Stockholm
– Net Insight,
leading provider of transportation and resource planning in the TV and media, announces that revenues for the second quarter of 2017 has been reduced by approximately 30 percent compared with the same quarter of the previous year. This means that revenues for the second quarter are expected to amount to 90 – 95 MILLION with operating profit in the range of minus 25 – 30 MILLION and a negative cash flow of 25 to 28 MILLION. Part of the decline in earnings is attributable to the investment in the live OTT. Net Insight announces at the same time that revenue for the second half of 2017 is expected to be in line with the same period in 2016. The interim report will be presented in its entirety on July 21.
The decline in sales for the second quarter is mainly due to the following:
· The global media market is in great conversion, where both customer needs and consumer behavior are key drivers of change. It means that the sales process involves more parties, it takes longer and is more complex than in the past. During the second quarter, some customers have been cautious, and required additional time to adapt their operations to the new media landscape.
· Sales in 2016, was positively affected by several global events, including the summer OLYMPICS in Brazil and the european football CHAMPIONSHIP in France. Many customers chose to upgrade their systems at the same time. It resulted in 2016 was the strongest year ever for Net Insight, with a turnover of 504 (376) MILLION and an operating loss of 52 M (19).
· In 2016, carried out a strategic restructuring in order to create a more customer-centric organization. Instead of individual product segments, created a portfolio with a holistic. In addition, the changed organisation and new skills for the employee, which takes time to get the full effect. A new sales manager is now in place in north America, and the change is for the most part completed. The result is expected to be a more homogeneous, effective and productive organization.
“We are in an interesting market in a big change. Therefore, it is a challenge to forecast the demand, then the natural suffer from uneven order flows. However, we note that during the quarter, we have moved forward with the position, and continue driving the market forward. An example is live for Α, where we have recently carried out a successful event together with the STCC. The technology worked perfectly, and the commercialization of live OTT continues according to plan. We feel confident in our long-term strategy and driving the business forward with full force.” says Fredrik Tumegård, president and CEO of Net Insight AB
For more information, please contact:
Fredrik Tumegård, CEO of Net Insight AB, +46 8 685 04 00, fredrik.tumegard@netinsight.net
This information is such information that Net Insight is required to publish under the EU marknadsmissbruksförordning. The information was submitted, by the above contact person in the government, for publication on 4 July 2017 there is 08.30.
About Net Insight
Net Insight’s vision is to facilitate a live and interactive TV experience for all the world over. Our goal is to lead the development and enable a global mediemarknadsplats where live-content can be shared and interaction among the TV audience can be done in real-time. We want to create media experiences of the future, with a focus on content.
Net Insight delivers products, software and services for efficient, high-quality medietransport, together with effective resource planning, which creates an enhanced TV experience. Net Insight’s offering covers the whole mediespektrat, from the TV-cameras and TV-studios, right up to the TV-consumers. Our solutions benefit the service providers and the TV and production companies by lowering the total cost of ownership, improve their workflow and give them the opportunity to find new business opportunities.
More than 500 leading customers to deliver mission-critical media services over Net Insight products in over 60 countries. Net Insight is quoted on Nasdaq Stockholm.
For more information
see
netinsight.net
Net Insight delivers a weaker-than-expected sales
