Pace signals a healthy full year outlook
SET-TOP box maker Pace said yesterday it was on track to meet expectations for the year as it continued to perform well in a strong digital TV market.
The company, which makes devices for BSkyB and Comcast, said average selling prices were increasing in the second half compared with the first half of the year, while its revenue and volume deliveries were in line.
“Given current market strengths, Pace’s position and good order visibility, the group continues to be confident in management’s expectations for the full year 2009,” the firm said.
Pace said its rise in average selling prices was due to a growth in demand for high definition boxes. During the period, the firm announced a number of High Definition contract wins with operators including Europe’s largest cable TV operator, UPC Broadband, and Sky Deutschland.
It also announced several wins with US cable operators for multi-room deployments, covering a potential subscriber base of 26m.
“As part of Pace’s ongoing growth and diversification strategy we successfully launched our MultiDweller product, which extends triple-play delivery into hard to reach places. We also launched the very first whole home personal video recorder (PVR) solution for the American cable market, ahead of all competition,” added Pace chief executive officer Neil Gaydon.
The market responded well to the update, with KBC Peel Hunt analyst reiterating his “buy” recommendation on the stock.
“We remain comfortable with the market backdrop to the wider pay-TV market and Pace’s ability to capitalise – and in some cases drive – the sweeping upgrade cycles across the cable and satellite markets,” he said.