09.10 Europe/London, August 10, 2011 By Julian Clover
ADB says that its restructuring and integration is proceeding according to plan, after a first half that saw its broadcast business decline amid poor market conditions.
The scaling back of the retail business also meant diminished returns, but growth came from the newly acquired broadband business, the former Pirelli Broadband.
Despite the challenges, first half 2011 revenues came in at $172 million, up from $141 million for the same period in 2010. Gross profit of $50.1 million was up by 2.3%, the company explaining that margins had changed as a result of the product mix that now includes both TV and gateway devices. EBIT of $900,000 compared to $3.7m in 2010.
Andrew Rybicki, Group CEO and Chairman, commented: “The overall situation of the broadcast market caused smaller than expected revenue development in the first half of 2011. However, the first positive and clearly visible results of our emerging business in the US (Charter and Time Warner) and India, show a real business potential there. Similarly, our traditional European business has also brought significant new opportunities, to be announced soon”.
ADB’s top ten customer bring in 70% of the company’s total revenue with no single customer bringing in more than 12.5% of revenue. 95% of TV equipment sales are for high definition product – cable and satellite segments now enjoying a stronger momentum.
Europe represents 93% of revenues, with Western Europe contributing 69% and Eastern Europe 24%. Americas brought 6% and Asia Pacific 1% of the revenue during the first half of 2011. The broadband business has shifted the weight marginally towards Europe.