Pace: 2013 ahead of guidance
Pay-TV and broadband service provider technology provider Pace has announced an unaudited update for the financial year ended December 31st 2013 ahead of preliminary results to be announced on March 4th 2014 which suggests that its Full Year 2013 performance is expected to be ahead of guidance.
Pace reports that:
- Full year revenues expected to be up 2.4 per cent to $2.46 billion (2012: $2.40bn).
- Adjusted EBITA of at least $190 million, 20 per cent ahead of 2012 (2012: $158.1m).
- Underlying operating margin expected to be not less than 7.7 per cent, at least 1.1ppts ahead of 2012 (2012: 6.6 per cent).
- Free cash flow in excess of $200 million (2012: $182.7m).
- Debt repaid in full prior to the end of the financial year (zero debt), cash position in excess of $30 million as at 31 December 2013 (31 December 2012: $163.3m net debt).
Pace says: “The Group has made good progress throughout the year in the execution of our Strategic Plan:
- Leadership in Pay-TV hardware: Pace maintained market leadership positions in Set-top Boxes, Media Servers and Gateways whilst making further progress into previously under-penetrated markets such as cable in Europe and IPTV.
- Widen out into software, services and integrated solutions: Pace built on the momentum of 2012 with a number of key wins and a strong focus on product and customer project delivery for major launches and deployments in 2014.
- Transform core economics: Continued focus on efficiency has delivered further sustainable overhead savings and the transformation and rationalisation of our supply chain was completed, delivering significant benefits in 2013 and beyond.
- In addition, the acquisition of Aurora Networks, which closed on 6 January 2014, is an important step in the evolution of the Company and enhances Pace’s strategy to widen out and build a broader platform from which to drive revenue.”
Commenting on the update, Mike Pulli, CEO, said: “Pace has performed above expectations in 2013. We continue to lead the market in innovation with great products and services, demand from our customers has remained strong and we continue to win new business. The Company has made further good progress in the execution of our Strategic Plan and Pace continues to become a more profitable and cash generative company.
I am excited about the acquisition of Aurora Networks, which will enable Pace to widen out into network infrastructure and build deeper, more embedded relationships with our customers. This will strengthen Pace’s position as a market leading solutions provider for the Pay-TV and broadband industries.
We are confident about our trajectory and are focused on making further progress in 2014.”