin and others. These types of events are optimising the occupancy factor.
The total revenue amounts to EUR 2.3 million in 2007, against EUR 1.4 million in 2006 and EUR 0.5 million in 2005.
OUTLOOK 2008
On 15 March 2008 the order book for 2008 represents an already larger revenue than the total revenue of the year 2007. The order book comprises both already completed projects and signed projects that still have to be undertaken.
The consolidated financial figures have been calculated in accordance with the IFRS valuation rules, as approved by the European Union. No comparable numbers are available for 2005 and 2006, because Alfacam Group nv was only founded at the stock-market flotation in May 2007. For this reason, the pro forma comparison basis is the first semester of 2007, and the entire financial years ending on 31 December 2006 and 31 December 2005.
NOTE OF THE AUDITOR
The auditor has confirmed that the auditing activities, which have been thoroughly completed, have not revealed any meaningful correction which must be carried out to the financial information published in this press release.
About Alfacam Group
Alfacam Group [EURONEXT Brussels: ALFA] comprises the activities of Alfacam, EuroLinX, Euro 1080 and the Eurocam Media Center.
Alfacam primarily offers services to TV stations and production houses and already has 17 OB trucks. Yearly, Alfacam carries out about 1800 assignments of which 1400 are in HDTV.
EuroLinX is a pioneer where satellite services and transmission of wireless HDTV images are concerned. The company is a spin-off of Alfacam and specialises in offering services for major international sports events, like cycling events and marathons, which demand the transfer of HDTV images over a large distance. The company has also built up many years of “know how” regarding the use of on-board cameras for car and motor races.
Euro1080 was the very first HDTV media company in Europe and began transmitting on 1st January 2004. Since then, it has continued to play a pioneering role in Europe where HDTV is concerned. Euro1080 comprises television channels such as HD1 and the culture channel EXQI.
The Eurocam Media Center is a modern, multifunctional building complex with 11 studios, which are entirely suitable for television productions and business events. The building complex comprises 60,000 m2 on a 90,000 m2 property. One of the biggest solar energy plants in Belgium is situated on the roof. The Eurocam Media Center not only houses Alfacam, Euro 1080 and EuroLinX, but also other companies that are active in the audiovisual industry such as MTV Networks Benelux.
ANNEX 1: PROFIT & LOSS ACCOUNT
ANNEX 2: CONSOLIDATED BALANCE SHEET
ANNEX 3: CONSOLIDATED CASH FLOW OVERVIEW
ANNEX 4: EURO1080 PRODUCTIONS
HD1 - SPORTS
• A1GP World Cup of Motorsport (2007, 2008) – 8 races
• Christmas Jumping, Mechelen (2007)
• European Championship Curling, Germany (2007) -15 games
• European Championship Handball, Germany (2007) – 40 games
• Flanders Volley Gala, Sint-Niklaas (2007) – 40 games
• Kasparov Chess Tournament, Lint ( November 2007)
• Pan American Games, Rio de Janeiro (2007) – 306 games
• Opening Ceremony
• Women: 93 games + 13 events
o Volleyball – 20 games
o Handball – 20 games
o Football – 6 games
o Beach Volleyball - 27 games
o Basketball – 20 games
o Rythmic Gymnastic – 7 events
o Judo – 4 events
o Gymnastics – 2 events
• Men: 109 games + 35 events
o Taekwando – 7 events
o Swimming ( men & women) – 11 events
o Volleyball – 20 games
o Handball – 20 games
o Futsal – 20 games
o Football – 6 games
o Boxing – 13 events
o Beach Volleyball - 23 games
o Basketball – 20 games
o Judo – 4 events
• Men & Women: 56 events
o Athletics, All disciplines – 43 events
o Equestrian – 5 events
o Cycling – 8 events
• Documentary - The Making of the Pan American Games
• Race of Champions, Wembley Stadium London, (2007)
• The Nations Cup, Wembley Stadium London (2007)
• Scheldecross, Antwerp (2007)
- Scheldecross Men
- Scheldecross Women
• World Championship Women's Handball, France (2007) – 20 games
• World Touring Car Championships (2007) – 9 races
HD1 – LIFESTYLE
• Paris-pret-a-porter (2007) – 29 episodes
HD1 - SPECIALS
• The Captain: Joao Havelange
• The Captain: Jacque Rogge
• “A day at Waregem Koerse”
• “Mercedes in Brussels”
• “The Sportscom report”
• “Flamengo Football Club”
EXQI - CLASSICAL CONCERTS & OPERA
1. Boys Choir Libera, Church of St. Peter, Leiden (2007)
2. Flemish Radio Choir: “First Snow” (Antwerp, 2007)
3. Gergiev Peace Orchestra (Rotterdam, 2007)
4. The Rake’s Progress (Brussels 2007)
5. Jaap Van Zweden conducts Berlioz with The Royal Flemish Philharmonic (Antwerp, 2007)
6. European Music Festival for Young People (April 2007)
7. Magdalena Kozena and the Venice Baroque Orchestra (Brussels, 2007)
• Antonio Vivaldi:
o Concerto for violin, strings en continuo
o Concerto for 2 celli, strings en continuo
• Georg Friedrich Händel: “With darkness”
o “O had I Jubal’s lyre”
o “Scherza infida in grembo al drudo”
o “Cara speme”
o “Ah mio cor”
o “Dopo notte”
8. Mozart Da Ponte Trilogy (2007)
• Le Nozze di Figaro
• Don Giovanni
• Cosi fan tutte
9. New Year’s Concert of the Vienna Philharmoniker (Vienna, 2007)
10. Plankenkoorts Chamber Music Concerts (Belgium, 2007)
• Arriaga Quartet play American Quartet by Antonin Dvorak
• Hans Ryckelynck plays Suite en forme de Sonate by Joseph Jongen
• I Solisti del Vento play suite in bes, opus 4 by Richard Strauss
• Kryptos Quartet plays Voces Intimae by Jean Sibelius
• Levente Kende plays Franz Liszt’s and Bela Bartok’s Sonata
• Luc Devos plays Carnaval by Robert Schumann
• Luc Tooten and Stéphane de May play Sonata for cello by Frédéric Chopin
• Nicolas Callot plays Fantasy Pieces in opus 116 by Johannes Brahms
• Trio Vanoosthuyze, Kugel and Samoshko plays Schumann and Mozart
11. Queen Elisabeth Music Competition for Piano 2007 (Brussels, June 2007)
12. The Royal Flemish Philharmonic Concert Series: Tschaikovsky + Grieg (Eurocam Media Center, 2007)
• Tchaikovsky’s Swan Lake
• Tchaikovsky’s Nutcracker
• Grieg’s Peer Gynt
13. Schönberg’s Gurrelieder 2x Versions Concert and Graphic (Amsterdam, 2007)
14. The Royal Flemish Philharmonic Christmas Concert (Antwerp, 2007)
15. Postcards - Films on every country in the EU
16. Documentary on Peter De Caluwe General Manager La Monnaie Royal Opera House (Brussels & Amsterdam, 2007)
17. Concert 50th Anniversary of Treaty of Rome (Brussels, 2007)
18. Amigo Ayer y Hoy Intimate concerts (Brussels, 2007)
• Series one:
o Charbel Rouhana (Lebanon)
o Javier Conde (Spain)
o Palmo Venneri (Italy)
o Joaquin Achucarro (Spain)
o Katia Guerreiro (Portugal)
• Series two:
o Andrea Griminelli (Flute) with the Cremona String Quartet
o Simon Trpcesky (Piano)
o Aldo Granato (accordion)
o Kathleen McCall & Mario Augustini
o Conde Trio (Guitar)
o Golden Apple Quartet
EXQI - DE VERBEELDING Daily Cultural Magazine Show 139 reports
Abdij van Park - Admiral Freebee – Albertinamanuscripten - Aldo Granato - Andrea Griminelli - Anna – Aranis - Aryn Kyle - Aubertin: orgelbouwer - Ayat Ayed - Bart Moeyaert: olek schoot een beer - Beiaardschool Mechelen - Billy King: Tine Reymer - Blauwbaard: Vitalski – Boccherini – Boombal - B'Rock - Bronzen hartBrosens & Woodworth - Brussel Vlaams – Cavalia – caveman - Chinees paviljoen + jap toren – Chocolatier - Circus Ronaldo, Picolino - Cornelis Uwamungu – Coudenberg - Cultuurmarkt Antwerpen 2007 - Dance Brugge - De nachten - De nachten 2007: Stijn Vranken - Delphine Boël - Dirk Denoyelle - Dirk Van Esbroek - Dora janssen – Draaiorgels - Eddy Wally – Eroticon - Esmé Bos - Fado: Katia Guerreiro – Fixkes - Flanders Fields - Fred Bervoets - Freddy De Vadder - Gabriel Rios - Geert Hoste – Genealogie - Gerechtshof Gent - Gevangenis van Tongeren – Gislain - Grand Hornu (Le Mac's) – Handschoene - Hans De Booij - Hayet Hayad - Herman Selleslags - Herman Van Veen - Huis van Alijn - Ivo Niehe - Jan De Maerschalk - Jan Hoet, Cadeaux d'amis - Jef Neve Trio – Jenevermuseum - Jo De Caluwe - Joaquin Achucarro - Johan Tahon - Jukebox 2000 – Kelten - Kristien Hemmerechts – Kuikens – Laïs - Le Nozze Di Figaro - Liebrecht Van Bekkevoort - Liefde / Zijn Handen - Lieven Debrauwer - Living Roots - Luka Bloom - Lulu Wang - Marc de Bel – Markoupolos – Mercator - Michiel Henderix – Middelheim – Mijnwerkers - Mio Fratello – Mira - Modeshow academie Gent – Monteverdi - Museum voor Natuurwetenschappen – Muzikantendag - Nigel Williams - Nine finger - Onze Europageschiedenis - Orquesta Tanguedia - Paella en flamenco - Palmo Venneri (Hotel Amigo) - Paul Mennes - Paul Michiels: Crosstalk - Paul van Vliet - Peter de Caluwe – poesjenellen - Preview Jorgen Missotten – Prookjes – Ridderverdriet - Romeinse dodencultus - Ronde van Vlaanderen – Rubens – Schaakgeschiedenis - Sint Baafsrestauratie - Sint Michielskathedraal - Soul Project – Speelkaartenmuseum – Spinvis – Stekskes – Stijn - Stijn en de Sterren - Stijn Helsen - Stijn Helsen (EXQI Expo) – textielrestauratie - The Dubliners - Tokyo Ambassade - Tokyo Feest - Tour de Geuze - Tweeluiken-Vlaamse primitieven - Uitreiking museumprijs - Vandoren: rietjes - Vitrine Gent - Vlaamse Primitieven en exotisme – Volksorkest – Vorstenjuwelen - Warre Borgmans - Willem Elsschot - Willem Vermandere - Wim Delvoye - Wim Opbrouck – Youssef - Zita Swoon - Zjef Vanuytsel - Zogezegd in Gent – Zwijnen
EXQI - VOETSPOOR Two weekly: a day in the life of a cultural personality (2007)
• Jan De Smet
• Jan Verheyen
• Willem Vermandere
EXQI - POP & SPECIALS
• Jean Michel Jarre, Oxygène, 3D HDTV recording (Eurocam Media Center, 2007)
• Téo & Téa showcase, cinecast (Eurocam Media Center, 2007)
• MTV Music Awards (Munich, 2007)
• World Music Awards 2007 (Monte Carlo)
• Yasmine, Pop concert
