Technicolor confirms 2012 objectives at €475-500m

Pascale Paoli-Lebailly ©RapidTVNews | 29-04-2012



Technology group for the media and entertainment sector, Technicolor confirmed yesterday its 2012 objectives based on a resilient first quarter performance. The group forecasts an adjusted Ebitda of €475-500 million and expects to generate positive free cash flow despite higher restructuring expenses and investments in growth businesses.

The group’s revenues for the first quarter of 2012 established at €800 million compared to a strong first 2011 quarter at €812m. The breakdown shows technology and entertainment services’ decrease to respectively €121m (down 6.4%) and €395m (down 2.3%). Digital delivery kept rising to €284m, up 2.4 % while Connected Home division recorded stable revenues year-on-year.

Over Q1 of 2012, Technicolor's Entertainment Services division started new services to the Studios with the opening of sound facilities both in Los Angeles and in France. Connected Home also won new customers in Latin America and Asia-Pacific and Technicolor bets on returning Connected Home to Adjusted Ebitda breakeven in 2012.

Technicolor also launched "new research orientations to align technology innovation with its Amplify 2015 strategic roadmap" and signed a binding agreement to sell its Broadcast Services activity to Ericsson.

"The action plan announced at the end of December 2011 has already started to generate some improvements," the group concluded.