Good day. Thank you for standing by. Welcome to the EVS first half 2023 results webcast and conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star 11 on your telephone keypad. You will hear an automatic message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our speaker today, Serge Van Herck. Please go ahead.
Thank you, Nadia, for this introduction. Good afternoon, good morning to everybody, attending this conference call. Very happy to have you here today to further explain our results of the first half year of 2023. Going to slide number 2, I immediately leave the floor to Veerle, our CFO.
Yes, thank you, Serge. As usual, this presentation will contain some forward-looking statements. Forward-looking statements with respect to business, financial conditions, results of operations of our company, et cetera. These statements will be based on our current expectations and our beliefs as a management team, but they obviously also include some risks and some uncertainty. Those risks and uncertainty, they have not changed compared to previous communications. They're primarily linked to technology changes, market requirements, potential decline in demand, potential loss of market share, pricing pressure, et cetera. They are, they are named here in the slide. The risks occurring may lead to material changes in forward-looking statements, but EVS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect such events.
Thank you, Veerle, for reviewing with us this disclaimer. Let's have a look to the agenda of today. We have a business update, of course. We have a financial update, we'll talk about the outlook, we have our conclusions before we go to our questions and answers. Let me start here on slide 5 to discuss our corporate highlights for that H1 of 2023. We're quite happy with the progress we're making thanks to our PLAYForward strategy that we developed and started implementing in 2020. When we look to our market and customers, we see effectively record results for revenues. We see a strong order intake.
We see indeed also a strong profitability, and we're happy to say that we've secured, in the meantime, the big events for 2024. Those numbers are not included in our H1 order intake numbers, by the way. Looking at the technology side, we keep on further investing also in artificial intelligence for specific broadcast enhancements. We've launched last year also XtraMotion, and it's now available on, on site, on-prem, and in the cloud. We've been pushing hard also with our thought leadership about Balanced Computing, which is effectively demonstrating to our customers how they can best use on-prem equipment and cloud based workflows, and the right combination of both. Last but not least, we've been further investing in the right mix between hardware and software.
Because when we talk about reliability, and for many of our customers, reliability is still one of the most important topics, for their operation, having the right hardware and the right software, is very important. On the corporate side, we are happy to see that our ESG strategy is delivering clear results and is also getting quite some public recognition. We are continuing with some of our internal corporate transformation projects, and we're happy to see them on track. We see that our channel strategy is paying off, and we'll further discuss this in a further slide in this presentation. As indicated before, we've kept our team size quite stable compared to the end of June 2022.
You'll remember that we've been hiring quite heavily in H1 2022, and that, since that moment, we've been able to keep our team at the more or less the same level. Last but not least, we've also been working to further scale our support organization on a global level. That is for the corporate topics. Looking at shareholders, topics, we are planning an investor day that will be held in November 2023 in our headquarters. We continue to drive value through growth of revenue, profitability, and order book, and of course, we'll further explain today what that means for H1 of this year. We've been further working on the successful execution of the integration of Axon, and we're quite happy with the progress that we're making there with our media infrastructure solutions.
Last but not least, we're happy to say that we are delivering a strong EPS, supporting also a long-term dividend policy. Talking about financial highlights on the next slide, I leave the floor to Veerle.
A couple of highlights of the performance, financial performance of H1 2023. We definitely feel that this is a strong financial performance, that it's entirely underpinning our ambition for this year, and this is an ambition of profitable and sustainable growth that we want to reach in an uneven year. In a year where we have no big events, or very limited at least. What are the main results? In terms of revenue, we realized a number of EUR 87.4 million, which is a growth of 29.1%. In terms of EBIT, the growth is more important even.
It's a number of EUR 25 million and a growth of 58.6%, and our net profit ends at EUR 21.2 million, which is a growth of 36.8%. Our overall order book is increasing with 5% to EUR 132.7 million. As Serge already mentioned, our team members have just marginally increased, and actually by 13, 13 people.
Good. Thank you, Veerle, for giving us the overview of those financial highlights. Going into slide number 7, let me repeat also what our ambition is on the, on the longer term. We call that our BHAG, which stands for our Big Hairy Audacious Goal. It's definitely our ambition to further work on that profitable and sustainable growth path, to become that number 1 solution provider in the live video industry. That is definitely what we try to achieve, and we gave ourselves a few more years to get to that point. Going to the evolution we're going through, that's on slide number 8. I'll leave the floor to Benoît.
Thank you, Serge. Good morning. Good afternoon, everyone. Yes, when Serge joined, late 2019, he initiated this PLAYForward strategy, where we defined our BHAG, but also different dimensions of transformation. This slide describes the dimension of transformation and the way that we execute and the facts that prove that we are very well progressing on these different dimensions. First, we move from a product company to a solution company. We now extend the scope of the market to address different market tiers. We are now ready to sell in different business model, in OpEx, in CapEx. We see the SLA Revenue continuously increasing. We have an e-shop, which is launched with the first customer, so that we simplify the transactions for some kinds of new business models.
We now really deliver media solutions, which are full IP, optimized for the total cost of ownership of our customer. The days where we were only SDI are far behind us. In terms of transformation of the technology, we now deliver solutions, of course, on EVS hardware, but also on customer off-the-shelf hardware systems provided by third parties. As software, we also deliver systems on the cloud, and we really now address the Balanced Computing, which allows to distribute the workflows either on-premises, in the cloud, either as a pure software or on EVS hardware, and we maintain the mix for what is relevant for our customers.
We have leveraged, let's say, the COVID period, to accelerate our transformation to support live anywhere production and operation. We see that our solutions are now more and more deployed beyond sport, in news, in entertainment. In fact, we deliver complete platforms for modernization of the whole production cycles for our different customers. If we move to the next slide, in fact, you see there a list of main topics that are relevant for our customers. This list of topics is a result of the Big Broadcast Survey, which is done on a regular basis by Devoncroft. You see here the list of 2022. In the different colors, here you see where EVS is playing, for which domain, for which topics, EVS is bringing solutions to the customer.
When you see the ratio of blue, dark blue or light blue, you see that we actually work a lot and invest significantly in our R&D departments to really solve the problems of our customer, which is in line with the customer intimacy discipline that we defined as well as part of the PLAYForward. From a business perspective, we have seen along the years that the business is sometimes shifting in terms of media rights. In some years, the, it was the broadcasters, then we saw the telcos coming and buying media rights, and now we see the, the GAFA, in fact, buying media rights. What is for sure is that the media rights value is only increasing.
Our business at EVS, it is really correlated to the volume of premium live productions, and we are very happy to see that these GAFA customers, they invest, and they want to really increase even the value of these premium live events. We managed to capture a part of this value through the big tech contract in 2022, that we now execute already partially in 2023. If I move on the slide, on the next slide, we are very proud as well to announce that the Big Events 2024 will be powered by EVS. In fact, we strengthen our position to provide the solution, and not only the solution, but the related services to support the live production. It's also important to highlight the fact that we also extend the scope of our offering.
Before, we were really focused on content, and now we also provide media infrastructure equipment, which is the result of the acquisition of Axon that we executed in 2020. It is also to be highlighted that with remote production being more and more used for these big events, the complicity, the complexity is increased. In fact, we provide not only the solution but also the services. Globally, the fact that we have more remote production for these events is really positive in terms of reduction of the carbon footprint for the overall footprint of all these events. We are ready now to prepare for the 2024 events.
In terms of the different solutions on the next slide, in, in terms of LiveCeption, of course, EVS remains a reference, not only for the server, but for the whole workflows of premium production. We also enhanced the workflows with XtraMotion Edge. In 2021, 2022, we launched XtraMotion in the cloud. Now, this year at NAB, we launched XtraMotion that we can deploy on premise, which is totally consistent with our approach of Balanced Computing, where the customer can choose where he deploys actually, the, the logic, the software, and the systems. For that XtraMotion Edge, EVS received the NAB Best of Show award. We also continuously complement the use case and workflows that can be supported with the remote that we launched in 2020 with LSM-VIA.
In terms of MediaCeption, last or earlier this year, we launched the VIA Create live editing, which is a, a tool to edit during the production. We also deploy now our MediaCeption signature. It was first deployed in the U.S., and now it's, it is being deployed in Western Europe. It's it really creates traction for EVS solution, and that also explained the record high LAB order intake that we experienced for this first semester of this year. In terms of MediaHub, MediaHub has been deployed in the previous years for big events. We also launched it recently in SaaS, so that it can be used, the same technology and the same system can be used for medium-sized events.
Now, on a monthly basis, MediaHub is used in different parts of the world to distribute the content from the media rights owners to media rights holders. In terms of media infrastructure, the MediaInfra Strada continues to be really successful. Our customers are happy to have this smooth path in terms of IP adoption. We enhanced the Neuron ecosystem with a new application, so we support more and more application that can be virtualized on the same hardware, which is very good for energy saving, very good for carbon footprint. We also hear the word Cerebrum, which is our control syste m everywhere. It's not only restricted to Europe and APAC, now, everywhere, and in U.S., we hear Cerebrum being deployed by our different integrators.
Also in line with this, we continuously improve Cerebrum to add more features, to provide continuous support to our third-party channel partners that are deploying Cerebrum in different parts of the world. Now, I will pass the word back to Serge for the next slide.
Thank you, Benoît. Going forward here, let's have a word about those partnerships, huh? In our PLAYForward strategy, an important topic was also about further extending our sales capabilities by further expanding our indirect sales through partnerships with channel partners. That is what we've been doing over the last years, and we're quite happy to see the progress. We keep, of course, our direct sales approach with specific customers. To achieve or to be able to increase further our reach to certain type of customers, and we are further extending our partnerships with channel partners around the world.
We see quite some good progress on that side, especially also with our media infrastructure solutions that are very nicely fit for being sold through such channels. Products like Neuron or Cerebrum, more and more also being sold through those channels. There is more training being set up for those channels. There is more certification set up for those channels. We're quite happy to see the number of partners increasing, and even more importantly, also seeing the number of projects and the commercial successes increases through those partnerships. Talking about NAB, which took place in April, in Vegas, we were quite happy with this addition. We clearly see that our customers more and more understand and follow our strategy.
That goes into offering full solutions, and we are really entering an environment, we are providing an ecosystem, not just products, but a whole set of products and solutions which form together an ecosystem. That was very nicely demonstrated at NAB earlier this year. We had, of course, a large attendance of NALA clients, and we saw some customers coming from other regions of the world, but definitely most of the customers were from North American and Latin American region. We definitely also saw, and that's linked to my previous slide, an increased interest from those channel partners, also, US-based channel partners, who more and more see opportunities to work with us thanks to our extended product and solution portfolio.
And last but not least, as was mentioned also by Benoît before, the artificial intelligence-based XtraMotion also got quite some nice coverage during NAB. We received the Best of Show award, which definitely confirms that our Balanced Computing approach is definitely the right one to bring to the market. Slide number 15, I'm talking about components and inflation. That remains, of course, something that we follow from very short. This continues to be a challenge, but we feel that the challenges at this stage are under control. But especially when we talk about components and availability and pricing of components, we are still very much working hard to counter negative effects of that.
That's still something that keeps us busy with quite some colleagues to make sure that the supply chains don't get really disrupted. Fortunately, we had no disruption up to now. We have extended our delivery terms to 20 weeks last year. We kept that also this year, and that helped us indeed to deliver on time to our customers. Inflation is something that we follow up very closely around the world, and we try indeed also to reflect increases in products or in salaries into our products, and we've seen a positive effect of that price increase in our revenue and our profitability.
On slide number 16, talking about ESG, we're quite happy with the progress that we're making on ESG, and of course, also the external recognition that we have been receiving over the past months. One of the important recognitions was from Sustainalytics, where we are now ranking or where we have a risk rating of 13.5, which represents a low risk. We're quite happy with that further improvement of our risk profile. This means that in the global universe, that we are in the top 10, even in the top 7% of Sustainalytics. That shows effectively that we're going in the right direction when we talk about our ESG objectives and efforts.
Slide 17, I'm happy to point out again now that we have received that certificate for being a Top Employer in Belgium. That really shows that we are doing a very good job when it comes to making sure that we provide a very good environment for our team members to work in. That also is linked to our ESG objectives, and that is also a very strong signal, of course, to the market and to potential candidates that we are interviewing to join the company. We're quite happy with that certification, and that shows the strength that we have, have as a brand, and of course, also the quality of our HR team. Good.
Going forward here, and going forward in the agenda, that brings us to the financial update, and here I'll leave the floor again to Veerle.
Yes. A little bit more in detail, our performance of the first half, and in slide 19, demonstrates actually our top-line performance. It's definitely a strong top-line performance that is demonstrating our growth path. The order intake is strong at EUR 84 million during first half. It is slightly below actually the 2022 level, but it keeps up with the strong revenue performance that we have seen for the first semester. For us, that was a major objective to achieve, is to make sure that we keep up with that high growth. Next to that is the revenue performance. As mentioned, it's a revenue of EUR 87.4 million, which is growing EUR 19.7 million, so it's 29% growth. Again, this is without any Big Event Rental in 2023.
Once you neutralize actually for big events, the growth is actually a 41%. It's a very impressive growth compared to last year, which actually was also already a very strong semester. That growth is actually primarily driven by a very strong backorder position, so we started the year with a strong backorder. What's important for us is actually that, that growth is strong at all, in all regions. There's not one region actually underperforming. We still see some slowdown in China. It's not really picking up, but we can definitely. There are other countries in the APAC region are covering up for that. We have all our regions demonstrating an important growth, and this is obviously a very balanced performance from our point of view.
On top of that, we also have a strong in-year conversion of deals that we signed in 2023, so that obviously also contributes to the success of this year. If we look at our total order book, you see that it grew up to EUR 132.9 million, which is a growth of 46.2%. This is obviously also including the big tech contracts that we signed in August 2022, so it explains a huge part of that of that increase. But it, what is definitely also comforting is also that the long-term order book is also increasing. That long-term order book is actually increasing with EUR 5.8 million compared to the beginning of this year, and so, it is growing up to a level of EUR 61.7 million.
The secured revenue, based on this order book, for 2023, is at EUR 158.7 million, and this is definitely confirming our growth ambition for the year 2023. Some, an objective that we set for ourselves in the beginning of this year. If we look a little bit in more detail at the revenue performance, again, I think I already mentioned it, it was a very sound spread by region, and you see this on the, on the right-hand side of the graph. That's actually every region contributing to that result.
On the left-hand side of the graph, you see the evolution by revenue by pillar, and we have no Big Event Rental revenue so far in first half 2023, and will be extremely limited anyhow for the full year as well, because there are no major big events this year. You see actually both the LAB business as the LSP business are still growing quite impressively. Both market pillars are contributing to the strong revenue performance of first half 2023. If we then look at slide 21, we move to the profitability. That profitability obviously is boosted by that strong revenue performance, but it's actually also benefiting from a very solid margin performance.
If we look at our gross margin, we actually realize a gross margin performance of 70.1%. It's a 2.4 points increase compared to last year. This is a very strong performance, and it's a clear demonstration that our margin optimization plan that we have by solution, that this is paying off. I think our pricing strategy is designed actually to make sure that every solution contributes positively to our profitability, and that strategy is actually entirely being realized. We see the demonstration in this gross margin performance. We're very happy to see this. If we look at our operating expenses, our operating expenses move up to EUR 36.3 million. It's a 20.6% increase.
It's primarily explained by additional costs linked to team members. Even though we kept the number of resources flat compared to end of June 2022, or more or less flat, if we look at the average of H1 2023 versus the average of H1 2022, we had an increase of EUR 3,650, and this is obviously reflecting to, in the operating expenses. Next to team member costs, we also have costs related to transformation projects. You might have heard references to those projects earlier on in the presentation. It's projects like eShop, like further implementation of our ERP and optimization of our ERP system, et cetera. Obviously, we still invest in that. There's definitely also an increase in energy prices and an increase in travel spend that are being noted.
We're happy to say that actually, our operating expenses are evolving exactly in line with what we designed for beginning of the year. I think it demonstrates strong control over our expenses, in the first half of the year. If you look at our EBIT performance, definitely strong EBIT performance in first half, obviously driven by the strong revenue performance, the strong margin performance, and then the overall relative control over our operating expenses. An EBIT was realized of EUR 25 million, which was growing 58.6%. If we look at our balance sheet and, and the financial health of our company, definitely, it continues to be strong.
As Serge already mentioned, we have a fully diluted earnings per share of EUR 1.52 in H1 2023, it's a growth of 32%. Again, a combination of strong revenue performance, strong gross margin performance, and the balanced control over OpEx. Our net cash position, it is decreasing compared to H1 2022, it is increasing compared to December 2022. That is higher cash. We need higher cash, actually, for working capital. With the strong revenue increase, there's obviously also an increase in trade receivables. Obviously, you don't have to forget that compared to December, we also paid the final dividend worth EUR 14.8 million in May 2023. Just zooming in on the receivables then, you see the graph on the right-hand side entirely.
The trade receivables actually evolve in line with the overall sales. The, the white graph is the evolution of sales. The gray bars are actually the evolution of our receivables, and you see that it's actually moving in the same direction. We're also happy to confirm that our DSO returned to normalized levels, and especially happy to see that after we had a one-off impact at the end of 2022, linked to a delayed invoicing, of the ERP go live. We're happy to confirm as well that 54% of our receivables are not even due, so I think this is definitely a demonstration that our receivables are healthy. As usual, we also pause two seconds on intangible assets.
We're happy to confirm that the investments that we're doing are exactly in line with our budget of spend, and that they still respect the timeline that we set forward initially in 2022. For recollection, we started in 2022 the internal development of two important projects. Those two projects are actually being capitalized under the norm of IAS 38. The spend in H1 2023 has been EUR 2.9 million. It is just slightly below what we budgeted for H1, but it's very much in line with what we foresee for the full year.
The developments are actually being followed on a regular basis internally as to make sure that the progress and the outcome of the projects are in line with the business plans and the initial outcomes set forward. We still confirm that there are announcements foreseen at the IBC, so this is mid-September, with regard to both projects. So exactly, again, in line with the timeline set forward initially.
Thank you, Veerle, for that overview. Let's go further here with the next chapter, which is looking at the outlook. All that information that you've seen, all those very strong results for H1, are leading us to change or to upgrade some of our guidance. Again, I'll leave the floor to Veerle to walk us through through slides 25 and 26.
Yeah. Thank you, Serge. As mentioned, we have a secured revenue at the end of June 2023 for the full year of EUR 158.7 million. Definitely this is already demonstrating that we will grow in 2023. For your reference, last year, we had a revenue performance of EUR 148 million, so it's already EUR 10 million above, despite the fact that we don't have big events. Based on that secured revenue, the revenue guidance for the full year is being upgraded. We had a guidance set forward of EUR 150 million-EUR 160 million. We now move that guidance up from EUR 160 million-EUR 170 million. It's an uptick of EUR 10 million that we announce.
Upgrade actually assumes that we just have a normal final production cycle of the year, obviously not being impacted by any shortages in component or any major changes linked to pricing of components. The majority, anyhow, of the deals with the 20-week delivery terms that we have, are expected to contribute to 2024 already. We expect limited deals being signed in the second semester that will still contribute to the performance in 2023. Obviously, there are still deals that will follow through, and hence, the range of EUR 160 million-EUR 170 million. In terms of gross margin, you saw gross margin performance of 17.1% in H1. We expect that margin to be marginally negatively impacted in H2.
Basically, as a consequence of the projected revenue versus the existing costs, taking into account the mix of our solutions, we expect that gross margin to marginally decrease in second half. Obviously, if we upgrade our revenue guidance, also taking into account the strong profit performance that we've seen for first half, we also upgrade our EBIT guidance. The EBIT guidance, with a revenue range of EUR 150 million-EUR 160 million, was put to EUR 27.5 million-EUR 32.5 million. It was a spread of EUR 5 million of EBIT. With the new range of revenue, EUR 160 million-EUR 170 million, we have a spread of EUR 6 million.
The spread is now 32.5, up till 38.5, I believe that those numbers definitely demonstrate the sustainable and profitable growth ambition that we have the company for 2023. Coming back to our dividend proposal, we issued a dividend proposal in 2022 for the next three years, 2022, 2023, 2024. That dividend proposal is foreseeing a dividend of EUR 1.1 per share in 2023. We will normally distribute an interim dividend of EUR 0.55 per share in November of this year, the remaining EUR 0.55 per share will be scheduled for payment in May 2024. Obviously, subject to market conditions subject to the approval of the ordinary general meeting of shareholders.
Our current performance definitely confirms that we will honor that dividend proposal at this point in time.
Serge, over to you for conclusions.
Thank you, Veerle. Let's indeed go to those conclusions. I'm on slide 28. 6 key learnings, which are consistent with what we've seen over the last years. The first one is the industry keeps on consolidating, and we definitely intend to keep playing a role in that also in the future. We see that the big tech providers are on the place. We've seen last year that we signed a major deal which was triggered by one of those big tech players, and that was called our Big Tech Contract 22. Definitely, that is also helping us to generate more revenues with big tech companies, but also for the companies who are working for them.
Our infrastructure, our media infrastructure is definitely the cornerstone for big changes for certain of our customers. We definitely see some important projects on the horizon that will help us further fuel our growth in the future as well. Talking about business models, as Benoît said before, we see that business models are shifting, we're just making sure that we provide choices to our customers. Within the strategy of customer intimacy, we make sure that we are not forcing our customers in one or into another direction, but we just give them the options so to choose from, and so that they indeed can go for the option that best fits their needs. Number five is cloud.
We see cloud, between brackets, just as one of the enablers, our, Balanced Computing approach, and where we are making sure that we are providing clever solutions with partially on-prem and partially cloud, be it private or public cloud solutions, is one of our cornerstones, of our Balanced Computing approach, and that is more and more appreciated by our customers. Last but not least here, we all think, that EVS is definitely on a good track, to further realize, that the profitable growth ambition that we have for, for the next 10 years. Going to slide 29, talking about the next focus on key activities for 23.
We keep on saying that we, we focus on delivering those large multi-year modernization projects that we've been winning and that we keep on winning. We will help further our customers who are still using previous versions of the XT replay service, typically XT3, to transition before the end of support, which has been announced by the end of the year. We'll further leverage the new solutions to continue to increase our order book. We continue to expand our solutions offering, be it organically and through acquisitions or strategic partnerships. We, we were happy to confirm that we've been able to sign up the important contracts for those major sport events in 2024.
Last but not least, we'll keep on focusing on our cost control, based on a growth system and what we call internally, frugality. Going to slide number 30, conclusions. Our objective to reach a sustainable and profitable growth for 2023 definitely becomes reality here. Our EVS PLAYForward strategy is definitely generating the expected sustainable and profitable growth. We see for the rest of the year, limited further investments in our cost structure. We'll focus in 2023 to make sure that we keep those costs under control, but we see a slight increase compared to H1.
Our revenue guidance for this year, as Veerle explained, has been now increased to EUR 160 million-EUR 170 million, versus the EUR 150 million-EUR 160 million that we announced earlier this year. We're happy to see that even in an even year, we're able to realize growth compared to the year before. We're further increasing our EBIT guidance, as Veerle also pointed out, and so now we're announcing a guidance between EUR 32.5 million and EUR 38.5 million for this fiscal year. We indeed confirmed our dividend policy for EUR 1.1 over the year 2023, which still needs, of course, to be confirmed by our shareholders.
To conclude, this presentation before going to the questions and answers part, I'd like to thank all of my colleagues for this quite impressive result that we're putting here on the table. I'd also to thank of all, all our customers around the world. It's clear that they show strong confidence in what we do, so we're very happy with their support. Very happy also with the support of our channel partners, we definitely feel that we are making a very good traction with those channel partners.
Last but not least, I'd like to also thank all of our EVS operators, who are using day in, day out, our technologies, to create those great emotions, and just to few, to name a few, those which are happening now in Australia and New Zealand, of course. That ends the presentation for today, and I'll be happy to answer with Benoit and Veerle, any questions you might have at this point.
Thank you, dear participants. As a reminder, if you wish to ask a question, please press star one one on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by, we will compile the Q&A roster. This will take a few moments. Now we're going to take our first question from Guy Sips from KBC Securities. Your line is open, please ask your question.
Yes, thank you. First of all, congratulations with a very good result. I have 4 questions from my side, if I may. First is, can you elaborate a little bit on the June contract that was mentioned in the press release, and you didn't elaborate on this during this call, as this is the contract that's not included in the guidance? The second question is on the 2024 big event rentals that you now also announced, that are now in your hands. Is it fair to assume that you will get a bigger portion of the pie compared to 4 years ago, as now also Axon is included? The third question is related to the 20-week delivery time.
if, if is it, can you give us some clue at what the difference in price is when on a client order, a speed order, so if, if you want an EVS machine delivered in, yeah, in the next 12-15 weeks, what is the price difference compared to the normal 20-week delivery time? The last question is, you have to manage expectation on the IAS 38 projects. These two projects, Veerle mentioned that, yeah, this will be announced in December, what these contracts are. During the capital market day of November, we will not get any clue on this project. Is that fair to assume? Thank you.
Okay. Yeah, thank you for those questions. I'm not sure I fully understood your first question about the June contract, so I'm looking here to my colleagues if they have-
It's the contract that we referred to in our press release, that we signed end of June for big events 2024 and beyond. That's the contract we're referring to. The fact that it's not included, it is included in the guidance. We don't give a guidance for 2024 at this point in time. It's not included into the numbers of order intake of first semester. Why is that? It is a frame agreement that we signed, and that frame, and, and will be recognized in order intake as soon as the entire bill of material or the needs of each of the events will be entirely known. It will be realizing in, we will see an order intake in second half, the events of 2024, realized in, in value on order intake.
Okay, that was the first question. The second question was about BER contract for next year, and the fact that we're extending our scope with media infrastructure. The answer is indeed that we are increasing the coverage of our solutions to help producing those live events. Will that automatically lead in higher revenues than years before? I would not assume that. It also depends on the geographical setup and the remote productions that are being applied. All in all, we'll see for sure similar revenue numbers as you have seen before. This just means that our presence will even be bigger in those big events than what they have been up to now.
That's the situation for the big event trend for 2024. Going to your third question, which was about 20 weeks delivery time, and what is the difference in price for speed orders? Well, there is indeed a possibility for speed orders, but that's depending on availability of equipment and stock, and that is very limited. There is not, not something like there is no guarantee that speed orders can be delivered. It really depends on the if at that moment in time there is a certain stock. With the current situation, I can indeed indicate that stocks are very, very limited.
If in certain cases there would be stock and a customer is requesting a speed order, then there is indeed a commercial mechanism in place that would allow him to access that stock with a decreased discount. That is the way it is working today. I'm not going to, to explain here also to, to our colleagues in our market what discount we give, but that is the way it works. We reduce a discount when we are talking about speed orders. Again, this is very limited. As Veerle pointed out, most of the orders that we'll get from this moment onwards for the rest of the year, will be delivered in 2024.
The last question about the IAS 38 projects, the announcement will be done at IBC, which is in a few weeks in September. We'll be able to talk about them during the investor days in November.
Okay. Yeah, I did understand December, so September is perfect. Okay. Thank you.
Thank you. Now we're going to take our next question. Just give us a moment. The next question comes from line of Alexander Craeymeersch , from Kepler Cheuvreux. Your line is open, please ask your question.
Yes, hello. Congratulations on the very nice set of results. At the year-end, you actually mentioned that you had a new ERP system which resulted in a delay of invoicing and resulted also in a large buildup of receivables. I just wondered why it didn't completely recover by mid-year now. Just if you refer to the midpoint of last year, receivables were up 36% and sales were right now up to 29%. Just wondering why we haven't seen a complete wind back of the receivable front and if something is still lying there. You mentioned also the lead times remain 20 weeks. Would you, would you care to elaborate when you see some improvement on this front?
Then, a final question: you, for the second half, you expect a marginally decrease in the gross margin. Would you care to maybe specify what you mean exactly with marginally? Is that less than 1 percentage point, or is that 2 percentage points, et cetera? Thank you for that.
Okay, Alexander, thank you for those questions. The first question is about ERP, delayed invoicing and recovery of of those invoices, and I'll, I'll leave the floor to Veerle.
I think the ERP implementation happened in October of last year, October 2022. We went live knowing that we would not be able to issue invoices for some time. That some time in the end turned out to be around 6 weeks. In the busiest quarter of the year, we were not able to issue invoices in the first 6 weeks of the quarter, which means that a lot of the invoices were pushed actually to the last weeks of the year, and therefore were not even collectible by the end of the year. That is what happened last year. We did recover a huge amount of that, of those, of those receivables.
We see it in our receivables, remaining very current, so as I mentioned, 51% is, is actually not due. For us, we believe that is a healthy situation. Do we see some customers that are requested extend- requesting extended payment terms? Yes, we do see some customers for very specific reasons. We see customers, for instance, struggling cash-wise, because of the writers strike in, in, in, in, let's say, in Hollywood. It might be funny, but yeah, that is indeed happening. We're obviously helping those customers in providing that additional delay. Yeah, one of our major customers, we're also helping with them, for them, to make sure that we, we accept extended payment terms, but it's all done in collaboration with them.
I think overall, we believe our receivables are definitely under control with, yes, a couple of extensions granted, but those are for very good reasons and generally for very good customers.
Yep. Thank you, Veerle. I'll take the second question now, which is about the delivery times of 20 weeks, and will we reduce, and when will we reduce? Well, for the moment, we don't expect to reduce that, those 20 weeks, and you have to know that certain components have delivery times which are more than double than those 20 weeks. That is a reality that we live in, and we don't feel that we'll be able over the next months, probably over the next year, to reduce that 20-week delivery time. It also helps us to further streamline the production and make sure that we can deliver all our customers within that delivery time of 20 weeks.
To answer your question, we don't expect, for sure not this year, but probably also not even next year, to reduce those 20 weeks. That is for also the new standard, and we see that our customers adapted well to those 20 weeks delivery times. Going to your third and last question about the gross margin evolution for H2, I'll ask Veerle to comment again.
Yeah. Yeah, for the full year, we expect our gross margin to be slightly lower, that's 70%. We talk about 2-2.5 points. Why is that? It's one linked to the revenue that is projected for H2. In this case, it will be lower than the revenue that is booked in H1, and therefore you already have a less dilutive effect of your revenue. Second, it is linked to the mix of our solutions. Yeah, we believe that the 70% on a full year basis will probably 2-2.5 points lower.
Okay, thank you. Just to be clear, the... It was two percentage points was your point of reference?
2-2.5, yeah.
Okay, thank you very much. Again, the conversation is nice results.
Thank you, Alexander.
Thank you.
Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad. Now we're going to take our next question. The question comes from line of David Vagman from ING Belgium. Your line is open. Please ask your question.
Yes, hello, good afternoon, everyone. First question is on the LAB growth. We saw a very good LAB growth, and you're also saying that in the order book that, that the, the, let's say, the proportion of, of LAB is even higher, so it's progressing even further. Can you zoom on, on this growth? I mean, the type of, of product and solution, which is, you know, responsible for, for this growth. Within LAB, is it also related to servers or, you know, tilting a little towards server, or was it other type of, of product? That's my first question. Second question, you made quite an interesting comment on the in the press release on the XT-VIA replacement cycle.
You say, for instance, that one XT-VIA can replace two XT3, and not everyone will be upgrading. Is it correct that you want to inject a kind of dose of caution here on the XT replacement cycle? Could you update us on the progress of this replacement cycle? I think you've previously said that you were not even halfway through the replacement cycle of the install base. Yeah, where are we? Where could we go still? Last question on the OpEx growth. I understand that there will be some limited investment in H2. Can you quantify this a little bit so that there are still...
I, I understand that energy, or I would think that energy should go down, should be more helpful. Transformation plan, maybe the spending on ESG could go down. Where are we, let's say, for the full year 2023 in terms of OpEx growth, guidance? Thank you.
David, thank you for those questions. Let's start with the first question about, let's focus on the LAB, Live business . I'll leave the floor to Benoît, to comment somewhat on that.
Good afternoon, David. Yes, indeed, we are experiencing a very significant LAB growth. In the LAB, in fact, we mainly sell MediaCeption solution and MediaInfra solution. Is it only due to servers? No. We have shifted from selling products to selling solution. In the MediaCeption solution, it's not only an XT server, it's also more and more software servers as well that we deploy, and sometimes on, on the COTS, meaning on the hardware like Dell, HP and other providers. It's also MediaInfra, where in fact we have the modernization project, where we have the new broadcast centers that are moving to IP. There, in fact, our customer appreciates really our MediaInfra Strada solution, which enables them to have a smooth evolution.
That is based as well on the, on the new Neuron platform, which is really growing very well, in terms of the scope of the application that can be hosted on that. These are the main factors that make that we are growing in this segment, in this market pillar.
Okay, thank you.
The impact, I think- Yeah, no, sorry. Go ahead.
No, David, please continue.
Yeah, I was, I was going to say, any conclusion we should draw from, from this on the margin, so that it's not only XT server, but it is more broad-based?
I, I don't see any, any significant impact, because sometimes it's, it's also new Neuron or from media infrastructure, so it can affect in terms of product mix, and sometimes, it's a pure software where...
Okay
the margin is also different.
Okay.
It really depends on the solution which is selected by the customer, and also, it also, it depends on the way that the customer wants to deploy the EVS solution. It doesn't necessarily depend on us.
Okay, thanks.
The second question was about XT-VIA and replacement cycle. Where are we and what's the progress or the future about that? It's clear that thanks to the reliability of our equipment, we still have quite some customers using older generation of equipment, and some will stay like that. That is the beauty, the strength of our technology, that it's really reliable. As long as the customer doesn't need new capabilities, high of better formats, or needs to move to IP, or has other technical reasons, he can just stay on the previous versions.
The XT3 support will end by the end of this year, that's, of course, an additional reason for customers to take a decision, if they want to take a risk to run on equipment that will not be supported anymore, or if they move forward. We expect that some customers will just take the risk and continue working with their previous equipment. Definitely, this year we saw a good evolution, quite some customers took the decision to move to the newer generation. We're getting closer to halfway for sure.
But again, we know that, we will never replace the whole installed base, but, we try to make sure that, we continuously, increase, the capabilities of our XT-VIA, solution, so that, there are, ever more new reasons for customers, to upgrade to that, newer XT-VIA, platform. Topic was about OpEx growth, and there, again, I'll, I'll leave the floor to Veerle.
Yeah. I think, traditionally, over the past years, we book around 56% of our total OpEx in second half. We don't believe that that will be the case this year, given the focus that we have on our cost control. We believe that we have a much more steady pace between the months and first half compared to second half. When we say marginally increase, yeah, you have to take into account that we had an inflation as of first of July. So for our Belgian team members, there's been an inflation, which has been around 6%, so that will definitely count. Overall, I think that the balance this year will be 47-53 or 48-52, something like that.
It's, it's a much more balanced approach. Energy prices, I heard you referring to energy prices. Unfortunately, we will not have a reduction in 2023, as we fixed actually our costs for 2023 for the full year. We will see reductions coming out from 2024, but that will not benefit our 2023 results.
Thank you, Veerle.
Thanks. Thank you very much, everyone. Just the clarification, so you, you're saying the, the balance in OpEx will be more between the two halves of the year will be more like 48%-52%?
Something like that, yeah.
Okay.
Yeah.
Okay. Thanks very much, everyone.
Thank you. The speakers are enough for the questions. I would now like to hand the conference over to your speaker, Serge Van Herck, for any closing remarks.
Yes, thank you, Nadia. As you see, we're quite happy with the progress we're making here, right? It's definitely in line with our expectations and with our strategy. Quite happy to see that that PLAYForward strategy is delivering on the expected results and that we are on our way to achieve our ambition to over the years to come, to become that number one. Quite happy with the support and the feedback we get from our customers, from our channel partners and our EVS operators. Okay, we, we are working further on making sure that we can continue delivering on our promises to further deliver profitable growth and sustainable growth over the years to come.
Again, we're quite happy that we can show such results in an uneven year, which we feel is quite a big achievement for EVS. Thank you again for attending. Thank you for, and some of you also being shareholder. I hope that indeed we show or we live up to your expectations. I look forward to seeing you during our Investor Day in November, in our HQ. Thank you again for attending.
That does conclude our conference for today. Thank you for participating. You may now all disconnect. Have a nice-