The Vitec Group has released its results for the first half of 2016. Total revenue for 1H 2016 was USD222 million, an increase of 9.7% versus 1H 2015, and an increase of 5.7% when compared to 2H 2015.
The Vitec Group has released its results for the first half of 2016. Total revenue for 1H 2016 was USD222 million, an increase of 9.7% versus 1H 2015, and an increase of 5.7% when compared to 2H 2015. Operating profit was $16.3 million, a decrease of 8.7% versus 1H 2015, and a 41.7% decrease against 2H 2015. On a constant currency basis, revenue increased 3.1% and operating profit increased 5.2% on a year-over-year basis.
The companys operating profit declined despite the revenue growth because of non-repeat, high-margin Haigh-Farr antennas contracts in the comparison period (1H 2015) and a greater mix of lower margin broadcast services business during the first six months of 2016.
Vitec acquired two businesses in the first half of 2016. In January Vitec purchased Provak Foto Film Video B.V., a Netherlands distributor partner for cash consideration of £0.9 million. In April this year Vitecs Broadcast Division acquired Offhollywood Digital for upfront cash consideration of £1.6 million along with contingent compensation of up to $8.0 million (USD) if gross profit targets are met for the periods to December 2018. Offhollywood Digital provides camera-back modules for RED cameras along with related services.
During the period Vitec made yet another payment in the amount of £2.8 million on the earn-out related to the 2013 acquisition of Teradek.