Copenhagen, 2011-08-11 07:59 CEST (GLOBE NEWSWIRE) -- The continued launch of ReSound Alera™ as well as growth in Unified Communications (UC) delivered consolidated organic growth of 9% in Q2 2011. GN Store Nord EBITA improved from DKK 113 million in Q2 2010 to DKK 136 million in Q2 2011.
For GN ReSound, organic growth in Q2 was 9%, driven in particular by strong organic growth in North America backed by a continued strong uptake of the ReSound Alera™ products and the corresponding Beltone True™ family. In Q2, GN Resound EBITA was DKK 74 million. GN ReSound has entered into a technology development and license agreement for the 2.4 GHz wireless technology with Cochlear, the global leader in implantable hearing solutions. The agreement clearly underlines the increasing recognition in the marketplace of the 2.4 GHz technology.
For GN Netcom, organic growth was 8%, driven by healthy 14% growth in CC&O, which was partly offset by (3)% organic growth in Mobile. Based on the relatively stronger margins in CC&O compared to Mobile, GN Netcom achieved an EBITA margin of 14.0% in Q2 2011 and EBITA ended at DKK 70 million (up 35% compared to Q2 2010). In June, GN Netcom and Logitech entered into a distribution agreement in order to seize the significant growth opportunity within Unified Communications (UC). Under the agreement, Logitech will sell three products under the co-branded name “Logitech powered by Jabra” – initially in North America.
GN confirms the consolidated full-year guidance announced in the Q1 Interim Report 2011. With the current visibility and expectations, GN ReSound is most likely to end in the low end of the EBITA guidance of DKK 425-475 million and GN Netcom is most likely to end in the high end of the EBITA guidance of DKK 275-325 million. The full year guidance is based on a DKK/USD exchange rate of 5.5. Additionally, the guidance is based on the assumption that the recent turmoil in the financial markets will not have a material negative impact on the markets for our products.
As previously communicated, a significant improvement in earnings is expected in the second half of 2011, especially in GN ReSound, where the transformation of the supply chain set-up will be a major contributor.
Highlights
- Total revenue was DKK 1,334 million corresponding to 9% organic growth compared to Q2 2010.
- Group EBITA was DKK 136 million up from DKK 113 million in Q2 2010.
- The free cash flow was positive at DKK 61 million in Q2 2011.
- GN ReSound revenue was DKK 827 million, equivalent to organic growth of 9%. EBITA was DKK 74 million, up from DKK 63 million last year.
- GN Netcom revenue was DKK 503 million, equivalent to organic growth of 8%, and EBITA was DKK 70 million, up 35% from DKK 52 million last year.
- GN continues to pursue all legal means in the TPSA case in order to ensure that the final and legally binding ruling dated September 3, 2010, from the Austrian Arbitration Tribunal is fulfilled. On July 25, 2011, TPSA’s remaining two challenges against the independence of the arbitrators were firmly dismissed by the President of the Austrian Federal Economic Chamber. On July 27, 2011, GN – in line with expectations – received notification from the District Court in Warsaw that the enforcement proceedings in Poland have been postponed until a final and non-appealable decision has been rendered in the ongoing setting-aside court case in Austria.
- In accordance with IFRS accounting principles and based on the positive developments of the TPSA proceedings, GN has booked accrued penalty interest of DKK 60 million in accordance with the Arbitration Tribunal’s ruling in respect of Phase 1.
- The guidance for amortization of intangible assets and financial items is changed from “DKK (50)-(75) million” to “DKK 0-(25) million” based on the accrual of interest income on the TPSA case.
- As announced on August 10, 2011, a DKK 200 million share buyback program has been initiated.
”We are pleased with the progress of the business. In the second quarter, GN Netcom has entered into a number of UC agreements with several leading global companies all with a deployment base of above 30,000 seats. In Q2, we also closed a distribution agreement with Logitech. The agreement enables us to further expand Jabra’s presence in the North American sales channels,” says CEO GN Netcom, Mogens Elsberg.
“Again, we were able to deliver strong growth in GN ReSound and, with 9% organic growth, we clearly have gained market share. Furthermore, entering into a Technology Development and License agreement with Cochlear, the global leader in innovative, implantable hearing solutions, is a strong recognition of GN ReSound’s groundbreaking use of the 2.4 GHz wireless technology. GN ReSound’s 2.4 GHz wireless technology is clearly a technology of the future for wireless streaming in hearing instruments,” says CEO GN ReSound, Lars Viksmoen.
For further information, please contact:
Mikkel Danvold
VP, IR & Communications
GN Store Nord A/S
Tel: +45 45 75 02 71
