NDS GROUP REPORT STRONG PROFIT GROWTH

MIDDLESEX based NDS Group, a News Corporation company and provider of conditional access systems and interactive applications for digital pay television, have announced their unaudited results for the quarter ended 30 September 2000.
The figures show revenue up 66 per cent to £54.6m and up 14 per cent on the previous quarter. Operating income more than tripled to £10.6 m compared to the first quarter last year.
Also reported was an increased operating margin up to 19.4 per cent from 8.9 per cent compared to the first quarter last year. Continued strong growth in digital pay TV as NDS customer subscriber base increased 1.5 million to over 20 million, up 41 per cent on the same period last year.
Abe Peled, NDS' President and Chief Executive Officer, said: “We have continued to see rapid growth in our core conditional access business and are pleased to see our newer conditional access customers such as Stream and YES-DBS gaining digital television subscribers.
“Furthermore, we are successfully rolling out our interactive TV applications with the launch of QVC Directory on Sky digital, which enables consumers to view and purchase different items from the QVC web site in a simple and intuitive fashion, suitable and scalable to a television mass audience. We are also leveraging our strong existing customer relationships to win a number of important new interactive contracts.”
Rick Medlock, Chief Financial Officer, said: “This is another outstanding result for NDS with extremely strong growth in all revenue streams. Even as we continue our aggressive R&D and Sales & Marketing programs, our operating margin has improved to nearly 20% and we have again delivered excellent earnings growth. Overall an extremely encouraging start to the year.”