EVS Broadcast Equipment reports 2018 results
February 21 2019 - 12:30AM
EVS Broadcast Equipment reports 2018 results
Publication on February 21, 2019, before market openingRegulated
information – Press release annual resultsEVS Broadcast Equipment
S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters
(EVSB.BR)
EVS reports 2018 results
Record second half 2018, after a weak first
half
- FY18 performance
- Revenue of EUR 116.1 million, within the range of the guidance
(-2.3% compared to FY17)
- Operating expense slightly up versus last year (+0.5%)
- Net profit of EUR 35.2 million (+47.1% compared to FY17 mainly
thanks to tax deductions in relation with the innovation box
regime)
- Q4 performance
- Strong 4Q18, with EUR 42.3 million revenue (+6.6% compared to
4Q17), supported by the shipping of the XT-Via platform and intense
sales activities.
- High gross margin thanks to favorable product mix and lower
inventory write-offs
- Decrease of the operating expenses (-0.9% in 4Q18 compared with
4Q17)
- EBIT margin of 42.9%, net profit of EUR 17.2 million
- Governance
- Tom Bamelis (AvH) is appointed as Director of EVS (under the
cooptation procedure)
- Dirk Vanderschrik (Belfius Insurance) to be proposed as new
Board member at the next Ordinary General Meeting
- Extension of Interim CEO mandate until the end of
2019
- Guidance
- 2019 financial outlook
- Change in publication as from 2019: management will already
give a revenue and opex guidance in February to improve
transparency
- Order book of EUR 26.7 million on February 15, 2019 (to be
recognized in revenue in 2019), -28.8% vs last year (-0.7%, excl.
big event rentals)
- Additional EUR 5.4 million orders to be invoiced in 2020 and
beyond
- Revenue is expected to be in the EUR 100 million to EUR 120
million range in 2019 (with 2H stronger than 1H)
- Opex are expected to increase by less than 2% compared to last
year, thanks to disciplined cost management
- Change in dividend policy
- New dividend policy with a stable dividend of EUR 1.00 per
share for 2018, 2019, 2020, 2021 subject to reasonable market
conditions
- Hence, total gross dividend of EUR 1.00 for 2018 (incl. EUR
0.50 interim dividend paid in November 2018) proposed to the
Ordinary General Meeting of May 2019
- Change in quarterly financial reporting
- Given the high quarterly volatility of the business of EVS, the
company has decided to limit, as from 1Q19 its quarterly
publications (Q1 and Q3) to a trading update
KEY FIGURES
Unaudited |
EUR millions, except earnings per share expressed in EUR |
Audited |
4Q18 |
4Q17 |
4Q18/4Q17 |
FY18 |
FY17 |
FY18/FY17 |
42.3 |
|
39.7 |
|
+6.6 |
% |
Revenue |
116.1 |
|
118.8 |
|
-2.3 |
% |
32.6 |
|
30.8 |
|
+6.1 |
% |
Gross profit |
82.5 |
|
87.6 |
|
-5.8 |
% |
77.1 |
% |
77.4 |
% |
- |
|
Gross margin % |
71.1 |
% |
73.7 |
% |
- |
|
18.2 |
|
16.5 |
|
+10.1 |
% |
Operating profit – EBIT |
28.1 |
|
34.9 |
|
-19.7 |
% |
42.9 |
% |
41.6 |
% |
- |
|
Operating margin – EBIT % |
24.2 |
% |
29.4 |
% |
- |
|
17.2 |
|
11.0 |
|
+55.9 |
% |
Net profit (Group share) |
35.2 |
|
23.9 |
|
+47.1 |
% |
1.27 |
|
0.82 |
|
+55.6 |
% |
Basic earnings per share (Group share) |
2.60 |
|
1.77 |
|
+46.9 |
% |
COMMENTS
Dr. Pierre De Muelenaere, Chairman of the Board
and Interim CEO said: “People, revenue, costs management and
product development: this has been our main focus in the second
half of 2018. I’m very happy with the progresses achieved in these
different areas during the second half of 2018, and I want to thank
all the employees of the company for their strong commitment and
support to our Fight-Back Plan. We have actually booked a record
second half in term of revenue and profit and this makes me proud
of the EVS teams. We have been helped by our new product
introductions and, thanks to our commercial actions, we have won
key references, including a EUR 4 million contract with Gravity
Media Group, an important production company that has made
significant investment in our new XT-Via and Multicam 16 products.
For 2019, we expect that core business to remain under pressure as
we don’t expect to see major improvements in the industry dynamics.
In this context, our new products and new developments strategies
will be very important to reach our targets.”
Regarding the different important corporate
developments, Dr. Pierre De Muelenaere added: “We launched a share
buyback program in October to support the share price after the
weakness experienced in the preceding weeks. We also announced at
the end of December 2018, the arrival of two new renowned Belgian
shareholders: Ackermans & van Haaren and Belfius). They will
reinforce the shareholding structure of the company and through
their participation in the EVS board, they will actively help the
company to strengthen its strategic vision. In addition, with our
new dividend policy, which aims at paying a stable dividend over
the upcoming 3 years, we believe that we are giving more visibility
to our shareholders. Finally, our move from the quarterly reporting
to bi-annual reporting (while keeping quarterly trading updates)
will mitigate the volatility of the quarterly results of EVS and
will simplify the analysis of the analysts and investors.”
Commenting on the results and prospects, Yvan
Absil, CFO, said: “Our fourth quarter and second half reflect the
expected acceleration of the business after a weak first half. The
environment remained challenging in this second part of the year
and this has called for special efforts of our teams in the frame
of the Fight-Back plan designed by the EVS Management Team. Gross
margin also improved in Q4 thanks to higher revenues and better
product mix. We are also particularly pleased with the results of
our cost reduction initiatives, which allowed us to limit the
operating expenses increase to 0.5% in 2018 yoy (a very big
improvement compared to the yearly guidance communicated in
February 2018). These costs management efforts will continue this
year, allowing us to forecast an opex increase below 2% in 2019.
Based on our Order Book and pipeline analysis, we are in a position
to announce a revenue guidance for 2019 of EUR 100-120
million.”
Conference call
EVS will hold a conference call in English today
at 4.00 pm CET for financial analysts and institutional investors.
Other interested parties may join the call in a listen-only mode.
The presentation used during the conference call will be available
shortly before the call on the EVS website.
Dial-in numbers: +44 (0) 20 7192 8501 (United
Kingdom), +32 (0)2 401 70 35 (Belgium), +1 917 720 0181 (United
States)Conference call ID: 9999 736
Corporate Calendar:
May 9, 2019: 1Q19 trading updateMay 21, 2019:
Ordinary General MeetingAugust 29, 2019: 2Q19 resultsNovember 14,
2019: 3Q19 trading update
For more information, please contact: Yvan
ABSIL, CFOGeoffroy d’OULTREMONT, Vice President Investor
Relations & Corporate CommunicationEVS Broadcast Equipment
S.A., Liege Science Park, 13 rue du Bois Saint-Jean, B-4102
Seraing, BelgiumTel: +32 4 361 70 13. E-mail:corpcom@evs.com;
www.evs.com |
Forward Looking Statements This press release contains
forward-looking statements with respect to the business, financial
condition, and results of operations of EVS and its affiliates.
These statements are based on the current expectations or beliefs
of EVS's management and are subject to a number of risks and
uncertainties that could cause actual results or performance of the
Company to differ materially from those contemplated in such
forward-looking statements. These risks and uncertainties relate to
changes in technology and market requirements, the company’s
concentration on one industry, decline in demand for the company’s
products and those of its affiliates, inability to timely develop
and introduce new technologies, products and applications, and loss
of market share and pressure on pricing resulting from competition
which could cause the actual results or performance of the company
to differ materially from those contemplated in such
forward-looking statements. EVS undertakes no obligation to
publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. |
About
EVS EVS is globally recognized as the leader in live video
technology for broadcast and new media productions. Our passion and
purpose are to help our clients craft immersive stories that
trigger the best return on emotion. Through a wide range of
products and solutions, we deliver the most gripping live sports
images, buzzing entertainment shows and breaking news content to
billions of viewers every day – and in real-time.The company is
headquartered in Belgium with offices in Europe, the Middle East,
Asia and North America, and provides sales and technical support to
more than 100 countries. EVS is a public company traded on Euronext
Brussels: EVS, ISIN: BE0003820371.For more information, please
visit www.evs.com. |
- Press release in pdf format
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