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Wanda Sports Group’s (WSG) total annual first-quarter revenues fell by 26 per cent to €163.7 million (US$180.3 million), primarily due to heavy losses within the company’s spectator sports and mass participation divisions.
According to the China-based firm’s latest financial filing, Wanda’s comparative yearly spectator revenues fell by 28 per cent to €139.8 million (US$154 million) for the three months ending 31st March.
Attributed to the cyclicality effect, records show that the men’s 2020 EHF European handball championship held in January this year only partially offset a deficit in the income generated during the FIS Alpine World Ski Championships held in February 2019.
Meanwhile, Wanda’s mass participation unit saw its annual revenues fall 78 per cent to €1 million (US$1.1 million) due to the impact of the coronavirus pandemic on its total number of gross-paid athletes.
Whereas the division represented 45,000 paid athletes in Q1 of 2019, there were only 4,000 on the books for the same period this year. Revenues and operating data attributed to Wanda’s pending US$730 million sale of the Ironman triathlon series to the Advance entertainment group were not included in the group’s comparative first-quarter figures.
Despite those losses in revenue, yearly revenues generated by Wanda’s digital, production, sports solutions (DPSS) operations grew by six per cent to €22.9 million (US$25.2 million).
Wanda also recorded an eight per cent increase in yearly profit to €57.8 million (US$63.7 million). However, the group anticipates feeling the full effect of the pandemic by the end of Q2 due to the suspension and cancellation of its major sporting events.
Wanda’s chief executive Hengming Yang said: “In facing the market challenges, we plan to leverage our advanced technology and to concentrate our innovative efforts for expanded and differentiated content and digital solutions to further drive the engagement of our athletes, fans and partners.
“As we see the sport sector gradually re-open after the Covid-19 related lockdowns, we believe we are well-prepared to actively serve our partners and clients across our different markets based on our global diversity, expertise and broad capabilities.”
Brian Liao, Wanda’s chief financial officer, added: “In addition to managing our financial and operating performance, one of our key focuses was on improving our liquidity, in particular in light of the uncertainty prompted by the global pandemic.”
In March, Wanda also signed a US$240 million 364-day term loan facility with the Singapore-based branch of Swiss investment bank Credit Suisse.
Wanda Sports Group’s (WSG) total annual first-quarter revenues fell by 26 per cent to €163.7 million (US$180.3 million), primarily due to heavy losses within the company’s spectator sports and mass participation divisions.
According to the China-based firm’s latest financial filing, Wanda’s comparative yearly spectator revenues fell by 28 per cent to €139.8 million (US$154 million) for the three months ending 31st March.
Attributed to the cyclicality effect, records show that the men’s 2020 EHF European handball championship held in January this year only partially offset a deficit in the income generated during the FIS Alpine World Ski Championships held in February 2019.
Meanwhile, Wanda’s mass participation unit saw its annual revenues fall 78 per cent to €1 million (US$1.1 million) due to the impact of the coronavirus pandemic on its total number of gross-paid athletes.
Whereas the division represented 45,000 paid athletes in Q1 of 2019, there were only 4,000 on the books for the same period this year. Revenues and operating data attributed to Wanda’s pending US$730 million sale of the Ironman triathlon series to the Advance entertainment group were not included in the group’s comparative first-quarter figures.
Despite those losses in revenue, yearly revenues generated by Wanda’s digital, production, sports solutions (DPSS) operations grew by six per cent to €22.9 million (US$25.2 million).
Wanda also recorded an eight per cent increase in yearly profit to €57.8 million (US$63.7 million). However, the group anticipates feeling the full effect of the pandemic by the end of Q2 due to the suspension and cancellation of its major sporting events.
Wanda’s chief executive Hengming Yang said: “In facing the market challenges, we plan to leverage our advanced technology and to concentrate our innovative efforts for expanded and differentiated content and digital solutions to further drive the engagement of our athletes, fans and partners.
“As we see the sport sector gradually re-open after the Covid-19 related lockdowns, we believe we are well-prepared to actively serve our partners and clients across our different markets based on our global diversity, expertise and broad capabilities.”
Brian Liao, Wanda’s chief financial officer, added: “In addition to managing our financial and operating performance, one of our key focuses was on improving our liquidity, in particular in light of the uncertainty prompted by the global pandemic.”
In March, Wanda also signed a US$240 million 364-day term loan facility with the Singapore-based branch of Swiss investment bank Credit Suisse.
