AVENIR TELECOM (EPA:AVT) First Quarter 2014-2015 revenues

Transparency directive : regulatory news

27/08/2014 18:00

Press release

                        First quarter 2014-2015 revenues

* 13% growth in revenue from new activities
* Good performance in YEZZ mobile handsets and Energizer accessories
* Drop in subscription taking for operators
* Continued restructuring in progress for the Internity store network

Marseilles, 27 August 2014. The Avenir Telecom Group, a key designer and
distributor of accessories and connected devices, reported revenue of EUR50.8
million euros for the first quarter of its financial year 2014 - 2015 (period
from the 1st April 2014 to 30 June 2014).

Revenue from new activities increased 13.2% in the first quarter of 2014 -2015
and as such has partially offset the marked downturn in the sale of low-profit
mobile handsets. These new activities were in particular driven by:

  * the good performance in accessories for mobile telephones under the
    Energizer brand, of which the Group holds an exclusive worldwide licence
    outside of the USA and Canada;

  * the good start in sales of smartphones under US brand YEZZ with which the
    Group has an exclusive contract for Europe, the Middle East, Africa and
    Russia;

  * the increase in the sales of electronic cigarettes under the own brand
    L@clope and of its L@rôme refills made in France in particular in direct
    distribution.

Sales of YEZZ smartphones, accessories, connected devices and electronic
cigarettes represented more than 75% of total product sales in the first quarter
of 2014 - 2015 compared to nearly 46% in the first quarter of 2013 - 2014.
Developing these higher-profit products has made it possible to limit the drop
in the Group's gross margin.

(EUR millions)      First quarter    First quarter        Change %
                      2014 - 2015      2013 - 2014

Direct distribution          30.8             41.0          -24.9%
Indirect distribution        20.0             31.3          -36.1%
Total revenue                50.8             72.3          -29.7%

In direct distribution, the Group continued its refocusing and restructuring
plan for its store base in France and in Spain. As such, the 24.9% drop in
direct distribution revenue in the first quarter of 2014 - 2015 is linked in
part to the restructuring of its store base. From a geographic standpoint,
business remained favourable in Eastern Europe and is still difficult in France
and Spain.

In indirect distribution, the decrease in revenues due to the stoppage of sales
of low-margin mobile handsets and the disposal of the subscription activity for
operators in the United Kingdom in June 2014 was partially offset by the
development of products that contribute more to its gross margin and that are
more promising such as accessories, connected devices and electronic
cigarettes.

Avenir Telecom Group is present in more than 40 countries around the world. It
generated 57.5% of its revenue outside France during the first quarter of
2014-2015.

Financial position

As at 30 June 2014, Avenir Telecom Group's net financial debt amounted to
23.4 million euros, and its available cash (cash flow - bank overdrafts) was
7.0 million euros (unaudited figures).

Outlook

Avenir Telecom Group will continue deploying alternative phones in Europe and in
Africa under the YEZZ brand, developing of its licensed accessories and
connected devices in the United States under its own brand Beewi and outsourced
shelf space and shop management offerings for telecom operators.

About Avenir Telecom

With revenue of EUR285 million as at 31 March 2014, the Avenir Telecom Group
(ISIN: FR0000066052! Reuters: AVOM.LN ! Bloomberg: A VT:FP) is a key player in
the design and distribution of accessories and connected devices and is one of
the main European distributors of mobile telephony products and services.
Avenir Telecom Group in particular distributes smartphones with the YEZZ
licensed brand, a comprehensive range of accessories under the licensed
Energizer brand and designs and distributes connected devices under its own
brand Beewi. Avenir Telecom employs nearly 2,000 people, is present in more
than 40 countries and generates more than half of its sales outside of France.
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.

Upcoming publications(1)

Event Date
First half 2014-2015 revenues         13 November 2014
First half 2014-2015 results          27 November 2014
Third quarter 2014-2015 revenues      05 February 2015
Full-year 2014-2015 revenues               13 May 2015
Full-year 2014-2015 results               18 June 2015

Press and investor contacts

Agnès Tixier                    Tel.: +33 4 88 00 63 21
Financial Director              Fax: +33 4 88 00 60 30
                                E-mail: atixier@avenir-telecom.fr

     All our financial information is available 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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