The Kudelski Group (SIX: KUD.S) announced today its results for the first half of 2024.
The first half of 2024 marks a significant shift in the Group's activities with the expected sale of SKIDATA. This transaction fundamentally changes the scope of the Group's operations, with SKIDATA now presented as discontinued operations in the financial statements. The sale, based on an enterprise value of EUR 340 million, is expected to generate net cash of over EUR 300 million after settling SKIDATA loans of around EUR 30 million and accounting for transaction costs and other adjustments.
The proceeds of this transaction will be used by the Group to repay its outstanding CHF 145.9 million bond and all remaining bank debt, resulting in a net cash position close to USD 100 million. The transaction remains subject to regulatory approval and customary closing conditions, and while the closing is anticipated prior to the bond's maturity date, the Group has secured a CHF 150 million credit line from Farallon as a contingency measure.
Following this divestiture, the Group will consist of three business segments - Digital Television, Cybersecurity and Internet of Things. During the first half of 2024, the Digital Television segment faced headwinds, experiencing a decline in revenue and margins after cost of material, which resulted in diminished profitability. In Cybersecurity, top line growth remained modest as the focus shifted towards improving its gross margin to minimize segment losses and approach the break-even point. Meanwhile, the Internet of Things segment maintained strong momentum with solid growth, albeit with increased EBITDA losses due to accelerated investments.
In the first half of 2024, the Group's net revenues remained relatively stable, showing a slight increase of 0.4% to USD 192.0 million. Other operating income increased by USD 2.5 million to reach USD 6.1 million.
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