Impact on 2017 objectives. Operating Businesses performance in line with expectations.
Click below to listen to the conference
Paris (France), 18 December 2017 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces it is in negotiations for a strategic transaction relating to its patent licensing business. While there is no assurance that a transaction will take place, Technicolor is confident it will reach an agreement. This is in line with Technicolor’s objective to simplify the Group’s structure and allocate its capital and resources to its operating businesses.
In the course of negotiating this strategic transaction, Technicolor suspended its commercial patent licensing discussions. Technicolor has, however, reached a settlement agreement with Samsung Electronics with regard to ongoing litigations in Germany and France.
The Technology segment is consequently expected to generate around €70 million of Adjusted EBITDA (out of which €75 million from the patent licensing business) and around €25 million of free cash flow, instead of an estimated €115 million of Adjusted EBITDA and €100 million of free cash flow incorporated in the low end of the Group’s full year guidance.
The performance of the operating businesses is in line with the Group’s expectations.
Consequently, Technicolor anticipates generating an Adjusted EBITDA around €370 million, including a negative forex impact comprised between €5 million and €10 million, and a free cash flow of around €75 million before cash settlements in the Cathode Ray Tube cartel case[1].
All figures above are estimated and unaudited.
The Group will hold a conference call today at 6:30 pm CET. The conference call details are as follows:
Please dial the access number
France: 01 70 71 01 59
UK: +44 207 194 3759
US: +1 844 286 0643
PIN CODE : 48775110#
The replay will be available today at the latest by 09:00pm (CET) on our website
http://www.technicolor.com/en/who-we-are/investor-center
Technicolor will publish 2017 full year results on February 22, 2018 after market close.
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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.
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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: @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@technicolor.com
[1] Technicolor’s prior full year 2017 objectives included an Adjusted EBITDA in a range of €420 million - €480 million and a free cash flow of at least €150 million before cash settlements in the Cathode Ray Tube cartel case