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You are in : About us > Key figures and financials > Financial results
> Full year results 2000
 

2000
 

 
Results 2000 :
Record year with 36% revenue growth
and 50% EBIT increase

The Group anticipates further progresses in 2001


Paris, February 12, 2001 - The Board of Directors of Thomson multimedia met on February 9th, 2001 to review the 2000 consolidated accounts. The Board welcomed the achievement, reached more than one year in advance, of the objectives set at the time of the November 1999 IPO. The acceleration of the Group's profitable growth reflects its successful repositioning strategy to seize opportunities arising from the digital transition and a continued focus on operational performance. Following a very good fourth quarter, the Group reached for the full year revenues of €9,094 million, a +36% increase compared to 1999, while increasing its profitability, with a 6% EBIT margin. Net result reached €394 million, or 4.3% of revenues.

Income statements - 2000 vs. 1999

In millions Euros 2000 1999 Variation
Revenues 9 094 6 690 +36%
EBIT 546 366 +49%
EBIT margin 6% 5,5%  
Financial Result (77) (80)  
Current Result 469 286 +64%
Group Net Result 394 231 +70%
Net margin 4,3% 3,5%  
Earnings per share (in Euros) 1,56 1,17 +33%


Strong revenue growth and improvement of operational profitability
The consolidated revenues for the year 2000 totaled €9,094 million, an increase of 35.9% versus 1999. Excluding the impact of currency appreciation, the Group's revenue increased by 22.6%. During the second semester, the Group posted strong revenue growth of 29,4%, with 24.6% for the fourth quarter 2000, a level significantly above the very strong fourth quarter 1999.

The Group's EBIT reached €546 million, an increase of 49% compared to 1999. This improvement is driven by the very strong performance of Displays & Components, Consumer Products and Patents & Licensing, each of them having significantly reinforced their growth and profitability. This progress provides the Group with a robust and diversified profitability profile enabling it to accelerate its development strategy in new business segment at the core of the digital transition, particular in New Media Services which posted its first material revenues in 2000, and Digital Media Solutions.


Improvement in all activities

In millions Euros 2000 1999 1999/2000
Variance
Revenue by activity
Displays & Components 1 686 1 279 +31,8%
Consumer Products 7 010 5 124 +36,8%
New Media Services 9 0 -
Patents & Licensing 378 278 +36,0%
Ebit by activity
Displays & Components 262 216 +21,3%
Consumer Products 177 93 +90,3%
New Media Services -83 -55 -
Patents & Licensing 319 218 +46,3%


Displays & Components
Displays and Components experienced a strong increase in external sales, which reached €1,686 million (+31.8%), driven by the Group's tubes and optical component businesses. In the tube business, growth was fuelled by market share gains in Europe and by a continued focus on large and very large size color TV picture tubes. In optical component, the Group benefited from market share gains and improved product mix, with a very strong growth in optical modules for DVD-movie and DVD-Rom.

Displays and Components recorded an EBIT of €262 million, with an operating margin of 10,3% of total revenues.


Consumer Products
Revenues in Consumer Products reached €7,010 million, an increase of 36.8%, primarily driven by digital products.

  • For the year 2000, the Group shipped over 6.8 million digital boxes, confirming its worldwide leading position, and reflecting a strong demand for U.S. digital satellite decoders and successful developments in Europe, where unit sales of decoders were multiplied by 2.5. Unit sales of cable-modems have been multiplied by 5.

  • The Group also experienced strong growth in DVDs, both in the U.S. and in Europe, with 1.4 million units shipped in 2000 compared to 0.8 million in 1999.

  • In color TV, the Group continued to focus on high-end and innovative products, with the Scenium and Life product range in Europe, and on successful cooperations with large retailers of digital products in the U.S.. This marketing strategy enabled the Group to strengthen significantly the Thomson brand in Europe, with a sharp market share gain (+0.9 point). Sales under the Thomson brand represented 77% of the Group's sales in Europe.

  • In Audio and Communication, the Group also recorded strong growth, with Audio unit sales up by 21% in Europe. For its first year of operation ATLINKS reached the number one position in the residential telephony markets both in the U.S and worldwide.

    During the fourth quarter, the Group maintained a very high level of activity for consumer products, achieving 26% growth compared to the fourth quarter of 1999, and recording market share gains in the U.S. and Europe.

    The EBIT of Consumer Products continued to progress at €177 million, a two-fold increased compared to 1999, with an operating margin reaching 2.5% (+0.7 points). The margin improvement reflects the continued focus on high-end products and the impact of restructuring and reengineering programs, impact which will be felt also in 2001.


    New Media Services
    In 2000, the Group posted its first material revenues in New Media Services, with €9 million recorded for the full year. The Group continued to deploy actively electronic program guides : at the end of 2000, the installed base reached 4 millions of equipped TV's in the U.S attracting new advertisers. In addition, Thomson multimedia unveiled TAK, the first interactive television, which is being deployed in France in the beginning of 2001.

    The EBIT loss in New Media Services was €(83) million in 2000 compared to €(55) million in 1999.


    Patents and Licensing
    Revenues for Patents and Licensing reached €378 million, an increase of 36.1% due in particular to the appreciation of the U.S. dollar and Asian currencies, the expansion of licensing programs on digital and interactive television technologies (DVD, mp3…) and the development of third-party licensing (GSM,...). The activity recorded an EBIT of €319 million, and an improved EBIT margin of 84.4% compared to 78.5% in 1999.


    Net Result of €394 million, or 4.3% of revenues
    The consolidated net result increased by 70% to reach €394 million, a 4.3% net margin. This result includes a financial result of €(77) million, and a non current result of €(92) million, composed principally of a €(105) million restructuring provision, in order for the Group to further increase its productivity in 2001.


    Strong cash position
    The Group generated, like every year since 1997, positive cash flow which amounted in 2000 to €107 millions. The Group strengthened its cash situation with the capital increase and bond offering realized during Fall 2000. It enjoys today a strong cash position with financial resources of approximately 1 billion euros after taking into account the impact of the acquisitions of Philips' professional broadcast activities and of Technicolor.


    Outlook
    Because of the lack of visibility on the first half of 2001, due in particular to difficulties in markets such as PCs, mobile phones and certain components (LCD, etc…), to which the Group is not exposed, Thomson multimedia observes that markets are not as buoyant as at the beginning of 2000, particularly in the U.S.. However, many categories such as digital and high-end products, which constitute the core of the Group's activity, continue to enjoy sustained growth. With its business repositioning around five activities where it has leading positions on diversified geographies, Thomson multimedia believes it is well positioned to cope with the evolutions of the market environment. The Group therefore anticipates a level of activity during the first quarter 2001 comparable to the very strong first quarter 2000, and expects to post double digit growth both in revenues and EBIT for the full year 2001.

    This growth will be supported by major business initiatives launched in each activity during 2000 and which will reach market in the course of 2001. Some of these, for example, are optical modules for the X-Box, storage module with Seagate, Ultimate TV decoders, TAK televisions…In addition, the Group will ensure the integration and pursue the expansion of its fifth activity, Digital Media Solutions, which will benefit from developments realized in 2000, in particular the joint company in Interactive video networks with Alcatel, the acquisition of Philips' professional broadcast businesses and the acquisition of Technicolor which will strongly contribute to EBIT and cash.

    "Thomson multimedia has significantly strengthened its growth profile and financial situation in 2000. With the business repositioning achieved over the last three years in cooperation with our strategic partners, the strengthening of our financial resources and our recent acquisitions, we anticipate for 2001 further progresses which will reinforce our leadership both in growth and in profitability" said Thierry Breton, Chairman and CEO of Thomson multimedia.


    About Thomson multimedia
    With sales of 9.1 billion Euros (U.S. $ 8.3 billion) in 2000 and 67,000 employees in more than 30 countries, Thomson multimedia (Paris EUROCLEAR: 18453) (NYSE: TMS), provides a wide range of technologies, systems, finished products and services to consumers and professionals of the entertainment and media industries. To advance and enable the digital media transition, Thomson multimedia has five principal activities: Displays and Components, Digital Media Solutions, Consumer Products, New Media Services, and Patents and Licensing. The company distributes its products under the popular Thomson and RCA brand names. For more information: www.thomson-multimedia.com.

    This press release contains forward-looking statements regarding prospects for 2000 and 2001 that involve a number of risks and uncertainties. Among the factors that could cause actual results 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 relevant SEC filings.


    Presse relations
    Marc Meyer
    Tel: +33 (0)1 41 86 50 03

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