Financial statements for 2018

PARKEN Sport & Entertainment have released their financial results for 2018.

The year was a special one in several areas for the PARKEN Sport & Entertainment group.

Fitness DK Holding A/S was sold over the summer, and at the end of the year we came closer to new possible Lalandia centres in Motala in Sweden and in Søndervig on the west coast of Jutland, respectively.

Following the divestment of the fitness segment, the Group's segments consist of FC Copenhagen & Stadium, Lalandia and Office properties.

FC Copenhagen and the stadium
In the spring of 2018, FC Copenhagen played in the last-32 of the UEFA Europa League against Atlético de Madrid, and in May the team achieved a fourth-place finish in the Superliga. Through a total of four qualifying rounds in July and August, FC Copenhagen for the 12th time in the past 13 seasons reached the group stage of a European tournament.

In 2018, in addition to FC Copenhagen home games, Telia Parken held four events - a tennis event with Caroline Wozniacki and Venus Williams, the final of the DBU Cup, a big screen event in connection with Denmark's participation at the FIFA World Cup 2018 and a concert with JAY-Z AND BEYONCÉ. Segment result in FC Copenhagen & Stadium in 2018 was at DKK 18.7million.

Lalandia
In total, there were 1.32million. overnight stays in the holiday homes at Lalandia in 2018, which is on a par with 2017. Lalandia consolidated its position as the market leader in holiday and activity centres with a significant proportion of all overnight stays at holiday and activity centres in Denmark. In 2018, segment profit at Lalandia was DKK 85.5million.

Office Properties
The rental rate for the four office properties in Telia Parken was 96 per cent at the end of 2018, and a total of 30,750 m2 was rented out. The total segment result in 2018 in the office properties was DKK 46.2million.

Chairman's opinion
Chairman Bo Rygaard says: “We are satisfied with the development within our continuing activities, all of which are in a positive development. If we look at FC Copenhagen, we succeeded again in qualifying for the group stage in the UEFA Europa League despite a very difficult road, where among other things managed to beat Atalanta. The team is also currently in the forefront of the battle for the Danish title, which is the season's big goal.

"Around the stadium, we have had several successful events of very different natures, while the rental of office properties is going well and is stable.

"We are very pleased with the development at Lalandia, which maintained its strong position as a market leader and again delivered a very satisfactory result, while the future also looks interesting in relation to the new centres in Søndervig and Motola.

"We also chose to sell Fitness DK over the past year, which, as intended, has given us the opportunity to focus on the continuing activities that everyone has a significant development potential, as well as a common 'DNA' within the company."

Yield
A dividend of DKK 2.50 per share recommendation is proposed, corresponding to a total dividend payment of DKK 24.7million in 2019. At the Annual General Meeting in 2018, a dividend of DKK 2.50 per share was adopted.

Summary
The Group's revenue in 2018 was DKK 781.4million, which is as expected.

The Group's profit before tax from continuing operations amounted to DKK 97.4million, and thus slightly better than the latest announcement of DKK 75million to DKK 90million. Compared with 2017, there is a decrease in pre-tax profit of DKK 27.1million.

The change in profit before tax can be attributed to a number of contradictory factors:

  • In 2018, Copenhagen participated in the group stage in the UEFA Europa League. In 2017, FC Copenhagen Danish won the league, the DBU Cup, participated in qualification for the UEFA Champions League group stage, and participated in the group stage of the UEFA Europa League.
  • The result of transfer activities was higher in 2018 than in 2017.
  • In 2018, a value adjustment of the investment properties of DKK +3.5million has been made. (2017: +19.3million).
  • Special items in 2018 amounted to DKK + 0.7million, with DKK -14.2million in 2017 (fine and legal costs in the course manipulation case).

Expectations for 2019

  • For 2019, the Board of Directors and Group Executive Management expect revenue for the Group of DKK 800million to DKK 850million. And a profit before tax of DKK 45million to DKK 60million. This includes a premise on FC Copenhagen's participation in group games in the UEFA Europa League.

Niels-Christian Holmstrøm resigns from the board
Niels-Christian Holmstrøm will resign at the Annual General Meeting on 11 April 2019.

According to PARKEN Sport & Entertainment A/S's articles of association, he is appointed by KB as a member of the board of PARKEN Sport & Entertainment A/S.

KB has instead appointed Gert Petersen as new member of the board of PARKEN Sport & Entertainment A/S with effect from April 11, 2019. Gert Petersen is deputy chairman of KB.