Technicolor today announces its revenues for the third quarter of 2014.
Full year 2014 objectives confirmed
Q3 revenues [1] down 3.1% due to low DVD volumes in the quarter
Paris (France), 22 October 2014 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today its revenues for the third quarter of 2014.
Frederic Rose, Chief Executive Officer of Technicolor, stated:
“While we saw a lower than expected activity in DVD Services in the third quarter, our performance continued to be fuelled by profitable growth in Connected Home and Production Services. We have also progressed in the quarter on our various short and mid-term key licensing initiatives. As a result we are able to confirm our 2014 guidance and I am particularly satisfied with our strong free cash flow generation for the first nine months of the year.”
Key points
2014 guidance confirmed
Innovation
Segment review – Year-to-date performance
|
Nine months |
Change YoY |
||
In € million |
2013 |
2014 |
Reported |
At constant |
Technology |
349 |
331 |
(5.0)% |
(7.1%) |
Entertainment Services (excl. legacy activities) |
1,063 |
979 |
(8.0)% |
(5.9)% |
Connected Home |
990 |
1,024 |
+3.4% |
+7.3% |
Group revenues (excl. legacy activities) |
2,404 |
2,334 |
(2.9)% |
(0.7)% |
Legacy activities |
67 |
14 |
(79.1)% |
(78.5)% |
Group revenues |
2,471 |
2,349 |
(4.9)% |
(2.8)% |
Technology revenues amounted to €331 million in the first nine months of 2014, down 5.0% as reported compared to the first nine months of 2013, mainly driven by decreased Licensing revenues, as a result of lower MPEG LA revenues in the first half and the absence of significant new agreement signed in the third quarter.
Entertainment Services revenues (excl. legacy activities) totaled €979 million in the first nine months of 2014, down 8.0% as reported compared to the first nine months of 2013, reflecting weaker DVD Services revenues, partially offset by double-digit growth in Production Services revenues.
Connected Home revenues amounted to €1,024 million in the first nine months of 2014, reporting above-market growth of 3.4% as reported compared to the first nine months of 2013. This performance was driven by sustained level of activity across most regions, with healthy product volumes of 25.4m units during the period (+4.7%), including a growing proportion of high-end devices, as well as ongoing market share gains across all geographies, in particular in North America and Europe, Middle-East & Africa.
An analyst conference call hosted by Frederic Rose, CEO, and Stéphane Rougeot, CFO, will be held on Wednesday, 22 October 2014 at 4:00pm CEST.
Financial Calendar
FY 2014 Results |
19 February 2015 |
Q1 2015 Revenues |
23 April 2015 |
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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, 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
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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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