EVS reports record second quarter and summer order book; Revenue +48%, Net profit +59%, Order book +33%

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Algemeen advies 04/09/2008 06:57
. Record 2Q08 revenue of EUR 34.4 million, +47.7% vs. 2Q07 (+52.2% at constant exchange rate), thanks to strong traction from big sporting events, and a major contract signed with Presteigne Charter for EUR 5 million
. Europe up 127.9%, Asia & Pacific up 56.3%, America down 27.1% (16.1% at constant exchange rate) compared to 2Q07
. Stable EBIT margin of 64.0%
. Summer order book of EUR 38.5 million, +32.9%
. Studio represents 47.1% of that order book
. Acquisition of Dwesab BVBA, small Belgian company specialized in service and software R&D for operating workflows and management of TV stations
2008 guidance: good double-digit growth, driven by big sport events and studio acceleration

Liège (Belgium), September 4, 2008, EVS Broadcast Equipment S.A. (Euronext Brussels: EVS.BR, Bloomberg: EVS BB, Reuters: EVSB.BR) (Pinksheets: EVBEF), the leader in Professional Digital Video applications for Live, Near-Live and Studio TV Production, today reported its results for the second quarter ("2Q08") and the first half ("1H08") of 2008.

Key highlights
Pierre L'Hoest, CEO of EVS said: "We are proud about our teams. What they have achieved this summer for the UEFA EURO2008TM and for the Olympics in Beijing is fantastic. In Beijing, our industry had never seen such a deployment of technologies and workflows for one single event. Our teams, in close cooperation with our clients have successfully taken up this challenge. Everything went well and we have received great feedback from the broadcasters at both events. We are now ready to capitalize on the momentum and we will make sure that our successes in Beijing are only the beginning of a new era for EVS, with further penetration in the studio market."

Commenting on the results and perspectives, Jacques Galloy, CFO added: "In this second quarter, despite the US dollar weakness, both sales and profit were again at a record level. Note that the EUR 6.9 million rental agreements for the Olympics are being booked on 3Q08. We are continuing to reinforce the EVS team in a way to expand our business in our new niches and increase our overall service skills. The summer order intake has been good and the feed-back from our operations in Beijing leads us to confirm our revised guidance of Mid-July: a good double digit growth year. This summer's big sporting events have catalyzed our business over the last 12 months but we feel that this good business trend should continue. For instance, diversified studio segment sales are expected to exceed 40% growth this year."

(unaudited) IFRS - EUR millions, except earnings per share expressed in EUR (reviewed)
2Q08 2Q07 2Q08/2Q07 1H08 1H07 1H08/1H07
34.4 23.3 +47.7% Revenue 59.8 43.2 +38.6%
22.0 14.8 +49.0% Operating profit - EBIT 39.1 27.7 +41.0%
64.0% 63.5% +0.5pp Operating margin - EBIT % 65.4% 64.2% +1.2pp
-0.6 -0.6 +2.6% Contribution from 47% XDC affiliate -1.4 -1.0 -43.9%
15.2 9.6 +59.4% Net profit - Group share 26.9 18.1 +48.6%
16.4 10.6 +55.0% Net profit from operations, excl. XDC - Group share (1) 29.0 19.9 +45.7%
1.12 0.70 +59.5% Basic earnings per share 1.98 1.33 +48.3%
1.21 0.78 +55.1% Basic earnings per share from operations, excl. XDC (1) 2.13 1.46 +45.4%


(1) The net profit from operations, excl. XDC, is the net profit (share of the group) excluding non operating items (net of tax) and the XDC contribution. Refer to Annex 6.3: use of non-gaap financial measures.

Corporate Calendar:
12-16 September 2008: IBC TradeFair in Amsterdam (NL)
Thursday 13 November 2008: 3Q08 revenue & earnings
Thursday 19 February 2009: FY2008 revenue & earnings
Thursday 14 May 2009: 1Q09 revenue & earnings
Tuesday 19 May 2009: Ordinary Shareholders Meeting



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