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.
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:
- 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.
- 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.
- Cris Morena Group, 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.
- 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.
- Pacific Coast News, 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."
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.