Pace has pulled off the feat of expanding share in its core pay-TV markets, while being able to address new and emerging markets through acquisition and organic growth, such as the purchase of telecom gateway supplier 2Wire. The technology developer increased revenues by 17.4% to £1,330.9 million (€1,545.8m). When new acquisitions are stripped out revenues grew by 9.7%. EBITA increased by 35.6% to £103.6m.
North America grew by 26% to £541m, driven by operator uptake of high definition services, while Latin America almost doubled revenues that accounted for £242m. The increasing importance of the Americas was underlined by a 14% fall to £367 million of revenues from Europe. The anticipated drop following the decision by BSkyB to take its set-top box supply in house and Pace’s own decision to exit European free-to-air retail.
However, in a note of caution to the increased reliance on the US market it has emerged that one US provider has delayed an order by 12 months into 2012, effectively skipping a generation of technology.
Commenting on the results, Neil Gaydon, Chief Executive Officer, said the company had opened up new opportunities in home networking and advanced gateways by adding significant new capabilities in software, services and support. “Conditions across our global markets continue to be positive. Operators are utilising Pace’s widening range of products, technologies and services to enhance their consumer offering; from launching digital in emerging markets to providing solutions and services that enable home convergence in advanced markets.”
Pace has maintained its position as the number one set-top box supplier and is anticipating growth to continue at similar levels through 2011. Its new gateway, software and services businesses representing over 20% of total sales in the year ahead.
