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EVS - 3Q07 Sales of 24,4m, +1%, Record Autumn Orderbook of 31,4m, up +79%, Interim Dividend of 0,80 EUR
Market Wire, November, 2007
EVS Broadcast Equipment S.A. (ISIN BE0003820371, Euronext EVS.BR, Bloomberg EVS BB, Reuters EVSB.BR, OTC Pinksheets EVBEF), the leader in Professional Digital Video applications for Live, Near-Live and Studio TV Production, today reports its results for the third quarter 2007 ("3Q07") and first nine months of 2007 ("9M07"):
Highlights:
- RECORD 3Q07 SALES 24,4 MILLION EUR, +1% vs. 3Q06 - 9M07 SALES OF 67,5 MILLION EUR, +9% EXCL 2006 EVENTS RENTALS - ASIA & PACIFIC UP 48%, AMERICA'S UP 41%, COMPENSATE EUROPE DOWN 30% - 3Q07 EBIT OF 15,8 MILLION EUR, OR 65% OF SALES - 3Q07 EPS OF 0,73 EUR, DOWN 9% - VERY STRONG AUTUMN ORDERBOOK OF 31,4 MILLION EUR , OR +79% - STUDIO REPRESENTS 40% OF THAT ORDERBOOK - REVISED GUIDANCE: 2007 SALES TO EXCEED 94 MILLION EUR - 2007 TURNS OUT TO BE A GOOD YEAR THAT ANTICIPATES ON 2008 - INTERIM DIVIDEND OF 0,80 EUR PER SHARE NEXT NOVEMBER 21, 2007.
Group Revenue and Performance
Pierre L'Hoest, CEO of EVS said: "Following a good first half driven by tapeless replacement and HDTV transition inside outside broadcast trucks and TV production studios, the third quarter reaches another record quarter with 24,4 million EUR revenues, up 1% compared to the third quarter of last year. Over the first nine months, this increase represents +2% or even +12% at constant exchange rate and excluding 2006 big events rentals. As of today, we know that 2007 sales should be at least +10% higher than 2006. Our customers, our partners and our teams all over the globe are making an impressive job to deploy EVS solutions for many leading TV productions. This great performance is explained by the overall successes of our key digital products XT[2]® and [IP]Director® in all territories".
Commenting on the results, Jacques Galloy, CFO said: "The group pursues its international expansion with new local partnerships or new offices. EVS does also reinforce future products creation and builds up R&D teams with new skills around systems integration, mass storage, telecom expertise, bandwidth optimisation, high end user applications, low bitrate deliveries like web or 3G interfaces. This translates into 28% growth in operating expenses over the 9M07 to 14,7 million EUR, representing 22% of sales while the EBIT margin over the same period represents 64% of sales".
Revenues - in million EUR
TV Systems (Broadcast) % 3Q07 / % 9M07 /
(1) 3Q06 3Q07 3Q06 9M06 9M07 9M06
---- ---- --------- ---- ---- ---------
Total reported 24,1 24,4 +1% 66,1 67,5 +2%
---- ---- --------- ---- ---- ---------
Total at constant
exchange rate 24,1 25,0 +4% 66,1 69,6 +5%
---- ---- --------- ---- ---- ---------
Total at constant
exchange rate excluding
big events rentals 23,2 24,7 +7% 61,6 69,3 +12%
---- ---- --------- ---- ---- ---------
(1) Refer to the geographical segmentation in annex 2.
EVS Broadcast sales reached 67,5 million EUR over the first nine months, which is a +5% growth at constant exchange rate. Ahead of the new TV season and program grids starting September, EVS delivered record volumes to broadcasters during summer, partly to fixed studio production environments. This evidences EVS equipment lower and lower dependency on large worldwide sporting events.
Geographically, EVS Broadcast sales grew by +48% in Asia & Pacific ("APAC") to 15,9 million EUR. Ahead of the Beijing Olympics, HD systems have been sold to OB (Outside Broadcast) vans that shall first be used for Chinese sports coverage before being used during the summer Olympics 2008.
The major one to TVB in Hong-Kong for about 1,5 million EUR. TVB is the leader of Chinese language dramas production and the TV backstage workflow shall shift from tape to EVS' XT[2]'s, [IP]Directors, Xhubs, and Xstore[2].
Geographically, EVS Broadcast sales grew by +48% in Asia & Pacific ("APAC") to 15,9 million EUR. HD systems have been sold to several Chinese TV stations and OB (Outside Broadcast) vans have been constructed ahead of Beijing Olympics 2008. Major steps have been done to enter the studio production market. EVS sold studio systems in various countries: Japan, China, Korea, Hong Kong, etc. TVB in Hong-Kong was a major milestone with the implementation of the first complete HD tapeless production and post- production environment in Asia Pacific. TVB is the leader of Chinese language dramas production." Second, America's revenues ("NALA") increased by +41% but by +52% at constant exchange rate thanks to the replacement cycle of outside broadcast trucks migrating to HDTV but also to major studio projects wins within premium customers. The seamless video and audio files transfer between EVS products and leading post-production applications helps improving our customers' efficiency, thus allowing more valuable time for the creative process. CBC/Radio-Canada, Canada's national public broadcaster, chose to install EVS equipment in its Canadian Broadcasting Centre to ensure successful and easy recording and playback of this year's NHL Playoff Games in HD. America's represent 38% of group sales for 9M07. As expected, Europe, Middle-East and Africa ("EMEA") sales over 9M07 are 30% lower than last year but the strong order intake of September and October over that region shall boost its 4Q level. In October, leading HDTV outside production group Alfacam NV has ordered more than 30 XT[2]® HD's in order to equip more than 8 new trucks for about 5,6 million EUR and RTBF has placed a 3 million EUR order to migrate its studio production towards a cutting edge tapeless and HD compatible system. EMEA is also confirming good penetration inside studio infrastructure with major customers wins like for instance Telecinco in Spain or BBC Post Production, part of BBC Resources Ltd. that produces for example "Match of the Day". Many HDTV initiatives are being announced by many broadcasters, IPTV, cable or satellite players accross Europe, what means the real take-off of HD in EMEA, for which Beijing 2008 shall be an attraction point.