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Technicolor

EU: TCH

Market Cap€766m

Last Close €3.25

Technicolor is a worldwide technology leader operating in the media and entertainment industry. Its activities are organised in three business segments, Production Services, DVD Services and Connected Home.

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Investment summary

Technicolor has now set out its strategy for the two separate businesses post the 65% spin-off scheduled for H222; Technicolor Creative Studios (TCS), a pure-play digital FX business; and Vantiva, comprising Connected Home and DVD Services. Vantiva’s financing is effectively already in place, while marketing is now active for TCS’s €600m term loan. Vantiva will focus on its leading positions in broadband and Android TV customer premise equipment, with its supply chain services broadening their reach. TCS’s activities cover film and episodic, advertising, animation and games, working with all the major studios and commissioners. Interim results are scheduled for 28 July.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 3006.0 163.0 (46.0) (35.73) N/A N/A
2021A 2898.0 268.0 (6.0) (11.42) N/A 55.9
2022E 2975.0 375.0 89.0 31.57 10.3 3.7
2023E 3135.0 415.0 138.0 48.42 6.7 3.6
Industry outlook

The underlying demand in both core operations remains very strong. For TCS, demand for high-quality content is robust across film, episodic and animation, with 80% of the current year pipeline booked. The industry remains beset by shortages of talent from which TCS is not immune, which is a constraint on faster growth. At Vantiva, demand for domestic broadband continues to be very good, with higher revenue growth again constrained by industry wide component shortages.

Last updated on 08/08/2022
Content on Technicolor
Technicolor – Division on schedule
TMT | research Update | 12 May 2022
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Technicolor – Creative Studios spin-off plan
TMT | research Update | 28 February 2022
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Technicolor – Robust demand with fulfilment issues
TMT | research Outlook | 24 January 2022
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Share price graph
Balance sheet
Forecast net debt (€m) 980
Forecast gearing ratio (%) 1922
Price performance
%
1m
3m
12m
Actual 14.9 6.3 10.3
Relative* 6.5 2.5 16.3
52-week high/low €3.5/€2.5
*% relative to local index
Key management
Anne Bouverot Chairman
Richard Moat CEO
Laurent Carozzi CFO
Alexandra Fichelson Head of IR