April – June 2015
- Deployed license base
- The VAS (value added services) enabled license base grew by 1% in the second quarter, adding some 20 thousand licenses to an accumulated base of 1.7 million
- The total license base grew by 1% in the second quarter, adding some 24 thousand licenses to the accumulated base of 3.0 million
- Net sales and other operating income in the second quarter increased 170% year-on-year to SEK 35.3 million (SEK 13.1 million)
- EBITDA in the quarter were SEK -27.4 million (SEK -25.0 million)
- Net result in the quarter was SEK -36.1 million (SEK -32.4 million)
- May 27, 2015, Zenterio announced the issuance of 3 year convertible bonds in the aggregate principal amount of SEK 31.5 million.
- April 1, 2015, Zenterio announced that the Board of Directors of the company has appointed Jörgen Nilsson as CEO as of April 2, 2015.
January – June 2015
- Deployed license base
- The VAS (value added services) enabled license base grew by 18% in the first half, adding some 260 thousand licenses to an accumulated base of 1.7 million
- The total license base grew by 10% in the first half, adding some 265 thousand licenses to the accumulated base of 3.0 million
- Net sales and other operating income in the first half increased 182% year-on-year to SEK 73.3 million (SEK 26.0 million)
- EBITDA in the first half were SEK -46.6 million (SEK -46.9 million)
- Net result in the first half was SEK -63.8 million (SEK -60.0 million)
Initial Public Offering
- The Board of Directors of Zenterio AB (publ) has today decided to postpone the initial public offering that was earlier planned to take place during 2015.
Comments from Jörgen Nilsson, CEO of Zenterio:
During my first quarter as the Chief Executive, I have been focused initially on getting a more thorough understanding of our dynamic industry, our customers’ key challenges and Zenterio’s strategic and operational situation. It has been a very exciting period as we have been dealing with a few but fairly challenging projects driving them to closure sooner and releasing resources for new revenue generating engagements. As our strategic focus is aiming for larger customer engagements, we have been defining changes in our way of working to increase internal efficiency, as well as being closer to our customers. Certain areas of our business have not been properly organized to deliver on its potential and this is now being addressed. This is to some degree due to external factors, and we are taking actions to mitigate the effects and reduce dependencies during the following quarters to achieve proper scalability in our growing business.
The company’s financial performance, in the second quarter was behind plan mainly due to a delayed major new project and some channel disappointments. We have lost time, but not momentum, as these opportunities are now unfolding and we will continue to execute our growth strategy.
On a more positive note, in early April we announced an additional contract with Deutsche Telekom, meaning that Zenterio OS will be rolled out on all Deutsche Telekom’s Southern and Eastern European markets, i.e. in Slovakia, Hungary, Romania, Croatia, Montenegro, Macedonia and Greece. These implementations will be completed during 2016 and 2017.
At the end of the quarter, Zenterio put a lot of effort to demonstrate our delivery capability on a new higher operational scale and was awarded to start an engagement with a new major strategic customer. For various reasons, we are not allowed to disclose the customer name at this stage. These positive events are a strong validation of our strategic position transforming our business model as we are now getting into a totally new dimension of customer multi-year engagements and commitments to Zenterio.
The industry is changing
It is evident that the pay TV industry is transforming as consumer behavior is changing and new user patterns are forming that needs to be captured. The established operators are defending their position and trying to adapt to the new competitive environment. At the same time, we are seeing consolidation amongst the equipment manufacturers to strengthen their positions. All of this leads to an increasingly competitive environment throughout the value chain, which Zenterio is a part of, and also changes to our future business model. Albeit, Zenterio has managed to create a very strong strategic position in this industry transformation, and is addressing the market in a slightly new way, the overall structural changes in the market are making 2015 a particularly tough year to predict.
For Zenterio the first half of 2015 clearly reflects this as some of the sales channels where we expected significant growth in license volumes did not deliver as planned. This development, combined with the uncertainty in our sales channels will steer Zenterio to do more with less partners and also increase our direct customer focus based on our recent win that we expect will significantly contribute to our financial performance during the rest of 2015.
Initial Public Offering
As communicated earlier today, the Board of Directors of Zenterio AB (publ) has today decided to postpone the initial public offering that was earlier planned to take place during 2015. However, Zenterio will continue to prepare to be ready for a future initial public offering.
“The appointment of Jörgen Nilsson as CEO in April in combination with the strong business inflow from strategic customers that is shifting the company’s business model to higher scalability, has caused initiatives to transform the organization to better deliver on the company’s fast growing opportunity. The board has determined that it is in the shareholders’ best interest to complete the organizational transition and produce demonstrable proof of scalability before introducing the company to the stock exchange and has subsequently decided to postpone the IPO until such a point”, says Olli-Pekka Kallasvuo, Chairman of the Board.
Zenterio is continuously evaluating acquisitions and funding to grow the business as efficiently as possible.
For full CEO comment and report please visit: www.zenterio.com/
Zenterio Reports Second Quarter and Half Year 2015
For more information, please contact:
Jörgen Nilsson; CEO
Phone: +46 13 36 39 50
Mattias Arnelund; CFO
Phone: +46 13 36 39 50
Zenterio provides Zenterio OS, an independent software platform for interactive TV that is positioned to become a global standard. Zenterio also offers consulting services and a value added service offering to pay TV operators. Zenterio partners with global system integrators, set-top box suppliers, CA/DRM providers, chipset manufacturers and providers of interactive services. Zenterio has more than 200 employees (25 nationalities). Zenterio has offices in Stockholm, Linköping and Atlanta. Zenterio is owned by private investors and private equity firm Scope. The chairman of the board is former Nokia CEO Mr. Olli-Pekka Kallasvuo. Visit zenterio.com
About Zenterio OS
Zenterio’s operating system works with most types of hardware available on the market. For TV operators, Zenterio’s software enables fast harmonization of operators’ fragmented software bases, and it can be used on new and already deployed hardware. With a harmonized solution, operators can quickly and cost-effectively deliver new interactive services to end customers. Besides unrivalled hardware support, Zenterio’s software offers market-leading performance and a flexible way to add new features. For system integrators, Zenterio’s products facilitate uniform support for their new solutions that enable TV operators’ interactive services. For TV viewers, this means improved experiences, an increased range of services, and greater access to new applications.