Mixed fortunes for Kudelski

2011 was a demanding year for Kudelski, with operating income for its digital TV operations declining by CHF100.5 million (€83.2 million) to CHF28.9 million.

However, the middleware and advertising segment reverted to profitability on a full year basis, and there was continued strong momentum in the emerging markets.

Total revenues and OOI in 2011 amounted to CHF896.6 million, or 16.2% less than a year earlier, while operating income, excluding restructuring costs, was 67.9% down year-on-year to CHF35.3 million.

A net income of CHF66.7 million in 2010 was translated into a loss of CHF17.7 million.

Although structural developments in the digital TV segment remained positive in 2011, they were more than offset by the economic slowdown in Southern Europe.

Results were also hit by the continued fall of the US dollar and euro rates, impacting negatively to the tune of CHF121.7 million on full-year revenues and CHF46.5 million on operating income.

On the credit side, Nagra continued to gain in popularity in the internet TV sector, winning such clients as Dish/Echostar, Canal+, APS/HD+, Prisa TV and Jazztel.

Latin America has meanwhile become an important growth vehicle for the digital TV segment.

In its outlook for 2012, the company says it will report digital TV, middleware and advertising operations as a single segment, called digital TV, as of the beginning of this year.

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