STOCKHOLM — Apr. 26, 2018 — Zenterio, a leading television and multiscreen solutions provider, reports today their first quarter of 2018.
January – March 2018
- Deployed license base
- The VAS (value added services) enabled license base grew by 12 thousand licenses to an accumulated base of 7,2 million.
- Net sales and other operating income increased by 15,5 % year-on-year to SEK 59,4 million (SEK 51,4 million).
- EBITDA in the first quarter 2018 was SEK 2,5 million (SEK -9,6 million).
- Net result in the first quarter 2018 was SEK –10,6 million (SEK -21,1 million).
Events after the reporting date
- Nothing to report.
Comments from Jorgen Nilsson, CEO of Zenterio
Let me begin this first quarter report 2018 to state that this was a quarter with fantastic improvements of our financial performance versus Q1 2017. Net sales amounted to SEK 59,4 million, 15,5% higher compared to Q1 2017 (SEK 51,4 million). Net Sales in the quarter included a write-down in a project in Mexico of SEK 5,0 million.
The first quarter EBITDA was positive SEK 2,5 million, improved from SEK -9,6 million in Q1 2017. Operating expenses improved by SEK 6,1 million whereof SEK 5,9 million related to a reduction in employees in Sweden. More than 7 thousand hours were redistributed from Swedish based consultants to near-shoring.
For Zenterio this improvement is important to demonstrate that our client software now is in service with several different propositions and customers globally. Building on the deployment, we have started a dialog with some selected customers to take their client strategy to the next level. This to consider a new architecture bringing proper flexibility and independence with the backend legacy and introduce new solutions and services.
If we look back at other key events in the quarter, I need to mention AdScribe, the part of Zenterio that brings next-generation advertising to television viewers and smart analytical SaaS solution. In the quarter the AdScribe offering was ordered to update existing Zenterio installations to get original customer data to enable value added services. The order is indicative of the scalable opportunity that lies ahead of the group.
After the first quarter 2018, we are launching our new cloud-based product portfolio with an architecture enabling new deployments options to add new services from. We expect this to be very exciting for our existing customers as a license upgrade, as well as for new customer striving to get stronger independence and gain control of their competitive tools.
As a concluding comment on this first quarter, I would like to mention that, to scale our business faster, we are driving partnering initiatives with some of the industry’s largest vendors to add our client and analytical/advertising solutions to some of their offerings. We expect to outline this in more detail later in the year. In parallel we are looking into what areas we need to add competence and products with relevance for our focus on scalability and recurring revenue. We have built an organization with outstanding competence and a highly flexible and scalable set-up with strong near-shoring partners to provide seamless support as we bring innovation to customers.
Being a partner for the long run, Zenterio will continue to bring industry leading solutions to its customers and customers’ customers as the industry transforms. Adding highly scalable service revenues on top of our installations – that we now build out profitably – is expected to become a combination of recurring and scalable revenue that we look forward to report on.
Finally, I would like to thank all employees, key partners and our key customers for their amazing support for the start of 2018 and look forward to rest of this year.
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About Zenterio (www.zenterio.com)
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 Linköping, London, Dublin, Prag 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.
For more information, please contact:
Tel: +46 13 36 39 50
Tel: +46 13 36 39 50