Good evening, ladies and gentlemen, and welcome to Vantiva Q1 2023 Revenue Conference Call, chaired by Luis Martinez-Amago, CEO, and Lars Ihlen, CFO. At this time, all participants are in listening mode. Later, we will conduct a question- and- answer session. If you would like to register a question, please press star one one on your telephone keypad. Just to remind you, all this conference is being recorded. We would like to inform you that this event is also available live on the Vantiva website with synchronized slideshow. During this conference call, statements could be made that constitute forward-looking statements based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forward-looking statements.
For a more complete list and descriptions of such risks and uncertainties, refer to Vantiva's filing with the French Autorité des marchés financiers. I would now like to hand over to the call to Luis. Please go ahead.
Thank you, Thierry. Good afternoon or good morning to everyone in the call and welcome and thank you for participating in this call. As said by Thierry, we are gonna report about our revenue performance in quarter one. As you will see, we are simplifying the reporting, aligning ourselves with the normal practice of the market. We will cover in quarter one and quarter three only the revenues, and in the first half and full year in education of these quarters. Let me start by saying that we are delivering a quarter one very much in line with our expectations.
As you will see, we have growth in the first quarter, in a very challenging economy, as I shared with you in the previous occasion, but we are delivering growth in this first quarter. Connected Home activity, you will see it delivered a double-digit growth driven by a very still active broadband market. In our Supply Chain Solutions activity, there is a certain decline year-over-year, and I will cover a bit more what is the basis for this decline. Overall, the most important one is that we are in track to deliver on our guidance. If we go to the next slide, you will see here that the overall growth has been from EUR 559 same quarter last year to EUR 573 this quarter.
As you can see per division, we have a 12.1% growth in Connected Home from EUR 408 to EUR 458, and a certain decline in Supply Chain Solutions division. We had a decline from EUR 150 last year to EUR 115 this year. This, as you can see some variance, but is very much in line with our expectation, and some declines has been compensated with some additional growth in some other activities. If we go to the next slide, this is the guidance that we shared with you last time, and we are confirming this guidance. We are acting in line with all our expectations. We are very happy of the support of customers and our teams. They are executing on any event of the market.
We have the full support of all our customers, big and small, and we are working together to go through these challenging moments in the global economy, but pretty happy to confirm that we are gonna be delivering on our guidance. If we go a bit more in detail, BD by BD. If we get in Connected Home, as you can see here now, it's splitting the revenues between the two big categories, broadband and video. As we keep reporting in video, we are very selective in the things we do. The overall market is showing a certain decline as we do, we are pretty happy on the type of deals that we are getting and how we are running that business.
We are replacing all activities by new activities in the targeted areas. As you know, it's RDK video and Android TV video. As you can see, we have a very small decline compared to last year, but in the right direction. As you can see, there is a significant growth in broadband in a market that is not having this growth. It's showing that we have a significant traction, a big in the market, so gaining market share. This is based on a number of axis. I think Wi-Fi 6 is a very demanding activity. I think operators keep re-investing in this activity a lot in North America, but also in other geographies.
Due to the deals that we won in the past on this activity, this is paying the way to still some significant growth as you see. There is also a good traction in the fiber. As I told you, fiber is our key priorities to really keep gaining share. We are doing that. We are dominating the cable segment, as you know. In fiber is one of our big ambitions. We are working on that, and it's showing significant gains in this aspect, and we are expecting this to continue. The video, it has been impacted in economies a bit more, sensible to global macroeconomic, microeconomical situations.
I'm referring here, for example, to Latin and India, in which, in general, service providers tend to be a bit more cautious when the situation of the economy is impacting much more the demand than in other geographies. Okay. Something that I'm sure will recover, but for the moment we are very attentive to this type of markets because they're a bit more volatile than others. Overall, the situation is still very volatile, as I was telling you when providing the guidance for the year. All actions are in place to deliver on our promises. I think we were very much in line and in partnership with our customers. We are serving them, following the needs that they have.
That is different market by market and type of operator per type of operator. In some places, we need to adjust to a weaker demand. In some others, they are coming with a very urgent demand to cover some commercial needs. We have all operations in line to adapt to these fluctuations. The chipset supply keeps improving. I think we are even if in some specific chips we see still some difficulties. Overall, I should say that in terms of supply, the situation is coming quickly back to normal. The other aspects is we see a lot of activity, what we call commercial activity, in helping customers in defining and preparing the future product portfolios.
A lot of our customers are preparing new opportunities in fiber, in fixed wireless, and mostly to introduce Wi-Fi 7 technology, as shared with you in the past. I'm pretty happy of seeing the level of engagement that our teams have with these customers. I'm very optimistic that we will accompany them in the future to the very pave the way to the growth that we are planning to have moving forward in following years. If we move to the other activity, to the other division, Supply Chain Solutions. Here as you can see, what we have suffered in quarter one is in one of the segments, which is the optical disc, which is the traditional. We have some weakness in quarter one, a bit more than expected.
There are a number of reasons that are justifying that. One of them is some of the big titles that were planned to launch in quarter one has been delayed for later quarters. Some of them will do in quarter two, some of them in quarter three. This is a significant part of growth and volume. This is just a delay that we will see coming later. We have some of our big retailers in North America that have some rearrangement of the spaces in their, in their stores that were pushing out a little bit the new demand just for them to end the replanning of these activities. There is a number of small reasons. We are not very much concerned. We see the year will come back to what we were expecting gradually. Okay?
We need to go through the motions. We keep working on our efficiency in this business. In the traditional one, as shared with you, we are working in the productivity improvements, in trying to rationalize the activity, try to make it more efficient, to keep extracting profitability in a lower top line. We keep investing in all the diversification activities. As you know, we are investing heavily in the vinyl capacity because the demand is there and will be there for the years to come. Our key customers, the key music studios, are counting on us to put as much capacity as we can in place to provide us with this activity. That will be growing quarter- on- quarter over the year. That will...
It's part of the plan, but we are considering that that could even compensate a bit if the optical disc business keeps showing some delays or weakness. We're pretty optimistic in all the actions that we have in the vinyl, and we will keep growing quarter- on- quarter. On the other diversification activity, which is what we call fulfillment and brokerage of transport, is showing good dynamics. We keep adding brands on the portfolio, and that should be other axis of diversification. As you know, this business is all about increasing the productivity in the traditional business optical disc, and keep investing and growing in the diversified business. This is the major axis. We'll keep reporting on you moving forward. Okay.
I think this gives you a quite a wide panorama of our performance in quarter one. Remember growth in a complex economy. This, we are quite happy of this performance in quarter two, and we will keep executing throughout the year and coming back to you with more updates. Thierry, maybe we should go to the Q&A.
Absolutely. Thank you, Luis. If you want to ask questions, please, press star one one on your telephone keypad.
Thank you.
Do we have anyone on the waiting for a question?
Yes, we have Fiona Williams from Edison.
Okay. Okay, Fiona, go ahead.
Hello?
Yeah.
Can you hear me okay?
Yeah, good.
Okay. You talked about gaining market share in Connected Home. Is this down to any change in the competitive landscape, or is it your technical capabilities, or is it pricing, or is it a combination? That's my first question. On Supply Chain Solutions, I just wondered if you felt. You referenced the de-stocking in the statement and then talked about customers doing a bit of refurbish and reorganize. Do you think that it's actually worked its way through now? Also, is the investment program on the vinyl intact on track? Thank you.
Okay. On the first question, which is a very good question, it's a very difficult thing because it's a combination of many things, and it's not an event of one quarter. It's all everything that we are doing over the past. It's the positioning we have not only in the portfolio of customers that we are addressing, but also on the technologies that we are present. Okay, it's a bet that you do. Normally after that, it depends in which geography you are and in which sector you are, that depending on the market events, you can take advantage of some market evolution, but sometimes it could go in the, in the other direction.
I would say our selection of markets, as you know, we are very predominantly North America, and the performance of North America market, has been quite robust in the first quarter, and this is helping us. Our presence in the cable, our focus on fiber, our position in Android TV, all these fundamentals at the end is a combination of things that, if you find that this is the places where, our customers are investing, are preparing their campaigns, then you go with these wins. Okay? There are many factors. It's very difficult to mention one of them, but look, this is what I can answer on that question.
On the second question, if I understand well, you say you ask if our plans to executing the capacity expansion of vinyl is still in place. The answer is yes. The only thing I can share with you is that in the past quarter four, we were reporting that we were having a bit of difficulties of finding the press, the machines to produce the vinyl, and some of them were arriving with a bit delay. Now what I can report to you is that what we see before this year is that we can even be a bit ahead of with the original plans, that we see that some of these machines are arriving a bit in advance.
I'm pretty optimistic that if anything, this year the capacity plans will be a bit ahead of plan. That will allow us to even deliver a bit more vinyl than what we have in the plan. It's still to be seen. It's a plan, if something I would say with you is that I'm optimistic that we could execute a plan or a bit better than plan in the capacity expansion.
Okay. Thank you.
Can I come in for another question?
Yeah, there was one more about whether you felt the de-stocking in the DVDs in the retail sector had actually worked its way through now?
Do you mean the inventories that we are depleting the inventories?
Yes.
Yeah. Okay, first, this is not basically a problem for us because the inventories we have of this belongs to our customers. Our business, we produce their the DVDs that they ask us to produce. They own the DVDs, we store them, and after that, we have the business of shipping this to the different stores. Having more or less inventory, it is not our objective. I think it's something that they manage. But what I would say with you is that, yes, I think they're pulling out of the inventory and it is a mixed bag, and we normally control that. There is new titles. That is normally what is a significant part of the new volume.
When they go to the long tail catalog, they control what they need to sell or not sell or reproduce. I don't see any major, important KPI to share with you on this. It's a business as usual.
Okay. Thank you very much.
Thank you.
Thank you. We have no more questions for the moment.