Group strengthens market position despite slight decline in sales

PRESS RELEASE

Ad hoc announcement pursuant to Art. 53 LR

Rotkreuz, 18 August 2023

• Currency-adjusted sales of CHF 491 million (previous year: CHF 500 million)
• Operating profit (EBIT) of CHF 28.1 million (previous year: CHF 34.7 million)
• Net profit of CHF 20.9 million (previous year: CHF 26.0 million)

Markus Bernhard, CEO of the mobilezone Group, says: "In the first half of 2023, mobilezone's Swiss business was particularly convincing. The market position as well as the MVNO business in the two markets Switzerland and Germany were further expanded, which is very pleasing for us.”

In the MVNO business with HIGH, TalkTalk and Digital Republic, the sustained growth was more than confirmed with a net increase in the first half of 2023 of +50,200 (+24 per cent) to a portfolio of 260,300 mobile postpaid subscriptions.

The integration of Digital Republic (Switzerland), SIGA (Germany) and the telecommunications business of ENO (Germany) went according to plan and within the acquisition targets. In the German online business, mobilezone recorded a decline in sales figures due to dampened consumer sentiment. The company is optimistic about the second half of the year. The focus is on increasing profitability with a sustainably reduced cost base for the year.

Sales amounted to CHF 474 million (previous year: CHF 500 million), of which 69 per cent were achieved in Germany and 31 per cent in Switzerland. Adjusted for currency effects, sales amounted to CHF 491 million. This decline is mainly due to the drop in sales and turnover in the German online business. Sales of CHF 173 million (previous year: CHF 204 million), or 36 per cent of sales, were generated "online" with the company's own platforms. The EBIT was CHF 28.1 million (previous year: CHF 34.7 million) and the EBIT margin was 5.9 per cent (previous year: 6.9 per cent). Adjusted for the negative currency effect of CHF 0.6 million, EBIT for the reporting year was CHF 28.7 million, whereby the decline is due to the business in Germany, while in Switzerland EBIT was marginally higher. One-time charges from cost-cutting measures and additional, first-time depreciation from the purchase price allocation of the acquisitions had a negative impact of CHF 0.9 million on the first half of the year. Investments of CHF 8.0 million were made in customer acquisition in the MVNO area and in particular the acquisition of a customer base in Germany.

Key figures at a glance

• Organic sales decline of CHF -15 million (3.0 per cent) from CHF 500 million to CHF 485 million. Taking into account the negative currency effect of CHF -17 million (3.4 per cent) and the first-time sales contribution of Digital Republic and SIGA of CHF 6 million (1.2 per cent), Group sales amount to CHF 474 million (-5.2 per cent).
• The pleasingly significant increase in MVNO revenue of 35 per cent to CHF 30 million could not fully compensate for the decline in the German online business.
• Operating profit (EBIT) of CHF 28.1 million (previous year: CHF 34.7 million) with an EBIT margin of 5.9 per cent (previous year: 6.9 per cent), with Switzerland contributing 53 per cent (previous year: 41 per cent) and Germany 47 per cent (previous year: 59 per cent).
• Financial expenses increased by CHF 1.2 million to CHF 2.2 million (previous year: CHF 1.0 million).
• Although the net profit of CHF 20.9 million was below the record result of the previous year (CHF 26.0 million), it is the second-best result of the Group.
• Net working capital was CHF 105 million as of 30 June 2023 compared to CHF 124 million at the end of December 2022.
• Financial liabilities totalled CHF 202 million compared to CHF 149 million at the end of December 2022.
• Net debt amounts to CHF 107 million (30.06.2022: CHF 71 million). In the first half of 2023, there were cash outflows totalling CHF 72 million for the dividend payment (CHF 39 million), acquisitions and the takeover of a customer base in Germany for the indirect B2B business (CHF 32 million).
• The ratio of net debt to EBITDA was 1.46 (0.84).
• Equity in the individual financial statements of mobilezone holding ag amounted to CHF 126 million (31.12.2022: CHF 147 million).
• Earnings per share amounted to CHF 0.48 (previous year: CHF 0.59).
• The share price was CHF 13.72 on 30 June 2023 compared to CHF 15.32 at the end of December 2022.
• The number of employees as of 30 June 2023 totalled 1,017 (previous year: 995), with a decrease of 34 employees excluding acquisitions.

Market area Switzerland

Business in Switzerland developed well in all areas.

• In the first half of 2023, the retail and B2B businesses were able to confirm the best result in the company's history achieved in the previous year.
• Sales increased from CHF 141 million to CHF 151 million, or 7.1 per cent.
• The EBIT amounted to CHF 15.1 million (previous year: CHF 14.8 million), which corresponds to a return on sales of 10.0 per cent (previous year: 10.5 per cent).
• The number of shops was 126 (31.12.2022: 124).
• The number of negotiated contracts (postpaid, internet and TV) increased by 6.9 per cent to 217,000 (previous year: 203,000).
• Service sales (fleet management, data transfer, smartphone set-up and other services) amounted to CHF 3.8 million (previous year: CHF 3.8 million).
• Accessories sales increased by 15.2 per cent to CHF 12.1 million (previous year: CHF 10.5 million) and account for 8.0 per cent (previous year: 7.4 per cent) of sales in Switzerland.
• Sales at the MVNO TalkTalk and Digital Republic amounted to CHF 15.4 million (previous year: CHF 11.9 million). Continued growth (+20%) was shown in the mobile postpaid area with a net increase of +22,600 mobile postpaid subscriptions. Mobile postpaid subscriptions: 135,200 (31.12.2022: 112,600).

Market area Germany

In B2B trading and in the MVNO business, the first half of the year went very well. In the online market, cautious consumer sentiment and reduced investments by business partners led to 15 per cent lower sales figures during the first 5 months.

• In the local currency, sales in the German organisation decreased by 5.5 per cent. In the reporting currency CHF, sales decreased from CHF 358 million to CHF 326 million, or 8.9 per cent.
• The EBIT amounted to CHF 13.2 million (previous year: CHF 20.3 million), which corresponds to a return on sales of 4.0 per cent (previous year: 5.7 per cent). Adjusted for currency effects, the EBIT was CHF 13.8 million.
• The volume in the online business of mobile phone contracts decreased by 14.6 per cent to 269,000 (previous year: 315,000).
• In B2B trade, 232,000 (previous year: 222,000) mobile contracts were concluded; this corresponds to an increase of 4.5 per cent.
• In total, 501,000 (previous year: 537,000) mobile telephony contracts were concluded "online" and in B2B trade, which corresponds to a decrease of 6.7 per cent.
• Sales at the MVNO HIGH amounted to CHF 14.6 million (previous year: CHF 10.3 million).
• With a net increase of +27,600 mobile postpaid subscriptions, continued growth (+28 per cent) was shown. Mobile postpaid subscriptions: 125,200 (31.12.2022: 97,600).

Ad hoc announcement pursuant to Art. 53 LR (PDF)

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About mobilezone
With a turnover of CHF 1.0 billion and consolidated net profit of CHF 54.5 million in the 2022 reporting year, mobilezone holding ag, founded in 1999, is the leading independent Swiss and German telecom specialist. The registered shares of mobilezone holding ag (MOZN) are traded on the SIX Swiss Exchange AG.

The mobilezone Group employs around 1,000 staff at its sites in Rotkreuz, Urnäsch, Cologne, Bochum and Münster. The services and products offered by the Group include a full range of mobile phones and tariff plans for mobile and fixed-line telephony, digital TV and internet from all providers. Independent advice and services for private and business clients, repair services and supply to retailers complete the offering. These services and products are offered online via various web portals and in over 125 mobilezone shops in Switzerland.
www.mobilezoneholding.ch