Beyond International flags earnings uplift as production returns

The producer and distributor of shows like Pooch Perfect has seen a jump in earnings despite COVID-19 disrupting production of its shows.

Pooch Perfect host Rebel Wilson with judges Amber Lewin and Colin Taylor, and 'co-host' Russell the Brussel. PIcture: Supplied

Media production and distribution company Beyond International has flagged a significant uptick in earnings for the first half of the financial year, despite COVID-19 production delays in Australia and the US.

Beyond, which produces and distributes shows like Pooch Perfect, MythBusters, Deadly Women and Love it or List it, said it expected earnings before interest, tax, depreciation and amortisation to be in the range of $3m-$3.5m in the six months to December, more than double last year’s result of $1.3m.

Earnings before interest and tax are expected to be between $800,000-$1m, compared to a loss of $1m before impairments in the prior corresponding period.

The Dublin-based company said its earnings were supported by the JobKeeper scheme, which it continued to be eligible for throughout the period.

A 5 to 20 per cent salary cut for all employees was partially rolled back, with half of the amount clawed back restored.

Earnings were adversely affected by realised and unrealised foreign exchange losses of $800,000.

Last year the company reported a full-year net loss of $6,066,000.

Beyond said all divisions showed improvement with the exceptions of copyright and digital marketing.

The production division excluding copyright is expected to see an $800,000 boost in earnings, despite temporary delays to its flagship productions.

“Production on these shows were able to commence after lockdowns ended by ensuring that each production was certified as being Covid safe,” the company said.

Alternatively, copyright is expected to fall by $800,000 “due to the receipt of music royalties in the period to 31 December 2019 that did not occur in the six months to 31 December 2020.”

Sales of internally produced programming like MythBusters remained roughly equitable to the prior comparable period.

The April 2020 acquisition of TCB Media from Kew Media has strengthened the distribution division, which is expected to contribute earnings of $2.7m, despite restructuring costs of $600,000.

Earlier in the year Beyond also acquired the remaining 50.98 per cent of production company 7 Beyond that it did not own from Seven West Media and 100 per cent of Seven West Studios in the UK.

The digital marketing division was affected by the COVID-19 lockdowns in Australia, New Zealand and Victoria as a number of clients operate in the travel industry.

“Work from these clients has remained on hold during the six months to 31 December 2020,” the company said.

“The difficulties in arranging face-to-face meetings with clients due to lockdowns and social distancing requirements has also led to a slowdown in pitching for new work.”

The division is expected to report an operating loss of $400,000, against a loss of $200,000 in the prior year.

The home entertainment division, which distributes DVDs and digital media, “was effectively closed at June 30 2020”.

However, key licences were negotiated to logistics partner Regency Media and the division is expected to report a “small profit” compared to a loss of $200,000 the prior year.

Beyond International said it could not provide guidance on net profit after tax “due to the complex and multi-jurisdictional nature of the Group’s businesses in determining income tax expense for the year.”

Guidance for the second half of the financial year was not provided due to the ongoing COVID-19 pandemic.

Shares in Beyond International closed at $0.50, down 2 per cent.