Pace continues fight back with increased profits
Editor | 05-03-2013
Following its horrendous 2011 pay-TV and broadband service provider Pace has bounced back in 2012 with increased revenues and profits.
For the year ended 31 December 2012, Pace reported adjusted EBITA $158.1 million, up 11.8% year on year, and free cash flow of $182.7 million on the back of $2.403.4 billion in revenues, itself up 4.1% on 2011.
This strong performance from the company is more impressive given that the last two years have been hugely challenging in particular regarding supply which was effectively attributable to a complete change in senior management from the end of 2011 and early last year. The company also received a further blow in December 2012 when BT terminated a deal to supply STBs for the YouView project even though it has continued with its contract to take on Pace technology for its flagship BT Vision IPTV service.
Yet over 2012 Pace can point to a number of highlights such as a strategy to improveoperating efficiency that has delivered sustainable savings in the year and what the company calls a “transformation” of its aforementioned supply chain that it claims will deliver tangible benefits in 2013 and beyond well underway. The result is that, says Pace, that it has been reconfirmed as the market leader in pay-TV hardware, the global number one in STBs and residential gateways.
At the heart of the drive to profitability has been key wins for the Media Server platform— the emergence of which has been one of the major developments in 2012—at leading operators such as DirecTV and Comcast in the US and a number of other firms Europe, Latin America and Asia Pacific. Other notable deployments have occurred at the likes of BSkyB, Foxtel and Sky New Zealand.
Looking forward, Pace believes that it has a strong pipeline into 2013 with an opportunity in 2013 to develop and improve performance. Commented Chief Executive Officer Mike Pulli: “I am pleased to report that Pace has performed impressively in 2012, by delivering increased operating profits through both top-line growth and operational efficiency, with a particularly strong second half of the year.
"We have made good headway on executing our strategy and Pace is becoming a more profitable, cash generative company. We have momentum, a sustainable platform to build from, and we expect to make further progress in 2013 and beyond".