Munich, April 21, 2016:
- Consolidated revenue of €305.3 million (previous year: €326.1 million), a fall of 6.4%
- The new business segments of Business Customers (+23.9%) and Home Networks (+12.1%) grew further in 2015
- Result from core business before depreciation and amortization was €10.6 million, slightly down on the previous year (€11.8 million)
- Consolidated net loss for the year of €22.0 million (previous year: loss of €16.6 million), in particular as a result of the restructuring program (€19.5 million)
- Free cash flow improves to minus €9.7 million (previous year: minus €12.1 million)
- Group continues to be free of liabilities to banks
Gigaset generated revenue totaling €305.3 million (previous year: €326.1 million) in fiscal 2015 in a challenging economic environment. Successful expansion of the Business Customers segment continued to bear fruit. Revenue from telephone systems and business phones from the Gigaset pro product line increased by 23.9% to €46.6 million in fiscal 2015. Revenue on the Home Networks segment also grew by 12.1%.
While the result from core business before depreciation and amortization at the end of the year was €10.6 million, a slight decline of €1.2 million from the level of the previous year (€11.8 million), the consolidated net loss for the year was impacted in particular by non-recurring special effects due to the restructuring program totaling €19.5 million. The net loss was €22.0 million in absolute terms, but only €5.4 million lower year on year.
Taking account of the income of €0.0 million (previous year: €1.0 million) from the investment in Gigaset Mobile, operating income was minus €16.3 million (previous year: minus €10.5 million). Together with net interest income/expenses of minus €3.3 million (previous year: minus €2.3 million), income from ordinary activities was minus €19.5 million (previous year: minus €12.8 million). The consolidated net loss for fiscal 2015 was €22.0 million (previous year: €16.6 million).
Total assets of €221.1 million
The group's total assets at December 31, 2015, were €221.1 million, a decline of around 12.0% year on year. Non-current provisions rose in particular due to the addition to the restructuring provision. On the other hand, there were lower semi-retirement and warranty obligations. The decline in trade payables is mainly due to early payment of invoices in order to utilize cash discounts.
Free cash flow improves by nearly 20% over the previous year
The free cash flow is negative overall, but improved by a total of 19.8% compared to the previous year. The cash flow from operating activities fell due to early payment of invoices (utilization of cash discounts). The decline in cash flow from investing activities of €17.7 million is mainly due to an outflow of cash amounting to €18.0 million as part of transitional consolidation of the shares in Gigaset Mobile Pte. in the previous year.
Constantly high level of investment
Investments in the development of new products and solutions remain at a high level, as reflected in the rise in internal production capitalized and the 12.2% increase in investments for intangible assets. The free cash flow of minus €9.7 million (previous year: minus €12.1 million) thus reflects the continued large investments in new products, product segments and solutions. The group again did not have any liabilities to banks in 2015 and, because it has sufficient liquidity, will be able to establish new products successfully on the market in 2016.
In and outside the business segments Consumer Products, Business Customers and Home Networks, the company has identified new projects and product solutions on which the group will focus in the future in order to return its business to stable profitability and growth.
In accordance with the three-point plan communicated at the beginning of the year, Gigaset will also keep on working to strengthen its core expertise, create synergies in sales and further increase efficiency across all areas. "Restructuring of the company is a key element in our objective of returning it to sustained growth," says Hans-Henning Doerr, CFO of Gigaset AG. "Although last fiscal year's result is reduced by the provisions we made, this investment will have a positive impact on the company's earnings in 2016. From 2018, we will even be able to cut costs by an annual amount in the double-digit million euro range."
The company expects the market decline in its core business to slow down slightly in 2016. Business with cordless phones will continue to decline. Gigaset is thus making further investments in new, promising business segments and product groups. They will deliver additional contributions to revenue. It is still anticipated that the market-related decline in cordless phones will not be able to be compensated fully by that in 2016. Gigaset expects the following in the current fiscal year in the Business Units Consumer Products, Business Customers and Home Networks:
- A decline in revenue from continuing operations in a high single-digit to low double-digit percentage range.
- Positive EBITDA once more in the high single-digit to low double-digit million range. However, the EBITDA is expected to be slightly above that of the previous year despite lower revenue, the investments required in new business segments and restructuring of the company. An EBITDA margin in the low to middle single-digit range is anticipated.
- A negative free cash flow in the medium single-digit million range due to considerable investments in the new business segments.
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 is likewise the leader worldwide with around 1,250 employees and sales activities in around 70 countries. Under the name Gigaset pro, the company continues to develop and market innovative business telephony solutions for small and medium-sized enterprises. The company also operates in the smart home arena. Cloud-based security solutions are developed and marketed under Gigaset elements.
Gigaset AG is listed in the Prime Standard of Deutsche Börse and is therefore subject to the highest transparency requirements. Its shares are traded on the Frankfurt Stock Exchange under the symbol GGS (ISIN: DE0005156004).
Press Spokesman Gigaset AG
Telefon: +49 (0)89 444 456 866