Kudelski Group Trading Statement

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Trading Statement 
 
                                                                   PRESS RELEASE 
 
                                BUSINESS UPDATE 
 
Cheseaux-sur-Lausanne, Switzerland and Phoenix (AZ), USA, January 22, 2021 ??" The 
Kudelski Group is providing a business update regarding its 2020 performance. A 
better-than-expected resilience of the Group's business segments in the COVID-19 
environment combined with the favorable impact of proactive cost control 
measures resulted in its 2020 EBITDA exceeding the USD 45 to 55 million range of 
its latest guidance and strong full-year cash flows. 
 
The Digital TV business in the second half 2020 was more resilient than 
anticipated, benefitting from a robust recurring business and in spite of the 
negative impact of COVID-19 on the project side of the business. Digital TV 
benefitted from a comprehensive cost reduction program and a positive one-off 
pension accounting effect and performed better than expected as potential risks 
impacting the segment's profitability did not materialize. The recurring 
European Digital TV business, in particular, overperformed compared to 
expectations with a strong momentum in the last quarter. Furthermore, growth 
areas such the Group's analytics business benefitted from new customer wins. 
 
The COVID-19 impact on Public Access' business was less pronounced than 
previously anticipated, resulting in a year-on-year EBITDA improvement. While 
SKIDATA's top line suffered from the negative effect of lockdowns on the usage 
of parking infrastructure and the level of activities in the ski domain, the 
cost reduction measures initiated at the onset of the COVID-19 crisis partially 
mitigated the impact on profitability, resulting in better-than-planned results. 
In particular, Public Access' gross margins increased compared both to last year 
and last expectations. In addition, SKIDATA reduced expenses in spite of one-off 
negative effects related to the impairment of select assets, inventory clean-up, 
and other restructuring measures. 
 
In the Cybersecurity segment, the positive momentum of the European business 
accelerated in the fourth quarter. In the US, the Group continues to actively 
migrate from lower value-added technology reselling activities to higher-value 
business lines, including in particular managed security services. The 
successful ongoing transformation of the US business mix led to an improvement 
of regional gross margins. Segment's gross profit in 2020 materially improved 
compared to 2019, benefitting from the continued favorable shift of the revenues 
mix, with overall substantially stable revenues. Strong gross profit momentum 
allowed Cybersecurity to materially tighten the segment's loss in 2020 compared 
to prior year. 
 
IoT performed in line with expectations, delivering higher revenues and reducing 
its operating loss compared to the prior year. 
 
The updated guidance provided in this press release is based on the Group's 
preliminary 2020 results, which are subject to change in connection with the 
completion of the company's final closing procedures, final adjustments and 
other developments that may arise in the course of the preparation or audit of 
its financial statements. The Kudelski Group will host a conference call to 
discuss the company's full year 2020 results on February 25, 2021. 
 
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 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 www.nagra.com. 
 
Contacts 
 
Cédric Alber 
 
Kudelski Group 
Director Corporate Communications & Media Relations 
[phone] 
 
[phone] 
 
[e-mail] 
 
Santino Rumasuglia 
Kudelski Group 
Vice President ??" Head of Investor Relations 
[phone] 
 
[e-mail] 
 
Press Release (PDF) 
Press Release French (PDF) 
 
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(END) Dow Jones Newswires

January 22, 2021 01:15 ET (06:15 GMT)