EuropaCorp: Revenue Down 17%, Net Loss Halved
EuropaCorp released its annual results on June 24 for the fiscal year ending March 31, 2026, showing a major contrast: consolidated revenue fell by 17% to €26.1M, while operating income improved to (€0.3M) from (€3.4M) a year earlier, and the operating margin jumped to 34% from 14% the previous year. This improvement is based on a dramatic reduction in depreciation expenses, reflecting the group's film release schedule and the absence of major new productions to amortize. The net loss was halved, changing the perceived trajectory of the independent studio.
Declining Revenue, but Strengthened Operations
Total revenue stood at €26.1M, down €5.5M from €31.6M in the 2024/2025 fiscal year. Behind this overall decline, there is a clear redistribution of revenue sources. International sales, historically the main driver, plummeted to €11.7M (representing 45% of revenue) from €22.0M a year earlier, a decline of 47%. This gap is largely due to the final deliveries of the film Dracula to international distributors, generating less revenue than in previous years, while the U.S. rights for this film (released in February 2026, earning $13M at the box office) will be primarily recognized in 2026/2027. In contrast, television and SVOD revenues soared: these revenues reached €12.1M, representing 46% of total revenue, up from €5.2M a year earlier, an increase of 130%. This surge resulted from the opening of broadcasting windows for several catalog titles (Taxi, Transporter, Lucy, Bis), mainly driven by the French market. The Video & VOD and Series segments remain modest (respectively €1.1M and €0.1M), while other activities, including exploitation rights and co-productions, slightly declined to €1.2M.
Operating Margin Soars, Driven by Lower Amortization
Beyond revenue, it is the cost structure that reveals the group's turning point. The operating margin (before general expenses) climbed to 34%, from 14% a year earlier, driven by a €9.9M reduction in sales costs. This improvement primarily stems from a dramatic decrease in film amortization: it amounted to €10.0M compared to €21.4M in 2024/2025, a decrease of 53%. The previous fiscal year had recorded a high amortization charge due to the integration and initial amortization of Dracula and Weekend in Taipei, two major films in the portfolio. Dracula, released in France on July 30, 2025, with over 650,000 admissions, has since significantly reduced its initial amortization charge. Meanwhile, general expenses remained controlled at €8.5M, up only €0.1M year-on-year, reflecting the continuation of cost-cutting measures undertaken by the group. The operating result stood at (€0.3M), compared to (€3.4M) in 2024/2025, an improvement of €3.1M. Net, after accounting for an unfavorable exchange rate impact of (€1.8M) related to the revaluation of dollar accounts, the net loss decreased to (€2.0M) from (€4.9M), representing a reduction of 59%.
Positive Cash Flow and Active Pipeline Around Father Joe
In terms of cash flow, EuropaCorp exhibits a defensive but operational profile. The net operating cash flow remains positive at €12.0M (compared to €20.6M in 2024/2025), while film investments absorbed €17.3M, notably allocated to Father Joe (a film in post-production written by Luc Besson and directed by Barthélemy Grossmann, starring Kiefer Sutherland and Al Pacino) and to Dracula. After repaying the fifth installment of the Safeguard Plan (€10.6M), the change in cash flow was negative at (€19M), bringing liquidity down to €21.0M. Net debt increased by €6.0M, reaching €33.9M, due to the combined effect of the mismatch between operational flows and film investments (€4.0M) and a negative exchange rate impact on foreign currency accounts (€2.0M). The group continues its strategy based on three pillars: monetizing the catalog of iconic franchises, developing international productions, and structuring strategic European co-productions. About fifteen film and series projects are in active development.
