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

Transparency directive : regulatory news

13/11/2014 17:56

Press release

                           First half 2014-2015 revenues

* Percentage of new activities in products sold: 83%
* 5.7% growth in revenue from new activities
* Continued restructuring of the store base in France and Spain

Marseille, 13 November 2014. The Avenir Telecom Group, a key designer and
distributor of accessories and connected devices, reported revenue of EUR 93.1
million for the first half of its financial year 2014-2015 (period from 1 April
2014 to 30 September 2014). This revenue does not take into account direct
activity in Portugal and indirect distribution in the UK.

In June this year, the Group sold 11 stores operated on behalf of the operator
TMN in Portugal to a partner distributor, bringing an end to its direct
distribution business in Portugal, and also sold its indirect operator activity
in the United Kingdom on behalf of the operator O2. These disposals are part of
the Group's strategy of refocusing its activities on the sale of licensed and
own-brand mobile and multimedia accessories and the distribution of alternative
smartphones under the YEZZ brand. The consolidated revenue of the Avenir
Telecom Group, on a like-for-like basis, stood at 93.1 million euros for the
half year compared to 131.4 million euros in the previous year.

Revenue from new activities increased by 5.7% in the first half 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 the US brand YEZZ with which the
  Group has an exclusive contract for Europe, the Middle East, Africa and
  Russia;

* the addition of well-known new customers with a strong distribution capability
  in the countries they are established.

Sales of YEZZ smartphones, accessories, connected devices and electronic
cigarettes represented more than 83% of total product sales in the first half of
2014-2015 compared to nearly 53% in the first half of 2013-2014. Developing
these higher-profit products has made it possible to limit the drop in the
Group's gross margin.

The Group's products are distributed in over 40 countries around the world. The
Avenir Telecom Group generated 55,9% of its revenues outside France in the first
half of 2014- 2015, in steady progress.

(in millions of euros)            First half      First half      Var. %
                                  2014-2015(1)    2013-2014(1)

Direct distribution                  65,4             81,1      -19,4%
Indirect distribution                27,7             50,3      -44,9%
Total revenue                        93,1            131,4      -29,1%

(1).   outside direct distribution in Portugal and indirect activity in the UK
sold out on the period

Direct distribution: Continued refocusing of the store base

Excluding the negative structure effect associated with the sale of the 11
stores in Portugal, revenues from direct distribution decreased by 19.4% on the
semester. This activity was impacted by strong pressure on sales in France and
Spain associated with the decline in volumes on behalf of telecom operators and
the restructuring plan for its store base in both of these countries.

The situation in East European countries in which the Group is present has
improved with a 2,8% growth in revenue.

The sale of new products increased by 7,3% over the half year due in particular
to the distribution of alternative phones under the YEZZ brand in stores, which
were met with great enthusiasm by consumers.

Indirect distribution: Strong growth in revenue (+5,6%) and in volumes with new
product ranges

Indirect distribution activity declined by 44.9% excluding the negative
structure effect of the disposal of the indirect business in the United Kingdom,
which took place in mid June 2014. The Group continued to reduce its sale
volumes of low-profit mobile handsets in the first half of 2014-2015 and records
the cessation of the subscriptions sold on behalf of operators.

As with the first quarter, the volumes sold of licensed and own-brand mobile and
multimedia accessories, as well as of mobile phones under the YEZZ brand show a
growth of 11,5%.

Avenir Telecom is pursuing its proactive strategy of distributing alternative
mobile phones and accessories with high added value

In a connected devices market that is expected to total 500 billion devices on a
global level in 2020 compared to five billion today, Avenir Telecom will pursue
the development of its ranges of accessories and connected devices by relying on
its strong capacity for innovation and its global distribution network. The
Group should benefit in particular from the potential offered by the Energizer
brand for the design, manufacture and distribution of products that meet
consumer expectations, and from the upmarket shift of the BeeWi brand into
innovative products with high technological content in the world of connected
devices, with the recent worldwide launch of the new Smarthome product range.

In the alternative Smartphones market, the Group is benefiting from its
exclusive contract to distribute smartphones under US brand YEZZ in Europe, the
Middle East, Africa and Russia.

Avenir Telecom shall announce its half-year results on 27 November 2014 after
the close of the market.

About Avenir Telecom

With revenues of 285 million euros as at 31 March 2014, the Avenir Telecom Group
(ISIN: FR0000066052 / Reuters: AVOM.LN / Bloomberg: AVT:FP) is a key player in
the design and distribution of accessories and connected devices and is one of
the leading 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.

> Second quarter revenues (from 1 July to 30 September 2014)

(in millions of euros)      Second quarter     Second quarter    Var. %
                              2014-2015(1)       2013-2014(1)

Direct distribution                   35,0               40,8     -14,3%
Indirect distribution                 11,4               25,3     -55,0%
Total revenue                         46,4               66,1     -29,8%

(1). outside direct distribution in Portugal and indirect activity in the UK
sold out on the period

> Upcoming publications(2)

Event                                        Date

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
                   http://corporate.avenir-telecom.com

(2) 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.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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AVENIR TELECOM (EPA:AVT) First Half 2014-2015 revenues

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