Copenhagen, 2011-11-10 08:00 CET (GLOBE NEWSWIRE) -- GN Store Nord delivered strong improvements in earnings and continued to gain market share during the third quarter. Organic revenue growth reached 12% compared to last year, driven by the ReSound Alera™ product family and strong UC performance in GN Netcom. Consolidated EBITA improved from DKK 62 million in Q3 2010 (excluding the TPSA award) to DKK 173 million in Q3 2011.
Based on the continued improvements in the fundamentals of the businesses, GN initiates a new share buyback program of DKK 200 million. The program will start today and end no later than March 22, 2012, the day of GN Store Nord’s Annual General Meeting.
GN ReSound continued to gain market share in Q3 2011 - for the 5th consecutive quarter. Organic revenue growth in Q3 2011 was 9% and the profitability improved according to plan. In Q3 2011, EBITA was DKK 107 million (EBITA margin of 12.7%) significantly up from DKK 68 million (EBITA margin 8.6%) in Q3 2010. At the EUHA 2011 conference, GN ReSound announced further powerful additions to the unique ReSound Alera™ family and is well positioned for continued growth.
GN Netcom delivered organic growth of 19% driven by double digit revenue growth rates in both CC&O and Mobile. The strong performance is primarily driven by UC and growth in the APAC and EMEA mobile markets. In Q3 2011, GN Netcom EBITA was DKK 74 million compared to DKK 50 million in Q3 2010. The EBITA margin of 14.3% for Q3 2011 resulted in GN Netcom reaching the highest Q3 EBITA-margin for more than a decade.
GN Store Nord confirms the overall full-year guidance announced in the Interim Report Q2 2011. The overall revenue guidance is unchanged. Based on the strong performance for ReSound Alera™, the guidance for organic revenue growth for GN ReSound is increased by 1 %-point. A weak market for mobile headsets in the US leads to an adjustment of the revenue guidance for GN Netcom to “Around 8% organic growth”.
Highlights
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GN’s total Q3 revenue was DKK 1,359 million corresponding to 12% organic growth compared to Q3 2010.
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Group EBITA was DKK 173 million up from DKK 62 million in Q3 2010 (excluding the TPSA award).
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The free cash flow was positive at DKK 76 million in Q3 2011.
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GN ReSound revenue was DKK 841 million, equivalent to organic growth of 9%. EBITA was DKK 107 million, up from DKK 68 million in Q3 2010.
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GN Netcom revenue was DKK 516 million, equivalent to organic growth of 19%, and EBITA was DKK 74 million, up from DKK 50 million last year.
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At the EUHA 2011 conference, GN ReSound announced new strong additions to the Alera™ family building on our acoustic and technological advantages including superior wireless connectivity of ReSound Alera™.
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GN continues to pursue all legal means in the TPSA case in order to ensure that the final and legally binding ruling from the Austrian Arbitration Tribunal dated September 3, 2010, is fulfilled. In the enforcement proceedings in Ireland, TPSA has now been required to provide security. For full-year 2011 accrued interest on phase 1 will accumulate to more than DKK 100 million.
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On November 9, 2011 the Commercial Court (Handelsgericht) in Vienna, Austria announced that the request made by TPSA to set aside the award of DKK 2.9 billion rendered for Phase 1 on September 3, 2010, by the Arbitration Tribunal had been dismissed. Additionally, TPSA was required to compensate DPTG EUR 190,000 in legal costs. TPSA also had to pay a court fee to the Commercial Court of EUR 3.2 million.
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On October 31, 2011 DPTG filed an additional claim for damages of DKK 280 million, as a result of TPSA's failure to comply with the award for phase 1. So far this indicates that TPSA has added more than half a billion DKK in additional costs to themselves and their shareholders, by not complying with the ruling.
- On August 11, 2011 GN launched a DKK 200 million share buyback program. The program was completed on October 14, 2011.
Quotes from the executive management:
“We are very happy to announce that we gained market share for the 5th consecutive quarter. We are also pleased to announce that our profit margin improved according to our plans. With our latest additions to the unique ReSound Alera™ hearing instrument family we are in a good position to continue to grow and improve profitability,” says CEO GN ReSound, Lars Viksmoen.
“We have delivered an organic revenue growth of 19% in Q3 resulting in a significant increase in our profit margin. This is not least due to the continued significant growth within Unified Communications where we have entered into a number of large agreements in Q3,” 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
