WARNER BROS. ENTERTAINMENT FRANCE : revenue, balance sheet and financial ratios

In 2024, WARNER BROS. ENTERTAINMENT FRANCE achieves revenue of 261.3 M€. Activity remains stable over the period (CAGR: -4.4%). Significant drop of -11% vs 2023. After deducting consumption (18.8 M€), gross margin stands at 242.5 M€, i.e. a rate of 93%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 160.0 M€, representing 61.2% of revenue. Warning negative scissor effect: despite revenue change (-11%), EBITDA varies by -16%, reducing margin by 3.3 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 5.7 M€, i.e. 2.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 0%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 58%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Cash flow represents 3.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 111.56. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.4x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 133 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 79 days. The gap of 54 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 10 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 112 days of revenue, i.e. 81.0 M€ to permanently finance. Notable WCR improvement over the period (-47%), freeing up cash.

Based on 88 transactions of similar company sales (all years), the value of WARNER BROS. ENTERTAINMENT FRANCE is estimated at 141 694 053 € (range 64 613 070€ - 363 711 078€). With an EBITDA of 160 001 174€, the sector multiple of 1.4x is applied. The price/revenue ratio is 0.32x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.