– Revenues increased significantly to EUR 42.6 million (2020: EUR 7.8 million)
– EBIT improved to EUR -1.9 million (2020: EUR -7.1 million)
– Production business with strong operational development
– Non-cash impairment of EUR 12.1 million recognized in the individual financial statements of PANTAFLIX AG
– Financial year 2022 sets course for potentially disproportionate revenue growth in 2023
Munich, May 09, 2022. PANTAFLIX AG (GSIN: A12UPJ; ISIN: DE000A12UPJ7) has successfully completed the financial year 2021, according to preliminary and unaudited figures. The Entertainment Group generated revenues of EUR 42.6 million (2020: EUR 7.8 million). The increase results from the fact that significantly more film and series productions were completed in the reporting year than in the previous year. Consolidated earnings before interest and taxes (EBIT) improved to EUR -1.9 million after EUR -7.1 million in the previous year and were thus within the forecast range (EUR -2.5 million to operating break-even).
A significant share of revenues is attributable to the film ARMY OF THIEVES, produced exclusively for Netflix, which took first place in the Netflix charts after being released in more than 90 countries. This success reflects the strength of PANTALEON Films' production business. With the already completed film project OSKARS KLEID as well as DIE GESCHICHTE DER MENSCHHEIT - LEICHT GEKÜRZT, two more cinema projects are about to be released in the current year. The film WOLKE UNTERM DACH is currently in cinema exploitation.
With Yoko Higuchi-Zitzmann, PANTALEON Films has gained an excellently networked producer with a special flair for high-reach film and series material since February 2022. In addition, Stephanie Schettler-Köhler has strengthened the Management Board as COO since August 2021 in order to further advance the successful implementation of the Group's strategy.
As part of a continuous evaluation, PANTAFLIX Technologies was subjected to a revaluation in the reporting year, as the originally planned growth expectations of the VoD platform could not be realized in the corresponding scope and period despite targeted investments in marketing and personnel. For this reason, non-cash impairment losses of EUR 12.1 million were recognized at the subsidiary PANTAFLIX Technologies in the individual financial statements of PANTAFLIX AG. The strategic focus of the PANTAFLIX Group in 2022 and subsequent years will be on the further scaling of existing and new entertainment-centric business areas, with platform technology also playing a key role.
PANTAFLIX Studios was active with high output in 2021. The team around the managing directors Manuel Uhlitzsch and Sebastian Lang realized productions for the streaming service Joyn as well as for Amazon Prime Video in the area of innovative Creator series formats. The creative agency Creative Cosmos 15 (CC15) developed campaigns for the food supplier Flink as well as for the German Disabled Sports Association (DBS) during the reporting period. PantaSounds has been developed into a podcast and audio production unit since the beginning of the financial year 2022 and is already in the middle of an attractive growth segment.
"We are addressing a high-opportunity entertainment market with a broadly diversified, forward-looking business model that draws its strength from the autonomy of our subsidiaries. We bring these together as part of our 360-degree approach, enabling us to cover a large part of the entertainment value chain with our own expertise and talent. We are therefore broadly positioned and utilize synergies to pursue a sustainable growth path," says Nicolas Paalzow, CEO of PANTAFLIX AG.
Outlook 2022 and 2023
The special requirements of accounting in the film and series production business as well as the project business in general and the resulting lower visibility and increased volatility will continue to shape PANTAFLIX's future revenue and earnings development. For PANTAFLIX AG, financial years 2020 and 2021 were notable in both directions in terms of revenues and earnings. For purposes of comparability, the current forecast for 2022 refers to the comparative figures of the pre-Corona financial year 2019. For the financial year 2022, the PANTAFLIX Group expects revenues of at least EUR 22 million according to current projections. The decline in revenues compared to the financial year 2019 (EUR 28.7 million) is mainly due to the production of a series that is already in progress which, however, is not expected to be realized in terms of revenues and earnings until the financial year 2023. As a result, a significant increase in revenues is expected for the financial year 2023 compared to the current financial year.
By refocusing on the strengths of PANTAFLIX AG, the company is placing the potential of its subsidiaries at the center of its strategy. Therefore, PANTAFLIX is adapting its reporting structure and will report the activities of the Group's individual companies in overarching corporate divisions from the financial year 2021 onwards. In this way, PANTAFLIX is ensuring clear responsibilities and greater transparency. Further details will be available with the annual report 2021 on May 31, 2022, at pantaflixgroup.com.
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Photo credit: Martin Kroll / PANTAFLIX AG / 2022