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KIT digital expands worldwide client base in Q4

Middle East: Wednesday, December 17 - 2008 @ 09:42

From Latin America and Eastern Europe to the Middle East and Asia Pacific, KIT digital’s continued growth is being fueled by markets where broadband and 3G mobile penetration is growing rapidly, and by the increasingly effective integration of the company’s recent acquisitions in more developed markets.

“In the context of a global economic downturn, we have continued to achieve client growth by focusing on the efficiency and cost-effectiveness of KIT digital’s integrated IP video offering, across Internet, mobile and set-top box devices,”

said Gavin Campion, president of KIT digital.

“In a tightening budget environment, we are seeing the marketing departments of large companies turn to the greater measurability and transparency of new media, and video is at the vanguard of nearly all new media implementations these days.”

“While we are expanding in developed, Western markets,” continued Campion, “many of the emerging markets in which we operate are experiencing such fundamental improvements in broadband and 3G mobile penetration that this trend appears to be superseding the general global economic slowdown.”

KIT digital’s proprietary, end-to-end technology platform helps major corporations connect with their customers, partners and other key stakeholders by leveraging video content online under their own brand, on mobile devices, and through Internet-enabled television sets. The company recently added a web-based content management system through it acquisition of Australia-based Morpheum and an IPTV broadcast platform through the acquisition of Czech Republic-based Visual Connection.

Kaleil Isaza Tuzman, chairman and CEO of KIT digital, commented, “After all the changes our company has undergone in 2008 — including operational restructuring, re-capitalization and several acquisitions — it is exciting and gratifying to see our new global team completely focused on adding new clients and expanding existing client relationships.”

“Given our unique enterprise product set, monthly recurring revenue levels, positive operating cash flow, and positive trends within our markets,” continued Isaza Tuzman, “we believe we are poised to thrive and increase our market share through this period of economic turmoil that could see the field of competitors shrinking. While we recognize the trading and liquidity challenges facing public companies of our size, the key for us is to stay focused on our clients and the bottom line, as opposed to the vicissitudes of the markets.”

KIT digital management reiterates its forecast that the company’s consolidated fourth quarter revenue will be approximately US$8.5 million (assuming a constant U.S. dollar), and confirms that the company has recently crossed over to positive monthly operating EBITDA.

Based on a closing price of $0.14 per share and 114.6 million outstanding shares, KIT digital’s market capitalization was approximately US$16.0 million as of December 12, 2008. As previously announced, the company expects to issue an additional 31.25 million shares pursuant to previous financing and acquisition activities, such that pro forma shares outstanding would be approximately 146 million. As such, pro forma market capitalization was approximately US$20.4 million as of December 12, 2008.

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Wednesday, December 17- 2008 @ 9:42 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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