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> Half year results 1999
First half 1999 results show strong progress
Paris, September 23 1999 - The Board of Directors of Thomson multimedia, chaired by Thierry Breton on 22 September, 1999, reviewed the consolidated results of the group for the first half of 1999. In accordance with the preliminary estimated figures released on 8 July, these results confirm significant growth in the groupís revenues and the continuation of the drive to improve profitability. The group has posted overall revenues of FF 18 455 million and an operating result of FF 587 million for the fourth consecutive semester of progress. After a positive net result in 1998, the group is now profitable for the first half of 1999, with a net result of FF 203 million.
Profit and loss statement first half 1998-1999
|Millions of FF
||1st half 1999
||99 vs 98
||1st half 1998
|Group net result
|Group Net result
Revenues reached FF 18 455 million, a 13.1% growth from 1998 (+13% at constant exchange rates). On a comparable basis, (i.e. Excluding the impact of the integration of RCA.TL), revenue growth is 9.5% (+9.4% at constant exchange rates).
All of the groupís activities performed well. TV/Video progressed significantly in the USA, digital products strengthened their positions and posted exceptional revenue growth (+100%) in digital products (mainly decoders and DVD). Audio & Communication activities also posted strong revenue growth (+21%), in particular with the development of sales to telecommunication operators in the US and sales to high-end audio specialists.
The operating result reached FF 587 million, an increase of FF 524 million compared to the first half 1998, in line with the groupís objectives. This progress covers notable improvement in the operational result of the groupís core activities, the impact of the integration of RCA .TL activities being particularly dedicated to a significant increase in expenditure linked to the projects being developed with our industrial partners, especially in the area of interactive services.
The financial result reached FF 320 million, compared to FF 336 million in the first half of 1998 because of a significant decrease in financial costs, at FF 131 million, compared to FF 173 million in 1998, and the posting of a negative exchange result mainly due to the increase of the yen.
The exceptional result reached a level close to that of 1998, with a profit of FF 60 million.
After becoming profitable for the first time in 1998, the groupís net result after tax is positive for the first half of 1999, at FF 203 million.
The Board also reviewed the preparation for Thomson multimedia initial public offering, which will take by capital increase, as announced on 20 July. This operation will allow the group to raise new funds from capital markets and industrial partners. On completion of the transaction, which will also include an offer to the groupís employees and former employees, the French State will retain a majority stake in Thomson multimediaís share capital.
Consequently, the Board called for a shareholderís meeting on 27 October to approve the resolutions regarding this offering. Depending on market conditions, this transaction could take place shortly after this meeting.
After the Board meeting, Thierry Breton, Chairman and Chief Executive Officer, said: "The first half results presented today confirm that the group has entered a new phase of profitable growth. With the support of our shareholders, we are ready to launch Thomson multimediaís initial public offering. This significant new step will provide us with additional means to accelerate our development."
About Thomson multimedia
With sales over $ 6 billion in 1998 and 50,000 employees in over 30 countries, Thomson multimedia is the fourth global supplier of consumer electronics products. The Group has four main activities: Displays and Components, Consumer Products, New Media Services, Patents and Licensing. Within its activities Thomson multimedia develops, manufactures and sells television displays and components, consumer products such as televisions, VCRs, camcorders, audio & communications products, digital decoders, DVD players and professional video equipment.
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