EVS Broadcast Equipment reports third quarter 2019 Trading update
November 14 2019 - 12:30AM
EVS Broadcast Equipment reports third quarter 2019 Trading update
Publication on November 14, 2019, before market openingRegulated
information – Press release Business UpdatesEVS Broadcast Equipment
S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters
(EVSB.BR)
EVS Q3 2019 Business
update
>EVS global leader in live video technology for
broadcast and new media productions today announces its business
update for the third quarter ending 30 September 2019.
HIGHLIGHTS
- Appointment of Serge Van Herck as new CEO
- The Broadcast Market conditions remain difficult with slower
than anticipated transition to UHD (4K)
- In APAC region, political and trade relation issues are
creating uncertainty and delayed investment decisions that
negatively impact EVS Business
- Slower order intake due to market conditions, full year
revenues are expected between EUR 100 million – EUR 110
million
- Improvement of the guidance on OPEX from flat opex to moderate
decline around -3% Year over Year thanks to strict cost management
and cost reductions initiatives
- Distribution of an interim dividend of EUR 0,50 per share
Comments
Serge Van Herck, CEO comments:
“These last two months have been very intensive and informative,
and I am happy to see that we have many strengths on which we can
further build the future; team members with a lot of passion and
expertise, deep customer relations and a strong market reputation
thanks to innovative and reliable products and services.”
“I also feel a lot of commitment to keeping EVS
as the leader in a challenging and constantly changing industry. We
already started reviewing and optimizing on our plans for the
future, which we have called internally our "PlayForward" project.
This exercise is the evolution of the many initiatives and
reflections that have been made in recent years and continued by
Pierre de Muelenaere and the management team. I am also
particularly pleased with the latest “Broadcast Tech Innovation
2019” and “IABM BaM IBC 2019” awards that EVS has received for the
best e-sports production and for Overcam, a software solution
driven by machine learning that enables autonomous control of
robotic cameras in live sports.This demonstrates the quality and
capability of our teams' work and their ability to anticipate
solutions in emerging and promising markets such as e-sports and
lean production systems.”
Dr. Pierre De Muelenaere, Chairman of
the Board and Interim CEO added: “I am very pleased with
the arrival of Serge Van Herck, CEO of EVS and the work done
jointly. The transition period that started since his arrival just
2 months ago is going according to plan and will continue as
announced until the end of the year.”
“This does not hide the fact that the market
conditions faced by the broadcasting industry remain difficult and
result in delayed investments. The sector has been changing for
several years, consumer habits are changing, sports content
consumption is evolving and EVS is adapting and proposing new
solutions to these new standards which are being adopted gradually,
but less quickly than expected by the customers who remain under
strong financial pressure.”
Yvan Absil, CFO comments on the
results and the outlook: “Although we do not see any loss of market
share, we have seen a slowdown in order intake. This translates
into longer than an expected delay in the confirmation of projects.
With this, we adjust our revenue guidance for 2019 between 100 and
110 million euros. The Opex initiatives initiated in H2 2018
continue to provide positive effects in 2019. This allows us to
improve our Opex guidance with Opex now expected to decline about
3% Year on Year in 2019. All of this is mainly the result of strict
cost management without impacting EVS delivery capabilities.”
On the Share Buy Back program, Yvan Absil,
added: “The 2 years share Buy Back plan announced in October 2018
reflected the Board’s strong confidence in the future of the
company, therefore, we are continuing the program and have
currently purchased EVS shares for a total amount of EUR 6.4
million in one year”.
EVS Market Dynamics and customer wins
The Market conditions remain challenging for
broadcasters, several elements are to be taken into account such as
acceleration of consolidation, transition to IP, multi-platform
content delivery, adoption to 4K/UHD, machine learning and
automated workflows. EVS is continuing to develop products
addressing these challenges: Recently EVS unveiled at IBC2019 a new
software solution driven by machine learning that enables
autonomous control of robotic cameras in live sports environments,
a product that won the IABM BaM award at IBC2019.
In the APAC region, EVS is facing a strong
decrease in order intake and revenue due to political issues and
trade relations that create uncertainty and longer investment
cycles.
After a low year 2018, the NALA region's
business is improving due to large orders such as the NEP deal
announced at the end of August.
Some key points:
- Great IBC show where all products and services were presented
as well as a live e-sports demonstration station with two
professional players. Once again, IBC TV has partnered with EVS to
present IP collaborative workflows between systems at different
remote sites. For the first time at IBC, EVS was also active in an
e-sports showcase with live discussion sessions, keynote speeches,
interviews and demonstrations for a deep dive into the unique and
expanding world of competitive gaming.
- Major deal of XT-VIA and XS-VIA servers purchased along with
Multicam 16.00 upgrades for multiple XT4K and XT3 servers from US
OB van company.
- EVS and ESL win best e-sports production award at the Broadcast
Tech Innovation Awards 2019, the EVS-powered workflow included
the DYVI live production switcher,
XT4K and XT3 live production servers, XFile3,
IPDirector and Multireview. Live slow-motion replays were also part
of the show, using LSM remote control panels.
Interim dividend
In line with the announced stable dividend
policy of EUR 1.00 per share, the Board of Directors has decided to
pay an interim gross dividend of EUR 0.50 per share (or EUR 0.35
net per share after deduction of 30% withholding tax). The exdate
for Coupon # 29 is November 19, 2019, and the payment date is
November 21, 2019.
Corporate Calendar:
- February 20, 2020: FY19 Results
- May 19, 2020: General Assembly
For more information, please contact: Yvan
ABSIL, CFOPierre Soleil, Corporate Communication and Investor
Relations ManagerEVS Broadcast Equipment S.A., Liege Science Park,
13 rue du Bois Saint-Jean, B-4102 Seraing, BelgiumTel: +32 4 361 70
00. 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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