June 29, 2017 / 4:15 PM / 23 days ago

BRIEF-Technicolor cuts FY adj EBITDA target by EUR 40 mln

2 Min Read

June 29 (Reuters) - TECHNICOLOR SA

* ‍EXPECTS PROFITABILITY OF CONNECTED HOME SEGMENT TO BE AFFECTED BY MEMORY COSTS INCREASES​

* ‍NOW ANTICIPATES THIS WILL REPRESENT ADDITIONAL NEGATIVE IMPACT AT ADJUSTED EBITDA LEVEL OF AROUND EUR 40 MILLION COMPARED TO ITS PREVIOUS EXPECTATIONS​

* ‍DRAM PRICING INCREASED BY AN ADDITIONAL 15% AT END OF Q2 COMPARED TO Q1​

* ‍FURTHER DRAM PRICING INCREASES ARE EXPECTED FOR REST OF 2017​

* ‍DOUBLE DIGIT INCREASES IN FLASH MEMORIES PRICING ARE EXPECTED FOR REST OF 2017​

* TECHNICOLOR NOW EXPECTS A NET NEGATIVE IMPACT ON ADJUSTED EBITDA OF CONNECTED HOME OF C. EUR 30 MILLION IN H1OF 2017 COMPARED TO LAST YEAR

* ‍FOR H2 2017, IMPACT, IN EVENT THERE IS NO SUCCESS IN ONGOING MITIGATION ACTIONS, EXPECTED TO BE AROUND EUR 50 MILLION COMPARED TO LAST YEAR.​

* Group Maintains Its Free Cash Flow Objective

* CONNECTED HOME REVENUES ARE EXPECTED TO DECLINE BY AROUND 10% IN FIRST HALF OF 2017 DUE TO UNFAVORABLE COMPARISON TO FIRST HALF OF 2016

* ‍REVISING ITS FY2017 ADJUSTED EBITDA OBJECTIVE, WHICH NOW EXPECTED IN RANGE OF EUR 420 MILLION TO EUR 480 MILLION (VERSUS EUR 460 MILLION - EUR 520 MILLION)​ Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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