EVS Q3 2023 business update
Publication on November 17, 2023 at 6:30 CET before market opening
Regulated / Inside information
EVS 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.
- 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
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.
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.
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
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).
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.
February 22nd, 2024 : 2H 2023 and FY 2023 results
May 16th, 2024 : 1Q 2024 results
May 21st, 2024 : general assembly
August 14th, 2024 : 2Q 2024 and 1H 2024 results
November 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, Belgium
Tel: +32 4 361 70 04. E-Mail:email@example.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.
We create return on emotion
EVS 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.
AttachmentTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Baltic Horizon Fund general meeting of investors and a notice to convene a new general meeting of investors6.12.2023 15:20:00 CET | Press release
Extraordinary General Meeting (hereinafter the “General Meeting”) of Baltic Horizon Fund unit-holders and Swedish Depositary Receipt (hereinafter the “SDR”) holders (hereinafter together the “Investors”) took place on 6 December 2023 in Tallinn, Estonia. Proposed agenda of the meeting was the following: Decision to elect Reimo Hammerberg as a new member of the supervisory board of Baltic Horizon Fund as of 1 January 2024 for an indefinite period.Decision to pay remuneration to Reimo Hammerberg for fulfilling obligations of the member of the supervisory board in the amount of EUR 16,000 per calendar year.Decision to elect Monica Hammer as a new member of the supervisory board of Baltic Horizon Fund as of 1 January 2024 for an indefinite period.Decision to pay remuneration to Monica Hammer for fulfilling obligations of the member of the supervisory board in the amount of EUR 11,000 per calendar year.Decision to elect Per V. Jenster as a new member of the supervisory board of Baltic Horiz
Vicinity Showcased Industrial 5G Solution in 5G-ACIA Industrial 5G day6.12.2023 15:08:22 CET | Press release
TAIPEI, Taiwan, Dec. 06, 2023 (GLOBE NEWSWIRE) -- Vicinity Technologies Limited (Vicinity) showcases the advanced industrial 5G solution in the 5G Alliance for Connected Industries and Automation (5G-ACIA) Industrial 5G Day 2023, being held in Taipei, Taiwan on 7th December 2023. Vicinity is demonstrating a low latency industrial 5G wireless networking solution to enable industrial safety applications in factories with 5G connected Automatic Guided Vehicles (AGV). Vicinity developed 5G integrated small cell (ISC) network wirelessly connects an emergency stop controller with the AGVs. The demonstration emulates an emergency scenario where the stop button is activated. The AGVs are stopped with the latency within 3ms. The response time is 200 times faster compared with the conventional 5G mobile networks. To achieve such a fast response time, the ISC supports the User Plane Function (UPF) offloading. This allows the user application running on the ISC to minimise the latency. The ISC is
International Directional Services and Veracio Announce Strategic Partnership to Advance Drilling and Downhole Technologies in North America6.12.2023 15:00:00 CET | Press release
WATSONVILLE, Calif. and SALT LAKE CITY, Dec. 06, 2023 (GLOBE NEWSWIRE) -- International Directional Services (IDS), a Granite Company (NYSE:GVA) and Veracio, a leading mining technology company, today announce a partnership to offer Veracio’s complete suite of driller-operated tooling to IDS’ clients. Veracio is making significant steps toward leveraging advanced geological technologies to enhance the mining lifecycle. While IDS and Veracio have an existing relationship, the announcement of this partnership acknowledges the vision both companies share for transforming how the drilling workflow can be enhanced with better data. By combining IDS’s expertise in directional drilling and Veracio’s geological data collection, the partnership will empower IDS and Granite clients to reduce unnecessary drilling costs, mitigate operational errors, minimize waste, and foster sustainable mining practices. “Our collaboration further strengthens Veracio’s position in the US market and reinforces our
Zoom delivers AI-powered customer experiences at an unmatched value for companies of every size6.12.2023 15:00:00 CET | Press release
New innovative product offerings include robust omnichannel and advanced AI solutions SAN JOSE, Calif., Dec. 06, 2023 (GLOBE NEWSWIRE) -- Today Zoom Video Communications, Inc. (NASDAQ: ZM) announced enhancements across its AI-powered customer experience (CX) suite and new pricing plans that are expected to be available in the coming weeks. “Zoom Contact Center has seen incredible momentum since its launch last year, reaching more than 700 customers and expanding to businesses of all sizes, from mid-market companies to global enterprises,” said Vi Chau, head of product, Zoom Phone and Contact Center at Zoom. “We have strategically invested in areas like advanced AI, workforce management, and omnichannel expansion to help build meaningful customer experiences. These new plans provide exceptional value at all levels, including enterprise-grade features at the base tier that other companies charge extra for.” To support its growing customer base and its various business needs, Zoom Contact
HqO Continues to Disrupt the Commercial Real Estate Industry with the Launch of the “2024 Best Spaces to Work in Boston” Program6.12.2023 15:00:00 CET | Press release
The company will recognize the spaces with the best end-user experiences across metro areas BOSTON, Dec. 06, 2023 (GLOBE NEWSWIRE) -- HqO, the world’s leading real estate experience platform, today announced the launch of “2024 Best Spaces to Work in Boston,” the only recognition and certification program that scores and validates end-user real estate experiences in spaces across the city. Published quarterly, the list will be based on real estate experience data from tenants and their employees gathered through HqO’s proprietary Intelligence suite of products leveraging the world’s most powerful and trusted employee experience assessment framework. This news comes on the heels of HqO’s recent $50 million Series D funding announcement and launch of their Real Estate Experience (REX) Platform, as they continue to partner with industry leaders to solve unprecedented tenant and employee retention and attraction challenges. “For the first time in the history of the commercial real estate i