Media content protection and value-added service technology solutions provider,The Kudelski Group, has announced that in the first half 2018, total revenues and other operating income decreased to $446.1m from $497.2m in the first half 2017. The company announced its 2018 half-year results earlier this week. In the first half 2018, revenues in the integrated digital […]
Media content protection and value-added service technology solutions provider,The Kudelski Group, has announced that in the first half 2018, total revenues and other operating income decreased to $446.1m from $497.2m in the first half 2017. The company announced its 2018 half-year results earlier this week.
In the first half 2018, revenues in the integrated digital TV (iDTV) segment decreased compared to the first half of the previous year. Reported iDTV revenues decreased by 16.4% to $280m. The groupÂ’s core digital TV business was resilient in advanced economies, while it declined in emerging markets. Due to its exposure to emerging markets, Conax has seen its revenues materially decrease compared to the first half of last year.
Cybersecurity gross profit increased during the first half, driven by growing sales of high value-added solutions, while the resale of third party products was lower than in H1 2017. The shift toward higher margin advisory services, managed security services and proprietary technology sales is an integral part of Kudelski SecurityÂ’s strategy, the release stated.
In this first half 2018, revenue contribution from IP licensing was a fraction of the previous half yearÂ’s, when the company completed several licensing transactions.
As part of the measures taken by the group to achieve synergies among entities and align digital TV operations with the new market realities, the company completed the integration of its Conax and Nagra organisations.
Following its strategy to focus on core activities reaching critical mass and profitability, the group has announced the sale of SmarDTVÂ’s Conditional Access Module (CAM) and Set-Top Box businesses to an affiliate of Neotion SA. This transaction will be accounted for in the second half of 2018.
During the first half 2018, the company entered into new contracts and completed new deployments in the digital TV segment including in Europe where Vodafone and Nagra have been working together to integrate NagraÂ’s security solutions into the Vodafone Group TV architecture, which is being deployed across several operating companies. Telefonica Spain, another key Nagra customer, launched a new 4K IPTV set-top box that includes Nagra’s latest Conditional Access technology, Connect. In Africa, the Nagra Protect cardless conditional access reportedly secures the new HD premium channels launched by Canal+ International in Africa.
In the Asia Pacific region, and in South Korea, in particular, Nagra was selected to protect KT SkyLifeÂ’s combined satellite and mobile TV service for vehicles, SkyLife SLT.
Regarding the company’s anti-piracy services, Canal+ and Nagra deployed forensic, monitoring and takedown services to help fight piracy. In addition, NexGuard, NagraÂ’s watermarking technology, was certified by the ChinaDRM Lab, the standards body that oversees digital rights management in China.
With regard to NagraÂ’s OpenTV suite, in the Asia/Pacific region, Nagra completed key upgrades to its OpenTV Platform at a number of customers in the region. In Taiwan, NagraÂ’s OpenTV suite was selected and deployed to provide a new OTT platform for Taiwan Broadband Communications (TBC).
In the second half 2018, the group expects revenues in the core digital TV domain to grow compared to the first half, driven by additional sales volumes from existing customers, in particular in the Asia/Pacific and Africa regions. Second half 2018 revenues are also expected to exceed the first halfÂ’s for the groupÂ’s cybersecurity activities, benefitting from positive customer acquisition momentum. In the iDTV segment, second half 2018 operating expenses are expected to be lower than the first halfÂ’s, as the group realises the benefits of its 2018 restructuring programme, including in particular the cost reduction from the completion of the restructuring of the iDTVÂ’s French operations, the releases stated.
Taking into account the prospects for second half 2018, the group confirms its original full year 2018 outlook with operating income of $30 to 45m before restructuring costs.
