Today Pantaflix announced its FY18 results, reporting a 25% increase in sales to €35.1m and a decrease in EBITDA from €17.5m to €2.9m. EBIT was down as well, at negative €9.0m versus positive €2.2m in the previous year, in line with the company’s revised forecast.
The company highlights it was able to significantly increase its sales despite a shift in revenue recognition for its two film projects. The growth was driven by Pantaflix’ film production division that set a new production record for film and series content in 2018. In contrast, the scale-up in the video-on-demand division has not yet progressed at the intended pace, according to Pantaflix.
Pantaflix will release 4 films in FY19 and plans to further expand its digital strategy as it hopes to benefit from a dynamically growing Video on Demand (VoD) market. For 2019, Pantaflix anticipates a slight increase in sales and a significant improvement of EBIT, despite possible shifts in sales and increased expenses, for marketing, sales and technology.
Nicolas Paalzow, Pantaflix’ CEO, commented that ‘We have set ourselves ambitious goals, but we were not yet able to achieve them all in 2018. However, we have set the course for a successful 2019 financial year. These include our production pipeline, which is filled to record levels, as well as the expansion of our platform strategy to include subscriptions and advertising-financed video-on-demand, with which we are opening up two additional high-revenue markets’.