Vitec 2012 Results: Videocom Revenue Up 7.3 Percent, Bexel Doubles Operating Profit as Revenue Increases 4.4 Percent
UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced that its revenue for the full year 2012 was £345.3m, down 1.6% versus last year. However the company’s profit before tax and acquisition-related costs rose 10% versus 2011 to £36.2m.
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 up 7.3 Percent for the Year
Videocom revenue for 2012 was £146.2m, up 7.3% versus 2011. Organic revenue at constant currency decreased by 3.1%, due to the non-recurrence of a £4.9m sale related to FCC wireless auctions. Videocom operating profit for the year was £15.8m, up 24.4% versus last year. Videocom operating margin was 10.8%, up 1.5 percentage points versus 2011.
The company said that demand for Videocom products was driven by greater use of video capture, investments by broadcasters and technology drivers, as well as by the 2012 Olympics and the US elections. However, it cautioned that Videocom order visibility is limited.
Vitec Broadcast Products
Vitec said that its acquisition of Haigh-Farr in December 2011 and Camera Corps in April 2012 made “notable contributions to 2012 revenue”
The company said that Camera Corps Camera Corps which provides small systems that are predominantly used at major sporting events, benefitted from the UEFA Euro 2012 football championships and more significantly the London 2012 Olympics, and delivered “a better than expected post-acquisition performance.”
Camera Corps contributed £7m of revenue in 2012 (5% of total Videocom revenue), and an operating profit of £2.3m (15% of total Videocom operating profit). Vitec said that Camera Corps full year 2012 revenue and operating profit were £7.6m and £2.3m respectively.
The company said that its Haigh-Farr antenna business also performed ahead of pre-acquisition expectations, and that it paid out £1.2m of contingent earn-out payments to the division’s former owners.
Vitec said there it experienced growth in sales of outside broadcast and video camera supports as well as our range of bags for this market. However, demand for premium studio and robotic camera supports in the key US broadcast market was affected by budget constraints at the major studios and there was no repeat of the sizeable 2011 contracts to supply television studios in Asia.
Litepanels benefitted from the launch of new products that broadened its product ranges and enabled it to maintain our leading position in the market.
Anton/Bauer consistently overall and made good progress in supplying batteries and chargers to power medical carts in hospitals.
The IMT microwave transmitter and receiver business, had what the company called “a challenging year,” and Vitec said there is limited order visibility in this market due to a low level of investment by US Government customers.
Vitec said that it had taken a one-off, non-cash, £8.8m impairment charge to fully impair its investment in IMT.
Bexel 2012 Revenue Up 4.4 Percent, Operating Profit Doubles
2012 revenue from Bexel, Vitec’s Services Division, was £33m, up 4.4% versus 2011. The company attributed the y-y gain to the 2012 Olympics and the US elections, and highlighted the fact that Bexl plays an “important role in driving sales of other divisions’ products.”
Compared to last year, Bexel’s 2012 operating doubled to £1.2m, and its operating margin increased by 1.7 percentage points to 3.6%.
Vitec announced last year that it would re-organize Bexel to help it focus on larger events, where higher levels of service are most needed, and to secure multi-year contracts for these events. The company now says it is focus the Bexel business on increasing margins and cost control.
Press Release: The Vitec Group PLC – 2012 Full Year Results
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