EVS Q3 2022 business update
Publication on November 17, 2022, before market openingRegulated
and inside information – Business update 3Q22EVS Broadcast
Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB),
Reuters (EVSB.BR)
EVS Q3 2022 business update
Liège, Belgium, November 17th, 2022
Strong commercial
performance continues to fuel growth
Record order intake and secured sales continue
to confirm the growth path of the company.
Highlights
- The order intake
confirms the growth trajectory of EVS. Even excluding the Big Tech
2022 contract, the growth is of +39,0% (BER not taken into
account). In addition, the order intake for 2022 is strong across
all regions.
- Big Tech
contract 2022, a landmark in the history of EVS, signed in August
2022.
- Our secured
revenue* allows us to upgrade our revenue guidance for 2022 to a
range of EUR 145 million to EUR 150 million, representing the
high-end of the guidance previously communicated of EUR 140 – 150
million.
- The OPEX
guidance remains unchanged, with a growth projected between
12-15%
*secured revenue includes the already recognized
revenue as well as open orders on hand that will be recognized as
revenue in 2022
Comments
Serge Van Herck, CEO
comments:
“ I’m happy to say our Q3 achievements are confirming our
revenue growth expectations for the full year 2022. As we have been
able to further increase our order intake and solve most of our
supply chain challenges this year, I’m confident to upgrade our
revenue guidance to a range of EUR 145 million to EUR 150 million.
This will represent a new record figure for EVS.
With the signature of our largest contract ever, we are proud to
say that we have added a new milestone in the history of EVS. This
“Big Tech Contract 2022” covers a 10-year contract worth over $50
million with a major US-based broadcast and media production
company. This agreement includes the delivery of EVS’ live
production, replays and highlights solution LiveCeption®, combined
with a long-term service level agreement (SLA). It also provides
our customer with multiple benefits including access to our latest
technology innovations and upgrades for its installed base, a
predictable operational spend, with a spread of capital
expenditures over time, an easy way to plan for further expansion
and a premium SLA. The agreement comes as big tech companies
intensify the competition with linear networks to secure live
sports content by spending billions of dollars to acquire media
rights of the most prestigious pro sports leagues in North
America.
The positive and encouraging feedback we received from our
customers and channel partners during our IBC trade show
participation in Amsterdam earlier in September, provides us
additional confidence that we are providing them with the right
solutions and services to continue solving their current and future
live video production needs. Our EVS Balanced Computing approach (a
balanced combination strategy of “on premises” and “in the cloud
services”) is clearly answering the specific needs and expectations
of many LSP (Live Service Providers) and LAB (Live Audience
Business) customers around the world.
I’m particularly proud to say that our CSR efforts have
translated into a first important recognition. EVS has been awarded
a Silver medal for its sustainability performance from EcoVadis,
one of the world’s largest providers of business sustainability
ratings, placing EVS in the 88th percentile. Their methodology
covers seven management indicators, across 21 sustainability
criteria, in four themes (environment, labour & human rights,
ethics and sustainable procurement). It is based on leading
standards, such as Global Reporting Initiative (GRI), United
Nations Global Compact (UNGC), and ISO 26000, and is overseen by an
international scientific committee. The rating is based on our EVS
policies, our actions and results, as well as inputs from
third-party professionals and external stakeholders.
Overall, I continue to feel cautiously
optimistic about our future. While economic market conditions
remain very challenging with high inflation, supply chain
challenges and with the war in Ukraine, I feel that our customers
increasingly appreciate the reliability, performance and innovative
edge of our solutions and services. This represents a sound basis
for our future growth.”
Commenting on the results and the
outlook, Veerle De Wit, CFO, said:
“We continue our growth path, with strong order intake and
revenue results, both being major drivers supporting our future
potential. Our secured revenue position reinforces our ability to
realize growth in 2022. As a consequence, we upgrade our revenue
guidance for 2022 to a range of EUR 145 - 150 million, representing
the high-end of the guidance previously communicated of EUR 140 –
150 million. The production planning for the final quarter of the
year is heavily loaded, but almost all the components have been
sourced.
In October 2022, we went live with a new ERP system. This new
ERP will allow more flexibility in our end-to-end processes and
will be a cornerstone to support our growth ambitions (including
future acquisitions). The go live was successful, without any major
business interruption. We are currently still operating in a
hyper-care modus to ensure issues are addressed. Our priority in
4Q22 is on production and delivery of our client commitments.
Operating expenditure evolves in line with our expectations,
demonstrating an increase compared to last year following the
inflation and cost of energy. As such, we do reiterate our guidance
of full year OPEX growth in a range of 12-15%.”
EVS Market Dynamics and customer wins
The same trends still apply for 3Q22 in general
as for the first semester for what concerns the market pillars with
continuous modernization of LAB and upgrade of Live Service
Providers equipment. The appetite for LiveCeption, MediaCeption and
MediaInfra solutions continues, feeding the order book.
The Big Tech contract 22 is obviously a major
achievement as a proof point of confidence in the sustainability of
EVS innovation. It’s also an important evolution showing that Live
Service Providers are willing to engage in long term service level
agreements. It finally brings higher predictability in terms of EVS
revenues.
After a successful NAB in April, EVS had the
pleasure to present the new range of solutions “in real life” at
IBC in September with a strong presence of key customers from EMEA
and APAC.
EVS has also been preparing the major sport
event in Middle-East scheduled for end of this year.
The frictions between the electronic supply
chain and the delivery of products are under control for the rest
of the year.
Outlook
The 2022 secured revenue on September 30th
reaches EUR 143,8 million with the following split:
- Secured revenue
excluding Big Event Rental of EUR 127,4 million versus EUR 111,9
million at the same date last year, a growth of +13,9%.
- Secured revenue
for the Big Tech 2022 contract of EUR 6,6 million.
- Secured revenue
for Big Event Rental of EUR 9,2 million, including a major
international sport event happening in 4Q22.
Thanks to the strong secured revenue, we are
able to upgrade our full year revenue guidance to a range of EUR
145 – 150 million, representing the high-end of the guidance
previously communicated of EUR 140 – 150 million. Due to the
current delivery terms, we expect that only a limited number of
orders that will be closed in 4Q22 will still generate a revenue
impact within this fiscal year 2022.
The order book for 2023 and beyond is
demonstrating a substantial growth of +216%, also boosted by our
Big Tech 2022 contract of over USD 50 million.
The gross margin evolution is demonstrating a
decline as a result of a change in the solution mix. Any impact of
rising costs of components are reflected in the price increases
modeled and announced in 2022.
Operational expenses continue to be closely
monitored: inflation and increasing energy prices require us to be
vigilant. We reconfirm our guidance of full year OPEX growth in a
range of 12-15%.
Interim dividend
The Board of Directors has decided to pay an
interim dividend of 0,50 EUR per share. The ex-date will be
November 23th, 2022 (coupon #33) and the payment date will be
November 25th, 2022.
This interim dividend fits in the overall
dividend policy for 2022. We reiterate the full year 2022 dividend
expectations*,**:
In € per share per fiscal year |
2022 |
Base dividend |
1,10 |
Exceptional additional dividend |
0,50 |
Total dividend |
1,60 |
*subject to market conditions**subject to the approval of the
Ordinary General Meeting of Shareholders
Corporate Calendar
February 17th,
2023: 2H 2022 and FY 2022 resultsMay
16th, 2023: General
AssemblyMay 17th,
2023: Q1 2023 resultsAugust
18th, 2023: H1 2023
resultsNovember 17th,
2023: Q3 2023 results
For more information, please contact:
Veerle DE WIT
EVS Broadcast Equipment S.A., Liege Science
Park, 13 rue du Bois Saint-Jean, B-4102 Seraing, Belgium
Tel: +32 4 361 70 00 |
E-mail: corpcom@evs.com |
Website: www.evs.com
Forward Looking Statements
This press release contains forward-looking
statements with respect to the business, financial condition, and
results of operations of EVS and its affiliates. These statements
are based on the current expectations or beliefs of EVS's
management and are subject to a number of risks and uncertainties
that could cause actual results or performance of the Company to
differ materially from those contemplated in such forward-looking
statements. These risks and uncertainties relate to changes in
technology and market requirements, the company’s concentration on
one industry, decline in demand for the company’s products and
those of its affiliates, inability to timely develop and introduce
new technologies, products and applications, and loss of market
share and pressure on pricing resulting from competition which
could cause the actual results or performance of the company to
differ materially from those contemplated in such forward-looking
statements. EVS undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
About EVS
EVS is globally recognized as the leader in live
video technology for broadcast and new media productions. Our
passion and purpose are to help our clients craft immersive stories
that trigger the best return on emotion. Through a wide range of
products and solutions, we deliver the most gripping live sports
images, buzzing entertainment shows and breaking news content to
billions of viewers every day – and in real-time.
The company is headquartered in Belgium with
around 600 employees in offices in Europe, the Middle East, Asia
and North America, and provides sales and technical support to more
than 100 countries. EVS is a public company traded on Euronext
Brussels: EVS, ISIN: BE0003820371. For more information, please
visit www.evs.com.
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