Zenterio Reports Fourth Quarter and Full Year 2015
January – December 2015
- Deployed license base
- The VAS (value added services) enabled license base grew by 83% during 2015, adding 1.2 million licenses to an accumulated base of 2.7 million
- The total license base grew by 45% during 2015, adding 1.2 million licenses to the accumulated base of 4.0 million
- Net sales and other operating income increased 115% year-on-year to SEK 172.8 million (SEK 80.3 million)
- EBITDA during 2015 were SEK -61.5 million (SEK -78.4 million)
- Strong financial improvement during 2015 with EBITDA SEK -47 million the first half of 2015, improving to SEK -15 million the second half of 2015
- Net result during 2015 was SEK -100.0 million (SEK -105.4 million)
October – December 2015
- Deployed license base
- The VAS (value added services) enabled license base grew by 40% in the fourth quarter, adding 0.8 million licenses to an accumulated base of 2.7 million
- The total license base grew by 24% in the fourth quarter, adding 0.8 million licenses to an accumulated base of 4.0 million
- Net sales and other operating income increased 90% year-on-year to SEK 59.9 million (SEK 31.5 million)
- Q4 demonstrated 60% growth compared to average revenue Q1-Q3 2015
- EBITDA in the quarter were SEK -3.5 million (SEK -18.0 million)
- EBITDA in December were SEK 3.2 million
- Net result in the quarter was SEK -13.8 million (SEK -25.7 million)
- In December Zenterio won a break through contract with one of the largest tier-1 operators in Europe
Comments from Jörgen Nilsson, CEO of Zenterio:
The transformation taking place over the last few years, with the consumers’ new viewing habits at its center, has put dramatic pressure on all participants in the TV industry. The increased competition in the market, driven by the consumers’ preferences for TV everywhere and new OTT subscription models, forces broadcasters, networks and operators to adapt, change and realize the importance of getting to know their customers even better.
Of course, the competition is still fierce and the play field is changing but this shift in the TV industry also offers fantastic opportunities for those who are ready to embrace these changes. By leveraging consumer data and getting better insights into what consumers really want, the different players can develop new offerings and business models that meet this demand.
As technological advancement, the standardization of the TV client OS and data capture and analytics are the fundamental enablers for achieving this transformation, Zenterio’s offering becomes increasingly relevant. Our approach makes operators more independent when selecting hardware vendors, generating substantial cost-savings and reducing complexity. In addition to that, we both capture and help operators translate consumer data into valuable insights, allowing them to create their own OTT propositions as well as other new revenue opportunities.
Zenterio’s updated product portfolio encompasses an independent TV client OS, a state of the art user interface, powerful data capture and data analytics tools as well as an interactive advertisement management system. To complement these offerings, and to position Zenterio as an end-to-end solutions provider, we have created Zenterio Services, a dedicated service and consulting company. Zenterio Services will provide expertize within system integration, tech consultancy, user experience design, device design as well as application development and product life-cycle support.
Altogether this means that Zenterio is well positioned to deliver first-class, future-proof solutions to large TV operators and Telcos branching out into the TV industry. And as we have mentioned earlier, we are already working with one of the largest tier-1 operators in Europe. The advanced implementation is currently underway and together we are creating one of the most modern TV infrastructures in the world, including an integrated OTT solution. The implementation will give us a compelling reference case and support us in attract additional Tier-1 operators in the future.
Our license base, as well as our revenues, grew significantly in the fourth quarter. At year-end, we passed 4 million licenses, which is an increase of 1.2 million over the last year. The part of the installed license base with the ability to run our value-added services increased to 2.7 million licenses. In addition, our revenues increased by 115 percent to 173 MSEK during 2015 and our financial performance improved, which is demonstrated by a number of months delivering a positive EBITDA towards the end of 2015.
We still have much to do, but we are very proud of what we have accomplished so far, and these figures exceeded the guidance we shared in our third quarter report. In addition, our estimate for 2016 is an increasing growth rate even though we expect to see the same pattern as in 2015, meaning that the large bulk of licenses will be added in the later part of the year.
As mentioned in our previous report we have worked hard on reorganizing the company to be able to both grow and become profitable. This is of course an ongoing process, but we have taken several important steps and we are now structured to be more effective, more agile and more focused than ever on delivering operational excellence.
Aside from increasing our own direct sales, we also maintain a few strong partners in order to promote integrated end-to-end solutions and we see interesting opportunities developing in both areas during 2016. In addition to our partnerships around new business, we have also strengthened our cooperation with a few select partners when it comes to outsourcing additional work, as to not be limited by in-house resources.
Currently, we are also in the midst of a refinancing process where we are evaluating a number of strategic options. And even though we can’t disclose any details yet, we feel confident in finding the right long-term solution for the company, and our plan is to close this process before the summer. This will give us more options when scaling our business to the next level.
Finally I want to take the opportunity to thank all employees for their passion and for going the extra mile, our key customers and partners for their trust in us, and finally our board and share-holders for their strong support. Together we are well on our way to what we believe will be a very successful year to come.
For more information, please contact:
Jörgen Nilsson; CEO
Phone: +46 736 33 34 00
Mattias Arnelund; CFO
Phone: +46 70-789 5812
Zenterio provides Zenterio OS, an independent software platform for interactive TV that is positioned to become a global standard. Zenterio also offers consulting services and a value added service offering to pay TV operators. Zenterio partners with global system integrators, set-top box suppliers, CA/DRM providers, chipset manufacturers and providers of interactive services. Zenterio has more than 200 employees comprising 25 nationalities. Zenterio has offices in Stockholm, Linköping and Atlanta. Zenterio is owned by private investors and private equity firm Scope. The chairman of the board is former Nokia CEO Mr. Olli-Pekka Kallasvuo. For more information please visit zenterio.com. Zenterio’s operating system works with most types of hardware available on the market.
About Zenterio OS
Zenterio’s operating system works with most types of hardware available on the market. Zenterio makes operators more independent, help harmonize their software and create new revenue opportunities. With a harmonized solution, operators can quickly and cost-effectively deliver new interactive services to end consumers. Besides unrivalled hardware support, Zenterio's software offers market-leading performance and a flexible way to add new features. For system integrators, Zenterio OS is a key component in providing new interactive services for TV operators. For the viewers, this means an improved user experience, an increased range of services and greater access to new applications.