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Technicolor revenue down 3%, only growth in VFX for TV and Cinema

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  • Technicolor revenue down 3%, only growth in VFX for TV and Cinema

    Total revenue for 2018 was down over three percent, the company notes that the second half of the year saw growth. "Revenues from continuing activities were €3,988 million, down 3% year-on-year at constant rate, with an Adjusted EBITDA of €266 million compared to €341 million in 2017. Sales in the second half of the year grew by 3% at constant rate, driven in particular by a solid 5% during the last quarter".

    The loses from continuing operations grew by 33.9% from 168 million to 224 million.

    Following the restatement of 2017 revenues. Technicolor is restructuring, shedding its research division to InterDigital, that acquired the patent and licensing business the year before. As Technicolor decided to retain part of the icensing afterall, that revenue has been re-added to continued opeations, with the research divisions revenues moved to the discontinued activities.

    Technicolor group currently is made up of two pillars, the slightly larger half on the business is the company's set-top-box division 'Connected Home', its decline was due to less demand from the US, Charter and AT&T, made worse by the global component shortages leading to delay in deliveries. Outside Northe America the company was able to re-invoice its customers for the higher component prices.

    "Connected Home revenues totaled €2,218 million in 2018, down 5% year-on-year at constant rate (mainly due to the year on year decline in the North American video market) but up 5% at constant rate in the second half".

    The film and TV industry services were all down except for the expanding visual effects division, providing a boost to the production division.

    DVD Services revenues declined by 5% at constant rate year-on-year, down 2% in the second half.  The stronger than expected volume decline in 2018, affecting particularly the distribution activity, has led to a depreciation of the division goodwill. As a result, a non-cash impairment charge of €(77) million is booked in the 2018 accounts. Thechnicolor closed some locations and is adjusting its pricing structures to counter the decline in business..

    Producing 150 million less discs than in 2017.

    On the up were Production Services that recorded a solid performance, up 6% year-on-year at constant rate, including 7% growth during the second half at constant rate. This growth was driven in particular by the Film & TV Visuals Effects activity resulting from significant capacity expansion throughout the year.
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