Gigaset AG starts the first quarter solidly and gains new sales partners

-  Consolidated sales revenue from continuing operations at the previous year's level with a good EUR 112 million
-  Adjusted EBITDA from continuing operations in the amount of EUR 10.9 million (Q1/2011: EUR 12.1 million)
-  Earnings per share from continuing operations at EUR 0.08
-  Signing of new sales partnerships and exclusive sales agreements
-  Confirmation of expected consolidated revenue from continuing operations being on last year's level
-  Key figures up to 2015 on the basis of the strategic expansion of the business areas to be published with the half-year results
-  CEO Charles Fränkl: "Our core business Cordless Voice is stable and, together with our sound financial position, will give us the possibility to develop new internet-based growth platforms”.


Gigaset AG, a leading global supplier of communications technology and Europe's market leader in DECT telephones started the fiscal year soundly as expected. The Group also signed a new sales partnership in the first quarter with a leading European hypermarket retailer for Southern Europe as well as an exclusive sales agreement with an important Northern European operator. This resulted in the further consolidation of the Company's position as market leader in the area of Cordless Voice.

Consolidated sales revenue from continuing operations remained around the prior year's level with a good EUR 112 million (Q1/2011: EUR 115 million). EBITDA in the first quarter was around EUR 10.7 million (Q1/2011: 14.4 million). The decrease can be attributed, among other things, to costs and investments in new growth platforms. Adjusted for non-recurring effects, EBITDA from continuing operations was EUR 10.9 million (Q1/2011: EUR 12.1 million). The adjusted EBITDA margin was thus 9.7 percent (Q1/2011: 10.5 percent). Consolidated profit from continuing operations increased by approximately 30 percent in the reporting period to around EUR 3.9 million (Q1/2011: EUR 3 million).

Earnings per share (diluted) from continuing operations increased to EUR 0.08 (Q1/2011: EUR 0.06). The Gigaset Group increased its equity ratio to 27.4 percent after 24.5 percent as of December 31, 2011. Free cash flow was EUR -16.3 million (Q1/2011: EUR 2.1 million). This is mainly due to seasonal factors, since in particular industry-specific trade liabilities from the past Christmas shopping season were settled. In comparison to the prior-year period, cash funds rose by almost EUR 9 million to EUR 48.3 million

Charles Fränkl took over as Chairman of the Executive Board in the reporting period as of January 1, 2012, and reorganized the division of responsibilities in the management board. Fränkl is responsible, among other things, for Innovation & Strategy, Marketing, and Mergers & Acquisitions. Dr. Alexander Blum heads, among other things, the Finance, Legal and Human Resources departments. Maik Brockmann is responsible for worldwide sales operations. 

The Executive Board plans to present the key points of the Company's future orientation during the annual shareholders' meeting on June 12, and also to present the specific strategy through 2015 with the publication of the half-year results on August 8. Accordingly, numerous product innovations and further developments will also be presented for the first time at the IFA trade show in Berlin at the beginning of September 2012, showing the strategic and evolutionary expansion of the company to new business areas. One of the most recent Gigaset innovations on the market – the flagship model SL 910 – will receive an innovation award from the Spanish economic magazine Actualidad Económica. In addition, the SL 910 significantly exceeded sales expectations in the reporting period. 



 The further development in fiscal year 2012 will be driven mainly by the possible effects of the financial crisis on the main sales market Europe and the associated consumer climate as well as the volatile trend on the currency markets. 

The Company continues to expect sales revenues at the level of continuing operations in 2011. Amidst a slightly receding market environment, Gigaset thus anticipates growth above the level of the market as a whole. Net operating income will not reach the prior year's level, not least as a result of the development of new growth segments. The Company expects free cash flow to at least break even for 2012 due to its stable business.

Charles Fränkl, Chairman of the Executive Board of Gigaset AG: "Our core business Cordless Voice is stable. Together with our sound financial position, that gives us the necessary discretionary room for maneuver to develop new web-based growth platforms for Gigaset and to supplement them with specific strategic acquisitions."


Gigaset AG, Munich, is a worldwide operating company in the telecommunication and accessories sector. The company is a leading global producer of cordless phones and Europe’s market leader in DECT phones. Internationally, the premium provider with 1,600 employees is represented in more than 70 countries and is ranked in third place in its sector.

The Gigaset AG shares are traded in the TecDAX (Prime Standard) of the Frankfurt Stock Exchange. Symbol: GGS, ISIN: DE0005156004.


Gigaset AG
Kerstin Diebenbusch
Investor Relations
Tel.: +49 (0)89 444456-937



An overview of the figures:


Jan. 1 – Mar. 31, 2012 Jan. 1 – Mar. 31, 2011
€ (000) Continuing operations Total Continuing operations Total
Consolidated sales revenue 112,220 120,031 115,020 150,176
Earnings before interest, taxes,
depreciation and amortization (EBITDA)
10,665 10,385 14,385 19,965
Earnings before interest and taxes (EBIT) 4,883 4,603 7,115 12,808
Consolidated profit 3,903 3,590 3,041 8,583
Earnings per share (diluted) in EUR 0.08 0.07 0.06 0.17
Free cash flow -16,285 2,139
€ (000) Mar. 31, 2012 Dec. 31, 2011
Total assets 291,019 311,360
Consolidated equity 79,708 76,233
Equity ratio (in %) 27.4 24.5



« Back to OverviewTop