EBITDA sharply improved – Company presses ahead with entry into new business segments
- Consolidated sales from continuing operations in 2013: €371.2 million (-11.5 percent)
- EBITDA from continuing operations improves to € +11.1 million (€ -2.8 million in 2012)
- Free cash flow from continuing operations of € -41.5 million in fiscal year 2013€ and +3.3 million in the fourth quarter
- Capital measures improve capital resources and increase equity ratio to 14.3 percent (equity ratio in Q3 2013: 3.6 percent)
- Market continued to decline in core business Entry into the growing markets for tablets and home networks
Munich, February 6, 2014. Pursuant to provisional, unaudited figures, Gigaset AG will remain within its forecast for fiscal year 2013. The EDITBA improved sharply due to the positive effects of €30 million from the cost-cutting program announced in 2012, which was accomplished in its entirety and will unfold its full impact in 2014.
The overall market for cordless phones in Europe declined by around 14 percent in terms of sales in 2013. In order to compensate for drops in sales in its core business in the medium and long term, Gigaset entered the home networks segment, a solution market that is growing strongly according to observers, by launching “Gigaset elements” in the third quarter. Gigaset also put its first tablet PCs on the market in December.
The free cash flow for the fourth quarter of 2013 was positive at €3.3 million. Consolidated net income fell, in particular due to tax effects: the losses carried forward by Gigaset AG were no longer able to be utilized because of the change in ownership structure.
- Consolidated revenue from continuing operations in 2013: €371.2 million (2012: €419.6 million)
- EBITDA from continuing operations in 2013: €11.1 million (2012:1 € -2.8 million)
- Consolidated net income from continuing operations in 2013: € -35.5 million (2012:1 € -26.0 million)
- Free cash flow from continuing operations in 2013: € -41.5 million (2012:1 € -33.1 million)
“The market for cordless phones continues to decline sharply, and that is also clearly reflected in Gigaset’s business performance in 2013. A reversal of this market trend is not in sight. We’ve therefore implemented our ‘Gigaset 2015’ strategy further with concrete steps and began in the second half of 2013 to expand our business by adding new product categories. Thanks to our new strategic partner Goldin, we can continue on this path with greater strength and now enter the smartphone and tablet markets, which are larger and are still growing according to observers. As a result, we will open up urgently needed new prospects for Gigaset and its employees. However, the new categories will not be able to offset the drop in sales in our core business at this very early stage,” says Gigaset’s CEO Charles Fränkl.
Because of the fact that Goldin took a majority stake in the company, under the change of control clause the syndicate banks are demanding repayment of all claims up to €32.9 million from the granted credit line as expected and in accordance and effective April 30, 2014. “Thanks to the capital measures undertaken last year and the new shareholder Goldin, the financial prospects of the Gigaset Group have improved significantly. We’re currently working on replacing the relatively expensive syndicated loan by cheaper instruments,” states Dr. Alexander Blum, CFO of Gigaset AG.
Gigaset AG will publish the detailed business figures for the fourth quarter and the whole of 2013 as planned on March 26, 2014.
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 ranks second worldwide with around 1,400 employees and a market presence in around 70 countries.
Gigaset AG is listed on the Prime Standard of Deutsche Börse and so is subject to the very highest requirements for transparency. Its shares are traded on the Frankfurt Stock Exchange under the symbol 'GGS' (ISIN: DE0005156004). DE0005156004.