Zenterio Reports Second Quarter and Half Year 2016
April – June 2016
- Deployed license base
- The VAS (value added services) enabled license base grew by 24% in the second quarter, adding 648 thousand licenses to an accumulated base of 3,4 million
- Net sales and other operating income increased 108% quarter-on-quarter to SEK 73,4 million (SEK 35,3 million)
- EBITDA in the quarter were SEK 6,2 million (SEK -27,4 million)
- Net result in the quarter was SEK -9,2 million (SEK -36,1 million)
January – June 2016
- Deployed license base
- The VAS (value added services) enabled license base grew by 25% in the first half of 2016, adding 669 thousand licenses to an accumulated base of 3,4 million
- Net sales and other operating income increased 77% year-on-year to SEK 129,7million (SEK 73,3 million)
- EBITDA in the first half were SEK 3,8 million (SEK -46,6 million)
- Net result in the first half was SEK -25,0 million (SEK -63,8 million)
Events after the reporting date
- On July 13, 2016 the company announced a landmark deal with Megacable, Mexico’s largest multiple-system operator (MSO)
- On July 25, 2016, Zenterio announced the sale of its quality assurance and testing company Labatus to Eurofins Scientific.
Comments from Jorgen Nilsson, CEO of Zenterio:
Today I am very pleased and proud to report that Zenterio, for the first time ever, has closed an EBITDA positive quarter. It is something that has been a longstanding goal for the company and something that I personally, since I took over as CEO in April of last year, have been focusing on achieving in parallel with our continued growth. It is the result of the hard work and dedication that has been shown by the entire Zenterio team and it is something that we will continue to build on going forward. It is encouraging to know that these things are possible, it strengthens our confidence and it gives credit and validation to the commercial improvements and the operational excellence program that we started to implement during the fall of 2015.
EBITDA for the second quarter 2016 amounted to SEK 6,2 million compared to SEK -27,4 million the same period last year. EBITDA for the full six month period improved more than SEK 50 million compared to the same period last year, with a positive EBITDA of SEK 3,8 million. These results, together with the successful issuing of convertible bonds of SEK 65 million, and the subsequent offer to participate in a rights issue of approximately SEK 50 million during the second half of 2016, ensures that Zenterio is financially well prepared for further expansion.
However, having achieved this result does not mean that we are satisfied and we are continuing our efforts to build a successful and sustainable business. Part of this is of course to attract new customers by leveraging previous successful projects. During this quarter we secured our biggest win to date in the Latin American market, which we communicated in July, when we signed a deal with Megacable, Mexico’s largest MSO (multiple-system operator), a project that will be managed from our Atlanta office, with support from resources in Linköping.
In addition to this, we are also well under way with our current projects and the second quarter has also seen the delivery of our biggest software release to date, a release that is part of our engagement with the Deutsche Telekom Group. This delivery is yet another milestone for Zenterio and it validates both the quality of our software and our ability to deliver on the scale that is needed when dealing with tier-1 operators. This release also marks the first time where we have pre-integrated an OTT solution into the Zenterio OS, combining the best of both linear TV and Internet TV into one seamless solution that will work across all devices.
Maybe more importantly though, is that all of the above is something that is derived from the dedicated work that we have done to focus on operational excellence in everything we do, in instilling true meaning into our core values and building a corporate culture that is supportive and motivational, and in making sure that we focus on doing the right things. We have also received support from key customers to improve our ways of working for which we are extremely thankful and we appreciate the valuable teamwork that this has inspired.
In addition, we have also been looking over our corporate structure and which assets that make sense to keep in-house, and after the reporting date for this quarter we agreed to the sale of our testing and quality assurance company Labatus to Eurofins Scientific. The transaction was completed in the beginning of Q3 and even though Labatus will no longer be part of Zenterio, we will still continue our close relationship and collaborate both on current and future projects.
Aside from these exciting developments, we are also in the midst of preparing for the IBC event in Amsterdam in September where we will be showcasing the latest version of Zenterio OS, JetUI and our data analytics and advertising solutions, Zenterio Audience and Zenterio Engage.
Last but not least, I want to take the time to thank all of our employees for their hard work, their dedication and their belief in what we do, without them these results would not have been possible. And I would of course also like to thank our customers and partners, our board of directors and our shareholders for their support and their trust in what we do. Together I am convinced that we can make the rest of 2016 just as exciting.
For more information, please contact:
Jorgen Nilsson, CEO
Phone: +46 736 33 34 00
Mattias Arnelund, CFO
Phone: +46 70-789 5812
Zenterio provides an independent OS for interactive TV aimed at creating an industry standard. Zenterio also offers an intuitive multiscreen UI, a powerful Data Analytics solution, Consulting Services and additional Value Added Services to TV operators. Zenterio partners with global system integrators, set-top box suppliers, CA/DRM providers, chip-set manufacturers and services providers. Zenterio has offices in Stockholm, Linköping and Atlanta and is owned by private investors and private equity firm Scope. The Chairman of the Board is former Nokia CEO Mr. Olli-Pekka Kallasvuo and the CEO is former Ericsson executive Mr. Jorgen Nilsson. For more information please visit zenterio.com.