Technicolor expects to out-run market growth for TV set-top boxes

Reuters

BARCELONA, Nov 21 (Reuters) - Technicolor isbullish about its TV set-top box business for next year, andexpects to outstrip growth in the market in Europe, Asia andNorth America, its chief executive said on Thursday.

Frederic Rose told an investor conference that 2014 looked"quite good" for the Paris-listed company's connected-homebusiness, which generated revenue of 361 million euros ($486million) in the third quarter, up 12.6 percent, out of totalrevenue for the group of 881 million euros.

The unit was the only part of the business that saw growthin the quarter, with both its division that provides services tothe film, broadcast and commercial advertising industries andits technical arm posting declines.

"I expect that in Europe and Asia we will grow much fasterthan the market (in set-top boxes)," Rose said at MorganStanley's annual Technology, Media and Telecoms conference inBarcelona.

"I will give more guidance on this in February, but I feelquite good about this."

He said that in North America, Technicolor, which competeswith Pace, Cisco and Arris, wasgrowing much faster than the market and would continue to do so.

"The first half of next year is looking good," he said,adding that he was less favourable on South America, where thegroup already has about 50 percent of the market.

He said his optimism was based on his view that the marketwas about to enter into a "massive" refresh cycle, driven by LTEmobile broadband becoming embedded into devices and growth ofthe new WiFi standard 802.11ac.

He also said the group needed to reach the same operatingprofit margins as Pace and Arris, which Morgan Stanley analystssaid were about 7 percent.

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