Pirelli buy pays off for ADB
February 23, 2011
Advanced Digital Broadcast (ADB) has reported the Group’s unaudited consolidated financial results for the full year 2010. Full year revenue reached $356.6 million, to which the newly acquired broadband business (Pirelli Broadband Solutions, renamed as “ADB Broadband”, or “ADBB”) contributed $20 million. It has been consolidated with the ADB Group core business for the month of December 2010 only.
Andrew Rybicki, Chairman and Group CEO, commented: “The acquisition of Pirelli Broadband Solutions has been a significant milestone and a major achievement in our corporate life. Not only have we acquired a well-run, around $150 million, profit-generating European company, whose products and customer base will significantly enhance the Group’s business, but we also conducted it using our in-house resources alone, and as a non-dilutive transaction to the shareholders. In short, this acquisition is a clear benefit to our shareholders and a super-charged booster to our business. I therefore consider the slight decrease of our 2010 revenue less important, as the acquisition of PBS will bring it up to around 40 per cent in 2011.”
Group profits were $12.9m down from $15.25 in 2009, partly on due to the Pirelli integration costs. The Group closed the year with the net cash position of $31.6 million. The main uses of the cash during the year have been the acquisition, the distribution of a first dividend to the shareholders, the share buyback, the continued investments into new product platforms and the deliberate accumulation of inventory to mitigate component shortages.
ADB says that its convergence strategy is paying off with nine customers now opting for the technology provider’s Carbo interface. The cable division remains the group’s largest business segment, contributing 35% of revenue.
IPTV grew its share of the business from 19 per cent in 2009 to 26 per cent in 2010. Satellite business continued at the same level as last year, accounting for 29 per cent of the Group revenue as in 2009.