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Thomson issues trading update


Paris, July, 2008 – Thomson (Euronext Paris: 18453; NYSE: TMS) announces that revenues for the second quarter of 2008 are expected to show a year-on-year decline at constant currency in the range of 5-6%, slightly better than the previously announced guidance of a 6-8% decline.

The seasonal increase in net debt during the first half is expected to be lower than during the first half of last year, reflecting the Group’s satisfactory cashflow performance in the half. The second half of the year is traditionally Thomson’s stronger cash generation period.

The Group has continued to progress its cost reduction and simplification measures. The decision to exit the Silicon Solutions business unit has been implemented. The business will be treated as a discontinued operation as at 30 June 2008, contributing to a Group net loss for the first half of 2008 which is expected to be around €220 million (of which a loss of approaching €100 million will relate to all discontinued operations).

As a result, Thomson is re-confirming today that as at 30 June it expects to meet the terms of the financial covenants contained in its outstanding privately placed debt instruments, both in terms of the debt/equity ratio and interest cover. As expected, covenant headroom as at 30 June 2008 will be lower than at 31 December 2007. The Group is confident it will rebuild covenant headroom going forward.

Recent months have also brought a number of important wins with high profile customers that will generate future revenues, including the extension of the relationships with Comcast and NBC Universal announced over the last few days. These wins underline the strong positions of each of the Group’s businesses in their respective markets.

The Group’s results for the first half of 2008 will be reported in full on 24 July 2008.


Certain statements in this press release, including any discussion of management expectations for future periods, constitute “forward-looking statements” within the meaning of the “safe harbor” of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, ”media and entertainment” markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson’s filings with the U.S. Securities and Exchange Commission.


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