Satellite will be a key growth area beyond 2014 as new entrants come into the market, says television equipment provider Ellies.
The company will also benefit from the move to digital television in SA. The country is moving to digital terrestrial television and is currently in a dual-illumination period. Analogue television will become a thing of the past in November 2013.
CEO Wayne Samson says the growth in demand for satellite and digital decoders will aid the company in growing over the next few years.
This morning, Ellies posted a growth in revenue of 8.5% for the six months to October. Samson says this was real growth, as there were no inflationary figures to boost prices. Ellies reported revenue of R590.2 million, compared to R544.1 million last year.
However, operating profit was under margin pressure and moved down 10.34%, to R73.9 million.
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Samson explains that new entrants in the space, such as On Digital Media, will bolster sales. “Satellite is looking pretty positive.”
He says most of the current growth comes from lower income earners. MultiChoice offers an entry-level bundle that allows people to buy a dish, and have it installed, as well as subscribe to a small range of channels.
On Digital Media is targeting a different audience to MultiChoice's traditional base, which should grow the market, says Samson.
In addition, the migration to digital television means about 10 million households will need to buy set-top boxes. Some of these will be subsidised by government.
However, Samson is confident Ellies will reap the rewards of its partnership with Altech UEC. Ellies has been appointed as the distributor of Altech UEC's decoders.
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