Technicolor H1: “Growing demand across all businesses”
July 30, 2021
Media and entertainment technologist Technicolor has published its results for the first half of 2021.
Richard Moat, Chief Executive Officer of Technicolor, stated: “Technicolor’s first half of 2021 results are positive and in line with expectations. The Group is experiencing growing demand across all of its businesses, and is benefiting from improved profitability as a result of our disciplined operational focus. Demand for creative VFX artistry and technology continues to improve across media and entertainment, in combination with the progressive return of live action production. In particular, we are pleased by the fact that we have secured our target VFX sales pipeline for 2021 and a material part of 2022, a milestone which clearly demonstrates the tangible recovery of the Media and Entertainment industry.”
“The creation of Technicolor Creative Studios was well timed in the light of the upcoming surge in content. The division is led by a strong new leadership team focused on redefining content experiences across film, episodic, gaming, marketing, and advertising through a powerful combination of storytelling and innovation. In Connected Home, despite very strong demand in North America and in Eurasia, revenue has been impacted by component shortages leading to sales being pushed into the second half of the year. In DVD Services we saw a 4 per cent increase in total replicated disc activity, showing the attractiveness of back catalog and the resiliency of packaged media.”
“Based on business activity for the first half and the continued successful optimisation of its businesses, the Group is confident of achieving its outlook for 2021 and 2022,” Moat added.
Despite the continuing challenging environment, Technicolor delivered a positive first half 2021, with results in line with expectations and delivering significant improvement in profitability:
- Revenues of €1,359 million, a (5.2) per cent decrease year-on-year at current exchange rate but a +1.2 per cent increase at constant exchange rate;
- Adjusted EBITDA of €100 million, doubled at constant rate reflecting operational and financial improvements across all activities;
- Adjusted EBITA of €15 million represents an €83 million year-on-year improvement at constant rate;
- Free cash flow (before financial results and tax) from continuing operations of €(208) million, representing a €35 million year-on-year improvement at current rate, highlighting the end of the payment terms normalisation in Connected Home.
The Group says it is on track to achieve the c. €115 million cost savings planned for calendar year 2021, with €42 million cost savings realised in the first half, en route to delivering a cumulative €325 million by the end of 2022.