Technicolor performed in line with the Group’s expectations for FY17 Q1 with revenues slightly down on a yearly basis. The FY17 outlook remains unchanged with Adjusted EBITDA expected to be in range of $500-$560 million.
In the Connected Home segment, the overall performance was weaker compared to last year due to slowdown in European markets and Mexico while the US market remained solid with the roll-out of several flagship products. For its Asia-pacific growth strategy, it forged a partnership with Pioneer to penetrate the Japanese market.
In the Production Services segment, the company is achieving significant growth in the animation and games business and is experiencing strong demand for premium content across different market segments, especially after winning an Oscar for best visual effects at the 2017 Academy Awards.
The technology segment made good progress in its licencing programs but the revenues remained lower compared to last year because of exceptional single results has time. FY16 Q1 saw several major licensing agreements including a one time lump-sum agreement.