Zenterio report its fourth quarter 2017 which has proved to be exciting both financially but also in terms of delivery.
October – December 2017 (fourth quarter)
- Deployed license base
o The VAS (value added services) enabled license base grew by 0,3 million licenses to an accumulated base of 7,2 million.
- Net sales and other operating income increased by 12,0% year-on-year to SEK 64,6 million (SEK 57,7 million).
- EBITDA in the fourth quarter 2017 was SEK 11,8 million (SEK -8,4 million).
- Net result in the fourth quarter 2017 was SEK -1,0 million (SEK -19,7 million).
Full year 2017
- Deployed license base
o 1,5 million licenses sold this year representing a decrease of 48% compared to last year, this is however primarily explained by the large number of licenses sold to Deutsche Telecom in Q3 last year.
- Net sales and other operating income decreased by 1,4 % year-on-year to SEK 240,3 million (SEK 243,7 million).
- EBITDA in the full year 2017 was SEK 19,6 million (SEK -10,3 million).
- Net result in the full year 2017 was SEK -29,8 million (SEK -65,4 million).
Events after the reporting date
- Nothing to report
Comments from Jorgen Nilsson, CEO of Zenterio:
Let me start this fourth quarter report for 2017 by stating that this has been the most exciting quarter so far in the history of Zenterio, not only financially, but also because in the quarter we delivered Deutsche Telecom’s most sophisticated TV proposition ever. On November 7, we announced the successful launch in Germany of Zenterio OS as part of Deutsche Telekom’s strategy to harmonize their TV client software across all of their operations in Germany, Hungary, Greece, Romania, and Croatia. Powered by Zenterio technology, the high-end box supports a variety of advanced features including 4K, YouTube™ and Netflix video content, enabling DT Germany subscribers to enjoy a feature-rich television experience whilst enabling network-wide client deployments around a single middleware.
In addition, we made several other key releases with above mentioned operators which strengthened their competiveness in their local TV markets.
For Zenterio these proof points are critically important in showing that our client software is actually deployed and in addition we are broadening our offering to include the User Interface, as shown by our recently announced rollout with Hrvatski Telecom.
If we look back at other key events in the quarter, I need to mention AdScribe, a Zenterio company that brings next-generation advertising to television viewers on compatible HbbTV devices. Partnering with Admeira, the largest marketing company in Switzerland, they launched a trial of interactive advertising campaigns, running on the public TV channels delivered by a major Swiss TV operator, giving viewers the ability to interact directly with commercials, browse additional content, watch videos, enter competitions, and much more. These campaigns were built using AdScribe’s Engage solution.
The project marks the first interactive advertising campaigns to be run by Admeira, transforming the television viewing experience and giving advertisers interactivity with their target audience. It draws on AdScribe’s extensive experience designing and deploying similar technology and campaigns around the world.
My final comment on the fourth quarter events is about our cooperation with Linköping University where we held a course for over 120 Computer Science and Industrial Engineering students in their final year of studies. The goal of the course was to create four virtual companies, around projects proposed by Zenterio, developing ideas and solutions in the area of Machine Learning that relate to Zenterio’s evolving product portfolio. Several new exciting ideas were generated in the form of demonstrations of potential software solutions that will be considered for further development.
Regarding the financial performance for the quarter we are very pleased to share the exciting result that we had another good quarter with positive EBITDA. Net sales amounted to SEK 64,6 million, +12% higher compared to Q4 2016. The focus to improve the EBITDA, which started in Q2/Q3 continued and resulted in an EBITDA of SEK 11,8 million, improved from SEK -8,4 million in Q4 2016. Based on these numbers, I am very pleased to report that Zenterio delivered a positive EBITDA for full year 2017 of SEK 19,6 million, compared with SEK -10,3 million for 2016. With regards to net sales the result for 2017 was SEK 240,3 million compared to 2016’s SEK 243,7 million. This flat net sales result reflects the management’s focus on establishing a profitable platform with positive full-year EBITDA to grow from in 2018- a target that the company has had for many years.
Based on the strong financial improvement and fantastic operational delivery, the management looks forward to 2018 with great confidence. Our continued strong focus on growth based on strengthening our product and services portfolio, bringing new recurring revenue, and continuing our cash discipline will provide trust to our customers that Zenterio is a partner for the future with solutions that capture the trends in our industry, add value and provide innovation for our customers.
Finally I would like to thank all employees, key partners and our key customers for their fantastic support in achieving this 2017 result together.
Zenterio provides an independent OS for interactive TV aimed at creating an industry standard. Zenterio also offers an intuitive multiscreen UI, a powerful Data Analytics solution, Consulting Services and additional Value Added Services to TV operators. Zenterio partners with global system integrators, set-top box suppliers, CA/DRM providers, chip-set manufacturers and services providers. Zenterio has offices in Stockholm, Linköping and Atlanta and is owned by private investors and private equity firm Scope. The Chairman of the Board is former Nokia CEO Mr. Olli-Pekka Kallasvuo and the CEO is former Ericsson executive Mr. Jorgen Nilsson. For more information please visit www.zenterio.com.