Kudelski’s digital TV revenues decreased by 18.8% to $154.7 million in the first half, representing a constant currency decline of 17.5%.
This, the company notes in its latest set of results, was driven by a strong reduction of discretionary short-term spending by operators.
Recurring revenues, particularly in advanced pay-TV markets, were nevertheless resilient. The digital TV segment as a whole generated OIBDA of $36.9 million, or 3% less than in the same period last year.
Expanding on the impact of Covid-19 on its digital TV business in the first half of this year, Kudelski says that most of its large customers showed resilient subscriber numbers. However, several operators lowered paywalls for several months to compete with an increase in streaming activities. In addition, many projects scheduled for this year have been either delayed or cancelled, and a number of customers have sought reprieve from monthly support and maintenance payment obligations in order to reduce their operating expenses.
Kudelski’s digital TV business was also negatively impacted by the closure of retail markets, particularly in Italy. Key markets in Asia-Pacific and the Americas continue to remain closed and under lockdown restrictions, resulting in continued pressure on digital TV revenues in these regions.
Kudelski Group as a whole had revenues of $320.1 million in H1 down from $400.6 million in eyh same period last year, while OIBDA was $4.9 million ($15.5 million).
