EVS Q3 2024 business update
EVS Q3 2024 business update
Reaffirming growth expectations for 2024, setting a new revenue
high for EVS, while actively building the future
- Liège, Belgium | November 14th, 2024
EVS’ financial results are firming up in line
with expectations. While the final weeks of production and
deliveries are being planned, we primarily focus on building the
future. Order intake for the fourth quarter looks promising,
ensuring a kick start in 2025. We have significant commercial
opportunities in the pipeline, which are bound to play a
substantial role in our future success and contribute to overall
order intake.
Highlights
- Revenue
performance continues to demonstrate strong growth, supported by
the successful completion of major summer sporting events.
- The secured
revenue* allows EVS to confirm the higher-end range of the existing
revenue guidance (EUR 190 - 200 million).
- Gross margin
levels continue to improve and operational expenses remain under
control, demonstrating our objective to realize a profitable growth
in 2024.
- In line with
the revenue guidance, EVS reconfirms also the higher-end range of
the existing EBIT guidance (EUR 40 - 46 million).
*secured revenue includes the already recognized
revenue as well as open orders on hand that will be recognized as
revenue in 2024
Comments
Serge Van Herck, CEO,
comments:
“I am pleased to share our third-quarter
results and provide an update on EVS’s performance and outlook. As
we enter the final quarter of the year, I am proud to report that
we are on track to achieve full-year revenue and profit at the
higher end range of our guidance, setting a new revenue all-time
high for EVS. Our dedication to innovation and customer
satisfaction remains central to our strategy, and this was strongly
affirmed at the recent IBC event in Amsterdam. We received
exceptionally positive feedback not only on our solutions like
Mediaception VIA MAP and our LiveCeption GenAI-powered live video
effects, such as XtraMotion, but also on our recent acquisition of
MOG Technologies and our minority investment in Tinkerlist. Both of
these moves are set to further enhance our MediaCeption and VIA MAP
offerings, solidifying our position in the market. Additionally,
our new MediaInfrastructure Neuron Multiviewer solution has been
very well received by customers and has begun shipping to various
clients worldwide, marking another significant step in delivering
state-of-the-art solutions to broadcast and media companies around
the world.
Our customer Net Promoter Score (NPS)
continues to rise for the fourth consecutive year, as shown in the
recent survey conducted by Devoncroft, placing us consistently in
the top 20% of best-performing companies and highlighting our
customers' increasing satisfaction. This achievement reflects the
dedication of our team, as evidenced by our annual 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. We have
received the ESG Corporate Star Award for “Best Campaign to Improve
Health and Mental Well-being” at the IBC. This recognition
celebrates EVS’s commitment to fostering a healthier work
environment and supporting the well-being of its team members. This
award underscores EVS’s ongoing efforts to prioritize the mental
and physical health of its team members as a core aspect of its ESG
strategy.
While we remain optimistic about our
company’s trajectory, we must remain cautious amid global
uncertainties. The ongoing conflicts in Ukraine and Gaza pose
potential risks to the Western economy, which could, in turn,
affect our industry. We continue to monitor closely our supply
chain, as we observe that prices for certain components are rising
faster than inflation.
We remain committed to delivering value to
our customers and stakeholders, with a continued focus on
innovation, customer satisfaction, and sustainable, profitable
growth.”
Commenting on the results and the
outlook, Veerle De Wit, CFO, said:
“2024 is confirmed to become another year of
profitable growth. Our revenue performance is secured in orders and
the planning of the production for the year is close to final. The
numbers are hinting to an achievement towards the higher-end range
of the revenue guidance. Final revenue recognition for the year
will depend on some pre-shipment conditions (such as
pre-payments).
From a profit point of view we continue to
deliver strong results. Our gross profit margin continues to
improve as per designed. For some quarters in a row, we demonstrate
that we control the evolution of our bill of material and are
capable of mirroring the impacts into our sales prices. From a
spending perspective, we see a slow down in our hiring needs and we
continue our control on our overall operating
expenditures.
As a consequence of the above, we also
confirm our EBIT guidance range (between 40 and 46 Mio€). This
range again demonstrates our ability to realize profitable growth
in 2024. In line with our revenue guidance, we see the EBIT
guidance firming up towards the higher end of the range.
Besides a convincing income statement, we
continue to benefit from a strong balance sheet. Our net cash
position is very solid and we continue to see low debt levels. All
our metrics are progressing well compared to the year end of 2023.
We mainly note positive impacts on our working capital following
lower receivables and less inventory needs.
In the fourth quarter we will primarily
focus on building 2025. We see an important pipeline in front of
us, with some large deals demonstrating strong potential. The
overall pipeline supports a growth in our full year order intake,
allowing us to start the year 2025 with a solid backorder.
Furthermore, we are working on the
integration of our recent acquisition in Portugal – MOG
Technologies. From an income statement perspective, we expect a
contribution round and about EUR 0.5 - 1.0 million to our topline
performance in 2024. In terms of EBIT the contribution is expected
to be minimal.”
Market & Technology
EVS has continued to enhance its core solutions
— LiveCeption, MediaCeption, and MediaInfrastructure — by
introducing both functional and non-functional upgrades. These
improvements cater to diverse stakeholders, including operators,
broadcast engineers, and integrators, while also ensuring the
implementation of necessary security updates. During the IBC
exhibition, EVS showcased several products and workflows deployed
in major summer sporting events, attracting strong interest from
customers across various sectors, notably expanding beyond
traditional broadcast into the Live Audience Business segment.
Customers expressed particular interest in EVS’s generative AI
capabilities, such as XtraMotion, Cinematic, and Zoom effects,
which are applied in near-real-time within LiveCeption workflows.
These innovations underscore EVS’s commitment to customer-driven
advancement, enhancing the quality of storytelling and amplifying
the emotional impact of live broadcast events. They add layers of
differentiation that go beyond EVS’s long-standing reputation for
robustness and reliability, which has been a hallmark for three
decades.
MediaCeption’s demonstrations highlighted new
integrations with MOG Technologies, expanding workflow capabilities
to meet needs beyond broadcast-specific applications. More and more
instances of VIA-MAP are being fully operational after integration
projects. The commercial traction is continuously increasing across
all regions, creating opportunities for large multi-million
projects.
MediaInfrastructure advances innovation with a
focus on OPEX optimization and sustainability, specifically
targeting carbon footprint reduction. Recent enhancements to the
Neuron platform, including the Neuron View application, leverage
FPGA technology to provide customers with both increased robustness
and significant energy savings. Additionally, a new Cerebrum
resource management module enables dynamic resource management,
offering customers the potential for reduced operational costs,
including energy savings.
These advancements reflect EVS’s dedication to
delivering customer-centric solutions that address evolving market
demands while optimizing operational efficiency and
sustainability.
Corporate Topics
On August 2nd, 2024, EVS announced
the completion of the acquisition of a minority stake position in
the Belgian Company TinkerList, a leading innovator in the media
production industry, having developed Cuez – the World’s First
Cloud-Based Rundown Management System – as a cutting-edge web
application and automation system designed to connect seamlessly
with a wide variety of production devices. TinkerList products will
be enhancing the EVS Flexible Control Room and MediaCeption
solutions through a strategic partnership in addition to the
M&A transaction.
On October 1st, 2024, EVS completed
the acquisition of 100% of the shares of MOG Technologies, a
Portugal based company with around 50 highly skilled team members,
renowned for its cloud and SW digital media and video production
tools. The transaction has been already announced earlier in August
but required the completion of formalities prior to be closed, and
which are now completed. Thanks to this acquisition, EVS will
strengthen MediaCeption and MediaHub solutions, while gaining
access to a pool of highly skilled talent and experts in the
industry. MOG Technologies will contribute to our revenue
performance in 4Q24.
Beyond these M&A transactions, EVS continues
to broaden the number of technology partners in its ecosystem to
either ensure interoperability with 3rd-party systems or to include
new capabilities in its solutions to simplify the operation of the
ever more complex content factories that our customers are
building.
EVS initiated a new evolution of its HW
technology foundations for mid-term smooth evolutions of its
products and solutions as a new IAS-38 intangible asset
project.
The supply chain for electronic components
remains a key focus for EVS, as certain component prices continue
to rise faster than inflation. While the market is gradually
stabilizing, economic developments and current geopolitical
tensions still present challenges.
On November 26th, 2024, EVS will hold
its investor day. Investors can register using this link.
Outlook
The 2024 secured revenue allows us to confirm
that the high-end range of the existing revenue guidance is within
reach (guidance is at EUR 190 - 200 million).
Next to the positive impact of our revenue
performance on our gross profit, our gross margin performance on
itself also contributes positively to our gross profit. We see an
increasing gross margin performance on all our solutions: the proof
of a well balanced pricing strategy. This results in an overall
gross profit growing faster than revenue.
From an operational expenses point of view, 2024
has been a year of investments. We have been growing our team
members since second half 2023. This additional capacity has
primarily been invested in our sales and support departments: these
investments are important as to continue and fuel our growth. Next
to a growing resource base, depreciation of past intangible assets
linked to the VIA MAP developments, are contributing to a growing
operational spend pattern. As we reach the end of 2024, we expect
to add very limited new additions to our resource base going
forward. As a result, our operating expenses have seen quite some
growth in 2024, but the growth is well projected and
controlled.
Combining all elements above, we are confident
to realize a profitable growth also for 2024. In line with our
revenue guidance, we expect our EBIT performance to be at the
higher end of the EBIT range (guidance is at EUR 40 – 46
million).
Our order intake for 2024 is still hinting to a
growth compared to 2023. We have a strong and healthy pipeline with
a lot of opportunities scheduled to close in the fourth
quarter.
Interim Dividend
The Board of Directors has decided to pay an
interim dividend of EUR 0.50 per share. The ex-date will be
November 20th, 2024 (coupon #37) and the payment date
will be November 22nd, 2024.
We reiterate the full year 2024 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
November
26th, 2025 :
investor day
February
18th, 2025 :
2H 2024 and FY 2024 results (post market publication)
May
16th, 2025 :
1Q 2025 results (post market publication)
May
20th, 2025 :
general assembly
August
19th, 2025 :
2Q 2025 and 1H 2025 results (post market publication)
November
21st, 2025 :
3Q 2025 results (post market publication)
About EVS
We create return on emotion
EVS is globally recognized as a 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 700 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. EVS is, amongst others, part of
the Euronext Tech Leaders and Euronext BEL Mid indices.
Media Contacts
For more info about this press release, or to
set up an interview with EVS, please contact:
Veerle De Wit – Chief Financial
Officer
Tel: +32 4 361 7004 – Email: v.dewit@evs.com
Sébastien Verlaine – Senior Brand &
Corporate Communications Manager
Tel: +32 4 361 5809 – Email: s.verlaine@evs.com
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.
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