Sony Pixel Power calrec Sony

2024 HALF YEAR RESULTS

22/08/2024

Cheseaux-sur-Lausanne, Switzerland and Phoenix (AZ), USA - August 22nd, 2024 - The Kudelski Group (SIX: KUD.S), the world leader in digital security, announced today its results for the first half of 2024.

The first half of 2024 marks a significant shift in the Groups activities with the expected sale of SKIDATA. This transaction fundamentally changes the scope of the Groups operations, with SKIDATA now presented as discontinued operations in the financial statements. The sale, based on an enterprise value of EUR 340 million, is expected to generate net cash of over EUR 300 million after settling SKIDATA loans of around EUR 30 million and accounting for transaction costs and other adjustments.

The proceeds of this transaction will be used by the Group to repay its outstanding CHF 145.9 million bond and all remaining bank debt, resulting in a net cash position close to USD 100 million. The transaction remains subject to regulatory approval and customary closing conditions, and while the closing is anticipated prior to the bonds maturity date, the Group has secured a CHF 150 million credit line from Farallon as a contingency measure.

Following this divestiture, the Group will consist of three business segments - Digital Television, Cybersecurity and Internet of Things. During the first half of 2024, the Digital Television segment faced headwinds, experiencing a decline in revenue and margins after cost of material, which resulted in diminished profitability. In Cybersecurity, top line growth remained modest as the focus shifted towards improving its gross margin to minimize segment losses and approach the break-even point. Meanwhile, the Internet of Things segment maintained strong momentum with solid growth, albeit with increased EBITDA losses due to accelerated investments.

In the first half of 2024, the Groups net revenues remained relatively stable, showing a slight increase of 0.4% to USD 192.0 million. Other operating income increased by USD 2.5 million to reach USD 6.1 million.

DIGITAL TELEVISION: INCREASING OUR MARKET REACH WHILE FOCUSING ON CUSTOMER ENGAGEMENT

Digital Television revenues declined by 7.4% to USD 109.8 million in the first half of 2024. Digital Television margins after cost of material decreased from 94.1% to 89.5%, reflecting a revenue mix that included more CAMs and hardware than in the previous first half. Operating expenses in the Digital Television segment were USD 2.4 million lower compared to last year, mainly due to headcount reductions driven by lower business volumes. This segment's operating expenses include USD 4.5 million of restructuring costs. Digital Television generated USD 3.8 million of EBITDA (USD 8.3 million net of restructuring costs), compared to USD 14.7 million in the first half of 2023.

In an environment characterized by piracy concerns, cybersecurity risks and rapidly advancing AI solutions, Nagravision focused efforts on the promotion of solutions such as Active Streaming Protection, which addresses security vulnerabilities in OTT streaming, NAGRA Scout, which safeguards consumers from cyber threats to smart homes, and OpenTV Platform, which creates consumer value through a user-centric optimized streaming experience. NAGRA Insight Negotiation Agent, Nagravision's autonomous customer care agent powered by controlled generative AI and digital twin technology, is also drawing interest from major telecommunications operators who are looking to reduce churn and optimize revenue.

In a challenging market, the Digital Television division has demonstrated its continuing capability to extend existing partnerships and won new contracts with operators and institutions worldwide during first half of the year:

Nagra Sport and the European Broadcasting Union (EBU) partnered to launch Eurovision Sport, a new worldwide direct-to-consumer sports streaming service providing free-to-air access to major sporting events;

India's GTPL Hathway Limited launched linear television content on connected TVs through TVKey Cloud, a joint solution developed by Nagravision and Samsung;

Nagravision and content distributor Eluvio extended their collaboration with the industry-first integration of forensic watermarking for live streaming of sports and live events;

In Poland, Deutsche Telekom Polska selected Nagravision for its OTT ASP/multi-DRM service;

Switzerland's leading telecom operator Swisscom chose Nagravision's anti-piracy services for its Pay-TV offerings;

In India, sports broadcaster and aggregator Fancode implemented Nagravision's multi-DRM and watermarking solutions for its service; and

Entel, the largest telecommunications company operating in Chile and Peru, has selected Nagravision's OpenTV Platform for its OTT service.

CYBERSECURITY: ACCELERATING TRANSFORMATION AND GROWTH WITH DIFFERENTIATED SERVICES AND STRONG PERFORMANCE

The Group's Cybersecurity segment continues its path towards scalability and profitable growth. In the first half 2024, net revenues remained stable at USD 58.6 million compared to the first half of 2023. The managed security business maintained its impressive growth trajectory, with revenues increasing by USD 4.1 million to reach USD 28.5 million in the first half of the year. Segment margins after cost of material persistently improved over the last year, rising from 66.4% to 71.7%. In absolute terms, margins after cost of material increased by 7.9% to reach USD 42.0 million. The business reduced its operating loss before depreciation and amortization by 59.3% to USD 2.7 million from USD 6.7 million in the first half 2023.

A major highlight of the first half of 2024 was the successful market launch of Kudelski Security's new service, MDR ONE Resolute, in December 2023. The service has already been adopted by over 50 clients, demonstrating strong market demand and reinforcing Kudel
LINK: https://dtv.nagra.com/2024-half-year-results...
See more stories from nagra

More from Nagra Media Uk Ltd

01/10/2024

The Future of Consumer Cybersecurity at IBC 2024: Key Insights and Exciting Takeaways

This year's IBC 2024 was an incredible opportunity to connect with industry ...

11/09/2024

All On' In Las Vegas: Kicking Off 2024 at CES

In our latest blog, Tim Pearson reflects on CES 2024 where AI was omnipresent, innovation abounded, and conversations focused on creative solutions to address e...

11/09/2024

Navigating the Future: Humanizing AI and Connecting Everything Insights from MWC 2024

In our latest blog, Tim Pearson reflects on a busy Mobile World Congress that wa...

27/08/2024

NAGRA set to Secure Your Future. Secure Your Vision' at IBC 2024

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - August 27, 2024 - NAGRA, a Kudelski Group (SIX:KUD.S) company and one of the worlds leading independ...

22/08/2024

2024 HALF YEAR RESULTS

Cheseaux-sur-Lausanne, Switzerland and Phoenix (AZ), USA - August 22nd, 2024 - The Kudelski Group (SIX: KUD.S), the world leader in digital security, announced ...

22/07/2024

The Kudelski Group signs agreement to sell SKIDATA to ASSA ABLOY

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - July 22nd 2024 - The Kudelski Group (SIX:KUD.S), the world leader in digital security, announced tod...

16/07/2024

David Chtrit appointed as CEO of Kudelski Security

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - July 16th 2024 - The Kudelski Group (SIX:KUD.S), the world leader in digital security, today announc...

03/07/2024

Kudelski secures a CHF 150 million credit facility from Farallon Capital Europe LLP

Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland a...

18/06/2024

COMBAT CONTENT PIRACY WITH CONFIDENCE: KICKSTART YOUR SECURITY STRATEGY WITH NAGRA MULTI-DRM

Learn valuable insights into strengthening your content protection strategy and ...

14/06/2024

Generative AI: Friend or Foe of the Media & Entertainment Industry?

In our latest blog Tim Pearson considers Generative AI and the opportunities it presents as well as some of the challenges it can cause for media, entertainment...

08/05/2024

NAGRA and Adobe's Frame.io Win NAB Product of the Year for Solution That Protects Pre-release Content Against Piracy

Cheseaux-sur-Lausanne, Switzerland and Phoenix, (AZ), USA -7 May, 2024 - NAGRA, ...

30/04/2024

Highlights from NAB 2024: Safeguarding content value and authenticity - and an NAB Product of the Year Award!

With a focus on safeguarding premium content value and authenticity, NAGRA highl...

19/04/2024

2024 ANNUAL GENERAL MEETING OF KUDELSKI SA

Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland - April 19, 2024 - The Annual General Meeting of Kudelski SA (SIX:KUD.S) was held...

13/04/2024

STRENGTHEN YOUR CONTENT PROTECTION STRATEGY BEYOND DRM: A HOLISTIC APPROACH

In our latest blog, gain insights into the media industry's challenges and how NAGRA Active Streaming Protection provides a framework for holistic content p...

10/04/2024

NAGRA at NAB 2024: Safeguarding premium content value from production to consumption, uncovering deep fakes, and more.

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - April 9, 2024 - NAGR...

27/03/2024

2023 Annual Report Publication

Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA, March 27 2024 - The Kudelski Group has published its 2023...

15/03/2024

Navigating the Future: Humanizing AI and Connecting Everything - Insights from MWC 2024

This year's annual telecoms jamboree in Barcelona attracted a record breakin...

22/02/2024

2023 ANNUAL RESULTS

Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland and Phoenix (AZ), USA - February 22nd, 2024 - The Kudelski Group (SIX: KUD.S), th...

06/02/2024

NAGRA SPORT AND THE EUROPEAN BROADCASTING UNION (EBU) PARTNER TO LAUNCH EUROVISION SPORT

Cheseaux-sur-Lausanne, Switzerland, and Grand-Saconnex, Switzerland - February 6...

19/01/2024

'ALL ON' IN LAS VEGAS: KICKING OFF 2024 AT CES

As new year celebrations faded, it was time to head for Las Vegas. Providing an interesting juxtaposition of tourists enjoying the delights of the strip, inter...

19/01/2024

FUTURE OF THE SMART HOME: WHY PRIVACY AND DATA SECURITY ARE KEY

Get exclusive insights from industry leaders at CES 2024 and the pulse of consumer concerns about privacy and security in the connected home space, with key sta...

07/01/2024

The Kudelski Group at CES 2024: Secure Your Lifestyle, Connect Your World

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - January 7, 2024 - At CES 2024, the Kudelski Group (SIX:KUD.S), the world leader in digital security,...

09/10/2023

APOS 2023: A Blueprint for APAC's Media & Entertainment Industry

In our latest blog, Olivier Biot reflects on the recent APOS event in Bali and how the APAC M&E industry is planning to navigate the disruption. This year'...

28/09/2023

Despite the Storm Clouds, IBC 2023 Had Energy, Direction and Pace

In our latest blog, Tim Pearson reflects on IBC 2023 and how NAGRA helped visitors to its booth plot a course and navigate the disruption. There seemed to be m...

20/09/2023

NAGRA Receives Industry Recognition for Content Protection Innovation at IBC 2023

Cheseaux-sur-Lausanne, Switzerland, and Phoenix USA - Sept. 20, 2023 - NAGRA, a ...

15/09/2023

NAGRA Launches Multi-DRM Service on AWS Marketplace

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - September 15, 2023 - NAGRA, a Kudelski Group (SIX:KUD.S) company and one of the worlds leading indep...

14/09/2023

Sony's Ci Media Cloud Enhances Service Offering with NAGRA, Securing Content Throughout Review and Collaboration Workflows

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - September 14, 2023 -...

14/09/2023

Dubbing Brothers Secure New Post-Production Distribution Service with NAGRA

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - September 14, 2023 - NAGRA, a Kudelski Group (SIX:KUD.S) company and the worlds leading independent ...

13/09/2023

4iG secures NAGRA to launch new multi-network, super-aggregated entertainment service to rapidly transform Hungarian market

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - Sept. 13, 2023 - NAG...

12/09/2023

NAGRA Enhances Content Protection for Adobe's Frame.io

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - September 12, 2023 - NAGRA, a Kudelski Group (SIX:KUD.S) company and the worlds leading independent ...

08/09/2023

Chaos on the Court: Navigating Disruption in the Media and Entertainment Industry

In our latest blog, Rafael Rivera shares thoughts on the importance of creating ...

29/08/2023

NAGRA and 2G Digital Post Enable Secure Auto AI-based Content Fulfilment and Localization Service for Content Owners

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - August 29, 2023 - NA...

26/08/2023

The Enemy Within - The Impact of CDN Piracy

In our latest blog, Tim Pearson looks at the much-discussed topic of CDN content piracy and discusses what to watch for, the impact it can cause and how the ris...

25/08/2023

La nueva Economa de la Televisin de Pago: Una industria en cambio y la necesidad de desbloquear nuevo capital

A medida que las Telcos de todo el mundo atraviesan diferentes fases de transfor...

24/08/2023

2023 HALF YEAR RESULTS

Ad hoc announcement pursuant to Art. 53 LR Highlights: Total Group revenues and OOI increased to USD 339.9 million, from USD 333.4 million in the first half 2...

24/08/2023

Finacity Facilitates USD 50 million Receivables Securitization for Kudelski S.A.

Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland, Phoenix (AZ), USA, and Stamford (CT), USA- August 24, 2023 - Finacity Corporatio...

22/08/2023

NAGRA Leads Industry to Navigate the Disruption' at IBC 2023

Cheseaux-sur-Lausanne, Switzerland and Phoenix, (AZ), USA - August 22, 2023 - NAGRA, a Kudelski Group (SIX:KUD.S) company and the worlds leading independent pr...

08/08/2023

Protecting Content Across the Production and Post-Production Multiverse

Unbelievably, the summer vacation season is already nearing an end here in the United States. School is back in session already, which means early morning drop...

02/08/2023

Tiv Srl Extends Service Lineup to Bring Customers NAGRA Secured DAZN Sports Content

Cheseaux-sur-Lausanne, Switzerland and Phoenix, (AZ), USA - August 2, 2023 - NAG...

20/07/2023

AI: The Next Big M&E Creative Adventure Or A Fast-Approaching Security Headache?

Summer evenings in London are rarely without some form of red carpet event that draws both the crowds and the press - such as the recent premiere of Oppenheimer...

18/07/2023

Telefonica Global Accelerates Fight Against Piracy to Protect Content Investments

Cheseaux-sur-Lausanne, Switzerland and Phoenix, (AZ), USA - July 18, 2023 - NAGR...

19/06/2023

Claro Colombia Leverages Direct-To-TV Solution to Expand Claro tv+ Service Reach and Lower Subscriber Acquisition Costs

Cheseaux-sur-Lausanne, Switzerland and Phoenix, (AZ), USA - June 19, 2023 - NAGR...

15/06/2023

New Economics of Pay-TV: An Industry In Change And the Need to Unlock New Capital

As Telcos worldwide go through different phases of digital transformation, one o...

15/06/2023

New Economics of Pay-TV: Why Fit-for-Purpose Security is Essential for Streaming Services.

When the first cardless solution was introduced to the market over a decade ago,...

14/06/2023

Dentro de la mente de un pirata - Parte 1: Por qu dedicarse a la piratera?

Hace poco me tom una cerveza en el Llandoger Trow de Bristol. Cuenta la leyenda que el pub fue la fuente de inspiraci n de Robert Louis Stevenson para crear al...

14/06/2023

Dentro de la mente de un pirata - Parte 2: Cmo funciona el ecosistema pirata

Si le ste la primera parte de esta serie de blogs, sabr que NAGRA entrevist recientemente a un pirata para conocer de primera mano las motivaciones, m todos y...