Technicolor Creative plunges after slashing 2022-2023 outlooks

Technicolor Creative Studios SA

16/11/2022 10:56

** Shares of Technicolor Creative Studios  TCHCS.PA  plunge
more than 60% after the visual effects company slashed its
earnings forecasts for 2022 and 2023
    ** It sees adjusted EBITDAaL of 45-65 mln euros ($47-68 mln)
this year vs 120-130 mln previously, and flat or moderately
higher EBITDAaL in 2023 against prior forecast of 140-160 mln
euros
    ** Brokerage Bryan, Garnier & Co highlights "significant"
profit warning, noting Technicolor has suffered major attrition
and efficiency issues, and a return to normal will take some
time
    ** The broker says the size of the revision is a "huge
surprise" as the group had reiterated FY guidance during a
September roadshow before its IPO
    ** Technicolor, which separated from the French digital
media company now renamed Vantiva  VANTI.PA , started trading in
late September
    ** "We believe the share price will be strongly and durably
hit, given the weak business outlook and the need to regain
confidence from customers, the group's increased risk profile,
and possible mistrust from investors as far as financial
communication is concerned given the late timing of the
announcement" - Bryan, Garnier & Co
($1 = 0.9596 euros)
 (Reporting by Augustin Turpin)
 ((augustin.turpin@thomsonreuters.com))