Copenhagen, 2011-05-05 08:01 CEST (GLOBE NEWSWIRE) -- For GN Store Nord, the continued launch of ReSound Alera™ as well as growth in Unified Communications (UC), delivered consolidated organic growth of 7% in Q1 2011. GN Store Nord EBITA improved from DKK 86 million in Q1 2010 to DKK 97 million in Q1 2011 after a duty/tax-related DKK 25 million one-time provision.
For GN ReSound, organic growth in Q1 was 9%, driven in particular by strong organic growth of 23% in North America based on a continued strong uptake of the first wave of ReSound Alera™ products. Additionally, the second wave of ReSound Alera™ form factors was introduced during Q1. Based on the experience gained to date from the ReSound Alera™ launch, especially in North America, the GN ReSound revenue guidance for 2011 is adjusted from ”more than 4% organic growth” to “more than 6% organic growth”. In Q1, GN Resound EBITA was DKK 52 million – adversely impacted by a one-time provision of DKK 25 million related to a duty/tax claim in an emerging market. Consequently, GN ReSound changes the EBITA guidance for 2011 from “DKK 450-500 million” to DKK 425-475 million”.
For GN Netcom, organic growth was 5% driven by healthy 15% growth in CC&O Headsets partly offset by (15)% organic growth in Mobile Headsets. The negative growth in Mobile Headsets was primarily driven by weak market conditions in North America related to destocking in the channel of competitor products. EBITA more than doubled compared to Q1 2010 and ended at DKK 56 million. Based on the accelerating deployment of UC, GN Netcom raises the EBITA guidance for 2011 from “DKK 250-300 million” to “DKK 275-325 million”.
For GN Store Nord combined, the revenue guidance is adjusted based on the encouraging ReSound Alera™ launch from “more than 6% organic growth” to “more than 7% organic growth”. As a result of the positive development in UC combined with the GN ReSound duty/tax-related one-time provision of DKK 25 million, the GN Store Nord EBITA guidance for 2011 is maintained at “DKK 675-775 million”.
Highlights
- Total revenue was DKK 1,298 million corresponding to 7% organic growth compared to Q1 2010.
- Group EBITA was DKK 97 million up from DKK 86 million in Q1 2010. Q1 2011was impacted by a duty/tax-related DKK 25 million one-time provision.
- GN ReSound revenue was DKK 820 million, equivalent to organic growth of 9%. EBITA was DKK 52 million, down from DKK 70 million last year. EBITA was adversely impacted by a DKK 25 million one-time provision related to a duty/tax-related claim in an emerging market.
- GN Netcom revenue was DKK 476 million equivalent to organic growth of 5% and EBITA was DKK 56 million – more than a doubling compared to DKK 26 million last year. CC&O organic growth was 15%.
- Based on the encouraging launch of ReSound Alera™, the revenue guidance for GN Store Nord for 2011 is adjusted from “more than 6% organic growth” to “more than 7% organic growth”. Also, with the positive development within Unified Communications combined with the GN ReSound duty/tax-related one-time provision of DKK 25 million, the EBITA guidance for GN Store Nord is maintained at “DKK 675-775 million”.
- The guidance for 2011 for amortization of intangible assets and financial items is changed from “approximately DKK (50) million” to” DKK (50)-(75) million” as GN has swapped the interest on the current debt from a floating to a fixed rate.
- GN continues to forcefully pursue all legal means in the TPSA case to ensure that the final and legally binding ruling from the Austrian Arbitration Tribunal is fulfilled. During Q1, TPSA’s challenges of the Austrian arbitrators’ integrity have been dismissed by the Federal Chamber of Commerce in Vienna.
- On March 18, 2011, Anders Boyer was appointed CFO of GN ReSound in addition to his overall responsibilities as CFO of GN Store Nord and part of GN’s Executive Management. Tom Zachariassen, previously Vice President of Business Controlling in GN Netcom has been appointed CFO of GN Netcom.
”In Q1, we saw encouraging topline growth driven by ReSound Alera™ and the corresponding Beltone True™ family, including the wireless accessories. Organic revenue growth reached 9% mainly as a result of the first wave of form factors launched in 2010. During Q1, we launched the second wave of form factors and based on the experience so far we are adjusting the revenue guidance for 2011 upwards,” says CEO GN ReSound, Lars Viksmoen.
”Continued growth in the UC segment had a significant impact on the first quarter and we have closed a number of new agreements with large, global companies, where GN Netcom is delivering headsets for their UC solution. As a result of the continued positive development we experience in the UC segment, GN Netcom is raising the EBITA guidance for 2011 from “DKK 250-300 million” to “DKK 275-325 million”,” says CEO GN Netcom, Mogens Elsberg.
For further information, please contact:
Mikkel Danvold
VP, IR & Communications
GN Store Nord A/S
Tel: +45 45 75 02 71
