EVS Broadcast Equipment reports 1H 2019 results
Publication on August 29, 2019, before market opening
Regulated information – Press release first half 2019 results
EVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)
EVS reports First half 2019 results, confirms guidance on revenues and improves guidance on operating expenses
Financial performance
- Revenue in the first six months of the year amounts to EUR 41,0 million in 1H19, - 6.9% YoY (+12% compared to 1H18 excl. big event rentals)
- The OB market is doing better than 1H18 (+40.5 % YOY) supported by the transition to UHD
- Lower Operating expenses (-7.1% in 1H19 compared with 1H18), highlighting continued disciplined cost management
- EBIT margin of 8.3% in 1H19 vs 5.3% in 1H18
- Net profit decrease by 65.2 % to EUR 3,7 million in 1H19. Excluding 1H18 one-offs (mainly innovation box tax deduction of EUR 6,6 million), net profit increased by 7.1%
Outlook
- Order intake as of June 30th, 2019: + 19% vs June 30th, 2018
- Order book of EUR 22,5 million on June 30 ,2019 (to be recognized in revenue in 2019)
- Confirmation of the guidance on revenues, between EUR 100 million – EUR 120 million, thanks to expected stronger H2
- Improvement of the guidance on OPEX with stable OPEX expected for full year 2019
- Subsequent event since end of June:
- Additional EUR 11,3 million orders received for major global sporting events in summer 2020
- USD 8 million order received for NEP production upgrade, to be delivered starting September until early 2020
KEY FIGURES
| EUR millions, except earnings per share expressed in EUR | Reviewed | ||
| 1H19 | 1H18 | 1H19/1H18 | |
| Revenue | 41,0 | 44,1 | -6.9% |
| Gross profit | 28,6 | 29,5 | -3.0% |
| Gross margin % | 69.7% | 66.9% | - |
| Operating profit – EBIT | 3,4 | 2,3 | +46.0% |
| Operating margin – EBIT % | 8.3% | 5.3% | - |
| Net profit (Group share) | 3,7 | 10,6 | -65.2% |
| Basic earnings per share (Group share) | 0,26 | 0,78 | -66.6% |
COMMENTS
Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO comments: " I am really pleased with the H1 results and with the level of order intake since the beginning of the year I’m also pleased to announce a series of major products releases and upgrades including the new software-defined server XS-NEO combined with the first new web-based application of EVS Live production Asset Management offering a new multi-camera ingest solution for studio operations; the new IP-based live media-sharing network (XNet-VIA) for high-bandwidth live production control (Full HD and UHD), as well as latest evolution of X-One unified live production system offering new replay control, clip and highlights management capabilities.
Thanks to two significant orders received in July for global major sports events in 2020, our customers have confirmed one more time the recognition of EVS leadership in delivering such complex events. It also highlights the efforts and works made by EVS teams in developing innovative solutions for these events.
Thanks to a good funnel, we expect a continued momentum and stronger second half in a remaining challenging market condition. I am also pleased to continue our collaboration with NEP, which has once again placed its trust in EVS to renew its US production activities. This is one of the elements that allow us to remain confident in the achievement of our earlier announced revenue guidance”.
Commenting on the results and prospects, Yvan Absil, CFO, said: “Despite a slow start of the year and thanks to strong sales actions and strict cost management we are pleased to report revenue increase of 12% YoY excluding big events and significant operating expenses reduction in the first half of the year. For 2019, we expect revenues to be between EUR 100 million and EUR 120 million. Thanks to continued strong management of our expenses and headcount, we adjust our OPEX evolution guidance as we now expect operating expenses to be stable Year over Year without impacting our delivery capabilities”.
Conference call
EVS will hold a conference call in English today at 3.00 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: 702 53 39
Corporate Calendar:
September 13-17: IBC tradeshow in Amsterdam (NL)
November 14, 2019: 3Q19 Trading updates
| For more information, please contact: Yvan ABSIL, CFO Pierre SOLEIL, Investor Relations & Corporate Communication Manager EVS Broadcast Equipment S.A., Liege Science Park, 13 rue du Bois Saint-Jean, B-4102 Seraing, Belgium Tel: +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 technology leader for live video production. The company introduced Live Slow Motion replay in 1994, and has continued to build on its reputation for quality and reliability with solutions that enhance live sports, entertainment and news content. Innovations – such as the C-Cast multimedia platform and DYVI IT-based switcher – are raising the bar for live production enrichment, management and distribution. Broadcasters, rights owners, producers and venues alike use EVS to maximize the value of their productions and increase revenue streams. The company is headquartered in Belgium with around 500 employees in 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 |
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