Brief: Technicolor Eyes ADJ. EBITDA Of Around EUR 270 Mln in 2021

Vantiva SA

11/03/2021 17:34

March 11 (Reuters) - TECHNICOLOR SA  TCH.PA :
    * FY REVENUE FELL 18.5 PERCENT TO 3.006 BILLION EUR
    * GROUP ISSUING GUIDANCE TOWARDS STRONG FIGURES FOR 2021,
AND IS
MAINTAINING PREVIOUSLY ISSUED 2022 GUIDANCE
    * FY21 OUTLOOK: REVENUES FROM CONTINUING OPERATIONS STABLE
VERSUS.
2020
    * FY21 OUTLOOK: ADJUSTED EBITDA OF AROUND EUR 270 MILLION
(INCL.
IFRS 16), A VERY SIGNIFICANT IMPROVEMENT FROM EUR 167 MILLION
ACHIEVED IN 2020
    * FY21 OUTLOOK: ADJUSTED EBITA OF AROUND EUR 60 MILLION
    * FY21 OUTLOOK: CONTINUING FREE CASH FLOW (BEFORE FINANCIAL
RESULTS AND TAX) AT AROUND BREAKEVEN
    * NET DEBT TO EBITDA COVENANT RATIO SHOULD REDUCE TO BELOW
4X
LEVEL AT 2021 YEAR END
    * FILM & EPISODIC VFX ACTIVITIES ARE SEEING A SIGNIFICANT
IMPROVEMENT IN FORWARD PIPELINE, AND DEMAND FOR CONNECTED HOME
BROADBAND PRODUCTS REMAIN HIGH, DESPITE EXTENDED LOCKDOWNS
AFFECTING GROUP'S TRADING ENVIRONMENT
    * DVD SERVICES AND ADVERTISING REVENUES ARE EXPECTED TO TAKE
LONGER TO RECOVER
    * IN PRODUCTION SERVICES, WORK SECURED FOR 2021 IS IN LINE
WITH
STRONG LEVEL OF ACTIVITY IN 2019
    * NOMINAL NET DEBT AS AT DECEMBER 31, 2020 REDUCED BY EUR
340
MILLION FOLLOWING COMPLETION OF FINANCIAL RESTRUCTURING
    * PRODUCTION SERVICES HAS BEEN AWARDED SEVERAL NEW MAJOR
PROJECTS,
ALREADY SECURING 75%+ OF ITS EXPECTED 2021 SALES PIPELINE FOR
FILM & EPISODIC VISUAL EFFECTS AND ANIMATION & GAMES
    * CONFIRMED PROJECTS FOR 2021 INCLUDE DISNEY'S LIVE-ACTION
ADAPTATIONS OF LITTLE MERMAID AND PINOCCHIO, AND ITS RECENTLY
ANNOUNCED LION KING PREQUEL
    * WILL CONTINUE TO IMPROVE EFFICIENCY AND PRODUCTIVITY
THROUGHOUT
PERIOD, AND IS NOW TARGETING A TOTAL OF EUR 325 MILLION IN
RUN-RATE COST SAVINGS BY 2022
    * GROUP'S AMBITION TO NORMALIZE WORKING CAPITAL DYNAMICS BY
2022
WILL BE ACHIEVED AS EARLY AS END OF Q1 OF 2021
    * WILL CONTINUE TO SIGNIFICANTLY IMPROVE ITS EBITDA, EBITA
AND FCF
IN 2021 AND 2022
    * FY EBITDA OF EUR 167 MILLION (INCLUDING IFRS 16), BETTER
THAN
EXPECTED AND HAS MORE THAN DOUBLED FROM EUR 53 MILLION IN FIRST
HALF TO EUR 115 MILLION IN SECOND HALF
    * FY CONTINUING FREE CASH FLOW (BEFORE FINANCIAL RESULTS AND
TAX)
OF €(124) MILLION IN LINE WITH GUIDANCE

Source text for Eikon:  ID:nGNE2jL1R7 
Further company coverage:  TCH.PA 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00 ;))