Technicolor has posted first-half revenues of €1.76 billion, down 3.8 percent from a year earlier, and adjusted EBITDA of €62 million, down 18.1 per cent from a year earlier. For the second half of 2019, the French media services company said it expects a significant improvement in profitability and cash flow generation, driven by seasonal demand and a recovery in Production Services and Connected Home.
Free Cash Flow from continuing operations was negative at €137 million, slightly down from negative €262 million in the same period a year earlier.
In Production Services, second-half margins and cashflow are expected to improve compared with the first half and the division will commence reaping from a long-term production agreement with an unnamed global streaming platform.
Connected Home activities are set to benefit from lower memory prices in the second half and the company expects to complete the reduction of excess inventories, boosting cashflow.