• EBIT improved significantly from CHF 1.6 million to CHF 11.9 million.
• At CHF 4.0 million, the consolidated net profit for the period was well into positive territory after the prior-year figure of CHF -1.8 million.
• Consolidated revenue fell by 25.2% year-on-year to CHF 172.0 million due to COVID-19, mainly in the Film and Sports segments.
• The equity ratio rose to 31.5% as of the end of the first half of 2020 (December 31, 2019: 29.3%).

Group performance leads to clearly positive earnings figures in first half of 2020

• Consolidated revenue fell by 25.2% year-on-year to CHF 172.0 million:
   
  • Revenue in the Film segment declined by CHF 42.9 million to CHF 98.0 million. This was mainly due to the loss of theatrical distribution and service production revenue on account of the COVID-19 pandemic. Moreover, the conventional home entertainment market as a whole remained on a downward trajectory, while digital distribution forms continued to grow in significance.
     
  • The Sports- and Event-Marketing segment reported a slight decline in revenue of CHF 1.7 million to CHF 31.2 million due to currency effects.
     
  • The revenue decline in the Sports segment from CHF 56.4 million to CHF 43.2 million relates in particular to reduced advertising revenue on account of the cancellation of sporting events.
     
• Nonetheless, all the Highlight Group's earnings figures improved significantly:
   
  • The rise in EBIT of CHF 10.3 million to CHF 11.9 million primarily results from improvements in the Film segment, which contributed earnings of CHF 8.8 million in the first half of 2020 after a loss of CHF -2.6 million in the first half of the previous year. This was thanks to lower costs, in particular on account of the suspension/break in movie and TV service productions due to the coronavirus.
     
  • At CHF 4.0 million, the consolidated net profit for the period was significantly higher than the prior-year figure of CHF -1.8 million. The share of earnings attributable to Highlight's shareholders was CHF 4.2 million (previous year: CHF -0.5 million), corresponding to earnings per share of CHF 0.07 (previous year: CHF -0.01).
     
• The Highlight Group also has a sound financial position:
   
  • At CHF 196.8 million, consolidated equity was down by CHF 0.9 million as against the end of 2019, partly as a result of currency effects.
     
  • The equity ratio was 31.5% as of the end of the first half of 2020 (December 31, 2019: 29.3%).

The interim report as of June 30, 2020 is available for download at www.highlight-communications.ch from today.