Highlight Group publishes results for fiscal year 2025 – Operational strength and positive free cash flow trend – impairment charges at the Sport1 level (non-cash)

PRESS RELEASE

Highlight Group publishes results for fiscal year 2025 – Operational strength and positive free cash flow trend – impairment charges at the Sport1 level (non-cash)

• Consolidated sales increased by 2.0% to CHF 412.1 million in the reporting year (previous year: CHF 404.1 million).
• EBIT amounted to CHF -131.8 million due to one-time non-cash impairment charges and extraordinary operating expenses.
• Management continues to consistently implement the measures adopted to improve profitability and liquidity.
• 3.9% decrease in financial liabilities and a 29.9% improvement in liquidity
• Operating Performance: Adjusted earnings underscore the solid fundamentals of the core business
• Positive outlook: A clear upward trend in free cash flow over the past few months

Pratteln, April 30, 2026 – The Highlight Group generates solid consolidated sales in 2025.

Group development in fiscal 2025

• From the Group’s perspective, business development in 2025 was generally. At CHF 412.1 million, consolidated revenue was 2.0% higher than the previous year’s figure of CHF 404.1 million due to production-related factors.

• During the reporting period, the Group was able to further increase its liquidity while simultaneously reducing its financial liabilities. This has strengthened the company’s financial foundation in the long term.

• Due to production-related factors, the Film segment generated higher external sales than in the previous year, while the Sport und Event segment reported lower external sales.

• EBIT was CHF –131.8 million due to impairments in the Sports and Event segment and extraordinary operating expenses, after CHF –6.4 million in 2024.

• With the share of results attributable to Highlight’s shareholders at CHF –135.8 million, compared with CHF –27.7 million in the previous year, earnings per share decreased from
  CHF –0.49 in the previous year to CHF –2.39.

Focus on Liquidity and Free cash flow

• The company was able to sustainably optimize its capital structure in fiscal year 2025. Liquidity increased significantly by 29.9%, while financial liabilities were reduced by 3.9%.

• The trend over the past few months is particularly encouraging: The Group has recorded a consistently positive development in free cash flow. This is the direct result of consistently implemented efficiency programs, cost reductions at all levels, and optimized cash management, which sustainably secures the Group’s financial flexibility for the future.

One-time items weigh on reported earnings

• The reported operating profit (EBIT) of CHF -131.8 million (previous year: CHF -6.4 million) is primarily driven by strategic, non-cash impairment charges in the Sports and Event segment, as well as special items. As a result of these accounting adjustments, equity amounted to CHF -3.3 million as of the reporting date.

Development of the operating segments in 2025

Film segment

• In the period from January to December 2025, production began on a total of seven own and co-productions. Filming began on “Steckerlfischfiasko”, the tenth film adaptation of the Eberhofer series to date; the comedy “Der perfekte Urlaub” directed by Bora Dağtekin, a sequel to the box office hit “Das perfekte Geheimnis”; and a new “Resident Evil” film directed by Zach Cregger.

The Constantin Film Group released a total of seventeen films in German movie theaters in 2025, including “Das Kanu des Manitu”, the highest-grossing and most-watched film of 2025.
The market share in the home entertainment segment remained stable year on year at 4% thanks to a balanced portfolio and a strong focus on German productions. In the free-TV segment, particularly the initial licenses for “Hagen”, “Manta Manta – Zwoter Teil”, and “Sonne und Beton” (all RTL) and for “Caveman” (ProSiebenSat.1) had a significant impact on revenue. 

• Revenue in the Film segment rose by 23.5% to CHF 310.4 million in the reporting year (previous year: CHF 251.4 million). Other segment income, which is largely influenced by capitalized film productions, fell by 12.3% to CHF 126.8 million (previous year: CHF 144.6 million). At the same time, segment expenses increased by 11.8% overall to CHF 433.0 million (previous year: CHF 387.2 million). At CHF 5.3 million, segment earnings were 44.6% below the previous year’s level (previous year: CHF 9.5 million).

Sports and Event segment

• In 2025, the TEAM Group focused on supporting UEFA in concluding the first final of the 2024/25 to 2026/27 commercial cycle.
• Highlight Event AG concluded the 2025 fiscal year on a successful note. Sales, management and contract implementation activities in the sponsorship area (Eurovision Song Contest and Vienna Philharmonic Orchestra) as well as general consulting activities and media sales (Vienna Philharmonic Orchestra only) proceeded very positively.
• External revenue in the Sports and Event segment amounted to CHF 101.7 million, down 33.4% on the previous year (CHF 152.7 million). Segment expenses rose by 42.0% from CHF 168.3 million to CHF 239.0 million due to non-recurring special effects, while other income increased slightly from CHF 4.8 million to CHF 5.6 million.

Outlook for fiscal 2026

Management continues to treat the implementation of the measures adopted to strengthen the balance sheet and further increase profitability as a top priority. The positive trends in free cash flow and liquidity confirm that the Highlight Group is on the right track.

Inflation, rising energy prices, continued subdued consumer spending, and the current political crises are leading to increased planning uncertainty for the 2026 fiscal year. In addition, the media and entertainment industry in Germany is under pressure due to AI-generated content and stagnating budgets. The Board of Directors cannot rule out the possibility that this may affect the Highlight Group’s operational activities.

As in the previous year, the Board of Directors is monitoring the current situation and regularly reviews the measures taken. At present, at least nine new releases are scheduled for the 2026 theatrical season. Highlights include the in-house productions “Der perfekte Urlaub” by director and screenwriter Bora Dağtekin—the sequel to the 2019 blockbuster “Das perfekte Geheimnis”—as well as “Steckerlfischfiasko,” now the tenth installment in the popular Eberhofer series. In the Sports and Event segment, the focus is on fulfilling all contracts and a strategic realignment of TEAM AG.

The Annual General Meeting for fiscal 2025 is scheduled to take place in June 2026.

The 2025 Annual Report (in German and English) and the 2025 Sustainability Report are available on the company’s website at www.highlight-communications.ch as of today.