Due to ongoing market share gains, Gigaset AG expects almost stable revenues of EUR 93.441 million (Q2 2011: EUR 95.371 million) from continuing operations in the second quarter of 2012 according to preliminary calculations. Because of the previously announced investments in new growth areas and increased costs due to the ongoing strength of the U.S. dollar, the EBITDA is estimated to amount to only EUR 0.01 million in the second quarter. In the second quarter of 2011 the EBITDA amounted to EUR 11.233 million. At the time, this was also positively influenced by non-recurring effects. The free cash flow is expected to amount to EUR -11.723 million in the second quarter of 2012 (Q2 2011: EUR 0.524 million).
Due to the ongoing Euro crisis, the related decrease in consumer spending, and the Euro expected to remain weak, the company expects the following for the entire year 2012:
- a decrease in revenues in the single-digit percentage range
- earnings before interest, taxes, depreciation and amortization (EBITDA) significantly below that of the previous year in the single-digit million range
- a negative free cash flow in the low double-digit million range
The reasons for this development are:
- In particular southern European countries, and thus important target regions for Gigaset AG such as Italy and Spain, are particularly strongly affected by the Euro crisis and the resulting decrease in consumer spending. In the core market, Germany, consumer confidence is beginning to worsen.
- The announced investments in new business areas and innovative products as well as in the further expansion of market share will have a negative effect on results during the transformation years 2012 and 2013.
- With the ongoing weakness of the Euro compared to the U.S. dollar, the EBITDA is strongly negatively affected by exchange rate effects.
Gigaset AG will continue to develop better than the overall European market and steadily increase its market share. Due to the current development, the company will continue with the company restructuring previously announced in the "Gigaset 2015" strategy, to expand its leading position in its core business, and expand its business model in the business customers and home networks areas. The company again expects profitable growth during the fiscal year 2014.
Gigaset AG will publish the full interim report for the second quarter of 2012 on August 8, 2012 as planned.
Gigaset AG, München, 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 1,700 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).
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