Akamai sees Q3 double-digit profit and revenue growth as CDN market zooms
Michelle Clancy | 25-10-2013
Amid a fast-growing content delivery network (CDN) market, Akamai Technologies has turned in $396 million in revenue for the third quarter of 2013, a 15% increase over the Q3 2012 revenue of $345 million, or up 18% adjusted for the Advertising Decision Solutions (ADS) divestiture. Net income came in at $80 million, up 65% year-over-year and 29% from the prior quarter.
In addition, the board of directors have authorised a new $750 million share repurchase programme.
"Akamai's strong third quarter and year-to-date financial performance highlights our ability to deliver innovative solutions to leading enterprises globally," said Tom Leighton, CEO of Akamai, in a statement. "We intend to continue to invest in the business, while also effectively managing the cost and efficiency of our network, to help our customers capitalise on the opportunities enabled by the hyper-connected world."
Content delivery networks, or CDNs, for pay-TV operators are expected to generate $175 million in 2013 as quality management continues to emerge as an important service differentiator, according to MRG. Pay-TV operators have been moving an increasing amount of their content online through TV everywhere or multiscreen services, as well as seeing an increasing amount of Internet streaming via OTT services like Netflix and Hulu, noted MRG. As a result, cable, IPTV and satellite operators are seeing an increased need to manage what's happening in their networks, and how to deliver premium video more cost effectively and with higher quality. So, CDN services for pay-TV operators will increase by a CAGR of 57.5% through 2017, the firm found.
According to ABI Research, Akamai has had a sustained iron grip of this market with $322 million in revenues during the first half of 2013, which increased its market share to nearly 30%. That's up from about 27% at the same period in 2012. ABI found that other companies competing in the market all have less than approximately 5% market share.
Akamai's adjusted EBITDA for the third quarter of 2013 was $173 million, an increase from the prior quarter's Adjusted EBITDA of $166 million, and up from $157 million in the third quarter of 2012. Cash from operations for period was $158 million, or 40% of revenue. At the end of the third quarter of 2013, the company had $1.2 billion of cash, cash equivalents and marketable securities.
الرئيسية 