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Story Filed: Tuesday, April 11, 2000 10:47 AM EST
PARIS, Apr 11, 2000 /PRNewswire via COMTEX/ -- After posting an 18.9% increase in sales in 1999, THOMSON multimedia (NYSE: TMS) increased its revenue growth for the first quarter 2000. Consolidated revenues reached 1,926 million Euros ($1.8 billion US), a 46.1% increase compared to the first quarter 1999 (1,318 million Euros). This performance, above both market and the Group's expectations, was driven by stronger growth in almost all of the Group's product categories and in particular by display and digital product sales. It confirms the success of the Group strategy initiated in 1997 to reposition its product offering on high-end and fast-growing markets.
Since January 1st, 2000, the Group consolidates the revenues of ATLINKS, the residential telephony company jointly owned with ALCATEL. Without taking into account the impact of this consolidation, the Group's performance increased by 40%.
THOMSON's strong position in the United States coupled with currency appreciation compared to the same period last year translated into a favorable impact of exchange rates.
Revenues by Segment
In millions of Euros 1Q2000 1Q1999 Variation
Displays & Components 343 250 + 36.9 %
Consumer Products 1,514 1,000 + 51.4 %
Patents & Licensing 67 67 + 0.6 %
During the first quarter of 2000, Displays and Components revenues increased 37% to 343 million Euros. This growth was due to:
* A steady growth in the color TV picture tube markets, particularly in
the U.S. Tube sales reached 3.5 million units, a 16.5% growth compared
to 1999, supported by strong demand for large and very large screen
tubes and by the ramp-up of the Foshan factory in China, which shipped
more than 136,000 large tubes.
* The continued expansion of the optical components markets. Leveraging
its flexible manufacturing capabilities in China, the Group increased
its market share in CD Audio and DVD optical modules and started
producing DVD-ROM modules, to meet demand from NEC.
Revenues generated in Consumer Products reached 1,514 million Euros during the first quarter of 2000, an increase of 51.4%, compared to last year. This performance was driven by the Group's leading positions in digital products, which continued to show significant growth during the period and represented one third of consumer product sales. Key highlights are:
* The Group shipped more than 1.4 million digital set-top boxes worldwide,
a 176% increase compared to the first quarter of 1999. Digital
satellite receiving systems from DIRECTV in the U.S showed strong
demand. In Europe, the Group improved its positions, primarily due to
sales to Canal+ initiated at the end of 1999.
* In DVDs, the Group reached record levels in the first quarter 2000, with
more than 245,000 DVD players sold. The Group also experienced very
successful sales of its cable modems, which have been certified for the
third time in succession by CableLabs(R).
* The Group witnessed growth in Europe, where TV market share improvements
were fueled by a 77 % growth in widescreen 16:9 TV's and projection TV's
driven by the success of the high-end Scenium range launched in October
1999. THOMSON-branded products sales increased by 70%.
* In the United States, the Group also enjoyed strong growth In Audio,
Communications and accessories products. The Group's TV business
benefited fully from sharp growth in high-end product ranges.
Patents and Licensing posted a 67 million Euros revenue in the first quarter 2000. In the course of 1999, the Group decided not to recognize revenues on pending renegotiations. Revenue growth was 8.3% during the first quarter 2000 on a comparable basis.
Finally, the Group was very active in implementing its New Media Services strategy. New Media Services is focused on the deployment of interactive product and services enabling access to interactive and personalized services. During the quarter, TV's featuring electronic program guides sold by the Group reached 2 million units. The GEMSTAR partnership was extended to both Europe and to the creation of the @TVMedia venture. The Group also announced that it will expand eBook reader hardware and service offerings in 2000. As planned, the Group will post service revenues in 2000.
THOMSON multimedia continues to anticipate double digit profitable growth for the year 2000.
"Our first quarter trend is a tremendous confirmation of our 99 success.
Our profitable growth has clearly accelerated, thanks to our strong positions in digital entertainment products and improving trends in market share. We are also accelerating the implementation of our New Media Services strategy. The Group intends to be the first manufacturer linking consumers and content providers with a wide variety of interactive products and personalized services. Consumers are looking to THOMSON multimedia and its brands as the leader in electronic program guides, digital music offerings, and satellite entertainment products. This paves the way for continued growth in our activities in 2000," said Thierry Breton, Chairman and Chief Executive Officer of THOMSON multimedia.
About THOMSON multimedia:
With sales of 6.7 billion Euros in 1999, THOMSON multimedia (Sicovam: 18453) (NYSE: TMS) is the world's fourth largest producer of consumer electronics. The Group has four principal activities: Displays and Components, Consumer Products, New Media Services, and Patents and Licensing. THOMSON multimedia engineers, manufactures, and markets display components, consumer products such as televisions, VCRs, audio systems, digital decoders, DVD players and professional video equipment. For more information: thomson-multimedia.com
* Currency conversion for information only, based on .9547 US Dollar to 1 Euro,
the conversion rate published in the April 10, 2000 edition of The Wall Street Journal.
DISCLAIMER: This press release contains forward-looking statements regarding TMM's prospects for 2000 that involve a number of risks and uncertainties. Among the factors that could cause actual income to differ materially from those expected are the following: business conditions and general economic conditions; competitive factors such as pricing and marketing efforts of rival companies; timing of product introductions; ability of contract manufacturers to meet product price objectives and delivery schedules; legislative, regulatory, and industry initiatives that may affect planned or actual product features and marketing methods; and the pace and success of product research and development. For more information on the potential factors that could affect the company's financial income, please review the SEC filings of the company.
SOURCE THOMSON multimedia |
