Kudelski FY revenues up 7.1%

The Kudelski Group, specialists in digital security, has announced its 2017 annual results. The Group increased its consolidated revenues and other operating income from continuing operations for the year by 7.1 per cent to $1.06 billion (€860m). SmarDTV’s revenues are not included in the reported revenue line as they are classified as discontinued operations. Operating income excluding restructuring costs decreased from $113.5 million to $48.1 million in 2017. After $22.5 million restructuring costs, 2017 operating income was $25.6 million.

iDTV segment revenues increased by 4.2 per cent in 2017, reaching $688.4 million.

Kudelski Security, the Group’s cybersecurity business, more than doubled its revenue contribution in 2017, reflecting the full consolidation of M&S Technologies as of January 2017 and the strong performance of its European operations. M&S Technologies is a Dallas-based cyber and network security provider that extends the Group’s cybersecurity presence into the South-Central region of the United States.

Public Access maintained its strong top line momentum, with revenues growing at two-digit rates to reach $361.3 million, representing 11.7 per cent growth.

In 2017, the Group accelerated its efforts to align its digital TV operations with the new market realities to seize new opportunities more effectively. This transformation involved the streamlining of Digital TV core operations and the full integration of its Conax subsidiary.

The Group also reviewed the geographic distribution of its activities with the goal of consolidating operations into core locations by having each of the Group’s activities focus on specific sites. While restructuring in Switzerland, Norway and USA was completed in 2017, the Group is planning further significant restructuring measures aimed at streamlining operations in other European locations. In 2017 cost reduction of $23.3 million have been already achieved and further $50-70 million will be achieved in 2018, the Company said.

In connection with the ongoing efforts to streamline its core digital TV operations, the Group is seeking to establish strategic partnerships with best-of-breed set-top box and conditional access module suppliers, which comprise the Group’s SmarDTV subsidiary. Such partnerships are likely to encompass a transfer of relevant assets and resources to the selected partners. Hence, SmarDTV’s results are reported as “discontinued operations”.

In parallel, the Group is streamlining its DTV solution portfolio, and selectively invest in digital TV innovative solutions to expand its end-to-end offering and address the future needs of the industry.

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