International. Milestone Systems reported revenues of DKK 407 million (EUR 54.6 million) in 2013, up 28% from DKK 318 million (EUR 42.7 million) in 2012, outperforming an already significant projected global market growth rate of approximately 20%. It's the continuation of a strong performance: Milestone Systems' revenue has grown close to 30% on average per year since 2007.
Solid revenue growth was achieved without compromise on profitability. Operating income before depreciation and amortization (EBITDA) rose to DKK 90 million (EUR 12.1 million), an increase of 81% over the DKK 50 million (EUR 6.7 million) reported in 2012. Due to the scalability of its operations, the EBITDA margin increased to 22.1% from 15.6% in 2012, and net income was DKK 34 million (EUR 4.6 million), compared to DKK 10 million in 2012 (EUR 1.3 million).
The increase in revenue was due to strong performance across geographies, and improved efficiencies with channel partners selling and installing Milestone's video management software. 2013 also saw solid growth in the number of solution partners developing third-party integrations with Milestone's open platform. The increased earnings are a result of Milestone's strategy in action with operating leverage that expanded across the cost base.
"We are very proud of these results. This clearly indicates our ability to deliver strong growth in sales and gross revenue, while also increasing profitability, underscoring the scalability of our unique open platform business model. We are capitalizing on the strength of the Milestone brand, while exponentially scaling its reach with our extensive ecosystem of partners," said Lars Thinggaard, President and CEO, Milestone Systems.
In 2013, Milestone also invested DKK 61 million (EUR 8.2 million) in research and development (R&D), which was capitalised on as a key priority supporting the ambition to be a world-class technology leader and innovator, driving the transition from analogue-based to IP-based video surveillance.
"We are at a turning point in the transition from analog to IP-based video surveillance, and we consider open platform video management software to be crucial in this development. Combined with market opportunities beyond surveillance, i.e. in education, healthcare and business analytics, I am confident that we can continue to successfully develop the company," said Lars Thinggaard.
Industry analysts expect continued growth in the video surveillance market. In line with this, Milestone Systems aims to further strengthen its global market-leading position by continuing to expand its competitive portfolio of innovative surveillance offerings through its international ecosystem of channel partners, camera providers, technology and solution partners.
