Trading update on sales and orders for 2Q08 - R...
* Record 2Q08 revenue of EUR 34.4 million, +47.7% vs. 2Q07 (+52.2%
at constant exchange rate)
* Strong traction from big sporting events, and major contract
signed with Presteigne Charter for EUR 5 million
* Europe up 127.9%, Asia & Pacific up 56.3%, America down 27.1%
(16.1% at constant exchange rate) over 2Q07
* Open order book at July 1, 2008 of EUR 23.2 million, +41.2%,
including EUR 6.5 million rentals for the Olympics in China and
overseas
* Studio represents 53.4% of that order book
* New 2008 guidance: double-digit growth, driven by big sport
events and studio acceleration
Liège (Belgium), July 17, 2008, EVS Broadcast Equipment S.A.
(Euronext Brussels: EVS.BR) (Pinksheets: EVBEF), the leader in
Professional Digital Video applications for Live, Near-Live and
Studio TV Production, today reported its revenue for the second
quarter ("2Q08") and the first half ("1H08) of 2008.
Key Highlights
Pierre L'Hoest, CEO of EVS said: "The company experiences a strong
momentum during this summer due to our strong involvement inside
major sporting events. We are proud about the performance realized by
our teams for the UEFA EURO2008TM. This kind of event is the
achievement of a long process, including the design of the workflow,
the development of the appropriate hardware and software, the set up
of the media server in Vienna, the training of hundreds of new
operators, and the support to the UMET and the different UEFA
broadcast partners present during the event. This prefigures the huge
system we are currently deploying with our customers for the
Olympics, that is three times bigger."
Commenting on the new guidance, Jacques Galloy, CFO added: "Based on
the strong ongoing order intake, we have increased our guidance to a
double digit growth year. This summer's big sporting events have
catalyzed our business over the last 12 months but we feel that this
good business trend should continue. For instance, diversified studio
segment sales are expected to exceed 40% growth this year."
Revenue
EVS Broadcast revenue reached EUR 34.4 million in 2Q08, an increase
of 47.7% at actual exchange rates (+52.2% at constant exchange rate).
In the outside broadcast segment, sales grew by 13.6% to EUR 21.1
million. The studio sales jumped by 181.6% to EUR 13.3 million, which
represented 38.7% of total 2Q08 sales, compared to 20.3% in 2Q07.
+-------------------------------------------------------------------+
| 2Q08 | 2Q07 | % 2Q08 / | Revenue - EUR | 1H08 | 1H07 | % 1H08 / |
| | | 2Q07 | millions (1) | | | 1H07 |
|------+------+----------+-----------------+------+------+----------|
| 34.4 | 23.3 | +47.7% | Total reported | 59.8 | 43.2 | +38.6% |
|------+------+----------+-----------------+------+------+----------|
| | | | Total at | | | |
| 35.5 | 23.3 | +52.2% | constant | 61.9 | 43.2 | +43.3% |
| | | | exchange rate | | | |
|------+------+----------+-----------------+------+------+----------|
| | | | Total at | | | |
| | | | constant | | | |
| 33.4 | 23.3 | +43.5% | exchange rate | 59.9 | 43.2 | +38.7% |
| | | | excluding big | | | |
| | | | events rentals | | | |
+-------------------------------------------------------------------+
(1) Refer to the geographical segmentation in annex.
Europe, Middle-East and Africa ("EMEA") revenue increased by 127.9%
in 2Q08 to EUR 18.9 million. This confirms the steady developments of
the European market, including Eastern Europe. This strong
performance of 2Q08 has benefited from the momentum around this
summer's big events, especially the EUR 2 million rental agreement
for the UEFA EURO2008(TM) soccer cup. Feedback from the broadcasters
present at the UEFA EURO2008(TM) was very positive, and the EVS
solutions have played a key role in the success of the tournament
broadcast operations through the UEFA's LIVEX(TM) concept. The second
quarter has also benefited from the large equipment sale agreement
with Presteigne Charter for about EUR 5 million, which was split
between the EMEA and the APAC regions. Studio sales grew
significantly for various applications like drama production, live
entertainement shows and near-live programming. Sales in EMEA are
clearly supported by a lot of HDTV initiatives that are being
launched by various broadcasters, IPTV, cable, or satellite players
across Europe, around the European Soccer Finals and Beijing 2008.
America's revenue ("NALA") decreased by 27.1% (-16.1% at constant
exchange rate) to EUR 6.9 million, representing 20.2% of group sales
in 2Q08. The replacement cycle of Outside Broadcast trucks migrating
to HDTV remains a key sales driver, together with important studio
project wins with premium customers. For instance, a major network
bought additional EVS solutions to expand their studio broadcast
center and add more HD equipment for the next football season. Full
year 2008 sales in NALA expressed in USD are expected to remain
stable compared to 2007.
EVS revenue increased by 56.3% in Asia & Pacific ("APAC") to EUR 8.6
million, partially due to the major contract signed with Presteigne
Charter only a few weeks ago. APAC represents 24.9% of group revenue.
EVS teams are prepared to support the Beijing Olympics with more than
700 XT servers and hundreds of applications like Live Slow Motion,
IPDirector or CleanEdit, in China but also overseas in the home
facilities of many broadcasters that have to manage significant time
zone shifts and produce so much content in a quick process.
Outlook 2008
The open order book (to be invoiced in 2008) as of July 1, 2008
reaches EUR 23.2 million, incl EUR 6.5 million for 3Q08 big event
rentals, which is +41.2% compared to EUR 16.5 million on the same
date one year ago (hence to be invoiced in 2007). Studio orders have
a longer leadtime and represent 53.4% of the total EUR 23.2 million
open order book while they represent 36.5% of the total order intake
over the first 6 months of 2008.
In addition to the EUR 23.2 million of order book to be mainly
invoiced in 3Q08 but also in 4Q08, EVS has already orders for EUR 2.3
million that will be invoiced in 2009.
Even if the visibility remains limited as usual and the weak dollar
is not a favorable factor, based on current market conditions, the
Board remains impressed by the overall business drive and expects
2008 to be a double digit growth year, driven in particular by the
Euro2008 in Q2, the Olympics in Q3 and studio segment acceleration.
The launch of HDTV in Europe, the growing presence of EVS inside TV
studios, the worldwide globalization of sporting events and the
simulcast and catch up of live events on new media are the main
growth drivers for the future.
All numbers within this press release have not yet been audited.
Corporate Calendar:
Thursday 4 September 2008: 2Q08 revenue & earnings
12-16 September 2008: IBC TradeFair in Amsterdam (NL)
Thursday 13 November 2008: 3Q08 revenue & earnings
For more information, please contact:
Jacques GALLOY, Director & CFO
Geoffroy d'OULTREMONT, Investor Relations & Corporate Communications
Manager
EVS Broadcast Equipment S.A., Liege Science Park, 16 rue du Bois
Saint-Jean, B-4102 Ougrée (Liège), Belgium
Tel: +32 4 361 70 14. E-mail: corpcom@evs.tv; www.evs-global.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 Group
EVS Group designs, develops and markets professional digital
equipment for Television (EVS Broadcast) and Cinema (XDC). The Group
employs over 220 persons for broadcast equipment in 12 countries and
sells its products to professionals of the video and audio sectors in
more than 90 countries. EVS is a public company traded on Euronext
Brussels: EVS, ISIN: BE0003820371. For more information, refer to
www.evs-global.com
EVS Broadcast is the world leader for Live TV Production Digital Disk
Recorders and Related Software Applications, especially in the field
of sports. The company's dedicated hardware and software suite offer
a complete production platform: live slow motion (LSM), high speed
slow motion, replay only, clips generation, quick clips editing,
real-time SD/HD video files transfer, time delay, multi-camera
recording, metadata association, graphics storage and play-out,
digital transmission, multi-format ingest and play-back, audio record
& edit, webcasting, mobile phone clipping. Main software applications
like the "IP Director®" are running on the dedicated robust and
flexible hardware the "XT[2]® Platform". The world's leading
broadcasters, such as NBC, BSkyB, FOX, RTL, NHK, CANAL+, ABC, ESPN,
TF1, CCTV, PBS, CBS, BBC, ZDF, TVE and many others use EVS'
solutions.
EVS 47,20% affiliate XDC is pioneering Digital Cinema Logistics and
Play-out and operates between the movies distributors and exhibitors.
XDC has installed more than 280 digital screens throughout the world
in China, Germany, Sweden, Brazil, the United States, France,
Belgium, etc.