6. Segment information
Primary segments
A business segment is a group of assets and operations engaged in providing products and services subject to risks and returns that are different from those of other business segments.
Operating divisions
The Group is divided operationally on a worldwide basis into three divisions, Digital Television Solutions, Public Access and Middleware & Advertising. These divisions, which are also based on internal management structures, can be described as follows:
- The Digital TV Solutions division provides open conditional access solutions allowing digital TV and content providers to operate a wide range of high value-added pay TV services on a secure platform.
- The Public Access division provides access control systems and ticketing services for ski lifts, car parks, stadiums, concert halls and important events as well as multifunctional cards for universities and corporations.
- The Middleware & Advertising division provides middleware software, applications, including advanced advertising and interactive services as well as professional services for digital and interactive television.
Corporate
Income and expenses relating to Corporate include the costs of Group Headquarters and the items of income and expense which are not directly attributable to specific divisions.
Intersegment sales
Inter-segment transactions are contracted on arm's length basis.
The primary segment information for 2008 and 2007 is as follows:
| Operating divisions | ||||||||||||
| Digital Television Solutions | Public Access | Middleware & Advertising | Corporate | Eliminations | Total | |||||||
| In CHF'000 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
| Revenues | ||||||||||||
| External sales | 660 947 | 573 410 | 240 563 | 224 303 | 125 996 | 128 100 | - | - | - | 1 027 506 | 925 813 | |
| Inter-segment sales | 4 955 | 8 667 | 65 | 101 | 8 842 | 499 | - | - | -13 862 | -9 267 | - | - |
| Total revenues | 665 902 | 582 077 | 240 628 | 224 404 | 134 838 | 128 599 | - | - | -13 862 | -9 267 | 1 027 506 | 925 813 |
| Income statement | ||||||||||||
| Operating income/(loss) | 7 266 | 87 981 | 21 587 | 25 776 | 10 186 | -7 575 | -20 539 | -18 527 | 18 500 | 87 655 | ||
| Interest expense and other finance income/(expense), net | -35 005 | -7 734 | ||||||||||
| Share of result of associates | -109 | 10 413 | 2 574 | - | - | - | - | 10 413 | 2 465 | |||
| Income/(loss) before tax | -6 092 | 82 386 | ||||||||||
| Income tax expense | -903 | -14 938 | ||||||||||
| Net income/(loss) for the year | -6 995 | 67 448 | ||||||||||
| Balance sheet | ||||||||||||
| Assets | ||||||||||||
| Segment assets | 804 204 | 679 151 | 195 025 | 186 140 | 278 161 | 280 171 | 11 412 | 48 007 | 1 288 802 | 1 193 469 | ||
| Investments in associates | - | - | 5 563 | 10 700 | - | - | - | 5 563 | 10 700 | |||
| 804 204 | 679 151 | 200 588 | 196 840 | 278 161 | 280 171 | 11 412 | 48 007 | 1 294 365 | 1 204 169 | |||
| Liabilities | ||||||||||||
| Segment liabilities | 204 376 | 130 655 | 129 312 | 81 233 | 35 604 | 40 556 | 356 495 | 326 170 | 725 787 | 578 614 | ||
| Other information | ||||||||||||
| Capital expenditures | 71 153 | 75 495 | 12 778 | 13 831 | 5 615 | 4 078 | - | - | 89 546 | 93 404 | ||
| Depreciation and amortization | -43 668 | -33 290 | -7 927 | -6 206 | -7 093 | -7 118 | - | - | -58 688 | -46 614 | ||
| Impairment losses | -14 986 | -2 897 | - | - | - | - | - | - | -14 986 | -2 897 | ||
Secondary segments
A geographical segment provides products or services within a particular economic environment that is subject to risks and returns that are different from those segments operating in other economic environments.
Sales
| Digital Television Solutions | Public Access | Middleware & Advertising | Total | |||||
| In CHF'000 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
| Europe | 380 721 | 321 996 | 196 467 | 186 420 | 48 160 | 56 918 | 625 348 | 565 334 |
| Americas | 181 562 | 139 898 | 23 900 | 18 378 | 36 242 | 33 861 | 241 704 | 192 137 |
| Asia & Oceania | 95 929 | 109 280 | 19 470 | 19 200 | 30 028 | 31 027 | 145 427 | 159 507 |
| Africa | 2 735 | 2 236 | 726 | 305 | 11 566 | 6 294 | 15 027 | 8 835 |
| 660 947 | 573 410 | 240 563 | 224 303 | 125 996 | 128 100 | 1 027 506 | 925 813 | |
Sales are allocated based on where the client is located.
Other geographical information
| In CHF'000 | Europe | Americas | Others | Total |
|---|---|---|---|---|
| Total assets as of December 31, | ||||
| - 2008 | 791 757 | 500 282 | 2 326 | 1 294 365 |
| - 2007 | 789 049 | 412 635 | 2 485 | 1 204 169 |
| Capital expenditures for | ||||
| - 2008 | 81 294 | 7 974 | 278 | 89 546 |
| - 2007 | 87 855 | 5 459 | 90 | 93 404 |
Assets and capital expenditures are allocated based on location of the entity owning the assets.
Revenue categories
| In CHF'000 | 2008 | 2007 |
|---|---|---|
| Sale of goods | 635 266 | 546 924 |
| Services rendered | 235 024 | 215 985 |
| Royalties and licenses | 157 216 | 162 904 |
| 1 027 506 | 925 813 |