Technicolor: ‘No sign of Netflix slowdown’
August 3, 2022
By Chris Forrester
Technicolor’s CEO Richard Moat, speaking to analysts following on from his company’s financial results, said that Technicolor Creative Studios (TCS), a major supplier of VFX and post-production services to Netflix and other broadcasters, was still extremely busy.
“In terms of the [content demand] pipelines, which we see for the remainder of this year and into ‘23, we see no sign of a slowdown in terms of demand,” he said.
Moat explained that Technicolor had cash and cash-equivalents of $168 million (€165m), plus other financial liquidity amounting to $216 million at the end of June and had recently concluded the refinancing of $623 million of debt.
Technicolor had sold its trademark licensing operation on May 31st which resulted in a cash consideration of about $100 million.
Technicolor’s revenues were $1.6 billion (up 11 per cent). The company said its revenue increase of €249 million mainly resulted from €116 million revenue improvement at TCS, excluding Post Production, plus €129 million of positive ForEx impact.
The company’s Connected Home division’s revenues totalled €897 million, which represented an increase of 5.8 percent at constant exchange rate compared to the same period of 2021.
“While the supply chain constraints and the ongoing chip shortage limited the division’s ability to fully satisfy customer demand, our solid Q2 revenue showed signs that there is improvement in the allocation of supply and in transit times,” said Moat.
One of its key creative divisions is Moving Pictures Company (MPC). “MPC teams worked on approximately 20 theatrical and over 35 streaming and episodic projects, and their outstanding work was rewarded with industry nominations and awards. Mikros Animation was involved in the production of six features and several episodic series, including Charlie and the Chocolate Factory for Netflix. The Mill contributed to more than 1,900 projects during the first half and won key industry awards and Technicolor Games set working with several AAA games companies,” Moat added.