July 27, 2011 17:49 ET

Technicolor: Q2 2011 revenues and H1 2011 results

ISSY-LES-MOULINEAUX CEDEX, FRANCE--(Marketwire - Jul 27, 2011) -


Q2 2011 revenues and H1 2011 results

Paris (France), 27 July 2011 , The Board of Directors of Technicolor (Euronext Paris: TCH) met today to review the Group's first half 2011 results.

Q2 2011 revenues

Group revenues from continuing operations amounted to EUR747 million in Q2 2011, down 6.1% at current currency compared to Q2 2010, and up 1.2% at constant currency.

-- Technology revenues were up 4.1% YoY at constant rates, with Licensing benefitting from a stable revenue stream from MPEG-LA and from the sustained performance of the other licensing programs.

-- Entertainment Services revenues were up 16.8% YoY at constant rates, driven by increased activity levels in Creation Services and higher DVD and Blu-ray™ volumes.

-- Digital Delivery revenues declined by 14.6% YoY at constant rates as a result of an unfavorable overall product mix, reflecting in particular a degraded economic environment in Europe, and a less favorable geographic mix due to stronger demand in Latin America.

H1 2011 key indicators

-- Group revenues from continuing operations amounted to EUR1,559 million in H1 2011, up 4.0% at current currency compared to H1 2010, and up 8.3% at constant currency.

-- Adjusted EBITDA from continuing operations reached EUR167 million or 10.7% of revenues in H1 2011, an increase of 1.2 points compared with H1 2010. The increase in Technology and Entertainment Services profitability more than offset the drop in Digital Delivery Adjusted EBITDA in H1 2011.

-- Group Free Cash Flow reached EUR32 million for H1 2011 and Group net debt as per consolidated financial statements reduced by EUR45 million in the first half to EUR948 million on 30 June 2011.

2011 objectives

-- The Group confirms its previously stated objectives for FY 2011. In H2 2011, the continued resilience in Licensing and improved trends in Entertainment Services are expected to compensate the weakness in Digital Delivery revenues and margins, and enable the Group to achieve slight revenue growth overall at constant rates for the full year and generate an Adjusted EBITDA comparable or slightly up compared to the level achieved in 2010.

-- In addition, the Group expects to generate a positive Free Cash Flow in the second half of 2011.

Comment by Frederic Rose, CEO

"Notwithstanding a challenging macroeconomic environment in the first half of 2011, we delivered a strong operational and financial performance. I am particularly satisfied by the positive Free Cash Flow generated in the first half of the year. Based on the resilience of our licensing programs, our customer wins and new offerings, we confirm our 2011 objectives. Recent developments in the intellectual property field reinforce our conviction that our patent portfolio is an extremely valuable asset. We are determined to pursue the development of alternative programs and approaches to maximize its monetization potential."

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Q2 2011 revenues and H1 2011 results:

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Source: TECHNICOLOR via Thomson Reuters ONE


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