EVS Q3 2023 business update
Publication on November 17, 2023 at 6:30 CET
before market openingRegulated / Inside informationEVS Broadcast
Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB),
Reuters (EVSB.BR)
EVS Q3 2023 business update
Liège, Belgium, November 17th, 2023
Delivering strong 2023, whilst building
the future
EVS continues its strong journey in 2023 and
confirms it will realize its ambition for profitable and
sustainable growth in the year. In the 4th quarter, we will focus
on the planned deliveries for 2023 and continue building the
future, while also preparing for the major sport events in 2024.
All order intake secured in the final months of the year will
contribute to support our growth in 2024.
Highlights
- Revenue
performance continues the strong momentum from the first quarters
of the year supporting our growth ambition for 2023.
- The secured
revenue* allows EVS to confirm that the high-end range of the
existing revenue guidance (EUR 160 - 170 million) is within
reach.
- Gross margin
levels continue to improve and operational expenses are under
control, demonstrating our objective to realize a profitable growth
in 2023.
- In line with the
evolution of the revenue guidance, EVS confirms that the EBIT
guidance is shaping up towards the high-end of the existing range
(EUR 32.5 - 38.5 million).
*secured revenue includes the already recognized
revenue as well as open orders on hand that will be recognized as
revenue in 2023
Comments
Serge Van Herck, CEO,
comments:
“I am pleased to announce our third-quarter
results and provide an update on EVS’ performance and outlook. As
we enter the final quarter of the year, I am proud to report that
we are well on track to deliver full-year revenue and profit
results at the high end of our guidance. Our commitment to
innovation and customer satisfaction remains at the forefront of
our strategy, and we have seen strong affirmation of this at the
recent IBC event in Amsterdam. The feedback we received from our
customers on our solution offering and innovations, including
Mediaception VIA MAP and our artificial intelligence-powered live
video effects, such as XtraMotion, has been overwhelmingly
positive.
Notably, our Net Promoter Score (NPS) continues
to increase, as indicated by the recent survey conducted by
Devoncroft, reflecting the growing satisfaction of our customers.
This serves as a testament to the dedication of our team members,
as demonstrated by our yearly team member engagement survey, which
underscores their strong commitment to our company's mission and
values.
We are equally delighted with our Environmental,
Social, and Governance (ESG) progress, which was recently
recognized with a Corporate Star Award at IBC in Amsterdam. Our
ongoing efforts in this area reinforce our dedication to
responsible business practices.
While we remain optimistic about our company's
trajectory, we must exercise caution in the face of global
uncertainties. The ongoing conflicts in Ukraine and Gaza have the
potential to impact our Western economy, which could, in turn,
influence our industry. Additionally, the prospect of increasing
interest rates and slowing advertisement spending might slow down
the investment pace of some of our customers.
We remain dedicated to delivering value to our
customers and stakeholders and will continue to focus on
innovation, customer satisfaction, and sustainable
growth.”Commenting on the results and the outlook, Veerle
De Wit, CFO, said:
“We continue to see momentum in our revenue
performance and thanks to a sound margin and cost management, this
momentum results into a profitable growth for 2023.
Besides a strong income statement, we continue
to benefit from a strong balance sheet. Our net cash position is at
sound debt levels and our balance sheet metrics continue to improve
compared to the year 2022.
Securing 2023 is a top priority for our
production team, however, the preparations for the Big Events of
2024 are starting at the same time resulting in part of our
production capacity being reserved to prepare these.
Based on the current metrics and the underlying
market conditions, we are confident enough to confirm that the
high-end range of our revenue guidance is within reach (EUR 170
million).
Consequently, our EBIT performance is shaping up
towards the high-end of the range (current range being EUR 32.5 -
38.5 million). This performance would mark a tremendous year for
EVS. ”
Market & customers
The main drivers of EVS in the “Premium Live
Ecosystem” remain the same as in 2022 but with higher revenues,
proving the success of the PlayForward strategy approach oriented
towards solutions.
On the LAB side, MediaCeption continues to
successfully spread within EMEA region with a new multi-site
installation that has gone “on-air” early September for Oman TV
studios in Muscat & Salalah.
On the LSP side, LiveCeption signature continues
to support the upgrade of XT-VIA servers, as for CloudBass, the
largest independent dedicated Outside Broadcast company in the
United Kingdom and for VideoCraft, a prominent supplier of video
production equipment and broadcast facilities in Australia. Both
customers will upgrade their full fleet and beyond, leveraging the
capabilities of LSM-VIA to deliver engaging live replays and
highlights.
The traction for MediaInfra products division
continues, especially in NALA and in EMEA. Cerebrum is now
successfully spreading in all regions as the reference for a
multi-vendor control system. Neuron allows customers all over the
planet to save energy while serving the different applications to
transform broadcast signals.
EVS continues to manage carefully the inventory
of components to deliver the hardware based products according to
the promise. EVS also continuously monitors inflation to reflect it
progressively in the pricing and business model evolutions.
Technologies
EVS continues to materialize the Balanced
Computing strategy through new solutions. At IBC, Besides
XtraMotion Edge that can be deployed on-premise, EVS did show a
range of new AI based XtraServices to create higher return on
emotion.
EVS also improved the LiveCeption solution,
bringing a new version of XNET-VIA which decreases the delay when
accessing content stored on a distant XT-VIA from a local XT-VIA.
This brings unequalled support for remote production when the
infrastructure is split between two different well connected
sites.
The VIA MAP (Media Asset Platform) – announced
at IBC – is the new content management platform that brings
together the world of live production and creation and that of
content distribution and sharing in a cohesive, integrated and open
environment.
Neuron View – the new multiviewer on top of the
carbon footprint optimized Neuron platform – is nicely
complementing the portfolio of Media Infrastructure applications
and increases the relevance of the platform for many customers and
use cases.
EVS’ Xeebra multi-review system recently
obtained the FIFA Offside Technology (OT) and the Video Assistant
Referee (VAR) certifications following a rigorous series of tests
in Offenbach, Germany, reaffirming precision, speed &
reliability.
As an innovative end-to-end pilot project, EVS
has designed a “Flex Production” solution utilizing many different
capabilities of 5G technology, in collaboration with Orange
Belgium, to bring live theater performances to schools in the
Walloon and Brussels regions of Belgium, thus making cultural
events accessible to more than 10,000 students.Corporate
topics
We focused our corporate efforts in 2023 on
supporting our profitable and sustainable growth objective. Our
corporate ditigtal transformation roadmap focusses on creating
tools to ensure scale up and flawless operations. We are also
focusing our attention to optimizing our cost structure with
pro-active focus on travel expenses, trade shows, power
consumption, etc.. Within Research and Development we ensure the
required bandwith to ramp up our sustainability efforts, especially
when it comes to the design and energy consumption of our
solutions.
From a tooling point of view we want to ensure
that we have efficient processes in place that promote end-to-end
collaboration across all our departments. Having an efficient
operational back-bone is important to us. After an initial launch
of a new global ERP system in October 2022, we have integrated in
2023 the final legal entities within this global framework. We are
now operating at global scale on one footprint, with global
operations and economies of scale. Next to the ERP we are also
expanding our corporate digital footprint (CRM, Via Portal, LMS,
Via Licensing, …)
We continue to monitor the macro-economic
environment and assess the profitability of our solutions. Our
pricing strategy is reviewed regularly, as to ensure we stay ahead
of the curve.
When it comes to ESG, we have focused in 2023 on
creating long term objectives for all the topics that are most
relevant and important to us as a company. We have also reviewed
our materiality matrix and we will start improvement tracks to
measure our carbon footprint in a qualitative way. We will also
create a data governance around ESG KPI’s in preparation of
CSRD. In terms of team members, we have kept our base
rather flat in the first half of 2023. In the second half, based
also on the growth perspectives, we have decided to accelerate some
hirings. As such, we expect a moderate increase in our team member
base in the last quarter of the year.
On November 24th, 2023, EVS will hold its
investor day at the EVS premises in Liège. Investors can subscribe
using the link: https://evs.com/evs-investor-day
Outlook
The 2023 secured revenue allows us to confirm
that the high-end range of the existing revenue guidance is within
reach (EUR 160 - 170 million).
Thanks to the strong topline performance, the
gross margin for the full year 2023 is expected to increase . The
investments from the past in our operations & support structure
are fully covered by additional revenue growth. Next to that, we
see the gross margin by solution growing, as a result of our
pricing strategy.
Operational expenses continue to be closely
monitored and controlled. As our focus in 2023 is on profitable and
sustainable growth, this balance is critically important. As such,
we have seen little changes in our overall headcount position in
1H23. Since 3Q23 we are againg investing in additional team
members, as to ensure we prepare for future growth. There will be a
marginal increase in our overall headcount position in 2H 2023.
Next to our revenue gudiance firming up, we also
confirm that the high-end range of our EBIT guidance is within
reach (EUR 32.5 - 38.5 million).
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 22nd, 2023 (coupon #35) and the payment date will be
November 24th, 2023.
We reiterate the full year 2023 expected
dividend distribution of EUR 1.10 per share, which remains subject
to market conditions and to the approval of the Ordinary General
Meeting of Shareholders.
Corporate Calendar
February
22nd, 2024 : 2H 2023 and
FY 2023 resultsMay 16th,
2024 : 1Q 2024 resultsMay
21st, 2024 : general
assemblyAugust 14th, 2024
: 2Q 2024 and 1H 2024 resultsNovember
14th, 2024 : 3Q 2024
results
For more information, please contact:Veerle De
Wit, CFO*EVS Broadcast Equipment S.A., Liege Science Park, 13 rue
Bois Saint-Jean, B-4102 Seraing, BelgiumTel: +32 4 361 70 04.
E-Mail:corpcom@evs.com; www.evs.com * representing a SRL |
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 usWe create return on emotionEVS is globally recognized as
the leading provider in live video technology for broadcast and new
media productions. Spanning the entire production process, EVS
solutions are trusted by production teams worldwide to deliver the
most gripping live sports images, buzzing entertainment shows and
breaking news to billions of viewers every day – and in real-time.
As we continue to expand our footprint, our dedication to
sustainable growth for both our business and the industry is
clearly demonstrated through our ESG strategy. This commitment is
not only reflected in our results, but also in our high ratings
from different agencies. Headquartered in Liège, Belgium, the
company has a global presence with offices in Australia, Asia, the
Middle East, Europe, North and Latin America, employing over 600
team members and ensuring sales, training 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. |
- Press release in pdf format
Evs Broadcast Equipment (LSE:0N9Z)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Evs Broadcast Equipment (LSE:0N9Z)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024