Paris (France), 24 October 2018 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) today reports its trading commentary for the third quarter of 2018.
Technicolor’s third quarter results were stable despite a challenging environment, while at constant exchange rates, sales slightly increased versus the third quarter 2017.
Technicolor confirms its expectations for an Adjusted EBITDA from continuing operations broadly stable at constant exchange rates compared to 2017. This expectation is due to the positive impact of the Connected Home transformation plan, coupled with significant cost control actions across the Group offsetting additional market pressures.
For the quarter, revenues are in line with last year at current and constant exchange rates. Year to date, and at constant exchange rates, revenues are slightly below last year, with growth at Production Services not completely offsetting DVD Services revenue decline.
For the quarter, revenues were stable at constant exchange rates compared to last year. Year to date overall sales are below prior year, in large part due to North American video weakness.
The 3-Year Transformation plan is being executed as announced. The Connected Home segment is deploying new initiatives to gain competitiveness and differentiation and to improve our supply chain performance to manage the current industry constraints.
For the rest of the year, Technicolor expects a year-on-year decline of more than 15% in the Group’s North American video cable sales, continued pressure on component costs and volatility in the DVD Services market.
Having stepped up its transformation and cost adjustment actions as a result of tougher than expected H2 market conditions, Technicolor confirms it expects an Adjusted EBITDA from continuing operations broadly stable compared to 2017 at constant exchange rates. This assumes no further market deterioration.
The Board of directors has co-opted as a Director Maarten Wildschut, who joined the Board as an Observer in July, in replacement of Hilton Romanski. Mr. Romanski and Ms. Birgit Conix have recently resigned from their positions as Directors of the company subsequent to assuming new professional positions as respectively Partner at Siris Capital, a major private equity firm, and CFO at TUI Group, the world number one tourism business.
FY 2018 Results - 28 February 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.
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.
Technicolor shares are on the Euronext Paris exchange (TCH) and traded in the USA on the OTCQX marketplace (OTCQX: TCLRY).
Christophe Le Mignan: +33 1 41 86 58 83