Technicolor reports today its trading commentary for the third quarter of 2019.
Paris (France), 05 November 2019 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) reports today its trading commentary for the third quarter of 2019.
Technicolor recorded a solid quarter, marking an improved performance in Adjusted EBITDA and Free Cash Flow compared to last year despite slightly lower sales at constant exchange rates compared to the third quarter of 2018.
The Group maintains its focus on supporting organic growth in Production Services and delivering the transformation program in Connected Home.
DVD Services successfully negotiated a renewal agreement with one of its largest customers.
Based on third quarter performance, Technicolor confirms its business outlook.
Third quarter revenues achieved a strong revenue performance in Visual Effects and a stable performance in DVD Services.
DVD Services division-wide initiatives to adapt distribution operations and related customer contract agreements in response to continued volume reductions and increasing operational complexity are moving forward as planned.
The company successfully renegotiated a renewal agreement with one of its largest customers incorporating materially improved terms. This agreement will become effective in early 2020. This follows the previously announced contract extension with another studio which took effect on July 1.
For the quarter, revenues were down double-digit at constant rate compared to last year due to a demand slowdown in Latin America, and, to an exceptionally strong performance in Broadband at Comcast in the prior year.
The Division has continued to increase market share in Broadband access, gaining market share in DOCSIS3.1 solutions and Android based video solutions.
Connected Home is benefiting from the significant progress of the three-year transformation plan. The division continues to focus on investments and overall market share gains that will lead to improved margins over the next quarter:
The transformation plan is also improving productivity; more than 75% of the operational cost savings target has already been achieved (on a run rate basis) at the end of September. Moreover, memory prices continued the downward trend initiated at the beginning of the year.
FY 2019 Results
27 February 2020
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: www.technicolor.com
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Christophe Le Mignan: +33 1 88 24 32 83