Technicolor slumps as supply chain constraints continue to weigh

Vantiva SA

05/11/2021 10:22

** Shares in French digital production and media group
Technicolor  TCH.PA  slump over 6% after the company posted
decreasing 9-month revenue  urn:newsml:reuters.com:*:nASA02QMX
    ** The group mentions strong demand for original content and
high-performance broadband products, but points to continuing
pandemic-driven supply constraints
    ** For the Connected Home division, while demand remains
strong, the main issue is fulfilling the strong order book given
global component shortages and supply chain issues, Edison
Group's analyst Fiona Orford-Williams says
    ** "This is unlikely to resolve short-term and, although
management reports the situation stabilising in Q4, they see
issues continuing through 2022 and into 2023," Orford-Williams 
adds 
    ** "Q3 results show divergent performances," she says, with 
Technicolor Creative Studios benefiting from strong demand and
sharply recovering in revenue and profitability as the film and
TV industry rebounds post pandemic lockdowns
    ** Technicolor stock price is at its lowest since
early-April, and on track for its worst one-day drop since
mid-July

 (Reporting by Federica Mileo)
 ((Federica.mileo@thomsonreuters.com))