Boards put Stella Vista in the picture
May 28, 2008
By INGI SALGADO
Cape Town - The electronic perimeter boards surrounding West Indies cricket pitches that were used during the 2007 World Cup have ignited strong interest in the products of South African video display screen manufacturer Stella Vista Technologies.
The perimeter boards are hard to miss - a feature that delights brand promoters.
For Stella Vista, the boards generate substantial revenue because they involve the manufacture of a lot of product. The estimated range per stadium is 100mē to 230mē.
The JSE-listed group yesterday reported that revenue for the six months to February had more than doubled to R43.4 million from R18.5 million.
Interim headline earnings tripled to 3c a share, only marginally lower than the full-year earnings of the previous financial year.
Stella Vista chief executive Muris Tabakovic said the strong growth was driven by a good local and international reception of the group's electronic perimeter boards.
"Orders are becoming bigger and we are breaking into international markets," he said.
Stella Vista (formerly known as Stardust Electronics) had chosen not to patent its technology as competitors could glean sensitive information from patent papers.
The appointment of ex-cricket boss Ali Bacher last year to the chairmanship of Stella Vista had been instrumental in opening doors into international markets, said Tabakovic.
Apart from its South African presence, Stella Vista supplies equipment to stadiums in India, Pakistan, Australia and the UK.
While the perimeter boards were expected to drive growth in the sports sector over the medium term, the commercial sector was likely to benefit strongly from the international move to introduce full-size electronic billboards by large outdoor companies. The 2010 soccer World Cup would also provide huge opportunities.
"Because of 2010, we have got far more global companies competing with us head-on for the market," said Stella Vista marketing director Nomsa Mazibuko.
Only one of Stella Vista's five display screen competitors, Belgium's Barco, had previously enjoyed a presence in South Africa. The new entrants are Mitsubishi, Dactronix, Philips and Panasonic.
Stella Vista recently lost out to Dactronix to supply display screen equipment to the Nelspruit stadium, but it hopes to emerge as the successful bidder to supply Soccer City in Johannesburg, the Orlando Stadium in Soweto, the Atteridgeville Super Stadium in Pretoria and the Royal Bafokeng Sports Palace in Rustenburg.
Stella Vista shares gained 12.50 percent to 45c on the JSE yesterday.
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