DGAP-News: Gigaset AG
/ Key word(s): Quarterly / Interim Statement/9 Month figures
Bocholt, November 25th, 2021: Gigaset AG (ISIN: DE0005156004), an internationally operating company in the area of communications technology, today published its report for the third quarter and first nine months of 2021. In the first nine months of 2021, Gigaset increased its revenue by 15.3% overall and achieved a positive EBITDA. Although the company posted a drop in revenue of 9.7% in the third quarter compared with the prior-year period, due primarily to material bottlenecks caused by the pandemic, it did at the same time record a significant improvement in EBITDA of 36.7%.
Revenue in the third quarter reached EUR 52.0 million - after being EUR 57.6 million in the same period of the prior year. This was due mainly to supply bottlenecks as a result of the continuing coronavirus pandemic. EBITDA nevertheless rose to EUR 6.8 million (Q3 2020: EUR 5.0 million). Earnings before interest and taxes (EBIT) more than doubled at EUR 3.3 million (Q3 2020: EUR 1.4 million) to round off the best quarterly results of the year so far. Revenue in the first nine months of 2021 climbed to EUR 153.9 million (9M 2020: EUR 133.5 million). At minus EUR 11 million, earnings before interest, taxes, depreciation and amortization (EBITDA) in the first nine months were also well above that of the same period of the prior year (9M 2020: minus EUR 3.0 million).
"The company's order situation continues to be good," explains Thomas Schuchardt, CFO at Gigaset AG, "over the year to date we have seen growth in revenue and earnings. That makes the decline in revenue in the third quarter all the more annoying. Due to the coronavirus pandemic, many companies worldwide are currently struggling with delivery problems - Gigaset is also affected. As a result of these material bottlenecks, especially in the area of semiconductors, we were unfortunately forced to adjust our forecast for the current fiscal year. We must also continue to face these challenges since the bottlenecks are expected to last into next year. Development in business with smartphones and in the Professional segment is therefore all the more pleasing in our view. On the other hand, the recent above-average growth in the demand for fixed-line telephony is gradually returning to normal. Under the given circumstances, we remain optimistic for the near future. We continue to see good opportunities for further growth through the rise in digitalization."
Digitalization offers growth opportunities
Performance by segments
Business in the Phones segment is slowly returning to normal after the unusual increase in revenue due to coronavirus, with revenue in the first nine months of 2021 down slightly year-on-year by 0.7% to EUR 99.9 million (9M 2020: EUR 100.6 million). In the third quarter, the decline in revenue, also mainly due to material bottlenecks, of minus 32.5% to EUR 29.7 million was more pronounced (Q3 2020: EUR 44.0 million).
In the Smartphones segment, the positive revenue trend also continued in the third quarter, driven primarily by the launch of new models. For the first nine months of 2021, revenue from smartphones tripled to EUR 12.2 million (9M 2020: EUR 4.0 million). In the three-month period that was a plus of 8.1% with quarterly revenue of EUR 4.0 million after EUR 3.7 million in the third quarter of 2020.
In the first nine months, sales in the Smart Home segment fell by almost 40% to EUR 1.1 million - compared to EUR 1.8 million in the same period of the previous year. In the third quarter, the decline was smaller at -25.0% to EUR 0.3 million (Q3 2020: EUR 0.4 million). The main reasons for the decline compared to the previous year are a new, disproportionately positive partnership from 2020, which improved the result in the previous year, and a generally slower development of the smart home market than assumed by market researchers.
In the Professional segment, which focuses on business customers, the revenue trend has continued to recover. Catch-up effects due to projects and orders deferred projects by customers as a result of coronavirus stimulated sales here, with revenue in this segment in the first nine months of the year climbing to EUR 40.7 million (9M 2020: EUR 27.1 million) - a plus of 50.2%. The third quarter played a major part in this trend: Revenue compared with the prior year even went up by 89.5% to EUR 18.0 million (Q3 2020: EUR 9.5 million).
"These nine-month figures make us optimistic despite the upheavals that also unfortunately continue to accompany the ongoing coronavirus crisis," says Klaus Weßing, CEO of Gigaset AG. "They clearly show that we have developed the right strategy with a strong focus on digitalization, and taken the right decisions and measures to come through the crisis. Even though the actual end of the coronavirus pandemic and all its consequences and ripple effects is still uncertain, we believe that Gigaset is well prepared for further developments. We want to benefit from the rise in digitalization through continuous investments in innovative products, and successfully compete on the market through new, long-term cooperation with strong partners."
Explanations on the outlook for 2021
For 2021, Gigaset also believes that there will still be great uncertainty as regards the medium- and long-term effects of the pandemic. Gigaset also continues to see itself significantly dependent on external factors beyond its control, in other words, decisions by governments to impose lockdowns or close businesses and borders, as well as the duration and further evolution of the pandemic itself.
The greatest uncertainty continues to be in the area of material availability. It may not be possible to constantly ensure full utilization of production capacities as a result of existing shortages (such as for chipsets) on the procurement market. As far as semiconductors are concerned, there is currently no clear picture for the future. Gigaset has to face this uncertainty in material procurement - just like many other companies. The company's long-standing and established business relationships with partners will be an advantage here.
Updated general statement by the Executive Board for 2021
The complete report on the third quarter and first nine months of 2021 can be downloaded here.
25.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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