ADB Group gives an update on its 2013 business Montag, 04. November 2013 - 21:15
ADB Group gives an update on its 2013 business
Geneva – 04 November 2013, 21.00 CET
Advanced Digital Broadcast Holdings SA (SIX: ADBN) gave today an update on its business development during the second half of 2013.
Throughout the year 2013 the Group continued to execute its strategy of supplying its broadcast and broadband products to well-established customers, and simultaneously moving the company towards software-based solutions and services. Both have been progressing well and with good results. Towards the end of third quarter, however, sales in the Group’s ‘traditional’ business areas, i.e. broadcast and broadband home equipment, slowed. This was a result of certain key customer’s excessive inventory build-up and/or pushing planned equipment purchases to 2014. While the overall slow sales resulting from the still weak recovery of the European market were anticipated, the effect of certain consolidation activities in European pay-TV and telecommunications effectively caused the Group’s temporary business decline, which was not entirely expected. On the positive side, it should be noted that the Group has not lost a single customer and continues to be regarded a high quality supplier.
Respectively, for the first time in ADB Group history, second half sales will be lower in 2013 than those in the first half of the same year. The Group therefore expects its overall 2013 revenue to decline to around 85% of 2012.
At the same time, gross margin has been slowly developing in the right direction, thanks to the contribution of the software and service business. Furthermore, the effective cost controls put in place in 2012 and 2013 (which shall continue in 2014), will also support the Group’s financial performance in 2013 and beyond, as well as strengthen its resilience to the adverse economic environment.
As of the date of this press release the Group expects to record its 2013 Earnings Before Interest and Tax at a level significantly lower than in 2012, although still positive. The Group’s balance sheet remains strong: debt has been further reduced while slightly improving the net cash position.
Consistent with its strategy and policy, the Group continued rolling out new products, based on our leading software technologies. The new Media Box Platform (ADB-3740SX) secured two shortlist nominations at IBC in Amsterdam – for “Best customer premise technology”, and “Best satellite contribution-distribution-transmission solution” and won the award for the latter. During the third quarter, the Group also introduced its Graphyne multi-screen user experience solution, and introduced an 8-tuner wideband hybrid cable device at one of its key customers. These nominations, awards and introductions further strengthen the Group’s belief in its “Connected Homes. Connected Lives.” vision. The Group’s focus on multi-service, multi-screen and system solutions is an important part of its overall strategy and will continue to dominate its activities going forward.
Also today, Mr. Francesco Schiavinato, the Executive Vice President, is stepping down from his position at the Executive Committee with immediate effect; he will continue to support the Group in an advisory role. The Group CEO, Peter Balchin, stated: “I would like to thank Francesco for his leadership and hard work during some very challenging years, and the help he has given me since I joined the company. I wish him all the best as he pursues a career outside of ADB Group.”
This press release and further information on ADB Group can be found on the Group’s website at www.adbholdings.com
For further information please contact:
Tina Nyfors
Investor Relations/Group Communication
Tel: +41 22 592 8433
Fax: +41 22 592 8402
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