Posts Tagged ‘Frederic Rose’

More Broadcast Industry M&A: Technicolor Sells Playout & Services Business to Ericsson

Broadcast Vendor M&A | Posted by Joe Zaller
Mar 13 2012

Technicolor announced that it is selling its broadcast services business to Ericsson for €19m.  The deal also includes a potential earn-out of up to €9 million based on 2015 revenues of the broadcast services business.  The deal is scheduled to close in mid-2012.

Technicolor’s Broadcast Services activity has 900 employees in France, The UK and the Netherlands.  It provides managed play-out services, live production support and media asset management services.

Technicolor says the transaction will contribute to its ongoing efforts to leverage its existing portfolio, optimize its investments allocation and free cash flow generation, and help reduce its debt level.

This is the latest of broadcast-related divestitures by Technicolor, and the first one for which it appears to have received any cash up front as part of the deal.  The company’s previous divestitures which include the sale its Grass Valley head-end business, the sale of its transmission business to PARTER Capital Group, and the sale of its Grass Valley broadcast business to Francisco Partners, were all done for “nominal consideration”.

Technicolor CEO Frederic Rose said: “This transaction is consistent with Technicolor’s strategy to focus on media monetization solutions, new growth businesses, and strengthen its balance sheet. For Ericsson, managed services are a core business and after completion of this divesture, the Broadcast Services activity will benefit from the company’s know-how and global scale necessary to remain a key player in the worldwide Broadcast industry”.

“As the TV industry is undergoing fundamental changes with the transition to multi-platform, on-demand television, teaming up with a trusted partner enables broadcasters to meet the increasing commercial and technological complexity and competition in the TV market”, said Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services, Ericsson. “We combine our service and technology leadership with strategic investments in playout operations, broadcast capability and competence.”

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Related Content:

Press Release: Technicolor to sell its Broadcast Services activity to Ericsson

More Broadcast Vendor M&A: Technicolor Closes Deal to Dispose of Grass Valley Transmission Business

Technicolor Receives Binding Offer for Video Head-End Business

Technicolor decides not to sell digital signage provider PRN

Technicolor completes sale of Grass Valley to Francisco Partners

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Technicolor Finishes Year on High Note as Q4 Revenue Jumps 21 Percent

Broadcast technology vendor financials | Posted by Joe Zaller
Mar 03 2011

Technicolor announced that its revenue for the fourth quarter of 2010 was €1.15Bn, up 21.4% vs. Q4 2009, and up 27% versus the previous quarter, with improved trends across all activities.  All operating businesses showed strong growth during the quarter, led by Technology which posted revenues 40% higher than in the same period a year ago thanks to increased licensing activities.   The Entertainment Services and Digital Delivery segments grew at 28.5% and 12.5% respectively versus the fourth quarter of 2009.

For the full year, Technicolor posted a net loss of €69m on revenue of €3,6Bn (down 1.2% versus 2009).  The net loss includes items related to the completion of the debt restructuring and of the disposal program, as well as impairments.  Excluding the impact of discontinued operations (primarily Grass Valley) the company posted a net profit of €156m.

Commenting on the results, company CEO Frederic Rose said “Our strong second half 2010 performance provide a good foundation for further organic growth, based on our strength in innovation and by taking advantage of technological disruption. Now that our restructuring phase is over, we will continue our investments in 2011 to ensure that Technicolor remains at the centre of the technological innovation in the migration of the media and entertainment industry to an all-digital world. In parallel, we will continue to focus on our operational performance and profitability to ensure that we drive profitable growth and increase our cash generation.”

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Priorities and objectives for 2011

In its presentation to equity analysts, company management said that they intend to accelerate organic investments in 2011 in the following areas:

  • Technology Licensing – MediaNavi – following a successful service introduction at CES and the announcement of a trial with TalkTalk in the UK, Techncolor is now engaged in discussions with a number of additional customers and partners. In this context, Technicolor expects to accelerate related research investments in 2011.

 

  • Digital Home – Technicolor was recently been awarded its first material order from a tier 1 European operator for a next generation set-top box based on our new software platform. Additional customers are also expected in 2011. The Group has therefore accelerated its software development investments to ensure that it is able to deliver material volumes in 2012.

  

  • Digital Production – The company will accelerate investments in this area in 2011 to both increase capacity and develop new software with the objective to more than double turnover by 2013. Additional physical expansions will occur principally in London, Vancouver, New York and Bangalore.

 

  • Digital Cinema – Technicolor says it now has more than 60% market share in North American Digital Cinema distribution, and that it intends accelerate investments in this area to expand its satellite network with a view to reach over 1,500 sites by end 2012.

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You can read the full Technicolor Q4 and full year 2010 earnings release here.

The company’s presentation to equity analysts is here

Information on the company Q3 2010 results are here.

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Technicolor Announces Q3 Results. Grass Valley Sale Progressing Towards End of Year Close. Remaining Business Units Post Double Digit Revenue Growth.

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Oct 21 2010

Broadcast and creative services provider Technicolor announced its Q3 results today.

Revenue for the quarter was €906m, up 12.9% at current exchange rates versus the same period a year ago.  At a constant exchange rate, revenues were up 7.2%.

These numbers exclude discontinued operations– i.e. Grass Valley and the Media Networks (PRN, Screenvision) businesses.  However the company did briefly discuss these businesses in its earnings announcement:

Commenting on the previously announced sale of the Grass Valley broadcast business to Francisco Partners, Technicolor said that it has “progressed on the carve out and consultation actions required to close the sale of its Broadcast activities by the end of the year,” and that “consultations of workers representatives for Grass Valley restructuring have been finalized, including in France.”

The company recently announced that it had sold the majority of its 50% stake in Screenvision US to Shamrock Capital Growth Fund II, in return for $60 million in cash that will be applied to the Disposal Proceeds Notes issued as part of the financial restructuring closed in the first half of 2010.

Technicolor said that each of its three remaining business units all enjoyed double digit growth during the quarter, and provided the following detail:

  • The technology BU benefited from a strong increase in revenues from MPEG LA, driven by growth in consumer electronic products and by the outcome of audits of past product volumes for certain licensees.
  • The Entertainment Services BU had growth across all activities except photochemical Film, mainly as a result of higher level of activity in Creation Services and improved volumes in DVD Services, driven by the start of the Warner Bros. agreement in August along with continued growth in overall Blu-ray™ volumes and improved market trends in DVD.
  • Digital Delivery revenues increased compared with the same period last year, reflecting notably strong volume growth in Connect and Media Services.

 

Commenting on the results, company CEO Frederic Rose said “Our ability to generate growth in all of our businesses in the third quarter has been driven by the Group’s refocus. Also, the disposal of Screenvision and the announcement of the sale of Broadcast in the third quarter confirm that we are delivering on our disposal program. We are well on track to deliver on our 2010 objectives.”

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You can read the full Technicolor Q3 earnings announcement here.

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Having Found a Buyer For Grass Valley, Technicolor Now Sells Majority of its Stake in Screenvision

broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Sep 27 2010

As part of its previously published strategy of refocusing its efforts on content creators and network service providers, Technicolor announced today that it has sold the majority of its ownership stake in cinema advertising company Screenvision US for $60m in cash.

The buyer is the Shamrock Capital Growth Fund II, a private equity fund focused on media, entertainment and communications.

Technicolor, which called the sale “another important milestone in our disposal program,” says it will apply the proceeds of the transaction towards repayment of its Disposal Proceeds Notes (DPN), which totaled €260m as of the company’s last earnings release.  Technicolor’s “disposal program” includes the previously announced deal whereby Francisco Partners has agreed to acquire Grass Valley.

Under the terms of the deal, Technicolor will receive $60m in cash in exchange for a portion of its 50% ownership in Screenvision, which was previously a joint-venture between UK broadcaster ITV plc and Technicolor. 

Technicolor will retain an 18.8% interest in a newly-formed Screenvision holding company, along with one seat on the new company’s board of directors.

Interestingly, Technicolor will continue to provide services to Screenvision.  According to Technicolor CEO Frederic Rose, “We will keep a minority stake in Screenvision due to our close business relationship and will continue to be Screenvision’s provider of both film and digital services.”  According to the company’s press release, the film processing & distribution agreement extends through end of life.

The transaction is pending regulatory approval and customary closing conditions and is expected to close in the fourth quarter 2010.

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You can read the full Technicolor announcement of the sale here.

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