TECHNICOLOR : TECHNICOLOR - First quarter 2013 revenues: Robust revenue growth of 2.2% at constant scope and currency

TECHNICOLOR : TECHNICOLOR - First quarter 2013 revenues: Robust revenue growth
                    of 2.2% at constant scope and currency

                                                                 PRESS RELEASE

                         First quarter 2013 revenues:

         Robust revenue growth of 2.2% at constant scope and currency

Paris  (France),  26April2013-  The   Board  of  Directors  of   Technicolor 
(EuronextParis:TCH) met yesterday to review the Group's revenues (unaudited)
for the first quarter of 2013.

Q1 2013 revenue highlights

In the  first  quarter of  2013,  Group revenues  from  continuing  operations 
amounted to €775million, up 2.1%  at constant scope^[1] and current  currency 
and up 2.2% at constant  scope and currency compared  to the first quarter  of 
2012 revenues^[2].

  oTechnology: Another quarter of solid Licensing revenues, driven by good
    performance of the different licensing programs.
  oEntertainment Services: Slightly higher revenues year-on-year excluding
    legacy activities, with sustained growth in DVD Services revenues and
    robust level of activities in Digital Creative Services.
  oConnected Home: Strong performance in line with the momentum recorded in
    H2 2012.

In € million                         Q1 2012     Q1 2013   Change, at constant
                                                            scope and currency
                                 (unaudited) (unaudited)                   (%)
Group revenues from continuing           800         775                 +2.2%
operations
Change as reported (%)                          (3.2)%                     
Change at constant currency                     (3.1)%                     
(%)
o/w  Technology                          121         125                (1.5)%
     Change as reported (%)                      +3.3%                     
     Change at constant                         (1.5)%                     
     currency (%)
     Entertainment Services              395         376                (5.4)%
     Change as reported (%)                     (4.9)%                     
     Change at constant                         (5.4)%                     
     currency (%)
     Connected Home                      242         274                +16.3%
     Change as reported (%)                       +13%                     
     Change at constant                         +16.3%                     
     currency (%)
     Digital Delivery                     42           0                     -
     (activities disposed)

Financial Structure update

· Gross debt at the end of March 2013 amounted to €1,222 million at nominal
value and €1,107million  on an  IFRS basis,  a decrease  of respectively  €14 
million and €8 million compared to the end of December 2012, mainly  resulting 
from €36million  of  debt repayments  partly  offset  by the  impact  of  the 
appreciation of the US dollar. The level of cash was lower compared to end of
December 2012  mostly due  to debt  repayments and  the payment  of the  €38.6 
million EU antitrust fine in March 2013.

·Technicolor has put in place a new €50 million receivables backed committed
credit facility with Natixis replacing the previous facility which expired  in 
April 2013.This  new facility,  at improved  terms versus  the previous  one, 
matures in April 2016.

2013 objectives confirmed

· Growth of adj. EBITDA  of between 5% to 10%  compared to FY 2012  adj. 
EBITDA at constant scope^[3] (€498 million):

o Licensing adj. EBITDA broadly stable vs. FY 2012 assuming another year  of 
strong contracts;

o Continued improvement of  Connected Home adj.  EBITDA and return  to 
positive free cash flow generation in this segment;

o Improved profitability in  Entertainment Services, reflecting  cost 
actions implemented in H2 2012;

o Continued increase  in operating  expenses for M-GO  and new  growth 
initiatives.

· Strong growth in Free Cash  Flow, above 30%, before one-off  payments 
for legacy litigation (particularly the EU antitrust fine for €38.6million).

· Net debt  to adj. EBITDA  ratio (as per  the Group's covenants)  below 
1.25x at end-December 2013.

Frederic Rose, Chief Executive Officer of Technicolor, stated:

"This quarter was marked by robust revenue growth resulting from our continued
focus on execution. This  good performance was  driven by sustained  Licensing 
revenues, a great performance in Connected Home and revenue growth in our core
Entertainment Services. We have increased  market shares across our  different 
businesses and maintained our focus on innovation to support their growth  and 
to further strengthen our intellectual property. We are on track to deliver on
our 2013 commitments."

An analyst conference call hosted by Frederic Rose, CEO and Stéphane  Rougeot, 
CFO and SEVP Strategy will be held on Friday, 26April2013 at 4:00pm CET.

Financial Calendar

AGM 2013         May 23 2013
H1 2013 Results  July 26 2013
Q3 2013 Revenues 25 October 2013

                                     ***

Warning: Forward Looking Statements

This   press   release   contains    certain   statements   that    constitute 
"forward-looking statements", including but not limited to statements that are
predictions of or indicate future  events, trends, plans or objectives,  based 
on certain  assumptions or  which  do not  directly  relate to  historical  or 
current facts.  Such  forward-looking  statements are  based  on  management's 
current expectations and  beliefs and  are subject to  a number  of risks  and 
uncertainties that could cause  actual results to  differ materially from  the 
future results  expressed,  forecasted  or  implied  by  such  forward-looking 
statements. For  a  more complete  list  and  description of  such  risks  and 
uncertainties, refer to  Technicolor's filings  with the  French Autorité  des 
marchés financiers.

                                     ***

About Technicolor

Technicolor, a  worldwide technology  leader in  the media  and  entertainment 
sector, is at the  forefront of digital innovation.  Our world class  research 
and innovation  laboratories  enable  us  to lead  the  market  in  delivering 
advanced video services to content creators and distributors. We also  benefit 
from an extensive intellectual property portfolio focused on imaging and sound
technologies,  based  on  a  thriving  licensing  business.  Our   commitment: 
supporting the delivery of exciting new experiences for consumers in theaters,
homes and on-the-go. Euronext Paris: TCH Ÿ www.technicolor.com

Contacts

Press: +33 1 41 86 53 93

technicolorpressoffice@technicolor.com

Investor relations: +33 1 41 86 55 95

investor.relations@technicolor.com

               Review by segment for the first quarter of 2013

Technology

In € million                          Q1 2012 Q1 2013
Revenues                                  121     125
Change as reported (%)                        +3.3%
Change at constant currency (%)              (1.5)%
o/w Licensing revenues                    121     125
    Change as reported (%)                    +3.6%
    Change at constant currency (%)          (1.3)%

In the first quarter of 2013, Technology revenues amounted to €125million, up
3.3% at current currency  and down 1.5% at  constant currency compared to  the 
first quarter of 2012. This performance  reflected the quality of the  Group's 
Licensing division, whose quarterly revenues once again exceeded €100million.

Licensing

In the first quarter of 2013, Licensing revenues amounted to €125million,  up 
3.6% at current currency  compared to the first  quarter of 2012. At  constant 
currency, Licensing revenues were down  1.3% year-on-year, as softer  revenues 
generated by the MPEG LA pool were mostly offset by a sustained performance of
the other patent  licensing programs.  The Group's Digital  TV program  posted 
another quarter  of  strong  growth,  driven by  new  contracts  and  contract 
renewals in the second half of 2012.

Research and Innovation

R&I continued  its focus  in  the first  quarter  on delivering  high  quality 
intellectual property, increasing significantly its level of disclosures.  R&I 
made also several advances with metadata, in particular around new  techniques 
for on-set metadata. R&I also  continued to sharpen exploration of  laboratory 
research relating  emotional feedback  (via  bio-sensors) to  viewer  interest 
level of films and commercials and deployed algorithms with audiences  viewing 
four full  length films  in  regular theaters.  Such viewer  participation  in 
Technicolor research is complemented  by targeted collaborative activity  with 
some studios and directors aimed at rendering the technology valuable both  to 
content creators  and to  viewers. Bringing  such research  elements  together 
underpins the  objective  of making  viewing  of content  comfortable  in  the 
expanding ecosystem of format  diversity and also in  rendering the choice  of 
content uniquely personal and intuitive.

Regarding M-GO, the Group has been improving overall technical capabilities on
the basis  of beta  testing feedback.  Technicolor initiated  first  marketing 
tests and has been  working closely with its  consumer electronic partners  to 
complete integration in their  devices. Preloaded devices  are expected to  be 
launched progressively  during the  second quarter.  M-GO is  also  continuing 
discussions with additional device manufacturers.

Entertainment Services

In € million                            Q1 2012 Q1 2013
Revenues                                    395     376
Change as reported (%)                         (4.9)%
Change at constant currency (%)                (5.4)%
Revenues excluding legacy activities*      345     352
Change as reported (%)                          +2.2%
Change at constant currency (%)                 +1.8%

* Legacy  activities  include  mainly photochemical  film  and  compression  & 
authoring activities.

In the  first quarter  of 2013,  Entertainment Services  revenues amounted  to 
€376million, down 4.9% at current currency and down 5.4% at constant currency
compared with the first  quarter of 2012.  Excluding legacy activities,  whose 
revenues at constant currency declined  by half in the quarter,  Entertainment 
Services revenues were  up 2.2% at  current currency and  up 1.8% at  constant 
currency compared to the first quarter of  2012, due to a good performance  in 
DVD Services, driven by sustained volume growth, particularly for  Blu-ray(TM) 
discs, which offset lower Creative Services revenues.

DVD Services

In the first quarter  of 2013, combined Standard  DVD and Blu-ray(TM)  volumes 
increased by 9%,  driven by stable  SD-DVD volume in  combination with  strong 
Blu-ray(TM) growth  of almost  100% over  the first  quarter of  2012.  Volume 
growth was supported in part  by a strong slate of  new release titles in  the 
quarter, which mainly  included The  Hobbit: An  Unexpected Journey  (Warner), 
Wreck-It-Ralph (Disney),  Les Miserables  (Universal), Rise  of the  Guardians 
(Paramount/DreamWorks) and Django Unchained (Weinstein). Growth in  Blu-ray^TM 
volumes in  the  first  quarter  was  further  bolstered  by  selective  share 
increases across  the  existing  customer  base.  In  addition,  the  ongoing 
popularity with  consumers  of multi-disc  DVD/Blu-ray(TM)  "combo-packs"  and 
other special edition sets has continued to help drive strong disc replication
demand for both SD-DVD and Blu-ray(TM). Games volumes declined by  4.2million 
units compared to a very strong first quarter of 2012, which included a larger
release slate  of  titles from  several  key publishers.  This  reduction  was 
partially offset by an increase in Software related volumes.

DVD and Blu-ray(TM) Volumes

In million units                       Q1 2012 Q1 2013
Total Volumes                              297     322
Change (%)                                       +9%
o/w SD-DVD (Standard Definition DVD)       248     249
    Change (%)                                   +0%
    BD (Blu-ray(TM))                        27      54
    Change (%)                                  +98%
    Games                                   16      12
    Change (%)                                 (26)%
    Software and Kiosk                       6       7
    Change (%)                                  +34%

Creative Services

In the  first  quarter of  2013,  Creative Services  recorded  a  year-on-year 
decline in revenues, due to a 54% revenue drop at constant currency in  legacy 
activities and a  weak level of  activity in January  and February in  Digital 
Production.  In  the  quarter,  the  Group  continued  to  focus  its  Digital 
Postproduction and Digital Distribution Services  on their core strengths,  in 
particular video and sound  activities in Postproduction  and work on  digital 
content libraries  in  Distribution. The  Group  expects the  overall  Digital 
Creative Services activities to rebound in the next quarter.

Digital Creative Services

  oDigital Production activities recorded a year-on-year decline in revenues
    in the first quarter of 2013, reflecting a lower level of activity in
    January and February in Visual Effects ("VFX") for feature films due to
    the delay in some sizeable projects. However, Commercial VFX activities
    performed strongly in the first quarter of 2013, especially in the United
    States. In particular, the introduction of new services in New York
    strengthened the Group's market share in this key advertising market.
    Based on the current solid backlog, Digital Production activities are
    expected to rebound in the next quarter. In the first quarter of 2013, VFX
    teams continued to work on Maleficent (Disney), Lone Ranger (Disney) and
    7^th Son (Warner). Technicolor was also honored with the Academy Award ®
    for visual effects on Life of Pi (Fox), further demonstrating its
    excellence in servicing its studio customers.
  oDigital Postproduction revenues reported growth in the first quarter of
    2013 compared to the first quarter of 2012. The Group posted solid revenue
    growth in North America driven by a strong level of activity in particular
    in Video with market share gains both in Theatrical and Broadcast.
    However, this good performance was partly offset by the continued weakness
    of the European markets and the resulting revenue decrease in the region,
    in particular in Italy. During the first quarter of 2013, Digital
    Postproduction teams continued to work on movies such as G.I. Joe:
    Retaliation and World War Z (Paramount), Gravity (Warner) and Oblivion
    (Universal) in Theatrical, as well as on successful TV series such as Mad
    Men Season 5 (AMC), Scandal Season 2 (ABC) and The Following Season 1
    (Fox) in Broadcast.
  oDigital Distribution Services posted revenue growth in the first quarter
    of 2013 compared to last year. The continued sustained level of work on
    digital content libraries for Major Studios and Distributors,
    Video-on-Demand and Over-the-Top aggregators compensated the significant
    revenue decline in Localization Services (subtitling), in particular in
    North America as a consequence of the subcontracting agreement of the
    Compression & Authoring activity in the third quarter of 2012.
  oDigital Cinema activities recorded volume growth year-on-year but revenues
    were affected by the price reductions granted to some key customers in
    2012. At the end of March 2013, digital screen penetration was 84% in
    North America and 74% in Europe.

Legacy activities

As expected,  legacy activities  continued  to decline  sharply in  the  first 
quarter of 2013, and  represented at the  end of March 2013  only 3% of  Group 
revenues compared to  6.3% in the  first quarter of  2012. The  subcontracting 
agreements implemented in 2011 and 2012 allowed to mitigate the impact of this
sharp drop on the Group's profitability.

Connected Home

Following  the   sale  of   the  Broadcast   Services  and   the   SmartVision 
(television-over-IP)  businesses  in  2012,   and  the  disposal  of   Cirpack 
softswitch operations (voice-over-IP) in 2013, the Group renamed the  existing 
"Digital Delivery" segment to "Connected Home". The business review is focused
on Connected Home.

In € million                      Q1 2012 Q1 2013
Proforma revenues                     242     274
Change as reported (%)                   +13.0%
Change at constant currency (%)          +16.3%

In the first quarter of 2013, Connected Home revenues totaled €274million, up
13% at current  currency and  up 16.3% at  constant currency  compared to  the 
first quarter of  2012, marking  the fourth straight  quarter of  double-digit 
year-on-year growth. This performance  principally reflected continued  strong 
demand in emerging markets, particularly  Brazil and Mexico in Latin  America, 
as well as  in India, combined  with some  volume growth in  Europe. In  North 
America, lower  shipments  were partially  offset  by further  improvement  in 
overall product mix.

Technicolor continues to expect double-digit year-on-year growth in  Connected 
Home revenues  for 2013,  in line  with  the first  quarter trend,  driven  by 
sustained demand and market share gains in the fast-growing emerging  markets, 
as well  as  the  ramp-up of  higher-end  devices  launched in  2012  and  the 
introduction of new products  in the course of  2013, notably starting in  the 
third quarter of  2013 for Cable  customers in North  America. The  turnaround 
plan of the Connected Home segment, launched in December 2011, is on track and
the Group expects to post annualized cost savings of approximately €45million
in 2013  compared to  2011 cost  base. As  a result,  Technicolor confirms  it 
anticipates further improvement in  adjusted EBITDA for  Connected Home and  a 
return to a positive free cash flow generation in this segment in 2013.

  oIn North America, Connected Home product volumes declined significantly in
    the first quarter of 2013, reflecting a drop in set top box shipments
    related to the phase-out of some Satellite products, reduced deliveries of
    digital-to-analog Cable adaptors and the timing of new product
    introductions (expected to occur in the third quarter of 2013), offset in
    part by strong growth in volumes of Cable gateways. Overall product mix
    improved strongly year-on-year, benefiting from increased contribution of
    higher-end devices in Cable, partly offset by lower shipments of High
    Definition PVRs in Satellite compared to last year.
  oIn Latin America, Connected Home product volumes recorded another quarter
    of double digit growth, driven by sustained customer demand and market
    share gains across the region. This performance reflected increased
    shipments of Satellite set top boxes, particularly in Brazil, as well as
    stronger deliveries of Telecom products such as broadband gateways,
    especially in Mexico. Overall product mix improved year-on-year, due to
    higher proportion of High Definition products compared to last year.
  oIn Europe, Middle-East and Africa, Connected Home product volumes were up
    in the first quarter of 2013, due to sustained growth in shipments of
    Cable modems, partly offset by softness in deliveries of other product
    categories. Overall product mix was lower year-on-year, as a result of a
    less favorable product mix in Telecom, offset in part by improvements in
    Satellite and Cable compared to last year.
  oIn Asia-Pacific, Connected Home product volumes experienced very strong
    growth in the first quarter of 2013, driven principally by buoyant
    customer demand for set top boxes, particularly in India. Overall product
    mix was lower year-on-year, due to weaker proportion of High Definition
    products compared to last year.

Connected Home Product Volumes

In million units                     Q1 2012 Q1 2013
Total Volumes*                           6.3     7.1
Change (%)                                    +12%
o/w North America                        2.0     0.6
    Change (%)                               (69)%
    Latin America                        2.5     3.7
    Change (%)                                +46%
    Europe, Middle-East and Africa       1.3     1.3
    Change (%)                                 +4%
    Asia-Pacific                         0.5     1.4
    Change (%)                               +182%

* Including tablets and other connected devices

                                   APPENDIX

Following  the   sale  of   the  Broadcast   Services  and   the   SmartVision 
(television-over-IP or IPTV) businesses in  2012, and the disposal of  Cirpack 
softswitch operations (voice-over-IP or VoIP) in 2013, Technicolor renamed the
existing "Digital Delivery" segment "Connected Home".

The following table  provides proforma information  on quarterly revenues  per 
segment for 2012 and the first quarter of 2013 (excluding Broadcast  Services, 
IPTV and VoIP activities).

In € million             Q1 12 Q2 12 H1 12 Q3 12 Q4 12 H2 12 FY 12 Q1 13
Technology                 121   115   236   128   150   279   515   125
Entertainment Services     395   362   757   449   524   973 1,730   376
Connected Home            242   330   572   345   326   671 1,244   274
Other                        0     0     0     0     1     1     1     0
Group revenues*            759   807 1,566   922 1,001 1,923 3,489   775

* From continuing operations

-------------------------

[1] Excluding the Broadcast Services and the SmartVision  (television-over-IP) 
businesses,  sold   in   2012,   and   the   Cirpack   softswitch   operations 
(voice-over-IP), sold in  2013. Those  activities contributed  €42 million  of 
revenues in the first quarter of 2012 (no contribution in the first quarter of
2013).

[2] On a reported basis, including disposals, revenues were down 3.2% at
current currency and down 3.1% at constant currency.

[3] Adjusted EBITDA at constant scope excluding the Broadcast Services and the
SmartVision (television-over-IP)  businesses, sold  in 2012,  and the  Cirpack 
softswitch operations (voice-over-IP), sold in 2013.

Technicolor - Q1 2013 Revenues

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