TRADING UPDATE 3Q19 - On track for healthy growth and profit improvement in 2019

Regulated information
Kortrijk, Belgium, 23 October 2019, 07:30 am CET – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced the results for the third quarter ended 30 September 2019.

 

Note: To present comparable data for 2018, prior year figures are presented on a pro-forma basis assuming the deconsolidation of the BarcoCFG joint venture had taken place as of January 2018.[1]

 

Sales for the quarter were 266.9 million euro, an increase of 7.3% compared to 248.7 million euro for the third quarter of 2018. At constant currencies, sales growth was 4.5%.

 

Incoming orders booked during the third quarter of 2019 were 275.6 million euro, an increase of 13.3% compared to the third quarter of 2018. At constant currencies, growth in orders was 10.5%.

 

Orderbook as of 30 September 2019 stood at 359.1 million euro, a 12.4% increase compared to the third quarter of last year. This represents the fourth consecutive quarter of orderbook growth and it was mainly driven by healthy demand for cinema replacement projects in the European and North-American regions.

 

Entertainment registered a double digit increase in orders and sales fueled by cinema, with Venues & Hospitality contributing to growth for the quarter after a softer first half of the year.

Enterprise division sales were slightly lower due to a decline in sales for Control Rooms partially offset by sustained double-digit growth for ClickShare. Control Rooms sales performance reflects a slowdown in sales of UniSee after 6 quarters of strong launch driven growth, and in push-outs by customers on some larger corporate display projects mainly in the APAC region.

The Healthcare division produced double-digit growth in sales driven by strong demand in both the

surgical and the diagnostic segment.

 

Based on a strengthening order book, robust sales funnels and the overall performance year-to-date, management still expects 2019 to deliver mid-to-high single digit sales growth for the year. In terms of EBITDA margin for the full year, management is now targeting an improvement of close to 2 percentage points year-over-year.

Quote of the CEO, Jan De Witte

“As demonstrated by the healthy sales growth produced by each division year to date and the strengthening order book, Barco continued in the third quarter to execute well on its sales and marketing initiatives. I’m particularly pleased by our accelerating surgical and cinema-sales, and ClickShare’s sustained growth. Given its first-half performance and orderbook heading into the fourth quarter, Control Rooms remains on plan for the year despite a softer third quarter.

As a result, I’m confident that Barco is on track to achieve sales growth in the mid to high single digit range for the year and a solid EBITDA margin improvement year-over-year,” said Jan De Witte, CEO of Barco.

 

Order Intake & Order Book

Order Intake

(in millions of euro)

3Q19

3Q18

Change vs
3Q18

Order Intake

275.6

243.3

+13.3%

 

(in millions of euro)

YTD19

YTD18

Change vs
YTD18

Order intake

809.4

739.8

+9.4%

Order Book

(in millions of euro)

30 Sep 2019

30 Jun 2019

31 Mar 2019

31 Dec 2018

30 Sep 2018

Order book

359.1

344.2

341.0

303.2

319.5

 

Sales

Sales

(in millions of euro)

3Q19

3Q18

Change vs
3Q18

Sales

266.9

248.7

+7.3%

Sales per division

(in millions of euro)

3Q19

3Q18

Change vs
3Q18

Entertainment

120.3

108.5

+10.9%

Enterprise

77.6

79.9

-2.9%

Healthcare

69.0

60.3

+14.5%

Group

266.9

248.7

+7.3%

Sales per division year-to-date

(in millions of euro)

YTD19

YTD18

Change vs
YTD18

Entertainment

314.8

297.9

+5.7%

Enterprise

251.5

229.2

+9.7%

Healthcare

197.0

180.1

+9.4%

Group

763.4

707.3

+7.9%

 

Additional information

Financial Calendar

  • 2H19 and FY19 results Thursday 13 February 2020

The information given in this press release has not been reviewed by the statutory auditor.

 

Disclaimer:
This press release may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Barco is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release in light of new information, future events or otherwise. Barco disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other press release issued by Barco.

 

About Barco
Barco designs technology to enable bright outcomes around the world. Seeing beyond the image, we develop visualization and collaboration solutions to help you work together, share insights, and wow audiences. Our focus is on three core markets: Enterprise (from meeting and control rooms to corporate spaces), Healthcare (from the radiology department to the operating room), and Entertainment (from movie theaters to live events and attractions). In 2018, we realized sales of 1.028 billion euro. We have a global team of 3,600 employees, whose passion for technology is captured in 400 granted patents.
For more information, visit us on www.barco.com, follow us on Twitter (@Barco), LinkedIn (Barco), YouTube (BarcoTV), or like us on Facebook (Barco).

© Copyright 2019 by Barco



[1] The deconsolidation of the BarcoCFG joint venture had taken effect as of July 1, 2018. We refer to the full year 2018 results report for more info and for the comparable and reported values.

For more information, please contact

Carl Vanden Bussche
Vice President Investor Relations
Barco nv

Telephone +32 56 26 23 22
carl.vandenbussche@barco.com

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