3. Seasonality

Seasonality impacts the business segments as follows:

Digital Television Solutions:

In the Digital Television Solutions business, Christmas sales usually lead to higher volumes for some of our clients and therefore higher revenues for the Group.

Public Access:

SkiData has strong seasonal revenue variations in particular in the ski access business as it earns most of its revenues in the fourth quarter.

Middleware & Advertising

In the Middleware business, Christmas set-top-box sales are usually higher, resulting in higher revenues in the last quarter and in the first quarter of the following year due to the time lag of royalty reports. There is no seasonality in the Advertising business.

Furthermore, the Digital Television Solutions business may be subject to abnormal seasonality due to bulk orders of smart cards from large customers (e.g. for swap outs) which can also substantially impact annual revenues.