Television equipment provider Ellies Holdings hopes to sell about 2.5 million set-top boxes, or about half the estimated retail market, of set-top boxes that will be needed when SA moves from analogue to digital television broadcasting.
The country has chosen to use the European DVB-T2 as its standard for migration. However, there are several issues that still need to be resolved before manufacturers can start producing boxes.
Moving from the old format of broadcasting will free up much-needed spectrum and is expected to create a competitive electronics manufacturing sector, as about 10 million households will need set-top boxes to convert signal so it can be viewed on older televisions.
Ellies CEO Wayne Samson says the move to digital television will be the “cherry on the top” as Ellies is doing “well” without it. He adds the company wants to secure half the retail market, which is estimated at about five million set-top boxes.
Soccer boost
Government has set aside about R2.45 billion to subsidise boxes for the poor, although final decoder prices are not yet known. Ellies has signed an exclusive distribution deal with Altech subsidiary Altech UEC to sell its decoders.
“We, together with our strategic alliance partners, look forward to the imminent implementation of the digital terrestrial television migration rollout through southern Africa,” the company says in its results announcement.
In the year to April, Ellies grew revenue 13.8%, to R1.3 billion, while net profit came in at R94 million, compared with R70.97 million a year ago, a 33% gain.
Ellies benefited from last year's FIFA Soccer World Cup, which buoyed sales of satellite dishes and related equipment. It also gained orders from Top TV's entrance into the local market on 1 May last year.
Samson says Ellies is seeing steady purchases of satellite dishes, although not as many as were sold in anticipation of the soccer tournament.
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