Technicolor sees “strong progress”
July 26, 2013
Technicolor has published its Q2 and H1 2013 financial results. The company reported revenue growth was up by 3.1 per cent as compared to H1 2012. The Connected Home segment has reported a fifth consecutive quarter of double-digit year-on-year revenue growth, which is driven by on-going momentum in the emerging markets and additions to the division’s product mix.
Following the recent agreement with Sony to reinforce the company’s ability to monetise its extensive IP portfolio for key technologies used in mobile devices, Technicolor will continue to launch new initiatives to expand its licensing activities, notably in the field of smartphones. In addition, the pace of Technicolor’s contributions to standards was strong in the first half of 2013, particularly for the MPEG HEVC and MPEG-H audio standards.
In line with the company’s Amplify 2015 strategic plan, Technicolor’s Connected Home segment will continue to focus upon securing additional customer wins, particularly in EMEA, while focusing its extensive research and innovation resources on developing technologies in home networking & Wi-Fi, ultra broadband and vectoring.
H1 2013 highlights
– Revenue growth at constant scope and currency: up 3.1 per cent at €1.6 billion, driven by solid performances of Connected Home and Entertainment Services (excluding legacy activities) segments.
– Adjusted EBITDA at €207 million, up 11 per cent year-on-year at constant scope. Margin increase of 1.0 point compared to the first half of 2012.
– Net profit of €6 million, up from a net loss of €26 million in the first half of 2012.
– Group Free cash flow of €24 million, despite legacy litigation costs (EU antitrust fine in particular).
– Net debt at nominal value (non IFRS) of €837 million at end June 2013, a reduction of €2 million compared to end December 2012. Refinancing successfully completed in July 2013.
Frederic Rose, Chief Executive Officer of Technicolor, stated: “Technicolor continued to show strong progress across all activities in the first half of 2013, combining revenue growth, improved profitability and solid cash flow generation. This performance is reinforced by the refinancing transaction recently completed, which further strengthens the Group’s financial structure. Technicolor continues to deliver on its Amplify 2015 strategic roadmap, dynamised notably by another good performance of Connected Home, by a strong performance across Entertainment Services activities and by the enhancement of its intellectual property portfolio as illustrated by the significant agreement announced with Sony for smartphones.”