FL Entertainment: Q1 2023 results
*Press Release*
*Paris – **30 **May** 2023*
*First quarter** 202**3** results*
*SOLID **GROUP* *FINANCIAL PERFORMANCE*
*DOUBLE-DIGIT REVENUE GROWTH IN **ONLINE SPORTS BETTING & GAMING*
*RETURN TO NORMAL SEASONALITY*
*IN CONTENT PRODUCTION & DISTRIBUTION** AS EXPECTED*
*SUCCESSFUL REFINANCING OF **BANIJAY BRING**ING** FURTHER** FINANCIAL FLEXIBILITY*
*Q1 **202**3** HIGHLIGHTS*
· *R**evenue *up +1.1%^1 to €900m
· Content production & distribution: -3.1% reflecting the return to normal seasonality after post-Covid catch-up in Content production in Q1 2022
· Online sports betting & gaming: +14.5% revenue growth due to significant increase in Unique Active Players, partially offset by unfavorable football results in February 2023
· *Adjusted EBITDA*^*2* stable at €145m in Q1 2023, resulting in an EBITDA margin of 16.1%
· *Adjusted net **income*^2 up +5.3% to €70m versus Q1 2022, *net income* at €8.4m (Q1 2022: €42.0m) mainly driven by non-cash expenses related to changes in financial instruments
· *A**djusted free cash flow conversion*^2*of* *83**%*
· *N**et financial **debt* of €2,084m at 31 March 2023; stable leverage^3 ratio of 3.1x compared to 31 December 2022 and strong liquidity position of €452m
· *S**uccessful refinan**cing* *of **Banijay** debt** (**~€875m**)* with 3-year extension of maturity and *~€200m* of new financing
· *Continued **M&A strategy**:* bolt-on M&A of leading Brazilian content studio A Fábrica
· *2023 guidance and** mid-term objectives** confirmed*
*François Riahi, CEO of FL Entertainment, said:*
“FL Entertainment enjoyed a positive start to 2023, with solid financial results and strong business momentum.
Our Online sports betting & gaming business continued to perform well, carried by the increase in Unique Active Players secured during the 2022 FIFA World Cup, which resulted in double-digit revenue growth across all activities. On the Content production & distribution side, we registered a strong Distribution performance while content production activity normalized compared to the elevated post-covid catch-up effect seen in Q1 2022. We continued to nurture our future growth by strengthening our collaboration with major streaming platforms as they recognize our unrivalled multi-format, geographic and language capabilities, notably when it comes to non-scripted formats well suited to the current macroeconomic climate.
During the quarter, we also reinforced our financial strength and flexibility by refinancing the business and issuing new debt – securing support from high-quality institutional lenders.
We are well positioned to build on our leadership positions, continue to seize M&A opportunities in structurally growing markets and deliver continued profitable growth in 2023 and beyond.”
*****
FL Entertainment invites you to its Q1 2023 results conference call on:
*T**uesday**, **30 **Ma**y** 2023, at 6:00pm CET*
*Webcast live:*
You can watch the presentation on the following link:
https://edge.media-server.com/mmc/p/gi7xwjvd
*Dial-in access telephone numbers:*
You need to register to the following link:
https://register.vevent.com/register/BIdddbadef07194aa78d47410acc6b597a
Slides related to Q1 2023 results are available on the Group’s website, in the “Investor relations” section:
https://www.flentertainment.com/
*KEY FINANCIALS **IN* *Q1 **202**3*
*€m* *Q1 2022* *Q1 2023* *% change* *% constant currency*
*Group revenue* *890.4* *900.2* *1.1%* *1.6%*
Adjusted EBITDA 144.8 144.6 -0.1%
Adjusted EBITDA margin 16.3% 16.1%
Net income 39.6 8.4 -78.7%
Adjusted net income* 66.7 70.2 5.3%
*Adjusted free cash-flow* *118.7* *119.4* *0.6%* * *
Free cash flow conversion rate 82% 83%
For the twelve-month period ended *31 December 2022* *31 March 2023* *% change*
* * * * * * * *
Net financial debt (reported) 2 091 2 084 -0.3%
*Net financial debt / Adjusted EBITDA* *3.1x* *3.1x* * * * *
* Refer to the Appendix for definition
Q1 2022 figures are adjusted to include holding costs of -€2.4m for comparison purposes.*Q1* *2023 **AND POST Q1* *202**3** – KEY **EVENTS*
*A **Fábrica**: Bolt**-on in Brazil*
FL Entertainment has a proven ability to execute and create value through bolt-on acquisitions, with a focus on broadening the Group’s offer and profitable businesses with leadership positions in structurally growing international markets that offer consolidation opportunities.
In that context, Banijay has acquired a majority stake in leading Brazilian studio A Fábrica based in Rio de Janeiro. It is behind many of the nation’s top scripted series and films and its content can currently be found on major networks and platforms such as Netflix, Amazon Prime Video, Turner, HBO Max, Globo, Globoplay, Canal GNT and Multishow.
*Successful refinancing of Banijay’s Term Loan**s** B due March 2025*
On 6 April 2023, Banijay successfully completed the refinancing of its two Term Loans B (TLB) in Euros and in US Dollars for an amount equivalent to ~€875m (including a €453m tranche and US$460m tranche), resulting in a three-year extension of their maturities until March 2028. The transaction was over-subscribed by two times and placed with high-quality institutional lenders.
Banijay raised an additional TLB financing in Euros and in US Dollars to strengthen its balance sheet and finance its future growth for a total amount equivalent to €200m, which splits into €102m and $110m.
The Term Loans B carry a floating interest at EURIBOR +450 bps for the Euro-denominated tranche, and at SOFR +375 bps for the US Dollar-denominated tranche, both of which benefit from the existing hedges until March 2025. The additional amounts and the extended maturities are also hedged against floating interest rate risks.
In total, Banijay has refinanced and raised an amount close to €1,100m. In parallel, Banijay extended the maturity of its €170m RCF by 3 years to September 2027 at EURIBOR + 3.75%^4.
*OUTLOOK - **DELIVERING** CONTINUED PROFITABLE GROWH IN 2023 AND BEYOND*
With a solid Q1 2023 performance, FL Entertainment is on track to deliver continued profitable growth in 2023 and beyond, thanks to the positive momentum experienced across both businesses.
Content production & distribution performance is expected to benefit from strengthened activity with streaming platforms. In Online sports betting & gaming, the focus remains on driving growth and retaining the high level of Unique Active Players gained in the last year.
Leveraging its strategy and know-how, FL Entertainment will continue to focus on operational excellence while actively pursuing and seizing growth opportunities.
In this context, the Group re-confirms all its financial objectives, both in the short and medium term.
*PROFIT & LOSS – Q1 2023*
Q1 2022 figures are adjusted to include holding costs of -€2.4m for comparison purposes.
*In € million* *Q1 2022* *Q1 2023* *% change*
*Revenue* *890.4* *900.2* *1.1%*
External expenses (467.2) (488.9) 4.7%
Personnel expenses excluding LTIP & employment-related earn-out & option expenses (274.2) (260.9) -4.8%
Other operating income (loss) excl. restructuring costs & other non-recurring items (4.1) (5.8) 41.0%
Depreciation and amortization expenses related to D&A fiction (0.1) 0.0
*Adjusted EBITDA* *144.8* *144.6* *-0.1%*
Adjusted EBITDA margin 16.3% 16.1%
Restructuring costs and other non-recurring items (3.3) (5.7)
LTIP & employment-related earn-out and option expenses (22.4) (30.8)
Depreciation and amortization (excl. D&A fiction) (26.7) (28.8)
*Operating profit/(loss)* *92.4* *79.3* *-14.2%*
Cost of net debt (36.1) (34.3) * *
Other finance income/(costs) (1.3) (25.3)
*Net financial income/(expense)* *(37.4)* *(59.5)* *-65.0%*
Share of net income from associates & joint ventures (1.2) (0.9)
*Earnings before provision for income taxes* *53.8* *18.8* *-65.0%*
Income tax expenses (14.2) (10.4)
*Profit/(loss) from continuing operations* *39.6* *8.4*
*Net income/(loss) for the period* *39.6* *8.4* *-78.7%*
*Attributable to:*
Non-controlling interests 23.3 3.8
Shareholders 16.3 4.6
Restructuring costs and other non-recurring items 3.3 5.7
LTIP & employment-related earn-out and option expenses 22.4 30.8
Other financial income 1.3 25.3
*Adjusted net income* *66.7* *70.2* *5.3%**CONSOLIDATED REVENUE** IN Q1 2023*
In Q1 2023, Group revenue increased by +1.6% at constant currency to €900.2m and by +1.1% in absolute terms. This represents a strong performance given the impact of post-Covid catch-up in Content production & distribution in Q1 2022. This is reflected as follows by business:
*€m* *Q1 2022* *Q1 2023* *% change* *% constant currency* * *
Production 586.4 553.0 -5.7%
Distribution 57.1 67.9 18.9%
Other 34.0 35.5 4.5%
*Content production & distribution* *677.5* *656.4* *-3.1%* *-2.5%*
Sportsbook 175.0 194.8 11.3%
Casino 23.3 30.6 31.6%
Poker 12.3 15.2 23.8%
Other 2.4 3.1 32.8%
*Online sports betting & gaming* *212.9* *243.8* *14.5%* *1**4**.**6**%*
*TOTAL REVENUE* *890.4* *900.2* *1.1%* *1.6%*
*Content **p**roduction **& d**istribution:*
Revenue totaled €656.4m, down -3.1% in absolute terms and -2.5% at constant currency in Q1 2023 compared to Q1 2022.
Activity remained solid driven by a continued comprehensive and well-adapted offering with firm demand from both linear TV and streaming platforms for key non-scripted and scripted content.
*Content production* revenue was down -5.7% to €553m in Q1 2023, reflecting a return to normal seasonality compared to Q1 2022, where higher activity reflected the catch-up effect after the Covid period.
The Group delivered a number of successful returning and new shows, with firm demand from global and local streaming platforms. These included non-scripted show “LoL” on Amazon in France and premium scripted series “Lidia Poët” on Netflix. For linear TV broadcasters, non-scripted content such as “Starstruck” or “Young Masterchef” were commissioned in the UK; in Northern Europe, production included “Celebrity Island” in Denmark and the “Write Offs” in Germany.
*C**ontent** d**istribution* revenue increased by +18.9% to €68m, reflecting a strong demand from both linear TV and streaming platforms for key non-scripted and scripted content. The first quarter was marked by delivery of new scripted series such as “Stonehouse” and premium factual series “Wild Isles” (narrated by David Attenborough). Banijay also relaunched local format adaptations of superbrand IP including Big Brother in Argentina and Survivor in Colombia, which have not been on air for several years.
Overall, the number of content hours at the end of March 2023 increased further by +4% compared to December 2022 to ~167,000 hours, following 8,000 additional hours acquired through Beyond in December 2022.*Online s**ports betting **& **gaming:*
Revenue grew by a solid +14.5% to €244m on a reported basis^5 in Q1 2023 compared to Q1 2022 (+14.6% at constant currency) with a high level of New Unique Active Players (up +55%) and total Unique Active Players (up +42%), driven by the positive impact of the 2022 FIFA World Cup and the successful cross-selling strategies on the other products, namely casino, poker and horse racing.
All divisions recorded double-digit growth: revenue rose by +11.3% in sportsbook in Q1 2023, online casino by +31.6%, and online poker by +23.8%, with all lines benefitting from gamification and constant product improvement.
At constant exchange rates and excluding Bet-at-home operations discontinued in certain jurisdictions, revenue was up +15% in Q1 2023, driven by the solid continued performance of Betclic entity (+16%). Bet-at-home recorded stable revenue (-0.7% over the quarter). On 1 February 2023, Bet-at-home group rolled out its new betting and gaming platform, which is expected to benefit all countries from Q2 2023 onwards.
As part of its commitment towards responsible gaming standards, the proportion of revenue generated in locally regulated markets increased to 98.4% in Q1 2023 revenue (compared to 96.5% in Q1 2022), partly due to the increase of Bet-at-home in regulated markets.
*ADJUSTED EBITDA** IN Q1 2023*
*Adjusted** EBITDA*^*6* amounted to €144.6m in Q1 2023, stable compared to Q1 2022, reflecting the Group’s good performance despite the offsetting effect of the return of normal seasonality in Content production & distribution in Q1 2023 and unfavorable football results, notably in countries where taxes are paid on stakes placed.
*Adjusted EBITDA (**€**m)* *Q1 2022* *Q1 2023* *% change*
Content production & distribution 89.0 84.2 -5.4%
Online sports betting & gaming 58.2 62.8 8.0%
Holding (2.4) (2.4)
*Adjusted EBITDA* *144.8* *144.6* *-0.1%*
Content production & distribution 13.1% 12.8%
Online sports betting & gaming 27.3% 25.8%
*Adjusted EBITDA margin* *16.3%* *16.1%* * *
At a Group level, external expenses rose by +4.7% to €488.9m reflecting higher betting taxes for Online sports betting & gaming. The -4.8% decrease in personnel expenses (excluding LTIP and employment-related earn-out & option expenses) to €260.9m related to the flexible cost structure of Content production & distribution.*FROM ADJUSTED EBITDA TO ADJUSTED NET INCOME*
*Restructuring and other non-recurring items*: -€5.7m in Q1 2023 compared to -€3.3m in Q1 2022.
*LTIP **&** employment-related earn-out and option expenses**:* -€30.8m (-€22.4m in Q1 2022) reflecting the vesting of the incentive plan.
*Net financial result*
Net financial result amounted to -€59.5m in Q1 2023 compared to -€37.4m in Q1 2022. Of this amount:
· *Cost** of net debt* totaled -€34.3m in Q1 2023 compared to -€36.1m in Q1 2022, attributable to decrease in interest charges related to Betclic loan issued in December 2021 and reimbursed in July 2022.· *Other financial income and expenses* amounted to -€25.3m in Q1 2023, compared to -€1.3m in Q1 2022, mainly explained by the change in fair value of the Put/Earn-out debt, hedging instruments and foreign exchange losses.
*Income tax expenses*
The tax charge amounted to -€10.4m in Q1 2023 compared to -€14.2m in Q1 2022.
*Adjusted net income*
As a result of the above, Adjusted net income rose by +5.3% to €70.2m in Q1 2023 compared to €66.7m in Q1 2022.
*FREE CASH FLOW AND NET FINANCIAL DEBT **IN **Q1 **202**3*
Adjusted free cash flow (after lease payments) reached €119m in Q1 2023, stable compared to Q1 2022, driven by the business performance as well as disciplined control of cash expenses and capital expenditures.
The change in working capital in Q1 2023 is due to the come back of a normal seasonality for Content production & distribution, following high show deliveries in Q1 2022.
Adjusted free cash flow conversion after capex and leases payment amounted to 83%.
The rise in income taxes paid was mainly attributable to advanced tax payment on higher 2022 performance.
Adjusted operating free cash flow stood at €68m in Q1 2023.
*€m* *Q1 2022* *Q1 2023* *% change*
*Adjusted EBITDA* *144.8* *144.6 * *-1.8%*
Capex (14.8) (13.7)
Disposals of property, plant & equipment & intangible assets 0.2
Total cash outflows for leases that are not recognised as rental expenses (11.3) (11.6)
*Adjusted **f**ree* *cash flow* *1**18.7* *119.4 * *0.6**%*
* *
Change in working capital* (17.2) (44.0)
Income tax paid (2.3) (7.9)
*Adjusted operating free cash flow* *99.1* *67.**4* *-3**1**.**9%*
*Excludes LTIP paid and exceptional items cash-out
The Group’s Net financial debt remained stable at €2,084m as of 31 March 2023 compared to €2,091m as of 31 December 2022.
Change in net financial debt came mainly from an increase in Adjusted free cash flow of +€67m, partly offset by LTIP paid & exceptional items for €13m, net acquisitions for €10m and €34m interests recognized during Q1 2023.
The financial leverage ratio remained stable at 3.1x as of 31 March 2023, compared to 31 December 2022.
*Agenda*
H1 2023 results: 2 August 2023
General Shareholders’ Meeting: 15 June 2023
*Investor Relations*
Caroline Cohen – Phone: +33 1 44 95 23 34 – c.cohen@flentertainment.com
*Press Relations*
flentertainment@brunswickgroup.com
Hugues Boëton – Phone: +33 6 79 99 27 15
Nicolas Grange – Phone: +33 6 29 56 20 19
*About **FL Entertainment*
Founded by Stéphane Courbit, a 30-year entertainment industry pioneer and entrepreneur,
FL Entertainment Group is a global leader in multimedia content and gaming, combining the strengths of Banijay, the world’s largest independent producer distributor, with Betclic Everest Group, the fastest-growing online sports betting platform in Europe. In 2022, FL Entertainment recorded through Banijay and Betclic Everest Group, a combined revenue, and Adjusted EBITDA, of €4,047m and €670m respectively.
FL Entertainment listed on Euronext Amsterdam in July 2022.
ISIN: NL0015000X07 - Bloomberg: FLE NA - Reuters: FLE.AS
*Forward-looking statements*
This communication contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
*Forward Looking Statements*
Some statements in this press release may be considered “forward-looking statements”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industry in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only express views as at the date of this press release and are neither predictions nor guarantees of possible future events or circumstances.
We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law.
*Alternative performance measures*
The financial information in this release includes non-IFRS financial measures and ratios (e.g. non-IFRS metrics, such as adjusted EBITDA) that are not recognized as measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the business and operations and, have therefore not been audited or reviewed. Furthermore, they may not be indicative of the historical operating results, nor are they meant to be predictive of future results. These non-IFRS measures are presented because they are considered important supplementary measurements of FL Entertainment N.V.'s (the "Company") performance, and we believe that these and similar measures are widely used in the industry in which the Company operates as a way to evaluate a company’s operating performance and liquidity. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis. As a result, these measures and ratios may not be comparable to measures used by other companies under the same or similar names.*Regulated information related to this press release is available on the website:*
https://www.flentertainment.com/results-center/
https://www.flentertainment.com/
*APPENDI**X*
*Glossary*
*Transaction*: business combination with Pegasus Entrepreneurial Acquisition Company Europe B.V., a special purpose acquisition company to become a listed company on Euronext Amsterdam as well as the Group’s reorganization
*Adjusted EBITDA*: for a period is defined as the operating profit for that period excluding restructuring costs and other non-core items, costs associated with the long-term incentive plan within the Group (the "LTIP") and employment related earn-out and option expenses, and depreciation and amortization (excluding D&A fiction). D&A fiction are costs related to the amortization of fiction production, which the Group considers to be operating costs. As a result of the D&A fiction, the depreciation and amortization line item in the Group's combined statement of income deviates from the depreciation and amortization costs in this line item.
*Adjusted net income:* defined as net income (loss) adjusted for restructuring costs and other non-core items, costs associated with the LTIP and employment related earn-out and option expenses and other financial income.
*Adjusted free cash flow*: defined as Adjusted EBITDA adjusted for purchase and disposal of property plant and equipment and of intangible assets and cash outflows for leases that are not recognized as rental expenses.
*Adjusted **o**perating free cash flow:* defined as adjusted EBITDA adjusted for purchase and disposal of property plant and equipment and of intangible assets, cash outflows for leases that are not recognized as rental expenses, change in working capital requirements, and income tax paid.
*Net financial debt:* defined as the sum of bonds, bank borrowings, bank overdrafts, vendor loans, accrued interests on bonds and bank borrowings minus cash and cash equivalents, trade receivables on providers, cash in trusts, plus players liabilities and escrow accounts plus (or minus) the fair value of net derivatives liabilities (or assets) for that period. Net financial debt is pre-IFRS 16.
*Leverage:* Adjusted net financial debt / Adjusted EBITDA.
*Number of Unique Active Players:* average number of unique players playing at least once a month in a defined period.
*Table 1: **Content **production **&** distribution**: **Key indicators*
*Key indicators - In €m* *Q1 2022* *Q1 2023* *% change*
Production 586.4 553.0 -5.7%
Distribution 57.1 67.9 18.9%
Other 34.0 35.5 4.5%
*REVENUE* *677.5* *656.4* *-3.1%*
*Adjusted EBITDA* *89.0 * *84.2 * *-5.4%*
Adjusted EBITDA margin (%) 13.1% 12.8%
Capex (12.4) (11.6)
Total cash outflows for leases that are not recognised as rental expenses (10.4) (10.7)
*Adjusted **f**ree-cash flow* *66.2 * *61.9 * *-6.5%*
Change in WC (20.6) (40.5)
Income tax paid (1.8) (4.9)
*Adjusted **o**perating free cash flow* *43.9 * *16.5 * *-62.4%*
*Table 2: Online sports betting & gaming: Key indicators*
*Key indicators - €m* *Q1 2022* *Q1 2023* *% change*
Sportsbook 175.0 194.8 11.3%
Casino 23.3 30.6 31.6%
Poker 12.3 15.2 23.8%
Other 2.4 3.1 32.8%
*REVENUE* *212.9 * *243.8 * *14.5%*
*Adjusted EBITDA* *58.2 * *62.8 * *8.0%*
Adjusted EBITDA margin (%) 27.3% 25.8%
Capex (2.4) (2.0)
Total cash outflows for leases that are not recognised as rental expenses (0.9) (1.0)
*Adjusted free* *cash flow* *54.8 * *59.9 * *9.2%* * *
Change in WC 3.1 0.8
Income tax paid (0.6) (3.0)
*Adjusted **o**perating free cash flow* *57.3 * *57.7 * *0.6%*
*Excluding LTIP payment and exceptional items*Table 3: **C**onsolidated statement of cash flows*
*In € million* *31 March 2022* *31 March 2023*
Profit/(loss) 42.0 8.4
*Adjustments:* *95.8 * *131.6 *
Share of profit/(loss) of associates and joint ventures 1.2 0.9
Amortization, depreciation, impairment losses and provisions, net of reversals 26.9 27.9
Employee benefits LTIP & employment-related earn-out and option expenses 22.4 30.8
Change in fair value of financial instruments (3.2) 16.0
Income tax expenses 14.2 10.4
Other adjustments ^(1) (2.3) 9.4
Cost of financial debt and current accounts 36.7 36.1
*Gross cash provided by operating activities* *137.8 * *140.0 *
Changes in working capital (19.6) (52.8)
Income tax paid (2.3) (7.9)
*Net cash flows provided by operating activities* *115.9 * *79.2 *
Purchase of property, plant and equipment and intangible assets (14.8) (13.7)
Purchases of consolidated companies, net of acquired cash (17.6) (3.0)
Increase in financial assets (1.8) (6.4)
Disposals of property, plant and equipment and intangible assets 0.2
Proceeds from sales of consolidated companies, after divested cash 0.9 0.1
Decrease in financial assets 0.5 1.8
Dividends received 0.2 0.1
*Net cash provided by/(used for) investing activities* *(32.6)* *(21.0)*
Change in capital (0.0)
Dividends paid by consolidated companies to their non-controlling interests (1.0) (4.1)
Proceeds from borrowings and other financial liabilities 1.6 3.3
Repayment of borrowings and other financial liabilities (15.1) (25.3)
Other cash items related to financial activities 0.2
Interest paid (48.2) (49.8)
*Net cash flows from/(used in) financing activities* *(62.7)* *(75.7)*
Impact of changes in foreign exchange rates 4.5 (11.0)
*Net increase/(decrease) of cash and cash equivalents* *25.0 * *(28.5)* * *
Net cash and cash equivalents at the beginning of the period *432.4 * *479.4 *
Net cash and cash equivalents at the end of the period *457.5 * *450.9 *
(1) Other adjustments include notably unrealized foreign exchange gains on disposal and liquidation of subsidiaries
*Table 4: **C**onsolidated** balance sheet*
*In € million* *31 December 2022* *31 March 2023*
*ASSETS* * *
Goodwill 2 570.2 2 595.0
Intangible assets 194.8 201.6
Right-of-use assets 160.8 163.3
Property, plant and equipment 59.2 60.6
Investments in associates and joint ventures 14.0 13.7
Non-current financial assets 161.7 124.2
Other non-current assets 35.9 28.4
Deferred tax assets 51.9 53.4
*Non-current assets * *3 248.6* *3 240.2* * *
Inventories and work in progress 705.2 736.5
Trade receivables 496.5 532.4
Other current assets 288.3 283.7
Current financial assets 24.7 18.9
Cash and cash equivalents 479.4 452.1
*Current assets * *1 994.0* *2 023.7*
*TOTAL ASSETS* *5 242.6* *5 263.8*
*EQUITY AND LIABILITIES* * *
Share capital 8.0 8.0
Share premiums 91.7 2.3
Net income/(loss) - attributable to shareholders (88.0) 4.6
*Shareholders' equity* *11.7* *14.8*
Non-controlling interests 6.3 10.6
*Total equity* *18.0* *25.4* * *
Other securities 130.5 130.5
Long-term borrowings and other financial liabilities 2 290.3 2 309.8
Long-term lease liabilities 131.2 135.0
Non-current provisions 27.7 30.8
Other non-current liabilities 441.3 476.7
Deferred tax liabilities 7.4 10.0
*Non-current liabilities * *3 028.4* *3 0**92**.**6* * *
Short-term borrowings and bank overdrafts 349.4 287.4
Short-term lease liabilities 40.4 40.0
Trade payables 663.6 651.9
Current provisions 23.0 15.2
Customer contract liabilities 693.3 741.9
Other current liabilities 426.5 409.5
*Current liabilities * *2 196.2* *2 151.3*
*TOTAL EQUITY AND LIABILITIES* *5 242.6* *5 263.8*
*Table 5: **IFRS consolidated net financial debt*
*In € million* *31 December 2022* *31 March 2023*
Bonds 1 330.8 1 324.3
Bank borrowings 1 140.0 1 119.0
Bank overdrafts 0.0 1.4
Accrued interests on bonds and bank borrowings 29.6 12.9
Vendor loans 138.4 139.6
*Total bank indebtedness* *2 638.9* *2 597.1*
Cash and cash equivalents (479.4) (452.1)
Trade receivables on providers (13.1) (13.7)
Players' liabilities 50.6 45.9
Cash in trusts (31.6) (32.5)
*Net cash and cash equivalents* *(473.6)* *(452.4)* * *
*Net debt before intercompany loan and derivatives effects* *2 165.3* *2 144.7* * *
*Net debt before derivatives effects* *2 165.3* *2 144.7*
Derivatives - liabilities - -
Derivatives - assets (74.5) (60.8)
*Net debt* *2 090.8 * *2 084.0 *
*Table **6**:** Cash flow statement*
* * *31 March 2023*
*In € million* Content production & distribution Online sports betting & gaming Holding *Total Group*
Net cash flow from operating activities 25.4 60.6 (6.7) *79.**2*
Cash flow (used in)/from investing activities (18.2) (2.8) - *(21.0)*
Cash flow (used in)/from financing activities (123.8) (23.0) 71.0 *(75.7)*
Other (11.0) - - *(11.0)*
*Net increase/(decrease) in cash and cash equivalents* *(127.6)* *34.9 * *64.3 * *(28.**5**)*
Cash and cash equivalents as of 1 January 396.8 72.1 10.5 479.4
Cash and cash equivalents as of 30 September 269.2 106.9 74.8 450.9
* * *31 March 2022*
*In € million* Content production & distribution Sports Betting & Online Gaming Holding *Total Group*
Net cash flow from operating activities 54.9 60.7 0.3 *115.9 *
Cash flow (used in)/from investing activities (30.1) (2.5) 0.0 *(32.6)*
Cash flow (used in)/from financing activities (59.3) (3.4) - *(62.7)*
Other 4.5 - - *4.5 *
*Net increase/(decrease) in cash and cash equivalents* *(30.1)* *54.8 * *0.3 * *25.0 *
Cash and cash equivalents as of 1 January 343.1 87.9 1.5 432.4
Cash and cash equivalents as of 30 September 313.0 142.7 1.8 457.5
*Table **7**: **Content production & distribution: **N**et financial debt as **of** 3**1* *March 2023*
*At Banijay level**:*
*In €* *million* *31**-**Dec**-**202**2* *31** March 2023*
*Total Secured Debt (OM definition)* *1 847* *1* *820*
Other debt 339 325
SUN 409 402
*Total Debt* *2 595* *2 548*
Net Cash (396) (300)
*Total net financial debt (excl. **e**arn-out** & PUT)* *2 199 * *2 248*
EO & PUT 124 130
*Total net financial debt (incl**.* *e**arn-out** & PUT)* *2 3**23* *2 3**78*
*Ratios at Banijay level:*
Leverage ratio 4.46 4.54
Adjusted Leverage ratio 4.71 4.81
Senior secured net leverage ratio 3.20 3.34
*Banijay contribution at FL Entertainment level**:*
*In €* *million* *31**-**Dec**-**202**2* *31** March 2023* * *
*Total net financial debt (excl. **e**arn-out** & PUT)* *2 199* *2 248*
Transaction costs amortization (39) (36)
Lease debt (IFRS 16) (160) (163)
*Total **N**et financial debt at FL Entertainment level* *1 999* *2 048*
Derivatives *(69)* (56)
*Total **N**et financial debt at FL Entertainment level* *1 930* *1 992*
*Leverage ratio: *total Net financial debt / (Adj EBITDA + shareholder fees + proforma impact from acquisitions)
*Adjusted leverage ratio:* total Net financial debt including earn-out and PUTS / (Adjusted EBITDA + shareholder fees + proforma impact from acquisitions)
*Senior secured net leverage ratio*: total Senior Secure Notes + earn-out – Cash / (Adjusted EBITDA + shareholder fees + proforma impact from acquisitions)
--------------------
1 +1.6% at constant currency
2 Adjusted EBITDA, Adjusted net income and Adjusted free cash flow conversion: figures in Q1 2022 are adjusted to include holding costs of -€2.4m for comparison purposes.
3 Leverage calculated on Net debt pre-IFRS 16 / Adjusted EBITDAFor definition, refer to the Appendix
4 Euribor + 3.75% for base currency and SOFR / SONIA + 4.00% USD/GBP additional facility margin
5 Including the discontinued Bet-at-home activities
6 Figures in Q1 2022 are adjusted to take into account holding costs of -€2.4m for comparison purposes
*Attachment*
· FL Entertainment_PR_Q1 2023 Results