DGAP-News: Gigaset AG / Key word(s): Final Results
Gigaset rigorously continues its reconstruction. Crucial steps to
stabilize the company reap success.
26.03.2014 / 07:55
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2013 annual results:
Gigaset rigorously continues its reconstruction.
Crucial steps to stabilize the company reap success.
- Consolidated revenue from continuing operations in 2013: EUR 371.2
million (-11.5 percent)
- EBITDA from continuing operations improves to EUR +11.1 million
(EUR -2.8 million in 2012 )
- New efficiency program to cut costs by EUR 17.5 million adopted
- Business Customer Business Unit grows revenue by 19 percent
- CFO Dr. Alexander Blum: "Last year, we were able to complete critical
steps toward the stabilization of Gigaset. The successful resolution of
financing measures has significantly strengthened our capital base. The
effective implementation of the efficiency program has greatly improved
our profitability.""
Munich, March 26, 2014. Gigaset AG has been able to report a positive
EBITDA - of EUR11.0 million - in 2013 for the first time since fiscal 2011.
This is due in particular to the positive effects to an amount of EUR30
million a year from the efficiency program that was announced in 2012. The
program has been accomplished to its full extent. These effects will now be
fully felt as of fiscal 2014. The declining market for cordless phones
meant revenue from continuing operations fell by 11.5 percent to EUR371.2
million. Capital resources improved thanks to the successful capital
measures. The equity ratio rose to 14.5 percent (equity ratio in Q3/2013:
3.6 percent).
The overall market for cordless phones in Europe declined by around 14
percent in terms of revenue in 2013. Gigaset was able to maintain its high
market share in cordless voice phones in fiscal 2013 and even expand it
slightly to 34.7 percent in its focal European markets. In order to
compensate for drops in revenue in its core business in the medium and long
term, Gigaset entered the home networks segment, a solution market that is
growing strongly according to observers, by launching "Gigaset elements" in
the third quarter. Gigaset also put its first tablet PCs on the market in
December.
Gigaset business numbers for 2013 are as follows:
- Consolidated revenue from continuing operations in 2013: EUR371.2
million (2012: EUR419.6 million)
- EBITDA from continuing operations in 2013: EUR11.0 million (2012:1 EUR
-2.8 million)
- Consolidated net income from continuing operations in 2013: EUR -34.6
million (2012:1 EUR -26.0 million)
- Free cash flow from continuing operations in 2013: EUR -40.3 million
(2012:1 EUR -33.1 million)
Gigaset generated a positive free cash flow of EUR4.5 million in the fourth
quarter. EBITDA in Q4 was negative, in particular due to non-recurring
special effects (including costs for capital measures and reorganizing the
sales model in Brazil).
- Consolidated revenue from continuing operations was EUR111.0 million in
Q4/2013 (Q4/2012: EUR123.5 million)
- EBITDA from continuing operations was EUR -3.7 million in Q4/2013
(Q4/2012: EUR -5.5 million)
- Consolidated net income from continuing operations was EUR -18.2
million in Q4/2013 (Q4/2012: EUR -13.3 million)
- Free cash flow from continuing operations in Q4/2013 was EUR4.5 million
(Q4/2012: EUR3.3 million).
Charles Fränkl, CEO of Gigaset AG, comments on the annual results: "Gigaset
is undergoing what is probably the largest phase of reconstruction in its
history. In 2013 we successfully turned the company from just being a
vendor of cordless phones into one offering a broad portfolio of hardware,
software and Internet services and so created the technological platform on
which we intend to grow profitably again in future. The strong growth of
our Business Customer Business Unit shows that our Gigaset 2015 strategy is
working. The strategic partnership with Goldin opens up further new
perspectives for us."
First round of financing in 2013 completed
In 2013, Gigaset successfully placed two capital increases and a
convertible bond in the amount of approximately EUR 50 million. However,
further financing activities will also play a role in 2014 in order to fund
the growth objectives of the new business segments and the reorganization
of the company required for that. Additional capital measures are
constantly being examined for that purpose. The general conditions for them
have improved substantially now that Goldin has taken a stake in the
company.
The Executive Board has adopted a further efficiency program to counteract
the continuing loss of revenue and seasonally related weaker business in
the summer months. The goal is to achieve savings of EUR17.5 million, in
particular in non-personnel costs and other operating costs, by the end of
September.
Dr. Alexander Blum, CFO of Gigaset AG, explains: "Last year, we were able
to complete critical steps toward the stabilization of Gigaset. The
successful resolution of financing measures has significantly strengthened
our capital base. The effective implementation of the efficiency program
has greatly improved our profitability."
Outlook
The measures required to ensure long-term growth were initiated in 2012. To
counter the continuing difficult trend in the company's core market,
investments in establishing new, promising business segments and product
groups are also still required. In 2014, the new business segments will
make additional contributions to revenue, but these will not yet be able to
compensate fully for the market-related decline in the cordless voice
business. Gigaset therefore expects in the current fiscal year in the
Business Units Consumer Products, Business Customers and Home Networks
(excluding tablets and mobile):
- A decline in revenue in continued operations in a high single-digit to
low double-digit percentage range.
- EDITBA to improve sharply year on year and to be positive again and an
EBITDA margin in the upper single-digit percentage range thanks to the
positive impact expected from the efficiency programs.
- A negative free cash flow in the low double-digit million range, among
other things due to the investments required in establishing new
business segments and the reconstruction of the company.
In addition, Gigaset expects additional revenue from tablet and smartphone
business; however, they are difficult to predict due to the fact that the
company is in the early stages of establishing the joint activities with
Goldin Fund Pte. Ltd.
Overview of development of the Business Units
Consumer Products and Home Networks
As in 2012, the market for cordless phones declined sharply last year.
Gigaset was able to grow its market share further in its focal European
markets and add 1 percent in terms of units and 1 percent in terms of
revenue. However, the overall market for cordless phones in Europe declined
by around 14 percent, which was reflected in Gigaset AG's revenue from its
core business.
Gigaset is countering this trend by entering new business segments, as well
as expanding its portfolio in the Consumer Products Business Unit. In the
third quarter, it launched the Android-based SL930A full-touch phone, a
product that combines the benefits of a smartphone with the familiar
high-quality finish and merits of a Gigaset fixed-network phone. The
Android 4.0 interface permits quick and easy access to the Google Play
Store directly via the router. More than 975,000 apps are available from
Google Play. Gigaset sees the SL930A as pointing the way to new and highly
promising cloud-friendly products. It was initially rolled out in Germany,
followed by other European countries in the fourth quarter.
As part of its implemented product drive, Gigaset also launched new
cordless phones for various application areas: The A415, an easy-to-use,
solidly equipped entry-level model, the C430, an all-rounder in the
midrange, and the E630, a product that is even able to cope with very heavy
stresses and strains, yet has a fine design.
Gigaset products again fared impressively in various tests in the past
fiscal year. In August, the S820A touch & type phone was chosen as Product
of the Year by the readers of connect. In Spain, it captured the "100
Mejores Ideas" award for particularly innovative ideas. The consumer portal
"testsieger.de" awarded Gigaset the title "Premium Manufacturer 2012" in
the category "Telephones" as part of a large-scale study at the start of
the third quarter. The award is only bestowed on companies with the very
highest standards of quality and whose products are tested regularly in
trade publications and fare above-average.
Gigaset also reviewed its non-European activities in 2013 with the aim of
focusing on highly profitable markets. As a result of this review, the
company withdrew from the unprofitable cordless phone business in Brazil.
The subsidiary responsible for the Middle East and Africa region was sold
to management there. In Mexico, the business model was successfully
reorganized. Strategic partnerships were concluded with two powerful
distributors.
In December 2013, Gigaset entered the rapidly growing market for tablets
with two new Android-based models in an 8" and 10.1" format. That marked
the completion of the next step in expansion of the Gigaset 2015 strategy.
The main focus of their launch was initially Germany; however, additional
European countries then began marketing the tablets.
In the second quarter of 2013, Gigaset entered the growth market of the
"Internet of Things" with "Gigaset elements." Sales of the cloud-based home
network system, which can be extended in a modular fashion, began in
September through the network of specialty retailers in Germany and online.
It was then launched in October in France, the third-largest smart home
market in Western Europe. Revenue in the low single-digit million range was
generated with it in the past fiscal year.
Business Customers
The Business Customers Business Unit continued to build its revenue in
fiscal 2013. Revenue increased by 19 percent year on year thanks to a
portfolio tailored to specific target groups and selective sales and
marketing measures.
In expanding its business, Gigaset continues to attach great importance to
cooperating with value added resellers. In the second quarter, it therefore
initiated a partner program to help these sales partners market telephone
systems and end-user devices for small and medium-sized enterprises.
The company continued to drive its regional expansion. The company expanded
its sales organizations in the regions Austria, Switzerland, the UK and the
countries of Scandinavia.
The portfolio of products and services was developed further to reflect
customers' needs. Gigaset pro and AudioCodes, a leading Microsoft Lync
partner, jointly created a solution that enables Gigaset N720IP Pro DECT
multicell telephone systems to be used in Microsoft Lync environments. This
solution now means that cordless calls are possible anytime, anywhere - at
the company and throughout its campus - in Lync installations as well.
In September, the R630H pro was launched, a new business phone whose
ruggedness makes it suitable for companies with employees who work outside
traditional office rooms. The device is particularly dust- and splash-proof
and has the additional advantage of impact resistance, as well as offering
maximum ease of use, especially in tough conditions.
Gigaset pro products were able to capture various prizes and awards in the
third and fourth quarters. In France, Gigaset pro was voted the best
manufacturer of SIP-based end-user devices in a survey of resellers. Above
all, Gigaset fared very well in terms of brand image. In Germany, the N720
DECT IP multicell telephone system was voted ICT Product of the Year 2013
by readers of the Funkschau magazine and in the Netherlands the R630H won
the "Product and Accessory Award 2013 - Bronze."
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
Phone: +49 (0) 89 444456-866
E-mail: info.presse@gigaset.com
End of Corporate News
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Language: English
Company: Gigaset AG
HofmannstraÃe 61
81379 München
Germany
Phone: +89444456937
Fax: +89444456930
E-mail: kerstin.diebenbusch@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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259532 26.03.2014
DGAP-News: Gigaset rigorously continues its reconstruction. Crucial steps to stabilize the company reap success.
| Quelle: EQS Group AG