STOCKHOLM – June 5, 2019
January– March 2019
The first quarter of 2019 was focused on executing a restructure of Zenterio, after finalizing the 4-year product program for Deutsche Telekom (“DT”). Having started a process to reduce the run-rate of the company in the second half of 2018, the quarter saw high levels of restructuring costs coupled with very low sales, resulting in a significant loss and negative cash flow.
To prepare Zenterio for a future focusing on product sales together with profitable services, there was a high level of investment in product development during the quarter, expected to help attract new customers and to be able to deliver solutions to them faster, during the second half of 2019.
As part of Zenterio’s transformation, we re-established our external Consulting business, successfully placing approximately 10 competent engineers in assignments with other tech companies in and around Linköping, providing positive cash-flow and supporting the build-up of our service business.
During the quarter we entered into an agreement with Sixty A/S of Bergen, Norway, with the intention to combine our AdScribe business with their Content Monetization solutions, eventually resulting in Zenterio becoming a major shareholder of Sixty during Q3 2019.
Zenterio delivered a negative EBITDA Q1 2019 of SEK -11,8 million, compared with Q1 2018 of SEK 2,5 million. Net sales for Q1 2019 was SEK 15,9 million compared with Q1 2018 of SEK 59,4 million.
As the transformation continues, we expect a low top line and negative EBITDA also in Q2 2019, with needs for additional short term financing due to continued restructuring costs and investments in product development and sales.
Finally, I would like to thank all employees, key partners and our customers for their support and focused actions to execute the transformation of Zenterio as fast and with as little negative impact as possible.
English Q1 2019 report: Zenterio_Q1_2019
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About Zenterio (www.zenterio.com)
Zenterio enables TV Operators to securely and efficiently manage and deliver entertainment to the home while increasing business insight and value. Zenterio’s portfolio of products and solutions includes a complete TV and OTT entertainment experience client. In addition, Zenterio provides cloud-based solutions for content aggregation, data and analytics, home automation integrations and advanced advertising capabilities with a focus on reducing cost and increasing ARPU. Zenterio also provides professional and consulting services, with global partners, to provide future-proofed lifecycle management for Linux and Android platforms.
For more information, please contact:
Kristian Toivo, CEO
Phone: +46 13 474 55 07
Per Sjöqvist, CFO
Phone: +46 70 789 5819