08.12.2016
_wige MEDIA AG DE000A1EMG56
DGAP-News: _wige MEDIA AG builds up new sporttotal.tv business, along with its international project business, and sells _wige BROADCAST and _wige SOLUTIONS
DGAP-News: _wige MEDIA AG / Key word(s): Strategic Company Decision/Disposal
_wige MEDIA AG builds up new sporttotal.tv business, along with its
international project business, and sells _wige BROADCAST and _wige
SOLUTIONS
08.12.2016 / 12:01
The issuer is solely responsible for the content of this announcement.
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_wige MEDIA AG builds up new sporttotal.tv business, along with its
international project business, and sells _wige BROADCAST and _wige
SOLUTIONS
- _wige MEDIA AG receives cash inflow of EUR 1.6 million
- Burden on broadcasting eased by an average EUR 0.6 million from 2017
onward
- _wige releases capital in order to invest in high-margin growth
Cologne, December 8, 2016. In the future, _wige MEDIA AG intends to grow in
the scalable digital business, in the high-margin international project
business, as well as in business with live events. Through a partnership
with the German Football Association (DFB), the company intends to equip
German amateur football clubs with special video technology that enables
games to be transmitted live in a high quality and fully automatically
using the new "sporttotal.tv" platform. The company will therefore sell the
loss-making business with TV production for domestic and international
broadcasters, associations and organisers, as well as the low-margin and
capital-intensive media technology business. Today _wige MEDIA AG signed
the respective agreements. Under these agreements - and as soon as the
conditions precedent customary in the market have been fulfilled - _wige
BROADCAST gmbh (TV production) will be sold to Wolfgang Reeh and the assets
of _wige SOLUTIONS gmbh (media technology) to wige SOLUTIONS GmbH & Co. KG,
a company newly founded by Thomas Riedel together with a partner.
Broadcast and media technology concentrated with top providers in the
market
The purchase price for the sold operations amounts to EUR 4 million in
total, EUR 3.5 million of which for _wige SOLUTIONS gmbh and EUR 0.5
million for _wige BROADCAST gmbh. _wige MEDIA AG is likely to receive EUR
1.6 million in cash from the transaction. At the same time, the workforce
of the _wige Group will decline by 115 staff members to around 215. As from
2017, the disposal of the two sets of operations will generate a
sustainable positive liquidity effect that averages around EUR 1.8 million
a year in investment that is no longer necessary. This will considerably
reduce capital requirements. For instance, in the first half of 2017 alone,
_wige would have had to have invested EUR 1.1 million in the broadcast
segment and media technology. "We can now invest our funds much more
efficiently in promising, high margin segments," stated CEO Peter
Lauterbach. _wige MEDIA AG will continue to operate as general contractor
in TV production while passing the risk of operational losses from the
highly seasonal business to the buyer. "In Thomas Riedel and Wolfgang Reeh,
we are in future concentrating complementary competencies for our major
customers. _wige MEDIA will remain the central contact for the customers,
and Thomas Riedel and Wolfgang Reeh, who have worked successfully in the
media business for decades, guarantee first rate operations," said
Lauterbach.
Group restructuring: non-cash earnings effect
In addition, _wige is likely to raise hidden reserves by EUR 0.8 million in
the context of restructuring. At the same time, one-off non-cash charges of
approx. EUR 3.2 million arise from the disposals. Since only parts of the
major order concerning technical equipment for the racing track
infrastructure projects in Kuwait can be taken into account in 2016,
revenues this year are likely to amount to EUR 63 million and EBT to
EUR-6.5 million. "Restructuring the group has allowed us to completely
reduce the burdens in our accounts while freeing up the company from low-
margin business - a clear break which fully aligns _wige to high-potential
growth areas. In 2017, we anticipate consistently positive earnings with
steady growth," Lauterbach emphasized.
About _wige GROUP
As one of the world's leading marketing and production companies in motor
sport as well as in other areas of sport in Germany, _wige GROUP produces
the Formula1 races, the DTM German Touring Car Masters, the Handball
Champions League, the ADAC Zurich 24-hour Race at the Nürburgring and
German Football League games, as well as organising events and content for
prestigious companies such as Porsche, Audi, Mercedes/AMG, Red Bull, VW and
Deutsche Post AG.
Contact:
Company:
_wige MEDIA AG
Am Coloneum 2
50829 Köln
Germany
www.wige.de
Tel: +49 [0] 221_7 88 77_ 0
Fax: +49 [0] 221_7 88 77_ 199 Email: [email protected]
Investor Relations:
BSK Becker+Schreiner Kommunikation GmbH
Tobias M. Weitzel
Tel.: +49 [0] 2154_ 81 22 16
Email: [email protected]
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08.12.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: _wige MEDIA AG
Am Coloneum 2
50829 Köln
Germany
Phone: +49 (0)221 7 88 77 0
Fax: +49 (0)221 7 88 77 199
E-mail: [email protected]
Internet: www.wige.de
ISIN: DE000A1EMG56
WKN: A1EMG5
Listed: Regulated Market in Frankfurt (General Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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527995 08.12.2016
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