Videndum H1 Pre-tax Income, Revenue Fall

Videndum Plc (VID.L), a provider of hardware and software solutions to the film and content creation industry, on Tuesday reported a decline in pre-tax earnings for the first-half of 2023, amidst a fall in revenue.

The company noted that its financial performance significantly hurt by ongoing macroeconomic headwinds and effects of destocking, and compounded by the U.S. writers’ strike.

For the six-month period to June 30, the firm registered a pre-tax income of 3.1 million pounds, compared with 22.9 million pounds recorded for the same period of previous year.

Adjusted pre-tax profit fell to 10.1 million pounds from 29.1 million pounds of 2022.

Loss for the period attributable to owners of the parent stood at 46.5 million pounds or 100 pence per share as against last year’s profit of 12.9 million pounds or 27 pence per share.

Operating income plunged to 8.6 million pounds from 26.3 million pounds of previous year.

Excluding items, operating earnings were at 15.2 million pounds as against 32.1 million pounds of 2022.

Revenue was 165 million pounds, down from last year’s 219.4 million pounds.

Looking head, Videndum, said: “The Group is experiencing significantly more impact from the strikes in H2 2023 than anticipated at the time of our May Update. This is due to the prolonged writers’ strike, the additional impact of the actors’ strike, and the fact that there is less time for a recovery in the current year. Additionally, the macroeconomic environment remains challenging. We are not yet seeing recovery in the consumer or ICC segments, and retailers are increasingly concerned about interest rates and working capital, and we are therefore still seeing some destocking. This is resulting in worse-than-expected trading conditions…”

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