OpenTV`s loss deepens despite customer growth

By Iain Scott, ITWeb group consulting editor

Johannesburg, 30 Jul 2001

MIH Holdings subsidiary OpenTV Corporation`s net loss deepened in the six months to 30 June 2001, despite extending its customer base and revenues.

The interactive television and media solutions group`s second quarter loss of $0.06 per share was marginally better than the consensus forecast of $0.068.

Figures at a glance

OpenTV results for the three months to 30 June 2001
Year-earlier period in parentheses:

Total revenues: $22.77m ($11.26m)
Total operating expenses: $135.62m ($21.63m)
Net loss: $120.18m ($7.79m)

OpenTV results for the six months to 30 June 2001
Year-earlier period in parentheses:

Total revenues: $45.14m ($22.21m)
Total operating expenses: $280.01m ($43.83m)
Net loss: $251.12m ($38.5m)
@SidebarBrief = OpenTV results for the three months to 30 June 2001
Year-earlier period in parentheses:

Total revenues: $22.77m ($11.26m)
Total operating expenses: $135.62m ($21.63m)
Net loss: $120.18m ($7.79m)

OpenTV results for the six months to 30 June 2001
Year-earlier period in parentheses:

Total revenues: $45.14m ($22.21m)
Total operating expenses: $280.01m ($43.83m)
Net loss: $251.12m ($38.5m)

Analysts are now forecasting a loss of $0.041 for the third quarter and a $0.153.

JSE-listed MIH Holdings subsidiary MIH Limited (listed on Nasdaq and in Amsterdam) has a 36.5% stake in OpenTV.

OpenTV CEO James Ackerman describes the second quarter as a successful one.

"Our core platform line of business delivered another profitable quarter, signed three new network operator customers and reported more than two million set-top box deployments," he says.

"Our OpenTVi line of business more than doubled its revenue versus last quarter and delivered a comprehensive suite of iTV applications that are currently available in Half Moon Bay, California, on the Motorola DCT-2000.

"To further position the company for future growth, we announced our acquisition of Static, a leading iTV media and entertainment applications company whose operations include PlayJam, the most widely distributed iTV games channel in the world."

In May, OpenTV announced that its middleware solution was deployed in 2.1 million additional set-top boxes in the quarter to 31 March.

During the second quarter, the group also extended its global network operator customer base to 44, adding one broadband cable network and two satellite networks.

It also expanded its partnerships with digital TV set-top box manufacturers, with that partner base now standing at 33.

"I firmly believe this quarter demonstrates our continued success in growing our market-leading core platform business, as well as our ability to move up the iTV value chain through the expansion of our iTV applications business," Ackerman says.