Earnings Release • Apr 4, 2011
Earnings Release
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Corporate | 4 April 2011 07:30
Gigaset AG: Realignment of Gigaset AG shows first signs of success
Gigaset AG / Key word(s): Final Results
04.04.2011 / 07:30
Fiscal Year 2010
Realignment of Gigaset AG shows first signs of success
– Gigaset Group generates a clearly positive EBITDA from continuing operations
– Reduction of the consolidated loss despite the last, high non-recurring charges
– Gigaset AG equity ratio increases to more than 80%
– Massive reduction in financial liabilities
– Positive outlook for 2011
With the realignment of the company to the telecommunications industry and accessories, approved by the Extraordinary General Meeting of December 20, 2010, Gigaset AG was able to leave the burdening past behind in the fiscal year 2010 and lay the foundations for a profitable organic and inorganic growth in 2011 and beyond.
Development of Group revenues and results in 2010
For Gigaset AG revenue development was no yardstick for measuring success in the past, since revenues were volatile due to consolidation group changes. After revenues of EUR 3,492 million in 2009, revenues of EUR 1,009 million were generated in 2010. Continuing operations, i.e. the Gigaset Communications Group generated EUR 504 million which, on an adjusted basis, represents an increase of around 4% over the previous year.
The final consolidation of sub-groups, especially the Anvis Group, burdened the EBITDA of the Group in 2010. The positive business development of the Gigaset Communications Group could more than offset these burdens, so that an overall EBITDA of EUR 3.5 million was achieved which, measured in absolute terms, was only slightly below the previous year. EBITDA from continuing operations was, however, increased by EUR 50.9 million to EUR 37.5 million, which is predominantly due to the exceptionally positive business development of Gigaset Communications Group.
Despite the previously high non-recurring charges, caused by non-cash depreciation and amortization related to the sale of subsidiaries that were no longer a core business of the new Gigaset AG, the EBIT, which was still negative, could be improved by EUR 56.5 million. In continuing operations the EBIT of EUR 2.6 million in 2010, is already positive.
A significant improvement in net interest income more than offset the higher corporate tax burden and also contributes to the reduction of the consolidated net loss by EUR 52.4 million. Fortunately, this reduction is almost entirely due to the continuing operations, in which the loss could thus be reduced to EUR 7.4 million.
Significantly increased Gigaset AG equity ratio
The capital increase and the profit realized in 2010, increase the equity ratio of 30.9% to 80.2%. Following the exercising of conversion rights under the mandatory convertible bond issued on June 30, 2011 the equity ratio continued to improve significantly.
Almost complete repayment of financial liabilities in the Group
In the course of implementing the change in strategy, Gigaset AG has succeeded in reducing the short and long term debt in the Group from EUR 87.7 million at the end of 2009 to EUR 4.7 million at the end of 2010. Therefore the Group is, in fact, free of debt at the turn of the year 2010/2011.
Complete repayment of all Gigaset AG financial liabilities
The funds accrued in the context of the capital increase, the convertible bond and the sale of subsidiaries were used primarily to strengthen the equity capital base of the Gigaset Communications Group. The company also repaid all external financing. Hence Gigaset AG is free of debt as at December 31, 2010.
The Gigaset AG , Munich, is a worldwide operating company focusing on telecommunication and accessories. Gigaset AG is the parent company of the Gigaset Group, the leading producer of cordless phones worldwide and the market leader in Europe for DECT phones.
The shares of Gigaset AG are traded in the Prime Standard of the Frankfurt Stock Exchange. Symbol: AQU, ISIN: DE0005156004.
You can find out more about Gigaset AG at http://www.gigaset.ag
Contact:
Gigaset AG
Kerstin Diebenbusch
Investor Relations
Tel.: +49 (0)89 444456-937
E-Mail: [email protected]
End of Corporate News
04.04.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | Gigaset AG |
| Hofmannstraße 61 | |
| 81379 München | |
| Deutschland | |
| Phone: | +49 89/255500-0 |
| Fax: | +49 89/255500-200 |
| E-mail: | [email protected] |
| Internet: | www.gigaset.com |
| ISIN: | DE0005156004 |
| WKN: | 515600 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
| - - - |
| 118210 04.04.2011 |
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