AVENIR TELECOM (EPA:AVT) Full-year 2012-2013 Results

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20/06/2013 17:44

Press release

                          Full-year 2012-2013 results

* Operating income of EUR6.8 million before goodwill impairment

* Cash flow of EUR8.9 million

* Net financial debt representing 25% of shareholders' equity

Marseilles, 20 March 2013. The Avenir Telecom Group, a leading distributor of
mobile telephony products and connected devices, recorded operating income of
EUR6.8 million before goodwill impairment due to store disposals in Portugal in
its 2012-2013 financial year (from 1 April 2012 to 31 March 2013).

The Group maintained a gross margin of almost 27% of revenues due to the
increase in revenues from mobile phone accessories and connected devices
(+15.8%) and active management of its in-store product mix, which raised the
gross margin on direct distribution to 41.4%. The Group cut its operating
expenses by over 11% during the 2012-2013 financial year, equivalent to
full-year savings of EUR13 million, particularly in direct distribution, where
the Group continued to refocus its store base.

The Group has stabilized its operating income at EUR5.0 million in the second
semester of 2012-2013 compared to the second semester of 2011-2012.

The Group derecognised goodwill of EUR5.7 million following the disposal of
part of its operations in Portugal in November 2012 (the amount of goodwill
carried in the balance sheet is only EUR7.8 million as of 31 March 2013).

(EUR millions)                                2012-2013       2011-2012

Revenues                                          412.6           469.7
Gross margin (1)                                  109.8           128.7
% of revenues                                     26.6%           27.4%
Operating income before goodwill
impairment                                          6.8            12.6
Goodwill impairment                               (5.7)               -
Operating income                                    1.1            12.6
Net income attributable
to shareholders                                   (2.9)             6.0

(1). Taking into account the net change in impairments of current assets and
other non-recurrent items (-EUR1 .2 million in 2012- 2013 and EUR1 .0 million
in 2011-2012)

Direct distribution: increase in operating income before goodwill impairment

(EUR millions)                                    2012-2013    2011-2012

Revenues                                              196.2        237.9
Gross margin (1)                                       81.3         94.5
% of revenues                                         41.4%        39.7%
Operating income before goodwill
impairment                                              4.0          3.3

(1). Taking into account the net change in impairments of current assets and
other non-recurrent items (-EUR0.3 million in 2012- 2013 and -EUR0.8 million in
2011-2012)

Despite the pressure on revenues, the Group significantly improved its gross
margin rate in direct distribution (gain of almost 2 points) thanks to active
management of its product mix.

As a result of the refocusing of the store network, which decreased from 559
sales outlets as at 31 March 2012 to 470 as at 31 March 2013 (including 38
stores sold in November 2012 in Portugal), and cost savings (administration,
logistics, etc.), operating income before goodwill impairment in direct
distribution increased from EUR3.3 million in the 2011-2012 financial year to
EUR4 million in 2012-2013.

Indirect distribution: operating income impacted by pressure on revenues of
telecom operators

(EUR millions)                                    2012-2013    2011-2012

Revenues                                              216.5        231.7
Gross margin(1)                                        28.5         34.2
% of revenues                                         13.2%        14.8%
Operating income                                        2.8          9.3

(1). Taking into account the net change in impairments of current assets and
other non-recurrent items (-EUR0.9 million in 2012- 2013 and +EUR1.8 million in
2011-2012)

The gross margin rate in indirect distribution was negatively impacted by an
unfavourable product mix effect due to the decline in volumes for telecom
operators. That was partly offset by growth in sales of accessories and
connected devices.

The decrease in the gross margin in indirect distribution impacted operating
income, which decreased from EUR9.3 million in the 201 1-2012 financial year to
EUR2.8 million in 2012-2013.

A solid financial position

The Avenir Telecom Group generated cash flow of EUR8.9 million in full-year
2012-2013, enabling it to finance its working capital and investments.

Net financial debt amounted to EUR16.4 million as at 31 March 2013, including
EUR22.6 million of available cash. Net financial debt represented 1.2x Group
EBITDA, compared to an authorised maximum covenant of 2.5x. Net financial debt
also amounted to 25% of shareholders equity, against an authorised maximum
covenant of 100%.

Outlook

In a market for connected devices that is set to reach 500 billion devices on a
global level by 2020, Avenir Telecom will pursue:

       * the development of its ranges of accessories and connected devices,
         relying on its strong capacity for innovation and on a distribution
         network that now covers 37 countries around the world.
         In particular, the Group should be able to leverage the potential of
         the Energizer brand (the world's number 1 in batteries), for which
         the licensing agreement has just been renewed for five years on a
         global basis excluding North America, and the upmarket shift of the
         Beewi brand into innovative products with high technological content
         in the universe of connected devices;
       * the strengthening of its portfolio of value-added mobile phones;
       * the development of new distribution concepts enabling it to offer
         operators integrated outsourcing for the management of their shelf
         space and BtoB commercial websites. This offering is underpinned by
         efficient IT and logistics and the Group's acknowledged expertise in
         the distribution. Avenir Telecom now has many customers in this field
         (Vodafone, Te abla, Mobistar, Orange Suisse, etc.);
       * the optimisation of operators exclusive store networks and management
         of the product mix in its multi-brand store network.

About Avenir Telecom
With revenues of EUR412 million and a gross margin of EUR109 million as at 31
March 2013, the Avenir Telecom Group (ISIN: FR0000066052 / Reuters: AVOM.LN /
Bloomberg: AVT:FP) is one of the leading European distributors of mobile
telephony products and services. The Group partners with the leading handset
manufacturers and telecom operators in Europe, distributing their mobile phones
and subscription plans across all distribution channels (multi-brands and
operators' stores, websites, food superstores, specialist superstores,
independent resellers and affiliated stores). The Avenir Telecom Group also
designs and distributes a comprehensive range of accessories and multimedia
products under licensed and owned brands. As at 31 March 2013, Avenir Telecom
employed almost 2,000 people, mainly in France, the UK, Spain, Romania,
Portugal and Bulgaria.
Avenir Telecom is listed on NYSE EURONEXT - compartment C (Euronext Paris). The
Avenir Telecom share is included in the CAC All Shares, CAC Mid & Small, CAC
Small, CAC All-Tradable, CAC T.Hard & Eq. and CAC Technology indices.

>    Forthcoming publications(1)

Event                                  Date

First quarter 2013-2014 revenues                   22 August 2013
First half 2013-2014 revenues                      14 November 2013
First half 2013-2014 results                       28 November 2013
Third quarter 2013-2014 revenues                   6 February 2014
Full-year 2013-2014 revenues                       14 May 2014
Full-year 2013-2014 results                        19 June 2014

>    Press and investor contacts

Agnès Tixier                          Tel.: +33 (0)4 88 00 63 21
Financial Director                    Fax: +33 (0)4 88 00 60 30
                                      E-mail: atixier@avenir-telecom.fr
Vincent Gouley                        Tel.: +33 (0)1 47 64 78 20
                                      E-mail: vincent.gouley@watchowah.com

                      The press release and presentation
  of the full-year 2012-2013 results can be found at www.avenir-telecom.com

(1) These dates are provided for information purposes and are liable to change
if the Company deems it necessary. Press releases will usually be distributed
after the close of the market.

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29/01/2015 17:49

AVENIR TELECOM (EPA:AVT) Full-year 2012-2013 Results

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