AD-HOC: SPORTTOTAL Budget for 2019 sees sales growing to EUR 60 to 70 million and EBIT from EUR -4 to +0.5 million
- Provisional EBIT for 2018 at the lower end of the range: EUR -8.0 million
- Provisional sales for 2018 at EUR 37.6 m
- Sales and EBIT from major infrastructure project to be reflected in 2019
- sporttotal.tv will push global expansion as early as 2019
- Growth of digital business to be funded by debt capitalCologne, 14 February 2019 SPORTTOTAL AG is budgeting sales growth of at least EUR 22.4 m to of EUR 60 to 70 m in the 2019 financial year and EBIT in a range between EUR -4 to +0.5 m. The Management Board of SPORTTOTAL AG passed this budget today. For the 2018 financial year, the company is reporting provisional sales of EUR 37.6 m (forecast dated 21 June 2018: EUR 42 to 56 m) and provisional EBIT of EUR -8.0 m (forecast: EUR -3 to -8.2 m). It should be borne in mind here that the work already completed in the 2018 financial year on a major infrastructure project with a volume in the mid-single digit million euro range will not be reflected in sales and earnings until the 2019 financial year.
Due to the expected positive growth in its Venues business, the Management Board decided today to accept a short-term, negative EBIT effect in the single digit million euro range in its digital business for 2019 and 2020 in order to accelerate its international expansion in this field. From 2021, the company is expecting significantly positive contributions to earnings from this Division. The Management Board sees the funding of this expansion as secured through a “Reserved Alternative Investment Fund” (“RAIF”). The Luxemburg Group Fuchs intends to set up this RAIF and pool investor capital in several tranches in order to make it available to SPORTTOTAL precisely when needed. This means that sporttotal.tv will be able to fund the international growth of its digital business without increasing its capital. The capital increase just completed with gross proceeds from the issue of EUR 3.08 m will serve to fund investments in companies such as the Virtual Sponsoring Exchange (VISPEX), an online marketplace for sports rights, as well as to fund the Group’s working capital, including in particular the advance funding of race track projects in the “Venues” Division.
BSK Becker+Schreiner Kommunikation GmbH
Tobias M. Weitzel
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