CORPORATE PRESS RELEASE
UNAUDITED COMBINED
FINANCIALS
Technicolor Creative Studios Q1 Business
Update
PARIS (FRANCE), MAY 15, 2023 –
Technicolor Creative Studios (Euronext Paris: TCHCS) (the
“Company”) today announced its first quarter 2023 business
update.
- First quarter 2023 revenues of €168 million,
down -15% at current rate compared to the same period last year,
and as expected.
- Drawdown of a first refinancing tranche of
€85,000,000 early April.
- Strong creative performance across all four
Studios with a sustained delivery of high-quality projects and
major Awards won following numerous nominations.
- Progress on the implementation of the Re*Imagined
program with creative and business development teams
strengthened with industry veteran appointments.
Caroline Parot, Chief Executive Officer of
Technicolor Creative Studios, said: “The first quarter of 2023 was
eventful across our four Studios. We kept delivering high-quality
projects while accelerating the implementation of our Re*Imagined
program, which was designed to tackle the operational challenges we
experienced at the end of last year. As expected, our revenues do
not yet reflect the benefits of this program which should
materialize progressively over the next semesters. However, our
reinforced liquidity allows us to keep focusing on our clients’
vision while setting Technicolor Creative Studios back on its
journey towards sustainable and profitable growth.”
Q1 2023 FINANCIAL
HIGHLIGHTS
Revenues
Q1 2023 |
Q1 2022 |
% Change |
% Change at constant currency |
in € million |
75 |
99 |
-24% |
-21% |
MPC |
44 |
23 |
+91% |
+92% |
Mikros Animation |
46 |
73 |
-37% |
-38% |
The Mill |
3 |
3 |
+0% |
-4% |
Technicolor Games |
168 |
198 |
-15% |
-14% |
Total |
Technicolor Creative Studios revenues amounted
to €168 million in the first quarter of 2023, down -15% at current
rate (down -14% at constant rate) compared to the same period in
2022.
At MPC, first quarter 2023
revenues amounted to €75 million, down -24% at current rate
compared to the same period last year (down -21% at constant rate).
This underperformance was expected as the Studio faced lower
activity compared to a high Q1 2022 with major shows in full
production being delivered end of 2022 and beginning of 2023.
At Mikros Animation, first
quarter 2023 revenues amounted to €44 million, up +91% at current
rate, compared to the same period last year (up +92% at constant
rate). This significant growth was driven by a low Q1 2022 with
major feature animation projects ramping up in H2/2022 for
deliveries in H1/2023.
At The Mill, first quarter 2023
advertising revenues amounted to €46 million, representing a -37%
decrease at current rate (down -38% at constant rate) compared to
the same period in 2022. Activity was restricted by an unfavorable
macroeconomic environment with decelerating advertising spending,
increased competition compared to Q1 2022.
At Technicolor Games, first
quarter 2023 revenues amounted to €3 million, flat at current
rate compared to the prior-year period (down -4% at constant rate).
Standalone cash and debt
Liquidity (Cash and cash equivalents) at the end
of March 2023 amounted to €47 million (with the €40 million
RCF fully drawn) and nominal net debt excluding operating
lease debt to €654 million (IFRS debt at €744 million and €606
million excluding operating lease).
Refinancing status
A first tranche refinancing has been drawn early
April in aggregate principal amount of €85,000,000. A second
tranche of the refinancing for an aggregate principal amount of
€85,000,000 will be granted by the end of the second quarter of
2023. This refinancing will be subject to approval by the General
Meeting held on May 15, 2023.
Q1 2023 KEY BUSINESS
HIGHLIGHTS
MPC: In the first quarter of
2023, MPC has been recognized for its outstanding creative work by
being nominated for and receiving several awards, including:
- three Visual Effects Society (“VES”) awards for its work on
Thirteen Lives and Guillermo del Toro’s Pinocchio;
- award for Best Visual Effect at the 48th César ceremony for
Notre-Dame Brûle;
- Best Animated Feature at this year’s Oscars for Guillermo del
Toro’s Pinocchio.
Also in early 2023, MPC has strengthened its
leadership team with the appointments of:
- Ludovic Iochem as Head of Studio for MPC Montreal. With over 20
years of experience in the VFX industry and extensive expertise in
production operations, Ludovic has an impressive career portfolio
including Quantum of Solace and Avengers: Endgame.
- Sal Umerji as Head of Studio for MPC London. Sal began his
career in VFX in 2000 as an MPC runner and over the last 6 years
has been supporting The Mill across their Bangalore and London
studios.
Mikros Animation: The Studio
started the year strong with several of its projects seeing their
trailers being released. Nickelodeon Films and Paramount Pictures
have shared the first trailer for Teenage Mutant Ninja Turtles:
Mutant Mayhem. Paramount+ also released the official trailer and
key art for season two of the original animated series RUGRATS.
Other Mikros Animation highlights include winning the Best New
Series – Kids Programming category award for Kung Fu Panda: The
Dragon Knight.
The Mill: Ranked as the #1
Post-Production company in the UK and Europe in LBB’s Immortal
Awards Table of Creativity for 2023, The Mill is having a great
start to the year. Other highlights include:
- being involved in a total of 28% of Super Bowl spots that aired
during this year’s game (16 commercials);
- working on Tide’s new spot, which stars actor Kumail Nanjiani,
in collaboration with agency Saatchi & Saatchi, director
Traktor and Stink Films;
- crafting MSC Cruises latest spot, which emphasizes green
energy, recycling, and other moves towards achieving net zero
emissions on the ocean, in collaboration with 180 Amsterdam and MJZ
Director Gary Freedman.
- winning best Visual Effects in Advertising at the Genie Awards
for Samsung’s “Playtime is Over”.
The Mill has also welcomed incredible talent
within its teams, with award-winning colorist Katie Dymmock
(Colorist, London), Kenya Agunloye (Producer, New York), and Elodie
Ichter (Senior Colorist, New York) joining. The three will focus on
growth opportunities and the global development of The Mill’s color
network.
Technicolor Games: The Studio
has pursued its long-standing, active and collaborative
relationships with leading game developers and publishers including
Electronic Arts, Ubisoft, Take-Two Interactive and Activision. The
teams have been growing with the appointments of:
- Romain Killian as Global Head of Development. Based in
Montreal, this industry veteran will be building on the Development
service offering for Technicolor Games as the business continues
its global expansion and service lines.
- Vik Long & Justin Phass as Business Development Directors,
based in North America.
A contract termination due to the decision by
producers to rewrite a show’s script, is expected to have a
negative impact on Technicolor Creative Studios revenue growth over
the next quarters.
***
ABOUT TECHNICOLOR CREATIVE
STUDIOS Technicolor Creative Studios shares are
admitted to trading on the regulated market of Euronext Paris
(TCHCS)
Technicolor Creative Studios is a creative
technology company providing world-class production expertise
driven by one purpose: The realization of ambitious and
extraordinary ideas. Home to a network of award-winning studios,
MPC, The Mill, Mikros Animation and Technicolor Games, we inspire
creative companies across the world to produce their most iconic
work. Our global teams of artists and technologists partner
with the creative community across film, television, animation,
gaming, brand experience and advertising to bring the universal art
of storytelling to audiences everywhere.
www.technicolorcreative.com
***
Investor Relations
Contact:investor.relations@technicolor.com
Corporate press:Teneo: tcs@teneo.com
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