Net Insight AB :NET INSIGHT YEAR-END REPORT JANUARY-DECEMBER 2014
(Thomson Reuters ONE) -
A Statement from CEO Fredrik Tumegård:
"The fourth quarter was good with growth of 17%, and the full year 2014 was very
good, when we achieved growth of 35% overall. The global moving image market is
continuing to grow and media companies are investing to be able to compete for
viewers. We're looking forward to continued growth, but also realize that the
competition is very intense."
Fourth quarter of 2014
* Net sales were SEK 91.8 (78.8) million, an increase of 16.5%. In comparable
currencies, the increase is 11.3%.
* Operating earnings were SEK 5.6 (-14.3) million, corresponding to an
operating margin of 6.1% (-18.1).
* Operating earnings adjusted for one-time charges were SEK 5.6 (4.4) million,
corresponding to an operating margin of 6.1% (5.6).
* EBITDA was SEK 8.0 (-14.3) million, corresponding to an EBITDA margin of
8.7% (-18.1).
* Earnings per share were SEK 0.01 (-0.03).
* Total cash flow was SEK 21.2 (21.4) million.
January - December 2014
* Net sales were SEK 379.1 (280.8) million, an increase of 35.0% year on year.
In comparable currencies, the increase was 26.9%.
* Operating earnings were SEK 53.6 (-9.7) million, corresponding to an
operating margin of 14.1% (-3.4).
* Operating earnings adjusted for one-time charges were SEK 53.6 (8.9)
million, corresponding to an operating margin of 14.1% (3.2).
* EBITDA was SEK 67.1 (-8.6) million, corresponding to an EBITDA margin of
17.7% (-3.1).
* Earnings per share were SEK 0.11 (-0.02).
* Total cash flow was SEK 90.6 (17.9) million.
CEO STATEMENT
The final quarter of 2014 was good, and the full year 2014 very good. In the
full year 2014, we grew by 35%, or 27% currency adjusted, with an operating
margin of 14%, so we are very satisfied. The main explanation was a number of
major business win in the first half-year. But the fourth quarter was also good,
with increased sales of 17% and a number of new business accounts. We also
succeeded in generating cash flow of SEK 21 million in the final quarter and SEK
91 million in the full year. Four of the five largest customers in the quarter
were new business accounts, including a strategic order for transport solutions
from Rai Way, which operates a nationwide terrestrial TV network in Italy. The
fourth quarter also brought successes on the interesting Latin American market,
with one example being us securing a new digital terrestrial win with Antel in
Uruguay. Growth in the quarter was due largely to successes in the North and
South America region, which grew by 43%.
We are a growth company active in the TV-market, which is a growing market. We
offer highly competitive products to part of this market, and enjoy high growth
potential. Media consumers have never had so much choice, and the competition
for end-customers is intensifying.
Our customers are media companies, who quite simply, need to expand their supply
to compete. Consumers do not just want to watch TV on regular sets, but on all
their devices. Competition for customers is driving media companies-regardless
of whether they broadcast over regular TV networks or over the Internet-to
invest, in production, contribution and distribution. We are really strong in
the contribution layer-ensuring that the transmission between various production
units works effectively and at a reasonable cost.
To an extent, growth in 2014 can be explained by a number of major deals. After
extensive sales work, the Switch and Zayo placed major orders, which means we
are hopeful of being able to grow on the attractive North American market. The
Switch is offering an attractive service, enabling media companies to order
precisely the transmission capacity they need between production units and then
pay for actual use, via a web interface. There is no longer any need to lease
dedicated connections, which must be paid for regardless of whether capacity is
used or not.
The entire media market is in a major transformation, whose most obvious feature
is the growth of web TV services. But in tandem with this, traditional TV
companies are investing heavily to avoid losing customers, and all companies
need to buy films, series and live events to compete. The Sochi Winter Games
were an example-such events are becoming increasingly important for attracting
viewers and are where most of our customers use our equipment for effective
media transport.
The new high-resolution image format-4K-requires far more capacity than standard
resolution images or HDTV, which is also triggering heavy investment. The next
standard-8K-is just around the corner. We launched a transport solution for both
4 and 8K in the year because we noted how display manufacturers are hard
launching 4K displays, with media companies following in their wake with
content. There is a very pressing need to get more capacity for your money, and
that is where our solutions are well placed. What we sell is efficiency.
We have very competent professionals, but are also active in a high-paced
sector, and should never underestimate the need for competence development and
new impulses. There are two segments where we are established: Broadcast & Media
Networks (BMN) is our most important business area, where we have most of our
business. This is where we intend to strengthen our positioning. Digital
Terrestrial TV (DTT) is a core business, but most DTT networks are built, and
investments there tend to be upgrades. We also have strong positioning here and
need to retain it. There is potential in developing countries, where terrestrial
networks do not face competition from other types of cable or wired TV, while
DTT is not built out yet. Cable TV & IP TV, where we remain small but our
products fit well, is a third segment. Over The Top (TV streamed over the
Internet) is a fairly new market. The demand for secure, high-quality
transmission is increasing in all contexts, and this segment offers promise for
the future, while competition is very intense. With our current solutions, we
can enable OTT providers to produce TV content cost efficiently and with high
quality over the Internet.
We have started working on regenerating our brand. We know that our customers
value us, and that our brand represents competence and flexibility. But we are
not universally recognized in the sector, and need to clarify what we stand for
and where we want to go. We hope to see the results of this branding work as
early as during 2015, but it's a long-term investment in our future.
2014 was really good, and our ambition is for this progress to continue in
2015. We see long-term growth in the market and believe in our potential, but
it's far harder to predict the rate at which we can secure major orders.
However, what is certain is that 2015 will be at least as exciting as 2014.
Net Insight AB (publ) discloses the information provided herein pursuant to the
Securities Market Act and/
or the Financial Instruments Trading Act. The information was submitted for
publication on February 13, 2015 at 08.45 CET.
Net Insight delivers the world's most efficient and scalable transport solution
for Broadcast and IP Media, Digital Terrestrial TV and IPTV/CATV networks.
Net Insight products truly deliver 100 percent Quality of Service with three
times improvement in utilization of bandwidth for a converged transport
infrastructure. Net Insight's Nimbra(TM) platform is the industry solution for
video, voice and data, reducing operational costs by 50 percent and enhancing
competitiveness in delivery of existing and new media services.
More than 200 world class customers run mission critical video services over Net
Insight products in over 60 countries. Net Insight is quoted on the NASDAQ OMX,
Stockholm.
Net Insight Year-end Report 2014:
http://hugin.info/130084/R/1894286/671513.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Net Insight AB via GlobeNewswire
[HUG#1894286]
Unternehmensinformation / Kurzprofil:
Datum: 13.02.2015 - 08:46 Uhr
Sprache: Deutsch
News-ID 371505
Anzahl Zeichen: 9274
contact information:
Town:
Stockholm
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 180 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Net Insight AB :NET INSIGHT YEAR-END REPORT JANUARY-DECEMBER 2014"
steht unter der journalistisch-redaktionellen Verantwortung von
Net Insight AB (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
