After a decade of losses, KIT (previously know as Roo)'s rollup strategy for the internet TV service sector seems to finally paying dividends. They are set to post impressive profits for the last financial quarter, with profits of nearly $17m on turnover of $70m. It is particularly notable that the company's fortunes have substantially changed since the acquisition of UK video system integrator ioko.
The full results aren't out and the company is capitalising an amount of its expenditure, which inflates its profitability, but the future looks far healthier for the group.
The company has one of the nastiest short positions on the Street, so it looks like some of the naysayers may be carrying nasty losses. Sometimes it's good to be proven wrong!