mobilezone once again increases sales and profit

08.03.2019

NEWS RELEASE

CH-Rotkreuz, March 8, 2019

mobilezone once again increases sales and profit

In fiscal year 2018 mobilezone continued the trend of its successful previous years and achieved record results. Sales, operating profit (EBIT), and consolidated profit were once again increased. Sales grew by 2.0 percent (5.5 percent adjusted for currency effects) to CHF 1,196 million; operating profit increased by 4.8 percent to CHF 52.5 million, and consolidated profit by 12.2 percent (13.7 percent adjusted for currency effects) to CHF 39.5 million.

In a challenging environment and a difficult market with increased competition, mobilezone in fiscal year 2018 for the seventh consecutive time achieved an increase in operating profit: from CHF 50.1 million to CHF 52.5 million. The communicated expectations were thus not completely fulfilled.

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 in Germany. The segment Trade achieved an increase in sales of by CHF 1,079 million to CHF 1,099 million, an increase of 1.8 percent. The share of wholesale sales amounts to CHF 537 million (2017: CHF 687 million). The drop in wholesale sales of CHF 150 million is balanced by TPHCom’s first-time sales of CHF 203 million. The EBIT was increased to CHF 43.3 million. The wholesale margins were 4.3 percent compared to 3.8 percent in the previous year.

Segment Service Providing reports increased sales and decline in 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 92.2 million to CHF 96.3 million, an increase of 4.6 percent. With EBIT amounting to CHF 8.4 million (2017: CHF 12.1 million) the result achieved is in line with expectations.

Dividend proposal to the General Meeting

A dividend, free of withholding tax, of CHF 0.60 per share from the reserves from capital contributions will be proposed to the General Meeting on April 4, 2019. If this proposal is approved, the dividend will be paid out on April 11, 2019. Starting on April 9, 2019, the shares will be traded ex-dividend. Based on the share price at balance sheet date of CHF 10.94, this proposed dividend represents a dividend yield of 5.5 percent. 

Murat Ayhan to be deputy CEO

mobilezone announces that the Board of Directors has appointed Murat Ayhan as deputy CEO of mobilezone Group; Murat Ayhan is a member of the Group management and Managing Director of einsAmobile. Markus Bernhard, CEO mobilezone: “As an experienced and successful entrepreneur in the telecommunications industry, Murat Ayhan is a valued part of our group of companies who competently leads and represents our company.”

Changes on the Board of Directors

Andreas M. Blaser has decided not to stand for re-election at the upcoming general meeting and to concentrate on his other advisory and mandate activities instead. He has made a significant contribution towards renewing the whole IT platform in Switzerland in recent years. The Board of Directors would like to thank Andreas M. Blaser for his valuable commitment. Now the Board of Directors is proposing Peter K. Neuenschwander to the general meeting on 4 April 2019, as a member of the Board of Directors. Peter K. Neuenschwander is a partner in the law firm Suffert Neuenschwander & Partners. He will further strengthen the competence of the Board of Directors in questions of law, as well as corporate governance.

Outlook

mobilezone achieved a positive result in fiscal year 2018 in a highly competitive environment. The competition and the fight for market share, particularly in Germany, are not likely to abate in the current fiscal year. As a result of this intense competition, margins will probably remain under continued pressure, especially in the online business in Germany. The company aims at further expanding its presence in Germany by way of increasing the number of its sales partners.

For fiscal year 2019 mobilezone expects operating profit (EBIT) to be in the range of CHF 50 – 55 million. The company plans to continue its present attractive dividend policy and to disburse up to 75 percent of the consolidated profit.

For further information please contact:

Markus Bernhard

Chief Executive Officer

mobilezone holding ag

mobilezoneholding@mobilezone.ch

Key figures of mobilezone Group
 

Million CHF

2018

2017

2016

2015

2014

Net sales

1 195.6

1 171.6

1 087.9

859.0

388.6

Gross profit

156.8

149.8

144.0

133.6

117.1

as % of net sales

13.1

12.8

13.2

15.6

30.1

EBIT *)

52.5

50.1

48.5

40.4

29.2

as % of net sales

4.4

4.3

4.5

4.7

7.5

Consolidated profit

39.5

35.2

36.1

30.8

23.6

as % of net sales

3.3

3.0

3.3

3.6

6.1

Investments

10.4

10.9

9.8

6.5

7.0

Shareholders‘ equity

34.4

9.0

-3.3

-12.1

32.1

as % of total assets

9.4

3.0

-1.7

-7.5

32.1

Number of full-time employees

930

867

878

918

843

Shops

    Switzerland

    Germany

119

73

124

65

129

55

127

43

129

n.a.

Trade

Million CHF

2018

2017

2016

2015

2014

Net sales

1 099.3

1 079.4

1 012.4

785.5

300.0

EBIT

43.3

37.0

40.6

27.8

18.7

Investments

9.0

8.9

7.7

4.6

3.5

Service Providing

Million CHF

2018

2017

2016

2015

2014

Net sales

96.3

92.2

75.5

73.6

88.5

EBIT

8.4

12.1

8.1

7.6

7.8

Investments

1.3

1.9

2.0

1.8

3.5

*CHF 0.8 million Group EBIT (2017: CHF 1.0 million) and CHF 0.1 million investments (2017: CHF 0.1 million) are not allocated to any segment and remain in the holding company.

The 2018 annual report with the detailed financial statements prepared in accordance with Swiss GAAP FER is available immediately at www.mobilezone.ch/about-us/investors/reports.