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Cup of cheer as soccer fans go for HD viewing
SET-TOP box maker Pace is cashing in on strong demand for high-definition TV ahead of next year's football World Cup.
The Saltaire-based company has seen an increase in orders as fans gear up for the month-long football championship.
"Fans want the best possible picture for the biggest sporting occasion in the world," said Pace chief executive Neil Gaydon. "There is no better time for our customers to launch high definition TV."
High-definition (HD) TV offers a much clearer picture than traditional TV.
"Once you have watched high-definition it's very difficult to go back to normal TV," said Mr Gaydon.
He was speaking yesterday as Pace said it is on track to meet expectations for the full year as it continues to perform well.
The company, which makes devices for BSkyB, Comcast Corp and Canal Plus, said average selling prices were increasing in the second half compared with the first, thanks to better sales of HD boxes.
HD has a global penetration of just three per cent, giving the group plenty of scope for further growth.
The group said that given current market strengths and good order visibility, it is confident about expectations for the full year. Analysts have pencilled in an annual pre-tax profit of around 73m.
Following the update, analysts at Seymour Pierce said: "We now see the re-rating story coming through as Pace delivers on its promises." The broker raised its share target price from 240p to 270p.
Over the past four months, Pace has won a series of HD contracts with operators, including Europe's largest cable TV company, UPC Broadband, satellite operator Viasat, in Scandinavia, Brazil's NET Servicos and Sky in Germany.
Pace said that an increasing number of operators ordering HD are moving to hybrid platforms that combine broadcast and broadband.
Pace also announced its first customer for its new Multi
Dweller technology – Canal Digital, a leading television distributor in the Nordic market.
A second customer is expected to be announced in the next few weeks.
"As part of Pace's ongoing growth and diversification strategy, we successfully launched our MultiDweller product, which extends triple-play delivery into hard to reach places," said Mr Gaydon.
"We also launched the very first whole home personal video recorder solution for the American cable market ahead of all competition."
Pace is benefiting from strong demand for digital and HD television services as people opt to stay at home during the economic downturn.
The company sees significant opportunities in the market, particularly in high-end segments such as high definition, personal video recording, broadband and pay TV.
In 2008, 180m digital set-top boxes were shipped into global markets and this number is expected to grow to more than 200m in 2012.
Earlier this year, Pace won the 2009 Queen's Award for Enterprise in Innovation, in recognition of its pioneering work developing high-definition set-top box technology.
The award was Pace's second successive Queen's Award, having won an International Trade Award in 2008.
Mr Gaydon said: "Winning a Queen's Award for Innovation recognises Pace's leadership in the development of high-definition set-top box technology."
High hopes for new service
Pace has high hopes for MultiDweller, a new service that enables people in flats and apartments to access digital TV at a fraction of the current price.
MultiDweller converts the existing copper wiring found in most apartment blocks into high-speed networks which can take digital TV, high-definition TV, personal video recording and broadband into people's homes.
All the software was 100 per cent developed in Saltaire, and MultiDweller has been developed with a 50 per cent grant from Yorkshire Forward.
The launch, earlier this year, followed extensive trials.
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