Good 2017 for PARKEN Sport & Entertainment
PARKEN Sport & Entertainment have announced the annual accounts for 2017, and overall it was very satisfactory.
The Group's revenue in 2017 was DKK 1,282.9 million, which is approximately DKK 38.0 million higher than expected. The Group's pre-tax profit amounted to DKK 61.5 million, which is slightly better than the latest announcement for 2017.
F.C. Copenhagen and Stadium
In the early spring, F.C. Copenhagen reached the last-32 stage of the UEFA Europa League, where the club lost against AFC Ajax, and later in the spring, the team won both the DBU Cup and the Danish championship. Just like 2017, F.C. Copenhagen reached the same stage of the Europa League this year too!
In 2017, the stadium had a number of concerts including Rolling Stones, Robbie Williams and Guns ’N’ Roses, while the Danish national team also played their crucial World Cup qualifiers in Telia Parken. Segment results in F.C. Copenhagen & Stadium was DKK 52.4 million in 2017.
Lalandia
In total there was 1.33 million overnight stays at Lalandia holiday homes in 2017, which is in line with the number in 2016. Lalandia consolidated its position as a market leader in holiday and activity centres with a significant proportion of all nights at holiday and activity centres in Denmark. In 2017, segment profit in Lalandia amounted to DKK 91.1 million.
Fitness dk
As a consequence of the implementation of the recovery plan, the result was adversely affected by a number of non-recurring costs for closing of centres, provision for future leases relating to closed centres and impairment of receivables. This gives an unsatisfactory 2017 result, but at the same time a better platform for future operations. The segment result was -60.2 million. The average number of members in 2017 was 117,000.
Office properties
Office properties developed positively in 2017, and a positive value adjustment of DKK 19.3 million has been made, based on a change in the average return requirement. In 2016, value adjustments were not made to the investment properties. The total segment profit in 2017 in office properties was DKK 58.9 million.
Bo Rygaard, Chairman of the Board, comments:
"Overall, 2017 was a very satisfying year for PARKEN Sport & Entertainment, where we met many of the expectations we had for the year. Looking at the various segments in the group, FCK performed very well on the pitch, both by winning the double again and with good international results.
“Despite the challenges the team met in the autumn, the year will be seen as one of the best in the club's history.
“We are very pleased with the development in Lalandia, which maintained its strong position and again delivered a good result. For office buildings, 2017 was also a good year with a good progress, while at Telia Parken we had a number of strong events with, among others, the Rolling Stones concert and the Danish national team qualifying for the World Cup.
“In relation to fitness dk, we have taken active choices to make fitness dk stronger in the future, and of course it has an impact on the result, but we think it will have the desired effect. We look forward to an exciting and challenging 2018 where we in Parken Sport and Entertainment will do our best to develop the Group.
“Some of the main focus areas will be on ensuring F.C. Copenhagen qualify for the Europa League, develop new Lalandia centres and continue the recovery of fitness dk.”
A dividend of DKK 2.50 per set is set. share, corresponding to a total dividend payment of DKK 24.7 million in 2018. At the Annual General Meeting in 2017, a dividend of DKK 10.00 per share was approved.
Summary
The Group's revenue in 2017 was DKK 1,282.9 million, which is approximately DKK 38.0 million higher than expected. The Group's pre-tax profit amounted to DKK 61.5 million, which is slightly better than the latest announcement for 2017 and a decrease of DKK 59.2 million compared to 2016.
The change in profit before taxes can be attributed to a number of contradictory factors.
• In 2016, F.C. Copenhagen competed in the UEFA Champions League and in 2017, the team participated in the economically less attractive UEFA Europa League.
• Profit from sale of contractual rights increased more in 2017 than in 2016.
• In 2017, a positive value adjustment of investment properties was made of DKK 19.3 million. In 2016, value adjustments were not made.
• In 2016, special items amounted to DKK 120.0 million, related to impairment of goodwill associated with fitness dk. Special items in 2017 amounted to DKK 14.2 million and can be attributed to fines and costs incurred in the course manipulation case.
Expectation for 2018
For the year 2018, the Board of Directors and the Group Executive Board expect revenue for the Group of DKK 1,250 to 1,275 million and a profit before tax of DKK 35-50 million. This includes a prerequisite for F.C. Copenhagen’s participation in group games in the UEFA Europa League.