Thomson Reports Excellent Sales, Strong Profit Gains During First Half
By TWICE Staff -- TWICE, 8/7/2000
Paris -- Thomson Multimedia, marketers in the United States of the RCA, GE and Proscan consumer electronics brands, reported strong first-half sales and profits, while providing revenues for its new media services business for the first time.
For the half ending June 30, Thomson reported $3.86 billion in sales (converted from euros) and a 45 percent gain, while profits were up $159 million, a 108 percent increase. The operating margin increased from 2.9 percent to 4.1 percent, and the net margin almost doubled, from 1.1 percent for last year's first half to 2.1 percent.
Thomson said that after 18.9 percent growth during calendar-year 1999, "this performance clearly highlights the strong growth" of the company's different businesses. Its performance in the United States was cited, and excluding the favorable impact of the exchange rate, revenue grew 32.6 percent.
The company said its strong operating results and increased margin have been driven by growth in revenues, "especially high-end products, the result of restructuring and re-engineering programs initiated since 1997."
First-half revenues by product category break down this way: displays and components, $731 million, up 43.9 percent; consumer products, $2.98 billion, up 45.8 percent; new media services, $950,000, the first revenue from that category; and patents and licensing, $146 million, up 33.7 percent.
Sales of consumer products were "driven particularly" by digital products, which represent 30 percent of the business' revenues. Other highlights in consumer products include:
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· 3.1 million set-top boxes were shipped during the half, the equivalent of calendar-year 1999. The company cited strong demand for DirecTV in the United States.
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· In digital cable modems, the group shipped more than 200,000 units, primarily in the United States.
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· And also in the United States, Thomson experienced growth in audio and communications products, with the latter becoming the market leader in home telephones, through ATLINKS, the joint venture with Alcatel.
Concerning new media services, the company has deployed electronic guides in more than 2.5 million televisions, which attracted a number of advertisers, including the major U.S. TV networks and car manufacturers,Thomson said.
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