Broadcast equipment maker EVS hit by profit fall and revenue guidance (updated)

Evs SA

31/08/2017 13:55

(Adds share price, company and analyst quotes, background) 
    By Manon Jacob 
    Aug 31 (Reuters) - Broadcasting systems provider EVS 
 EVSB.BR  trimmed its 2017 revenue guidance on Thursday after 
second-quarter results hit by customer caution in its 
fast-changing sector, sending the Belgian company's shares down 
almost 14 percent. 
    The broadcast equipment industry has faced challenges on 
several fronts, with the struggle to accelerate the transition 
to digital networks coming against the backdrop of a media 
landscape made more competitive by the growth of new entrants 
such as Netflix  NFLX.O .  
    EVS, which makes both hardware and software, shaved its 
revenue guidance to between 115 million euros ($136 million) and 
125 million euros, from 115-130 million euros announced in May. 
    "New digital players and uncertainties generated by this 
changing environment keep customers cautious with their 
investments," EVS said. 
    The biggest challenge remains the transition to new network 
technologies, said Geoffroy d'Oultremont, deputy manager of 
investor relations at EVS.  
    "There is a need for a complete redesign of the way we work 
in the industry. Clients must pick up new formats and we are 
looking to accelerate the development of products to ensure new 
growth drivers in the longer term," he said. 
    Broadcast engineers are also indirectly affected by the 
pressure of cuts in advertising budgets and big media clients' 
stretched finances as they contend with the growing competition 
from the likes of Netflix. 
    "It's a whole sector trend, peers like Belden  BDC.N  , 
Harmonic  HLIT.O  and Avid  AVID.O  were also quite negative 
when they reported in August," said ING analyst Emmanuel 
Carlier.  
    EVS reported second-quarter operating income of 7.9 million 
euros and net profit of 5.5 million euros, both down by more 
than 50 percent from a year ago. 
($1 = 0.8453 euros) 
 
 (Reporting by Manon Jacob; Editing by David Goodman) 
 ((manon.jacob@thomsonreuters.com; +48 58 772 0920;)) 
 
Keywords: EVS RESULTS/