EVS Broadcast Equipment - EVS Q3 2020 Business update - Seite 2

On the Share Buy Back program, Yvan Absil, added: “We have now completed the EUR 5 million share buyback program announced in May 2020”.

EVS Market Dynamics and customer wins

Our 3 market pillars of revenues (Live Service Providers – LSP, Live Audience Business – LAB and Big Event Rental – BER) are significantly impacted by the pandemic.

The major summer sport events have been postponed to 2021, which should postpone related EVS revenues from 2020 to 2021. EVS had announced earlier this year that its order backlog as of Dec 31^st, 2019 included EUR 12.3 million of Big Event Rental orders to be recognized in 2020. It has to be noted that these events are postponed and not cancelled.
Product developments that have already been performed are expected to be reused and planned revenues will in principle shift from 2020 to 2021.

Due to the cancellation and postponement of various live events earlier this year (sport, concerts, entertainment shows), various LSP customers have heavily reduced their purchasing activity as their priority was to keep their staff ready for the restart period. Their spending for buying new equipment still is in many cases postponed to a later date

At the same time, these customers accelerate the adoption of remote production to lower their production costs and ensure respect of governmental guidelines. LSM-VIA has been “field-proven” during the summer in some of these remote workflows.

Some of our LAB customers are suffering as well. Many stadiums, universities and colleges are currently not allowed to organize any live event in their premises. On the positive side, many news related broadcast centers see their news audience peak at this moment in time which translates in continued ordering of certain of our solutions.
Traction for remote production workflows has significantly increased, with EVS offering several options to ease the work of operational teams working from a distance and from home.

Until end October, the yearly order intake declined 8.5% versus the same period last year (excl. big event rentals and including Axon as of May 1^st 2020).

Some key activities:

• Virtual IBC has been organized with hundreds of customers from everywhere in the world attending different remote demos for rich and personalized interactions
• Live Production Anywhere webshow, organized in partnership with our customers, focusing on Remote Live Production, organized with active participation of many EVS departments to show usage of EVS solutions and the dedication of EVS for its customers.
• Continuous remote interactions with customers to assist them in the design of their new solutions.

Some key wins: