Vitec 2011 Results: Videocom Up 12 Percent, Bexel Down 7.9 Percent Versus 2010

Posted by Joe Zaller
Mar 05 2012

UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced that recorded pre-tax profit of £33m on revenue for the full year 2011 was £351m

As shown below in a slide from the company’s investor presentation, Vitec 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, which sell primarily to broadcast industry customers.  The Services Division is comprised entirely of equipment rental specialist Bexel.

 

Videocom Revenue Grows 12 Percent in 2011

Videocom revenue for 2011 was £136.2m, up 12% versus 2010.  Revenue grew 18.4% on an organic basis after adjusting for the acquisition of antennae specialist Haigh-Farr and the disposal of Clear-Com in the prior year.  Operating profit for the year was £12.7m, up 51.2% or 31.0% in organic constant currency terms.

The company said that sales of camera supports, prompters and bags products grew strongly in 2011, and that it received significant orders for the Sachtler Ace range of supports that was launched in September 2011 specifically for the business and industry user.

The continued adoption of LED lighting technology by major US, European and Asian broadcasters in both studio and news gathering applications was a strong driver for the company’s Litepanels business, which Vitec said grew by approximately 20% in 2011.

Vitec also said that its Anton/Bauer business grew strongly in 2011 driven by sales of batteries and chargers for traditional broadcast and film users, as well as achieving initial success in a new market of supplying batteries and chargers to power carts in hospitals.

The company also said that its IMT microwave systems business continued to win business in the broadcast market with noteworthy success in the US, Turkey, Russia and Brazil; and that its sales were up in the sports and entertainment segment in the US where this equipment is used to interview teams and their fans.

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Bexel Declines 7.9 Percent in 2011, Re-Focused for 2012

2011 revenue from Bexel, Vitec’s Services Division, was £31.6m, down 7.9% versus 2010, when the Winter Olympics were a strong revenue driver for Bexel. Operating profit for the year was £600,000, up from £400,000 in 2010 and included higher asset sales including one-off revenue and profits from the sale of a large system to a major customer.

Vitec says undertook a reorganization of Bexel in 2011, which included the closure of the Seattle branch office, the consolidation of engineering and logistics resources, and the establishment of a national sales team in the US to focus on key accounts.  The company says these changes will help Bexel to focus on large events such as major sporting and entertainment events, and to better serve of US and international clients.

Vitec says Bexel strengthen its relationship with US sports broadcaster ESPN during 2011, and that it is prepared for the 2012 Olympics in London.

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Related Content:

Press Release: The Vitec Group plc 2011 Full Year Results

Vitec 2011 Investor Presentation

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

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

 

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