Ascom increases its Group profit by about two thirds

Jan 27, 2014

From a today's perspective, Ascom is expecting a Group profit for 2013 in the magnitude of CHF 36 million and thereby a profit increase of about two thirds.
Full details of Ascom's financial statements and the 2013 Annual Report will be published on 5 March 2014.

EBITDA margin of about 15.7% for the core business
Based on preliminary unaudited results, Ascom generated in 2013 in its core business (including Wireless Solutions, Network Testing and Corporate, but excluding the activities related to the non-core real estate) revenues of about CHF 439 million, representing a growth rate of 2.6%. Ascom posted in its core business an EBITDA of about CHF 69 million with an EBITDA margin of about 15.7%.

Including the activities related to the non-core real estate, Ascom generated in 2013 revenues of close to CHF 460 million (2012: CHF 449.8 million) on Group level, representing a growth rate of 2.2%. The EBITDA margin on Group level amounts to about 14.7% (prior-year: 10.9 %*).

Significant profit increase on Group level
Based on the preliminary results and from a today's perspective, Ascom reports for 2013 the best ever operating margin achieved in its history. Ascom is expecting a Group profit for 2013 in the magnitude of CHF 36 million, which is about two thirds higher than in the previous year (2012: CHF 21.8 million*).

The net debt of the Ascom Group as of 31 December 2013 amounts to CHF 3 million and is significantly lower than in the previous year (CHF 41.3 million). The equity ratio increased to more than 50%.

Wireless Solutions further increased its EBITDA margin
Ascom Wireless Solutions continued to be a stable business on a high profitability level. The Division recorded revenue growth of 2.8% year-on-year and generated revenues of about CHF 306 million for the full-year 2013. Wireless Solutions further improved its profitability and posted the best year ever with an EBITDA margin of over 17% (2012: 16.2%).

Network Testing confirms successful turnaround
Ascom Network Testing confirmed the turnaround successfully achieved in 2012. Revenues increased for the full-year 2013 by 2.3% to about CHF 133 million. The Division improved its profitability substantially compared to the previous year and achieved an EBITDA margin of over 13% (2012: -3.5%).

Good starting point for 2014
The incoming orders increased by about 11% year-on-year in the core business, also due to a strong order intake in December 2013. In addition, the order backlog increased by about 12% compared to the previous year. The higher order backlog combined with the recently concluded acquisition of Integrated Wireless in Australia will substantially support the achievement of the growth targets in 2014.

Final results
Ascom will publish further information and full details of its financial statements and the 2013 Annual Report at the Annual Media Conference to take place on 5 March 2014.

* restated according to IAS 19

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).