Pace plc, a global developer of technologies and products for PayTV and broadband service providers, has announced that revenues rose 4.1% to US$2,403.4 million in 2012 while earnings before interest, tax and amortization (EBITA) rose by 11.8% to US$158.1 million.
Pace said profit after tax was up 50.5% to $58.4 million compared to $38.8 million in 2011 while free cash flow in 2012 stood at $182.7 million. Company’s closing debt went down by 49.2% to $163.3 million compared to $321.7 million in 2011.
In 2012, Pace said it was able to reconfirm its market leadership in PayTV hardware by remaining as global number one in set-top boxes and residential gateways. It added it maintained its position at the forefront of technological development with the launch and deployment of Media Server platforms at DirecTV and Comcast, and a number of Media Server wins at operators in Europe, LatAm and Asia Pacific.
Going into 2013, Pace said revenues for 2013 is expected to be broadly in line with 2012 and operating margin is expected to be around 7.5%. It added it expects its strong cash flow to continue, expecting to be in a positive cash position at the end of 2013.
Mike Pulli, Chief Executive Officer, said the company’s board is recommending a final dividend of 3.06 cents per share, giving a full year dividend of 4.50 cents per share, a 20.0% increase on 2011.
“The proposed dividend reflects the improved cash generation of the business and Pace will look to continue to pay a progressive dividend off this new rebased level. We have momentum, a sustainable platform to build from, and we expect to make further progress in 2013 and beyond," Pulli said.
Pace said total revenues in North America increased by 23.7% to $1,317.6 million in 2012 compared to $1,065.1 million in 2011, driven largely by strong demand from DirecTV and Comcast for Media Server products in the second quarter.
Gateway revenues increased by 14.5% to $448.7 million, reflecting the continuing demand for high performance Residential Gateways from telcos and Internet Service Providers to effectively deliver high quality triple-play services. Software and services revenues in North America also increased by 7.2% to $83.9 million.
