Vitec Plc Reports 1H 2010 Results — Videocom Revenue Down 18%, Bexel Revenue up 45%

Posted by Joe Zaller
Aug 25 2010

UK-based Vitec Plc, which owns a large number of brands in the broadcast industry, reported its financial results for the first six months of 2010.

The company operates in several markets, including broadcast, photographic and government / military.  This post looks only at those that relate to the broadcast industry – the company’s “Videocom” and “Services” divisions.

Vitec’s Videocom division is comprised of a dozen brands that serve various parts of the broadcast industry: Anton/Bauer, Autoscript, The Camera Store, Litepanels, Microwave Service Company, Nucomm, OConnor, Petrol Bags, RF Central, Sachtler, Vinten and Vinten Radamec.

The company’s Services division is composed solely of broadcast rental & services provider Bexel.

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Videocom Revenue Down 18%

The company said that demand in the broadcast segment strengthened during the first six months of 2010, following a 25% constant exchange rate decline in sales during the same period a year ago.  Broadcast revenue grew in all regions, but particularly in Asia and Europe, driven in part by the World Cup.

Revenue in the Videocom division dropped 18% during the first half of 2010 versus the same period a year ago.  Operating profit increased by 5.7% to £3.7 million and decreased by 15.8% in organic terms at constant exchange rates. Operating margin increased by 1.4pts to 6.1% and decreased by 0.4pts in organic terms at constant exchange rates.

On the broadcast side, the company also announced it is creating a new business unit, Vitec Group Tecnologias Ltda, in Sao Paolo Brazil, in order to focus on the emerging Latin American broadcast market, which is expected to be bolstered by the 2014 World Cup and 2016 Olympic games.

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Services Division – Bexel Up 45%

Meanwhile, Vitec’s services division saw its revenue for the first half of the year increase by 45%, helped by stronger broadcast market activity, and the Vancouver Olympics.  The company said Bexel supplied more than 25 tons of broadcast hardware and installed 48 miles of fiber optic cable for the Winter Olympics in Vancouver, and entered into a multi-year agreement with Panasonic to make 3D television production equipment available for rental, promoting greater content production by TV networks.

Bexel’s operating profit increased by £0.8 million to £0.2 million and increased by £0.7 million at constant exchange rates. Operating margin increased by 5.8pts to 1.1% and at constant exchange rates it increased by 5.2pts.

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Read the full Vitec earnings press release here.

See the Vitec investor presentation here.

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