Zenterio Reports Third Quarter

July – September 2015

-        Deployed license base

  • The VAS (value added services) enabled license base grew by 11% in the third quarter, adding some 195 thousand licenses to an accumulated base of 1.9 million
  • The total license base grew by 7% in the third quarter, adding some 195 thousand licenses to the accumulated base of 3.2 million

-        Net sales and other operating income in the third quarter increased 56% year-on-year to SEK 39.6 million (SEK 25.3 million)

-        EBITDA in the quarter were SEK -11.4 million (SEK -13.5 million), which is an improvement compared to the EBITDA of SEK -27.4 million reported in the second quarter 2015.

  • EBITDA in September were SEK 2 million

-        Net result in the quarter was SEK -22.5 million (SEK -19.7 million)

-        August 28, 2015, Zenterio released the latest version of its independent operating system, Zenterio OS 15.2 in conjunction with its participation at IBC.

January – September 2015

-        Deployed license base

  • The VAS (value added services) enabled license base grew by 31% during the first 9 months, adding some 454 thousand licenses to an accumulated base of 1.9 million
  • The total license base grew by 17% during the first 9 months, adding some 458 thousand licenses to the accumulated base of 3.2 million

-        Net sales and other operating income during the first 9 months increased 120% year-on-year to SEK 112.9 million (SEK 51.3 million)

-        EBITDA during the first 9 months were SEK -58.0 million (SEK -60.4 million)

-        Net result during the first 9 months was SEK -86.3 million (SEK -79.7 million)

Comments from Jörgen Nilsson, CEO of Zenterio:

We are now really getting into exciting times for Zenterio. The third quarter has been about operational excellence and setting key priorities for Zenterio. During the first half of 2015 we reviewed the way we work, what we focus on and how we approach our customers in order to improve in all areas. During the third quarter we have been executing according to this long-term operational growth plan and the organization is now structured to be nimble, agile and resourceful, and at the same time capable of scaling quickly when needed.

I am extremely excited that the changes we have made are already becoming visible in our key performance indicators. Throughout the third quarter our performance moved in the right direction. The last month of the quarter was also the first month in years where Zenterio had a positive EBITDA. This is a very important milestone for the company and shows the significant improvements that we have made. We will continue to build on this success and keep the momentum going into the fourth quarter and beyond. We expect to see a similar seasonal pattern in our annual sales 2015 as we saw last year.

As I indicated in my CEO Comments in the second quarter 2015 report, Zenterio started an engagement with a major new customer during the first half of 2015, but for various reasons we are not yet allowed to disclose the customer name. Having won this strategically important contract with a European tier-1 operator is something that I am extremely proud of and it shows that Zenterio’s value proposition is relevant for both developing and more mature markets. This engagement will in itself contribute significantly to our ability to plan and forecast our business, which will help improve business maturity in general. In addition, it is a lighthouse account that will serve as a very strong reference and will allow us to continue winning volumes in the Mediaroom market and fuel further growth.

The TV industry is changing fast with new dynamics for vendors, operators and customers alike. This environment is creating both opportunities and challenges and we strongly believe Zenterio’s approach; to make operators independent, to reduce cost by extending the lifespan of existing hardware, to enable improved insight of customers usage and to bring new exciting revenue opportunities will position Zenterio as a unique partner for the pay TV operators.

On the Value Added Services (VAS) side, the strategic partnership with AdScribe is well underway. One concrete milestone was announced at IBC in Amsterdam in September where we communicated that the Zenterio OS 15.2 is now supporting one-way advertising. Also, display and interactive advertising campaigns can now be created and managed using the AdScribe Advertising Management System and be delivered via a data carousel. This enables TV operators using one-way, broadcast-only set-top boxes without an IP return channel to create new revenue streams through advertising.

All in all, we will strive to offer harmonization, de-coupling and independence, as well as opportunities to monetize the customer data that the operators have unique access to.

Finally I want to thank all the employees at Zenterio and at our subsidiaries, as well as at our key partners, for their passion and their contribution to this quarter's result and to our continuous improvement.

For more information, please contact:
Jörgen Nilsson; CEO                                                                                                                                                    
Email: jorgen.nilsson@zenterio.com                                                                            
Phone: +46 736 33 34 00                                                                                                         

Mattias Arnelund; CFO
Email: mattias.arnelund@zenterio.com
Phone: +46 70-789 5812

About Zenterio
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 (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. Visit zenterio.com

About Zenterio OS
Zenterio’s operating system works with most types of hardware available on the market. For TV operators, Zenterio's software enables fast harmonization of operators’ fragmented software bases, and it can be used on new and already deployed hardware. With a harmonized solution, operators can quickly and cost-effectively deliver new interactive services to end customers. Besides unrivalled hardware support, Zenterio's software offers market-leading performance and a flexible way to add new features. For system integrators, Zenterio's products facilitate uniform support for their new solutions that enable TV operators’ interactive services. For TV viewers, this means improved experiences, an increased range of services, and greater access to new applications.