DUBAI, United Arab Emirates, December 15 /PRNewswire/ --
- High rates of broadband and 3G network growth in global markets continue to drive growth for leading provider of IPTV and video-based interactive marketing solutions
KIT digital, Inc. (OTC Bulletin Board: KITD), a leading global provider of Internet Protocol-based video enablement technologies, reported a number of new customer wins across the company's regional offices. 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.
Certain recent client additions and expansions include:
Asia Pacific -- SyQic, in partnership with Telecom Malaysia, engaged KIT digital to manage key IP-based content feeds with KIT premium entertainment news product, WOW! TV; -- The new portal, named Yoonic, represents one of the first broadband TV initiatives in Malaysia; -- George Weston Foods, one of the largest food manufacturers in Australasia, awarded KIT digital the digital media enablement of its GWF's flagship Dons Smallgoods brand; -- GE Money, the personal online financial services division of GE Electric, contracted KIT digital for interactive and below-the-line Marketing program design and implementation in 2009. Europe -- In October, KIT digital's IP-based content solutions generated 4.5 million streams on MSN.se, doubling the site's traffic to about 9 million streams. This partnership has been very successful in helping us grow audience volume and engagement, and we are looking forward to building upon this valuable relationship, said Peter Holmlund, executive producer of MSN Sweden; -- KIT digital was selected by Russia's top alternative telecommunications provider, Sovintel, to redevelop Corbina.tv for Sovintel's consumer brand, Beeline; -- KIT digital will build, develop and manage Beeline's Corbina.tv, including an upgraded video player, enterprise digital asset and web content management system; Corbina.tv is Russia's leading and fastest growing free video service with both user-generated and premium content. Latin America -- Cris Morena Group (CMG), one of Latin America's most prolific producers of entertainment content, engaged KIT digital to produce the region's first totally IP-based entertainment channel; -- KIT enablement technologies will be deployed both for external customers and to increase B2B delivery of content to end distributors of CMG content. Middle East -- KIT digital has entered into a distribution agreement with ARPU+, a subsidiary of leading regional telecommunications provider Orascom, for the launch of five new mobile TV channels over the MobiNil mobile network in Egypt; -- KIT digital was engaged by Youm7, a successful and progressive media and publishing group in Egypt, to provide technology and IP-based video content enablement. United States -- Pacific Coast News (PCN), an entertainment news agency providing fast and efficient 24/7 global coverage of entertainment news through pictures and video, retained KIT digital to enable and distribute its content online and through mobile devices; -- The PCN partnership underscores KIT's leadership in the highly sought-after vertical of celebrity paparazzi video content, while helping to expand PCN's international market reach.
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 US$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.
For more information, please visit: www.kitd.com.
About KIT digital
KIT digital, Inc. (OTCBB: KITD) is a leading, global provider of proprietary IP-based video enablement technologies and video-centric interactive marketing solutions. Through its end-to-end platform, KIT digital works closely with consumer brands, content providers and telcos to maximize the value of video content via the Internet, mobile networks and IPTV set-top boxes. The KIT VX platform allows clients to publish, manage and distribute digital video content, build online/mobile communities and integrate advertising. KIT offers businesses a full range of interactive marketing solutions and KIT clients can access approximately 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include ABC Disney, Associated Press, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS, Telefonica and Verizon. KIT digital has principal offices in Dubai, Melbourne (Australia), Prague, Stockholm, New York and London. For additional information, visit www.kitd.com.
This press release contains certain forward-looking statements related to the businesses of KIT digital, Inc. which can be identified by the use of forward-looking terminology such as believes, expects or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. KIT digital, Inc. is not under obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Media, Jonathan Cutler of Verse Communications, +1-818-981-3023, email@example.com; or Investor Relations, Matt Glover, Liolios Group, Inc., +1-949-574-3860, firstname.lastname@example.org, both for KIT digital, Inc.