Gigaset AG (ISIN: DE0005156004), a leading international company in the area of communications technology, today published its report for the first quarter of 2023. Gigaset recorded an appreciable 12.7% increase in revenues. EBITDA was more than doubled.
The company posted total revenues of EUR 57.7 million (Q1 2022: EUR 51.2 million) and earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 2.1 million (Q1 2022: EUR 0.8 million) in the first quarter of 2023.
“The first quarter shows that the new corporate strategy is bearing fruit,” says Dr Magnus Ekerot, CEO of Gigaset AG. “The focus on our way of working, a customer-centric portfolio of products and solutions, and a clearly aligned go-to-market approach have been able to deliver results and growth within a short space of time. Effective collaboration, innovative products and maximum focus in everything we do are our maxims. By managing these controllable factors ourselves, we achieve stronger customer loyalty, differentiating products and greater cost efficiency and profitability. We are committed to quality products and solutions ‘Made in Germany’ and to dedicated sustainability initiatives.”
Performance by segments
In the primarily consumer-oriented Phones, Smartphones and Smart Home segments, revenues totaled EUR 41.8 million, a significant 13.3% increase compared with the same quarter of the previous year (Q1 2022: EUR 36.9 million). Revenues in the Professional B2B segment rose by 11.2% year over year to EUR 15.9 million (Q1 2022: EUR 14.3 million).
The Phone segment performed especially well in the first quarter of 2023. An easing in the supply chain situation contributed to revenues growing by 13.9%. In this positive environment Gigaset gained further market share in the EU6 and increased revenues to EUR 36.9 million. Gigaset is sticking to its strategy of positioning itself as the vendor of choice for premium phones with outstanding quality, features and services and thereby capturing further market share.
The Smartphones segment successfully followed on from its pleasing performance in fiscal 2022 in the first quarter of 2023. Its revenues came in at EUR 4.7 million, a year-on-year increase of 11.9% (Q1 2022: EUR 4.2 million). The main revenue drivers in this segment were the GS5 and GX6 models, which also successfully entered the B2B segment. Gigaset sees substantial growth for smartphones in the B2B segment and is increasingly focused on addressing industry and the handicraft sector with its solutions.
Smart Home offers room for growth. Its revenue fell year over year by 33.3% to EUR 0.2 million (Q1 2022: EUR 0.3 million). The diverse standards and players in the smart home market, as well as the overall subdued revenue growth, mean that this segment still requires management’s close attention.
However, the Professional business segment performed extremely pleasingly in the first quarter of 2023, which was attributable to factors such as catch-up effects from the 2022 fiscal year and an investment backlog on the customer side. Its revenues rose year over year by 11.2% to EUR 15.9 million (Q1 2022: EUR 14.3 million).
“From a macroeconomic perspective, there are still numerous challenges in 2023,” says Thomas Schuchardt, CFO of Gigaset AG. “We are therefore particularly proud to have nevertheless grown revenues and EBITDA sharply. This positive performance is due to catch-up effects, as well as high demand and new projects. The procurement and supply chain situation has also improved.”
From Gigaset’s perspective, fiscal 2023 will continue to be shaped by external factors to which the company can only respond to a limited extent. Despite the ongoing challenges, Gigaset remains optimistic and is focusing on developing innovative products and solutions for its customers.
General statement by the Executive Board for 2023
Given the assumptions stated in the forecast in the quarterly report and assuming that there is no sudden and significant deterioration in the situation as regards the war in Ukraine or supply chains, Gigaset anticipates the following positive financial performance, financial position and cash flow situation in fiscal 2023:
- • A moderate increase in revenues (EUR 241.3 million in 2022)
- • A significant increase in EBITDA (EUR 17.9 million in 2022) and
- • A significant increase in free cash flow (EUR 1.0 million in 2022)
The complete report on the first quarter of 2023 can be found on the Gigaset website.