April 28, 2016

First Quarter 2016 Revenues

Revenues up 65% at constant currency in Q1 2016 compared to Q1 2015

Paris (France), 28 April 2016 Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today its revenues for the first quarter of 2016. In the second half of 2015, Technicolor closed the acquisitions of Cisco Connected Devices and The Mill, which had a positive impact on prior-year result comparison.


Frederic Rose, Chief Executive Officer of Technicolor, stated:
“Our significant customer wins in the first quarter demonstrate the successful start to integrating our 2015 acquisitions. This puts us in good stead to achieve our financial objectives.”


Key points

  • Operating businesses recorded a 77% revenue growth at constant currency in the first quarter of 2016. Connected Home more than doubling in size, Production Services up over 50%, DVD Services up 25%;
  • This strong revenue growth reflected a sustained organic performance, as well as the contribution of last year’s acquisitions;
  • Integration ahead of schedule both in Connected Home and Production Services. Launch of cost cutting and operational efficiency initiatives in DVD Services to benefit Adjusted EBITDA margin in the second half of 2016;
  • Major customer wins secured during the first quarter in both Connected Home and Production Services;
  • Strong performance in Patent Licensing, with licensing deals in Video Coding and Digital TV, offsetting partially a €62 million decline in MPEG LA revenues;
  • Implementation of a new revolving credit facility of €125 million as part of the Group’s policy to increase its non-cash liquidity.


2016 objectives confirmed


  • Free cash flow in excess of €240 million;
  • Adjusted EBITDA in the range of €600 million to €630 million, reflecting:
    • An Adjusted EBITDA in excess of €475 million for the Operating businesses versus €266 million in 2015;
    • For Technology, an Adjusted EBITDA in excess of €200 million versus €389 million in 2015, based on the contribution of licensing agreements already signed by the Group. This includes an expected final €60 million of Adjusted EBITDA generated by the MPEG LA patent pool compared to €288 million in 2015;
    • Corporate and Other Adjusted EBITDA for an amount at around €(80) million.
  • Leverage ratio inferior to 1.4x at end December 2016 compared to a ratio of 1.74x at end December 2015.




Segment review – Q1 2016 revenue highlights


Group revenues by segment


 First Quarter

 Change YoY

In € million



Current rate

Constant rate

Connected Home





Entertainment Services






Production Services






DVD Services










Group revenues excluding exited activities





Exited activities





Group revenues






Financial calendar

Annual General Meeting

29 April 2016

H1 2016 Results

28 July 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. Our commitment: supporting the delivery of exciting new experiences for consumers in theaters, homes and on-the-go.
www.technicolor.com – Follow us: @Technicolorlinkedin.com/company/technicolor
Technicolor shares are on the NYSE Euronext Paris exchange (TCH) and traded in the USA on the OTCQX marketplace (OTCQX: TCLRY).

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