HD TV drives Pace profits up 400pc as it joins £1bn club

By Rupert Neate, City Reporter (Media) Published: 7:00AM GMT 03 March 2010

Pace

The company, that creates set-top boxes for BSkyB and about 100 alternative broadcaster around the world, yesterday reported a 52pc enlarge in sales to �1.1bn to have it the world"s second-largest set-top box maker.

Neil Gaydon, arch executive, pronounced direct for high-definition TV had driven majority of the expansion that enabled Pace to inform a 405pc enlarge in full-year 2009 enlarge to �69.9m.

Mr Gaydon pronounced consumers around the universe are upgrading their TVs to HDTV in ever augmenting numbers.

He pronounced the direction will accelerate this year as football fans ascent their TVs in allege of the Fifa World Cup in South Africa.

"In 2010, higher clarification will turn some-more mainstream," he said. "Only 6pc of the world"s TVs are HD, America has about 11pc to 12pc, but invasion is usually in the low singular digits in Europe, so there"s still a lot of potential."

The organisation sole 17.2m set-top boxes in the year to Dec 31, a 31pc enlarge on the prior year.

Mr Gaydon pronounced expansion would not be as "tremendous" this year, but pronounced the association still approaching income to grow in the mid-single digits.

He pronounced he expects the association to sell an augmenting series of simple HD boxes, that do not beget as most distinction as some-more modernized PVR boxes that concede viewers to pause, jot down and rewind live TV.

He pronounced that as HD record becomes some-more mainstream the normal offered cost of the inclination will decline, but pronounced Pace will be means to say or enlarge the sum domain by shortening the production costs.

Brian Alexander, researcher at Investec, pronounced the "impressive" formula were driven by great volume expansion and new products.

"Pace continues to broach to plan -- a clever 2009 is protracted by a strong 2010 outlook," he pronounced in a note to clients,

The shares, that reached a seven-year high in September, sealed eleven reduce at 179p.

Pace will compensate a last division of of 1p on Jul 2

Pace additionally concluded to buy French wire and internet association Bewan Systems for €12.5m (�11.4m), to progress the technological capacity to mix Internet services with wire television.