TECHNICOLOR : Technicolor: Strong First Half 2015 Results
(Thomson Reuters ONE) -
Technicolor: Strong First Half 2015 Results
* Adj. EBITDA of ?250 million, up 17.3% YoY
* Net income of ?50 million, up ?21 million YoY
* EPS up 71.8% YoY
* Full year 2015 objectives confirmed
Paris (France), 23 July 2015 - Technicolor (Euronext Paris: TCH; OTCQX: TCLRY)
announces today its results for the first half of 2015.
Frederic Rose, Chief Executive Officer of Technicolor, stated:
"Our first half results put us in good stead to deliver on our full year
guidance, while continuing to focus on the implementation of our Drive 2020
strategic plan. I am particularly proud of the work done by our teams as
evidenced by new customer wins across our businesses in the first half and our
continued innovation in key technologies such as UHD, HDR and virtual reality."
Key points
* Strong performance in Licensing; continuing development of new Technology
business initiatives, and announcement of the royalty rate schedule for the
HEVC Advance patent pool.
* Sustained revenue growth and improved profitability for Production Services;
successful integration of Mr. X and OuiDO, and completion of Mikros Image
acquisition.
* DVD volumes down due to an unfavorable comparison base; improvement in
volume trends expected in the second half, supported by a strong upcoming
slate of major new Theatrical and Games titles.
* Solid performance for Connected Home, with further improvement in overall
product mix in all regions; on track for full year revenue growth and
ongoing material year-on-year improvement in profitability.
* Successful debt repricing transaction; further improved financial
flexibility and reduced borrowing costs.
2015 objectives confirmed
* Adjusted EBITDA between ?560 million and ?590 million;
* Free Cash Flow of at least ?230 million;
* Leverage ratio (Net Debt/Adj. EBITDA) of around 0.75x at end December 2015.
Summary of consolidated results for the first half of 2015 (unaudited)
Key financial indicators
First Half| Change YoY
| | |
In ? million 2014| 2015|Reported|At constant rate
------------------------------------------------+-----+--------+----------------
Group revenues 1,505|1,621| +7.7%| (1.9)%
------------------------------------------------+-----+--------+----------------
Group revenues (excl. legacy activities) 1,495|1,620| +8.4%| (1.3)%
------------------------------------------------+-----+--------+----------------
Adjusted EBITDA 213| 250| +17.3%| +16.8%
| | |
As a % of revenues 14.2%|15.4%| +1.2pt|
------------------------------------------------+-----+--------+----------------
Adjusted EBIT 127| 159| +25.5%| +33.4%
| | |
As a % of revenues 8.4%| 9.8%| +1.4pt|
------------------------------------------------+-----+--------+----------------
EBIT from continuing operations 122| 132| +8.2%| +19.3%
| | |
As a % of revenues 8.1%| 8.1%| +0.0pt|
------------------------------------------------+-----+--------+----------------
Financial result (74)| (44)| +30|
| | |
Share of profit/(loss) from associates 1| 1| +0|
| | |
Income tax (22)| (29)| (7)|
------------------------------------------------+-----+--------+----------------
Profit/(loss) from continuing operations 27| 60| +33|
------------------------------------------------+-----+--------+----------------
Profit (loss) from discontinued operations 0| (12)| (12)|
| | |
Net income 27| 48| +21|
------------------------------------------------+-----+--------+----------------
Net income (Group share) 29| 50| +21|
| | |
EPS (in ?) ?0.09|?0.15| +71.8%|
------------------------------------------------+-----+--------+----------------
Free cash flow 129| 117| (12)|
------------------------------------------------+-----+--------+----------------
Net financial debt at nominal value (non 671| 628| (43)|
IFRS) | | |
| | |
Revenues from continuing operations (excluding legacy activities) reached
?1,620 million in the first half of 2015, up 8.4% at current currency compared
to the first half of 2014. At constant currency, revenues were down 1.3% year-
on-year. A strong increase in Licensing revenues, as a result of higher
contribution of the MPEG LA pool and sustained revenues across other licensing
programs, and double-digit growth across Production Services, led by Visual
Effect ("VFX") and Animation activities, helped to mitigate lower DVD revenues
and a softer performance in Connected Home revenues.
Adjusted EBITDA from continuing operations was ?250 million in the first half of
2015, up 17.3% at current currency compared to the first half of 2014. Adjusted
EBITDA margin amounted to 15.4%, up by 1.2 points year-on-year, driven by
stronger Licensing revenues and improved Production Services performance,
reflecting healthy top-line growth and the exit from low margin Media Services
activities, which offset lower DVD volumes and continued investments in new
Technology business initiatives. Connected Home contribution was almost stable,
despite lower revenues, due to solid execution and better product mix.
In the first half of 2015, Technicolor continued to optimize its cost base and
to generate efficiencies across its businesses as well as at corporate level.
Adjusted EBIT from continuing operations totaled ?159 million in the first half
of 2015, up 25.5% at current currency compared to the first half of 2014, with
margin of 9.8%, up 1.4 point year-over-year, as a result of higher Adjusted
EBITDA, partially offset by increased D&A expenses.
EBIT from continuing operations reached ?132 million in the first half of 2015,
up 8.2% at current currency compared to the first half of 2014, with margin of
8.1%, stable year-on-year, resulting from higher Adjusted EBIT, offset
principally by restructuring costs related to the exit from Media Services
activities.
The Group's financial result totaled ?(44) million in the first half of 2015
compared to ?(74) million in the first half of 2014, reflecting the following:
* Net interest costs amounted to ?27 million in the first half of 2015, a
significant reduction compared to ?39 million in the first half of 2014,
driven by reduced interest rates stemming from the 2014 and 2015 repricing
transactions.
* Other financial charges amounted to ?17 million in the first half of 2015
compared to ?35 million in the first half of 2014.
Group net income was a profit of ?50 million in the first half of 2015, a
significant increase compared to the ?29 million achieved in the first half of
2014.
Statement of financial position and cash position
First Half | Change YoY
| |
In ? million 2014 | 2015 | Reported
-------------------------------------------------------+-------+------------
Operating cash flow from continuing operations 141 | 179 | +38
| |
Group free cash flow 129 | 117 | (12)
-------------------------------------------------------+-------+------------
Nominal gross debt 973* | 1,009 | +36
| |
Cash position 328* | 381 | +53
| |
Net financial debt at nominal value (non IFRS) 645* | 628 | (17)
| |
*As of 31 December 2014.
Operating cash flow from continuing operations, which is defined as the Adjusted
EBITDA less net capital expenditures and restructuring cash out, was
?179 million in the first half of 2015, up by ?38 million year-on-year.
Operating cash flow represented 11% of total revenues, up by 1.7 points year-on-
year, reflecting increased Adjusted EBITDA and a reduction in capital
expenditures, partially offset by slightly higher cash outflow for
restructuring. Capital expenditures totaled ?43 million, down by ?4 million
year-on-year, as the Group continued to carefully manage spending and focus
investments on growth areas, including capacity expansion in Production
Services. Cash outflow for restructuring totaled ?28 million, up by ?2 million
year-on-year, due to ongoing cost optimization actions across the Group's
businesses and at corporate level.
Group free cash flow totaled ?117 million in the first half of 2015, down by
?12 million year-on-year. Cash financial charges amounted to ?41 million, stable
year-over-year, as the positive impact of the repricing transactions on
borrowing costs was offset by an increase in other financial charges. Working
capital variation was positive ?29 million, mainly as a result of a favorable
phasing of Licensing programs and improved working capital in the DVD Services
division. Other cash charges, mainly related to tax and pensions, amounted to
?41 million.
Nominal gross debt amounted to ?1,009 million at end June 2015, an increase of
?36 million compared to ?973 million at end December 2014, after mandatory
senior debt repayments of ?26 million, which were fully offset by a negative
currency impact of ?55 million resulting from the appreciation of the US dollar
against the euro.
The Group's cash position was ?381 million at end June 2015 compared to
?328 million at end December 2014, an increase of ?53 million, due to sustained
free cash flow generation and positive currency impact, partly offset by cash
used for Mikros acquisition, dividend payment and mandatory senior debt
repayment.
Net debt at nominal value amounted to ?628 million at end June 2015 compared to
?645 million at end December 2014, a reduction of ?17 million.
Segment review - H1 2015 result highlights
Technology
H1 2014 | H1 2015 | Change YoY
| | | | |
In ?| As a % of| In ?| As a % of|Reported|At constant
million| revenues| million| revenues| | rate
------------------------+-----------+----------+-----------+--------+-----------
Revenue 216| | 268| | +24.0%| +23.2%
| | | | |
Adjusted 149| 69.0%| 197| 73.8%| +32.6%|
EBITDA | | | | |
| | | | |
Adjusted 141| 65.4%| 187| 70.0%| +32.8%|
EBIT | | | | |
| | | | |
EBIT 140| 65.0%| 188| 70.1%| +33.8%|
| | | | |
Revenues reached ?268 million in the first half of 2015, up 24% at current
currency compared to the first half of 2014. Licensing revenues amounted to
?258 million in the period, up by ?47 million year-on-year, reflecting increased
revenues from the MPEG LA pool and an ongoing solid performance of the Group's
direct licensing programs, in particular for Digital TV, which notably benefited
from the contribution of new contracts signed over the course of the fourth
quarter of 2014.
Adjusted EBITDA amounted to ?197 million in the first half of 2015 compared to
?149 million in the first half of 2014. Adjusted EBITDA margin stood at 73.8%,
up by 4.8 points year-over-year, driven by strong Licensing performance, which
more than offset continued investment in new business initiatives, including in
particular additional costs associated with the development of the Group's
Trademark and Technology Licensing activities, in line with Drive 2020
objectives.
***
Entertainment Services
H1 2014 | H1 2015 | Change YoY
| | | | |
In ?| As a % of| In ?| As a % of|Reported|At constant
million| revenues| million| revenues| | rate
------------------------+-----------+----------+-----------+--------+-----------
Revenue | | 687| | +12.2%| (1.7)%
(excl. 612| | | | |
Legacy) | | | | |
| | | | |
Legacy 10| | 1| | (90.2)%| (91.9)%
| | | | |
Adjusted 71| 11.4%| 64| 9.3%| (10.3)%|
EBITDA | | | | |
| | | | |
Adjusted 17| 2.7%| 1| 0.2%| (93.4)%|
EBIT | | | | |
| | | | |
EBIT 12| 1.9%| (20)| (2.9)%| ns|
| | | | |
Revenues (excluding legacy activities) reached ?687 million in the first half of
2015, up 12.2% at current currency compared to the first half of 2014. This
performance was driven by a positive forex impact and a strong growth of
Production Services revenues, which partially offset lower DVD volumes.
* Production Services revenues increased very strongly in the first half of
2015, driven by continuous double-digit growth across Visual Effects ("VFX")
and Animation activities, and a solid level of activity in Post-production
Services both in Canada and France. During the first half of 2015,
Production Services completed the shutdown of most Media Services activities
and reached an agreement with Deluxe to combine their Digital Cinema
activities, reflecting the Group's decision to focus the business on content
production and post-production services. Excluding the Media Services
activities, Production Services would have recorded an even stronger
performance.
Technicolor continued to grow at record levels in VFX for feature films, with
all facilities working on numerous projects at the same time and secured several
new awards during the first half of 2015. This strong level of activity was
coupled with the accretive integration of Mr. X that achieved a strong
performance during the first half of 2015. VFX for commercials also grew across
facilities. Animation revenues increased significantly during the period,
benefiting from the integration of the French-based production house OuiDO
Productions. Animation is expected to record strong growth in the second half of
2015, in particular with the acquisition of Mikros completed in June 2015, which
benefits from a solid pipeline in feature animation, after completing work on Le
Petit Prince and Mune, Le Gardien de la Lune (Onyx) in the first half of 2015.
Technicolor further confirmed in the first half of 2015 its key contribution
to tentpole movies, providing VFX and Post-production Services on feature films
including The Fantastic Four 3 and Frankenstein (Fox), Terminator Genisys
(Paramount), The Hunger Games: Mocking Jay Part 2 (Lionsgate), Pan (Warner) and
Spectre (Sony). The Group also confirmed its leadership in TV series, with Post-
production teams completing work on approximately 10 different series, and Mr. X
teams completing work on the new seasons of Penny Dreadful (Showtime) and The
Strain (FX), while starting work on the second season of Marco Polo (Netflix).
* DVD Services revenues decreased in the first half of 2015, as a result of a
12% decline in combined Standard Definition and Blu-ray(TM) disc volumes
compared to a strong first half of 2014 that benefited from the significant
success of Disney's Frozen, as well a generally stronger slate of major
studio releases. The impact of the improved 2015 box office, up 6% in the US
in the first half, has not yet benefited replication volumes, as the
majority of 2015 largest releases, including the top-6 grossing movies year-
to-date (all from Technicolor customers) will be replicated in the second
half of the year. In Games, Xbox One volume grew in the first half, but was
more than offset by continued weakening demand for the prior generation of
Xbox platform. This trend is expected to improve in the second half, with
the strong upcoming slate of major new games titles from multiple
publishers, which in combination with the aforementioned theatrical title
impacts, are expected to drive improvements in volume trends in the second
half of the year.
Adjusted EBITDA amounted to ?64 million in the first half of 2015, down
?7 million compared to the first half of 2014, and margin decreased to 9.3%. The
decline in Adjusted EBITDA was primarily due to lower volumes and a negative mix
impact in DVD Services that the strong performance of Production Services, in
particular in the second quarter, has partially offset.
* In Production Services, adjusted EBITDA was better year-on-year, primarily
due to higher sales in VFX and Animation activities. The improvement was
particularly strong in the second quarter with the Group exiting from the
low margin Media Services activity.
* In DVD Services, adjusted EBITDA was down year-over-year in absolute value
as a result of lower volumes. Unfavorable product mix, as well as lower
multi-disc configurations served to also negatively impact profit in the
first half.
***
Connected Home
H1 2014 | H1 2015 | Change YoY
| | | | |
In ?| As a % of| In ?| As a % of|Reported|At constant
million| revenues| million| revenues| | rate
------------------------+-----------+----------+-----------+--------+-----------
Revenue 655| | 652| | (0.5)%| (8.9)%
| | | | |
Adjusted 30| 4.5%| 28| 4.3%| (5.8)%|
EBITDA | | | | |
| | | | |
Adjusted 9| 1.4%| 14| 2.1%| +54.7%|
EBIT | | | | |
| | | | |
EBIT 6| 1.0%| 3| 0.5%| (50.3)%|
| | | | |
Revenues amounted to ?652 million in the first half of 2015, down 0.5% at
current currency compared to the first half of 2014. This performance resulted
from a strong improvement in overall product mix, which offset lower total
product volumes of 13.7 million units in the period (-17%).
As expected, Connected Home faced a lower level of activity in developed markets
as compared to a strong first half of 2014 that benefited from a high level of
demand as part of product deployments at some large customers. The segment
continued however to deliver material improvement in overall product mix during
the period, both in North America and in Europe, Middle East and Africa, which
mitigated the negative volume impact. This mix improvement resulted from the
introduction of new products and a ramp up in the value chain. In emerging
markets, the shift of the next phase of the digitization in India towards the
second half of 2015 affected the level of activity in Asia-Pacific, while global
demand was solid in Latin America outside Brazil, notably in Mexico. Both
regions also benefited from improved overall product mix in the period.
Adjusted EBITDA amounted to ?28 million in the first half of 2015, almost stable
compared to the first half of 2014, as strongly improved gross margin nearly
fully offset the impact of lower revenues. Gross margin stood at 15.8%, up by
1.5 points year-on-year, driven by continued solid operating execution, supply
chain efficiency and product cost improvement across the segment, and further
improved product mix. Adjusted EBITDA margin amounted to 4.3% in the period,
relatively unchanged year-over-year.
Technicolor expects the revenue softness experienced by Connected Home in the
second quarter of 2015 to persist in the third quarter, particularly in North
America, and sales growth to resume strongly across all regions in the fourth
quarter. Connected Home revenues are expected as a result to grow materially
faster than the market on a full year basis (at current currency). Technicolor
is confident in its ability to achieve a continued material year-on-year
improvement in the profitability of Connected Home in 2015.
Segment review - Q2 2015 revenue highlights
Group revenues by segment
Second | Change YoY
Quarter |
| | |
In ? million 2014| 2015|Reported|At constant rate
---------------------------------------------+--------+--------+----------------
Technology 103| 145| +40.5%| +50.9%
| | |
Entertainment Services 284| 329| +15.8%| +1.0%
| | |
Connected Home 364| 335| (8.0)%| (15.4)%
---------------------------------------------+--------+--------+----------------
Group revenues (excl. legacy activities 751| 809| +7.6%| (0.1)%
and Other) | | |
---------------------------------------------+--------+--------+----------------
Legacy activities 5| 0| (92.8)%| (94.2)%
| | |
Other 6| 7| +28.0%| +3.4%
---------------------------------------------+--------+--------+----------------
Group revenues 762| 816| +7.2%| (0.7)%
| | |
Technology revenues reached ?145 million in the second quarter of 2015, up
40.5% at current currency compared to the second quarter of 2014. Licensing
revenues amounted to ?140 million in the period, up by ?40 million year-over-
year. This performance was primarily the result of a strong increase in MPEG LA
revenues, due to the Group's higher percentage share of the pool's revenues and
solid trends across TV, PC and digital set top box markets in North America over
the second half of 2014, which more than offset an adverse impact from currency
hedging. The contribution of the Group's direct licensing programs was also
sustained during the quarter.
***
Entertainment Services revenues (excluding legacy activities) totaled
?329 million in the second quarter of 2015, up 15.8% at current currency
compared to the second quarter of 2014, driven by a positive forex impact and
the strong revenue performance of the Production Services division, which
delivered another quarter of double-digit year-on-year growth, partially offset
by lower DVD volumes.
* Production Services revenues were up significantly year-on-year, with
another quarter of double-digit growth in VFX and Animation, reflecting
strong organic growth across activities and incremental revenues generated
by the successful integration of Mr. X and OuiDO Productions. Post-
production Services revenues were particularly strong in France and in
Canada, which fully offset lower revenues in the US, mostly due to a lower
number of productions compared to last year and the shift of several titles
into the second half of 2015. This strong performance was not altered by the
shutdown of most Media Services activities at the end of the first quarter
and the deconsolidation of Digital Cinema activities at the end of the
second quarter following the closing of the joint venture with Deluxe. The
Group successfully completed the acquisition of Mikros Image in June 2015.
* DVD Services revenues decreased in the second quarter of 2015, mainly driven
by a 13% decline in combined Standard Definition DVD and Blu-ray(TM) disc
volumes as compared to the second quarter of 2014. Standard Definition DVD
volumes declined by 15% in the period, due to continued reductions in
Xbox 360 volumes, as well as general weakness in studio catalog/promotional
volumes that impacted Blu-ray volumes as well. Blu-ray disc volumes
decreased by only 1%, much improved over the 10% decline experienced in the
first quarter of 2015.
Major titles produced in the second quarter of 2015 included American Sniper
(Warner Bros.), Fifty Shades of Grey (Universal) and The SpongeBob Movie: Sponge
Out of Water (Paramount).
Volume Data for DVD Services
Second Quarter | First Half
| | | | |
In million units 2014| 2015| Change| 2014| 2015| Change
---------------------------------+-----+-------+-----+-----+-------
Total Combined Volumes 260.6|226.5|(13.1)%|565.0|496.0|(12.2)%
---------------------------------+-----+-------+-----+-----+-------
By Format SD-DVD 218.8|185.1|(15.4)%|457.9|396.1|(13.5)%
| | | | |
Blu-ray(TM) 41.9| 41.4| (1.1)%|107.1|100.0| (6.6)%
---------------------------------+-----+-------+-----+-----+-------
By Segment Studio / Video 245.9|213.8|(13.0)%|526.5|466.3|(11.4)%
| | | | |
Games 8.8| 5.9|(33.0)%| 21.1| 15.5|(26.7)%
| | | | |
Software & Kiosk 5.9| 6.7| +14.0%| 17.4| 14.3|(18.1)%
| | | | |
* Legacy activity revenues were not material in the second quarter of 2015
compared to ?5 million in the second quarter of 2014, as the Group completed
this quarter the exit of these activities. IZ-ON Media was transferred from
the Entertainment Services segment to the Other segment in the first
quarter, as a result of the Group's decision to divest from this activity.
Technicolor completed on 30 June 2015 the disposal of IZ-ON Media to
STRATACACHE.
***
Connected Home revenues amounted to ?335 million in the second quarter of 2015,
down 8% at current currency compared to a strong second quarter of 2014. This
performance reflected lower product volumes across most regions, with the
exception of Latin America, offset in part by a material improvement in overall
product mix.
Connected Home secured a number of new awards and customer wins across all
regions during the quarter, including high-end devices. Technicolor announced an
ongoing collaboration with CANAL+ Group to create next-generation content
experiences, beginning with the launch of the "Cube S", a hybrid terrestrial TV
and IP set top box that takes full advantage of Over-the-Top ("OTT") delivery to
give access to more than 150 channels and on demand and catch-up TV services.
The Group also won a new major contract at Sky Brazil for the delivery of next-
generation set top boxes.
Q2 2015 Regional Highlights
* In North America, revenues declined significantly in the second quarter of
2015 compared to a strong second quarter of 2014 that benefited from large
customer deliveries associated with sustained set top box demand in
Satellite and ongoing product deployments in Cable. Connected Home's level
of activity was also impacted by a more cautious approach from customers
towards product orders and inventory management related to pending industry
consolidation. Overall product mix improved strongly year-on-year, resulting
mainly from an increased contribution of higher-end Cable devices in the
sales mix.
* In Latin America, revenues decreased in the second quarter of 2015 compared
to the second quarter of 2014, despite increased product shipments, which
expanded for the fourth consecutive quarter. This performance mainly
reflected a slowdown in customer demand and increased commercial pressures
in Brazil, which offset a solid level of activity in other countries of the
region, especially Mexico, Chile and Argentina, driven by stronger higher
deliveries of Broadband Cable and Telecom gateways. Excluding Brazil,
revenues increased year-over-year in the region, while overall product mix
also improved.
* In Europe, Middle East and Africa, revenues were up in the second quarter of
2015 compared to the second quarter of 2014, as a strong improvement in
overall product mix more than offset lower product shipments. This volume
decline primarily reflected an unfavorable comparison to the second quarter
of 2014, which benefited from a stronger level of demand as part of product
deployments at some large customers, including the positive effect of the
2014 FIFA World Cup.
* In Asia-Pacific, revenues declined significantly in the second quarter of
2015 compared to the second quarter of 2014, reflecting a strong reduction
in product shipments, particularly for set top boxes, due to the shift of
the next phase of the digitization in India to the second half of 2015. This
impact was partly mitigated by a significant year-on-year improvement in
product mix, driven by an increased contribution of higher-end Broadband
devices in the sales mix. Connected Home also continued to grow its market
position in China, where revenues doubled year-over-year, although from a
relatively small base.
Volume Data for Connected Home
Second Quarter | First Half
| | | | |
In million units 2014|2015| Change|2014|2015| Change
---------------------------------------------+----+-------+-+--+-+--+-+-------
Total Combined Volumes* 9.5| 7.1|(25.1)%|16.5|13.7|(16.9)%
---------------------------------------------+----+-------+----+----+--------
By Region North America 2.6| 1.6|(40.1)%| 4.0| 3.1|(21.5)%
| | | | |
Latin America 2.7| 2.9| +5.3%| 5.5| 6.0| +7.9%
| | | | |
Europe, Middle-East and Africa 2.1| 1.8|(14.6)%| 4.0| 3.3|(18.3)%
| | | | |
Asia-Pacific 2.0| 0.9|(57.4)%| 3.0| 1.3|(55.5)%
| | | | |
* Including tablets and other connected devices.
An analyst conference call hosted by Frederic Rose, CEO, and Esther Gaide, CFO,
will be held on Thursday, 23 July 2015 at 9:30 am CEST.
Financial Calendar
+------------------+------------------+
| Q3 2015 Revenues | 21 October 2015 |
+------------------+------------------+
| FY 2015 Results | 19 February 2016 |
+------------------+------------------+
***
Warning: Forward Looking Statements
This press release contains certain statements that constitute "forward-looking
statements", including but not limited to statements that are predictions of or
indicate future events, trends, plans or objectives, based on certain
assumptions or which do not directly relate to historical or current facts. Such
forward-looking statements are based on management's current expectations and
beliefs and are subject to a number of risks and uncertainties that could cause
actual results to differ materially from the future results expressed,
forecasted or implied by such forward-looking statements. For a more complete
list and description of such risks and uncertainties, refer to Technicolor's
filings with the French Autorité des marchés financiers.
***
About Technicolor
Technicolor, a worldwide technology leader in the media and entertainment
sector, is at the forefront of digital innovation. Our world class research and
innovation laboratories enable us to lead the market in delivering advanced
video services to content creators and distributors. We also benefit from an
extensive intellectual property portfolio focused on imaging and sound
technologies, based on a thriving licensing business. Our commitment: supporting
the delivery of exciting new experiences for consumers in theaters, homes and
on-the-go. www.technicolor.com
Follow us: (at)Technicolor - linkedin.com/company/technicolor
Technicolor shares are on the NYSE Euronext Paris exchange (TCH) and traded in
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Contacts
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investor.relations(at)technicolor.com
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
--------------------------------
Six months ended June 30,
--------------------------------
(in ? million) 2015 Unaudited 2014 Unaudited
---------------- ---------------
Continuing operations
Revenues 1,621 1,505
Cost of sales (1,227) (1,160)
---------------- ---------------
Gross margin 394 345
---------------- ---------------
Selling and administrative expenses (166) (150)
Research and development expenses (68) (68)
Restructuring costs (31) (11)
Other income (expense) 3 6
---------------- ---------------
Profit (loss) from continuing operations 132 122
before tax and net finance income (expense)
---------------- ---------------
Interest income 6 4
Interest expense (33) (43)
Other financial income (expense) (17) (35)
---------------- ---------------
Net finance income (expense) (44) (74)
---------------- ---------------
Share of loss from associates 1 1
Income tax (29) (22)
---------------- ---------------
Profit (loss) from continuing operations 60 27
---------------- ---------------
Discontinued operations
Net gain (loss) from discontinued operations (12) -
---------------- ---------------
Net income (loss) 48 27
---------------- ---------------
Attributable to:
- Equity holders 50 29
- Non-controlling interest (2) (2)
--------------------------------
Six months ended June 30,
--------------------------------
(in euro, except number of shares) 2015 Unaudited 2014 Unaudited
---------------- ---------------
Weighted average number of shares
outstanding (basic net of treasury shares 335,731,511 335,309,125
held)
---------------- ---------------
Earnings (loss) per share from continuing
operations
- basic 0.18 0.09
- diluted 0.18 0.09
Earnings (loss) per share from discontinued
operations
- basic (0.04) -
- diluted (0.04) -
Total earnings (loss) per share
- basic 0.14 0.09
- diluted 0.14 0.09
---------------- ---------------
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
---------------- ------------------
(in ? million) June 30, December 31, 2014
2015 Unaudited Audited
---------------- ------------------
ASSETS
Non-current assets
Property, plant and equipment 278 284
Goodwill 499 448
Other intangible assets 492 476
Investments in associates and joint 17 10
ventures
Investments and available-for-sale 17 8
financial assets
Contract advances and up-front prepaid 47 53
discount
Deferred tax assets 348 342
Income tax receivable 1 1
Other non-current assets 54 37
Cash collateral and security deposits 15 15
---------------- ------------------
Total non-current assets 1,768 1,674
---------------- ------------------
Current assets
Inventories 158 99
Trade accounts and notes receivable 513 580
Derivative financial instruments 2 2
Income tax receivable 54 35
Other current assets 307 326
Cash collateral and security deposits 21 21
Cash and cash equivalents 381 328
---------------- ------------------
Total current assets 1,436 1,391
---------------- ------------------
---------------- ------------------
Total assets 3,204 3,065
---------------- ------------------
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
---------------- ------------------
(in ? million) June 30, December 31, 2014
2015 Unaudited Audited
---------------- ------------------
EQUITY AND LIABILITIES
Shareholders' equity
Common stock (337,908,662 shares at June
30, 2015 with nominal value of ?1 per 338 336
share)
Treasury shares (157) (157)
Additional paid-in capital 941 939
Subordinated perpetual notes 500 500
Other reserves (41) (45)
Retained earnings (accumulated deficit) (1,048) (1,095)
Cumulative translation adjustment (237) (255)
---------------- ------------------
Shareholders' equity attributable to 296 223
owners of the parent
---------------- ------------------
Non-controlling interest 6 (4)
---------------- ------------------
Total equity 302 219
---------------- ------------------
Non-current liabilities
Borrowings 882 852
Retirement benefits obligations 364 384
Restructuring provisions - 2
Other provisions 45 56
Deferred tax liabilities 112 106
Other non-current liabilities 176 189
---------------- ------------------
Total non-current liabilities 1,579 1,589
---------------- ------------------
Current liabilities
Borrowings 62 59
Retirement benefits obligations 31 30
Restructuring provisions 36 34
Other provisions 52 62
Trade accounts and notes payable 509 502
Derivative financial instruments 1 4
Accrued employee expenses 131 130
Income tax payable 42 29
Other current liabilities 459 407
---------------- ------------------
Total current liabilities 1,323 1,257
---------------- ------------------
Total liabilities 2,902 2,846
---------------- ------------------
---------------- ------------------
Total equity and liabilities 3,204 3,065
---------------- ------------------
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
---------------------------
Six months ended June 30,
---------------------------
(in ? million) 2015 2014 Unaudited
Unaudited
----------- ---------------
Net income (loss) 48 27
Income (loss) from discontinued activities (12) -
Profit (loss) from continuing activities 60 27
----------- ---------------
Summary adjustments to reconcile profit from
continuing activities to cash generated from
continuing operations
Depreciation and amortization 88 83
Impairment of assets 10 1
Net changes in provisions (19) (22)
Gain (loss) on asset disposals (6) (7)
Interest (income) and expense 27 39
Other non-cash items (including tax) 36 40
Changes in working capital and other assets and 30 80
liabilities
Cash generated from continuing activities 226 241
Interest paid (29) (39)
Interest received 6 4
Income tax paid (33) (21)
Net operating cash generated from continuing 170 185
activities
Net operating cash used in discontinued activities (10) (9)
---------------------------------------------------- ----------- ---------------
Net cash from operating activities (I) 160 176
---------------------------------------------------- ----------- ---------------
Acquisition of subsidiaries, associates and (28) (3)
investments, net of cash acquired
Proceeds from sale of investments, net of cash 2 8
Purchases of property, plant and equipment (PPE) (20) (21)
Proceeds from sale of PPE and intangible assets - 3
Purchases of intangible assets including (23) (29)
capitalization of development costs
Cash collateral and security deposits granted to (3) (2)
third parties
Cash collateral and security deposits reimbursed by 6 4
third parties
Loans (granted to) / reimbursed by third parties - -
Net investing cash used in continuing activities (66) (40)
Net investing cash used in discontinued activities - (2)
---------------------------------------------------- ----------- ---------------
Net cash used in investing activities (II) (66) (42)
---------------------------------------------------- ----------- ---------------
Increase of Capital 4 -
Proceeds from borrowings 1 1
Repayments of borrowings (27) (169)
Fees paid linked to the debt and capital (6) (25)
restructuring
Dividends paid to Group's shareholders (17) -
Others (5) -
Net financing cash generated used in continuing (50) (193)
activities
Net financing cash used in discontinued activities - -
---------------------------------------------------- ----------- ---------------
Net cash used in financing activities (III) (50) (193)
---------------------------------------------------- ----------- ---------------
---------------------------------------------------- ----------- ---------------
Net increase in cash and cash equivalents 44 (59)
(I+II+III)
---------------------------------------------------- ----------- ---------------
Cash and cash equivalents at beginning of period 328 307
---------------------------------------------------- ----------- ---------------
Exchange gains/(losses) and scope variation 9 8
impacts on cash and cash equivalents
---------------------------------------------------- ----------- ---------------
Cash and cash equivalents at end of period 381 256
---------------------------------------------------- ----------- ---------------
Summary of consolidated results as reported (unaudited)
| First Half
-------------------------------------------------+-------+--------+---------
In ? million | 2014 | 2015 | Change
-------------------------------------------------+-------+--------+---------
Group revenues from continuing operations | 1,505 | 1,621 | +7.7%
-------------------------------------------------+-------+--------+---------
Change at constant currency (%) | - | (1.9)% |
-------------------------------------------------+-------+--------+---------
Technology | 216 | 268 | +24.0%
-------------------------------------------------+-------+--------+---------
Entertainment Services | 622 | 687 | +10.6%
-------------------------------------------------+-------+--------+---------
Connected Home | 655 | 652 | (0.5)%
-------------------------------------------------+-------+--------+---------
Other | 12 | 14 | +11.8%
-------------------------------------------------+-------+--------+---------
Adjusted EBITDA from continuing operations | 213 | 250 | +17.3%
-------------------------------------------------+-------+--------+---------
As a % of revenues | 14.2% | 15.4% | +1.2pt
-------------------------------------------------+-------+--------+---------
Technology | 149 | 197 | +32.6%
-------------------------------------------------+-------+--------+---------
Entertainment Services | 71 | 64 | (10.3)%
-------------------------------------------------+-------+--------+---------
Connected Home | 30 | 28 | (5.8)%
-------------------------------------------------+-------+--------+---------
Other | (37) | (39) | (7.6)%
-------------------------------------------------+-------+--------+---------
Adjusted EBIT from continuing operations | 127 | 159 | +25.5%
-------------------------------------------------+-------+--------+---------
As a % of revenues | 8.4% | 9.8% | +1.4pt
-------------------------------------------------+-------+--------+---------
Technology | 141 | 187 | +32.8%
-------------------------------------------------+-------+--------+---------
Entertainment Services | 17 | 1 | (93.4)%
-------------------------------------------------+-------+--------+---------
Connected Home | 9 | 14 | +54.7%
-------------------------------------------------+-------+--------+---------
Other | (40) | (43) | (7.1)%
-------------------------------------------------+-------+--------+---------
EBIT from continuing operations | 122 | 132 | +8.2%
-------------------------------------------------+-------+--------+---------
As a % of revenues | 8.1% | 8.1% | +0.0pt
-------------------------------------------------+-------+--------+---------
Financial result | (74) | (44) | +30
-------------------------------------------------+-------+--------+---------
Share of profit/(loss) from associates | 1 | 1 | +0
-------------------------------------------------+-------+--------+---------
Income tax | (22) | (29) | (7)
-------------------------------------------------+-------+--------+---------
Profit/(loss) from continuing operations | 27 | 60 | +33
-------------------------------------------------+-------+--------+---------
Profit/(loss) from discontinued operations | 0 | (12) | (12)
-------------------------------------------------+-------+--------+---------
Net income | 27 | 48 | +21
-------------------------------------------------+-------+--------+---------
Net income (Group share) | 29 | 50 | +21
-------------------------------------------------+-------+--------+---------
EPS (in ?) | ?0.09 | ?0.15 | +71.8%
-------------------------------------------------+-------+--------+---------
Free cash flow | 129 | 117 | (12)
-------------------------------------------------+-------+--------+---------
Net financial debt at nominal value (non-IFRS) | 671 | 628 | (43)
-------------------------------------------------+-------+--------+---------
Net financial debt (IFRS) | 608 | 563 | (45)
| | |
Reconciliation of adjusted indicators (unaudited)
Technicolor is presenting, in addition to published results and with the aim to
provide a more comparable view of the evolution of its operating performance in
the first half of 2015 compared to the first half of 2014 a set of adjusted
indicators, which exclude the following items as per the statement of operations
of the Group's consolidated financial statements:
* Restructuring costs, net;
* Net impairment charges;
* Other income and expenses (other non-current items).
These adjustments, the reconciliation of which is detailed in the following
table, amounted to an impact on Group EBIT from continuing operations of
?(28) million in the first half of 2015 compared to ?(5) million in the first
half of 2014.
| First Half
| | |
In ? million | 2014 | 2015 | Change
-------------------------------------------------------+-------+-------+--------
EBIT from continuing operations | 122 | 132 | +10
-------------------------------------------------------+-------+-------+--------
Restructuring costs, net | (11) | (31) | (20)
| | |
Net impairment losses on non-current operating assets | 0 | (9) | (9)
| | |
Other income/(expense) | 6 | 12 | +6
Datum: 23.07.2015 - 06:50 Uhr
Sprache: Deutsch
News-ID 408610
Anzahl Zeichen: 65565
contact information:
Town:
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Kategorie:
Business News
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