KIT digital Reports Record Q2 2011 Results
finance.yahoo.com
Revenue of $48.2 Million and Op. EBITDA of $9.6 Million Each up Over 100% Year-on-Year and up Over 35% Sequentially
Q2 2011 & Outlook Highlights
- Revenue up 40% sequentially to record $48.2 million and up 109% over same year-ago quarter;
- Operating EBITDA up 35% sequentially to record $9.6 million and up 128% over same year-ago quarter;
- Added more than 35 net new clients during the second quarter, including Axel Springer, Channel 4, China United Television, a new major business unit of The Walt Disney Company, and RAI;
- Final phase implementation of 'Project Delta,' the major internal reorganization and cost-reduction initiative related to the integration of the acquisitions completed during the first half of 2011. Upon completion, Project Delta eliminates approximately $35 million of total costs from the business on an annualized basis;
- Large majority of remaining M&A-related restructuring and integration charges booked in Q2, with only $2 million expected to be booked in Q3 2011 and none in Q4 2011;
- Company is moving to a cash EPS reporting metric in the second half of 2011 and expects to be free cash-flow positive going forward -- reaching $2.5 million per month in cash-flow generation by the end of Q4;
- Reaffirmation of $210 million revenue guidance for 2011 and 23% operating EBITDA margin for full-year; Q3 2011 guidance of at least $61 million in revenues, representing a 40% annualized organic growth rate over Q2 2011;
- Revenue guidance of at least $300 million in 2012;
- Next generation KIT Video Platform to be unveiled at the International Broadcasting Convention (IBC) September 9-11 in Amsterdam.
Selected Q2 2011 Client Wins
- The Walt Disney Company, the world's largest media and entertainment brand, engaged KIT to deliver a multi-screen over-the-top (OTT) system for one of its major divisions;
- China United Television, a nation-wide consortium of 19 leading television stations in China, selected KIT to set up a full-scale IP video network that will allow the consortium to distribute live TV programs and catch-up TV via computers, connected TVs, Apple i-devices and Android handsets to millions of users across China;
- Channel 4 in the UK, one of Europe's leading television broadcasters, chose KIT to extend its video-on-demand service to Microsoft's Xbox consoles;
- RAI, the leading Italian broadcaster, selected KIT and Wave TV to deliver its new user-generated video content and social TV channels;
- UPC, a subsidiary of Liberty Global, chose KIT to deploy and manage their over-the-top video platform;
- Axel Springer, one of Europe's largest media companies, selected KIT to deploy a social news network on Europe's largest newspaper website;
- Virgin Active, Virgin's primary health and fitness brand in the UK, selected KIT to host and manage its rich media assets;
- Ethiopian Radio and Television Agency (ERTA) chose KIT to provision the first HD and IP-capable broadcast studio in the country;
- Belgian national broadcaster VRT selected KIT to launch a video-on-demand and live video service on the Web;
- A leading global surf brand selected KIT to manage video-on-demand and live video content to Microsoft Xbox consoles throughout the world;
- TV5, one of the largest broadcasters in the Philippines, selected KIT to update its broadcast center to be the first fully automated IP capable and HD-enabled facility in the Philippines;
- Pages Jaunes, a leader in Europe for local directories, selected the KIT Platform to help manage and deliver customer video ads over both online and mobile environments;
- Evolution Gaming, the world's leading live video casino gaming platform, chose KIT to broadcast live, studio-based casino action to players in Asia.
Management Commentary
"Our record second quarter results reflect our ability to sustain and grow our existing client base through software and services usage growth, divisional cross-selling and upselling," said Kaleil Isaza Tuzman, chairman and CEO of KIT digital. "And we continue to win new clients by harnessing the increasing demand for IP video solutions across all major global markets and client verticals."
"Our pace of internal growth strengthened during the quarter, driving annualized organic revenue growth within our 30-35% target range," continued Isaza Tuzman.
"KIT digital continues to operate in the 'sweet spot' of the global transformation of traditional broadcast television and one-way video communications to multi-screen, OTT and social video solutions." |
