Gigaset Financial Results Q2 2011

Munich, Aug 11, 2011

- Further enhanced profitability of core business
- Nearly doubled equity ratio
- Continued positive Free Cash Flow

Based on the recent business activity, the Gigaset executive board confirms its full year guidance for 2011. After the successful implementation of the new strategy, Gigaset AG now represents a global company with a clear focus on telecommunication and accessories. 

Development of revenues and results in Q2 2011

Sales revenues from continuing operations for the second quarter of 2011 came in at EUR 100.2m. The operative costs relative to revenues could be further decreased, resulting in a significant year on year increase of EBITDA by 66% to EUR 9.0m. The EBITDA margin for the continuing operations improved by 4 percentage points to 9%.
Both for the EBIT and the net result, the company was able to record positive numbers for the first time in the traditionally weak second quarter. The Q2 EBIT improved by EUR 4.8m in a year on year comparison, while the net result even increased by EUR 5.4m, leading to a net profit in Q2.
 

Further improved net assets and financial position 

Following the conversion of the convertible bond, the Group’s equity base was almost doubled and amounted to EUR 67.0m as of June 30, 2011. The equity ratio improved - also as a consequence of the disposal of the last non-core businesses - to 25%.

During the first six months of the year, the company was able to increase its cash position by almost EUR 6m, to end the second quarter at EUR 42.5m of cash and cash equivalents.

Excluding the effects of deconsolidation, the free cash flow amounted to EUR 4.0m.

In the first half of the year, the cash inflow from operating activities amounted to EUR 4.9m. Combined with a cash outflow from investing activities of EUR 3.0m, this led to a reported free cash flow of comfortable EUR 1.9m. 

Dr. Alexander Blum, CFO of Gigaset AG, is very pleased with this development: „By optimising our cost structure towards a sustainable profitability, we have now finished our most important homework. With our strengthened equity capital base, our low financial liabilities and a comfortable cash position we can fully concentrate on the further development of Gigaset AG. This includes, besides the development of further organic growth sources, also acquisitions with a focus on our core business.”

2011 Guidance confirmed and complemented

The executive board confirms its full year 2011 guidance. Based on the already achieved revenues and taking into account the traditionally stronger business development in the second half of the year, especially in Q4, Gigaset AG expects to generate total revenues of EUR 540m and an EBITDA of EUR 57m. This is complemented by an EPS guidance, namely an expected basic EPS of EUR 0.40 for the full year 2011 (diluted EPS of EUR 0.36). 

 

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: AQU, ISIN: DE0005156004.  

 
Further Informationen on the website: http://www.gigaset.ag
Contact: 
Gigaset AG

Kerstin Diebenbusch
Investor Relations

Tel.: +49 (0)89 444456-937
E-Mail: info@gigaset.com