Technicolor expects to out-run market growth for TV set-top boxes
BARCELONA (Reuters) - Technicolor is bullish about its TV set-top box business for next year, and expects to outstrip growth in the market in Europe, Asia and North America, its chief executive said on Thursday.
Frederic Rose told an investor conference that 2014 looked "quite good" for the Paris-listed company's connected-home business, which generated revenue of 361 million euros ($486 million) in the third quarter, up 12.6 percent, out of total revenue for the group of 881 million euros.
The unit was the only part of the business that saw growth in the quarter, with both its division that provides services to the film, broadcast and commercial advertising industries and its technical arm posting declines.
"I expect that in Europe and Asia we will grow much faster than the market (in set-top boxes)," Rose said at Morgan Stanley's annual Technology, Media and Telecoms conference in Barcelona.
"I will give more guidance on this in February, but I feel quite good about this."
He said that in North America, Technicolor, which competes with Pace, Cisco and Arris, was growing much faster than the market and would continue to do so.
"The first half of next year is looking good," he said, adding that he was less favorable on South America, where the group already has about 50 percent of the market.
He said his optimism was based on his view that the market was about to enter into a "massive" refresh cycle, driven by LTE mobile broadband becoming embedded into devices and growth of the new WiFi standard 802.11ac.
He also said the group needed to reach the same operating profit margins as Pace and Arris, which Morgan Stanley analysts said were about 7 percent.
(Reporting by Paul Sandle; Editing by Greg Mahlich)