Pebble Beach expecting higher revenue, reduced first-half margin

Broadcast and streaming playout technology company Pebble Beach Systems said on Tuesday that it expected “modest growth” in first-half revenue of 3% year-on-year.

The AIM-traded firm said its level of orders in the six months ended 30 June, when compared with the same period in 2021 after adjusting for Covid-related delays that benefitted that period, were also “modestly up”.

It said there were still challenges in the supply of certain hardware components both in timing of availability and cost, which impacted the timing of delivery in the first half, and would continue to lead to some delivery delays.

The company said it was mitigating that with “measured” inventory build.

“The business environment is opening up again with trade shows and travel a welcome feature of the first half of the year,” the board said in its statement.

“We also continued to add headcount allowing us to remain focussed on the development of our next generation, cloud-native solutions in line with our mission to support broadcasters as they transition from traditional broadcast infrastructure to more flexible internet protocol-based technologies.”

The increased expenditure was part of Pebble Beach’s plan, and as a result there was a reduction in its adjusted EBITDA margin in the first half to 26%, from 35% a year earlier.

“As with last year, the board expects the year to be second half weighted in terms of revenue and we also expect the adjusted EBITDA margin to return to more normalised levels, targeting 30% margin in the second half, both of which will have a corresponding benefit to adjusted EBITDA.

“The forward order book and pipeline gives us confidence that we will deliver improved revenue performance during the second half of the year and achieve market expectations for the full year.”

Pebble Beach said it would announce its results for the six months ended 30 June in early September.

At 1301 BST, shares in Pebble Beach Systems Group were down 10.88% at 9.58p.

Reporting by Josh White at