Technicolor H1 “slow start; marked improvement”

Media services group Technicolor has reported first half 2017 revenues of €2,146 million and the Adjusted EBITDA at €107 million.

Frederic Rose, Chief Executive Officer of Technicolor, stated: “Following a slow start to the year, we saw a marked improvement in the latter half of the period across all our operating businesses which we expect to carry through for the rest of the year.”

First Half 2017 key highlights:

  • The Connected Home Adjusted EBITDA decreased year-on-year as a result of lower revenues versus a very strong first half 2016 performance, which was exacerbated by the €30 million negative impact of memory price increases;
  • The Technology segment revenues declined compared to a very strong first half 2016 performance and due to the expiry of Digital TV agreements in anticipation of the ramp up of the joint licensing program with Sony.
  • Entertainment Services saw a stable Adjusted EBITDA as Production Services revenue and profit growth was constrained by capacity ramp up and DVD Services improvement in margin was offset by a mix which was heavily weighted toward Standard Definition discs;
  • Free cash flow excluding cash impacts of the CRT case settlements amounted to €(67) million due to the lower Adjusted EBITDA. Group free cash flow amounted to €(148) million;
  • Technicolor reinforced its cost optimisation programme while working on ongoing mitigation actions related to the memory cost impact.

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