SmarDTV assets up for sale as Kudelski reports challenging 2017 | Security | News | Rapid TV News
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Facing headwinds in its traditional TV business that have seen profits impacted, as it announced its 2017 yearly results Kudelski Group announced is to make further consolidation to its video offerings.

smartdtv 22aug2017 2As part of the ongoing efforts to streamline core digital TV operations, which saw at the start of 2018 the company fully integrate its Conax division within the main Nagra line of business, the company has now confirmed that it is 'seeking to establish strategic partnerships with set-top box and conditional access module suppliers' that would see the transfer of assets pertaining to the SmarDTV subsidiary which Kudelski bought in 2006 from SCM Microsystems. In anticipation of such a move, SmarDTV's contribution to the yearly results were reported as discontinued operations.

Only six months ago, SmarDTV announced the commercial availability of a new cardless conditional access module product embedding content protection from Kudelski stable mate Conax.

In the fiscal 2017 year, Kudelski announced that transformation and restructuring costs were having material impact on not only current results but would also likely on 2018 figures. Overall it reported revenues and other operating income in 2017 of $1.068 billion and noted that the 7.1% annual increase was driven by cybersecurity and public access performance. Digital TV segment revenues actually increased by 4.2% on an annual basis in 2017, reaching $688.4 million.

Yet it was a bleak picture in terms of profits. Operating income from continuing operations and before restructuring costs shrank 60% to $48.1 million while annual net income imploded in 2017, losing $85.8 million in a year to total $2.7 million.

As it faced these challenges, the Kudelski Group reviewed the geographic distribution of its TV 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 it is hoping to achieved a further $50-70 million over 2018.

Technologically, digital TV will be continuing its own transformation to cloud-based solutions with new deployments planned for 2018. In parallel, the Kudelski group also announced that it was streamlining its DTV solution portfolio, and says it will 'selectively' invest in digital TV solutions to expand its end-to-end offering and address the future needs of the industry.