Net Insight reporting weaker-than-expected sales for the second quarter
(Thomson Reuters ONE) -
Stockholm, Sweden-Net Insight, a leading provider of transport and resource
planning in TV and media, is reporting that net sales for the second quarter
2017 were down by some 30% on the corresponding quarter of the previous year.
This means that second-quarter net sales are expected at SEK 90 - 95 million,
operating loss in the SEK 25 - 30 million interval, and negative cash flow of
SEK 25 - 28 million. Some of the earnings downturn is due to the live OTT
initiative. Net Insight simultaneously reported that estimated sales for the
second half-year 2017 will be consistent with the corresponding period of 2016.
The full Interim Report will be published on 21 July.
The sales downturn for the second quarter primarily depends on the following:
· The global media market is in fundamental transformation, with customer needs
and consumer behavior being the drivers of change. This means sales processes
involve more parties, take longer and are more complex than previously. In the
second quarter, some customers were hesitant, needing more time to adapt their
business to the new media landscape.
· In 2016, sales were positively impacted by several global events including the
Brazil Summer Olympics and the UEFA Euros in France. Many customers decided to
upgrade their systems at this time. The outcome was that 2016 was Net Insight's
strongest-ever year, with sales of SEK 504 (376) million and operating profit of
SEK 52 (19) million.
· Net Insight executed strategic restructuring in 2016 designed to create a more
customer-centered organization. Instead of product segments, Net Insight created
a portfolio with a complete offering. Its organization was also altered, with
new competence hired, which is taking time to have its full impact. A new Head
of Sales is now in place in North America, and the change process is now largely
complete. The expected outcome is a more homogeneous, effective and productive
organization.
"We're active in an interesting market in fundamental change, so forecasting
market demand, which is obviously subject to inconsistent order flows, is a
challenge. However, we can conclude that we advanced our positioning in the
quarter, and are continuing to drive the market forward. One example is live
OTT, where we successfully executed an event jointly with STCC recently. The
technology worked perfectly and the commercialization of live OTT is continuing
as planned. We feel secure in our long-term strategy, and are driving our
business forward at full speed," commented Fredrik Tumegård, CEO and President
of Net Insight AB.
For further information, please contact:
Fredrik Tumegård, CEO of Net Insight, +46 8 685 04 00,
fredrik.tumegard(at)netinsight.net
This information is information that Net Insight AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 08.30 am
CET on 4 July, 2017.
About Net Insight
Net Insight's vision is to enable a live and interactive media experience for
anyone on earth. Our aim is to lead progress and enable a global media
marketplace where live content can be exchanged and interaction among TV
audiences can take place in real-time. We want to create the media experience of
the future, centered on content.
Net Insight delivers products, software and services for effective, high-quality
media transport, coupled with the effective management of resources, all, which
creates an enhanced TV experience. Net Insight's offerings span across the
entire media spectrum, starting from TV cameras and TV studios, right through to
the TV consumers. Our solutions benefit network operators, and TV and production
companies, by lowering total cost of ownership, improving their workflow
efficiencies and providing them with the ability to capture new business
opportunities.
More than 500 world-class customers run mission critical media services using
Net Insight's solutions, covering more than 60 countries worldwide. Net Insight
is listed on Nasdaq Stockholm.
For more information, please visit netinsight.net
Net Insight reporting weaker-than-expected sales:
http://hugin.info/130084/R/2117658/806179.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Net Insight AB via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 04.07.2017 - 08:30 Uhr
Sprache: Deutsch
News-ID 550955
Anzahl Zeichen: 5201
contact information:
Town:
Stockholm
Kategorie:
Business News
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