Record results in sales and operating profit

02.03.2018

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PRESS RELEASE

CH-Regensdorf, March 2, 2018

Record results in sales and operating profit

In fiscal year 2017 mobilezone achieved record sales of CHF 1,172 million, an increase of 7.7 percent over the previous year. Operating profit (EBIT) was increased by 3.4 percent to CHF 50.1 million.

mobilezone increased its operating profit (EBIT) to CHF 50.1 million (2016: CHF 48.5 million); this is the sixth consecutive increase and clearly demonstrates the company’s success.

Segment Trade reports slight increase in sales

The segment Trade includes activities in the company’s branch network extending throughout Switzerland, in the online business, and in the B2B sector as well as the activities of the einsAmobile in Germany. The company continued to maintain the previous year’s very positive results in the reporting year as well, despite slightly lower profitability. The segment Trade achieved an increase in sales of 6.6 percent, from CHF 1,012 million to CHF 1,079 million. The share of wholesale sales amounts to CHF 687 million (2016: CHF 618 million). EBIT fell from CHF 40.6 million to CHF 37.0 million, a decrease of 8.8 percent, which is primarily due to lower margins in the wholesale business in Germany.

Segment Service Providing reports great increase in sales and profitability

The segment Service Providing includes the company’s own TalkTalk mobile and fixed-line offers as well as the service and repair business in Switzerland and Austria. Sales in the segment Service Providing grew from CHF 75.5 million to CHF 92.2 million, an increase of 22 percent. EBIT rose by 49 percent to CHF 12.1 million. Sales and EBIT came in above the previous year’s figures for both TalkTalk and the service and repair business. 

Dividend proposal to the General Meeting

A dividend of CHF 0.60 per registered share will be proposed to the General Meeting on April 5, 2018. If this proposal is approved, the dividend will be paid out on April 12, 2018. Starting on April 10, 2018, the shares will be traded ex-dividend. Based on the share price at balance sheet date of CHF 12.85, this proposed dividend represents a dividend yield of 4.7 percent. 

Change in the Board of Directors

After nine years of dedicated work on the Board of Directors, Cyrill Schneuwly has decided not to stand for reelection to the Board of Directors of mobilezone holding ag at the next General Meeting. The Board of Directors sincerely thanks Cyrill Schneuwly for his longtime active and formative work from which mobilezone Group could always profit. It is planned to expand the Board of directors to four members. As new members the Board of Directors proposes Gabriela Theus, managing director of the AG für Fondsverwaltung, Zug, and formerly CFO of Zug Estates AG, as well as Christian Petit, formerly a member of Swisscom’s group management. More information about the proposed members of the Board of Directors Gabriela Theus and Christian Petit can be found here:

https://www.mobilezone.ch/about-us/governance/board-of-directors

Acquisition of TPHCom GmbH – Extraordinary General Meeting on March 9, 2018, for the purpose of capital increase

On December 21, 2017, mobilezone announced that it will acquire the German firm TPHCom based in Münster, Germany. The transaction was concluded on February 27, 2018. The agreed upon purchase price was EUR 50 million. In the German market, TPHCom specializes in arranging mobile phone and fixed-line contracts for the specialist retail trade and online platforms, which the company supports as interface to the network operators. To finance the acquisition and to give the Group greater financial flexibility for additional company acquisitions in the medium term, the Board of Directors will request the extraordinary General Meeting on March 9, 2018, to approve a capital increase. The capital increase is to result in gross proceeds of ca. CHF 80 million.

Outlook

mobilezone has achieved an excellent result in fiscal year 2017 and is convinced that it can continue on this successful course in fiscal year 2018 as well. With the acquisition of TPHCom the company’s position in the German market is strengthened significantly. Among the goals mobilezone is pursuing is a further expansion of its geographical presence in Germany, in particular through increasing the number of its sales partners. For fiscal year 2018 mobilezone expects operating profit (EBIT) in the range of CHF 55 – 60 million. The company plans to continue its present attractive dividend policy and to disburse up to 75 percent of the consolidated profit.

Key figures of mobilezone Group

million CHF

    2017

    2016

 2015

 2014

 2013

Net sales

1 171.6

1 087.9

859.0

388.6

328.2

Gross profit

   149.8

   144.0

133.6

117.1

111.6

as % of net sales

     12.8

       13.2

    15.6

30.1

34.0

EBIT *)

   50.1

     48.5

  40.4

29.2

25.8

as % of net sales Net sales

       4.3

         4.5

      4.7

7.5

7.9

Consolidated profit

   35.2

     36.1

  30.8

23.6

22.0

as % of net sales

      3.0

         3.3

     3.6

6.1

6.7

Investments

  10.9

       9.8

   6.5

7.0

6.9

Shareholders‘ equity

    9.0

      -3.3

-12.1

32.1

42.8

as % of total assets

     3.0

        -1.7

   -7.5

32.1

35.4

Number of full-time employees

  867

      878

  918

843

828

Shops

    Switzerland

    Germany

  124

    65

      129

        55

 127

 43

129

n.a.

130

n.a.

Trade

million CHF

     2017

    2016

 2015

 2014

 2013

Net sales

1 079.4

1 012.4

785.5

300.0

255.5

EBIT

     37.0

     40.6

  27.8

18.7

12.9

Investments

       8.9

        7.7

    4.6

3.5

2.3

Service Providing

million CHF

   2017

    2016

 2015

 2014

 2013

Net sales

    92.2

     75.5

  73.6

  88.5

 72.7

EBIT

    12.1

       8.1

    7.6

    7.8

  9.7

Investments

    1.9

     2.0

    1.8

    3.5

  4.6

*CHF 1.0 million Group EBIT (2016: CHF -0.3 million) and CHF 0.1 million investments (2016: CHF 0.1 million) are not allocated to any segment and remain in the holding company.

The complete 2017 annual report with the detailed financial statements prepared in accordance with Swiss GAAP FER is available immediately for download at https://www.mobilezone.ch/about-us/investors/reports.

For further information please contact:

Markus Bernhard

Chief Executive Officer

mobilezone holding ag

mobilezoneholding@mobilezone.ch