Kudelski Reports H1 Net Profit
CHESEAUX, Switzerland -- The Kudelski Group (SIX: KUD.S), the world’s leading provider of media content protection and value-added service technology, announced today its 2013 half year results.
Total revenues and other operating income for the first half year increased by CHF 1.9 million to CHF 390.2 million, in spite of the divestiture of Abilis, a Group entity sold on December 13, 2012. Sales of SmarDTV devices as well as NagraID Security display cards were among the key drivers supporting the top line.
While the European crisis and weak consumer sentiment continued to affect the European Digital TV business, the American Digital TV business posted a 12.1% growth. Both the South American and the North American markets contributed to the strong regional performance. In North America, a large number of new smart cards delivered to Dish Network underpinned the top line, while a further expansion of Group’s footprint in South America enabled continued strong performance in that region. Nagra’s footprint continues to expand with the win of Racsa, the largest Costa Rican telecom company, selecting Nagra’s hosted Medialive multiscreen over-the-top service. Furthermore, Telefonica’s middleware roll-out is progressing according to plan, with the deployment of OpenTV5 starting in Chile. Telefonica Chile also starts leveraging SmarDTV’s highly cost optimized and pre-integrated set-top boxes.
Similarly, SkiData performed well in the American market, posting 46.5% growth, with strong momentum both in North America and South America, including in particular first installations in Peru, Columbia and Uruguay, as well as contracts for airport parking projects in Chile and Uruguay.
Following the successful completion of the 2011-2012 restructuring program, the Group reports a CHF 16.9 million operating income compared to the CHF 2.5 million operating loss in the first half of 2012. In the first half of last year, operating expenses included CHF 19.8 million of restructuring costs. This first half’s operating income was comparable to the first half 2012 operating income before restructuring costs, in spite of the ongoing investments in cyber security. The Group turned the CHF 9.7 million net loss for the first half 2012 into a CHF 10.3 million net income for the first half of this year, improving net profits by CHF 20.0 million.
Following previous periods’ cost saving, in the last six months the number of employees has grown by 106, among others as a consequence of the ongoing investment in the Group’s cyber security business and SkiData further insourcing of its software development activities.