Technicolor - Division on schedule

Technicolor’s Q122 results show broadly flat group revenues (at constant exchange rates) with a good step up in EBITDA as the mix shifts towards higher-margin activities and the benefits of earlier cost control exercises come through more noticeably. Management FY22 guidance is confirmed, with our forecast adjusted for a small change in accounting treatment as previously flagged. The process of spinning off the majority of Technicolor Creative Studios to a separately quoted vehicle is on schedule for implementation in Q322, with a London capital markets day set for 14 June to showcase the two intended corporate entities. Debt refinancing is also progressing to plan.