‘We are CISCO’s exclusive partner for the distribution of their IPTV hardware’, said CEO Jismyl Teo. NextInsight file photo.

NETWORK CONVERGENCE combining telecom, broadcast and Internet on a single platform to deliver voice, data and video content to devices in China is ushering in the golden age for interactive cable.

This is good news for DMX, which supports telco service providers, mobile and cable TV operators providing consumers with interactive digital cable TV services.

The leading Asia-Pacific Internet network infrastructure and digital media solutions provider grew its digital media solutions revenue by 44.6% year-on-year to US$113.1 million in FY2011. 

China contributed 69.0% to Group revenue.

Together with sales of its multimedia software, revenue of DMX’s TV-related services accounted for 42.6% of Group revenue.

Group revenue was US$335.7 million, up 24.1% year-on-year.

Net profit attributable to shareholders was US$18.5 million, up 19.6% year-on-year.

At 27.5 cents, the stock traded recently at 13.7X last year's earnings.

Now that Internet broadband service providers are delivering TV content, subscribers for digital cable TV and Internet TV (IPTV) are growing rapidly in China because of its network convergence policy.

The interactive cable TV market is expected to grow as much as 51% a year to 49 million subscribers over 2011-2015, according to PRC IPTV industry news web www.lmtw.com.

DMX's FY2011 net profit was US$19.4 million. It has a net profit CAGR of a whopping 82% over 2008-2011.

“We have been in China’s cable TV market for many years.  Today, we differentiate ourselves with ‘Vision CEP – FMBC with a difference’,” said DMX CEO Jismyl Teo at its investor briefing recently. FMBC is an acronym for fixed, mobile and broadcasting convergence.

What DMX does for the digital media operator is to install an engine that recommends personalized content to the end user.

This engine is highly scalable and also enables the operator to differentiate its services through value-add.


This technology was something that DMX had successfully localized from its major shareholder KDDI. (KDDI is Japan’s second largest telecom operator and purchased 51.68% in DMX in 2009.)

”Working with KDDI has enabled us to adopt a more integrated approach for wider geographical coverage.  We want to be able to offer services to US and European conglomerates who come to Asia like how we provide solutions to Asian MNCs like Samsung and Lenovo,” said Ms Teo.

The IPTV market is also expected to grow as much as 28.9% a year to 52 million subscribers over 2011-2016.

CISCO is entering the IPTV market and DMX is its exclusive partner that distributes their IPTV hardware.

”Vision CEP shall be a very important value-added service as we penetrate the IPTV market,’ said Ms Teo.

“By working with CISCO, we are able to generate more revenue from our value-added services by being the operator behind the operator,” she added.

Related story: DMX: Breaks Ground For Advertising Industry With Vision TA

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#1 dutyfree 2012-03-19 15:45
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