The Kudelski range comes from the field of traditional satellite and cable television encoding technology. However, the company has been radically rebuilt and now offers a mix of digital security products and encryption technology. In recent years, this has come at the expense of profits: Kudelski reported his last black numbers in 2016.
To sum up, last year’s profit for the period was $20.4 million. This translates to earnings per share of $0.26 after – $0.42 in the previous year. The numbers surprise favorably but have a special favorable effect. Revenue also increased 5% to $778.8 million compared to the previous weak year.
“We have made progress in the transformation. There are now many synergistic effects between our business units,” CEO Andrei Kudelski told FuW. Investors took the numbers very positively. The stock, which has been on a downtrend since the beginning of last year, jumped more than 8% in early dealings.
A one-time effect helps
However, the special effect decisively helps to achieve a surprisingly good result. Kudelski sold the headquarters in Cheseaux-sur-Lausanne and instead leased the property on a long-term basis. This results in a positive impact of $13.6 million, which builds on the operating result from Ebitda’s $72.4 million level. The debt was paid off from the proceeds of the sale, which means the company’s balance sheet is now more solid. The net debt to Ebitda ratio decreased from over 5 to 2.1.
The Digital TV division, which specializes in pay-TV service provider solutions and anti-piracy applications, remains Kudelski’s most important business area. Year over year, revenue increased 3% but is still below pre-crisis levels of $363.4 million. The general access division specializing in access solutions under the Skidata brand continued to shrink, but it became more profitable. With many ski resorts using Kudelski solutions forced to remain closed, the division has been struggling since the pandemic began.
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