Restructure puts Kudelski in red

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The Kudelski Group, a provider of media content protection and value-added service technology, has announced its 2018 half year results with a loss for the half year.

In the first half 2018, total revenues and other operating income decreased to $446.1 million (€393.8m) from $497.2 million in the first half 2017. Operating income, before restructuring costs, was at $-2.2 million, compared to $15.4 million in the first half 2017. Overall, the Group generated a $36.5 million net loss from continuing operations in the first half 2018, impacted by $28 million of restructuring costs.

In the first half 2018, revenues in the integrated digital TV (iDTV) segment decreased compared to the first half of the previous year. Reported iDTV revenues decreased by 16.4 per cent to $280 million. The group said its core digital TV business was resilient in advanced economies, while it declined in emerging markets. Due to its exposure to emerging markets, Conax has seen its revenues materially decrease compared to the first half of last year.

Cybersecurity gross profit increased during the first half, driven by growing sales of high value-added solutions, while the resale of third party products was lower than in H1 2017. The shift toward higher margin advisory services, managed security services and proprietary technology sales is an integral part of Kudelski Security’s strategy.

In this first half 2018, revenue contribution from IP licensing was a fraction of the previous half year’s, when the Group completed several licensing transactions.

In the Public Access segment, SKIDATA is experiencing a higher seasonality than in previous years, resulting in first half 2018 revenues substantially at the same level of the previous first half and an operating loss for this reporting period. SKIDATA’s constant currency revenues declined by 3.3 per cent compared to the same period of last year, with revenues of $162.9 million in the first half 2018.


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