mobilezone lowers earnings forecast for 2024 – One-off effects and adjustments – Dividend of CHF 0.90 per registered share confirmed – Video conference today at 09.15 a.m.

PRESS RELEASE

Ad hoc announcement pursuant to Art. 53 LR

Rotkreuz, 13 December, 2024

In the second half of 2024, mobilezones results fell short of expectations, particularly in Germany. The company is therefore updating its forecast for the 2024 financial year, expecting sales of CHF 960 to CHF 990 million and EBIT adjusted for one-off effects of CHF 52 to CHF 57 million (previously: at least CHF 68 million). Recurring sales are expected to grow by 5.6% to CHF 143 million. The MVNO customer base at the end of 2024 is expected to be in the region of 370,000; this corresponds to a net increase of around 75,000 or +25% compared to the previous year.

Switzerland
In terms of sales figures in the mobile phone contract and accessories business in the Swiss retail business, mobilezone expects a decline of just under 10% in the contract business and 5% in the accessories business in 2024 compared to the extremely strong previous year. The MVNO, B2B and refurbishing/repair/jusit business areas are all developing positively compared to the previous year, meaning that the EBIT margin is expected to rise to 12.5% overall (previous year: 11.7%). The MVNO customer base at the end of 2024 is expected to be in the region of 180,000; this corresponds to a net increase of around 30,000 or +20% compared to the previous year.

Roger Wassmer, CEO mobilezone Switzerland, says: "The retail business in Switzerland has lost sales volume at our points of sale in 2024. For the current year, we expect reduced personnel and other operating costs of over CHF 4.0 million. We anticipate a recovery in sales volumes in 2025."

Germany
Consumer sentiment in Germany remains pessimistic. Sales figures in the online contract business are expected to increase by over 3% to 600,000. Contribution margins in the online business were under very high pressure in 2024, particularly in the second half of the year, resulting in significantly lower profitability overall in comparison to 2023. The volume of contracts concluded via specialist retail partners is expected to decrease by 1%, albeit with constant contribution margins. Overall, the EBIT margin is expected to decrease from 4.2% to between 3.1% and 3.3%.

As a result of these developments, restructuring measures were decided which will lead to additional expenses of around CHF 2.4 million in the current financial year. The measures underline the consistently pursued strategy of cost efficiency and will strengthen the profitability of mobilezone in Germany and the entire Group in the medium term.

The MVNO customer base (HIGH and simyo) at the end of the year is expected to be around 190,000. This corresponds to a net increase of around 45,000 or +30% compared to the previous year.

Wilke Stroman, CEO Germany, says: "Some of the competitor offers in the online business were so aggressive that positive contribution margins could only be realized by including the annual volume targets with the network operators. Thanks to the measures we have introduced, we expect contribution margins to improve in 2025."

Negative one-off effects will have an additional negative impact on EBIT 2024 totaling CHF 6.0 million.

• CHF 2.4 million: severance payments due to a reorganization in Germany
• CHF 1.1 million: Out-of-court settlement in insolvency proceedings in Germany
• CHF 1.8 million: Settlement of differences with industrial partners in Switzerland
• CHF 0.7 million: Last stock adjustment OPPO (insolvency case in Switzerland from 2023)

The financial result will also be negatively impacted by a book loss of CHF 2.4 million from the sale of the 25% stake in einsAmobile GmbH in November 2024.

Other extraordinary, non-cash effects will lead to adjustments of CHF 17 to 23 million in the 2024 financial year, some of which will be recognized in profit or loss. The effects result from the change in the accounting treatment of capitalized IT platforms in Switzerland and Germany as well as the MVNO HIGH (the figures are estimates and may still change).

• CHF 15 to 20 million: Adjustment of the accounting treatment of capitalized IT platforms in Switzerland and Germany
• CHF 2 to 3 million: Adjustment of the MVNO HIGH balance sheet

Successful 10 years of mobilezone in Germany
mobilezone entered the German market at the end of March 2015 with the acquisition of einsAmobile GmbH. Following further acquisitions of TPHCom GmbH at the beginning of 2018 and Sparhandy GmbH in June 2019, mobilezone combined the business of the three companies in Germany with a focus on online contract brokerage, MVNO and specialist B2B retail. As a result, 75% of the shares in einsAmobile GmbH were sold back to the former shareholders of einsAmobile GmbH in January 2021. This was tantamount to the discontinuation of the wholesale business in Germany with a significant reduction in business risks. The remaining 25 percent of einsAmobile GmbH was sold to the former shareholders at the beginning of November 2024. Over the past ten years, a total of CHF 214 million has been invested in the implementation of the acquisition strategy in Germany, of which CHF 54 million was invested in mobilezone shares at an average price of CHF 9.99 per share. In the same period, mobilezone has achieved a total EBIT of CHF 250 million in Germany.

Dividend and outlook
The Board of Directors confirms the dividend strategy and will propose a dividend of CHF 0.90 per registered share (similar to the previous year) to the Annual General Meeting on 2 April 2025. Markus Bernhard, Executive Delegate of the Board of Directors, remains confident despite the challenging market conditions, particularly in Germany: "The company has a strong, resilient business model and a portfolio that has been highly diversified in recent years. In particular, the continued strong growth in the MVNO sector in Switzerland and Germany, as well as the stable retail business at around 130 locations in Switzerland and the very robust B2B business in both countries, give us confidence for the coming financial years."

In Germany, 2025 will be used as a transition year for the implementation of the structural adjustments. The EBIT target margin of 8% for 2025 for the entire Group will be suspended. The company will now communicate target margins per segment, for the first time with the publication of the 2024 annual figures on 7 March 2025. With a net debt to EBITDA ratio of less than 2 at the end of 2024, the mobilezone Group will remain solidly financed. The 2025 share buyback program will be suspended in line with 2024.

A video conference for investors, analysts and media representatives will take place today, 13 December 2024, at 9:15 a.m. in German. Registration for participation is possible via the following link.

Ad hoc announcement pursuant to Art. 53 LR (PDF)

Contact for analysts, investors and media representatives

About mobilezone
Founded in 1999, mobilezone holding ltd is the leading independent Swiss and German telecoms specialist with a turnover of CHF 1.0 billion and a consolidated net income of CHF 49.5 million in the reporting year 2023. The registered shares of mobilezone holding ltd (MOZN) are traded on the SIX Swiss Exchange Ltd.

The mobilezone Group employs around 1,000 people at its sites in Rotkreuz, Urnäsch, Cologne, Bochum and Münster. It offers a complete range of mobile phones and tariff plans for mobile and landline telephony, digital TV, and internet from all providers. Independent advice and services for private and business customers, repair services and supplying specialist retailers complete the range. The services and products are offered online via various web portals and in over 125 shops in Switzerland.
www.mobilezoneholding.ch