mobilezone holding AG
mobilezone with stable business – slightly higher sales – outlook for 2024 confirmed

PRESS RELEASE

Ad hoc announcement pursuant to Art. 53 LR

Rotkreuz, 16 August 2024

• Currency-adjusted sales of CHF 488 million (previous year: CHF 474 million)
• EBITDA of CHF 35.0 million (previous year: CHF 33.4 million)
• Operating income (EBIT) amounted to CHF 28.1 million (previous year: CHF 28.1 million)

Markus Bernhard, Executive Delegate of the Board of Directors, says: “The first half of the year showed a stable development in sales and EBIT. We are on track for the 2024 financial year as a whole and can therefore confirm our EBIT guidance of CHF 68 to 75 million at the lower end of this range.”

Currency-adjusted sales increased by +3.0 per cent to CHF 488 million in the first half of 2024 (previous year: CHF 474 million). The number of mobile phone, digital TV and Internet contracts negotiated increased by 2.6 per cent to 737,000 contracts in the first half of the year (previous year: 718,000). In the German online business, 304,000 or 13 per cent more mobile phone contracts were negotiated. In the Swiss retail business, a decline in sales figures in the contract and accessories business can be noted due to lower sales output in the shops. In the MVNO (Mobile Virtual Network Operator) business in Germany and Switzerland, a net increase in postpaid subscriptions totalling 39,100 in the first half of the year increased the number of subscriptions by 13.2 per cent to 334,400 by mid-2024. The number of smartphones repurchased by mobilezone in Switzerland, which are refurbished within the company's own value chain and resold to end consumers in Switzerland under the jusit brand, increased by 126 per cent to 7,900.

Key figures at a glance

• Of the sales of CHF 480 million, 72 per cent were generated in Germany and 28 per cent in Switzerland (previous year: 69/31 per cent). Currency-adjusted sales totalled CHF 488 million (+3.0 per cent).
• MVNO sales increased by 22 per cent from CHF 30.0 million to CHF 36.6 million.
• MVNO postpaid subscriptions increased in the first half of the year by 13.2 per cent from 295,300 to 334,400.
• Gross profit totalled CHF 94.7 million (previous year: CHF 96.4 million).
• The operating result before depreciation and amortisation (EBITDA) amounted to CHF 35.0 million (previous year: CHF 33.4 million) and increased by 4.8 per cent compared to the previous year.
• The EBITDA of the MVNO totalled CHF 13.0 million (previous year: CHF 10.2 million) or 37.1 per cent (previous year: 30.5 per cent) of the total EBITDA.
• Operating income (EBIT) amounted to CHF 28.1 million (previous year: CHF 28.1 million) with a constant EBIT margin of 5.9 per cent compared to the previous year, to which Germany contributed 46 per cent and Switzerland 54 per cent (previous year: 47/53 per cent).
• Financial expenses increased by CHF 0.3 million to CHF 2.5 million (previous year: CHF 2.2 million).
• Tax expenses totalled CHF 6.1 million, an increase of CHF 1.0 million compared to the same period of the previous year. The tax rate was 23.2 per cent (previous year: 19.8 per cent).
• Net income totalled CHF 20.3 million (previous year: CHF 20.9 million).
• Gross cash flow from operating activities totalled CHF 36.0 million (previous year: CHF 34.0 million).
• Net debt increased to CHF 121 million (31.12.2023: CHF 91 million / 30.06.2023: CHF 107 million) due to the dividend distribution of CHF 39 million in April 2024.
• The net debt to EBITDA ratio was 1.53 (31.12.2023: 1.18 / 30.06.2023: 1.46).
• Shareholders’ equity in the statutory financial statements of mobilezone holding ag amounted to CHF 119 million (31.12.2023: CHF 132 million / 30.06.2023: CHF 126 million).
• Earnings per share amounted to CHF 0.47 (previous year: CHF 0.48).
• The share price was CHF 13.64 on 30 June 2024 compared to CHF 13.72 on 31 December 2023.

Market Area Switzerland

Profitability in Switzerland increased in the reporting period compared to the previous year.

• Sales in the Switzerland market area fell from CHF 151 million to CHF 135 million, or 10.6 per cent.
• EBITDA amounted to CHF 18.9 million (previous year: CHF 18.4 million).
• As in the previous year, EBIT amounted to CHF 15.1 million, which corresponds to a return on sales of 11.2 per cent (previous year: 10.0 per cent).
• The number of shops was 126 (31.12.2023: 127).
• The number of negotiated contracts (postpaid, Internet and TV) was 183,000 (previous year: 217,000).
• MVNO revenue from TalkTalk and Digital Republic totalled CHF 18.0 million (previous year: CHF 15.4 million). At the end of June 2024, the number of postpaid subscriptions was 162,600, an increase of 8.5 per cent. (31.12.2023: 149,800).
• Sales of accessories fell by 14.9 per cent to CHF 10.3 million (previous year: CHF 12.1 million) due to lower footfall in the shops and accounted for 7.6 per cent (previous year: 8.0 per cent) of sales in Switzerland.
• Sales of jusit brand refurbished smartphones increased from 3,500 to 7,900, or by 125.7 per cent.
• Service sales (fleet management, data transfer, setting up smartphones and other services) totalled CHF 3.6 million (previous year: CHF 3.8 million).

Market area Germany

In Germany, sales figures increased in the first half of the year despite a persistently challenging market environment. The market environment, which was characterised by consumer sentiment and price pressure, proved to be very competitive and led to a reduction in the gross profit margins achieved.

• In local currency, mobilezone increased sales in the German market area by 9.3 per cent to EUR 363 million (previous year: EUR 332 million). In the reporting currency CHF, sales increased from CHF 326 million to CHF 346 million or 6.1 per cent.
• EBITDA totalled EUR 16.7 million (previous year: EUR 15.3 million).
• EBIT amounted to EUR 13.5 million (previous year: EUR 13.3 million), which corresponds to a return on sales of 3.8 per cent (previous year: 4.0 per cent). In the reporting currency CHF, EBIT totalled CHF 13.0 million (previous year: CHF 13.2 million)
• In the online business, 304,000 (previous year: 269,000) mobile phone contracts were negotiated; this corresponds to an increase of 13.0 per cent.
• The contract volume in B2B commerce increased by 7.3 per cent to 249,000 (previous year: 232,000) mobile phone contracts.
• A total of 553,000 (previous year: 501,000) mobile phone contracts were negotiated "online" and in B2B retail, which corresponds to an increase of 10.4 per cent.
• Sales of MVNO HIGH totalled EUR 19.4 million (previous year: EUR 14.9 million). The postpaid customer base stood at 171,800 (31.12.2023: 145,500) and increased by 18.1 per cent.

Change in Management Board

As announced early in February 2023, CEO Markus Bernhard has stepped down as CEO of the mobilezone Group with effect from 30 June 2024. As Executive Delegate of the Board of Directors, he will continue to be responsible for strategic development, the MVNO business, maintaining investor relations and the company's M&A activities. Roger Wassmer (CEO mobilezone Switzerland) and Wilke Stroman (CEO mobilezone Germany) have taken over the management of the mobilezone Group as Co-CEOs as of 1 July 2024.

Annual General Meeting and dividends

At the Annual General Meeting on 3 April 2024, the shareholders approved all of the Board of Directors' proposals. Among other things, a dividend of CHF 0.90 per registered share was approved, as in the previous year, which was paid out on 12 April 2024.

Sustainability as an integral part of the corporate strategy

Sustainability has long been an integral part of mobilezone's corporate strategy. The sustainability strategy comprises five focus topics that cover the entire ESG spectrum (environmental, social and governance).

• Governance and compliance
• Employees
• Customers
• Smartphone cycle
• Environmental management

In May 2024, two mobilezone business units were awarded a medal by the sustainability assessment provider EcoVadis: Gold for the business division and Silver for the refurbishing business. The awards show that mobilezone is on track with its sustainability initiatives.

The Second Life segment, respectively the repair and refurbishing of smartphones, continues to gain in importance. 7.3 per cent of the smartphones sold by mobilezone in Switzerland in the first half of the year were used smartphones (previous year: 3.1 per cent) and were brought back onto the market as refurbished second-life devices in the spirit of a sustainable device cycle.

Outlook 2024

Business performance was stable in the first half of the year. mobilezone is on track and can confirm the EBIT guidance of CHF 68 to 75 million to be at the lower end of this range. The attractive dividend policy will be continued. mobilezone is also still aiming to increase the EBIT margin from 6.5 per cent (2023) to 8.0 per cent in 2025.

The net-debt-to-EBITDA ratio is expected to be between 1 and 1.2 at the end of the year.

For the MVNO business area with TalkTalk, Digital Republic and HIGH, strong customer growth to over 370,000 customers by the end of 2024 (31.12.2023: 295,300) is still planned. The company is expecting the MVNO contribution to EBITDA to increase further.

mobilezone expects investments (excluding customer acquisition costs) to decrease from CHF 11.5 million (2023) to CHF 10.4 million in 2024.

Based on the significantly reduced cost base and increased recurring revenues, the management is confident that the mobilezone Group will continue to develop positively.

The half-year report 2024 is now available at https://www.mobilezoneholding.ch/en/investors-1/reports-and-presentations.html

A video conference for investors, analysts and media representatives will be held today, 16 August 2024, at 9.15 a.m. in German. Registration for participation is possible via the following link: https://www.mobilezoneholding.ch/en/investors-1/videoconference.html.

The presentation in written form in German and English is available at https://www.mobilezoneholding.ch/en/investors-1/reports-and-presentations.html

Contact for analysts, investors and media representatives

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

About mobilezone
Founded in 1999, mobilezone holding ltd is the leading independent Swiss and German telecoms specialist with a turnover of CHF 1.0 billion and a consolidated net income of CHF 49.5 million in the reporting year 2023. The registered shares of mobilezone holding ltd (MOZN) are traded on the SIX Swiss Exchange Ltd.

The mobilezone Group employs around 1,000 people at its sites in Rotkreuz, Urnäsch, Cologne, Bochum and Münster. It offers a complete range of mobile phones and tariff plans for mobile and landline telephony, digital TV, and internet from all providers. Independent advice and services for private and business customers, repair services and supplying specialist retailers complete the range. The services and products are offered online via various web portals and in over 125 shops in Switzerland.
www.mobilezoneholding.ch