Sony Pixel Power calrec Sony

Kudelski Group Annual Results 2019

27/02/2020

HIGHLIGHTS:

USD 827.3 million total revenues and other operating income, with EBITDA of USD 81.4 million ex restructuring costs

In-depth transformation of Group operations enabling future cross-segment synergies, and delivering USD 56.8 million total reduction of Group recurring operating expenses in 2019

Good resilience of Digital TV in mature markets, further portfolio optimization, extension of key customer relationships and deployment of cloud security platforms

Shift of Cybersecurity business to high margin activities and 30% year-on-year growth in EMEA region, particularly in Germany and France

Growing recognition for the Group's offering in IoT, initial launches completed both on-premise and on leading cloud platforms, including AWS and Azure

Completed first set of restructuring measures and launching further transformation program in Public Access

Outlook for 2020: EBITDA between USD 70 and 90 million and positive net income

Proposing a cash distribution (dividend) of CHF 0.10 per bearer share

Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA - February 27, 2020 - The Kudelski Group (SIX: KUD.S), the world leader in digital security, announced today its 2019 annual results.

In 2019, total revenues and other operating income decreased from USD 919.7 million to USD 827.3 million. This evolution was mainly driven by the Digital TV segment, which posted a USD 61.3 million decline, reflecting the trend seen in emerging markets. In the Public Access segment, European sales increased by 8.8% in constant currency, while in the Americas, sales decreased 16.5% compared to the previous year. Cybersecurity revenues shifted from lower margin technology reselling to higher margin advisory services, managed security services and proprietary technology sales. IoT generated marginal revenues as the segment's primary focus continues to be the development of a secure IoT platform solution for the market.

Overall, the Group reduced 2019 operating expenses by USD 81.7 million, including USD 56.8 million of cost savings achieved with the ongoing restructuring program, net of the cost of additional investments in the Group's key growth areas. Group EBITDA, excluding restructuring costs, was USD 81.4 million, a USD 5.5 million increase over the previous year.

The Group booked a USD 38.6 million net loss for 2019, including a total of USD 45.0 million of one-off costs from restructuring and from the tax effect of such restructuring measures.

In 2019, the Group generated USD 34.2 million of cash flow from operating activities, compared with a USD -4.7 million in 2018. Cash generation significantly improved in the second half to USD 36.2 million compared to a first-half operating cash flow of USD -2.0 million. The main driver of the year-on-year improvement is the reduction of trade accounts receivable, which generated USD 58.8 million of cash in 2019.

IN-DEPTH TRANSFORMATION OF GROUP OPERATIONS

The Group continued the transformation of its Digital TV organization to further enhance its operational efficiency, lay the foundation for future growth and consolidate its position as a world leader in this sector. Several key structural changes were made to the organization, including the merger of product units into a consolidated entity to deliver a more coherent offering to the market. In June 2019, the Group appointed Nancy Goldberg as Executive Vice President and Chief Marketing Officer, DTV, succeeding Pierre Roy.

The Group united its security brands for the first time at the 2020 CES, demonstrating the compelling value proposition of its end-to-end digital security ecosystem, which spans content protection, IoT and cybersecurity and leverages the strong synergies between Group entities.

The Group initiated a turnaround plan for SKIDATA in July 2019 and appointed David Luken as the new CEO of SKIDATA, with the objective of improving both cash flow generation and profitability.

The Group completed an in-depth review of SKIDATA's operations, defining a blueprint for operating improvements aimed at building an optimized operating model. A first wave of measures was completed with a focus on SKIDATA's US operations, including, in particular, the merger of formerly independent entities, the introduction of Group ERP and supply chain tools, a clean-up of the project portfolio, and the integration and streamlining of critical functions. To accelerate the implementation of its restructuring plan, the Group also replaced SKIDATA's General Manager for the US.

During 2019, Kudelski Security executed several operational changes in order to better enable the implementation of its growth strategy. Such changes include the regional alignment of management and resources for closer client relationship and support, the increased focus on the development of high added value products and increased collaboration with other Kudelski Group business entities. In August 2019, Andrew Howard was appointed as CEO of Kudelski Security.

DIGITAL TV: OPTIMIZATION OF PORTFOLIO AND EXTENSION OF KEY CUSTOMER RELATIONSHIPS

The digital TV market continues to contract, mainly in emerging markets, as a number of established pay TV operators report lower subscriber numbers. However, excluding restructuring costs, the Group's Digital TV segment generated an EBITDA of USD 114.4 million, representing a USD 2.5 million improvement from the previous year. This segment's profitability benefits from the improvement of productivity enabled by the transformation and the reduction of operating expenses driven by the Group's restructuring program.

In 2019, the Group continued to strengthen its partnerships with market-leading operators, especially in developed markets. Among the highlights:

Altice USA and the Kudelski Group expanded their partnership for both Media & Enterprise security by su
LINK: https://dtv.nagra.com/kudelski-group-annual-results-2019...
See more stories from nagra

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

01/09/2026

IBC 2026: Bridge Technologies Adds Blackmagic IP10 Support to VB440 Production Probe

Bridge Technologies will announce at IBC2026 (Booth 1.A71) that its VB440 produc...

01/09/2026

DAZN to Acquire EverPass Media to Expand U.S. Commercial Venue Distribution

DAZN has announced an agreement to acquire EverPass Media, a commercial sports distribution platform serving bars, restaurants, hotels, and other venues in the ...

01/09/2026

Kalshi Named Official Prediction Market Partner of the US Open

The USTA and Kalshi have announced a multi-year partnership making Kalshi the Official Prediction Market Partner of the US Open, beginning with the 2026 US Open...

01/09/2026

IBC 2026: MASV to Showcase Sports Video Transfer Workflows

MASV will exhibit at IBC2026 (Booth 5.B40, RAI Amsterdam, September 11-14). CTO Majed Alhajry will appear on a panel session, A Tale of Two Feeds: Automation o...

01/09/2026

IBC 2026: FingerWorks Telestrators Partners with Broadcast Rental for European Distribution

FingerWorks Telestrators has announced a partnership with Broadcast Rental to ex...

01/09/2026

IBC 2026: FOR-A Expands viztrick AiDi into Two Dedicated Products

FOR-A has announced the expansion of viztrick AiDi into two dedicated products: Go Vertical! AiDi and AiDi Sports Hub. Developed by Nippon TV and delivered glob...

01/09/2026

Sony Launches Live TV on PS5 with Free Ad-Supported Streaming in the U.S.

Sony Pictures Television has launched Live TV on PS5, a free ad-supported streaming experience available to PS5 players in the United States. The service is acc...

01/09/2026

Friedrichstadt-Palast Installs Riedel Production Infrastructure

Friedrichstadt-Palast in Berlin has installed a Riedel production infrastructure spanning video, intercom, control, and I/O across the venue, implemented in col...

01/09/2026

IBC 2026: Arkona Partners with BFE for Arkona-Branded Control Panels

Arkona technologies GmbH has announced an OEM partnership with BFE Studio und Medien Systeme GmbH to offer arkona-branded control panels for its SDI-IP routing ...

01/09/2026

Cricket Australia Launches Cricket TV Streaming Service on Eluvio Platform

Cricket Australia has launched Cricket TV, a direct-to-consumer streaming service built on Eluvio's Content Fabric platform. The service is currently in ear...

01/09/2026

Eluvio Selected to Power Pasifika+ Streaming Service for Pacific Island Communities

Eluvio has announced it was selected to power Pasifika , a new direct-to-consume...

01/09/2026

Layercake Names Jon Marquard as Director/Chairperson

Layercake, the company behind the intelligent media workflow platform Streamcake, has appointed Jon Marquard as Director and Chairperson. The appointment marks ...

01/09/2026

Gravity Media Extends Powercor Stawell Gift Broadcast Agreement Through 2031

Gravity Media has announced a multi-year renewal of its agreement with Stawell Gift Event Management to produce the complete broadcast of the Powercor Stawell G...

01/09/2026

IBC 2026: Beam Dynamics Makes Debut with License Intelligence Module

Beam Dynamics will exhibit at IBC2026 for the first time (Stand 14.FT29, Hall 14), introducing License Intelligence, a new module for managing software licenses...

01/09/2026

ZOO Digital Selects Interra Systems BATON for File-Based Quality Control

Interra Systems has announced that ZOO Digital has selected BATON for file-based quality control across its media workflows. ZOO Digital delivers localized ente...

01/09/2026

IBC 2026: Bridge Technologies Deploys VB330 Monitoring at Sunrise

Bridge Technologies has announced the deployment of its VB330 monitoring probe at Sunrise, supporting the Swiss telecommunications provider's IP-based telev...

01/09/2026

Riedel Expands Coach Communications Partnership with Scottish Rugby Union

Riedel Communications has announced the continued expansion of its managed coach communications partnership with Scottish Rugby Union, now entering its third se...

01/09/2026

Behind The Mic: Football Season Approaches, as Networks Name On Air Talent for NFL, College Broadcasts

Behind The Mic provides a roundup of recent news regarding on-air talent, includ...

01/09/2026

IBC 2026: SMPTE Brings Full-Day Software-Defined Infrastructure Roadshow

SMPTE today detailed the centerpiece of its IBC2026 program: the SMPTE Roadshow: Future of Media Infrastructure, a full-day workshop on Monday, 14 September, th...

01/09/2026

Sound Particles & SOS Webinar: John Warhurst

Inside the Music and Sound of Michael Sound Particles have announced an upcoming webinar with John Warhurst, the Academy Award- and BAFTA-winning supervisin...

01/09/2026

Roland launch FP-40 piano & Piano Sphere app

Piano offers tutorials, lessons & feedback via app Roland have just launched a new digital piano that integrates with a mobile app in an effort to encourage...

01/09/2026

Trinnov Nova goes immersive

Update introduces 7.1.4 support via Dante Trinnov have just announced a software update that will allow Nova units with eight licensed Optimizer channels to...

01/09/2026

SBS secures exclusive rights to FIFA World Cup 2030

SBS secures exclusive rights to FIFA World Cup 2030 1 September, 2026 Media releases Major sports rights deal ensures all Australians will be able to view...

01/09/2026

SBS announces the launch of outcomes-based measurement across its network

SBS announces the launch of outcomes-based measurement across its network 1 September, 2026 Media releases New offer sees national broadcaster put outcomes...

01/09/2026

Revealed: The Booster Economy' how $140bn+ in everyday inheritances' is funding the lifestyles of the next generation

Revealed: The Booster Economy' how $140bn+ in everyday inheritances'...

01/09/2026

SBS census explorer to provide new insights into contemporary Australia

SBS census explorer to provide new insights into contemporary Australia 1 September, 2026 Media releases The 2026 Census Explorer will give marketers new i...

01/09/2026

SBS and oOh!media launch exclusive SBS News content partnership across office, airports and universities

SBS and oOh!media launch exclusive SBS News content partnership across office, a...

01/09/2026

SBS offers marketers greater reach with extension into outdoor, creator economy and retail

SBS offers marketers greater reach with extension into outdoor, creator economy ...

01/09/2026

SBS and The Guardian join forces to supersize sustainability challenge for 2027

SBS and The Guardian join forces to supersize sustainability challenge for 2027 1 September, 2026 Media releases SBS Media and Guardian Australia have join...

01/09/2026

SBS goes deeper in 2027 with provocative Australian documentaries, star-studded global drama, and unmissable events

SBS goes deeper in 2027 with provocative Australian documentaries, star-studded ...

01/09/2026

Amazon MGM Studios commission thriller based on Stephen King short story, Crouch End

Amazon MGM Studios have commissioned a new thrilling 6-part drama, Crouch End, b...

01/09/2026

Nielsen Announces New Local Methodology Enhancements

New York August 31, 2026 Nielsen is announcing four new local methodology enhancements that will be activated into Local TV currency data starting today, Au...

01/09/2026

Broadcasters Gain Flexibility in Pursuit of 5G Multicasting

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Winning the Fight Against Churn

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

How Multiviewers Are Evolving Into Information Hubs'

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

IBC2026: New Audio Tools on Tap from Telos Alliance

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

SMPTE Roadshow to Examine Media Infrastructure at IBC2026

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Roku Debuts Its First 4K OLED TVs

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Mark Vinten Joins ASG's Audio and Postproduction Team

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Pronology Introduces New StreamFile Core Capabilities at...

Pronology, a developer of cutting-edge broadcast workflow solutions, showcases the newest capabilities for its StreamFile Core platform at the 2026 IBC Show (S...

01/09/2026

PROTON Unveils Next-Generation FLEXY Camera at IBC 2026

PROTON Unveils Next-Generation FLEXY Camera at IBC 2026 Brie Clayton September 1, 2026 0 Comments 10-metre serialised coax unlocks new perspectives an...

01/09/2026

Hulu Drama The Season Graded with DaVinci Resolve Studio

Hulu Drama The Season Graded with DaVinci Resolve Studio Brie Clayton September 1, 2026 0 Comments Senior Colorist Mark Kueper of Picture Shop crafts ...

01/09/2026

Pluxbox Launches CoreOC to Transform Mission-Critical Media Operations

Pluxbox Launches CoreOC to Transform Mission-Critical Media Operations Brie Clayton September 1, 2026 0 Comments A vendor-agnostic operational control l...

01/09/2026

Layercake Appoints Former FOX SPORTS and Network Ten COO...

Layercake, the company behind the intelligent media workflow platform Streamcake, today announced the appointment of Jon Marquard as Director and Chairperson. T...

01/09/2026

Actus Digital Unveils the Future of Broadcast Monitoring...

Actus Digital, a LiveU company, will unveil the next generation of its Actus X platform at IBC2026 on LiveUs Stand 7.C24, demonstrating how broadcasters can sim...

01/09/2026

Studio Automated and Egripment Power the Tactical Feed fo...

Broadcast Solutions, a leading systems integrator and provider of innovative solutions for the broadcast media industry, delivered transformational technology a...

01/09/2026

OTV turns to Quortex to replace legacy video hardware

Quortex, the intelligent video technology company carved out from Synamedia by Lumine Group, today announced that Odisha Television Network (OTV), the leading r...