Digital TV segment applies brake on Kudelski financial year | Security | News | Rapid TV News
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Digital security leader The Kudelski Group has seen falling revenues in its fiscal 2018 mainly driven by its digital TV segment which has now been reorganised.

NAGRA NexGuard QuickMark 10Sep2018With the publication of its 2018 financial statements, the Kudelski Group announced that it was now working as four segments: digital TV, cybersecurity, internet of things (IoT) and public access. The new digital TV segment provides secure, open, integrated platforms and applications for broadcast, broadband and mobile networks.

For the fiscal year that ended 31 December 2018, Kudelski reported that its total revenues and other operating income decreased from $1.012 billion at the end of 2017 to $919.7 million over the course of the last twelve months. Group OIBDA ex restructuring costs was $76.0 million, a $6.8 million decrease over the previous year. Overall for the year the Group generated an operating loss of $7.3 million. Operating income ex restructuring costs was at $32.9 million in 2018 compared with $44.3 million in 2017.

Revenues at the digital TV segment showed a $72.1 million net decline even as the Group implemented a restructuring programme resulting in a $74.9 million reduction of recurring digital TV costs. In spite of decreasing revenues, Digital TV delivered OIBDA ex restructuring costs of $111.9 million, reflecting what it said were strong cost controls and the successful completion of the 2018 restructuring programme.

The Group said that over the year in digital TV it had completed most of the restructuring measures related to its French operations in the second half of 2018, including the divestment of SmarDTV operations and the closure of a French R&D site. A further enabler of the 2018 cost reduction was tighter integration of NAGRA and Conax operations.

Looking ahead, Kudelski expects traditional pay-TV business to stabilise in 2019 and that while its revenues would likely continue to decline, the Group expects the pace of the top line regression to start tapering off. It noted that that its recently completed multi-year contract renewals with large pay-TV customers would secure revenues over a period of several years. The Group is also implementing measures to further reduce Digital TV operating expenses.