Posts Tagged ‘Screenvision’

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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