Technicolor announces results for 3Q 2015

Tuesday, October 20th, 2015
Technicolor logo

PARIS, France — Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today its revenues for the third quarter of 2015.

Connected Home revenues stood at €984 million in the first nine months of 2015, down 3.9% at current currency compared to the first nine months of 2014. Connected Home has outperformed the market in the first nine months of 2015, recording a solid level of activity despite mixed market conditions and persistent weakness in North America, primarily driven by the consolidation movements experienced in the industry. The Group is confident in its capacity to outperform the market on a full year basis.

Q3 2015 Regional Highlights

  • In North America, revenues decreased significantly in the third quarter of 2015 compared to the third quarter of 2014. Product deliveries in the period were affected by ongoing cautious customer approach towards orders and inventory management related to pending industry consolidation, particularly in the Satellite segment, as well as by the phasing-out in the first quarter of 2015 of a Cable device that was shipped in large volumes in the third quarter of 2014. Overall product mix improved however strongly year-on-year, driven mainly by an increased contribution of higher-end Cable devices in the sales mix.
  • In Latin America, revenues declined in the third quarter of 2015 compared to the third quarter of 2014, reflecting a drop in product shipments, after four consecutive quarters of year-on-year growth. Product deliveries in the period were primarily affected by tougher macroeconomic conditions in Brazil, as reflected by the devaluation of the Brazilian real against the US$, which led to high inventory levels.
  • In Europe, Middle East and Africa, revenues were up double-digit in the third quarter of 2015 compared to the third quarter of 2014, driven by stronger product shipments and significantly improved overall product mix. Connected Home benefited from the ramp-up of a new OTT set top box introduced at a key French customer, a device that the Group has started to ship across additional international markets. The segment’s performance was also supported by higher deliveries of OTT and broadband devices to Telecom customers, as well as by increased volumes of Cable gateways, driven by Western Europe.
  • In Asia-Pacific, revenues rose significantly in the third quarter of 2015 compared to the third quarter of 2014, as a result of a strong double-digit increase in product shipments and a material improvement in overall product mix. Volume growth in the period reflected a rebound in set top box shipments to Indian customers as the digitization program has resumed, as well as higher deliveries of Cable and Telecom broadband devices, notably in China.