OTT-ONE to order hundreds of new ventilators and millions of masks from China

OTT-ONE has signed a contract for the China-based production and delivery to Hungary of hundreds of ventilators and millions of masks used for the protection against coronavirus. The total value of the order placed by the National Healthcare Services Center (ÁEEK) is HUF 7.7 billion, of which professional ventilators, related accessories and protective masks with European certification will be provided by the listed company. The devices will be ready by 31 May at the latest. The customer pays the purchase price in full in advance.

OTT-ONE has entered into another high-value business agreement to meet the needs arising from the coronavirus (COVID-19) epidemic. This time, the listed company, which focuses on innovative information technology solutions, will acquire hundreds of ventilators and related accessories (including drug dispensers, monitoring equipment and breathing circuits), and millions of masks on behalf of the National Healthcare Services Center (ÁEEK) with a total value of HUF 7.7 billion. The Chinese partner of OTT-ONE will manufacture devices for the control of the coronavirus epidemic by 31 May at the latest. ÁEEK pays the purchase price in full in advance, immediately after the signing of the agreement.

Known primarily for its video streaming, security and online education solutions, OTT-ONE has already reported on developments in the fight against the coronavirus epidemic in recent weeks. On 26 March, the Ministry of Foreign Affairs and Trade ordered 500 ventilators worth HUF 4.7 billion, and Duna Aszfalt Kft. purchased 100,000 masks on 27 March through the company’s international relations for HUF 130 million. By 2 April, OTT-ONE and its Chinese partner were among the first to successfully complete the Chinese General Administration of Customs’ reviews of the manufacture and export of medical devices, based on significantly tightened export requirements, creating additional business opportunities for the company.

Both the ventilators ordered by OTT-ONE in March and the most recently purchased ventilators fully comply with the strict quality requirements enacted by the People’s Republic of China on 1 April 2020. The masks ordered from China are also high-quality equipments with European certification.

Over the past year, OTT-ONE has placed great emphasis on building business relationships with China, which it can successfully capitalize on and build on in the current epidemic situation. The company is constantly working to receive and fulfill additional orders based on good relations and experience, which represent a major value for both Hungarian healthcare and shareholders.

After a successful 2019, OTT-ONE might launch further innovative solutions

The Board of Directors of OTT-ONE Plc. approved the agenda included in the previously published notice of the General Meeting, including the company’s business report for 2019, based on which the company’s revenue exceeded HUF 2.8 billion last year and its net profit was more than HUF 204 million. The Board of Directors and the Supervisory and Audit Committees of the company also strengthened with new experts, and they also decided on the subjects of dividends and the purchasing of treasury shares.

Pursuant to a government decree that entered into force on 10 April 2020, the Board of Directors of OTT-ONE Plc. held its annual general meeting in an emergency procedure necessitated by the current epidemiological situation. Accordingly, the Board of Directors of OTT-ONE approved the company’s report for the 2019 business year, according to which the company achieved sales revenue of more than HUF 2.8 billion and EBITDA of HUF 309.2 million, which is almost 70 percent higher than the balance sheet of the previous year. Company EBITDA also increased from HUF 309.2 million to HUF 446.6 million.

The Board of Directors also decided on the issue of dividend payments, based on which – similarly to the practice of previous years, and due to the current economic environment – the company intends to use its 2019 profit to finance investments necessary for growth. A decision was also made in the issue of purchasing treasury shares, in connection with which the Board of Directors of the company was once again authorized to purchase treasury shares in the future.

A new member, Dr. Péter Pozsgay, a lawyer and economist, has been nominated to the company’s Board of Directors, who has been serving as a legal representative for OTT-ONE in the past years. The company has also expanded its Supervisory and Audit Committee with two specialists: dr. Réka Szabó-Kovács, a lawyer, was elected at the extraordinary general meeting of OTT-ONE held at the end of March, and the company’s Board of Directors decided on the appointment of Tibor Norbert Farkas today. He has been working as a business consultant since 2004 and has been involved in foreign market development since 2010, especially in Russia, China and the United Arab Emirates.

OTT-ONE intends to continue its dynamic growth in the coming years, and its core strategy remains to develop and sell high value-added, innovative solutions, technologies, and to explore related markets and provide services. OTT-ONE’s future focus include areas with high business potential, such as image recognition algorithms, machine learning solutions and special AI technologies, and SmartCity technologies. In addition, OTT-ONE’s strategy focuses on the company’s own development online education platform, as well as more traditional industrial solutions and activities.

Another main goal of the company is to successfully complete the public capital market transaction in 2020, which, in addition to supporting the company’s growth plans, would also provide the possibility to reclassify OTT-ONE Plc. into the Premium Category of the Budapest Stock Exchange.

Although OTT-ONE had a successful 2019, the beginning of 2020 – despite the current global crisis –also delivered outstanding performance: through its extensive business network, the company signed a contract for the manufacturing and shipping of hundreds of ventilators, and the online education platform of the company also manages to make a contribution to distance learning and teleworking in many sectors. While it is unpredictable what this year has in store for the economy, OTT-ONE strives to ensure a continuous and dynamic growth trajectory and to increase shareholder value.

Distance learning at the Budapest Institute of Banking with the online learning platform of OTT-ONE

OTT-ONE has signed a cooperation agreement with the Budapest Institute of Banking (BIB), according to which the online education platform developed by OTT-ONE will enable remote students to participate in the online courses organized by BIB. The most important elements of the agreement, valid until January 1, 2021, are a high degree of data security in addition to providing live video interactive connectivity and other related features.

BIB, a wholly-owned educational subsidiary of the Budapest Stock Exchange, has a unique educational activity that provides its partners with a professional education program that covers the entire financial and economic field in addition to the capital market topic. Under the collaboration, BIB will be able to provide the opportunity of online participation for students who connect remotely with a high degree of protection, thanks to the OTT-ONE online education platform system.

In the current global context, there is a gradually growing demand for solutions that enable online education. The online learning platform developed by OTT-ONE provides a significantly higher level of data security compared to market-based, foreign-operated solutions, thus it can play an important role in the communication and internal education of Hungarian and international companies in the upcoming period.

OTT-ONE achieved nearly HUF 3 billion in annual turnover in 2019

OTT-ONE Plc. successfully concluded the year 2019 with more than HUF 2.8 billion in annual turnover, an increase of over HUF 1.1 billion compared to the financial results of the previous year. The net profit of the company for 2019 was approximately HUF 204 million.

OTT-ONE Plc. has published its profit and loss account and balance sheet for the year 2019, based on which the company’s revenue exceeded HUF 2.8 billion last year and its net profit was more than HUF 204 million. Accumulated revenue of the company was more than HUF 1.1 billion higher compared to 2018 financial results. Following the trends from previous years, OTT-ONE intends to use its 2019 earnings to finance investments needed for further growth, and to put its after-tax profit into retained earnings.

In 2019, OTT-ONE has entered into many new contracts, further strengthening its market position. In addition to various security solutions, the company has focused on developing solutions based on artificial intelligence. As a result, OTT-ONE was able to, among other things, embark on a special R&D project for the detection of surface anomalies based on AI worth nearly HUF 700 million in 2020, for which OTT-ONE received a grant of nearly HUF 365 million. Online education, which draws heavily on the experience gained in the streaming business, was also in the company’s focus in 2019.

OTT-ONE also signed the largest contract ever for its operation: in 2019 it received an order of approximately HUF 2 billion to implement innovative IT and information security technology developments for a Hungarian customer. Another milestone in 2019 was the completion of preparatory work on a HUF 1 billion server investment in November. Fully self-funded server capacity not only supports the company in serving its existing customers at a high level but also creates brand new opportunities for the company.

Last year was also decisive for the company’s presence in the capital market: last spring the company’s shares were moved from the Budapest Stock Exchange’s T Market to the Standard Category and in the autumn it was included in the stock exchange index basket of mid- and low-market companies, BUMIX. In 2019, OTT-ONE also initiated preparations for a public capital market transaction to provide the funding needed for further growth.

OTT-ONE introduced innovative solutions in many new areas last year, further paving the way for market and customer growth. The company intends to stay on the path of growth, thus the company is constantly looking at the most appropriate sources of funding. OTT-ONE is active in industries with untapped potential, and the company expects to continue to grow.

OTT-ONE provides online educational solutions for HUF 150 million

OTT-ONE has signed an agreement with a Croatian client for the production and sale of an online learning system for approximately HUF 150 million.

The demand from various industries for the rapid implementation of systems and solutions enabling distance education and remote working is on the constant rise. Based on the expertise of OTT-ONE, these demands will further increase by the emergence of global extraordinary conditions. It is expected that in the next period, the market interest in these services will increase in Hungary and on an international scale as well. Due to the extensive research and development process behind the online education platform solution and the diverse experience in the field, OTT-ONE is able to meet the emerging needs of the clients in a short time.

The online education solution provided by OTT-ONE will be introduced to several market participants in the upcoming period – the company has already been approached by various associations who are interested in the product.

The online education platform is an innovative development that is becoming a must for more and more companies and educational institutions utilizing distance education. The system offered by OTT-ONE provides a niche solution, especially in the current state of global emergency, which requires a seamless transition to online learning plaftorms.

Telenor MyTV, developed and operated by OTT-ONE, continues to expand

Telenor MyTV, developed and operated by OTT-ONE, is going to expand its channel portfolio with Spíler 2 HD, a channel of TV2 Group portfolio, and Spíler Extra, an application developed by OTT-ONE, as agreed between TV2 Group and Telenor.

The strategic cooperation between OTT-ONE and TV2 Group from 2018 and the operation of Telenor MyTV from Spring 2016 has deepened the expertise, and strengthened the market position of OTT-ONE. The Spíler Extra video streaming service could come into existence as a result of this cooperation, assuring the access to Spíler 1 and Spíler 2 channels via smart devices.

As a result of these agreements, OTT-ONE could gain international experience in developing complex video systems and in operating server capabilities supporting video services. These competencies are highly important for the the strategically significant e-learning business of the company, as well.

The announcement of the cooperation is of paramount importance to our company, as it brings OTT-ONE’s developments to an even wider range of users.

OTT-ONE is launching a special AI-based R&D project

OTT-ONE is launching a research and development project worth nearly HUF 700 million, for which the company has received a grant of almost HUF 365 million in the framework of the GINOP tender for the “Supporting R&D activities of companies”. As a result of the development, OTT-ONE would create an Artificial Intelligence-based solution and control center that would allow the continuous use of sensors in critical areas such as airport runways, enclosed areas, borderlines, freeways, runways, ski runs, as well as automated scanning and identification of foreign objects on them.

One of the areas that could benefit the most from the development may be the operation of the airports. The problem of detecting foreign objects is typically handled manually nowadays, and the currently available automated solutions do not offer a suitable, widely implemented alternative due to their extremely high cost and costly operation. At the same time, market demand is becoming increasingly evident, and solutions need to be found as soon as possible to eliminate threats to aircraft traffic.

OTT-ONE works with a team of dedicated professionals capable of creating such a complex solution, which is considered to be outstanding not only in the domestic but also in the international markets. In addition, the grant will further strengthen the company’s ambition to focus on developing artificial intelligence solutions in the future.

Hits4Export – OTT-ONE has co-founded a Hungarian IT export support cluster

The Hungarian IT Solutions for Export cluster was founded by iSRV Zrt., MAITKI Nonprofit Kft. and OTT-ONE Nyrt. The aim of the cluster is to make the international expansion of Hungarian companies with innovative information technology products and services more efficient.

The creation of this cluster was initiated by iSRV Zrt., a strategic partner of OTT-ONE. The co-founders of the cluster are iSRV Zrt., OTT-ONE Nyrt. and MAITKI Nonprofit Kft. During their negotiations with domestic and foreign partners, the founding members realized that there is a strong demand for innovative Hungarian IT solutions on the international market as well, but expansion would be more efficient with the cooperation of several companies with specialized expertise.

This is why the cluster was set up to support R&D and innovation activities, strengthen professional cooperation between companies and research institutions, facilitate the international market penetration of innovative Hungarian technologies, and ultimately increase the competitiveness of the sector and contribute to the knowledge economy. By establishing the cluster, OTT-ONE aims to strengthen the framework for its international business development activities based on its innovative products and services.

More information on the cluster’s activities will be available at hits4export.com.

OTT-ONE has concluded its first billion forint contract and announced a public transaction

OTT-ONE has concluded the largest contract of its operation to date – nearly 2 billion Hungarian forint. According to the contract, the company is implementing innovative IT and security technology developments for a Hungarian customer. The management of the listed company has also decided that due to increased investor interest, the company will issue 5 million shares on the Budapest Stock Exchange.

OTT-ONE has reached a milestone by concluding its first billion forint IT contract with a Hungarian customer. The contract amounts to a total of HUF 1 935 million (over EUR 6 million), well above the value of the company’s total turnover last year. The agreement is about advanced and innovative IT and information security developments. Some parts of the development work will be completed in 2020, but the company expects that more than half of the developments will be completed this year. During the development period, OTT-ONE will utilize its own secured and qualified server park.

In June this year, the company informed its investors that it would start a public auction on the Budapest Stock Exchange, at which it would sell its own shares. However, following the announcement of the transaction, the investor interest increased. Thus, the management considered that it could raise a larger amount of capital in order to achieve higher growth and development.  The 3 million shares offered for sale at the public auction seemed to be limited, therefore, the management is planning to sell approximately 5 million shares. Since that amount of shares cannot be provided by iSRV PLC the company will raise capital by a public offering.

OTT-ONE announced a public auction

In accordance with previous plans, following a preparation period, OTT-ONE will begin to conduct a capital market transaction, selling its own shares through a public auction at the Budapest Stock Exchange. During the transaction OTT-ONE will offer 3 million of its own shares for auction. The company intends to use the capital, raised from the public transaction, to finance potential investments, projects, and general growth. Furthermore, as a result of a successful transaction, the company will be able to enter the BSE’s Premium category later on, following an appropriate preparation time. During the transaction OTT-ONE’s investment service provider will be Equilor Investment Ltd.

At the time of the auction the main shareholder, iSRV PLC will provide the necessary shares according to a loan agreement. At the auction OTT-ONE has to sell the shares at a minimum of HUF 250, as this is one of the conditions of the agreement with iSRV. However, if the current price is higher than HUF 250 prior to the auction, then OTT-ONE’s goal is to execute the transaction at the higher rate to avoid selling below the market price. Following the auction, the shares will be returned to iSRV. The transaction was provided by iSRV without any interest or profit.

The transaction serves two purposes: on the one hand, the company intends to finance its future growth plans while, on the other hand the last condition of transferring to the Premium category could be fulfilled as well.

The advantage of the transaction is that the execution is less time-consuming compared to other type of public transactions, therefore, the investors can get the purchased shares sooner. The auction is expected to take place in September 2019.