(CercleFinance.com) – The Technicolor Creative Studios (TCS) share got off to a rocky start on the stock market on Tuesday for its first day of trading following the finalization of its split from the Technicolor group.
At 1.82 euros, the title opened down almost 7% this morning, in a Parisian market that was nevertheless on the rise, a significant decline which led to a suspension of the price in the very first exchanges.
For the record, the technical reference price of the visual effects specialist had been set at 1.9539 euros per share.
The stock market listing of the Technicolor subsidiary looked promising.
The Group – a leading independent provider of services
creatives in the field of visual arts – claims to be well positioned to generate profitable and value-creating growth.
His MPC studio – which offers special effects services for feature films and episodes – was recently involved in the film ‘Elvis’ and collaborates regularly with Disney+, Netflix, Apple TV, Amazon and HBO.
The company also houses the brands The Mill (advertising content and brand experience), Mikros Animation and Technicolor Games.
Thanks to the dynamism of its activity, TCS succeeded in raising its adjusted operating margin (Ebitda) to 13%, but analysts point out that its profitability risks being hampered by the tensions affecting the job market in its field, and which result in recruitment difficulties, high turnover and high wage costs.
Technicolor had itself acknowledged in the past that the shortage of talent in this market complicated the delivery of its subsidiary’s projects.
Analysts also mention TCS’ strong dependence on economic cycles, the relatively small size of its market and the high level of concentration of its customers.
Another downside, the operation has the stated objective of reducing the debt of the rest of the Technicolor group, whose debt will increase from 1.2 billion euros before the separation to 375 million euros after the split.