Revenue growth of 3.8% year-over-year at constant currency
Solid performance across the Group's businesses
Continued optimization of the financial structure
ISSY-LES-MOULINEAUX CEDEX, France, April 25, 2014 (GLOBE NEWSWIRE) -- Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) today announces its revenues for the first quarter of 2014.
"Technicolor delivered another strong quarter of performance," said Frederic Rose, Technicolor Chief Executive Officer. "We made good progress in the first quarter in laying the foundation for delivering continued strong performance beyond 2015 with the signature of a major smartphone licensing agreement, record orders in Connected Home and Production Services and continued focus on internal IP generation across all activities. This performance has been recognized by the rating agencies and enables us to continue improving our balance sheet structure."
Continuing solid execution, with year-over-year revenue growth at constant rate of 1.4% and of 3.8% excluding legacy activities.
Technology: another quarter of revenues above €100 million, supported by double-digit year-on-year growth in direct licensing programs, with a sustained level of new contract and renewals, offset by softness in MPEG LA revenues.
Entertainment Services: good performance in Production Services, with double-digit year-over-year revenue growth in VFX, offset by unfavorable comparison to last year's record slate in DVD Services.
Connected Home: eighth straight quarter of double-digit year-over-year revenue growth, driven by strong volume increase in developed markets and significantly improved overall product mix.
Rating upgrades by S&P and Moody's reflecting their view that the Group's performance has improved over the last two years and should continue to strengthen in the coming years.
Launch of a repricing that will lead to a significant reduction in the Group's annual interest expenses.
Sustained pace of innovation across the Group, building on its leadership in advanced video and audio technologies to participate in defining new models for content creation, management and distribution.
2014 guidance confirmed
· Adjusted EBITDA between €550million and €575million;
· Group free cash flow between €180million and €200million, notwithstanding higher cash restructuring charges compared with 2013;
· Positive net income;
· Net debt to Adjusted EBITDA ratio below 1.2x at end-December 2014.
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