Kudelski delivers double-digit rev growth in strong first half of 2015



| 20 August 2015

Expanding distribution capabilities in public access and continued optimisation of integrated digital TV (iDTV) activities have led to robust results for media content protection company Kudelski in the first half of 2015.

For the period ended 30 June 2015, the company grew its consolidated revenues and operating income in spite of significant exchange rate volatility by 10.4% and 9.7% respectively. Group revenues and other operating income for the first half increased by CHF24.9 million to CHF425 million. Revenue increases were primarily driven by the 24.2% constant currency growth of the public access segment.

Further underlying its strength in 2015, the company noted that the performance at the same stage of 2014 was boosted by one-time licensing revenues from the Cisco patent licensing agreement.

Core TV market revenues also benefitted from the underlying growth of the core digital TV business, to CHF324.4 million. Operating income for the segment improved by 17.9%, reaching CHF52.6 million. During the last six months Kudelski entered into several new contracts and completed new deployments in Europe, confirming, it said, the role of its NAGRA technology as platform of choice for merged entities.

Indeed pay-TV firm Altice Group confirmed NAGRA's strategic supplier position through a framework agreement allowing Altice to benefit from NAGRA's latest generation of security solution for all types of devices and all types of broadband networks. NUMERICABLE-SFR selected Medialive Secure Player as a multiscreen solution to deliver its TV services across all connected devices. The MediaLive-powered Yomvi by Movistar+ platform was rolled out to Telefónica's existing subscribers, used for live sports events including supporting half a million unique devices for a Real Madrid-Barcelona football match.

In the first half, the group's iDTV units also completed first deployments of next generation technologies including 4K/Ultra HD, video transmission over all-IP fibre networks, dynamic ad insertion (DAI) and Wi-Fi conditional access modules (CAM).

For the full year 2015, the Group expects growing iDTV revenues, as the momentum of this first half is expected to continue in the second half year. Second half iDTV revenues are forecasted to be higher than in the first half.