Monday, Thomson S.A. (TMS), a provider of video technologies, and systems, reported wider net loss for 2008, hurt in large part by impairments and write-offs.
Net loss for 2008 widened to EUR 1.93 billion from EUR 23 million in the previous year. Loss per share rose to EUR 7.41 from EUR 0.19 per share in 2007.
Results for 2008 included the negative impact of EUR 1.6 billion of goodwill and other impairments, write-offs and restructuring charges. For the previous year impairments amounted to EUR 6 million.
Adjusted net loss widened to EUR 284 million in 2008 from EUR 77 million in 2007.
Revenues declined to EUR 4.84 billion from EUR 5.5 billion in 2007. Net revenues fell 12.6% at current currency and 7.7% at constant currency compared to full year 2007.
Revenue for 2008 was negatively impacted by the strike of the Writers Guild of America, some contract renewals and planned renegotiations in Film and DVD Services which led to increased price declines, and a weak activity in some business areas. These negative effects were partially offset by the growth in some other activities, and access products for cable operators, the company said.
France-based Thomson said it has launched operational efficiency programs to achieve cost savings of about EUR 120 million per year. These savings are expected to start materializing in 2009, with a full impact by 2011.
The company said it has engaged the divestment process of Grass Valley, PRN and Screenvision previously announced on 28 January. In addition, Thomson also announced the renewal and expansion of its multi-year contract for DVD replication and distribution with Disney, and an agreement with Paramount Pictures to create a state-of-the-art postproduction sound facility on the Paramount Hollywood lot.
The revenue evolution for the first two months of 2009 shows some improvement compared to the 2008 trend, the company noted.
The Board did not propose dividend for 2008.
Frederic Rose, chief executive officer, Thomson said, "Our 2008 unaudited results reflect a difficult trading environment and are largely impacted by write-offs. Thomson is therefore taking necessary steps to improve its operational performance and address its financial situation."
Looking ahead, the Group has decided to refocus on its content creator customer base, the strength of the Technicolor brand, its in-home delivery assets and its research and licensing capabilities.
TMS declined $0.07 or 9.72% and closed Monday's regular trading at $0.65.
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