EVS Broadcast Equipment Q1 2021 Business update
Publication on May 20 2021, before market opening Regulated
information.EVS Broadcast Equipment S.A.: Euronext Brussels
(EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)
EVS Q1 2021 Business
update – Strong
post-Covid recovery in
our 3 Market Pillars
- EVS global leader in live
video technology for broadcast and new media productions today
announces its business update for the first quarter ending 31
March 2021.
HIGHLIGHTS
- 2021 Booked revenues* as of March 31st are EUR 54,0 million
(excl Big Event Rental), vs EUR 36,9 million at the same date last
year (+ 46,3% vs last year). Considering the high probability that
the large European and Asian summer sport events will take place,
there is an additional EUR 13,2 million of revenues to be
recognized for the Big Events Rental later this year.
- Operational
expenses continue to be closely managed and EVS expects those costs
to slightly increase compared to 2020 mainly based on the full year
impact of the addition of our MediaInfra solutions (through the
acquisition of Axon in May 2020).
- The EVS General
Assembly approved the payment of a dividend of EUR 0,5/share for
the year 2020 to EVS’ shareholders, to be paid in May 2021.
- Based on the
assumption that the pandemic is getting worldwide under control by
Q3 2021 and that the major summer sport events are taking place as
planned, we expect 2021 revenues to be in the range between EUR 110
million and EUR 120 million.
COMMENTS
Serge Van Herck, CEO comments the business
development: “Based on our Q1 results and a continued strong order
intake, I am cautiously optimistic for 2021. Our customers are
showing clear signs of post-Covid recovery. This provides us
sufficient confidence to release a revenue guidance for 2021 of EUR
110 million to EUR 120 million. Compared to EUR 88 million revenue
in 2020, this shows the level of expected recovery.
Our 3 Market Pillars (Live Service Providers,
Live Audience Business and Big Event Rental) are showing revenue
growth compared to 2020.
Our Live Service Providers (LSP) customers are
restarting their LiveCeption (our live production replay and
highlights solution) upgrade programs, leveraging our new LSM-VIA
for remote production as it has been proven once again during the
Superbowl and many other major sporting events. The recent launch
of XtraMotion is a great addition to our LiveCeption solution and
is expected to further revolutionize the quality and intensity of
our customers’ storytelling. XtraMotion is our cloud-based super
slow-motion service that is based on our own innovative Artificial
Intelligence implementation and was extensively and successfully
tested by Fox Sports in the US for various sports. Thanks to
XtraMotion our customers will be able to turn images from any type
of camera into a super slow-motion effect but without the hefty
investment in a large and expensive super slow-motion camera.
*Booked revenues include: - already recognized revenues from
previous years and current year orders - previous years and current
year orders currently planned to be recognized in the current
calendar year
Next to this, I am particularly happy with the
traction that we experience with our Live Audience Business (LAB)
customers for their broadcast center modernization projects. Our
EVS MediaCeption solution (content management for live productions)
currently in operation by several customers is a proof point for
the market that EVS is a trusted partner for these challenging
transformation journeys.
For our Big Event Rental, EVS will support the
live production of the major sport events this summer. I’m also
proud to say that the host broadcasters for two major sport events
in 2022 have recently renewed their trust in our solutions and
services.
Since the major acquisition of Axon in May 2020,
it is good to see that the operational integration has progressed
according to plan. Our new MediaInfra solutions have been fully
integrated into our solution portfolio and have started to generate
the expected customer interest across the globe. Thanks to the
involvement of many stakeholders, EVS is now proposing a
disruptive, future safe and TCO (Total Cost of Ownership) optimized
approach for our customers engaging in the modernization of their
media infrastructure.
To overcome potential shortages of electronic
components due to the current market conditions, we have secured
our inventory and we expect to be able to deliver our products to
our customers within normal timeframes.
Overall, we feel the resilience of our teams and
we hope to get out stronger from this period of pandemic.”
Commenting on the results and the outlook,
Ingrid ROGY, CFO ai, said: “Our 2021 booked revenues* (without Big
Event Rental) as of March 31st amount to EUR 54,0 million, with
about 85% expected to be recognized as revenues in H1 2021. There
is also an additional EUR 13,2 million of revenues that will be
recognized in 2021 for Big Event Rental that will take place during
the summer of this year. Until end of March, the order intake
progressed well versus the same period last year, with +39.8 %
order intake (excl. Big Event Rental). End of April, we have a
strong order book especially thanks to our strong EMEA and NALA
activities.”
EVS MARKET DYNAMICS & CUSTOMER
WINS
We observe a recovery in the revenues from the 3 market pillars
(Live Service Providers – LSP, Live Audience Business – LAB and Big
Event Rental – BER), each strongly impacted by the pandemic in
2020.
EVS has shipped its needed equipment to support the major summer
events as planned, leading to revenue recognition of related
revenues later during this year. Host broadcasters of major events
in 2022 also renewed their trust in EVS and its continuous
innovation to improve the flexibility and operation easiness in
these critical productions.
LSPs are restarting the upgrades of their infrastructure to
leverage the unequalled power of XT-VIA and its capability to
nicely support remote production thanks to the addition of
LSM-VIA.Thanks to our VIA platform based MediaCeption solution, EVS
continues to receive new orders from LAB customers for
multi-million multi-year modernization contracts. And the
revenues linked to major orders booked in 2020 are now started
being recognized based on the successful deployment of the systems,
currently in operation.
EVS did also recently launch its new version of its website,
better highlighting and simplifying its strong and broad portfolio
of solutions:
- LiveCeption: Live production, replay & highlights
- MediaCeption: Production Asset Management
- MediaInfra: Workflow & infrastructure
These solutions contribute to the revenues of the different
market pillars.
MediaInfra (former Axon) orders continue to materialize. New
offerings are being developed, which are expected to start
supporting the growth of these solutions.
After an extensive incubation and machine learning period, and
after a series of tests for different kinds of content, EVS
launched its XtraMotion service, a cloud-based service aimed to
create impressive slow-motion replays. This service complements and
enhances LiveCeption solutions. XtraMotion is a cloud-based
service that allows production teams to transform any live footage,
as well as post and archived content into super slow-motion
replays. Designed to be seamlessly integrated into EVS’ live
production ecosystem, replay operators can simply clip any content
from anywhere on the network, render it to super slow-motion and
play it back in seconds from their EVS replay server.
Using machine learning algorithms, the rendering process
can be applied on-demand on any production format and on any
original framerate to create high quality super slow-motion
content, from any camera, with unrivalled results. Available as a
cloud-based service, XtraMotion can be deployed in instants,
whenever and wherever customers need it, with no additional
hardware required on site.
EVS enjoyed more key wins during the first quarter:
- Many customers continue to upgrade their XT3 servers towards
the latest XT-VIA generation. The move from SDI to IP and the
increased need for remote production, are clearly supporting
trends.
- EVS received a major multi-million multi-year XT fleet upgrade
order for a large and trend setting OB Van company in the USA. EVS
also received important orders from key players accelerating their
XT server fleet upgrade in different countries in Western
Europe.
- A major US network sport broadcaster decided to order a
multi-million EVS MediaCeption solution and will therefore migrate
away from its current content management solution provider. This
will be a state of the art solution that enables the modernization
of their content production hybrid workflows, supported by both
on-premises based equipment and cloud based elements.
- Various new MediaCeption content management implementations
(based on the VIA platform architecture) are being deployed and put
into operation, confirming the relevance of the platform for our
customers as critical part of their transformation journey.
- A first large MediaInfra deal has been closed in the USA based
on Neuron and Cerebrum in partnership with an integrator proposing
end-to-end EVS solutions.
- As every year, EVS equipment did efficiently enable the live
production of the “LV Super Bowl”, operated by CBS this year.
OUTLOOK
The 2021 booked revenues* on March 31st, 2021 amounts to EUR
54,0 million compared to EUR 36,9 million last year (YOY + 46,3%,
excluding Big Event Rental). Additional EUR 13,2 million orders
already received for Big Event Rental will be delivered and
recognized later in 2021.
In addition to those 2021 booked revenues*, EVS has EUR 14,7
million of orders to be invoiced in 2022 and beyond (excl. Big
Event Rental).
Based on the assumption that the pandemic is getting worldwide
under control by Q3 2021 and that the major summer sport events are
taking place as planned, we expect that revenues for 2021 will be
landing in a range between EUR 110 million and EUR 120 million.
Operational expenses continue to be closely managed and EVS
expects those costs to slightly increase compared to
2020
mainly due to the full year impact of the
MediaInfra acquisition (Axon) that was performed in May 2020.
CORPORATE
CALENDAR:
August 26, 2021: 2Q21 & 1H2021Results
November 18, 2021: 3Q21 trading update
For more information, please contact:Ingrid Rogy ,
CFO aiEVS Broadcast Equipment S.A., Liege Science Park, 13 rue du
Bois Saint-Jean, B-4102 Seraing, Belgium Tel: +32 4 361 70 00.
E-mail:corpcom@evs.com; www.evs.com |
Forward Looking StatementsThis 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. |
About EVSWe create return on emotion.EVS is globally recognized as
a leader in live video technology for broadcast and new media
productions. Our passion and purpose are to help our clients craft
immersive stories that trigger the best return on emotion. Through
a wide range of products and solutions, we deliver the most
gripping live sports images, buzzing entertainment shows and
breaking news content to billions of viewers every day – and in
real-time.The company is headquartered in Belgium with offices in
Europe, the Middle East, Asia and North America, and provides sales
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. |
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