EVS Broadcast Equipment : reports second quarter 2018 results

Publication on August 30, 2018, before market opening
Regulated information - Press release quarterly results
EVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)

Financial performance

• Low revenue in the first six months of the year (EUR 44.1 million in 1H18, -16.5% compared to 1H17)
• Operating expenses under control (+2.5% in 1H18 compared with 1H17), highlighting continued strict cost management
• EBIT margin of 5.3% in 1H18 due to expected low sales
• One-time positive tax gain of EUR 6.6 million following the implementation of the innovation box regime in Belgium
• Net profit increase by 16.4% to EUR 10.6 million in 1H18
   
   

Outlook

• Order book of EUR 44.3 million on August 25, 2018 (to be recognized in revenue in 2018)
  • +18.4% vs last year (+7.9%, excl. big event rentals)
• Additional EUR 8.3 million orders to be invoiced in 2019 and beyond
• Revenue are expected to be in the EUR 115 million to EUR 130 million range in 2018
• Opex are expected to grow in a moderate way due to investments in R&D for new product developments, in addition to the structural salary increases in Belgium

KEY FIGURES

Unaudited			EUR millions, except earnings per share expressed in EUR	Reviewed
2Q18	2Q17	2Q18/2Q17		1H18	1H17	1H18/1H17
21.2	28.3	-24.8%	Revenue	44.1	52.8	-16.5%
13.8	21.1	-34.7%	Gross profit	29.5	38.3	-23.0%
64.8%	74.5%	-	Gross margin %	66.9%	72.5%	-
0.5	7.9	-93.8%	Operating profit - EBIT	2.3	12.8	-81.8%
2.3%	28.0%	-	Operating margin - EBIT %	5.3%	24.3%	-
8.4	5.5	+52.4%	Net profit (Group share)	10.6	9.1	+16.4%
0.62	0.41	+52.4%	Basic earnings per share (Group share)	0.78	0.67	+16.2%

COMMENTS
"The broadcast industry continues to be challenging with longer investment cycles, and our first half 2018 performance reflects these conditions. We maintain our market leader position, and see continued momentum on the new products (including Dyvi and Xeebra) and around the recent launches of the XT-VIA and X-One. We expect an acceleration of the business in this second half and hence remain confident in the achievement of our earlier announced revenue guidance," said Pierre De Muelenaere, Chairman of the Board and Interim CEO of EVS.

Commenting on the results and prospects, Yvan Absil, CFO, said: "The low operating profitability of the first six months is mainly due to the low revenue during the period combined with a less favorable product mix. The implementation of the innovation box regime in Belgium resulted in a one-time tax deduction recorded in this second quarter. EVS invests more than EUR 25 million in R&D annually, and this kind of initiative reinforces us in our willingness to build strong R&D capabilities in Belgium, next to our other R&D centers abroad. For 2018, we confirm our revenue and opex evolution guidance."

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: [phone] (United Kingdom), [phone] (Belgium), [phone] (United States)
Conference call ID: 5769302

Corporate Calendar:
September 14-18: IBC tradeshow in Amsterdam (NL)
November 15, 2018: 3Q18 results

For more information, please contact:   Yvan ABSIL, CFO Geoffroy d'OULTREMONT, Vice President  Investor Relations & Corporate Communication EVS Broadcast Equipment S.A., Liege Science Park, 13 rue du Bois Saint-Jean, B-4102 Seraing, Belgium Tel: [phone].  E-mail:[e-mail]; 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

Press release in pdf format

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Source: EVS Broadcast Equipment via Globenewswire