TECHNICOLOR: Q3 2017 TRADING COMMENTARY
(Thomson Reuters ONE) -
PRESS RELEASE
Technicolor: Q3 2017 trading commentary
Paris (France), 25 October 2017 - Technicolor (Euronext Paris: TCH; OTCQX:
TCLRY) today reports its trading commentary for the third quarter of 2017.
Production Services recorded another quarter of revenue growth driven by the
continued demand for premium content across the different market segments.
Animation and Games activities grew at record levels, while Visual Effects
("VFX") for film performed well on the back of a strong order book. Advertising
activities started improving at the end of the third quarter, while
Postproduction Services recorded a solid performance during the quarter.
In DVD Services, overall disc volumes replications were down 9% year-on-year in
the third quarter in line with the disappointing performance of the summer
theatrical box office and lower Games volumes, but with Blu-ray volumes
returning to growth in the third quarter. Games volumes improved over the first
half, but are impacted by the underperformance of selected key Games titles and
the delay to the fourth quarter and 2018 of three AAA Games.
In the Connected Home segment, revenue trends improved as expected compared to
the first half, while remaining slightly negative. The business environment in
the last quarter was impacted by subscriber losses in the video space for
several customers in the Americas, the natural disasters that affected North
American and Mexican customers, as well as the continued pricing pressures for
certain memories. Specifically compared to last year:
* Revenues in North America showed strong growth with Cable customers and in
Canada, which included the first material Docsis 3.1 gateways being
delivered, but were offset by weakness in the satellite segment;
* Revenues in Europe, Middle-East and Africa did not rebound due mainly to
reduced demand from customers;
* Strong growth in Asia-Pacific driven by Japan and Korea;
* Latin America saw continued overall decline driven by Mexico,
notwithstanding Brazil returning to growth for the first time in two years.
During the third quarter mitigation actions continued to specifically address
the memory cost increase. These actions not only include negotiations with
Connected Home customers, but also the review of the customer portfolio, cost-
cutting initiatives and the rationalization of the geographical footprint. The
objective is to adapt the segment to an environment that is expected to remain
challenging.
The Technology segment signed during the third quarter a licensing agreement
with a Japanese TV manufacturer, which represents a milestone for the joint-
program with Sony for Digital TV. This is expected to support ongoing licensing
discussions with other manufacturers.
Based on third quarter performance, Technicolor maintains its Adjusted EBITDA
and free cash flow objectives.
Reminder of 2017 objectives
* Adjusted EBITDA in the range of ?420 million to ?480 million;
* Free cash flow in excess of ?150 million before cash impacts of the Cathode
Ray Tube ("CRT") cartel case settlements (c. ?(81) million).
These objectives are calculated based on constant exchange rates, and integrate
the uncertainties in determining the timing to resolve the patent litigation
against Samsung Electronics and the money at stake.
Financial calendar
+-----------------+------------------+
| FY 2017 Results | 22 February 2018 |
+-----------------+------------------+
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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. 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
the USA on the OTCQX marketplace (OTCQX: TCLRY).
Investor Relations
Emilie Megel: +33 1 41 86 61 48
emilie.megel(at)technicolor.com
Christophe Le Mignan: +33 1 41 86 58 83
christophe.lemignan(at)technicolor.com
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Source: TECHNICOLOR via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2017 - 17:45 Uhr
Sprache: Deutsch
News-ID 565271
Anzahl Zeichen: 6880
contact information:
Town:
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Kategorie:
Business News
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