mobilezone reports a positive result for the first six months of 2019 and makes an upward adjustment to its forecast for the 2019 annual result

23.08.2019

NEWS RELEASE

CH-Rotkreuz, August 23, 2019

mobilezone reports a positive result for the first six months of 2019 and makes an upward adjustment to its forecast for the 2019 annual result

In line with expectations, mobilezone finished the first six months of 2019 with a positive result. Earnings before interest and taxes (EBIT) grew to CHF 23.6 million (2018: CHF 23.0 million); consolidated profit rose to CHF 17.1 million (2018: CHF 16.8 million). The EBIT target for fiscal year 2019 has been raised by CHF 6 million to CHF 56 million – CHF 61 million.

  • Sales increased by CHF 8 million to CHF 569 million. After adjustments for currency effects, sales totaled CHF 586 million.
  • EBIT grew by 2.8 percent to CHF 23.6 million with an EBIT margin of 4.2 percent (2018: 4.1 percent).
  • Consolidated profit rose by 1.5 percent to CHF 17.1 million (2018: CHF 16.8 million). After adjustments for currency effects,the consolidated profit was 3.2 percent higher than in the previous year.
  • Net current assets totaled CHF 154 million compared to CHF 150 million on December 31, 2018
  • The expectations for fiscal year 2019, announced in March 2019, will be raised by CHF 6 million (EBIT CHF 56 million – CHF 61 million).

Acquisition of SH Telekommunikation Deutschland GmbH / Sparhandy (SH)

The integration and performance of SH are proceeding as expected. For the calendar year 2019 an EBIT amount of EUR 10 million is expected.

Segment Trade increases EBIT and net operating margin

The segment Trade includes activities in the company’s branch network extending throughout Switzerland, the B2B sector, and the activities in the online business in Germany to which the business activities of SH have been added starting June 1, 2019.

  • Sales grew from CHF 513 million to CHF 531 million, an increase of 3.5 percent.
  • The share of wholesale sales amounts to CHF 237 million (2018: CHF 246 million).
  • EBIT increased from CHF 17.8 million to CHF 19.6 million, which corresponds to a net operating margin of 3.7 percent (2018: 3.5 percent).

Business in Germany

  • The German online business continued to grow. More than 126 000 mobile contracts (previous year: 104 000) were completed online, which represents an increase of 21 percent.
  • With the integration of SH beginning on June1, 2019, the Group has more than doubled its online business.
  • For fiscal year 2019 a total of 380 000 contracts are expected to be concluded online (sparhandy.de / deinhandy.de and via the company’s own TV channel with handystar.de). Including SH for an entire calendar year, we expect more than 500 000 contracts to be concluded online.

Retail and B2B in Switzerland

  • The retail business in Switzerland showed a very positive development. With 146 000 contracts concluded (postpaid, Internet, and TV), the previous year’s figures were exceeded by 6 percent.
  • Sales of services (data transfer, setting up smartphones, and other services) in the shops grew to CHF 1.4 million (2018: CHF 1.3 million).
  • Sales of accessories rose by 5.7 percent to CHF 9.3 million.
  • In the B2B sector new cooperations with associations have been added. The offers for association members are presented on special online platforms.
  • The B2B sector grew its fleet management and mobility services to CHF 1.1 million.

Segment Service Providing reports a decrease in sales and reduced profitability

The segment Service Providing includes the company’s own TalkTalk mobile and fixed-line offers as well as the repair business in Switzerland and Austria.

  • Sales decreased from CHF 47.9 million to CHF 37.9 million.
  • EBIT fell from CHF 4.5 million to CHF 3.1 million.
  • TalkTalk’s sales amounted to CHF 9.3 million (2018: CHF 10.6 million). Mobile telephony could not fully offset the drop in sales to fixed-line customers. The sales share of mobile customers rose to 68 percent (2018: 55 percent). In the area of postpaid SIM cards, the number of customers grew in the past 6 months to 26 100 (12/31/2018: 25 200).
  • The profitability of the repair and service business in Switzerland and Austria was below the previous year’s result.

Capital increase in June 2019

The capital increase decided and approved by the General Meeting on April 4, 2019, in the amount of 4 000 000 shares was implemented in June 2019 and was transferred to the former shareholders of SH as part of the purchase price payment. Thus, there are currently 44 781 213 registered shares outstanding.

General Meeting in April 2019

A dividend, free of withholding tax, of CHF 0.60 per share from the reserves from capital contributions was decided by the General Meeting on April 4, 2019. The dividend was paid out on April 11, 2019.

Outlook for the second half of 2019

We are very pleased with the development of business in the first six months of this fiscal year, in particular where the segment Trade is concerned. The EBIT target for fiscal year 2019, which was announced in March, in the amount of CHF 50 million – CHF 55 million has been raised by CHF 6 million. Key success factors are the profitability of the online business in Germany and the further development of our services and recurring revenues in all business segments.

Key figures of mobilezone Group

million CHF

1-6/2019

1-6/2018

Net sales by country

-       Germany

458.6

431.4

-       Switzerland

152.1

205.0

-       Austria

12.6

16.7

-       Intersegment

-54.7

-92.5

Total net sales

568.6

560.6

Gross profit

78.0

75.2

as % of net sales

13.7%

13.4%

EBIT

23.6

23.0

as % of net sales

4.2%

4.1%

Consolidated profit

17.1

16.8

as % of net sales

3.0%

3.0%

Investments

4.4

3.5

30.06.2019 

30.06.2018 

Shareholders‘ equity Group

0.6

11.8

Shareholders‘ equity mobilezone holding ag

164.0

120.8

Number of full-time employees

1 083

922

Shops

     Switzerland

     Germany

118

71

123

65

Trade

million CHF

1-6/2019

1-6/2018

Net sales

530.7

512.7

EBIT*

19.6

17.8

as % of net sales

3.7%

3.5%

Investments *

4.1

2.8

Service Providing

million CHF

1-6/2019

1-6/2018

Net sales

37.9

47.9

EBIT*

3.1

4.5

as % of net sales

8.1%

9.4%

Investments *

0.3

0.6

*CHF 0.9 million Group EBIT (2018: CHF 0.7 million) and CHF 0.0 million investments (2018: CHF 0.1 million) are not allocated to any segment and remain in the holding company.

The semi-annual report, including the detailed half-year financial statements in accordance with Swiss GAAP FER, is available at www.mobilezoneholding.ch/en/investors/reports.
 

At 9:15 am today there will be a telephone conference for investors, media and analysts. (www.mobilezoneholding.ch/en/investors/Calendar)

For further information please contact:

Markus Bernhard

Chief Executive Officer

mobilezone holding ag

mobilezoneholding@mobilezone.ch