DGAP-News: First half-year of 2008: Highlight Group remains on profitable course for succes

Highlight Communications AG / Half Year Results

21.08.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
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  - Earnings from operating activities up 16.7% to CHF 26.5 million

  - Net consolidated earnings up 39.4% to a record CHF 19.1 million

  - Earnings per share increased to CHF 0.38/EUR 0.24 (previous year: CHF
    0.27/ EUR 0.16)

First half-year of 2008: Highlight Group remains on profitable course for
succes

Pratteln, August 21, 2008: In the second quarter of 2008, the Highlight
Group maintained its positive momentum, building upon the solid results in
the first three months. Earnings from operating activities rose to CHF 26.5
million, up 16.7% as against the previous year (CHF 22.7 million). This
increase is attributable to a higher operating result in the Film
segment,coming in at CHF 12.5 million versus CHF 5.0 million for the
previous year’s period. This development reflects the much better
performance of the theatrical distribution business area combined with
stable home entertainment earnings.

Net consolidated earnings were up a solid 39.4% versus the first half-year
of 2007 (CHF 13.7 million) to a record CHF 19.1 million. As a result, the
Highlight shareholders’ share of earnings improved from CHF 12.4 million in
the previous year to a current CHF 17.0 million. This is
equivalent to earnings per share of CHF 0.38/EUR 0.24, up CHF 0.11/EUR 0.08
versus 2007.

Highlight Group generated revenues of CHF 236.3 million in the first half
of 2008, 4.1% below the previous year’s figure (CHF 246.3 million). This
decline reflects lower service income of CHF 114.8 million versus CHF 154.4
million for the prior-year period. Service income includes revenues from
the Sports and Event Marketing segment on the one hand, and from the
marketing of TV service productions on the other.

Sales were slightly higher at CHF 56.1 million versus CHF 54.2 million last
year, representing to a large extent home entertainment revenues. License
income was strong, up 73.2% from CHF 37.7 million to CHF 65.3 million,
consisting mainly of theatrical distribution and TV exploitation revenues,
which were up considerably year-on-year in the first half of 2008.

As at June 30, 2008,the Highlight Group held cash and cash equivalents
totaling CHF 200.5 million, unchanged versus year-end 2007. Liabilities
subject to interest and loans have been paid down in the meanwhile since
December 31, 2007, now lower by CHF 43.5 million at CHF 273.5 million. Net
debt fell accordingly from CHF 116.5 million to CHF 73.0 million at the end
of the first half of 2008.

Consolidated equity (including minority interests) as at June 30, 2008
increased slightly by CHF 0.5 million to CHF 83.5 million (December 31,
2007: CHF 83.0 million), due mainly to net consolidated earnings for the
period. This results in a calculated equity ratio of 13.3% (December 31,
2007: 12.0%). Netting cash and cash equivalents against liabilities subject
to interest and film assets against advance payments received yields an
adjusted equity ratio of 26.6% (December 31, 2007: 22.4%).

In view of the very good business development to date and furthermore
positive prospects for the second half-year, the Highlight Group is
reiterating the full-year guidance for fiscal year 2008 for consolidated
revenues of CHF 480 to CHF 500 million and earnings per share of EUR 0.38
to EUR 0.40.

The interim report as at June 30, 2008 is available for download
from www.highlight-communications.ch as of today.



HIGHLIGHT COMMUNICATIONS AG
Investor Relations
4133 Pratteln BL / Switzerland
Phone 0041 61 816 96 91
e-mail ir@hlcom.ch


DGAP 21.08.2008 
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Language:     English
Issuer:       Highlight Communications AG
              Netzibodenstrasse 23b
              4133 Pratteln
              Schweiz
Phone:        +41 61 816 96 96
Fax:          +41 61 816 67 67
E-mail:       info@hlcom.ch
Internet:     www.hlcom.ch
ISIN:         CH0006539198
WKN:          920299
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service
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