Semi-annual report
June 30, 2017
Contents 1 Key figures1 3 mobilezone overview Report to shareholders Events in 2017
3 5
6 Financial Report Consolidated financial statements mobilezone Group
6
13 Addresses
mobilezone overview • Key figures
1
Net profit (CHF million)1 14
2
0.20
0
0.00
2013
2017
2014
2
18
400
14
16
300
12
14
200
10
12
100
8
10
0
2014
2013
2013
2015
16
2017
500
2016
20
2015
18
2014
600
2017
22
Share price since 20113
SPI
mobilezone
400% 350% 300% 250% 200% 150% 100% 50%
January 1 to June 30 instead of distributing a dividend, the General Meeting decided on a share buyback program in the amount of 10 percent of the outstanding shares at a fixed price of CHF 10.00 for the purpose of capital reduction. 3 Dividend reinvested 1
2
2017
2016
2015
2014
2013
2012
0%
2011
2016
20
2015
Net sales (CHF million)1
2014
EBITDA (CHF million.)1
2013
EBIT (CHF million.)1
2017
0.40
2016
4
2016
0.60
2015
6
2012
0.80
2016
8
2015
Dividend (CHF)
2013
10
2014
12
2
Key figures Group (CHF 000 or as indicated) Net sales
01. – 06.2017
%
512 584
01. – 06.2016
%
523 361
Gross profit
65 262
12.71
66 173
12.61
Operating profit (EBITDA)
21 210
4.11
21 214
4.11
Operating profit (EBIT)
18 373
3.61
18 261
3.51
Net profit
13 656
2.71
12 319
2.41
Total assets Net cash & cash equivalents
30.06.2017
30.06.2016
251 088
197 599
–108 047
–68 105
Shareholders’ equity
–9 049
Net cash from operating activities
–1 822
30 724
Investments in property, plant & equipment and intangible assets
4 707
3 068
Number of full-time employees as of June 30
873
880
Number of shops as of June 30 Switzerland Germany
127 56
128 44
2017
2016
Number of shares issued of June 30
32 195 697
32 195 697
Weighted average number of shares outstanding
32 186 627
32 194 240
Earnings per share – undiluted/diluted
0.42 / 0.42
0.38 / 0.38
–0.28
–0.63
0.60
0.60
15.90 / 14.05
14.65 / 12.35
14.10
12.60
–3.62
–20 395
Data per share (CHF or as indicated)
Equity per share as of June 30 Payout per share Share price (highest / lowest) Share price as of June 30
1
in percent of net sales.
2
in percent of the balance sheet total
–10.32
3
mobilezone overview • Report to shareholders
Positive business development in the first half of 2017 Dear Shareholders
In the first six months of 2017 mobilezone achieved sales of CHF 513 million (2016: CHF 523 million) and realized an operating profit (EBIT) of CHF 18.4 million (2016: CHF 18.3 million). Net financial expenses rose by CHF 281,000 to CHF 947,000. The company’s tax expense amounted to CHF 3.8 million, a decrease compared to the previous year of CHF 1.5 million. This was due to the smaller profit contribution from the German business and the elimination of a one-time charge in the previous fiscal year in the amount of CHF 0.5 million. Consolidated profit grew by 11 percent to CHF 13.7 million (2016: CHF 12.3 million). Earnings per share were increased in the first six months of 2017 from CHF 0.38 to CHF 0.42. As of August 15, 2017, the mobilezone share price was CHF 13.40 compared to CHF 14.50 at the end of December 2016.
Urs T. Fischer
As of June 30, 2017, mobilezone‘s balance sheet shows cash and cash equivalents totaling CHF 44.9 million (12/31/16: CHF 27.0 million). The bank loans amount to CHF 153 million compared to CHF 93.2 million at the end of December 2016. The increase was used primarily for financing net current assets. Segment Trade reports slight decrease in sales
The segment Trade includes activities in the company’s branch network extending throughout Switzerland, in the online business, in the B2B sector, and also the activities of the einsAmobile in Germany. The market environment in the retail business remains very demanding and challenging. In particular, the market as a whole is struggling to cope with declining customer frequency.
Markus Bernhard
A new shop concept with a completely new design was introduced in the mobilezone shops in Brugg, Langenthal, Lugano, Schönbühl Bern, and Vevey. Other shops, such as the ones in Burgdorf and Uster, will be moved to a new and better location in the current fiscal year and will be remodeled in line with the new concept. In the second half of the current fiscal year the Mall of Switzerland in Ebikon will be opened. The online business in Germany showed record results both in terms of sales as well as operating profit. Specifically, in Germany in the first half of the year more than 100,000 (2016: 90,000) mobile phone contracts were concluded online. With the launch of DeinHandy.ch mobilezone took an important step in Switzerland toward applying its successful experience in Germany to the Swiss market. Sales in the segment Trade fell from CHF 489 million to CHF 469 million, a drop of 4 percent. The wholesale portion of this total amounts to CHF 302 million (2016: CHF 309 million). EBIT decreased from CHF 12.9 million to CHF 12.4 million.
4
Segment Service Providing doubled EBIT to CHF 6.2 million
The Segment Service Providing includes the company’s own TalkTalk mobile and fixed-line offers as well as the service business in Switzerland and Austria. Sales in the segment Service Providing grew from CHF 34.3 million to CHF 43.3 million, an increase of 26 percent. EBIT rose by 100 percent to CHF 6.2 million. The profitability of the repair and service business in Switzerland and Austria developed very positively in the first six months of fiscal year 2017. TalkTalk’s sales and EBIT also came in above last year’s figures. The share of mobile phone customers of TalkTalk’s total sales amounts to 47.5 percent (2016: 33.5 percent). In the area of mobile telephony the number of customers increased to 41,000 (12/31/16: 39,000) in the first six months of 2017. General Meeting in April 2017
The General Meeting on April 6, 2017, decided to distribute a dividend in the amount of CHF 0.60 per share; the dividend was paid out on April 13, 2017. Outlook for the second half of 2017
The market environment in the retail market in Switzerland will continue to remain challenging. In the second half of the year mobilezone expects the launch of a new iPhone model. This will boost the number of postpaid contracts – provided the new models are readily available. The enhanced online activities will support mobilezone’s adopted strategy. As in previous years, we expect a stronger profit contribution in the second half of 2017. Regensdorf, August 16, 2017
Urs T. Fischer Chairman of the Board of Directors
Markus Bernhard Chief Executive Officer
5
mobilezone overview • Events in 2017
Consulting is our core competence and we will remain committed to it In a dynamic market with an abundance of subscription plans and new models customers are looking for a provider offering independent and competent advice about the plan that is best for them. What is new in our modern world is merely where customers benefit from this advice, and that is why we are constantly working at optimizing the purchasing experience for our customers, regardless of which sales channel they choose. In the current fiscal year we have again remodeled several shops in order to make shopping in our mobilezone shops an even more attractive experience for our customers. The shops in Langenthal, Lugano, Meyrin, and Vevey have moved and re opened at sites with more foot traffic or at an optimized location in a shopping center. We have remodeled the shops in Brugg and in Schönbühl near Bern in line with our new shop concept. For the first time we have opened mobilezone pop-up stores for a limited time, one in Crissier and one in Haag. This allows us to test whether there is enough customer demand at these locations for a new shop. In the second half of this fiscal year the Mall of Switzerland in Ebikon will be opened. Together with our partners, we have increased the number of our shops in Germany in the past few months to a total of 56 shops. Even online our customers can find individualized advice in our mobilezone Live Chats. Our experienced customer service specialists are available in real time to answer customer questions and provide information. In addition, we have added more payment options in our online shops and have optimized the plan overview. These are just a few examples of how we continue to optimize our online shops with new features. Swisscom and Sunrise are simplifying the world of subscription plans with their new complete packages. With its Sunrise One plan, Sunrise offers customers the automatic benefit of the fastest speed for mobile phone, TV, and Internet. Swisscom’s inOne allows customers to put together their plans based on their individual needs. In the first six months of 2017, the manufacturers introduced two major new models: the Huawei P10 and the P10 Plus as well as the Samsung S8 and S8+. For both of these smartphones customers could benefit from our advance order service. We offer customers the option to order the phone model they want even prior to the official sales launch. Thanks to this service, our customers are among the first to receive the new mobile phones and can avoid long waiting times in the shops. In addition, Nokia is making a comeback with the cult mobile phone 3310. Now we are looking with anticipation to the manufacturers offering the two top new models for the second half of 2017: Samsung with the Galaxy Note and Apple with the new iPhones.
6
Consolidated income statement January 1 to June 30 (CHF 000)
2017
2016
512 584
523 361
–447 322 65 262
–457 188 66 173
34 –29 125 –14 961 21 210
164 –29 891 –15 232 21 214
Depreciation of property, plant & equipment Amortization of intangible assets Operating profit (EBIT)
–2 087 –750 18 373
–2 190 –763 18 261
Financial income Financial expense Profit before taxes (EBT)
150 –1 097 17 426
76 –742 17 595
Income tax expense Net profit
–3 770 13 656
–5 276 12 319
CHF 0.42 0.42
CHF 0.38 0.38
Net sales Cost of goods and materials Gross profit Other operating income Personnel costs Other operating costs Operating profit before depreciation (EBITDA)
Earnings per share Earnings per share – diluted
7
Financial Report • Consolidated financial statements mobilezone Group
Consolidated balance sheet 30.06.2017
31.12.2016
16 135 1 154 346 259 17 894
14 279 1 169 472 255 16 175
Inventories Trade accounts receivable Other accounts receivable Accruals Cash & cash equivalents Current assets
80 738 60 578 8 930 38 036 44 912 233 194
49 664 71 594 5 061 23 360 27 033 176 712
Total assets
251 088
192 887
Liabilities and shareholders’ equity Share capital Capital reserves Retained earnings Shareholders’ equity
322 8 885 –18 256 –9 049
322 8 874 –12 490 –3 294
Bank loan Other liabilities Accrued liabilities Deferred income tax liabilities Long-term liabilities
24 480 0 0 2 234 26 714
36 640 7 087 731 2 234 46 692
Trade accounts payable Current income tax liabilities Other liabilities Bank loan Deferral Current liabilities
77 425 1 083 11 422 128 479 15 014 233 423
34 502 21 563 22 616 56 545 14 263 149 489
Total Liabilities and shareholders’ equity
251 088
192 887
(CHF 000)
Assets Property, plant & equipment Intangible assets Other accounts receivable Deferred tax assets Fixed assets
8
Consolidated statement of cash flows January 1 to June 30 (CHF 000) Net profit before income taxes Adjustments to reconcile profit before tax to net cash flow: Non-cash transactions Interest income / expense Depreciation and amortization Changes of provisions, net Profit from disposals of fixed assets Working capital adjustments Trade accounts receivable Other accounts receivable and accruals Inventories Trade accounts payable Other accounts payable and deferrals Income taxes paid Net cash from operating activities
2017
2016
17 426
17 595
947 2 837 –478 –7
666 2 953 –39 –10
11 869 –18 236 –29 930 41 999 –4 088 –24 161 – 1 822
–8 826 –8 322 –7 652 43 404 –4 602 –4 443 30 724
Acquisitions of Property, plant & equipment Intangible assets Securities in fixed assets Acquisition of subsidiaries less cash & cash equivalents Proceeds from disposals of Property, plant & equipment Dividends received Interest received Net cash from investing activities
–3 972 –735 0 –15 705
–2 600 –468 –10 –10 846
268 28 122 –19 994
119 1 75 –13 729
Issuance of bank loan Amortization of bank loan Interest paid Purchase of treasury shares Sale of treasury shares Dividends paid Net cash from financing activities
62 781 –4 000 –1 097 –291 302 –19 305 38 390
17 000 –4 000 –742 –1 079 1 066 –19 278 –7 033
1 305
225
17 879 27 033 44 912
10 187 14 282 24 469
Effect of foreign currency translation Net increase in cash & cash equivalents Cash & cash equivalents at January 1 Cash & cash equivalents at June 30
9
Financial Report • Consolidated financial statements mobilezone Group
Consolidated statement of changes in shareholders’ equity Movement of shareholders’ equity (CHF 000) At December 31, 2015 Net profit Purchase of treasury shares Sale of treasury shares Dividends paid Profit of treasury shares Acquisitions Foreign currency differences At June 30, 2016 At December 31, 2016 Net profit Purchase of treasury shares Sale of treasury shares Dividends paid Profit of treasury shares Acquisitions Foreign currency differences At June 30, 2017
Share capital
Treasury shares
Capital reserve
Retained earnings
322
0
8 813
–21 277 12 319
–1 079 1 066 –19 278 13
–13
322
0
8 800
322
0
8 874
–1 251 –30 –29 517 –12 490 13 656
–291 302 –19 305 –11
322
0
As of June 30, 2017, mobilezone holding ag holds no treasury shares (2016: 0).
11
8 885
–471 354 –18 256
Total –12 142 12 319 –1 079 1 066 –19 278 0 –1 251 –30 –20 395 –3 294 13 656 –291 302 –19 305 0 –471 354 –9 049
10
Segment information Income statement of January 1, to June 30 (CHF 000)
Net sales with third parties Net sales with other segments Net sales Cost of goods and materials Gross profit Other operating income Personnel costs Other operating costs Operating profit (EBITDA)
Total mobilezone Group 2017 2016 512 584 523 361 0 0 512 584 523 361
Trade 2017 469 286 1 961 471 247
Service Providing
Unallocated/ Elimination 2017 2016 0 0 –3 641 –3 024 –3 641 –3 024
2016 489 107 953 490 060
2017 43 298 1 680 44 978
2016 34 254 2 071 36 325
–447 322 –457 188 –422 409 –437 869 65 262 66 173 48 838 52 191
–28 772 16 206
–22 455 13 870
3 859 218
3 136 112
34 –29 125 –14 961 21 210
164 –29 891 –15 232 21 214
360 –21 040 –13 928 14 230
484 –21 431 –16 561 14 683
4 –7 118 –1 977 7 115
10 –7 512 –2 162 4 206
–330 –967 944 –135
–330 –948 3 491 2 325
Depreciation of property, plant & equipment
–2 087
–2 190
–1 794
–1 751
–285
–423
–8
–16
Amortization of intangible assets Operating profit (EBIT)
–750 18 373
–763 18 261
–72 12 364
–55 12 877
–678 6 152
–708 3 075
0 –143
0 2 309
Fixed assets Current assets Total assets
17 894 233 194 251 088
12 352 185 247 197 599
14 719 217 199 231 918
8 907 162 926 171 833
3 143 28 355 31 498
3 211 29 910 33 121
32 –12 360 –12 328
234 –7 589 –7 355
Liabilities
260 137
217 994
278 425
230 865
14 540
12 658
–32 828
–25 529
4 707
3 068
3 699
2 130
1 008
869
0
69
Statement of financial position (CHF 000)
Investments in property, plant & equipment and intangible assets
The management of mobilezone Group is the main decision-maker and determines the business activities. The mobilezone Group has two reportable segments, which correspond to the management structure of the Group. The segment Trade consists of mobilezone ag, mobilezone business ag, mobilezone service ag, einsAmobile GmbH and einsAmobile Management GmbH. The segment Service Providing consists of TalkTalk AG, mobiletouch ag and mobiletouch austria gmbH. Effective January 1, 2017, mobilezone business ag merged with mobilezone service ag (absorption). The mobilezone Group monitors performance based on the segment’s operating profit before interests and taxes (EBIT). The total assets of each segment comprise all assets of the segment. Internal reporting of the mobilezone Group is based on the Swiss GAAP FER. The segment Trade operates in Switzerland and in Germany, the segment Service Providing in Switzerland and in Austria. The item Unallocated/Eliminations comprises transactions between the segments and the holding company as well as the result of the holding company. Within the assets and liabilities, loans between Group companies are eliminated.
Financial Report • Consolidated financial statements mobilezone Group
11
Notes to the consolidated semi-annual report 1
Important principles of Group accounting These consolidated semi-annual financial statements of the Group have been prepared in accordance with all existing guidelines of Swiss GAAP FER (Swiss Accounting and Reporting Recommendations). The consolidated semi-annual financial statements of mobilezone provide a true and fair picture of its asset, financial, and earnings situation (true and fair view) in accordance with the principles of Swiss GAAP FER and comply with Swiss law. The new regulations for the recognition of sales revenue that took effect on January 1, 2016, had no effect on the reporting in the Group’s balance sheet and income statement. The consolidated semi-annual financial statements of mobilezone have been prepared on a historical cost basis, except for derivative financial instruments and securities; these latter are listed at fair market value. The consolidated semi-annual financial statements are based on the subsidiaries’ unaudited separate financial statements that have been prepared on the basis of uniform guidelines. The uniform balance sheet date is June 30, 2017. The reporting currency is the Swiss franc (CHF). The unaudited semi-annual financial statements do not include all the information and disclosures that are required in the consolidated annual report. Therefore, these statements should be read in connection with the Group’s 2016 annual report for the year ending December 31, 2016. Scope of consolidation The consolidated financial statements of mobilezone include the financial statements of mobilezone holding ag and all subsidiaries it controls directly or indirectly by majority of votes or other means. mobilezone holding ag currently holds shares in the following companies: Company
Corporate headquarters
Currency
mobilezone ag mobilezone business ag4 einsAmobile GmbH3 einsAmobile Management GmbH3 Mister Mobile GmbH3 TalkTalk AG mobiletouch ag mobiletouch austria gmbH
CH-Regensdorf CH-Urnäsch D-Obertshausen D-Obertshausen D-Obertshausen CH-Zug CH-Zweidlen A-Wien
CHF CHF EUR EUR EUR CHF CHF EUR
Equity capital (000) 2 850 100 50 25 25 100 100 35
Shares in the company
Segment
Conso lidation
100% 100% 100% 100% 75% 100% 100% 100%
Trade Trade Trade Trade Trade Service Service Service
F1 F1 F1 F1 A2 F1 F1 F1
F: fully consolidated A: Acquisition cost 3 since april 2015 4 Effective January 1, 2017, mobilezone business ag merged with mobilezone service ag (absorption). 1
2
At the end of March 2015 the companies einsAmobile GmbH, einsAmobile Management GmbH, and Mister Mobile GmbH were acquired. The companies specialize in brokering mobile phone contracts and in the sale and distribution of hardware. The purchase agreement includes a variable component (earn-out) that depends on einsAmobile future results. Future changes in the variable part of the purchase price will be offset against shareholders’ equity as goodwill. In the reporting period a purchase price adjustment in the amount of CHF of 0.5 million was made. In April 2017 the earn-out for fiscal year 2016 in the amount of CHF 15.7 million was paid.
12
3
Goodwill Goodwill is offset against shareholders’ equity (profit reserve) at the time of acquisition. The resulting effects on shareholders’ equity and profit or loss over a useful life of 5 years are documented below. Theoretical effect on balance sheet (CHF 000) Shareholders’ equity acc. to balance sheet Capitalization of net book value goodwill Shareholders’ equity incl. net book value goodwill Theoretical effect on net profit (CHF 000) Net profit acc. to income statement Amortization of goodwill Net profit after amortization of goodwill
30.06.2017 –9 049 41 524 32 475
30.06.2016 –20 395 51 881 31 486
2017 13 656 –8 701 4 955
2016 12 319 –8 649 3 670
4
Seasonality The business of the segment Trade shows seasonal fluctuations due to the Christmas sales. Consolidated sales and results of the first half year are thus usually lower than those of the second half of the year.
5
Contingent liabilities Per June 30, 2017, trade accounts receivable in the amount of CHF 43.5 million (12/31/16: CHF 46.4 million) and inventories in the amount of CHF 51.0 million (12/31/16: CHF 0) were pledged for credit lines at banks. There are no other contingent liabilities subject to reporting requirements.
6
Events following the balance sheet date The company knows of no events following the balance sheet date that significantly affect the semi-annual report. The Board of Directors approved this report on August 16, 2017.
13
Companies MOBILEZONE HOLDING AG
MOBILETOUCH AG
Riedthofstrasse 124, CH-8105 Regensdorf
Spinnerei-Lettenstrasse, CH-8192 Zweidlen
T +41 43 388 77 1 1 F +41 43 388 77 92
T 0840 303 303
[email protected] www.mobilezone.ch/about-us/investors/reports Investor Relations: Markus Bernhard Andreas Fecker Media Relations: Markus Bernhard MOBILEZONE AG Riedthofstrasse 124, CH-8105 Regensdorf T +41 43 388 77 11
[email protected] www.mobiletouch.ch MOBILETOUCH AUSTRIA GMBH Lemböckgasse 49, A-1230 Wien T +43 1 866 49 0
[email protected] www.mobiletouch.at EINSAMOBILE GMBH
[email protected] www.mobilezone.ch
Samerwiesen 6, D-63179 Obertshausen
MOBILEZONE BUSINESS AG
[email protected] www.einsamobile.de
Bahnweg 4, CH-9107 Urnäsch T +41 71 421 46 80
T +49 6104 405 70
EINSAMOBILE MANAGEMENT GMBH
[email protected] www.mobilezone.ch
Samerwiesen 6, D-63179 Obertshausen
TALKTALK AG
[email protected] www.einsamobile.de
Poststrasse 18, CH-6301 Zug T 0800 300 250
[email protected] www.talktalk.ch
T +49 6104 405 70
MISTER MOBILE GMBH Samerwiesen 6, D-63179 Obertshausen T +49 30 223 865 18
[email protected] www.deinhandy.de
