Publication on November 12, 2020, earlier than market opening
EVS Broadcast Tools S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)
EVS Q3 2020 Enterprise replace
EVS international chief in reside video know-how for broadcast and new media productions right this moment
pronounces its enterprise replace for the third quarter ending 30 September 2020.
o Covid-19 disaster proceed to influence considerably Dwell Service Suppliers, one of many three essential income pillars whereas LAB prospects proceed the modernization of their broadcast facilities.
o Accelerated traction for distant manufacturing workflows permitting EVS to advertise a number of new workflow options
o Order e-book* for 2020 revenues as of October 31st ** of EUR 41.0 million, vs. EUR 44.3 million on the similar date final yr.
(-7% vs similar interval final yr)
o Order consumption* YTD till finish October 2020: -8.5% vs similar interval final yr
o Affirmation of the Opex steerage, anticipated to extend barely YoY following integration of Axon (excluding extraordinary prices) however with a marked lower when contemplating solely former EVS perimeter.
* excluding large occasions leases and together with Axon as of Might 1st
** together with 2H2020 already acknowledged Revenues and open orders readily available that might be acknowledged as revenues in 2020
Serge Van Herck, CEO feedback the enterprise growth: “We proceed to see the influence of the pandemic on our prospects. With much less occasions to provide for Dwell Service suppliers, these have seen their revenues and money inflows dropping, which resulted in recapitalization wants for a few of them and delayed or cancelled investments.
Adoption of distant manufacturing workflows is accelerating. Due to the versatile and “cloud-ready” answer portfolio not too long ago strengthened with LSM-VIA, EVS effectively helps its prospects to face their challenges. We proceed to see LAB prospects investing within the modernization of their broadcast facilities.”.
On the COVID-19 developments, Serge Van Herck added:
“We anticipate this pandemic is not going to be over quickly and can proceed to influence EVS within the first a part of 2021. In anticipation of this, we need to additional regulate our price construction”.
Commenting on the outcomes and the outlook, Yvan Absil, CFO, stated: “Our orderbook (with out large occasions) as of October thirty first quantities to EUR 41.0 million. There may be additionally a further EUR 17.1 million of orders (excl large occasions leases) to be acknowledged as revenues in 2021 and past; this symbolize a rise of 10 % vs the identical interval final yr. On the prices facet, because of marked lower within the former EVS perimeter (reductions in consulting, journey, advertising and marketing bills and bonus) and regardless of the mixing of Axon since Might 1st, prices will solely barely improve YoY. Lastly, our money place stays actually robust with a complete money accessible of EUR 52.5 million on the finish of September”.
On the Share Purchase Again program, Yvan Absil, added: “We have now now accomplished the EUR 5 million share buyback program introduced in Might 2020”.
EVS Market Dynamics and buyer wins
Our 3 market pillars of revenues (Dwell Service Suppliers – LSP, Dwell Viewers Enterprise – LAB and Large Occasion Rental – BER) are considerably impacted by the pandemic.
The key summer time sport occasions have been postponed to 2021, which ought to postpone associated EVS revenues from 2020 to 2021. EVS had introduced earlier this yr that its order backlog as of Dec 31st, 2019 included EUR 12.3 million of Large Occasion Rental orders to be acknowledged in 2020. It needs to be famous that these occasions are postponed and never cancelled.
Product developments which have already been carried out are anticipated to be reused and deliberate revenues will in precept shift from 2020 to 2021.
Because of the cancellation and postponement of varied reside occasions earlier this yr (sport, concert events, leisure exhibits), numerous LSP prospects have closely lowered their buying exercise as their precedence was to maintain their workers prepared for the restart interval. Their spending for purchasing new tools nonetheless is in lots of circumstances postponed to a later date
On the similar time, these prospects speed up the adoption of distant manufacturing to decrease their manufacturing prices and guarantee respect of governmental pointers. LSM-VIA has been “field-proven” throughout the summer time in a few of these distant workflows.
A few of our LAB prospects are struggling as properly. Many stadiums, universities and schools are at present not allowed to arrange any reside occasion of their premises. On the constructive facet, many information associated broadcast facilities see their information viewers peak at this second in time which interprets in continued ordering of sure of our options.
Traction for distant manufacturing workflows has considerably elevated, with EVS providing a number of choices to ease the work of operational groups working from a distance and from house.
Till finish October, the yearly order consumption declined 8.5% versus the identical interval final yr (excl. large occasion leases and together with Axon as of Might 1st 2020).
Some key actions:
- Digital IBC has been organized with a whole lot of shoppers from in every single place on the planet attending totally different distant demos for wealthy and personalised interactions
- Dwell Manufacturing Wherever webshow, organized in partnership with our prospects, specializing in Distant Dwell Manufacturing, organized with lively participation of many EVS departments to point out utilization of EVS options and the dedication of EVS for its prospects.
- Steady distant interactions with prospects to help them within the design of their new options.
Some key wins:
- Massive 4K improve and extension with a significant participant in China
- Steady traction for VIA platform and Media Infrastructure for modernization of broadcast facilities, notably in eSports
- After NALA & APAC, Europe sees growing adoption of our IP enabling XT-VIA server options
Standing of AXON integration
With the addition of Axon merchandise to the EVS portfolio, EVS is providing a broad and complete fashionable IP based mostly media infrastructure answer. Groups from each corporations are progressing properly on the mixing, which is on monitor, on time and inside funds.
Some key milestones have already been achieved:
- Result in money course of synchronized, enabling EVS gross sales drive to begin promoting new Media Infrastructure options
- Joint worth propositions offered to our prospects
- Groups in NALA strengthened and ready to ship, combine and deploy Media Infrastructure options in every single place
- Overwhelming majority of crew integration inside a single group is accomplished
- Integration of ERPs being successfully deliberate, and another instruments already built-in
We additionally begin to see the primary synergies:
- Some first offers have been signed that might have by no means occurred in an “Axon stand-alone” situation, in all areas of the world
- Inside international choices together with former EVS merchandise, some integrators are swapping infrastructure from different distributors by new EVS Media Infrastructure parts to make sure a constant and extra strong proposal
- Some headcount replacements have been cancelled; the operate being now lined by former Axon colleagues.
- Some prices have decreased for buying of BOM components because of bigger volumes reached when combining demand from the two beforehand separated entities
The order e-book (to be acknowledged in 2020 on prime of the 1H 2020 revenues already disclosed) on October 31, 2020 quantities to EUR 41.0 million in comparison with EUR 44.3 million final yr (on the similar date) excluding large occasion leases and together with Axon order consumption as of Might 1st 2020.
Along with this order e-book to be acknowledged in 2020, EVS already has EUR 17.1 million of orders to be invoiced in 2021 and past (excl. large occasion leases) (+ 10.0 % vs the identical interval final yr).
Primarily based on the present market outlook and given the uncertainties round covid-19 impacts, EVS doesn’t give any income steerage for the yr 2020. Operational bills (excluding Axon) are anticipated to see a marked lower in comparison with 2019.
February 25, 2021: 2H2020 and FY 2020 outcomes
|For extra data, please contact:
Yvan ABSIL, CFO*
Ahead Trying Statements
We create return on emotion.
EVS is globally acknowledged as a pacesetter in reside video know-how for broadcast and new media productions. Our ardour and goal are to assist our purchasers craft immersive tales that set off the most effective return on emotion. By way of a variety of merchandise and options, we ship probably the most gripping reside sports activities pictures, buzzing leisure exhibits and breaking information content material to billions of viewers day-after-day – and in real-time.