TMT : TMT BI MONTHLY : upbeat 2018 PF results reported by Banijay.

On a reported basis, FY-18 results published yesterday by Banijay were in line with our expectations on the whole (no consensus available). On a pro forma (PF) basis, the YoY increase in revenue (+4.8%) and EBITDA (+7.6%) wer e particularly upbeat, suggesting that the outlook for 2019 is favourable . Thanks to a tight management of WCR in Q4-18, net debt at 31 December 2018 declined by 11% , the net debt-to-EBITDA ratio improving to 3.3x (from 4.0x in 2017). During the conference call, management did not provide a guidance for the current year, but reiterated its confidence in the group’s capacity to maintain a high EBITDA margin ( 14.4% in 2018 ). Finally, management made no comments regarding its reported interest in Endemol Shine . Our understanding is that talks are at a standstill but that Banijay would return to the negotiating table if the sellers (namely 21st Century Fox and Apollo Global Management ) agreed to lower the asking price.