EVS Broadcast Equipment reports 2019 results
February 20 2020 - 12:30AM
EVS Broadcast Equipment reports 2019 results
Publication on February 20, 2020, before market openingRegulated
information – Press release annual resultsEVS Broadcast Equipment
S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters
(EVSB.BR)
EVS reports 2019 results
Strong profitability despite lower revenues
- FY19 performance
- Revenue of EUR 103.4 million, within the range of the guidance
(-10.9% YoY or -2.3% YoY excluding big events rentals and at
constant currency)
- Operating expense declining 5.3% YoY
- Net profit of EUR 19.6 million (-44.2% compared to FY18 mainly
due to exceptional tax deductions in relation with the innovation
box regime in 2018)
- Slow APAC region due to political and trade relations resulting
in delayed investment decision
- H2 performance
- Strong 2H19, with EUR 62.4 million revenue (-13.3% or -8.8%
excluding big event rentals and currency impact vs. 2H18)
- Strong gross margin thanks to favorable product mix and lower
inventory write-offs
- Decrease of the operating expenses (-3.6% in 2H19 compared with
2H18)
- EBIT margin of 31.4%, net profit of EUR 15.9 million
- Guidance
- 2020 financial outlook
- Order book of EUR 33.4 million on December 31, 2019 (to be
recognized in revenue in 2020), +87.3% vs last year (+18.3%, excl.
big event rentals)
- Additional EUR 4.4 million orders to be invoiced in 2021 and
beyond
- Revenue is expected to be in the EUR 100 million to EUR 120
million range in 2020, taking into account a shift from a capex
model to a multi year recurring revenue stream
- Opex is expected to be flat compared to prior year
- Maintain dividend policy established in 2018
- Deliver a total gross dividend of EUR 1.00 for 2020 and 2021,
subject to market condition.
- Deliver a total gross dividend of EUR 1.00 for 2019 (incl. EUR
0.50 interim dividend paid in November 2019) proposed to the
Ordinary General Meeting of May 2020
- Change in information given by revenue destination
- From 2020 onwards, in order to clarify and better reflect
market transformation and EVS evolutions, EVS will change the
structure of the revenue pillars from “OB vs Studio” to distinguish
“LAB” (Live Audience Business) revenues and “LSP” (Live Service
Providers) revenues while maintaining “Big Events Rentals” pillar
to reflect the non-yearly revenues linked to the calendar of
certain big sport events.
KEY FIGURES
Unaudited |
EUR millions, except
earnings per share expressed in EUR |
Audited |
2H19 |
2H18 |
2H19/2H18 |
FY19 |
FY18 |
FY19/FY18 |
62.4 |
72.0 |
-13.3% |
Revenue |
103.4 |
116.1 |
-10.9% |
45.5 |
53.0 |
-14.2% |
Gross profit |
74.1 |
82.5 |
-10.2% |
72.9% |
73.7% |
- |
Gross margin % |
71.6% |
71.1% |
- |
19.6 |
25.7 |
-23.8% |
Operating profit – EBIT |
23.0 |
28.1 |
-17.9% |
31.4% |
35.7% |
- |
Operating margin – EBIT % |
22.3% |
24.2% |
- |
15.9 |
24.6 |
-35.2% |
Net profit (Group share) |
19.6 |
35.2 |
-44.2% |
1.14 |
1.81 |
-37.1% |
Basic earnings per share (Group share) |
1.40 |
2.60 |
-46.2% |
COMMENTS
Serge Van Heck, CEO said: “Since I joined EVS in
early September, I had the opportunity to meet team members,
customers and business partners all over the world. I saw passion,
commitment and strong recognition of EVS expertise and reliability.
I am really happy of the transition support I did get from Pierre
De Muelenaere who has finished his mission as CEO ad interim as
planned end December.
We finished the year with a good second half and
a strong order book as we enter 2020 even if transition to UHD (4K)
is slower than anticipated.
We have won key references, including a large
contract with Game Creek, an important US based production company
that has made significant investment in our new XT-Via and Multicam
16 products to expand their HDR capabilities. We have also won a
key reference with a football league in APAC where our unified
production solution around X-One will be used for their
productions. For 2020, we expect core business to remain under
pressure as we don’t expect to see major improvements in the
industry dynamics. We also expect APAC to continue to be impacted
by a slowdown of the market. We have been revising and improving
our plans for the future - PLAYForward project - for which we
expect financial impact as of 2021”
Commenting on the results and prospects, Yvan
Absil, CFO, said: “Our second half reflects the continued
volatility of the business. The environment remained challenging in
this second part of the year as we continued our actions to keep
our costs under control. We are particularly pleased with the
results of our cost control initiatives, which allowed us to reduce
our operating expenses by more than 5% in 2019 YoY. These cost
management efforts will continue this year, allowing us to forecast
a stable opex in 2020 vs 2019. Our strong order book of EUR 33.4
million (including big event rentals) does not hide the slow
business as customers remains under cost pressure. Taking also into
account that an increasing part of our sales will be shifting from
a capex model to a multi year recurring revenue stream, we announce
a revenue guidance for 2020 of EUR 100-120 million.”
Conference call
EVS will hold a conference call in English today
at 4.00 pm CET (Attention change of
timing) 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: 8387739
For more information, please contact: Yvan
ABSIL, CFOEVS 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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