ADB Group reports full-year 2010 results

Wednesday, February 23rd, 2011
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GENEVA — Advanced Digital Broadcast Holdings S.A. (SIX: ADBN) reported today ADB Group’s unaudited consolidated financial results for the full year 2010.

The full year revenue reached US$ 356.6 million, to which the newly acquired broadband business (Pirelli Broadband Solutions, renamed as “ADB Broadband”, or “ADBB”) contributed US$ 20.0 million. It has been consolidated with the ADB Group core business for the month of December 2010 only.

The gross profit amounted to US$ 114.7 million or 32.2%, compared to 36.5% in 2009. The decrease is mostly attributable to the inflexible materials pricing caused mainly by continuing component shortages and competitive pricing environment that the Group experienced during the year. Another, albeit small, factor is the inclusion of the newly acquired broadband business, which yields lower gross margin than the ADB Group traditional business, as it is structurally different.

Business overview

The Group won five new customers during 2010 for its ADB core business: CableTel (Bulgaria), Canal Digital (Norway), Telecom Italia (Italy), First Media (Indonesia), and TSTT (Trinidad&Tobago). Further customers were added as well to the portfolio as a result of the acquisition

ADB Group is pleased to announce today that it has concluded a deal with one of the largest cable operators in the United States for a delivery of a turnkey pay-TV solution for applications in the commercial segment. This solution includes ADB’s next generation set-back box, together with communication and system management software, as well as the integration of the entire system. The Group is also pleased to announce that it has just received a purchase order from another major US cable operator for the same type of product and application.

During 2010, the cable business continued to be Group’s largest business segment, contributing 35% of its revenue (39% in 2010). The cable TV industry, which has also evolved significantly, both in technical and commercial sense, still represents the largest business opportunity amongst the four segments ADB Group serves. The above notwithstanding, we note a strong growth of our IPTV segment in 2010, which increased its share of the total Group’s business from 19% in 2009 to 26% in 2010. Satellite business continued at the same level as last year, accounting for 29% of the Group revenue as in 2009. Terrestrial demand remained subdued due to the general economic conditions, and only contributed 5% to the Group revenue, compared to 12% in 2009. Other businesses, consisting of specialized software, gateway products and accessories, contributed 5% to the Group revenue, compared to 1% in 2009.

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