(CercleFinance.com) – Technicolor Creative Studios (TCS) took a heavy hit on the Paris Stock Exchange on Wednesday following the downward revision of its earnings targets for 2022.
Around 4:00 p.m., the share price was again suspended after falling by almost 67% at the start of the afternoon. The action had already been unable to quote for a little over an hour and a half at the opening this morning.
Vantiva, the former Technicolor which still holds a 35% stake in TCS, slipped 34.8% in its wake.
The special effects specialist for the film and video game industry announced on Wednesday evening that it had lowered its objectives for 2022 due to an “unprecedented” level of employee attrition.
Since this summer, the group says it has implemented many actions, but points out that the expected improvements in terms of recruitment, staffing and efficiency are not materializing at the expected rate.
At ‘The Mill’, his studio dedicated to advertising content and brand experiences, many high-margin sales could not be made due to a lack of ‘senior’ teams, he explains.
At MPC, its special effects services arm for feature films and series, some major projects have been affected by a drop in production efficiency, leading to delivery delays, additional expenses and lower margins.
As a result, Technicolor Creative Studios has revised its expectations for adjusted EBITDA after rents, now expected between 45 and 65 million euros at budget rates for this year, or 50-70 million euros at actual rates, from 120 -130 million euros previously.
In its press release, TCS specifies that its activity will continue to be impacted in the fourth quarter of 2022, and probably throughout 2023, which leads it to envisage an adjusted Ebitda stable or slightly up in 2023 compared to 2022, while he was considering it between 140 and 160 million euros previously.
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