EVS Broadcast Equipment - EVS Q3 2020 Business update

Publication on November 12, 2020, before market opening
Regulated information
EVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)

EVS Q3 2020 Business update

EVS global leader in live video technology for broadcast and new media productions today
announces its business update for the third quarter ending 30 September 2020.

HIGHLIGHTS

o   Covid-19 crisis continue to impact significantly Live Service Providers, one of the three main revenue pillars while LAB customers continue the modernization of their broadcast centers.
o   Accelerated traction for remote production workflows allowing EVS to promote several new workflow solutions
o   Order book* for 2020 revenues as of October 31^st ** of EUR 41.0 million, vs. EUR 44.3 million at the same date last year.
(-7% vs same period last year)
o   Order intake* YTD until end October 2020: -8.5% vs same period last year
o   Confirmation of the Opex guidance, expected to increase slightly YoY following integration of Axon (excluding extraordinary costs) but with a marked decrease when considering only former EVS perimeter.

* excluding big events rentals and including Axon as of May 1st
** including 2H2020 already recognized Revenues and open orders on hand that will be recognized as revenues in 2020

COMMENTS

Serge Van Herck, CEO comments the business development: “We continue to see the impact of the pandemic on our customers. With less events to produce for Live Service providers, these have seen their revenues and cash inflows dropping, which resulted in recapitalization needs for some of them and delayed or cancelled investments.
Adoption of remote production workflows is accelerating. Thanks to the flexible and “cloud-ready” solution portfolio recently strengthened with LSM-VIA, EVS efficiently supports its customers to face their challenges. We continue to see LAB customers investing in the modernization of their broadcast centers.”.

On the COVID-19 developments, Serge Van Herck added:
“We expect this pandemic will not be over soon and will continue to impact EVS in the first part of 2021. In anticipation of this, we are looking to further adjust our cost structure”.

Commenting on the results and the outlook, Yvan Absil, CFO, said: “Our orderbook (without big events) as of October 31st amounts to EUR 41.0 million. There is also an additional EUR 17.1 million of orders (excl big events rentals) to be recognized as revenues in 2021 and beyond; this represent an increase of 10 % vs the same period last year. On the costs side, thanks to marked decrease in the former EVS perimeter (reductions in consulting, travel, marketing expenses and bonus) and despite the integration of Axon since May 1st, costs will only slightly increase YoY. Finally, our cash position remains really strong with a total cash available of EUR 52.5 million at the end of September”.