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Ceconomy Q1 Earnings Decline; Affirms FY18 Outlook - Quick Facts

German consumer electronics retailer Ceconomy AG (MTAGF.PK,MTTRY.PK) reported Friday that its first-quarter earnings per share declined to 0.33 euro from 0.37 euro last year.

Earnings before interest and tax or EBIT decreased to 258 million euros from last year's 308 million euros. EBIT margin declined to 3.7 percent from 4.5 percent a year ago.

EBITDA decreased to 315 million euros from prior year's 366 million euros.

However, total sales for the quarter grew 0.6 percent to 6.94 billion euros from 6.89 billion euros a year ago.

Sales adjusted for currency effects and portfolio changes rose 1.3 percent from the year-ago period to around 6.9 billion euros.

The two brands - MediaMarkt and Saturn - increased their online sales by around 22 per cent year on year.

"On the other hand, December sales in the period around Christmas and December earnings were not as strong as expected. Now we need to make sure we make up the shortfall in earnings," said Pieter Haas, CEO of Ceconomy.

In the four months from October 2017 to January 2018, Ceconomy generated an increase of 1.6 per cent in sales adjusted for the previous year's VAT campaign. Currency-adjusted sales increased by 0.5 percent.

Looking ahead to fiscal 2018, the company affirmed that it expects, both in terms of EBITDA and EBIT, an increase at least in the mid-single-digit percentage range, not taking into account the earnings contributions from the investment in Fnac Darty S.A.
The Western & Southern Europe region in particular will contribute to this.

Ceconomy also said it expects a slight year-on-year increase in total sales for the financial year 2017/18.

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