The Kudelski Group, provider of media content protection, has announced its 2019 half year results.
For the first half 2019, the Group generated $400.6 million (€360.9m) total revenues, a six per cent decrease from the previous first half. The Group reduced its first half year operating expenses by $54.8 million compared to the first half 2018. OIBDA ex-restructuring costs was $10 million higher at $29.2 million. Net loss for the period was $20.4 million, which included $13.7 million of restructuring costs.
Digital TV revenues reached $190.5 million, representing a constant currency decline of 12 per cent. The legacy digital TV market continues to contract, as a number of established pay-TV operators report lower subscriber numbers. In addition, the Group did not book any IP licensing revenues in the first half 2019. Digital TV generated $53.6 million of OIBDA net of restructuring costs, representing a $1.6 million improvement from the previous first half.
The Group’s cybersecurity business generated $72.9 million of gross revenues in the first half 2019, a 3.3% decrease from the first half 2018, as the Group actively shifts its business mix from lower margin technology reselling to higher margin advisory services, managed security services and proprietary technology sales. Margin after cost of material relative to net revenues increased from 37.5 per cent in the first half 2018 to 43.4 per cent in this first half. The Cybersecurity segment generated a $-10.7 million OIBDA, representing a $1.5 million improvement from the previous year.
In this first half, IoT generated revenues of $1.2 million, mainly from the IoT Center of Excellence, and an OIBDA of $-11.5 million, reflecting the early development stage of this business.