Zenterio Reports Second Quarter 2017

Posted On: 26th July 2017

April – June 2017

  • Deployed license base
    • The VAS (value added services) enabled license base grew by 1094 thousand licenses to an accumulated base of 6,8 million.
  • Net sales and other operating income decreased by 1,3 % year-on-year to SEK 72,4 million (SEK 73,4 million)
  • EBITDA in the second quarter 2017 was SEK 11,5 million (SEK 6,2 million)
  • Net result in the second quarter 2017 was SEK -0,3 million (SEK -9,2 million)

Events after the reporting date:

• Nothing to report

Comments from Jorgen Nilsson, CEO of Zenterio:

We now concluded the second quarter of 2017 and our industry is definitely moving forward in a relevant and positive direction. Let me start to mention that this quarter has been very busy to fulfill all commitments to launch the first ever Zenterio based product at Deutsche Telecom Germany. This since our development work started in the summer of 2015 for this new entry TV consumer proposition.

For all of our staff and contractors it has been a fantastic quarter to finally see the solution everyone worked hard on jointly with DTs staff to now be in the market with a very competitive price range. We can only comment that more propositions are on its way.

Now, having shared this update I want to focus from this excellent operational achievement to the financial performance that Zenterio has achieved in this quarter. This quarter is now showing the result from the new business model with our largest customer and its direct support to Zenterio to be a sustainable partner to them today and for tomorrow. Other key areas of improvements is the reduction of contractors in Sweden and the start of our key near-shoring to achieve a total new flexibility of resources and to a cost base that that is more competitive but also quickly can adopt to changes in competences and other needs.

To sum up, net sales were SEK 70,4 million, -1,3% lower compared to Q2 2016 that had the major MegaCable license deal accounted for. However, more importantly growing VAS licenses 20% in the quarter significantly adds to our future growth opportunity. On the EBTDA level, the huge improvement resulted to SEK 11,5 million improved from SEK 6,2 million in Q2 2016. Based on this result, I am happy to report that Zenterio now have a positive EBTDA result YTD of SEK 1,9 million.

This is good but the importance is that we want much more than this of financial improvements and will be restless to get it done by working closer with our customers than ever as most of them now starting to have our solutions in service and we can grow with them and with their customer growth.
We feel we have an exciting fall in front of us and at the IBC will announce more of our broaden product portfolio and our focus for solutions that generate new insights and new revenue and value added services for our operators by working with them in a
much different way.

On the solution proposition side we have decided to strengthen our product focus on the user experience with our multi-screen solutions. This means that our graphical user interface, JetUi, is even more relevant today in order to support operator’s capability to bring common standards to its screen choices and simplicity to content finding.

To sum up the quarter, we are very excited as a company for our company wide Change Program and to see our financial performance is in balance with what we feel we deliver. Our most important asset is our fantastic customer base of today and our passion to continue our focus at them and their business challenges. This by be better to set expectations, make priorities together and to have the right competence and flexibility in place.

We look forward to the rest of 2017 with confidence to secure growth with a strong focus on profitability, cash management and working capital discipline that we now started to see effects from.

For more information, please contact:

Jorgen Nilsson, CEO
Email: jorgen.nilsson@zenterio.com
Phone: +46 13 36 39 50

Steven Moodie, CFO
Email: steven.moodie@zenterio.com
Phone: +46 13 36 39 50

About Zenterio
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 zenterioab.wpengine.com.

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