Market conditions in the first quarter were aligned with overall expectations and sales are broadly in line with last year at current rates.
Technicolor has continued its investments to support organic growth in Production Services and to deliver the transformation program in Connected Home.
In the first quarter, revenues are in line with last year at current rate with growth at Production Services continuing to offset DVD Services revenue decline.
For the quarter, revenues were mid-single down at constant rate compared to last year, but in line with Group expectations as the Group benefited in the prior year from an exceptionally strong performance in video at Charter and from the consequences of the customer portfolio review.
While Connected Home is benefiting from the significant progress of the transformation program and from the downward trend of memory components prices, the division is continuing to focus on investments in market share gains in Broadband access and Android based video solutions which are expected to lead to improved margins over the next several years.
The Group will continue to pursue investments, through opex and capex, to support organic growth in Production Services and to deliver its transformation program in Connected Home. The benefit of these initiatives are progressively expected over the next several years through improved profitability and cash generation.
The first half 2019 Free Cash Flow should be at a low point as it will be impacted by the timing impacts of slow inventory deliveries in Connected Home and delayed projects in Production Services.
Annual Shareholder’s Meeting
14 June 2019
H1 2019 Results
24 July 2019
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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Christophe Le Mignan: +33 1 88 24 32 83