Vitec Says Videocom Increases 8.7 Percent, Bexel Declines 22.8 Percent During First Six Months of 2011

Posted by Joe Zaller
Aug 16 2011

UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced its financial results for the first six months of 2011.

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 Up, Driven by Success in Russia, the Middle East and Asia

For the first half of 2011 Vitec’s Videocom revenue was £65.9, an increase of 8.7% versus the first six months of 2010. After subtracting a £5.3m contribution from Clear-Com, which was sold to HME in April 2010, organic sales growth at constant exchange rates increased by 22.8%, with double digit sales growth in all business units in the division.

Operating profit for the first six months of 2011 was £6m, an increase of 62.2% versus last year, and an increase of 42.5% in organic terms at constant exchange rates.

Operating margins for first half of the year were 9.1%, an improvement of 3% versus last year, or an improvement of 1.2% in organic terms at constant exchange rates.

The company said its broadcast business grew, particularly in Russia, the Middle East and Asia. However, Vitec’s broadcast sales and rentals in the US market were less buoyant due to “uncertainties over the economy.”

Camera support brands (Vinten, Sachtler and O’Connor) “enjoyed good growth in both the studio and on-location production segments”, driven by capital expenditure projects in the Middle East and Asia.

Robotics (Vinten Radamec) had several strategic wins during the period, including Sky Sports News and France 3.

Vitec said its Litepanels business had strong growth during the period, driven by an increasing number of customers changing from  conventional tungsten lights to new energy and environmentally efficient LED lights especially in the US.

Battery specials Anton/Bauer experienced steady growth in its traditional broadcast and film markets, especially in EMEA, and is “making good progress in identifying and addressing opportunities for the supply of batteries and chargers in the medical market.”

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Services Division — Bexel

Vitec said that revenue at Bexel was £14.2m during the first half of 2011m a drop of 22.8% versus last year (when it reported strong revenues from the Vancouver Olympics). Bexel’s operating profit ropped by £200,000 to break-even.

Significant Bexel contracts during the first half of 2011 include projects for Endemol, Fremantle and ESPN.

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Company CEO Stephen Bird said: “These results confirm that our strategy and its execution in 2011 are on track, which together with continued strengthening of our businesses in the Broadcast and Video and Photographic markets, have enabled us to grow the revenue and operating profits strongly in the first half. Our core Broadcast business has achieved an encouraging sales performance particularly into Russia, the Middle East and Asia.”

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Related Content:

Press Release: The Vitec Group – Half Year Results to 30 June 2011

Vitec First Half 2011 Investor Presentation

Vitec Interim Management Statement, May 2011

Vitec 2010 Full Year results presentation

Vitec Announces 2010 Results: VideoCom Revenue Falls, Services Post Strong Increase

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

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