Gigaset increases EBITDA to just under EUR 51 million

  • Sales revenue in the Gigaset Group at EUR 520.6 million 
  • Sale of participating interests completed as planned 
  • EBITDA increased to EUR 50.9 million with consistent efficiency program (2010: EUR 0 million)
  • EBITDA margin rose to just under 10 percent
  • Consolidated net profit of EUR 17.5 million (2010: minus EUR 100.6 million) underscores the success of focusing on the core business
  • CEO Fränkl: "The positive earnings are a strong basis to further develop Gigaset over Internet-based communications solutions." 

Gigaset AG, one of the worldwide leading manufacturers of cordless telephones and Europe's market leader in DECT telephones, successfully completed focusing on its core business in fiscal year 2011. 

Sales revenues decreased as planned to EUR 520.6 million (2010: EUR 1,009.5 million) as a result of the announced sale of all participating interests not belonging to the core business. In continuing operations, which simultaneously represent the basis for the following fiscal years, the Company earned EUR 458.6 million. Despite significant volatilities and consumer restraint in important sales markets, Gigaset increased its profitability to a net operating income (EBITDA) of EUR 50.9 million (2010: EUR 0 million). An EBITDA margin of just under 10 percent was realized as a result of a consistently implemented efficiency and cost-savings program. This way, the Company was able to reduce, for instance, expenses for the holding by 35 percent or EUR 8.4 million. 

The EBIT increased to EUR 22.0 million (2010: minus EUR 86.8 million). As a consequence, consolidated net profit was increased to EUR 17.5 million, after the Company had to record a loss of EUR 100.6 million in the prior year.

Free cash flow rose to EUR 22.5 million as of December 31, 2011 (2010: minus EUR 41.6 million). The Gigaset Group's equity amounted to EUR 76.2 million on the reporting date. At 24.5%, the equity ratio more than doubled compared to the prior year. 

Dr. Alexander Blum, CFO of Gigaset AG: "We increased our profitability significantly, despite adverse market conditions. The Gigaset Group's focus on communications technology is showing considerable success." The Company expects sales revenues for the current fiscal year to be at the level of continuing operations in 2011, in which case the Company would exceed the expectations for the market as a whole in its core business Cordless Voice. Net operating income is not expected to reach the prior year's level, not least as a result of the development of new growth segments. Nevertheless, the Company expects free cash flow to be at least balanced. The beginning development of new, fast-growing business segments will have a clearly positive impact on sales revenue and net profit starting in 2014.

Consistent focus on core competencies

In the fiscal year just ended, Gigaset AG continued its consistent focus on its core competencies. The participating interests that were no longer a part of the core business, Carl Froh Group, Oxxynova Group and van Netten Group, were sold already in the first half of the year. 

In the Cordless Voice segment, the Group clearly held on to its market position as number one in Europe over the competition.

Gigaset pro, the professional line for small and medium-sized enterprises (SME), was continually expanded by new products after its market launch in 2011. Gigaset entered into distribution contracts with numerous sales partners, including in Germany, Austria, France, the Netherlands, Italy, and the United Kingdom. Negotiations are currently ongoing in other countries and with other distributors.

Fränkl: Gigaset is using the trend toward Internet-based communications solutions 

Charles Fränkl, Chairman of Gigaset AG's Executive Board since January 1, 2012: "Gigaset is healthy and profitable in its core business segments. On this basis, we are pursuing two lines of attack: We are focusing worldwide on regional markets with fast-growing middle classes; for example, Russia. We will also develop new Internet-based growth platforms quickly and strategically with the know-how of our excellent developers. Gigaset orients itself consistently on the long-term market trends and the needs of its customers."


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



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