Europe's market leader for DECT phones is continuing its positive trend: Gigaset Communications GmbH significantly increased its operating income and improved its efficiency in the first quarter of 2010. EBITDA was about 17.7 million euros on revenue of 125 million. Operating income in the same quarter of the previous year was well in the red at -17.6 million euros on revenue of 140 million. This shows clearly that the restructuring measures at the company, in which ARQUES Industries AG holds an 80-percent share, are gaining traction.
The company's performance is exceeding expectations, thanks to great demand for Gigaset products and supported by measures aimed at increasing profitability. In 2009, Gigaset Communications had taken intensive cost-cutting steps, reduced its headcount and focused on its core business of telephony. For 2010, the company now expects to post total revenue of about 500 million euros and sharply improve its return on investment.
In 2009, Gigaset Communications witnessed a robust year on year growth of 40% in the Middle East. The cordless devices sector continues to witness significant growth in the Middle East and Europe. More than 50% of fixed-line customers in the Middle East and Europe are changing their phones to new advanced cordless phones. In the UAE, the telecoms sector had a stellar year in 2008, witnessing strong subscriber growth across all segments, all being driven primarily by population growth. Fixed-line subscribers grew to 1.64 million (+10.1%). Gigaset Communications has continued to go strong, with the growth in the region reaching 40% for this year.
In the first quarter of 2010, Gigaset surpassed its global budget targets for revenue and margins, primarily due to strong sales in Europe. The cordless phone business is showing good performance, earnings strength has grown, and Gigaset is making good progress overall. Margins have increased, despite the fact that total revenue declined slightly year-on-year as a result of the sale of the loss-making Broadband and WiMAX divisions in July 2009 and Home Media in October 2009.
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Gigaset Communications GmbH is one of the world's largest manufacturers of cordless phones and the clear market leader in Europe for DECT phones. With its headquarters in Munich, the company develops, manufactures and distributes high-quality products under the brand Siemens Gigaset. Its portfolio includes fixed-network phones, Voice over IP devices, software solutions and home media products. The primary production site is in Bocholt, Germany, where the Gigaset products are manufactured under the most stringent quality and environmental standards. Gigaset Communications is a licensee of the Siemens trademark.
Gigaset Communications GmbH is an ARQUES Industries AG (http://www.arques.de) company.
Additional press releases are available for download at http://www.gigaset.com/press
You can find out more about Gigaset Communications at http://www.gigaset.com
The strategy of concentrating on the core business of telephony and the focused positioning of the Gigaset brand in the premium segment are showing success. By selling low-margin peripheral activities and cutting the workforce, the company had already succeeded in 2009 in significantly improving its efficiency.
Gigaset Communications GmbH is one of the world's largest manufacturers of cordless phones and the clear market leader in Europe for DECT phones. With its headquarters in Munich, the company develops, manufactures and distributes high-quality products under the brand Siemens Gigaset. Its portfolio includes fixed-network phones and Voice over IP devices. The primary production site is in Bocholt, Germany, where the Gigaset products are manufactured under the most stringent quality and environmental standards. Gigaset Communications is held by ARQUES Industries AG (80.2 percent) and Siemens AG (19.8 percent). Gigaset Communications is a licensee of the Siemens trademark.
Additional press releases are available for download at http://www.gigaset.com/press
You can find out more about Gigaset Communications at http://www.gigaset.com
Press contact:
Sana Lababidi
Media Relations Manager
Tel: 04 3415558
Fax: 04 3415559
sana@raeepr.com
Press contact:
Gigaset Communications GmbH
Georg Sahnen
Head of Corporate Communications
Phone: +49 (0)89 722 541 57
E-mail: georg.sahnen@gigaset.com
© Press Release 2010
