April 26, 2013

First quarter 2013 revenues: Robust revenue growth of 2.2% at constant scope and currency

In the first quarter of 2013, Group revenues from continuing operations amounted to €775 million

Paris (France), 26 April 2013 The Board of Directors of Technicolor (Euronext Paris: TCH) met yesterday to review the Group’s revenues (unaudited) for the first quarter of 2013.

Q1 2013 revenue highlights

In the first quarter of 2013, Group revenues from continuing operations amounted to €775 million, up 2.1% at constant scope[1] and current currency and up 2.2% at constant scope and currency compared to the first quarter of 2012 revenues[2].

  • Technology: Another quarter of solid Licensing revenues, driven by good performance of the different licensing programs.
  • Entertainment Services: Slightly higher revenues year-on-year excluding legacy activities, with sustained growth in DVD Services revenues and robust level of activities in Digital Creative Services.
  • Connected Home: Strong performance in line with the momentum recorded in H2 2012.
In € million Q1 2012 (unaudited) Q1 2013 (unaudited) Change, at constant scope and currency (%)
Group revenues from continuing operations 800 775 +2.2%
Change as reported (%)   (3.2)%  
Change at constant currency (%)   (3.1)%  
o/w Technology 121 125 (1.5)%
Change as reported (%)   +3.3%  
Change at constant currency (%)   (1.5)%  
Entertainment Services 395 376 (5.4)%
Change as reported (%)   (4.9)%  
Change at constant currency (%)   (5.4)%  
Connected Home 242 274 +16.3%
Change as reported (%)   +13%  
Change at constant currency (%)   +16.3%  
Digital Delivery (activities disposed) 42 0 -


Financial Structure update

  • Gross debt at the end of March 2013 amounted to €1,222 million at nominal value and €1,107 million on an IFRS basis, a decrease of respectively €14 million and €8 million compared to the end of December 2012, mainly resulting from €36 million of debt repayments partly offset by the impact of the appreciation of the US dollar.  The level of cash was lower compared to end of December 2012 mostly due to debt repayments and the payment of the €38.6 million EU antitrust fine in March 2013.
  • Technicolor has put in place a new €50 million receivables backed committed credit facility with Natixis replacing the previous facility which expired in April 2013. This new facility, at improved terms versus the previous one, matures in April 2016.

2013 objectives confirmed

  • Growth of adj. EBITDA of between 5% to 10% compared to FY 2012 adj. EBITDA at constant scope[3] (€498 million):
    • Licensing adj. EBITDA broadly stable vs. FY 2012 assuming another year of strong contracts;
    • Continued improvement of Connected Home adj. EBITDA and return to positive free cash flow generation in this segment;
    • Improved profitability in Entertainment Services, reflecting cost actions implemented in H2 2012;
    • Continued increase in operating expenses for M-GO and new growth initiatives.
  • Strong growth in Free Cash Flow, above 30%, before one-off payments for legacy litigation (particularly the EU antitrust fine for €38.6 million).
  • Net debt to adj. EBITDA ratio (as per the Group’s covenants) below 1.25x at end-December 2013.

Frederic Rose, Chief Executive Officer of Technicolor, stated:

“This quarter was marked by robust revenue growth resulting from our continued focus on execution. This good performance was driven by sustained Licensing revenues, a great performance in Connected Home and revenue growth in our core Entertainment Services. We have increased market shares across our different businesses and maintained our focus on innovation to support their growth and to further strengthen our intellectual property. We are on track to deliver on our 2013 commitments.”

An analyst conference call hosted by Frederic Rose, CEO and Stéphane Rougeot, CFO and SEVP Strategy will be held on Friday, 26 April 2013 at 4:00pm CET.

Financial Calendar
AGM 2013 May 23 2013
H1 2013 Results July 26 2013
Q3 2013 Revenues 25 October 2013


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. Euronext Paris: TCH  ?  www.technicolor.com




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[1] Excluding the Broadcast Services and the SmartVision (television-over-IP) businesses, sold in 2012, and the Cirpack softswitch operations (voice-over-IP), sold in 2013. Those activities contributed €42 million of revenues in the first quarter of 2012 (no contribution in the first quarter of 2013).

[2] On a reported basis, including disposals, revenues were down 3.2% at current currency and down 3.1% at constant currency.

[3] Adjusted EBITDA at constant scope excluding the Broadcast Services and the SmartVision (television-over-IP) businesses, sold in 2012, and the Cirpack softswitch operations (voice-over-IP), sold in 2013.