Kudelski sees pay TV decline take its toll

TV technology outfit Kudelski Group, owner of Nagra, saw its first-half revenues decline as contraction of its legacy pay TV business continues to take its toll, but posted improved operating income and narrowed its net loss.

Kudelski posted revenues of US$400.6 million for the first six months, down from US$437.7 million for the prior year. Operating income before depreciation and amortisation was up from US$19.2 million to US$29.2 million, while the company’s net loss narrowed from US$38 million to US$20.4 million.

Kudelski’s digital TV revenues dropped by 12% to reach US$190.5n million, which the company blamed on the decline in pay TV and its failure to book any IP licensing revenues in the first half.

To keep pace with changes in the digital TV market, Kudelski merged its conditional access solutions and user experience product units into a single DTV product unit in the quarter, focusing on the cloud and IP connectivity.

The group’s cybersecurity division saw its revenues drop by 3.3% in the quarter as it shifted its focus from lower margin technology reselling to higher margin advisory services, managed security services and proprietary technology

The nascent IoT business generated revenues of US$1.2 million, with negative OIBDA of US$11.5 million, which the company said reflected the early stage of the development.

Public access revenues were up by 2.9% driven by strong sales in Europe and America.