Kudelski Group Annual Revenue Tops $1 Billion

Kudelski Group, parent company of content protection and multiscreen television solutions firm NAGRA, announced 2017 revenue of more than $1 billion Feb. 14, with operating income of $25.6 million, thanks to its cybersecurity and public access businesses.

Kudelski Security, the company’s cybersecurity arm, more than doubled its revenue in 2017, thanks to strong performance in Europe, though nearly half of the company’s overall revenues were generated in the U.S.

“In 2017, the group accelerated its efforts to align its digital TV operations with the new market realities to seize new opportunities more effectively,” the company said in a press release. “This transformation involved the streamlining of Digital TV core operations and the full integration of its Conax subsidiary.

“In a changing environment, digital TV is continuing its own transformation to cloud-based solutions with new deployments planned for 2018.”

NAGRA itself enjoyed a solid 2017, with a multi-year agreement with the Altice Group, where Altice USA selected NAGRA Connect and the NAGRA OpenTV platform to enable content security and multiscreen experiences for Altice One, a connectivity platform launched in November. In Latin America, AMVL Claro in Colombia used NAGRA to launch an end-to-end solution to provide network DVR, and catch-up and start-over services for the company’s base of installed NAGRA subscribers.

In Brazil, Claro used NAGRA’s MediaLive/OpenTV5 platform to continue to roll-out advanced features.

In France, CANAL+ adopted NAGRA Insight, the group’s pay TV data intelligent platform for operators, and in India, NAGRA announced the launch of a TVKey product in partnership with Samsung. Additionally, in Spain, NAGRA deployed for Vodafone Spain its security solution, NAGRA Connect, to secure Vodafone’s latest set-top box.

“As part of its OpenTV Suite, NAGRA launched OpenTV Signature Edition, a turnkey, cloud-based and multi-tenant solution that provides the most complete, cloud-based and always-evolving pay TV video ecosystem to help service providers build a better video business,” Kudelski also noted.

For 2018, the company is expecting similar revenue year-to-year, but with operating income jumping as high as $45 million.

“The slowdown of the traditional pay TV business is expected to continue into 2018, reflecting the continued major transformation of the digital TV landscape,” the company said. “While new opportunities are emerging, in particular for end-to-end security solutions in the Internet video space, revenues from these new areas are not yet expected to fully replace the decline of traditional pay TV revenues.”