Good morning. Welcome to our half year results. It will be an interesting session for sure today. We have quite some things to talk about. Before we start, I'll ask Veerle to read that disclaimer that you're used to hear from Veerle De Wit.
Yes, good morning to all. As usual, this presentation contains some forward-looking statements, for instance, around microeconomics, some business information, or some surrounding financial conditions. As a management team, we assist all this information when we provide our forward-looking statements. Those forward-looking statements obviously include some risks and some uncertainties. Risks and uncertainties, for instance, in relation to technology or market situation or any macroeconomic events. Such events could have an adverse effect towards our forward-looking statements, and EVS does not undertake any obligation to publicly release a revision of our forward-looking statements should such an event occur.
Thank you, Veerle. What will we be thinking about today? We have a packed agenda today. Of course, a business update. We'll talk also about the acquisition that we have announced also yesterday evening. We have a market update, a financial update, of course, and outlook conclusions, and we'll take some time to answer your questions and answers. Let me start with that business update. Before I dive into that slide, there are three things I would like to make sure that you remember of the session of today. The first topic is, or the first thing to remember, is that title that we put forward here, and that is a strong order intake and strategic wins confirm our full year guidance despite H1 revenue delays. That's an important first topic I want to make sure you remember today.
The second point I want to make sure you take from today is that on July 8th, we achieved indeed that important milestone of EUR 100 million revenue. That also brings us to a simulated EBIT of about EUR 21.8 million. That's indeed another important topic that I want you to remember today. Last but not least, of course, that third point of today is about the acquisition of U.S.-based Telemetrics , which further complements our solution portfolio and which will give us access to a higher total addressable market. Those are the three important topics. Let me end with that last topic about Telemetrics that the numbers that they will produce in Q4 are not yet in our revenue and EBIT provisions for the rest of this year. What are we talking about here? Market and customers. We see indeed a new record of order book.
That definitely shows that our play forward strategy is delivering those expected results. We are achieving EUR 175 million, a new record for EVS. We see a strong H1 order intake. We see on the revenue side indeed that we achieved the EUR 100 million mark on July 8th, but at the end of June, we were somewhere at EUR 91 million. I'll let Veerle further comment on that, of course, in her detailed overview. We see that North America, Latin America region, and the live audience business market are driving our growth, both in order intake and in revenue, again in line with our play forward strategy. We're also happy to see that our EVS technology will be at the core of the 2026 major sport events, and especially also including VMAP and those summer events.
When we talk about corporate topics, it's clear that our focus on North America is paying off. We further strengthened the team, and we have opened a new center in Denver. We've been working hard to counter certain U.S. tariffs that have been implemented in the market a few months ago. There is no surprise to that, but it did put some pressure on the way we were operating and the need for us to adapt. Veerle will also give some more explanation about that later on. We're happy to say that we do another acquisition, this time of Telemetrics , a U.S.-based company. Benoit, who is here present today, will also give more explanation of why we do that, what is the rationale, and the intent that we have by acquiring this U.S.-based company.
Last but not least, on those corporate topics, we're happy to see that on the ESG dimension, we're further gaining speed, and that this is also being confirmed by external evaluations that we get from companies like EcoVadis, which has reaffirmed the fact that we have a silver medal. When we look to our technologies, we're happy to continuously work on new generative AI solutions that we integrate in our live section, but also in some other of our products. We have worked hard on Move Up and Move I/O, which have been developed in Porto and which have been launched at NAB in Vegas earlier this year. We are also quite happy with the announcement that we made with the University of Liège, where we are sponsoring a chair for AI in sports.
That will definitely help us to further focus on the developments of our AI capabilities, in this case, in sport environments. The last topic here on this slide is about shareholders. What is important to remember is indeed that we are confirming that full year guidance, both on revenue and on EBIT, despite the economical uncertainties that we are facing, like many other companies at this moment in time. Last but not least, we will have soon IBC in Amsterdam in September, where we will also organize a shareholder event and where you will be able to see our latest technologies that we launch on the market. Next slide, Veerle, that is one for you.
Yes, so the financial highlights for the first semester of 2025, as Serge mentioned, are marked by a very strong order intake and some strategic wins. If you look at our order book, first of all, we closed the half year with an order book of EUR 174.8 million, which is actually an increase of 23.4%. This is a testimony of the strong order intake we'd had in the first half. Once normalized for big event rental, the growth is still 14% and is definitely securing a longer-term growth for our company. On the other side, our revenue was disappointing. We had some temporary delays in revenue recognition linked to new business models that are being introduced, for instance, to cope with the tariffs in the U.S. Our revenue was at EUR 91.8 million, which is a decline year- over- year of 6.4%.
Once normalized for big event rental, it is a decline of 1.9%. We will definitely go further into details when we go into the financial update. That revenue delay also had its impact on the EBIT. We have an EBIT performance at EUR 14.8 million, which is a decline of 38.1%. Again, the impact of the revenue delay is important there. EBIT would have been at EUR 21.8 million if we would have normalized and reached the EUR 100 million revenue mark that we envisioned. Our net profit is also impacted by this revenue delay and ends at EUR 13.3 million, which is a 39.2% decline year- over- year. From a team member's perspective, we ended the first half with 728 FTEs, growing actually 86 FTE year- over- year, of which 48 FTEs are linked to Porto.
The remainder of the FTEs are primarily in sales, pre-sales, and support resources to sustain our double down North America plan.
Okay, thank you, Veerle. That brings us to the next important topic of today, and one of those elements definitely that you have to take away from this presentation today, that's the M&A transaction, the acquisition of Telemetrics that we announced yesterday evening, which is clearly in line with the play forward strategy that we've been implementing since a few years. Remember, we've done acquisitions in 2020 with Axon, last year also with MOG Technologies in Portugal. We did also a capital increase of another Belgian company, and we took a minority interest in TinkerList. Now we are happy to announce a new transaction, a new acquisition in North America. I'll leave the floor to Benoit to explain what we are doing here.
Thank you, Serge. Good morning or good afternoon. In fact, EVS invests in media production robotics. What is media production robotics? As you can see on the left part of the slide, these are mechanical parts that are installed within studios, TV studios most of the time. These mechanical parts move automatically. They embed or they support a camera, in fact. Media production robotics does not include the market of camera, but only the mechanical parts that move the camera within the studio. All these systems are driven by some controllers. The controllers can be hardware controllers, typically with two joysticks to control the positioning of the robot, in fact, and by software controllers. We have different kinds of robots. It can be just a pan tilt to move the camera in a different direction while the camera is fixed.
It can be also put on rails as teleglide, and the rails can be on the ground or on the roof. It can be moving in two dimensions on the ground as omniglide, or it can move up and down with a telemeter. The telescope, it's a jib that can create some very nice movements, typically for entertainment shows. This is what is media production robotics. This is located more and more in the TV studios because it allows more creativity, and it also supports more automation and more consistency. Why does EVS invest in media production robotics? Because it's part of the live production ecosystem, in fact. It's completely in line with what we want to do. We want to make the lives of the production team easier.
We want to integrate the different components of the overall studio and production environment so that it's easy to operate, it's easy to maintain, and globally, it can increase the quality of the production with an affordable cost. It's part of the live production ecosystem. Second, we have developed at EVS a real true AI expertise. We see that more and more in this domain, AI is playing a role to really assist the operators to create better live storytelling. With robotics, it's all about return on emotion because you can capture shots that were previously out of reach. You can place cameras where a human cannot be located. That means that we really will develop better images, which is completely in line with the concept of return on emotion that EVS is developing. From a financial perspective, this market is evaluated to $125 million.
EVS will de facto increase its total addressable market of this amount. That's why we invest in media production robotics. Now, how do we do it? We do it thanks to the acquisition of Telemetrics . We are very proud to welcome the team members of Telemetrics, a company based in the U.S., a company created in 1973 with a very huge and significant technology background. They have very nice products that are adopted by premium customers, and they are focused on quality. They are focused on safety because you have all these robots that are moving, and the robots are interacting on the same territory as humans. We have to avoid collisions and so on. They are really focused on that. They have the same values as EVS.
In fact, today, the company is headed by Michael Cuomo, who is the grandchild of the founder who created the company in 1973. Today, there are a bit more than 30 employees working in Allendale, New Jersey. The company is well known in the TV domain because they really revolutionized the television camera control. They innovated a lot in robotics to have the smoothest movement that you can imagine in robotics. It's not that easy to make that. If you just put simple wheels, you will have very stuttered movements. It's important to have very smooth movements. Telemetrics has developed all the mechanical expertise and products to bring this value to the market. They serve clients as large network studios, but not only, they also serve technology conglomerates and different markets as legislative, government, education.
They have a good track record and proven track record for creating outstanding products and solutions. Globally, they focus on reliability and safety, as I mentioned before. They generated in 2024 an annual revenue of $12 million with a positive EBITDA around 11%. We will close the transaction on the 1st of October. That means that Telemetrics will contribute to EVS results for the fourth quarter of this year. To be mentioned that this additional revenue and EBIT is not embedded in the guidance. The acquisition is done with an earnout mechanic, and that can go for the maximum amount of $13 million, including the earnout. Which kind of levers or strategic levers or strategic intent we want to activate? First, we consider that this marvelous technology is today not necessarily well spread in the world. The majority of the sales is happening in the U.S.
Typically, we think that there is an opportunity to spread more of this technology and to deploy it more in Europe and APAC. The fact that EVS has a worldwide presence will help globally this technology to be deployed in other parts of the world, first in terms of sales and second as well in terms of support because EVS has a wide support network. The second strategic intent is the fact that we want to shift the value towards software, thanks to the integration of EVS AI capabilities. Of course, the product is a mechanical product. It's a hardware. More and more, the value will be in the way that this hardware is driven. AI can really change the game here. Third, in fact, I started to speak about the live production ecosystem that we are developing.
We think that when we combine this technology with other solutions that we have, live section, media section, media infrastructure, and Cerebrum flexible control room that will be launched at IBC, we think that when we combine all of this, we can really improve the overall ecosystem, the overall experience for the operator, and the easiness of producing media in general. Last but not least, as you have noticed, this company is based in the U.S. That means that we could leverage the capacity of product assembly in the U.S. for other products of the other solution, live section, media section, media infrastructure, based on the evolutions of U.S. tariffs. If we have a look at the market, as I mentioned, the market is evaluated to $125 million. Telemetrics today represents 10% of market share of this media production robotics market.
This market is growing, in fact, and we plan to take more market share in the coming years. You can see here some different kinds of customers that Telemetrics today has, that goes from broadcasters, but also beyond broadcast with some brands or corporate studios or education, government, and so on. If we map it on the EVS strategy, where does Telemetrics add a contribution? In fact, we think that definitely Telemetrics supports the live production ecosystem. I mentioned that several times, the word ecosystem. It's multi-tier as well because we have different levels of robotics. We can equip small studios, but also premium studios. It certainly will help us to grow in the broadcast center. It certainly will help us to grow in terms of software because of the AI and the controller of all of these mechanical parts.
It will help us to be more relevant in entertainment, where robotics plays an important role, and for sure in news. That's where we think that Telemetrics as a media production robotics company, can really help us to achieve our goal and to achieve our transformation.
Thank you, Benoit, for that overview. As you can see, we are quite happy with this acquisition. By the end of the year, we'll have about 100 colleagues in North America. Adding those 30 of the team of Telemetrics on top of the close to 70 that we have is further growing our presence in North America. As you know, we put a lot of focus on North America as we believe this is an important revenue growth engine today, but also for the future. Talking about market update, let me dive into that market update. You know that we have an ambition to continuously grow over those next years. We have a target in 2030 to be that number one solution provider in the live video industry. This acquisition definitely helps us to go into that direction.
Remember that this means that we want to have something like EUR 350 million by that moment in time. We also know we'll have to do some more acquisitions to add to our growing revenue to be able to achieve that. We feel that we are on the right track to get there. When we look to our different products, our main product lines, live section, media section, media infra, what can we say at this moment in time? When we look at live section, those live production replays and highlight solutions that elevate the fan experience. Some important elements to note, we have just released our Zoom capability on live section. That has been used very recently also in some major U.S. basketball tournaments, which we are very proud of. We see more and more traction for that Zoom capability in that North American market.
That Zoom capability allows operators to zoom in in a 4K image and have on the spot a very nice video that they can put on screen with only part of that large view that they have. It is really a very useful tool that many customers are testing at this moment in time. Some of them already are on air with major sport events. We launched at NAB our XT venue specifically for U.S. stadiums. We've seen a good traction of that over those past months. We've definitely been able to increase revenues coming from that part of the market of the U.S. stadiums. That shows that we made the right decision there to focus with specific solutions on that market. Xtramotion 3.0 was also launched and is getting a lot of traction.
You remember the initial Xtramotion capability, which was about improving the slow motion effects of existing cameras. We've added to that new capabilities like cinematic and de-blurring effects, which are available on the spot to show with replays or with highlights. A lot of customers are taking advantage of that new generative AI supported or enabled technology. Last but not least, for live section, we've been also further working to improve our VAR solution, Xebra, with lighter and more portable versions for also coaching and medical staff. We've been working hard to further strengthen our live section product family. On the media section side, those solutions are used for production asset management and fast and easy content turnaround. Important to note is, of course, that we continuously work on VMAP to continuously implement it with new customers and further improve it.
We're proud to say that it has also been selected for major summer events in 2026, which definitely shows that this technology is becoming a major technology in our market. We further work on several multimillion modernization contracts with customers in the different regions. We see that indeed we get more and more of such big projects with customers. That is indeed further helping to grow our order intake, of course. Last but not least, for media section, the introduction of Move Up and Move I/O components have helped to further increase the media section solution that we are providing to our customers. That further allows us to extend the possible workflows towards post-production and new media production of certain of our customers. Last but not least, media infrastructure, those routing and infrastructure solutions to control and process all media workflows.
We see more and more that Neuron is successful with the view capability in all events. We take a nice example with a U.S.-based customer called Game Creek, and this is an important customer of EVS, and now also extending the use of our media infrastructure solutions in their trucks. We see Cerebrum, our software solution for managing and controlling infrastructure of customers in their control rooms or in their OB events. We see Cerebrum to really further gain traction all around the world. We see more and more deployments with customers in important premises. Last but not least, at IBC, we'll be launching our flexible control room. If you remember, in 2022, we announced a co-development program with RTBF in Belgium. We are, as we speak, starting to roll out that with RTBF. We'll start a commercial rollout of that solution to other customers in September during IBC.
Moving on, also proud to say that we have gained in H1 also some important projects. One of them we announced through a press release, and that was the fact that we secured a contract to support major international football tournaments in 2026 in North America. I'm also happy to say here that we also did get the contracts for a major international winter sports event in Italy beginning of next year. That shows that our big event rental business for 2026 is for sure going into the right direction. It also shows, of course, that EVS keeps to be the top choice for such important sports and live events. Moving on, NAB Show, which took place in April in Vegas. We're quite happy with the feedback we received from our customers there.
It was also just after the announcement of the implementation of tariffs, we had to respond to a lot of questions and adapt our workflows. I'll let Veerle talk about that. I think customers overall in North America are happy with the way that we take care of this. We see definitely that North American customers further increase the trust they have in our technologies. We've seen several new logos, important logos, join our EVS family in this H1 period. Last but not least, as you know, also channel partners is an important focus of our play forward strategy. In the light of that, we also did organize a very successful channel partner event in North America. We definitely also see that indirect sales that we are realizing in North America are really growing strongly. We're happy to see that, of course.
That brings me to some important contracts that we announced in H1. We announced a Finepoint Broadcast important agreement that upgrades to our XDV server generation, of course. We talked about it being Game Creek that also started to use our Neuron media infrastructure solutions in their OP events. We were happy to be selected in Belgium by the RBFA for our VAR solution. We're happy to say that from now on in Belgium, all VAR that you will see with football, or I should say soccer, is being delivered with EVS technology. Last but not least, the agreement that we signed with the University of Liège for AI in sports was also for us an important milestone in this H1 2025. That brings me to another important slide. I'll ask Veerle to comment on this one.
Yes, yes. You heard me in the beginning referring to some risks and uncertainties. This slide captures actually the geopolitical and economical risks that we see when we actually pull up our forward-looking statements. Two of them we call out systematically. The left one, which refers to macroeconomic volatility such as salary inflation or continued price increases of electronic components, is there since quite a while. We know how to adapt to it. We have a pricing strategy to ensure that we continue the profitability of our solutions. It's not really a new risk, nor is the right one. That is also a risk that is there since quite some time, which is linked to the inventory of electronic components to make sure that we continuously can deliver our products and solutions within our reliable delivery times.
Those risks we systematically manage since a couple of quarters and years in a row now, and we have a good control over them. There are two new risks rising this year. The first one is the second to left, which is related to import tariffs. Obviously, import tariffs are reshaping the economical landscape. EVS definitely had to find a way and adapt its business model to ensure that there is minimal impact of these tariffs on our international trade and, more importantly, our trade in the United States. In that respect, we did decide to become an official importer of our appliances and goods in the U.S., which obviously changes our business model and which is also one of the reasons why we had some temporary delays in revenue in the first half. More on that to follow later.
Next to the import tariffs, we definitely see a weakening dollar, which is also a potential threat for EVS. We do model actually the impact of the dollar versus euro in future evolutions. We also hedge our dollar positions to make sure that the impact on our net profit is as minimal as possible. For sure, for both the tariffs and the dollar impact, we see how we have to adapt pricings to limit actually the impact on our P&Ls. Again, more to follow on that later.
Thank you, Veerle. That brings me to ESG to conclude this part of this chapter. We're quite proud to see that the efforts that we put in ESG are also being recognized by external parties. That is being demonstrated by that silver medal that we received from EcoVadis and by an improved rating that we received from Sustainalytics. That is definitely good to see that our efforts that we put across the board in the company are also being recognized by external companies like EcoVadis and Sustainalytics. We still have important challenges in front of us and quite some important topics to focus on. We feel that we are on the right path to effectively further improve our ESG approach throughout the company. That brings me to the financial update, the next important chapter in this presentation. Veerle, I'll ask you to walk us through this financial update.
Yeah. The first slide of the financial update is the top line performance. We start with the order intake. The order intake closed actually at EUR 104 million, which is a 19.6% growth, which is a very important growth. It does include EUR 14.2 million of big event rental. Excluding that big event rental, the growth is still 13.4%. Definitely, our order intake has been performing very well in the first half and is definitely paving the way for our future as well. Next to order intake, we have the revenue, which was less positive in the first half. We realized a revenue of EUR 91.8 million, which is a 6.4% decline compared to last year. If we exclude the big event rental, the decline is 1.9%. This decline was definitely not what we looked at and what we targeted for.
We actually targeted for a EUR 100 million revenue impact or revenue achievement for the first half. Unfortunately, that revenue result was impacted by some new business models that temporarily delayed our revenue recognition. We talk about a temporary delay linked to two specific events. First, as I mentioned before, we changed actually our business model for the United States to cope with the tariffs, which means that we delay the moment that we take our revenue into account. Normally, we take our revenue into account when the goods leave our warehouse in Liège. This new model implies that we take revenue only into account when the goods leave the New Jersey office. This is obviously delaying some of our revenue and deliveries. For instance, we need to make sure that the goods transit to the U.S., that they actually pass customs.
We also need to train our local team to actually have an efficient model in place to contact customers for picking up the goods now locally in the New Jersey office. Customers had to adapt to this new process. This new process, we implemented it in June, early June 2025. It was a pretty new process for the end of quarter or end of first half results. As a consequence, we had some goods that were either in transit at customs or still waiting in our New Jersey office and not being delivered to our end customer yet at the 30th of June. As mentioned, on the 8th of July, all the goods were actually received and shipped towards our customers. We achieved the envisioned EUR 100 million mark.
We also note that next to this change in business model for the tariffs, we also show a growing impact of managed projects. Serge referred to it earlier on in this presentation. For managed projects, we recognize our revenue according to milestones. It's not because we delivered all the goods that necessarily we can recognize 100% of the revenue. It also depends if all the installations were done, if the training was done, or if the final acceptance by the customer was done. In some cases, this also delayed revenue from June 30 to just early July. These are different business model drivers that we need to take into account when we monitor or model our revenue progresses in the remainder of the year. As mentioned, we consider them temporary, and we don't consider them systemic for our future performance.
When we then go to the total order book, the story is again very positive. The total order book, we succeeded or concluded a total order book of EUR 174.8 million, sorry, which is growing by 23.4%. It is very strong growth, and it is actually growing a lot both for the current year as for the next year. The split is EUR 77.3 million for 2025, and the remainder EUR 97.5 million is for 2026 and beyond. Our secured revenue for 2025 is sitting end of June at EUR 169.1 million, which is a solid base for the remainder of the year. If we look a little bit more in detail at the revenue performance, we do see some interesting proof points of our play forward strategy. We continue to see an increase of our live audience business. You see first half results from 2022 till 2025.
You see the systemic increase at the left-hand side of the graph of the slide of the live audience business growing from 42% in 2022, with a systemic growth now till 54% in 2025. Definitely a proof point of our strategy. Also from a geographical point of view, you see that the Nala region is continuously growing despite economical uncertainties in that region. North America and Latin America now represent 40% of our overall revenue. We definitely also, from an order intake point of view, see that our doubling down in North America plan is getting its roots, and we see the success of this investment. If we go to the next slide, it is a snapshot of our profitability. First of all, we start with our gross margin. Also from a gross margin point of view, we can conclude that the journey is a very positive one.
Again, you see the margin performance for the first half from 2022 to 2025. You see the steep increase. We actually realized a gross margin of 72.6% in the first half of 2025, which is an increase of 0.7 points compared to the prior year. You also have to notice that that performance includes an impact of tariffs from the second quarter that is worth EUR 0.6 million. Despite that tariff impact, we continue to see a strong performance in terms of gross margin. This resilience is mainly a consequence of our price increase strategy, but also from our continuous favorable mix that is increasing in terms of software and services. Next to a gross margin, we have the EBIT performance or the operating expenses first, sorry. Operating expenses are at EUR 51.8 million. It's a growth of 11%.
The growth is primarily driven by the additional resources that we onboarded, of which 48 resources are coming from EVS Porto. The remainder, our investment in additional team members, is primarily linked to the North America double down plan. Obviously, if we increase our team member base, we have a couple of associated costs that are increasing, like subscriptions and like travel expenses. Next to that, we see some increased expenses linked to external services for compliance-related matters, for instance, for audit or for advice when it comes to taxation or to fiscal regulations, and obviously also tariffs, which is a very complex matter. That operating expense is evolving, by the way, in line with our expectations. This is all according to our plan and our investments that we plan for 2025.
If we look at the EBIT performance, then the EBIT performance, as mentioned earlier on, is struggling as a consequence of the temporary delay in revenue. The EBIT performance ends at EUR 14.8 million, which is a 38% decline. We have modeled actually the EBIT impact would our revenue have been at the envisioned EUR 100 million, which we reached, by the way, on July 8th. That impact would have been quite important. We would have seen an EBIT performance at 21.8% margin or at EUR 21.8 million in revenue, which is definitely in line with our expectations and in line with our full year guidance. The last slide is around our financial health and on our balance sheet, which definitely structurally remains very strong. We have some temporary impacts again following the delayed revenue. All in all, the financial health remains very strong.
EPS, earnings per share, is obviously lower given that revenue impact, and obviously also the higher operating expenses and the lower financial result, given the impact of a weakening dollar and a one-off we had to take linked to the Big Tech 2022 contract. The EBIT per share ends at EUR 0.94 per share, which is a decline of 39%, which is in line with our net profit performance. We expect that to restore as soon as our revenue restores as well. Our net cash position is actually increasing slightly to EUR 52.8 million. It's a EUR 1.3 million increase.
We see that the cash flow from operations from the past 12 months is partially offset by, first of all, the interim and the final dividend paid for 2024, worth EUR 1.1 per share, and the share buyback program that we did end of 2024 and that we concluded in the first quarter of 2025. Finally, from a trade receivable point of view, we reduced our trade receivables from EUR 74 million to EUR 71 million. It's a EUR 3.1 million gain. Our trade receivables remain very healthy. We have 71% of our receivables that are not yet due, and we only have 17% that are due by more than 90 days. It's related to specific isolated cases that we follow up specifically with the customers in person. A final slide on our financial performance is linked to the intangible assets, where we do have some positive news.
The project that we launched in 2022, the VMAP project, concluded its development phase in Q4 2023, and at which point in time we also started depreciation. We definitely see a very strong traction over there. We see first customers that had actually adopted VMAP over summer 2024. As Serge also mentioned, we really now also see VMAP as an integral part of some very important wins. Amongst others, the major 2026 summer event workflows will be focusing also on VMAP. For us, this is a clear proof point that that intangible asset development has a long-term benefit and is definitely a cornerstone for future growth. We also still have a significant pipeline with some strategic key wins that are opportunities that we want to follow up on. Earlier in 2024, we also launched a new development. That development is ongoing.
We spent a similar amount of intangible asset development in the first half of 2025 compared to the first half of the full year 2024. It was EUR 1 million in the full year 2024 and a EUR 0.9 million development in the first half of 2025. We foresee that the total spend is at EUR 6.3 million, and the launch date is targeted in 2027.
Thank you, Veerle. That brings us to the next topic, which is the outlook. I'll come back to you. I think it's important to say that our outlook is based on our business without Telemetrics, and that will start integrating us from the 1st of October. The floor is yours, Veerle.
Yes, correct. Secured revenue at the 30th of June is at EUR 169.1 million. It's growing 7.2% once we neutralize it for big event rental. Thanks to that secured revenue and also the short-term pipeline that we still see, that is expected to be delivered still in 2025. Based on our protection capacity that we still have for the remainder of the year, we are happy to confirm that we can maintain our revenue guidance at EUR 195 to EUR 210 million. This is despite actually some macroeconomic risks. Yes, true, we have a risk that is linked to US dollar to euro conversion. That risk is assessed at EUR 2.3 million - EUR 3 million. We have a risk linked to project milestones potentially shifting into 2026. Both risks are actually offset by a strong second half pipeline.
As mentioned, also a capacity to still convert that pipeline into order intake and into revenue within the year. Our long-term order book, which is also very positive, is growing to EUR 97.4 million, which is actually an increase of EUR 31.4 million. Also there, we see very strong foundations for 2026 and beyond. We are quite positive that we can maintain our long-term projections as well. With the reconfirmation of the revenue guideline, we also actually reconfirm our EBIT guideline. The EBIT guideline remains at EUR 35 to EUR 43 million. It's a combination, obviously, of projection of our revenue as well as our cost base. Both these guidances are kept intentionally quite wide in terms of range. The revenue range is worth EUR 15 million. The EBIT range is worth EUR 8 million.
Obviously, because some of the uncertainty in the market still, we intentionally keep that range wide at this point in time, with the goal to narrow it down as soon as we progress through our third quarter.
Thank you, Veerle. That already brings us to the conclusions of today. When we look to the key learnings of the past period, we see that they are consistent, in fact, with those last years, but that we even need a higher adaptability to indeed be able to face the situations that change around the world, of course. When we look to the six main key learnings, we are continuously talking about the fact that the industry is keeping on consolidating, of course. You've seen today that we keep on also playing an important consolidator role with the acquisition of Telemetrics . We keep on seeing that there is more and more live content being produced and transmitted on different media, and that the value is further increasing.
When we see the sport rights that are being paid around the world, we see, especially in North America, but also in Asia, that those rights continuously keep increasing. We see that infrastructure or media infrastructure continues to be a cornerstone of big changes, and we take benefit of that with our media infrastructure solutions. Business models are still shifting. We see still an evolution from CapEx to OpEx, although it's slow, but we see definitely customers, some customers are further increasing their interest of having OpEx business models. We continuously see that our market share in our different markets is increasing, and we are very happy with that progress, of course. Last but not least, we see that cloud is still an important topic of discussion, but it's just an enabler, as many others are, and we also feel that we are quite ready in approaching that topic.
With all of that, as I said before, adaptability is becoming more and more critical to make sure that the things that happen in those worlds, like tariffs in the U.S., that we can take care of them in a good way so that they don't impact too much our customers. Next focus that we have for H2 are the following topics, of course. It's continuously delivered those big modernization projects that we have won with different customers around the world. We continue to focus on North America and Latin America on new live customers. Those live audience business customers and channel partners, we're happy to see that both order intake and revenue are growing from that side. As Veerle said, we continuously fine-tune our operating model to cope with those tariff changes in the U.S.
We are, as we speak, of course, closing and starting the integration of Telemetrics Inc., which will, of which the deal is indeed closed on October 1st. We'll continuously also leverage our new solutions to continue to further increase that order book, which is at record levels. We will continue to expand our EVS solutions offering both organically and through acquisitions and strategic partnerships. Last but not least, we'll also further focus on our cost control in this growth period that we are going through. Conclusions, remember the three things I said in the beginning. It's about a strong order intake and strategic wins, which confirm our full year guidance despite that H1 revenue delays. I stress the fact that Telemetrics is not taken into account in those guidance summaries.
Happy to say that on July 8th we achieved that EUR 100 million and that we indeed did that acquisition of Telemetrics that we announced yesterday, of course. Conclusions, as you can read here, we are quite happy to see that our EVS play forward strategy is generating the expected long-term sustainable and profitable growth ambitions. That acquisition of Telemetrics is creating a new category of solutions, which further increases our total addressable market. Remember the EUR 125 million we talked about or that Benoit was talking about in his presentation here. We are limiting further investments for growing cost structure in the second half of 2025. That definitely means that we are further focusing on our cost control. The revenue guidance is kept at EUR 195 -EUR 210 million, despite the economical uncertainties. The EBIT guidance, as Veerle said, is also kept at that EUR 35-EUR 4 3 million.
Last but not least, our target dividend is in line with our capital allocation framework, which should be EUR 1.2, depending on, of course, on the agreements that our approvals will get during our ordinary general meeting of early next year. That is the end of the presentation. As you can see, we feel that we are progressing in the right way and that the strategy is delivering on our growth intentions. H1, unfortunately, it took us a few more days to achieve that EUR 100 million revenue objective. Despite that, we feel that the pointers are pointing in the right direction for supporting our future growth. I think this brings us to the next topic of today, and that is answering your questions.
We have first questions from David Wegman.
Yes, good morning, everyone. Thanks for taking my question. The first one on the secured sales 2025, to try to exclude the impact of the custom delay and also the big event wins. What has been really, in your view, slowing down the sales traction for 2025? Is this really just the phasing of this portfolio of projects? I understand it has really increased massively. Isn't it also that your salespeople have been focusing more on the bigger project, on the bigger, sorry, tender, let's say, and so are getting wins, but beyond 2025? If you compare to your budget, basically, it seems you're okay, you're not changing the guidance, but it is becoming a little bit more challenging, let's say. What is missing, let's say, compared to your budget in terms of order wins, specifically for 2025? Are you missing out a bit on the shorter-term contract, let's say?
That's my first question. Second one on gross margin. Isn't it fair to say that the gross margin should be up in H2 versus H1? If I look at, you know, like your actually your sales guidance, definitely H2 sales should be above the level of H1 and even above the level of H2 last year. Both times you achieved 72.6% gross margin, I mean, both in H1 2025 and in H2 2024. I'm thinking here you've got quite some comfort and also you did price increase in the U.S. to offset the tariff impact, etc. Third question on the OpEx side, I know there is some flexibility here, but there is only so much flexibility because you hired so many more staff. You did already + 10% OpEx growth in H1. What is your degree, let's say, of flexibility for H2 OpEx growth, let's say?
I'm referring to the, I think, the EUR 52 million, EUR 51.8 million of OpEx you achieved in H1. What is a bit of a rough indication of the growth of OpEx for H2? Thank you.
David, thank you for those questions. I'll take the first one. I suggest that Veerle takes the second one and part of the third one, where I also will give some comments. To start on the first one about revenue H1 and our focus of our sales team, we are particularly happy to see, of course, that the size of our projects is increasing, both in size, in amount size, but also in the absolute number of those projects. It's clear that the sales process is taking somewhat longer because those are more complex projects. In that respect, we see an evolution. We don't think, we don't feel it had a negative impact on H1 or just a limited one, as we did achieve by July 8th that EUR 100 million mark. It's clear that we will continue further increasing that type of projects.
That is well reflected in the fact that our order intake for the longer term is also increasing. We feel that it's absolutely the right thing to do. For H2, we don't feel that this should have a negative impact for H2. That's why we are also confident that we should be able to achieve our revenue guidance that we announced before. As you rightly pointed out, that would mean that we would end at a similar level of last year or slightly above while we are in an uneven year. Remember, last year was an uneven year where we had also big event rental revenues, which we don't have this year. If you filter out that big event rental activity, we expect that we will demonstrate effectively growth for our business throughout the whole year 2025. Again, without taking into account the additional numbers that will come from Telemetrics.
I think I hope that answers the first question. Veerle, you take that second question?
I would like to add still that secured sales, excluding big events, is increasing 7.2%. We nearly offset the entire big event already. I believe that secured sales end of first half 2024 was EUR 172 million, so it's EUR 2 million difference. As mentioned, we also still see that we have production capacity for the fourth quarter. Yes, we're quite confident that this is achievable. Sorry, I still wanted to add that.
Okay.
Gross margin, yes, I think in our current projections, we're a little bit prudent still in terms of impact on tariffs on the gross margin. Yes, we did implement price increases to offset the tariffs impact. We did a price increase, the first one in July, a second one in August. We're still prudent there as we need to see that we can offset indeed the tariffs impact immediately by that price increase or if there's some delay compared to the moments we did those price increases. There's potentially some benefit there, but it's a prudent call at this point in time for gross margin. On the OpEx side, yes, we are also working on some cost actions.
We believe that, yes, the cost will grow in the second half still because of the flow-through effect of resources that have been added in the first half that will count in full in the second half. We did put a hold on additional resources at this point in time. It's just a temporary delay up till the end of the year. We are also being vigilant about travel. It's not limited to only customer travel. We call it limited to business-critical travel. Everything that ensures continuity of the organization is important. What is the lever we have? We can expect around a EUR 2 million to a EUR 5 million increase of our cost. A EUR 2 million increase is if we're fully efficient in executing all our spend guidelines. A EUR 5 million is actually if we do nothing. It's anything between those two numbers.
Thank you very much. Two very quick follow-ups on your last comment, Veerle, the EUR 2- EUR 5. That's compared to H2 last year.
H1.
To H1. Okay, so EUR 2 - EUR 5. On the gross margin comment, at Q1, you still had the guidance for the gross margin to slightly decrease year- on- year for 2025. You removed that wording. It's gone, so we're a bit in the dark. You say you're prudent, but we don't know compared to what. What do you mean exactly when you say you're prudent because of the tariff impact and the timing, I understand, of your price increase versus the tariff impact, etc.? What does it practically mean?
Yeah, we're targeting a similar profit margin as 2024 overall.
Okay, very clear. Okay, thanks. Thanks very much, both.
Thank you, David.
I'll give the floor to Guy Sips.
Guy, the floor is yours.
Guy, you're muted.
Thank you. Thanks for taking my questions. I have three questions. First is on the acquisition of Telemetrics . You indicated you created a new category of solutions, and in all of your solutions, you want to be the number one. What is your aim in this segment? Is that to grow faster than the market by using the EVS brand? Is it a buy and build strategy? How do you see this market evolving? On the slide, you were indicating a CAGR of 4.5%, which is not really at the same pace of all your other segments. How do you see that evolving? On the client base, are there important clients missing that you could add through the EVS brand? That's the first question. Second question is a follow-up on David's one. You indicated price increases.
Can you give us an indication what price increases you did in the other regions and what was the markup for the U.S. on top of the traditional price increases to counter the tariffs? I'm hoping I'm not spoiling the IBC primer that you will give on the RTBF flexible control room, but can you give some indication of the rollout potential for this product? Thank you.
Okay, Guy, thank you for those questions. I suggest to take that first question. Veerle, you will take the second one, and I'll let Benoit go for the third one with FCR. Telemetrics, a new category. What is your strategy there? It's definitely, as we did with other acquisitions, grow market share compared to competitors. We've seen that we've been able to do that with our other acquisitions as well. Our reputation, our brand recognition helps us indeed to increase market share on a worldwide basis. We have, as you know, more than 20 offices around the world and a local presence for many customers that will definitely help us to also. Put
Those products in front of customers in other regions of the world than the U.S., with a local presence. I think that was one of the weak points of Telemetrics , very U.S.-centric, of course, with no support elsewhere in the world. It will definitely help to have support on a worldwide perimeter thanks to EVS. Next to that, growing market share, you asked us, or you were referring to a buy and build. That might be a possibility. When we look to acquisitions, we look to acquiring a new team, like we do here, but also sometimes we look to acquire some companies that further strengthen us in a certain business category or in a product category. Buy and build remains absolutely also a possibility.
When you look at the client base, what is interesting to see is that they also have some corporate customers, if I may say so, in North America. If I take a nice example as the United Nations in that list, those are customers where typically, for the moment, we are not in yet. We see definitely on that side in North America potential for the future also to have better inroads to those types of customers than what we had before. That is an opportunity that we see definitely. Veerle, I'll let you talk about price increases and delta for the U.S.
Yeah. I think we did a general price increase across the world in May of this year. It's difficult to put a percentage to it because it was really targeted by product. I think overall it must have been around 2% - 3%. Not that big, but it's really targeted by product. It's not a general one. With regards to tariffs, we specifically only increased the price in the United States. It's a country add-on, as we would say it, for that specific region. It's not generic on the US dollar price list, but it's really specific to the United States. It's a 4% increase that we did in July and a 2% increase that we did in August. Again, it depends product by product, depending on the hardware-software split of the products. Becoming an official importer, what does it allow us to do?
It allows us to really split both from an operational point of view, but also from an administrative point of view, the intercompany flows for hardware and software, which then assures a tariff basis that is much lower than the average sales price, which embedded actually software by default into the products. This is how we cope with this tariff impact. This is why the price increase compared to the tariff impact is only marginal. We can note that also in July, the 4% that we did implement in July also includes some dollar protection that we did.
Okay. Thank you, Veerle. Talking about FCR, Benoit, I'll ask you also to do an introduction so that everybody understands what we're talking about and what are the main advantages of the solution for customers, so that you can also answer the potential of that market.
Yeah. In fact, FCR is a flexible control room. It's very complementary to the Cerebrum control system. The Cerebrum control system is about control and orchestration. Here we add automation and operation today. The intention is to become, if I make a comparison, the ERP of production. I think that speaks to you about what we want to achieve here with this FCR. Since we will be the ERP of the production, it will solidify the position of all our product portfolio, but also it will enable us to win a large modernization, transformation project, and help our customers to transform the way they operate. All our customers have to produce more with less. Because of an ERP, they can really monitor the resources. When I mean the resources, it's really the systems that they are using. They can better share and reuse the systems between multiple productions.
They can also have less expert operators and make use of more, let's say, operators that can take more roles within the production so that can optimize the OpEx. That means that we will help our customer to achieve these goals of producing more with less.
Indeed, we will show that at IBC. We'll be happy to show that at IBC to all of you here around the table if you can make it for Amsterdam and the event, which is on a Friday morning.
Friday morning.
We get already some traction before IBC for this concept. Customers are interested. It fulfills the need that is in the market, for sure.
I think at the same time, this would be a good moment. That event is still open for registration. If you're happy to join the IBC on a Friday morning in Amsterdam, please register. Registrations are still open for a couple of days, but then we will need to close them down. If you want to see it in action, please do register for that event.
Friday, September 12 in Amsterdam. Looking forward to seeing all of you.
Yes, correct.
Guy, I hope that answers your question.
Yes, thank you.
We have a few questions in the chat. The first one is from Luc Verhunst. Is there an explanation why the weak total report is mainly explained by the weak performance in Europe and the Middle East, while America and Asia are growing?
Let me read that again.
Yeah, I think definitely what we see is that America is growing strong. Despite what we could expect, implementing tariffs and uncertainty about the dollar, we definitely see that America continues to be a growth engine for us. We see it in revenue. We see it in order intake first half. This is also the reason we really believe in the opportunity in the U.S. This is also the reason why we did our double down North America plan. It's definitely not slowing down in the U.S. Asia Pacific, our order intake was a little bit lower in the first half because of economic prices, actually. The euro was pretty strong, and we sell in euro in Asia Pacific, so order intake was a little bit lower. True, in revenue, they were still strong. It's always a little bit a catch-up effect.
I think in EMEA, order intake in the first half was then a little bit lower. Obviously, also in EMEA, we see good traction as well, also with potentially some bigger projects again in the Middle East, etc. We definitely see it's perhaps the first half was not their best half, but we're definitely not concerned about the longer term. I'm not sure, Serge, if you want to say anything.
Yeah, no, I think that's indeed also in line with the overall economical situation in the world. We also always see that the U.S. is faster and investing more, and that Europe rapidly slows down when there is more uncertainty. I think this is, as you say, Veerle, not really concerning. We see for the rest of the year in the pipeline opportunities that weakness, especially in EMEA, should be compensated.
We have a few questions from Alexander Craeymeersch, who had to leave the call. I suggest you read the questions first before answering them.
I think regarding the delays of the first half, they were not necessarily linked to one specific contract. Basically, we had a total of four deliveries that were either in transit, at customs, or not picked up from our New Jersey office. It's not specifically linked to a specific segment, and it's not linked to one large contract. It's just more generic. The second question is on the Telemetrics acquisition. I'm not sure, Benoit, if you want to take that one.
I think that we already partially answered that. We want to sell more, in fact, for sure. In terms of the EBIT margin, we want to increase the EBIT margin. First, because we want to sell more. Second, we think that we can optimize the gross margin along the way by putting more value into software, especially thanks to AI. If we go into these new kinds of solutions, it's because we plan to change the game, in fact, and to also play the ecosystem gameplay, which will help us to penetrate better in this market.
Okay. The third question, I'm not sure I immediately get that one. Is North America a margin-aggressive region?
I will reply by my interpretation of the question. While business is growing, we also see strong contribution. Margins are high. It's not that we are growing by lowering prices in the U.S. That's absolutely not the case. I would even say on the contrary. Customers are willing to pay even higher prices for quality and reliability that we offer in North America. Don't assume that growth means lower margins. In our case, we would say it's even the contrary. North America is a strong market where customers absolutely appreciate the quality and reliability of our technology and of the service that we also provide next to that.
An example, for instance, is the deal that we announced in the fourth quarter, the large U.S. bank in media infrastructure. It considerably contributes towards the margin improvement that we see in media infrastructure. This is a proof point that we don't really see margin pressure from our U.S.-based customers, even on the contrary. I think there's a question about the new business model being applied in the U.S. I presume that this question is related to the fact of importing officially in the U.S. Yes, obviously, that is purely as a reaction to the U.S. tariffs. It is only applied in the U.S. and for the U.S. as well. For instance, Latin America still continues in direct shipment from EVS headquarters. For all U.S.-based customers, yes, there is a stopover in New Jersey, and it is limited to that team or to that customer base, I would say.
Does the model introduce additional risks? Yes, obviously, if you've seen the result from the first half, it changes a little bit responsibilities of teams. All of a sudden, the U.S. operations team became responsible as well to receive shipments and to arrange shipments to customers. We've seen that that team was underserved and potentially was not ready for such a change in the business model. Those are things that we have already taken into account. We have decided to strengthen that team locally as to make sure that in the future, we don't have these revenue delays, for sure. It does change a little bit the way we work, and it does make sure that responsibilities are more spread throughout the organization. It's just a question of internal adaptation, and then we move forward. I don't, it's not subject to any other geographies.
I will now give the floor to Michael Roeg. Michael, you're muted. Otherwise, he raised his question in the chat.
Good morning. Can you hear me?
Michael.
Yes, yes.
Hi, good morning.
Good. Happy. I finally found the unmute button. I also posted my questions on the chat. The first one is about the acquisition. Can you share your ambitions in terms of sales and operating margins for Telemetrics in about five years from now? I noticed there's an earnout, and generally, earnouts are quite good because it lowers a bit of the risk. The earnout period is very short, only 2025 results. Why is it so short? When is the intended payment of the earnout? That's the first set of questions.
Okay. I'll start with why is the earnout period so short. That is because you don't see how long we've been talking with them. This is an agreement and negotiations that we started quite some time ago. In fact, you see it as being short, but we've been talking with them for a few years in the meantime. Our agreement is now coming to a conclusion, and the results, the earnout is in that respect for this, in line with what we've been seeing over those last year and with some objectives that we gave them. That is why you feel it's so short. In our perspective, in our relationship we have with them, this dates from much longer. I think that's answering why it's so short.
Another advantage of having it short is that indeed we'll be fully owner of the company and that we want to make sure that we can take the right decisions that will help us grow the company on a very short term because sometimes earnouts are not helping to do the full integration on the short term. I think that's definitely where we see also the advantage of having a short earnout period in these things. What are the ambitions? You know our ambition is to further grow throughout the coming years. I think our ambitions are in line with Telemetrics as well. Typically, we set, when you look back to our track records and our ambitions, that meant more or less an average growth year-for-year of 12%. I would say if you take that 12% over those next years, you'll see where our ambitions are landing also for Telemetrics.
That is giving an indication about where we want to be in a few years' time. When is the intended payment? I'll refer to Veerle for.
It will be first quarter 2026. As soon as we close the year and we validate the results, payout will happen.
Okay. The first payment in Q4 and then the earnout Q1. On the operating margin, it is below the EVS operating margin. Is that something that you can only improve based on sales growth, or do you also see opportunities to optimize the cost without even sales having to kick in?
We expect to increase the value, in fact. By shifting the value to software, we think that we can increase the gross margin. Yes, and by selling more, we combine, let's say, the gross margin increase and the increased sales to increase the EBIT margin.
Yeah. There's no immediate operational cost efficiency that we plan for if it would not be in the favor of EVS. Telemetrics has a very nice production site, very well-skilled production team. Now that the tariff situation has stabilized, should we anyhow want to produce now in the U.S., which is still something that we're investigating? We didn't want to implement this as long as the tariff discussion was very unstable and uncertain. Now that it is stable, we are reanalyzing potential production in the U.S. If so, we would definitely see if we can be efficient by combining EVS production with Telemetrics production facilities and staff just because they are used to it and they have very well-suitable facilities and teams as well.
They already bring sort of a cost synergy from the start if necessary. Good.
Exactly.
That's very helpful. My second set of questions is about milestones, especially because in the guidance, you flag some uncertainty about milestones. I start wondering, what is the risk that you see? Is that, for instance, that a milestone is only reached in the first week of January instead of the end of December, or are there other things in play?
Yes.
More generally, how many milestones does a project typically have?
Yeah. I think managed projects are split in total in around eight milestones, I think. Some are even at signature of contract. There's a first invoice and a first payment. We are very much in control up to the milestone of delivery and shipment of our goods, which relates to about 60% of our revenue. That is something that we purely have under our control. The final 40% often depends on installation, often depends on training and final acceptance, where we are a little bit more subject to customer planning as well. Often it's linked to the availability of a new facility being there, like a new office or a new truck or anything like that, or the personnel of our customers being available for training and things like that. There's a little bit more uncertainty, we would say, in these final steps of revenue recognition.
Given the growth in our managed projects, this was not something that we were modeling in very huge detail in our secured sales process. We are obviously changing this. We are now modeling this very specifically. We are very much proactively now looking where we have potential risks or potential opportunities as well and what we can do to manage those risks and opportunities. That is a situation.
Some of these projects are also integration projects by system integrators. Before you have the final acceptance, you need not only the EVS part to be delivered, but all the different parts of the solution to be delivered and to be glued together and working. Sometimes the delay of one partner in the ecosystem that is not depending on us and it is depending on the system integrator, the relationship between the customer and the other vendor can shift a project for a few months.
Okay. That's very clear. Based on not today's presentation and some of the presentations of the past, I have a couple of these very large projects on my radar scope, including the U.S. bank. You have the studio in Belgium. You have the large broadcaster in the Middle East. Based on sort of the roadmap for each project, there is something that may or may not slip into early next year, I assume. That is sort of the risk that you flagged.
Exactly. Exactly.
When I combine these large projects, for which I don't know the exact sales scope, is that a difficult base of comparison for next year? Because maybe next year you have only two of these large projects or one instead of three.
In fact, the number of projects like that is only increasing.
Yeah, exactly.
Okay.
I would say that by doing that, the risk is also being a better distributor.
Exactly.
We're not talking about five, but we're talking about more than 10.
Yeah, absolutely.
These ones that you refer on are not really in the scope. That means that.
Okay. 10 projects, eight milestones per project, 80 milestones, all of it.
It's a lot more than 10. It's a lot more than 10.
You have a huge amount of milestones that can swing before or after the quarter. Is there something then really planned for year-end that can really make the difference if it moves to January?
No, it's just an internal follow-up. We realized that those projects, we need internal synchronization between sales, project management, finance, etc., to make sure that first we grasp potential risks and we take mitigating actions upfront whenever we see a potential risk. It's just more internal adaptation to the way we forecast rather than anything else.
Okay. That's very helpful and clear. That's it from my side. Thank you.
Thank you, Michael.
I will now give the floor to David Wegmann, who has another question.
Yes, thanks. I have one additional follow-up on the Telemetrics acquisition. It's very useful to know that you've been discussing with them for a few years. Two quick follow-ups on that. Should we understand that typically on earnout, normally, you have quite some, yeah, let's say, uncertainty on whether the company will achieve or not its targets here because you've been following them now for a few years. Should we understand that there is actually a very high degree of certainty that you will need to pay, you know, the EUR 13 million, let's say, the EUR 12 million more that on the earnout side is a quasi-certain payment, so to speak, or a high level is certain? Should we understand that basically what you kind of negotiated or agreed is a level of profitability which is very close to what you've been disclosing, so i.e., the 11% EBITDA margin? Okay.
Thank you for the question, David. Those next months will be critical, of course, to see where we will be landed. We have no certainty, but we hope we'll get to the maximum of that amount because if it is, that means that they're doing very well and that they've done a good mix of revenue and profitability. We hope that it will be the maximum. It's absolutely not a guarantee. We can't say today if it will be 50% or 70% or 100% of that earnout. We just hope that indeed things turn out for the best and that they realize their maximum earnout because everybody would be happy by seeing that.
It is not EUR 13 million earnout. It is EUR 6.5 million upfront and then a similar amount in earnout.
I'm not very clear, but I mean, the total. I'm trying actually to understand either of, and sorry, it's housekeeping for the model, but basically whether we need to plug in, let's say, the EUR 12 million on an 11% EBITDA margin, or actually if they, let's say, in the best scenario, which Serge is reflecting upon, saying, "Okay, we will all be very satisfied if we need to pay them the EUR 12 million," then does it imply an 11% EBITDA margin? You know, yeah, that's basically where I'm trying to get at. It's a mix of achieving a good profitability and revenue levels. At the end, they might have a bit less revenue with a good profitability margin. The earnout will be lower. The maximum amount, we hope they will do that. Yeah, for the moment, we would not expect that that will be achieved.
I hope we have a pleasant surprise.
We will help them to achieve it, actually, in Q4.
Okay, clear. Thanks.
There was a question from Valérie Lefebvre as well.
Yes. Yeah. Mentioning 40% of your revenue made in Nala, what part of your EBIT is made in this region? We don't necessarily calculate an EBIT performance per region, but as we mentioned before, we don't necessarily have a higher price pressure in North America than the rest of the world. There's no reason why they would have a negative impact on the overall EBIT, not at all. Even, as we mentioned, on the contrary. I hope that answered the question, Serge.
Yeah. I think it's important to look at our business model. Most of our costs at EVS are remuneration costs, and most of those remuneration costs are in Western Europe because, of course, Belgium is a very big hub, but we have also development hubs in the Netherlands, in the U.K., France, and Portugal, of course. As an international worldwide company, most of our R&D costs are in Western Europe and nowhere else. With Telemetrics that will change a bit. When you look to our business model, most of the remuneration costs with engineering, with the older supporting activities, are in R&D in Western Europe. If you look to the U.S., the only activities we have in the U.S. are sales and customer service, and some other smaller activities. That's why we cannot really compare an EBIT of a region with the EBIT of another region.
We can compare gross, I'm sorry, contribution to EBIT. You have to look then to the revenue. We could say that 40% of revenue represents 40% of our profitability, our contribution, more or less. It will vary a little bit, but we think that North America is definitely generating a good profitability. Yeah. Anything else?
Yeah, we have a remark from Michael in the middle.
by telling that's the joke to end the conference call.
Good. All right.
Yeah.
No further questions. I suggest that we close the call here. Thank you for attending. Thank you for all those interesting questions. I hope we've been able indeed to pass on that key message out of today. I will just say it again. Those three things that I would like to make sure you take from today is that we see a strong order intake and strategic wins that confirm our full-year guidance despite that H1 revenue delay. In that guidance, we did not include numbers of Telemetrics Inc. The second topic was on July 8th, we achieved that EUR 100 million revenue bar with EUR 21.8 million EBIT, which shows that we're close to 22% EBIT over revenue.
Last but not least, indeed, that acquisition of Telemetrics Inc., which will help us in the future of further achieving or coming closer to our goal to be that number one live solution provider in our industry, that helps us here also to increase our total addressable market. All in all, we are happy with the progress we're making, and we see that the indicators, the long-term indicators, absolutely point in the right direction. We'll make sure that H2 is living up to expectations, of course. Thank you for joining today, and look forward to seeing you in Amsterdam on September 12th. Thank you so much, and I hope to see you soon in detail. Have a nice day.