Pace predicts profitability ahead of guidance
DetailsJoseph O'Halloran | 13 January 2015
As the company puts its previous nightmare years behind it, Pace has issued an advisory predicting profitability for the 2014 financial year to be ahead of guidance.
pacejul2014The broadcast and pay-TV technology and services provider says that record Q4 revenue has resulted in a strong finish to the year, with full year revenue expected to be $2.610 billion, up 6%, with an operating margin of not less than 9.2%. Pace forecasts adjusted EBITA to be at least $240 million, 24% ahead of 2013's figure.
Even though full official results are not due until March 2015, Pace said that in Q4 2014 it has made further good progress on the execution of its strategic plan. Since the completion of the acquisition of wireless and network infrastructure firm Aurora Networks for a headline consideration of $310 million on 6 January 2014, it has reduced net debt by more than $180 million (65%).
Pace's board has expressed confidence that, through Aurora, potential further acquisitions and the on-going delivery of the strategic plan will further strengthen its position as a market leading solutions provider for the pay-TV and broadband industries. "Pace has performed very well in 2014 with a particularly strong second half to the year," said CEO Mike Pulli commenting on the announcement. "We have launched a record number of products across the globe and continue to lead the market in both product innovation and the service we deliver to our customers. Demand from our customers has remained strong and we continue to win new business."
The statement also revealed a number of key wins and future contracts. Cable giant Liberty Global is currently trialling the advanced Horizon user experience based on Pace-developed set-top boxes (STBs) at UPC Poland, the first RDK-based platform to be deployed by a European cable operator. In addition, long-term customer and cable operator Net Brazil selected Pace to provide next generation high definition STBs, while Australian subscription TV provider Foxtel has approved the iQ3 solution consisting of Pace hardware and Pace Elements software for trial, with the intention to launch in early 2015.