DGAP-News: Gigaset AG: Gigaset increases EBITDA and confirms outlook
(firmenpresse) - DGAP-News: Gigaset AG / Key word(s): Quarter Results
Gigaset AG: Gigaset increases EBITDA and confirms outlook
07.08.2013 / 08:00
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Gigaset increases EBITDA and confirms outlook
- Consolidated revenue from continuing operations in the second quarter:
EUR96.8 million (Q2/2012: EUR93.4 million).
- EBITDA from continuing operations in the second quarter: EUR6.4 million
(Q2/2012: EUR0.3 million).
- Business Customers Business Unit grows revenue by 47 percent compared
with the second quarter of 2012
- CEO Charles Fränkl: 'The second quarter is a positive signal for
Gigaset. The efficiency program is having an impact. New products have
been completed and are about to be launched commercially. We'll keep
implementing the 'Gigaset 2015' strategy rigorously and successfully.'
Munich, August 7, 2013 For the first time since the Group was founded,
Gigaset AG has managed to increase its revenue from continuing
telecommunications operations by around EUR3.4 million over the same
quarter of the previous year in an overall market that continues to
decline. Thanks to the Sales Push Program, it was possible to fill sales
channels in advance and hence better align cash inflow to seasonal
liquidity requirements. EBITDA climbed in the second quarter of 2013 to
EUR6.4 million (Q2/2012: EUR0.3 million).
Gigaset was also able to grow its market share again in its core business.
Its market share increased over the previous year by 1 percent both in
terms of units sold and revenue. Gigaset's market share in terms of revenue
rose in the second quarter of the year from 33.9 percent in the second
quarter of 2012 to 34.7 percent. That means Gigaset has outperformed the
market for more than five quarters, is in its view a clear winner from the
market's consolidation and has further strengthened its market position in
Europe. As a premium brand, Gigaset was also able to achieve prices that
were 31 percent above the market average. However, the market as a whole
remained under strong pressure. It declined year on year by around 14
percent in terms of units sold and by 15 percent in terms of revenue.
Gigaset CEO Charles Fränkl commented on the quarterly figures: 'The second
quarter is a positive signal for Gigaset. The efficiency program is having
an impact. New products have been completed and are about to be launched
commercially. We'll keep implementing the 'Gigaset 2015' strategy
rigorously and successfully.'
Gigaset AG's figures in the second quarter of 2013 (continuing operations):
- Consolidated revenue: EUR96.8 million (Q2/2012: EUR93.4 million)
- EBITDA: EUR6.4 million (Q2/2012: EUR0.3 million)
- EBITDA margin: 6.6 percent (Q2/2012: 0.3 percent)
- Consolidated net loss: EUR9.4 million (Q2/2012: EUR3.6 million)
- Free cash flow: minus EUR10.9 million (Q2/2012: minus EUR11.7 million)
Relative to the first half of 2013 (continuing operations):
- Consolidated revenue: EUR183.6 million (H1/2012: EUR205.7 million)
- EBITDA: EUR11.0 million (H1/2012: EUR11.3 million)
- EBITDA margin: 6.0 percent (H1/2012: 5.5 percent)
- Consolidated net loss: EUR12.7 million (H1/2012: consolidated net
income of EUR0.6 million)
- Free cash flow: minus EUR34.9 million (H1/2012: minus EUR28.3 million)
Cash and cash equivalents at June 30, 2013, were EUR18.9 million.
Financial base stabilized in the seasonally weak summer months
On July 1, 2013, Gigaset Communications GmbH, a subsidiary of the Gigaset
AG group, concluded an agreement on bridging financing of EUR10.4 million
with a consortium led by Deutsche Bank AG.
Further measures helped successfully avert a potential phase of strained
liquidity in the summer months:
- The savings in fiscal year 2013 are expected to amount around EUR24
million based on the cost-cutting and efficiency program already
announced in 2012. As of 2014, permanent cuts of EUR30 million a year
are to be achieved.
- Thanks to a Sales Push Program, it was possible to fill sales channels
in advance and hence better match cash inflow to seasonal liquidity
requirements.
- Gigaset is continuing to review its non-European activities with the
aim of focusing on highly profitable markets. One first result of this
is its withdrawal from the unprofitable cordless phone business in
Brazil. The subsidiary responsible for the Middle East and Africa
region is currently being sold to management there. Efficient access to
the market in the region will still be ensured by simplifying
structures. The company has achieved the turnaround in Turkey by means
of strategic repositioning.
Gigaset expects that the company's liquidity situation will ease in the
second half of the year, likewise due to seasonal reasons.
Rigorous implementation and further development of the new 'Gigaset 2015'
strategy
The 'Gigaset 2015' strategy, which was presented at the 2012 Shareholders'
Meeting and concretized by the second quarter of 2012, is being implemented
rigorously and successfully.
Home Networks - 'Gigaset elements'
The company completed 'Gigaset elements,' its new solution for the
networked home, in the second quarter of 2013. The load on the system is
currently being increased gradually in cooperation with selected users,
after which it will be released for general sale in the third quarter. With
'Gigaset elements,' Gigaset is extending its business model as a hardware
vendor to include the dimension of an Internet service provider and will
thus open up opportunities for new business models. 'Gigaset elements' is a
sensor- and cloud-based solution for home networks. Cutting-edge sensors
are combined with each other and linked with an Internet-capable DECT ULE
base station and a secure Web server. That permits a large number of
applications in the home. The intelligent, learning system will be able to
be extended in a modular fashion. At a price of less than EUR200 for a
Starter Kit, the system is suitable for the mass market.
Consumer Products - 'Gigaset'
The company constantly gained market share in its core business of cordless
phones despite tough general conditions. Thanks to the new platform
strategy, which enables shorter product development and innovation cycles,
the product drive was sped up. Since August 2012, Gigaset has completed ten
new models, some of which are already on the market. In addition, initial
products from the complementary portfolio of phone-related products were
developed in the shape of a baby phone series and presented in August. In
addition, the UK consumer organization 'Which?' bestowed its 'Best Buy'
award on the SL910A and S820A.
The new Android-based SL 930 full-touch cordless phone will be shipped to a
large network operator for the first time in August 2013.
Business Customers - 'Gigaset pro'
The 'Business Customers' Business Unit, which contains the product line
'Gigaset pro', is growing strongly and increased its sales in Q2/2013 by 47
percent compared with the second quarter of the previous year. Year-on-year
growth for the first six months was 37 percent. This was achieved in
particular as a result of successful regional expansion with rollout of the
product series 'Gigaset pro' in the UK, Switzerland, Denmark, Sweden and
Spain. Thanks to new products, the unit posted further growth in OEM
business. The sales successes can also be attributed to a new Partner
Program launched in Germany, theNetherlands and France. New sales
partnerships were also concluded. As announced, the innovative,
Android-based business phone Maxwell is to be launched at the end of the
year.
Outlook confirmed
Gigaset AG sticks to the outlook it gave at its annual press conference on
March 28, 2013.
The measures required to ensure long-term growth were initiated in 2012. To
counter the continuing difficulties in the company's core market,
investments in establishing new, promising business segments and product
groups are required. Gigaset AG therefore expects from continuing
operations in the current fiscal year:
- A further decline in revenue in its core business in a high
single-digit to low double-digit percentage range.
- EDITBA to improve sharply year on year and presumably to be positive
again thanks to the positive impact expected from the efficiency
program
- A negative free cash flow in around the middle double-digit million
range due to the investments required
For 2014, Gigaset AG expects initial and significantly positive effects on
revenue, earnings and cash flow from establishment of the new business
segments. The company therefore assumes that its revenue from continuing
operations will grow and its EBITDA will improve further in the course of
2014.
http://blog.gigaset.com.
Gigaset AG, Munich, is an internationally operating company in the area of
communications technology. The Company is Europe's market leader in DECT
telephones. The premium supplier ranks second worldwide with around 1,400
employees and a market presence in around 70 countries.
Gigaset AG is listed on the Prime Standard of Deutsche Börse and so is
subject to the very highest requirements for transparency. Its shares are
traded on the Frankfurt Stock Exchange under the symbol 'GGS' (ISIN:
DE0005156004).
Contact:
Gigaset AG
Stefan Zuber, Corporate Communications Kerstin Diebenbusch, Investor
Relations
Phone: +49 (0)89 444456-866 Phone: +49 (0)89 444456-937
E-mail: info.presse(at)gigaset.com E-mail: info(at)gigaset.com
End of Corporate News
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07.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Gigaset AG
Hofmannstraße 61
81379 München
Germany
Phone: +89444456937
Fax: +89444456930
E-mail: kerstin.diebenbusch(at)gigaset.com
Internet: www.gigaset.com
ISIN: DE0005156004
WKN: 515600
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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224537 07.08.2013
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