Pace to benefit as cash strapped consumers turn to home entertainment

PACE, the Yorkshire-based developer of digital TV technologies for the global payTV industry, has said it is on track to meet expectations following high demand for its products.

The Saltaire manufacturer said that although the company was not immune from the “recent abrupt and dramatic global events” recent consumer reports confirmed that it could benefit from an economic slow down as people typically spend more money and time on home entertainment.

In an interim management statement today it said it had continued to roll out advanced personal video recorders (PVR), high definition and standard set-top boxes for PayTV operators in all major digital TV markets.

The group has also begun shipments of its new digital to analogue converter to Comcast in the US and has boosted its position as a world leader in low environmental impact set-top boxes.

Other developments include Multidweller – a product that addresses the requirement for apartment blocks to offer new triple play services without the need for costly re-wiring.

Pace is also developing advanced whole home digital TV solutions for the converged world to support the long-term competitiveness of its customers.

Neil Gaydon, Pace’s chief executive officer said: “Demand for Pace’s products has been strong and we are on target to meet 2008 expectations.

“The ongoing transition to digital TV and consumer demand for high quality home entertainment is a very positive driver for Pace’s business and we expect strong revenue growth to continue in 2009.”

However, he said that due to recent fluctuations in exchange rates the board believed it “prudent” to revise down expectations for 2009 profitability.

The company is also embarking on a cost review as well as maintaining its hedging programme to manage exchange rate risk.

At the same time it is working with its value chain to better align the balance of currency exposure between purchases and sales in the US dollar, UK pound and Euro.