Technicolor Creative Studios shares lost ground on the Paris Bourse on Tuesday, posting one of the biggest declines in the CAC Mid & Small index, following a new earnings warning.

At around 10:35 a.m., the stock was down 2.1%, while the Paris market was up 0.1%.

In a press release, the creative technologies specialist explains that it has experienced new operational challenges in recent months, and stresses that the actions deployed since the fourth quarter of 2022 will only gradually materialize this year.

As a result, its 2022 and 2023 results will still be impacted by additional costs, which means that the group now expects its adjusted Ebitda for 2022 to be around 20 million euros.

Last November, TCS had already revised its expectations downwards to target adjusted Ebitda of between 45 and 65 million euros in 2022.

The Group also expects its adjusted Ebitda for 2023 to be below its previous outlook, i.e. stable or slightly up in 2023 compared with 2022.

In addition, the company - which expects 2023 to be a year of 'transition' - has decided to withdraw its outlook for 2023, while forecasting a strong rebound in 2024 before a return to normalized profitability in 2025.

Against this difficult backdrop, Technicolor Creative Studios has appointed Caroline Parot as interim CEO, with the task of accelerating the group's transformation and implementing the operational improvement program.

At the same time, the group says it is conducting 'constructive' discussions with its main creditors and certain key shareholders, in order to readjust its debt and capital structure, with a view to meeting its liquidity needs from the second quarter of 2023.

Copyright (c) 2023 CercleFinance.com. All rights reserved.