Share Name Share Symbol Market Type Share ISIN Share Description
Kudelski Sa LSE:0QNQ London Ordinary Share CH0012268360 KUDELSKI ORD SHS
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 5.915 5.77 6.06 202 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - - 0

Kudelski Group Annual Financial Report

25/02/2021 6:00am

UK Regulatory (RNS & others)

Dow Jones received a payment from Newsbox to publish this press release.

Annual Financial Report 
                              ANNUAL RESULTS 2020 
 · USD 741.5 million of total revenues and other operating income, USD 64.3 
    million of EBITDA and USD 122.5 million of operating free cash flow 
 · Successfully adapted structure and operations to effectively accommodate 
    impact of COVID-19 
 · Strong resilience of Digital TV produced a USD 5.9 million increase of EBITDA 
    to USD 96.9 million 
 · Positive momentum in cybersecurity increased gross margins by 22.6%, driven 
    by 57.4% growth in European revenues 
 · IoT portfolio expansion includes launch of RecovR, an advanced asset tracking 
    solution for car dealerships 
 · Better than expected resilience of Public Access business, with USD 8.5 
    million EBITDA improvement to USD 16.5 million in spite of COVID-related 
 · Strong synergies between business units enabling end-to-end digital security 
    offering spanning content protection, IoT and cybersecurity 
 · Outlook for 2021: revenue growth and EBITDA between USD 65 and 80 million 
 · Proposing a cash distribution (dividend) of CHF 0.10 per bearer share 
|(In million USD)                 |     2020      |     2019      | 
|Revenues and Other Operating     |     741.5     |     827.3     | 
|Income                           |               |               | 
|EBITDA                           |     64.3      |     40.6      | 
|Operating free cash flow         |     122.5     |     19.5      | 
Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA ??" February 25, 2021 ??" 
The Kudelski Group (SIX: KUD.S), the world leader in digital security, announced 
today its 2020 annual results. 
In 2020, total revenues and other operating income decreased to USD 741.5 
million from USD 827.3 million in 2019. After a weak first half, Group sales 
strongly recovered in the second half producing a marginal decline of USD 5.3 
million from the second half 2019, with cybersecurity and IoT revenues improving 
and Digital TV materially stable. Compared to the first half 2020, second half 
2020 total Group revenues increased by USD 101.3 million, driven by higher sales 
in all segments. 
The Group generated EBITDA of USD 64.3 million, a 58.5% or USD 23.7 million 
improvement from the previous year. This improvement reflects a strong second 
half where the Group generated USD 59.4 million, a USD 34.3 million improvement 
compared to the second half 2019. Overall, the Group generated an operating 
income of USD 16.1 million, compared to a loss of USD 15.3 million in 2019. 
The Group generated USD 122.5 million of operating free cash flow, an 
improvement of USD 103.0 million from 2019. Working capital improvements drove 
2020 cash generation, contributing USD 92.4 million. 
With the onset of the pandemic, the Group implemented a set of measures aimed at 
temporarily reducing its cost base to mitigate the business impact of COVID-19. 
While the first half was materially impacted by strains related to the pandemic, 
including reduced levels of demand in the Public Access and Digital TV segments 
of the business, the Group swiftly adapted its structure and operations to 
integrate learnings from the first COVID-19 wave and ensure full business 
continuity in spite of extended lockdowns. In addition, the Group adjusted its 
marketing and sales approach to increasingly leverage digital channels to 
accommodate the changing needs of customers. 
As a result, the second half showed more resilience than anticipated across the 
Group's four business segments. 
Digital TV delivered a strong 2020, with USD 345.4 million in net revenues and 
USD 96.9 million of EBITDA, a USD 5.9 million increase from 2019. Following a 
slow first half, second half segment revenues were in line with the second half 
2019 and increased by USD 36.0 million from the first half 2020. In relative 
terms, EBITDA margin increased from 23.8% in 2019 to 28.1% in 2020. 
Despite the macro-economic conditions created by the pandemic, the Group's 
partnerships with the largest pay-TV operators worldwide continued to expand. 
|-|          Altice USA and NAGRA have continued to extend their partnership on| 
| |    antipiracy, leveraging NAGRA's antipiracy expertise based on Open-Source| 
| |     Intelligence (OSINT), field investigation and IoT forensic analysis. In| 
| |   addition, Altice USA has successfully deployed NAGRA PROTECT, the leading| 
| |  one-way broadcast content protection to secure and enable a new generation| 
| | of HD-DTA (Digital Television Adapter). This converter box has complemented| 
| |       the already deployed Altice One platform to provide a consistent user| 
| |                experience among the different consumer devices in the home.| 
| |                                                                            | 
| |                                                                            | 
| |                                                                            | 
| |                                                                            | 
|-| At Claro Colombia, NAGRA successfully launched a cardless-based system with| 
| |  the NAGRA PROTECT as an extension of the original NAGRA Conditional Access| 
| | System. Originally planned for HFC networks, the solution is also available| 
| |        for IPTV usage and will provide secure and improved service for mass| 
| |                                       deployment on low-cost set-top boxes.| 
| |                                                                            | 
| |                                                                            | 
| |                                                                            | 
| |                                                                            | 
|-|    As part of the long-term agreement between NAGRA and Vodafone Group, the| 
| |  deployment of Vodafone TV has continued to grow during 2020, especially in| 
| |    Eastern Europe. This evolution reinforces NAGRA's strategy of offering a| 
| |central Security Services Platform providing security services for both open| 
| |   devices and Vodafone TV set-top boxes with an increasingly larger service| 
| |                                                                  footprint.| 
| |                                                                            | 
| |                                                                            | 
| |                                                                            | 
| |                                                                            | 
|-|      NAGRA Insight is gathering momentum with several operators and gaining| 
| |   market distinction for innovation. Altice USA extended the reach of NAGRA| 
| |Insight to include newly deployed devices such as AppleTV 4K. Claro Colombia| 
| |        successfully deployed Insight to measure the audience and to provide| 
| |       extended analytics to support Claro's business. NAGRA developed a new| 
| |    Insight module collecting and analyzing audience data from non-connected| 
| | satellite set-top boxes for Canal+. Industry recognitions for NAGRA Insight| 
| |     in 2020 include the "Best Data & Analytics Innovation" Award at the CSI| 
| |Awards as well as the "AI and Machine Learning Innovation of the Year" Award| 
| |                                         at the VideoTech Innovation Awards.| 
In 2020, the Group's cybersecurity business posted USD 139.9 million of gross 
revenues, a 2.0% increase from 2019. 2020 net revenues were USD 85.3 million, 
and gross profits increased by 22.6% to USD 48.4 million. The European region 
posted strong growth, increasing net revenues to USD 26.7 million, a 57.4% 
year-on-year improvement. The EBITDA loss was reduced by USD 4.6 million to USD 
17.5 million. 
Given changing requirements of the pandemic, many organizations are accelerating 
digital transformation. Kudelski Security's cloud-first cybersecurity portfolio 
strengthens the digital transformation initiatives of global enterprises using 
private and public cloud services. In support of these cloud activities, 
Kudelski Security launched strategic partnerships with the leading providers of 
public cloud services: Microsoft, Google, and Amazon. Mid-year, the company 
launched dedicated Microsoft Security services, enabling clients to effectively 
consume and configure Microsoft security capabilities and adding integrated 
security monitoring to their Microsoft 365 and Azure environments. 
Kudelski Security's Managed Security Services (MSS) delivered an exceptional 
performance throughout the year, with a high double-digit growth rate driven by 
strong activity in Europe and a notable expansion into the operational 
technology (OT) and industrial control system (ICS) space. Kudelski Security's 
Managed Security Services were further validated by a new round of recognition 
from leading industry analyst firms, such as being listed as Market Leader by 
the Forrester Wave report and nominated in the Gartner Market Guide for Managed 
Security Services and Gartner Market Guide for Managed Detection & Response 
Services 2020. 
Kudelski Security continued to deliver innovation in 2020, launching a dedicated 
focus on quantum security, including expanded research and advisory services 
that enable security leaders and product and system developers to align their 
long-term approach to risk and data protection to the era of quantum computing. 
Full year revenues for the Group's IoT business increased by USD 0.9 million to 
USD 3.7 million. Second half revenues more than doubled compared to the first 
half, still mainly driven by the IoT Services business. 
The Kudelski Group's IoT Security Center of Excellence (CoE) continues to draw 
new customers who wish to leverage Kudelski's extensive expertise in hardware 
and software security as well as security architecture and design. It has now 
added both IoT security workshops and full end-to-end solution design services 
to its portfolio. In recognition of the CoE's capabilities, it was chosen by 
both Amazon as a certified Alexa Built-In Security Lab, and AT&T as an IoT 
Security Lab for companies connecting their devices to AT&T's network. 
2020 also saw a key milestone in Kudelski IoT when it announced the availability 
of the PICO SE-800, a security chip that is part of Kudelski's IoT keySTREAM. 
This provides IoT devices manufacturers with a turnkey IoT security solution 
enabling them to securely manage, control and update their IoT devices. Silicon 
manufacturer STMicroelectronics and SIM card specialist IDEMIA also announced 
the integration of Kudelski IoT keystream into their product lines, enabling 
more robust IoT security for their customers. Kudelski IoT also announced that 
it had contracted to deliver a passive keyless entry solution to 
California-based Canoo, an electronic vehicle manufacturer. 
In February 2021, Kudelski IoT launched RecovR, a new two-in-one solution for 
car dealerships that places a small, battery-powered locator device in new cars 
in order to help dealers locate and manage their vehicle inventory more 
efficiently. Once the car is sold, RecovR is offered to the new owners as a 
vehicle theft recovery solution, generating revenue for both the dealer and 
Kudelski IoT and giving consumers a powerful vehicle theft recovery tool. 
COVID-19 significantly affected 2020 Public Access results, with revenues 
decreasing by 13.0% year-on-year to USD 295.1 million. In the second half 
business partially recovered, posting a marginal 4.5% decline compared to the 
second half 2019 in spite of the pandemic. Public Access reduced 2020 operating 
expenses by USD 28.9 million compared to the previous year. In addition to 
temporary COVID-related actions, structural headcount reduction measures enabled 
these cost savings. Overall, Public Access generated an EBITDA of USD 16.5 
million, representing a USD 8.5 million improvement compared to the prior year. 
In 2020, reacting to new customer requirements due to the pandemic, SKIDATA 
launched dedicated touchless solutions in each of its business segments: parking 
facilities, ski destinations and event venues. The solutions enable operators to 
continue running their operations smoothly and safely. 
SKIDATA has also developed environment-friendly solutions that contribute to 
reduce the use of plastic or paper tickets, enabling users to enter, pay and 
leave a parking facility with a smartphone ticket, go directly to a ski lift 
with a digital ski pass or attend a sports event with an electronic ticket. In 
2020, it also launched a new access card made of FSC-certified wood ??" a prime 
example of replacing plastic materials with renewable primary products. 
In 2020, following successful efforts undertaken in the previous years to 
increase business efficiencies, the Group's entities increased their focus on 
leveraging synergies, enabling the building of strong internal bridges and 
shared technology resources, innovation, and business/solution ideation to 
encourage broader solution development and collaboration. Today, the Group's 
end-to-end digital security ecosystem spans content protection, IoT and 
In the Digital TV segment, the Group expects the positive momentum of the second 
half 2020 to continue into 2021, with stable year-on-year revenues. In the 
Cybersecurity segment, the Group expects growing 2021 revenues. As the 
Cybersecurity business continues to drive the development of higher margin 
product lines, gross profits should continue to grow at a double-digit rate. The 
Group expects 2021 IoT revenues to at least double compared to 2020, driven by 
the recent launch of RecovR and continued promotion of IoT Services and the 
keySTREAM platform. The Public Access business will continue to face 
uncertainties related to the COVID-19 impact on airports, shopping centers, 
stadiums and ski resorts, for at least the first half of the year. Segment plans 
for 2021 take these uncertainties into account. In 2021, the Group will continue 
to streamline SKIDATA's operations, seeking a tighter integration with other 
Group segments and corporate functions and among the SKIDATA local and central 
Overall, the Group expects year-on-year revenue growth and an EBITDA between USD 
65 and 80 million in 2021. 
Taking into account the Group's 2020 results and profitability outlook, the 
Board of Directors is proposing a CHF 0.10 cash distribution per bearer share 
for approval at the 2021 Annual Shareholders' Meeting. It is proposed that CHF 
0.05 of this cash distribution be treated as a return of capital. 
Note to the editors: 
The 2020 Financial Statements and MD&A are available in PDF format under: >> Investors >> Publications 
About the Kudelski Group 
The Kudelski Group (SIX: KUD.S) is a world leader in digital security and a 
provider of end-to-end convergent media solutions to the digital entertainment 
industry, including services and applications requiring access control and 
rights management to secure the revenue in digital television, internet, mobile 
and interactive business efficiency applications. The Group also offers 
cybersecurity solutions and services focused on helping companies assess risks 
and vulnerabilities and protect their data and systems. It also supplies 
integrated solutions to manage access control of people and vehicles to sites 
and events. The Kudelski Group is headquartered in Cheseaux-sur-Lausanne, 
Switzerland and Phoenix (AZ), USA. For more information, please visit 
Cédric Alber 
Kudelski Group 
Director ??" Corporate Communications & Media relations 
+41 21 732 01 81 
+1 415 962 5005 
Santino Rumasuglia 
Kudelski Group 
Vice President ??" Head of Investor Relations 
+1 480 430 9952 
Press Release English (PDF) 
Communiqué de presse Français (PDF) 
Financial Report 2020 (PDF) 
### END ### 
|Provider                   ||Channel       ||Contact                          | 
|Tensid EQS Ltd.,           ||    ||Provider/Channel related         | 
|Switzerland                ||||enquiries                        | 
|              ||              ||                  | 
|                           ||              ||+41 41 763 00 50                 | 

(END) Dow Jones Newswires

February 25, 2021 01:00 ET (06:00 GMT)

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