Paris, 19 February 2018
|(Unaudited) In € millions||2016||2017||Change|
|Maintenance – Support||16.0||17.2||+7%|
|Total Software Revenues||29.3||30.7||+5%|
|Commercial Gross Profit||41.2||44.6||+8%|
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today consolidated revenues (unaudited) for FINANCIAL year 2017.
Steady growth of revenues and commercial gross profit
Fourth quarter revenues were up 4% at €15.3 million. Growth was mainly driven by the increase in services revenues (+28% over the quarter), which balanced the decrease in hardware resale (-18%), a non strategic, low margin activity. Software revenues (licenses + maintenance) were up slightly by 1%.
In terms of full year revenues, Dalet posted in 2017 its ninth consecutive year of growth, with consolidated revenues up 6% at €51.1 million. Software revenues were up 5%, bolstered by an increase of more than 7% in recurring maintenance revenues. License revenues were up 2%. Service revenues were up 21%, due to the large number of projects conducted during the year involving deployment and integration. Hardware resale was down by 8%. Due to the more favorable sales mix, the commercial gross profit (revenues minus cost of goods and third-party services resold) increased by 8% at €44.6 million.
Broken down by geographic region, the Americas were the main contributor to the growth in 2017, with revenues up by 13% at €20.7 million. Revenues for Europe slightly decreased by -2% at €20.7 million, mainly due to the decrease in non-strategic hardware resale. Excluding this hardware resale effect, sales in Europe were up by 2% in 2017. Dalet continued its expansion in the Asia Pacific region, with revenues up 8% at €7.3 million, as well as in Middle-East Africa, where revenues were up 10% at €2.4 million.
Confirmation of current operating income target for 2017
The initiatives taken by Dalet to better control its costs in deployment of large projects, combined with the revenues growth and sales mix evolution, should deliver for 2017 a current operating margin slightly above 4%.
Outlook: Expected sustained growth in 2018
Moving into 2018, Dalet can rely on a strong order intake in 2017, with several large contract wins in the Americas. The order book on January 1st 2018 stood at €40 million, up 12% from last year. Dalet expects in 2018 to continue progress towards its strategic goals, and targets mid to high single digit organic revenue growth.
Dalet will announce its 2018 target for current operating margin together with the publication of the full 2017 financial results.
2017 yearly results on 23 April 2018 after the close of trading
About Dalet Digital Media Systems
Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards.
Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, FMM, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, Euronews, MBC Dubai, MediaCorp, Mediaset, Orange, Time Warner Cable, Warner Bros., Sirius XM Radio) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA).
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