EVS Broadcast Equipment: EVS revises its outlook 2020 due to coronavirus outbreak and announces the cancellation of the May f...
March 25 2020 - 1:30AM
EVS Broadcast Equipment: EVS revises its outlook 2020 due to
coronavirus outbreak and announces the cancellation of the May
final dividend 2019 payment
Publication on March 25, 2020, before market openingRegulated
informationEVS Broadcast Equipment S.A.: Euronext Brussels
(EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)
EVS REVISES ITS OUTLOOK 2020 DUE
TO CORONAVIRUS OUTBREAK AND ANNOUNCES THE CANCELLATION OF THE MAY
FINAL DIVIDEND 2019 PAYMENT
EVS Broadcast Equipment announces that,
considering the outbreak of Coronavirus pandemic, the initial
revenue guidance of EUR 100 million to EUR 120 million revenue
range in 2020 will not be achieved.
Our 3 market pillars of revenues (Live Service
Providers – LSP, Live Audience Business – LAB and Big Event Rental
– BER) are impacted by the pandemic.
- Major summer sport events are being postponed to 2021, which
should postpone related EVS revenues from 2020 to 2021. EVS had
announced earlier this year that its order backlog as of Dec 31st
2019 included EUR 12.3 millions of Big Event Rental orders to be
recognized in 2020. It has to be noted that these events are
postponed and not cancelled. Product developments that have already
been performed are expected to be reused and planned revenues will
in principle shift from 2020 to 2021.
- Due to the cancellation and postponement of various live events
(sport, concerts, entertainment shows), various LSP customers have
heavily reduced their level of activity and their priority is to
keep their staff ready for the recovery period. Their spending for
buying new equipment is in many cases postponed to a later
date.
- Some of our LAB customers are suffering as well. Many stadiums,
universities and colleges are currently not allowed to organize any
live event in their premises. On the positive side, many news
related broadcastcenters see their news audience peak at this
moment in time which translates in continued ordering of certain of
our solutions.
- Considering the potential future concurrence of various live
events when the confinement measures will be relaxed, the
possibility exists that both LAB customers and LSP customers will
need to acquire more equipments.
At this stage and given the above dynamics an
uncertainty about how this crisis might unfold and how long it may
last, EVS has decided at this stage not to provide revenue guidance
for the year 2020.
Given the circumstances, operational expenses
continue to be closely managed and EVS expects those costs to
slightly decrease compared to 2019.
Impact on dividend policy established in
2018:
- Considering the exceptional market conditions, the board of
directors of EVS decides to cancel the payment of the final 2019
gross dividend of EUR 0.50 foreseen for may 2020. This
decision will be submitted to the approval of the ordinary
shareholders meeting scheduled on 19 May 2020.
- An interim gross divided of EUR 0.50 has already been paid in
November 2019.
- The plan is still to deliver a total gross dividend of EUR 1.00
related to the fiscal year 2020 and 2021, subject to market
conditions.
The Share buyback program announced on October
24th, 2018 is continuing as planned. As of March 24th, 2020, EVS
has bought 455,210 shares at an average price of EUR 19,8083,
representing in total EUR 9,016,956.
Since March 16th, facing the situation of
continuous spreading of the Corona Virus worldwide, most of EVS
teams are working from home, and the EVS offices are
partially closed until further notice, including our
headquarters in Belgium. The company has taken all appropriate
actions to preserve all team security and health, while securing
the delivery of customers’ orders, as well as insuring customer
support at the best possible conditions.
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.
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
- Press release in PDF format
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