OpenTV on track for first full-year profits

OpenTV says it performed well in the third quarter and that the advanced television services company is on track for the full year. The company produced a profit of $1 million (€780,000) in the third quarter, from a $8.2 million loss in 2007, as revenues increased by 14% to $26.9m.

“Our middleware business expanded in several important geographic markets with recent customer wins in Asia-Pacific and Europe, and we continue to invest in the roadmaps for our next-generation middleware and advanced advertising technologies,” said CEO Ben Bennett. “Overall, OpenTV is highly focused on executing its businesses, both strategically as we build on our track record of innovation and leadership in serving the world’s video network operators, and financially as we position the company to deliver its first profitable year in 2008.”

In the United States, OpenTV’s new EclipsePlus campaign management system is gaining acceptance in the cable advertising committee. New deals have been signed with Time Warner Cable and Charter Communications.

In Europe, royalties and licensing from BSkyB continue to make a significant contribution, $3.6 million or 22% of total royalties for the quarter ending September 30, 2008. However, decreased deployments of OpenTV software products by BSkyB led to a fall in revenues of $1.1 million when compared to Q3 2007, but was ahead by $900,000 on the nine-month period.

Deployments by Sky Italia, Numericable and UPC have taken up the slack, the latter increasing its royalty contribution by $2.2 million on the nine months to September 30, 2008.