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Gigaset AG: Financial Results for Q3 2014 - Gigaset significantly improves EBITDA and consolidated net income - the Company is free of financial liabilities

DGAP-News: Gigaset AG / Key word(s): Quarter Results
Gigaset AG: Financial Results for Q3 2014 - Gigaset significantly
improves EBITDA and consolidated net income - the Company is free of
financial liabilities

11.11.2014 / 07:50

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Press Release
Munich, November 11, 2014

Gigaset significantly improves EBITDA and consolidated net income - The
Company is free of financial liabilities

- EBITDA from continuing operations in the third quarter: EUR4.4 million
(Q3/2013: EUR3.8 million).

- Consolidated net income from continuing operations in the third
quarter: minus EUR0.2 million (Q3/2013: minus EUR3.8 million).

- Consolidated revenue from continuing operations in the third quarter:
EUR72.0 million (Q3/2013: EUR76.6 million).

- Free cash flow from continuing operations in the third quarter: EUR7.6
million (Q3/2013: minus EUR9.9 million).

- Initial revenue from the smart home system Gigaset elements has
increased almost seven-fold year on year.

- Business Customers Business Unit grows revenue by 12% compared with the
third quarter of 2013.

- CEO Charles Fränkl: "Gigaset is maintaining its leading position in a
tough market. We've managed to improve our earnings and free cash flow
significantly by means of strict cost management. The strategic
alignment we initiated in 2012 and the related rollout of new products
continues to bear fruit. The company is totally free of financial
liabilities thanks to proceeds from capital measures. That opens up new
leeway for financing our growth strategy."

Gigaset AG again improved its operating income (EBITDA) in continuing
operations in the third quarter by EUR0.6 million to EUR4.4 million
compared with EUR3.8 million in the same period of the previous year. The
consolidated loss fell by EUR3.6 million to EUR0.2 million, mainly due to
book profits as part of the equity method from the stake in the joint
venture with the main investor Goldin aimed at establishing mobile
business.

These books profits were EUR1.3 million. In addition, the now implemented
and fully effective cost-cutting and efficiency program to save EUR30
million contributed to the improvement in earnings, as did the new
efficiency program, which was largely implemented by September and aims to
cut costs by EUR17.5 million.

Initial revenue with the smart home system Gigaset elements, which was
launched in 2013, is developing positively. There has been an almost
seven-fold increase in revenue from it year on year. However, it is not