Thomson Full Year 2008 Results

Monday, March 9th, 2009 
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PARIS — The Board of Directors of Thomson (Euronext Paris: 18453, NYSE: TMS), met today to approve the Group’s full year 2008 results.

  • Full year 2008 net loss amounted to € 1.9 billion, including a negative impact of € 1.6 billion of goodwill and other impairments, write-offs and restructuring charges.
  • The Group has launched operational efficiency programs to achieve cost savings in the range of € 120 million per year. These savings are expected to start materializing in 2009, with a full impact by 2011.
  • The Group has decided to refocus on its content creator customer base, leveraging its world leader market position in this area, the strength of the Technicolor brand with film and television studios, its in-home delivery assets (set-top-boxes and gateways) and its research and licensing capabilities.

Digital distribution

The Group will combine its electronic content distribution services capability with its set-top box and gateway business to capture growth in the nascent market of on-line premium video content distribution through network service providers. The Group’s presence in the set-top box and gateway market represents a significant edge to support film and television studios that aim to take a stronger position in the value chain for electronic content distribution to the end-consumer.

Thomson Grass Valley (formerly Systems)

In its access product business, the Group recorded strong growth in shipments (+32% YoY), driven by market share gains and improved mix, especially with key Satellite and Cable customers in the US. Overall, 2008 revenues reflected the resilience of the Group’s access products activities, whilst more difficult economic conditions weighed on customer spending in Broadcast equipment.

Total of 10.0m access products shipped (+32% YoY), with:

  • 3.1m Satellite set-top boxes (+14% YoY) – reflecting higher shipments to DIRECTV (HD-PVRs)
  • 3.6m Cable set-top boxes and modems (+111% YoY) – driven by strong shipments to Comcast (DTAs)
  • 3.4m Telecom modems and IP/gateways (+6% YoY)

Access products (millions of units):

            Q1 07  Q2 07  Q3 07  Q4 07   2007   Q1 08  Q2 08  Q3 08  Q4 08   2008
            -----  -----  -----  -----  -----   -----  -----  -----  -----  -----
Cable         1.3    1.2    1.0    1.7    5.2     1.0    1.5    1.4    3.6    7.5
Satellite     2.1    2.5    2.7    2.7   10.1     2.2    2.8    2.5    3.1   10.5
Telecom       2.6    2.6    2.6    3.2   11.1     2.3    2.9    2.5    3.4   11.1
            -----  -----  -----  -----  -----   -----  -----  -----  -----  -----
  Total       6.1    6.4    6.3    7.6   26.4     5.4    7.3    6.3   10.0   29.1

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