Pace wijzigd contract BSkyB met 2,64 millioen Euro

[Gast]

(Bron: Pace.co.uk )

 

Pace Micro Technology Plc ("Pace") has recently been negotiating new supply agreements for set-top box products with British Sky Broadcasting Group plc (BSkyB). These discussions concluded yesterday, with BSkyB making further commitments to purchase Digiboxes and significant revisions to the contractual terms under which Pace supplies the Sky+ Personal Video Recorder.

 

 

Pace has a long-term supply agreement for Sky+, which lasts until the end of 2004. As a result of changes to Sky+ product pricing, certain elements of the revised agreement will result in a reduction of £1.7m in Pace's expectations for the pre tax profit for the financial year ended 1 June 2002. The Sky+ product has received some excellent reviews, with BSkyB recently confirming that over 25,000 boxes and subscriptions have been sold and that it expects sales to increase.

 

 

In a departure from its usual trading terms, for the period 1 June 2002 to 31 March 2003 and for a limited number of units, Pace will invoice an amount on shipment that is below the product cost. Pace will also receive a monthly payment from BSkyB in respect of each Sky+ monthly subscription paid by a customer over an agreed period following the installation of the box. These monthly receipts will be accounted for as income as they become receivable. As a result the pre-tax profits of the financial year 2002/2003 will be reduced by approximately £8m, with the majority of the impact expected in the first half of the financial year. Overall these Sky+ sales are expected to be profitable for Pace.

 

 

Sky+ will be cash and profit positive to Pace from at latest 1 April 2003 when new shipments will be on usual trading terms.