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Thomson Reports 14.8% Core Biz Growth

4/22/2005 09:04:00 AM Eastern

Paris — Under a new organizational structure implemented Jan. 1, French media and entertainment company Thomson reported a first quarter sales gain of 14.8 percent in its three core media and entertainment divisions — including services, systems and equipment and technology.

Total core sales for the three segments hit $1.77 billion for the first three months, ended March 31, and $1.82 billion at constant currency. This compares with $1.6 billion in the first quarter of 2004.

Among the media and entertainment segment activities are licensing revenue, home networking connectivity and DVD home entertainment and film services.

Thomson’s non-core displays and CE partnerships business, which, in the past, included RCA-brand consumer electronics products, reported first quarter 2005 actual sales of $347.3 million, or $356.4 million at constant currency.

The $872.1 million recorded for displays and CE partnerships in the first quarter of 2004 does not take into account changes in the segment’s structure, mainly the outsourcing of its television business and the discontinuation of its tube business. Therefore, a quarter-over-quarter percentage change could not be calculated.

The impact of TV deconsolidation from Thomson’s displays and CE partnership segment, completed last August, is underscored by $428.2 million in first quarter 2004 sales of televisions and tubes, which is not translatable to the newly constructed segment’s first quarter of 2005. The same is true for additional sales for marketing and sales services this year, currency effects, plant shutdowns, disposal in tubes and lower activity.

Thomson does not report income numbers in its first and third quarterly reporting periods, only revenue. Both sales and profit numbers are reported only at the end of six months and the full year.