mobilezone holding AG
mobilezone Group achieves strong result for 2022 – increased market shares – 7.5 per cent organic sales growth to over CHF 1 billion

PRESS RELEASE

Ad hoc announcement pursuant to Art. 53 LR

Rotkreuz, 10 March 2023

• Organic sales growth of plus 7.5 per cent to CHF 1.05 billion
• Operating profit of CHF 70.6 million (previous year: CHF 66.7 million)
• Net profit of CHF 54.5 million (previous year: CHF 50.7 million)

Markus Bernhard, CEO of mobilezone Group is satisfied with the 2022 business results: "Last year we seamlessly followed up on the record financial result of the previous year, expanding our market position by increasing sales volume both in Germany and Switzerland."

Organic sales growth (currency adjusted) was 7.5 per cent. Sales amounted to CHF 1 billion, of which 69 per cent was achieved in Germany and 31 per cent in Switzerland. “Online" sales of CHF 400 million (previous year: CHF 374 million) or 40 per cent of sales were generated with its own platforms. The good result with an operating EBIT of CHF 70.6 million (previous year: CHF 66.7 million) and an EBIT margin of 7.0 per cent (previous year: 6.8 per cent) confirms the execution of our strategy. Adjusted for the negative currency impact of CHF 2.7 million, EBIT for the reporting year was CHF 73.3 million.

Excluding the non-cash special effect of CHF 6 million from the sale of the wholesale business in Germany in January 2021, EBIT in the previous year was CHF 72.7 million.

Financial guidance

The EBIT guidance as well as the sales expectation were achieved despite a negative currency impact of CHF 2.7 million on EBIT and CHF 52 million on sales. The EBIT target of 7.6 per cent could not be met due to the challenging economic environment in the second half of 2022 and consequently lower margins in the German business.

Key figures at a glance

• Organic sales growth of plus 7.5 per cent from CHF 982 million to CHF 1.055 billion. Taking into account the negative currency effect of 5.3 per cent, sales amounted to CHF 1,003 million.
• Operating profit (EBIT) of CHF 70.6 million (previous year: CHF 66.7 million) with an EBIT margin of 7.0 per cent (previous year: 6.8 per cent), with Switzerland and Germany each contributing 50 per cent.
• Financial expenses decreased by CHF 1.1 million to CHF 1.9 million (previous year: CHF 3.0 million).
• Tax expenses amounted to CHF 14.2 million and increased by CHF 0.4 million compared to the previous year.
• Net profit was CHF 54.5 million (previous year: CHF 50.7 million).
• Free cash flow amounted to CHF 100.8 million (previous year: CHF 67.6 million).
• Net working capital at the end of the year was CHF 124 million (previous year: CHF 85 million).
• Financial liabilities amounted to CHF 149 million compared to CHF 134 million at the end of December 2021.
• Net debt decreased to CHF 30 million (previous year: CHF 76 million).
• The ratio of net debt to EBITDA was 0.38 (previous year: 0.99).
• Shareholders' equity in the statutory financial statements of mobilezone holding ag amounted to CHF 147 million (previous year: CHF 175 million).
• The first tranche of the 2022-2025 share buyback programme was completed with 770,865 shares (1.75 per cent of outstanding shares) on 20 October 2022 at an average price of CHF 15.57 per share or a total of CHF 12.0 million.
• Earnings per share was CHF 1.25 (previous year: CHF 1.13).
• The Board of Directors will propose a dividend of CHF 0.90 per registered share (previous year: CHF 0.84) to the General Meeting.
• The share price was CHF 15.32 on 31 December 2022 compared to CHF 13.62 at the end of December 2021.

Market area Switzerland

Business development in all sectors in Switzerland was highly gratifying.

• At EBIT-level, retail and B2B segments were able to confirm the best result in the company's history achieved in previous year.
• Sales decreased from CHF 323 million to CHF 305 million, or 5.6 per cent. The decrease in sales is due to lower hardware sales.
• EBIT amounted to CHF 35.5 million (previous year: CHF 36.3 million), which corresponds to a return on sales of 11.6 per cent (previous year: 11.2 per cent).
• The number of shops was 124 as it was in the previous year.
• Negotiated contracts (postpaid, internet and TV) increased by 9.8 per cent to 437,000 (previous year: 398,000).
• Service sales (fleet management, data transfer, smartphone setup and other services) amounted to CHF 7.4 million (previous year: CHF 7.2 million).
• Accessories sales increased by 4.2 per cent to CHF 24.9 million (previous year: CHF 23.9 million) and account for 8.2 per cent (previous year: 7.4 per cent) of sales in Switzerland.
• Sales with the Mobile Virtual Network Operator (MVNO) TalkTalk amounted to CHF 21.2 million (previous year: CHF 17.1 million). The share of sales from mobile customers rose to 88 per cent (previous year: 79 per cent). In the Postpaid SIM cards segment, the number of customers was expanded to 66,600 (previous year: 45,700) or 46 per cent.

Market area Germany

Business in Germany was excellent in the first half of the year. In the second half of the year, the gross profit margin in the contract business decreased slightly due to a fierce competition.

• In local currency, the German organisation increased sales by 13.5 per cent in 2022. In the reporting currency CHF, sales increased from CHF 659 million to CHF 696 million or 5.6 per cent.
• EBIT amounted to CHF 35.6 million (previous year: CHF 36.2 million), which corresponds to a return on sales of 5.1 per cent (previous year: 5.5 per cent). Adjusted for currency effects, EBIT was CHF 38.3 million, an increase of 5.8 per cent.
• The volume in the online business increased by 6.3 per cent to 638,000 (previous year: 600,000) mobile communications contracts.
• In B2B trade, 453,000 (previous year: 419,000) mobile communications contracts were concluded; this corresponds to an increase of 8.1 per cent.
• In total, 1,091,000 (previous year: 1,019,000) mobile communications contracts were sold "online" and in B2B trade, which corresponds to an increase of 7.1 per cent.
• Sales with the MVNO HIGH amounted to CHF 23.0 million (previous year: CHF 17.3 million). The customer base was 98,000 (previous year: 69,000) an increase of 42 per cent.

Growth in second life and refurbishing of smartphones

The second life segment, or the repair and refurbishing of smartphones, continues to gain in importance. During 2022, 2.8 per cent of the total smartphones sold by mobilezone Switzerland were refurbished smartphones (previous year: 1.5 per cent). 8.3 per cent of the total smartphones sold were returned and sold in the market as second life devices, which contributes to the sustainability strategy of mobilezone (previous year: 6.4 per cent). Since November 2022, mobilezone Germany has been selling refurbished devices via Sparhandy.

Change in the Board of Directors/Group Management

CEO Markus Bernhard will resign on 30 June 2024 as CEO of mobilezone Group and will continue to be in charge of strategic further development, investor relations and the M&A area of the company as the operational delegate of the Board of Directors. He will be proposed for election to the Board of Directors of the mobilezone Group on the occasion of the Annual General Meeting of 5 April 2023 and will replace Peter K. Neuenschwander, who will no longer be standing for re-election. In this way, the Board of Directors is setting an example of continuity and the strategic direction of mobilezone. The Board of Directors would like to take this opportunity to thank Peter K. Neuenschwander for his invaluable contribution over the past years.

General Meeting on 5 April 2023

The 2023 General Meeting will take place with the physical presence of the shareholders in the Dorfmatt community hall in Rotkreuz. The Board of Directors will propose to the General Meeting a dividend of CHF 0.90 per registered share, or CHF 0.06 more than in the previous year. Half of the payout consists of available earnings and half from reserves from capital contributions corresponding to a payout ratio of 73 per cent of the Group’s net profit. If this proposal is approved, the dividend will be paid out on 14 April 2023. From 12 April 2023, the shares will be traded ex-dividend.

Confident outlook for 2023

The last three years have clearly proven the stability and resilience of mobilezone’s business model. There is a great demand for telecommunications products among the public. The times when personal contacts were limited have confirmed this. Accordingly, mobilezone is looking ahead to the next few years with confidence in all business segments in Germany and Switzerland.

For Germany, the company expects the consumer climate to brighten up in the spring and assumes that omnipresent topics such as inflation and energy costs will also ease somewhat in the media. Furthermore, mobilezone expects more customer traffic in its 124 shops in the Swiss business. The two mobile virtual network operators (MVNO) TalkTalk and HIGH will continue the impressive growth of the last two years. The two acquisitions made at the beginning of January with Digital Republic and SIGA complement the business in Switzerland and Germany perfectly. Both businesses have developed well since the takeover. Due to these acquisitions, the share buyback programme will be paused in 2023.

The EBIT expectation for the 2023 fiscal year is CHF 70 to 77 million. The attractive dividend policy will be continued, which would mean a further increase in dividend if the financial targets are achieved. In addition, the company continues to aim for a steady increase in the EBIT margin from today’s 7.0 per cent in the coming years. mobilezone expected growth above all in the online and MVNO business. In terms of investments, the company expects a decrease from CHF 17.5 million to CHF 13 million in 2023, as the conversion of the shops in Switzerland into the new shop layout was completed in 2022 and the new development of the online platforms in Germany will be put into active operation in the first half of 2023. The Group is very well positioned today and looks forward to positive further development.

The 2022 Annual Report with the detailed financial statements according to Swiss GAAP FER is now available at http://www.mobilezoneholding.ch/en/investors-1/reports-and-presentations.html

A video conference for investors, analysts and media professionals will take place at 9:15 a.m. this morning (in German): http://www.mobilezoneholding.ch/en/investors-1/videoconference.html

A summary of the figures can be found in a video presentation (in German): http://www.mobilezoneholding.ch/en/investors-1/reports-and-presentations.html

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

Contact for analysts, investors and the media

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, Zurich, Cologne, Bochum, Münster and Berlin. 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 120 mobilezone shops in Switzerland.
www.mobilezoneholding.ch/en