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LaLiga hits 4.479 billion revenue by 20.6%

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According to the latest Financial Report of Spanish professional football, corresponding to the latest complete season (2017/18), LaLiga’s clubs has announced revenue of €4.479 billion, representing growth of 20.6% over the previous season.

This result is the largest positive annual change in recent years and particularly notable given that it occurred following several financial years in which it has been consistently posting double-digit growth rates and in which, furthermore, we are at the midway point of the three-year audiovisual cycle for the national market (and, by extension without coinciding with sudden increases in level or discontinuities).

LaLiga’s gross operating profit (EBITDA) was €945m (+20.7%), operating profit (EBIT) was €325m (+11.4%), and the net profit for the year was €189m (+6.7%).

In short, LaLiga produced a solid, positive and growing set of results across the board, achieving the best figures in the competition’s history.

The 2017/18 season was surprising due to two new drivers of LaLiga’s growth breaking onto the scene: commercial revenue and revenue from transfers, which have seized the central role held by broadcasting revenues as drivers of annual growth.

In the case of commercial revenue (without including turnover from advertising), the annual increase was 34.1%, amounting to turnover of €838m, which is indicative of the fact that Spanish clubs are becoming an increasingly attractive medium for sponsors.

Meanwhile, in the case of revenue from player transfers (i.e. sale price), the annual increase of 104.3% permitted turnover from this item to double in a single year, with an exceptional entry of €1.018bn, which is symptomatic of the significant capacity for creating sporting value held by the Spanish clubs and SADs. That said, the audiovisual turnover received by the clubs managed to surpass the €1.5bn mark for the first time and will recover its central role starting in the 2019/20 season as a result of the new audiovisual cycle negotiated for the national market and the international agreements which have been signed.

It is very important to underline that these results have been achieved at the same time as an

LaLiga achieved all of these figures while simultaneously maintaining a downward trend in the degree of leverage.

The ratio of financial debt to EBITDA of the competition was 0.9x, the lowest level on record.

It is equally important to underscore that LaLiga 1|2|3 is contributing more and more not only to the revenue of LaLiga as a whole, but also to the earnings (all the indicators are in positive territory and show upward trends) and to creation of cash flow and value for the business.

Likewise, the two special groupings that we use for internal financial analysis in the Association, Netted LaLiga and Netted LaLiga Santander, which exclude the two largest clubs, are converging more and more rapidly towards LaLiga and LaLiga Santander as a whole respectively.

In relative terms, some indexes or ratios are even better. This is indicative of a business that is increasingly more fairly distributed and more sustainable in the long term.
The above has led LaLiga to obtain an overall operating profitability index (ROIC) of 12.3% (15.1% adjusted) in the 2017/18 season, six decimal points higher than the previous season and, in any case, substantially better than those of other leading competitions.
Finally, LaLiga earmarks around 2.0% of its turnover for corporate social responsibility projects, an amount which is significantly greater than the majority of companies and industries of a similar nature.
Furthermore, LaLiga’s clubs create a professional football industry which produces an impact on national GDP equivalent to 1.37% and which directly or indirectly employs around 185,000 people (0.98% of average employed population in Spain over the past year).
To this we must also add the over €4 billion which it contributes to the state coffers in the form of taxes.

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Bidvest Bank trading profit rises 3.5% to R6.7bn

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The Commercial bank in the Republic of South Africa trading, distribution and services group Bidvest said recently its trading profit for the year ended June 30 rose 3.5 percent to R6.7 billion despite flat revenue.

Headline earnings per share were up 9.8 percent to 1,352.1 cents and the company said exceptional cost and capital discipline as well as improved margins were highlights against a volatile trading backdrop.

The CEO Bidvest Bank Lindsay Ralphs said, “There has been a strong focus on our clients, on solutions, innovation, wholesaling the right product at the appropriate price point as well as bolt-on acquisitions in the services and office & print divisions, which has culminated in acceptable growth.”

The group declared a final cash dividend of 318 cents per share, bringing the total dividend for the year to 600 cents, up 7.9 percent from last year.

Strong profitability gains were achieved at Adcock Ingram while Comair recognised the successful claim awarded against South African Airways, which increased Bidvest’s share of profits from these associated companies.

Bidvest said its diverse portfolio of businesses and extensive reach allowed it to weather challenging times.

“Our basic-need services and everyday essential product ranges enable us to support and add value to all our stakeholders. Innovation to disrupt ourselves, and the industries in which we operate, remains a core focus alongside disciplined asset management and cost control,” Ralphs added.

 

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Guinness Nigeria Declares N5.5bn Profit, N3.3bn Dividend

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A leading beverage alcohol firm in Nigeria Guinness Nigeria, recently announced a profit after tax (PAT) of N5.483 billion for the year ended June 30, 2019, compared with N6.718 billion. The profit was actualized from a revenue of N131.498 billion as against N142.975 billion in 2018.

Net financing income fell from N3.443 billion to N1.862 billion, while profit before tax (PBT) was N7.103 billion, down from N9.943 billion in 2018. The board of directors has recommended a dividend of N3.329 billion.

Commenting on the result, the Managing Director, Guinness Nigeria Plc, Mr. Baker Magunda, stated that the company would continue to work on all operating indices while expecting that the micro and macroeconomic parameters improve.

Magunda mentioned that: “Revenue for the year declined 8% compared to same period last year on the backdrop of an extremely challenging macroeconomic and competitive environment. The cost of the increase in excise duty at a time of stagnant consumer disposable income had to be absorbed by industry players. Despite the tough competitive landscape, we continue to see good growth performance from Guinness, Spirits and the malt drinks.”

According to him, a combination of factors, inflation plus prior year royalties and accruals not approved by NOTAP, led to a 17 per cent decline in gross profit for the organisation.

Magunda explained that “Marketing spend reduction by 16 per cent and distribution costs initiatives partly mitigated the gross profit decline, thus leading to a fall in operating profit by N4.4 billion. Profit before tax decreased by N2.8 billion as a 46 per cent reduction in net finance costs further helped to cushion the decline in operating profit,”

Also speaking on the performance, Chairman of the company, Mr. Babatunde Savage, said: “As a board, we are confident that our strategy is sound, and that we are making the right investments in the company to ensure our long-term competitiveness. The Board will continue to support the management in its efforts to build a business that aims to consistently deliver growth for stakeholders.”

The company noted that despite the challenges, it continues to fulfill its commitment to stakeholders particularly as it drives its renewable energy and water recovery project for sustainable environment.

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Zenith Bank grows profit to N111.7bn, in H1’19

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Nigeria’s leading financial service Zenith Bank Plc has announced profit before tax (PBT) of N111.7billion and proposed interim dividend of 30 kobo per share for the half-year ended June 2019 (H1’19).

This was disclosed by the bank in its audited financial results for H1’19 released recently which showed improved performance in key financial indicators.

In a statement announcing the results, the bank said: “Gross earnings grew by three percent from ¦ 322.2 billion to ¦ 331.6 billion driven by a significant growth of 24 percent (YoY) in non-interest income from ¦ 88.6 billion in H1 2018 to ¦ 109.7 billion in H1 2019.”

It further said: “In particular, fees from electronic products increased by ¦ 17 billion (168 percent) from ¦ 10 billion in H1 2018 to ¦ 27 billion in H1 2019, demonstrating significant progress in our retail banking initiatives.”

“This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to¦ 111.7 billion reflecting a four percent growth over ¦ 107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by nine percent to ¦ 2.83 in H1 2019 from ¦ 2.60 compared to the prior period.” It added.

 

 

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