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• Revenue: EUR 98.1 million, a 12.2% increase from last year.

• Order Intake: EUR 87 million, a 7.1% increase, including EUR 7.8 million from Big Event Rental.

• Gross Margin: 71.9%, a 1.2 percentage point improvement from last year.

• EBIT: EUR 23.9 million, a 4.4% decline from EUR 25 million last year.

• Net Profit: EUR 21.8 million, up from EUR 21.2 million last year.

• Earnings Per Share (EPS): EUR 1.54, a 1.3% increase from last year.

• Net Cash Position: EUR 51.5 million, an increase of EUR 15.6 million.

• Order Book: EUR 141.7 million, a 6.6% increase.

• Team Members: 642, an increase of 35 from last year.

• Revenue Guidance: Upgraded to EUR 190 million to EUR 200 million.

• EBIT Guidance: Upgraded to EUR 40 million to EUR 46 million.

• Warning! GuruFocus has detected 2 Warning Sign with EVSBY.

Release Date: August 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EVS Broadcast Equipment SA (EVSBY) reported a strong order intake of EUR 141 million, a 7% increase compared to the previous year.

• Revenue reached a new high of EUR 98.1 million, marking a 12% growth from last year.

• The company successfully delivered major summer events, showcasing its capabilities in live production.

• EVS Broadcast Equipment SA (EVSBY) is expanding its AI capabilities, enhancing live motion production.

• The company announced strategic acquisitions of MOG Technologies and a minority stake in TinkerList, aiming to strengthen its product offerings and market presence.

Negative Points

• The EBIT margin declined slightly to 24.3% from 25% last year, despite strong revenue performance.

• Economic and geopolitical risks, including inflation and potential impacts from upcoming North American elections, pose challenges.

• The LSP market in the UK is experiencing tension, with two customers going bust recently.

• APAC region saw a decline in revenue compared to last year due to specific deals not repeating.

• The company faces ongoing challenges in managing inventory and electronic components, although the situation is stabilizing.

Q & A Highlights

Q: Can you explain the 44% growth in your pipeline and its significance? How does it compare to sales, and what is the probability of converting this pipeline into orders? A: The pipeline growth is driven by new opportunities, particularly with the introduction of VIA MAP, which is attracting interest from customers looking to replace aging systems. The conversion rate from pipeline to orders is over 50%, indicating a strong potential for future order intake. However, larger projects can take 1 to 2 years to convert from pipeline to orders. Serge Van Herck, CEO