DGAP-News: Gigaset AG publishes report for the third quarter and first nine months of 2019

2019. november 29., péntek, 07:30







DGAP-News: Gigaset AG


/ Key word(s): Quarterly / Interim Statement/9 Month figures






Gigaset AG publishes report for the third quarter and first nine months of 2019








29.11.2019 / 07:30




The issuer is solely responsible for the content of this announcement.




Press release

Munich, November 29, 2019



Gigaset AG publishes report for the third quarter and first nine months of 2019 - Strong third quarter



  • Consolidated revenue in the first nine months of 2019 at EUR157.5 million

  • EBITDA more than doubled at EUR11.6 million

  • Significant improvement in operating cash flow and free cash flow

  • Outlook for 2019: Adjustment of revenue forecast with unchanged positive outlook for EBITDA and free cash flow

Gigaset AG (ISIN: DE0005156004), an internationally operating company in the area of communications technology, today published its report for the third quarter and first nine months of 2019. According to the report, consolidated revenue in the first nine months of 2019 was EUR157.5 million (previous year: EUR168,7 million). During this period, Gigaset significantly improved its earnings and cash flow, and both the result before depreciation and amortization (EBITDA) and the operating and free cash flow rose considerably.


"Margin quality and cash flow are two key performance indicators for us. We achieved a further improvement in these areas in the first six months," said Thomas Schuchardt, CFO of Gigaset AG. "We are continuing to work on the company transformation, focusing on our ecosystem. That"s why we are primarily looking on the medium and long-term development of the company and concentrating on Professional, Smart Home and Smartphones," adds Klaus Weßing, CEO of Gigaset AG.

Increase in revenue of 5.8% and strong improvement in earnings in the third quarter of 2019

Gigaset improved its consolidated revenue by 5.8% to EUR50.4 million (Q3 2018: EUR47.7 million) in the third quarter. At EUR4.9 million, the result before depreciation and amortization (EBITDA) was well up on the previous year (Q3 2018: minus EUR3.1 million), while the EBITDA and EBIT margin and consolidated net income also improved significantly.

EBITDA more than doubled in the first nine months at EUR11.6 million, operating cash flow and free cash flow improved significantly

The result before depreciation and amortization (EBITDA) rose by more than 150% in the first nine months of 2019 to EUR11.6 million (previous year: EUR4.5 million). Material and personnel costs were reduced compared to the first nine months of 2018. Strict cost management led to an increase in the EBITDA margin to 7.4% compared to 2.7% in the first nine months of 2018. Gigaset also succeeded in improving the operating cash flow to minus EUR3.7 million (previous year: minus EUR24.9 million) and the free cash flow to minus EUR15.1 million (previous year: minus EUR34.4 million).

Revenue by business segment

Revenue in the Phones business segment went down in the first nine months of 2019 in what continued to be a challenging environment by 6.9% to EUR110.1 million (previous year: EUR118.2 million).


With smartphones, Gigaset generated revenue of EUR7.5 million in the first nine months of 2019 (previous year: EUR9.2 million). The aim is to further expand this segment through more new developments. The new Gigaset smartphone flagship GS290 was presented recently, in time for end-of-year business in which the company expects a strong increase in revenue for this segment.


Revenue from smart home products once again rose significantly by 27.8% to EUR2.3 million (previous year: EUR1.8 million). The company sees further potential for its smart home products, whose range has been steadily expanded and now includes smart security, smart comfort and smart care.


Revenue in the Professional segment was EUR37.6 million in the first nine months of 2019 (previous year: EUR39.5 million). Gigaset is driving forward the expansion of the product portfolio and its market position by developing tailored solutions and services. The goal is to increase further sales potential in this highly project-driven and thus volatile business in the future.

Outlook for 2019: Adjustment of revenue forecast with unchanged positive outlook for EBITDA and free cash flow

In 2019, Gigaset is continuing to pursue the operational strategy it launched in 2016. Its entrepreneurial focus is on expanding the product portfolio while securing its Phones business. Accordingly, there will be an increase in research and development expenditure, part of which will be compensated for by strict cost management.


In November 2019, the company adjusted its expectations in relation to the outlook for the current fiscal year and, with regard to compensating for the factored-in decline in the market at the Phones segment, which Gigaset aims to cushion by expanding its activities and growing revenue in the Smartphones, Smart Home and Professional segments, now expects consolidated revenue below the previous year"s level. Actual revenue will also depend substantially in 2019 on end-of-year sales, which are typically volatile.


The outlook regarding EBITDA at the level of the previous year and a significantly improved free cash flow is reaffirmed unchanged.


The complete report on the third quarter of 2019 can be downloaded here.




Gigaset AG is an internationally operating holding company in the area of telecommunications technology. Gigaset Communications GmbH, a 100 percent daughter of the company is Europe"s market leader in DECT telephones and is also a leader in the international arena, with around 900 employees and sales activities in around 50 countries. The business activities of the Gigaset Communications GmbH also include smartphones, smart home and business telephony solutions for small, medium-sized and enterprise customers.



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29.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Gigaset AG

Bernhard-Wicki-Straße 5

80636 München

Germany
Phone: +89 444456 - 866
Fax: +89 444456 - 930
E-mail: info@gigaset.com
Internet: www.gigaset.com
ISIN: DE0005156004
WKN: 515600
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 922829





 
End of News DGAP News Service





922829  29.11.2019 



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