Ascom achieves in the first half-year 2015 about 13% revenue growth in its core business at constant currencies - Group profit increased by about one third

Jul 23, 2015

Based on preliminary figures, Ascom expects in the first half-year 2015 double-digit organic revenue growth in both divisions at constant currencies. The EBITDA in the core business increased in the first six months by about 23%.

Strong development in Ascom's core business
In its core business (including Wireless Solutions, Network Testing and Corporate, but excluding the activities related to non-core real estate), on a preliminary figures basis, Ascom generated revenue of around CHF 202 million (H1/2014: CHF 193.4 million) for the first six months, representing growth of about 13% at constant currencies and 4% at actual currencies. Incoming orders grew about 4% at constant currencies to about CHF 210 million (H1/2014: CHF 219.7 million). The EBITDA in the core business for the first half-year 2015 increased by about 23% to around CHF 20.5 million (H1/2014: CHF 16.7 million), resulting in an EBITDA margin of about 10% (H1/2014: 8.6%).

Both divisions post double-digit revenue growth
Wireless Solutions experienced a flawless first half-year 2015. Supported by strong momentum in its key markets, the Division grew its revenue to around CHF 147 million (H1/2014: CHF 140.8 million), reflecting about 14.5% growth at constant currencies and 4.5% at actual currencies. Incoming orders amounted to about CHF 160 million (H1/2014: CHF 161.9 million). Wireless Solutions increased the EBITDA margin to about 14.5% (H1/2014: 10.9%). This includes the planned additional investments to accelerate the implementation of the Ascom 2020 strategy with its focus on healthcare ICT as announced in January 2015.

Network Testing posts in the first half-year 2015 revenue growth of about 10% at constant currencies and 3.5% at actual currencies, increasing revenue to around CHF 55 million (H1/2014: CHF 52.7 million). Incoming orders amounted to about CHF 50 million (H1/2014: CHF 57.9 million). Impacted by the planned additional investments in the further development of the business, the EBITDA margin amounts to around 1% (H1/2014: 4.4%).

Group profit increased by about one third
Driven by the positive business development, Ascom increased Group profit in the first six months by about one third to around CHF 11 million (H1/2014: CHF 8.2 million) reflecting an improvement in earnings quality as the Group profit for the first half-year 2015 does not include any gains from real-estate activities. By contrast, the Group profit for the first half-year 2014 benefited from real estate gains of CHF 4.7 million and amounted to CHF 3.5 million net of these effects.
Ascom as a Group generated in the first half-year revenue of around CHF 203 million (H1/2014: CHF 202.7 million) despite the negative impact of the significant Swiss franc appreciation during the first half of 2015 and the planned revenue decrease in non-core real-estate activities (from CHF 9.3 million in H1/2014 to about CHF 1.5 million in H1/2015). On Group level, Ascom achieved revenue growth of about 9% at constant currencies. Incoming orders amount to about CHF 212 million (H1/2014: CHF 229.0 million).

Outlook
Based on the good results for the first half-year and the positive outlook for the second half-year, Ascom is confident to achieve the guided core business targets for the full-year 2015 of organic revenue growth of 3 - 7% and an EBITDA margin of 13 - 16%.

Final results
Ascom will publish further information and full details on its financial statements as well as the complete 2015 Half-Year Report on 19 August 2015.

This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).

This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).