Switzerland-based Kudelski Group has set up a second, non-European headquarters in Phoenix, Arizona, in a bid to become “closer to the North American market”.
The company, which is listed on the Swiss Stock Exchange and will still have a worldwide HQ Cheseaux, said that the move reflects the fact that the group’s “key growth opportunities” are primarily outside of Europe, particularly in the US.
Kudelski said it will also be able to mitigate the effects of the strong Swiss franc by “progressively shifting its center of gravity” and by reporting its financial results in US dollars as of its 2017 fiscal year.
“Historically, the Group was able to generate a substantial proportion of its business from Switzerland and Europe due to its margin structure and the strong dynamics of the European markets. Since 2011, the situation has changed dramatically, and a number of challenges have emerged,” said Kudelski in a statement.
The company said that the outlook in Switzerland and Europe in respect of Kudelski’s core business and new technology is “less promising” than the US and the Swiss franc “continues to affect the profitability” of the company.
With the second HQ, Kudelski plans to move several high-level group management and support functions to Phoenix, while Cheseaux will develop further as an “excellence center” in the field of security technologies.
Kudelski said that reporting the group’s financial results in US dollars is expected to improve its cost structure over the longer term and the company will continue to be listed on the SIX Swiss Exchange.
“The Group continues to grow mainly outside of Europe. The timing is therefore appropriate to adapt our organization to the new market paradigm in order to ensure sustainability in a changing geographic and commercial environment,” said André Kudelski, chairman and CEO of the group.
Kudelski Group’s interests include TV technology and security solutions that are housed under the Nagra brand.
German smart TV sales up 14% says @gfk digitaltveurope.com/2020/10/23/ger…
23 October 2020 @ 09:29:38 UTC