CEO Comment

Dear Colleagues,

2021 was best characterized as a recovery year and, although we continued to operate within the uncertain environment of Covid-19, we made considerable head way across multiple fronts.

Once again, our team engaged in an eclectic range of visual storytelling, with feature films, drama series, entertainment formats, TVCs and print campaigns all visiting our Spanish shores over the course of the year.

This diversity and breadth of work saw our financial performance rebuild with Billings reaching 29.4€ (13.7M€), with revenues at 17.98M€ (7.3M€) and EBITDA at 1.23M€ (-484K€) for the Palma Pictures Media Production Group.

We shot projects throughout Spain, with units enjoying the varied backdrops of locations in areas such as; Mallorca, Barcelona, Cadiz, Madrid, Malaga and Tenerife.

Our staff and freelance crews worked tirelessly to deliver ‘Picture Perfect Service’ to our varied clients and we were happy to bolster our talent base by welcoming Sian Saunders to the team as ‘Head of Photo & Motion’.

Film & TV workflows resumed after the forced hiatus of 2020 and we were delighted to host; Happy Madison / Netflix ‘Hustle’, as well as Leftbank Pictures / Netflix ‘The Crown – Season 5’.

We finished the year with several confirmed projects in the pipeline for early ’22 and with a significant pipeline of work going forwards over the course of the year.

Our entertainment formats enjoyed their best year ever, with ITV Germany’s ‘Love Island – Winter Special’ and the ‘Love Island’ summer show shooting in both Tenerife and Mallorca respectively. The broadcaster also brought ‘My Best Gay Friend’ and ‘Love Story’ to Mallorca over the spring and summer. And we were thrilled to welcome back ITV UK’s ‘Love Island’ after an enforced year long absence due to Covid.

Our dedicated talent agency, continued to gather momentum and had another strong year, with expectations that 2022 will be our best year to date for this business area.

CSR activities continued apace and we passed our environmental audit for the eleventh year running, retaining both our ISO 14001 and EMAS certifications. Other activities included our ongoing support for local charities.

We maintained our annual investment program, albeit at a slower pace, in order to maintain liquidity in the face of uncertain trading environment. However, with 2022 spend scheduled to significantly increase.

We launched our Compliance program, under the leadership of our CFO, Ramon Caravaca and continued to enhance our IT architecture, across locations and casting databases, as well as HR and budgeting software.

Our mainland offices in Barcelona and Madrid serviced some great TVC work for brands such as ‘Doritos’, ‘BP’ and ‘Hyundai’.

‘Palma Pictures Studios’, our UK based production company headed up by our managing partner, Trent Walton, continued to build its inaugural development slate and we were pleased to secure further underlying intellectual properties over the course of the year, moving our active slate into double figures. Now actively hunting commissions we are excited as to what the year ahead holds for us.

We were happy to finally conclude our ERTE (furlough) governmental assistance at the end of the year and proud that we managed to keep our team 100% intact over the challenging Covid years of 2020 and 2021.

Worthy of mention is the solidarity and determination that our team members exhibited over the past tough months and, due to their exceptional spirit and hard work, we have been able to accelerate back to pre-Covid work flows without missing a beat. A testament to the strong company culture we have strived to build over the past years.

So, all in all, a progressive year and one in which we collectively felt that Covid was gradually moving into our rear-view mirror. With abundant new opportunities to create and execute arresting new content firmly on our horizon, we move into 2022 with renewed energy and optimism.

I will look forward to sharing both our challenges and successes in the next edition of our Palma Pictures Annual Report.

 

Mike Day
Palma Pictures CEO