ADB: Pirelli compensates for lower STB sales
Advanced Digital Broadcast Holdings reported unaudited consolidated financial results for the first half of 2011 with revenue reaching $172 million, compared to $141 million last year for the same period, representing a growth of +21.6 per cent year-on-year. The growth was entirely attributable to the acquired Pirelli broadband business, as the first half of the year saw the broadcast business declining. Scaling down of the retail business also contributed to the lower sales during the first half.
Gross profit amounted to $50.1 million an increase of 2.3 per cent over the first-half of 2010. Operating expenses, including the costs for research and development, accounted for $50.8 million in the first-half of 2011, stable compared the $50.6 million of the second half of 2010, but representing an increase of 20.8 per cent year-on-year. The increase is a result of consolidating the new broadband business with its entire cost base and personnel to the Group and does not yet benefit fully from the effect of the ongoing reorganisation efforts.
During the first half of 2011, the Group launched several processes to streamline and restructure its operations. This included initiatives related to organizational structure, product lines, markets and headcount. The reorganisation costs amounted to $3 million during the period, in line with expectations. The reorganisation process will continue for the rest of the year.
Andrew Rybicki, Group CEO and Chairman, commented: “The results of the first half of 2011 were in line with our expectations in respect of the operating profitability, for which I want to express my thanks to those members of our staff who contributed to it. 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. Finally, the launch of the new Services Division, which is a result of rapidly growing contribution of such activities, is strategically very important. This emphasises our move towards full solutions and services, which is the key to success in the long run. We focus on sustainability on the operating performance, not maximising the revenue line at any cost”.