In the third quarter of 2020, OTT-ONE achieves revenue of more than HUF 4 billion and an EBITDA of approximately HUF 60 million. The economic slowdown caused by the coronavirus epidemic still had no effect on the company’s operating results: together with the third quarter, its annual sales revenue is now more than HUF 11 billion, which is almost HUF 10 billion more than in the same period last year. Profile cleaning, which significantly affected the results of the first half of the year, mainly in the form of a time-proportionate decrease in amortization costs, already had a positive effect on the company’s figures in the third quarter.

Listed in the Standard category on the Budapest Stock Exchange, OTT-ONE Plc. has published its business report for the first three quarters of 2020. According to the report, the company’s third-quarter income reached HUF 4.3 billion, bringing the January-September 2020 sales to more than HUF 11.1 billion, which is about six times the sales of the same period in 2019. A significant factor in the development of sales revenue was the activity related to medical devices, which came to the fore in the first half of this year.

EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to HUF 59.5 million in the third quarter, bringing the total value of the first three quarters to HUF 195.5 million – an increase of 46% compared to the same period last year. In the first half of the year, after reviewing its operations and future capabilities, the company decided to scrap a number of self-developed assets – the decision had a positive impact during the third quarter, primarily on the time-proportionate reduction in amortization costs.

During the third quarter, OTT-ONE reported a number of significant transactions. The company’s previously announced intention to give priority to the trade of health care products and the provision of health care-related services also appeared in the period under review: the contract with the National Healthcare Services Center (ÁEEK) for the supply of 3 million KN95 protective masks was completed. In addition, about 300 ventilators purchased for the National Healthcare Services Center will be handed over for the remainder of the year, with results expected to be realized during the 2020 business year.

In addition to healthcare, the company’s other focus area, streaming, which came to the front due to the development of new practices such as remote work as a result of the coronavirus pandemic, and online education also generated significant revenue in the period under review: the company sold a license related to the online education area for more than EUR 1 million for a foreign customer.

Furthermore, following the decision of the Board of Directors in July, the expansion of the capacity of the company’s server center, which has been operating since December 2019, began during the quarter, the first step of which was the sale of hardware. The expansion was justified by the appreciation of IT solutions enabling secure communication and the related cloud-based services, as well as the increase in customer demand.

In addition to these transactions, the company also won two Economic Development and Innovation Operational Programme (GINOP) grants: in September, the GINOP-5.3.12 “Incentive for Employment Expansion” tender, nearly HUF 42 million, and in October, the GINOP 1.2.7 “Development of Value Chain Quality at OTT-ONE” where the company received a non-refundable grant of HUF 310 million. With the help of the latter, the company implements in addition to a high level of IT security, the development of a manufacturing plant operating with smart solutions, and related to this, the development of a specialized, innovative production environment.

Regarding the capital market activity of the company celebrating its 10th anniversary being listed on the Budapest Stock Exchange this year, the start of the regular analysis of OTT-ONE shares within the framework of the BSE market development program can be mentioned as a significant event during the quarter. An initiation report was published by an analyst at MKB Bank at the end of August, followed by equity notes in October.

The company continued to show outstanding resilience in this extraordinary year, which is also reflected in the quarterly figures, as the third quarter brought a number of significant milestones, and the development orders related to core activities, the revenue coming from streaming services and other opportunities continue to generate stable profits. In addition, it is extremely important that the profile cleaning of the first half of the year has already appeared at the level of business results.

OTT-ONE Plc. achieves its highest operating revenue of almost HUF 7 billion in the first half of the year, which is nearly HUF 5.5 billion higher than in the same period of last year, states the company’s business report published on the Budapest Stock Exchange. During the first half of the year, the company successfully adapted to the changed market conditions, and carried out a large-scale profile cleaning, which helps to focus on the company’s core activities and ensure successful operation in the long run.

Listed in the Standard category on the Budapest Stock Exchange, OTT-ONE Plc. has published its business report for the first half of 2020. According to the statement, the company achieved the best sales revenue of its operation so far in the first half of the year, which increased four times the value of the first half of 2019, to almost HUF 7 million.

Sales of healthcare products accounted for 70% of the nearly HUF 5.5 billion increase in the income. The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) was HUF 123 million in the first half of the year, and its pre-tax profit was HUF 727.000. The latter results were largely determined and shaped by the fact that in the first half of the year the company reviewed its current operations and future opportunities and decided to discard and devalue certain self-developed assets as they do not fit into the company’s core business and the association does not intend to deal with them in the future. The write-down of assets totalling HUF 167 million, without which the operating profit for the first half of 2020 would have reached HUF 50 million, was made possible by the favourable financial result. At the same time, profile cleansing strengthens the company in the process of prioritizing its core activities as well as effectively operating its focus areas.

The coronavirus pandemic that spread to Hungary during spring as well, affected all industries, however the unusual situation did not influence negatively the core activities of OTT-ONE, and in fact, the number of inquiries increased in some areas, as well as capacity requirements. During the spring wave of the pandemic, the company signed agreements with two state actors, the Ministry of Foreign Affairs and Trade and the National Healthcare Service Center worth a total of more than HUF 12,4 billion. While the equipment and ventilators manufactured for the Ministry of Foreign Affairs and Trade have been delivered, the order made by the National Healthcare Service Center will be fulfilled in the second half of the year, which will increase OTT-ONE’s income in 2020 by HUF 7,7 billion.

OTT-ONE has also reached several other milestones in the first half of the year, of which the company’s research and development project based on artificial intelligence stands out, with a total cost of more than HUF 662 million. The name of the project is “Surface Anomaly Detection (SAD)” – identification of foreign objects in protected areas and critical routes. The number of inquiries has increased in some business lines, partly due to the appearance of new practices – such as teleworking- as a result of the coronavirus. As part of this, fulfilling an order of more than EUR 400.000, OTT-ONE sold its self-developed online education platform, which offers the possibility of online distance learning, in Croatia in March 2020.

One of the most significant events outside the reporting period was the start of the expansion of the server center, which has been operating since December 2019: at the beginning of July, the company decided to expand its server capacity worth nearly EUR 2 million.

From a perspective of its presence on the capital market, it was a significant event that OTT-ONE joined the market development program offered by the Budapest Stock Exchange, within the framework of which MKB Bank Plc. started to prepare the research of the company shares.

This year also posed a number of challenges for OTT-ONE, but at the same time, the company has adapted extremely well to the changed circumstances, as a result of which it has extablished itself in new areas in addition to its core business. Although profile cleansing has had a negative impact on the half-year figures, it will clearly help growth in the long run.

In the future, OTT-ONE Plc. will primarily continue to develop innovative market solutions and products in the fields of IT security, security technology, as well as streaming, artificial intelligence solutions and custom software.

Its operation can still be divided into the following segments: video-based content service (streaming business), IT security (security business), the development and operation of online education platforms and custom softwares.

These activities are planned to be complemented by trade with various healthcare products and the provision of services related to healthcare products.

OTT-ONE Plc.’s business milestones in the first half of 2020:

• In February 2020, the company won a grant of more than HUF 300 million in the „Vállalatok K+F+I tevékenységének támogatása” tender, and at the same time started a project to research and develop artificial intelligence technology.
• Also in February, after working together since the middle of last year, the latest version of the mobile application called iCsekk, developed jointly with Díjbeszedő Informatikai Ltd. was handed over.
• Fulfilling an order of more than EUR 400,000, OTT-ONE sold its self-developed online education platform, which offers the possibility of online distance learning, in Croatia in March 2020.
• At the end of March, in a state of emergency caused by the coronavirus epidemic, the company signed contracts for the production and delivery of about 500 ventilators through its Chinese partners and signed a multi-billion forint agreement with the Ministry of Foreign Affairs and Trade. Subsequently, an agreement was also reached for the production and supply of protective masks.
• At the beginning of April, OTT-ONE sold a software package worth of HUF 290 million consisting of corporate governance and security software to a customer in Hungary.
• In the first half of 2020, several personnel changes took place in the management of OTT-ONE Plc .: in March, dr. Zsolt Nemeskéri and dr. Réka Szabó-Kovács were elected as a member of the Supervisory and the Audit Committee. In April dr. Péter Pozsgay became a member of the Board of Directors, and the Supervisory and Audit Committee was expanded with the person of Tibor Norbert Farkas. The latter, however, is doing work on the Company’s business collaborations in China, which is incompatible with the activities of the committee, and has therefore been removed from office in early May.
• Also this month, a cooperation agreement was signed with the Budapest Stock Exchange’s educational subsidiary, the Budapest Institute of Banking Zrt. (BIB), on the use of OTT-ONE’s online education platform for remote students of the educational institution. Under the agreement, which runs until January 1, 2021, online participation in courses will also be possible for students who are unable to attend in person.
• In April, the company signed a contract with the National Healthcare Service Center for the ordering of another 300 ventilators and 3 million medical masks, amounting to approximately HUF 7.7 billion.
• In June, OTT-ONE sold a new, partly self-developed, complex video encryption software system worth HUF 510 million to its Hungarian partner.

OTT-ONE Plc. has joined the market development program offered by the Budapest Stock Exchange, within the framework of which MKB Bank Plc. will prepare research of the company shares regularly. The aim of the independent research done under the program is to strengthen investor confidence and to increase trading activity for shares with small and medium capitalization. In the wake of joining the program, OTT-ONE will also prepare quarterly reports in addition to the semi-annual reports.

OTT-ONE Plc., listed in the Standard category of the stock exchange has officially joined the market development program offered by the BSE, which now includes 15 issuers. MKB Bank will be the exclusive stock analyst of OTT-ONE, and it will regularly publish research on the company’s securities within the framework of the program. Furthermore, the program includes an increase in the frequency of reports prepared by the company: in addition to the semi-annual reports, quarterly reports will also be published by OTT-ONE.

The investment provider has recently published its initiation report on OTT-ONE, which compared to the current exchange rate, set a higher target price of HUF 296, with a 75% of revaluation potential. Balázs Rácz, capital markets analyst at MKB Bank, emphasized in the report that the company’s activities are based on the innovative IT solutions that provide high added value, and can serve as a suitable basis for further dynamic growth. The capital markets analyst added that as a result of the long-term cooperation agreements, OTT-ONE can further increase the proportion of recurring, regular sources of revenue.

In the first year of the program, launched in 2017 by BSE, the turnover of the securities of the participating companies increased by 19 percent in total compared to the same period of the previous year, in contrast to the expansion of the total market which was 2.4 percent for the same period. Last year, the BSE expanded the list of companies that could be researched in the program with shares of new issuers, including the shares of OTT-ONE: the stock exchange selected issuers based on their size, free float and liquidity to the program, which aims to increase the supply of information and to support the share turnover and liquidity.

The research may further strengthen the company’s presence on the capital market as well as strengthen investor confidence. Joining the program will also help make OTT-ONE even more visible to institutional investors.

The initiation report on OTT-ONE Plc. and the latest research will be available on the website of Budapest Stock Exchange and on the investor page of the OTT-ONE website in the future.

The 2020 edition of “100 Hungarian Inventions and Developments” has been published, which presents the Hungarian innovations, inventions and developments of the recent period. The publication also includes two solutions developed in a partnership between OTT-ONE Plc. and iSRV Zrt., the OnlineLearningPlatform (OLP) online education framework and the Encrypted SSD, which provides military-level encryption.

The OnlineLearningPlatform (OLP) is a streaming-based educational framework that combines the features of digital training systems and various online communication platforms. The system can also be used for general e-learning purposes, so it provides distance learning in primary, secondary or higher education, and can also be used by private schools and language schools. In addition, the system enables the digitization of special coaching activities, and can also be used in the field of corporate training.

The system is also able to support telemedicine-type solutions, online doctor-patient or doctor-doctor professional consultations, second-hand opinions, and even remote diagnosis in an innovative way. OLP, in support of the HR field, even solves the knowledge-based pre-screening of the recruitment and selection process, supported by professional and competency tests in a simple, traceable and retrievable way at any time.

The Encrypted SSD product line, currently under development, covers external SSD-based storage devices with hardware encryption that meets unique government and military requirements. OTT-ONE Plc. and iSRV Zrt. provided the self-developed control electronics with external intrusion protection solutions, which automatically destroy their encryption keys in the event of external intervention or attack, thus ensuring the protection of the stored data. Access to device data requires high-security biometric identification, which can be accomplished using an existing biometric module in the user’s phone.

OTT-ONE Plc. is looking for engineers and technicians for the regular maintenance and the official technical service provision of hundreds of SH 300 quality ventilators and their related accessories recently distributed by the company, for the long term.

The ideal candidates are professionals with significant experience in the installation and maintenance of medical equipment. The work would primarily take place in Hungary and may also include the provision of planned services in the surrounding countries.

You can apply for the position at info@ott-one.hu!

The Chengdu subsidiary of China Unicom has joined the Hungarian IT Solutions for Export (Hits4Export) cluster, established last autumn with the aim of making the international expansion of Hungarian companies with innovative information technology products and services more efficient. The formation of the IT export support cluster was initiated last November by OTT-ONE’s strategic partner, iSRV Zrt., while OTT-ONE itself joined the cluster as a co-founder.

The Hits4Export cluster, founded last November, has reached an important milestone: the list of members has been expanded with the Chengdu subsidiary of China Unicom, one of the largest telecommunications companies in China. The common goal of the domestic and international members participating in the cluster is to develop innovative solutions that can be widely used in Hungary and the region, including the utilization of 5G technology (such as electronic distance learning systems), the defense against the coronavirus epidemic, and the pursuit of Smart City.