While Technicolor Group's 2011 revenues dipped 3.5% €3,450 million from €3,574 million in 2010, the Entertainment Services division - digital production and DVD/BD replication - had a record year. On the other hand, Digital Delivery revenues declined. For the full year 2011, Entertainment Services revenues reached €1,779 million, up 4.8% at current currency (and up 8.0% at constant currency).

In the fourth quarter of 2011, combined DVD and Blu-ray volumes increased by 1% compared to the fourth quarter of 2010, which already included the Warner Bros. contract as it started in August 2010.

Normalising prior quarters for the impact of this new business, Technicolor's fourth quarter of 2011 represented the fifth consecutive quarter of year-on-year volume growth, "demonstrating the ongoing resiliency of DVD Services business," says the company. A total of 1,540 million disc units were replicated in 2011, up 22% (1,263 million) compared with 2010, the highest level ever recorded by the Group.

Standard-definition DVDs increased 18% to 1,270 million units last year (1,073 million in 2010). Volumes of Blu-ray Discs increased 62% to 152 million units (94 million in 2010). Games, software and kiosk grew 23% to 118 million discs (96 million in 2010).

Technicolor says this packaged media growth was driven by a variety of factors, including continued expansion of the Blu-ray disc format, as well as market share gains in the Games segment. Volumes also benefited from a number of major new release titles across all major studio customers, including Walt Disney's The Help, Paramount's Kung Fu Panda 2, Universal Pictures' Cowboys and Aliens, and Warner Bros’ Harry Potter and the Deathly Hallows Part 2.

In contrast, Digital Delivery did not do well. In the fourth quarter of 2011, this group segment's revenues amounted to €343 million, down 18.8% at current currency (and down 17.9% at constant currency) compared to the fourth quarter of 2010, "reflecting a drop in Connected Home revenues, due to weaker shipments of Connected Home Products and a less favorable geographic and product mix, as well as a decline in Media Services revenues," says the company. For the full 2011 year, Digital Delivery revenues fell 15% to ?1,210 million from €1,423 million the previous year.

Technicolor is implementing the Amplify 2015 plan aimed at putting the Group "on a new growth path to achieve its strategic ambition: lead innovation in media monetization solutions." Amplify 2015 is built on three pillars ? boost the innovation pipeline and expand licensing; develop innovative solutions to address expanding digital markets; consolidate and expand geographically to gain scale or access broader ecosystems.

Story filed 27.02.12