TECHNICOLOR : Third quarter 2014 Revenues

• Full year 2014 objectives confirmed
• Q3 revenues¹ down 3.1% due to low DVD volumes in the quarter

PARIS, Oct. 22, 2014 (GLOBE NEWSWIRE) -- Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today its revenues for the third quarter of 2014.

Frederic Rose, Chief Executive Officer of Technicolor, stated:

"While we saw a lower than expected activity in DVD Services in the third quarter, our performance continued to be fuelled by profitable growth in Connected Home and Production Services. We have also progressed in the quarter on our various short and mid-term key licensing initiatives. As a result we are able to confirm our 2014 guidance and I am particularly satisfied with our strong free cash flow generation for the first nine months of the year."

Key points

• Q3 14 revenues¹ at €839 million, down 3.1% at current currency and down 4.9% at constant currency. The revenue decrease was almost entirely due to lower DVD volumes in Q3 14.
• Year-to-date revenues at €2.3 billion, down 2.9% at current currency and broadly stable at constant currency.
• Continued focus on execution and operating efficiencies, in particular in DVD Services to help mitigate the impact of lower volumes on profitability.
• Solid free cash flow generation in Q3 14, marked improvement compared to Q3 13. For the first nine months of 2014, free cash flow generation significantly above the same period last year.

2014 guidance confirmed

• Technicolor confirms its objective to reach an Adjusted EBITDA between €550 million and €575 million;
• Expects to generate a free cash flow of more than €200 million, despite the impact of higher cash restructuring charges compared with 2013;
• Expects a positive net income;
• Confirms its objective to reach a Net Debt to Adjusted EBITDA ratio well below 1.2x at end December 2014.

Innovation

• R&I continued to dedicate its work in enabling immersive media experiences through contribution to MPEG, BDA and ATSC standardization bodies, focusing on color gamut, high dynamic range and metadata based services.
• The Group unveiled partnerships that accelerate the development and adoption of some of its technologies:
  • With Sinclair Broadcast, deploying an ATSC 3.0 4K/UltraHD testbed platform with the objective to offer broadcasters the ability to deliver the highest quality content inclusive of 4K UltraHD live broadcast in a simultaneous transmission to consumers both at home and on-the-go.
  • The successful migration of Samsung's Media Hub customers to M-GO completed during the quarter.
• Connected Home introduced this quarter a large number of new and innovative products and solutions with a particular focus on immersive technologies, over-the-top services and advanced products for Ultra Broadband.

The following in PDF version 

¹ Excluding legacy activities.

PDF version http://hugin.info/143597/R/1864648/654506.pdf

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