29.8.2023 14:31:24 CEST | Demant A/S |
Investor Nyheder
Investor news 29. august 2023
Demant vil gradvist afvikle aktiviteter i Gaming og fokusere på kerneforretningen Enterprise Solutions i Communications-segmentet
I dag offentliggør Demant beslutningen om gradvist at afvikle sin Gaming-forretning samt skærpe sit fokus på kerneforretningen for Enterprise Solutions, som fortsat vil markedsføres under EPOS-brandet. Beslutningen er truffet efter en evaluering af Gaming-forretningens fremtidige vækstpotentiale og konkurrencemæssige position og kommer efter en periode med svagere end ventede resultater drevet af svage markedsforhold og af manglende skala og kritisk masse. Fremadrettet vil Demant skærpe sit fokus på Enterprise Solutions, som fortsat har et meget attraktivt langsigtet vækstpotentiale samt synergier med resten af koncernen. Demant etablerede sine headset-aktiviteter som et separat segment med effekt fra begyndelsen af 2020.
“Siden opsplitningen af vores joint venture med Sennheiser-koncernen har vores Gaming-forretning været udfordret af volatile markedsforhold. Efter ekstraordinært høj efterspørgsel drevet af coronaviruspandemien i 2020 er gaming-markedet bremset betydeligt op som følge af svag forbrugertillid, og vi ser ikke en realistisk mulighed for at skabe en profitabel forretning uden betydelige investeringer i produkter, brand og distribution. Vi er selvfølgelig kede af beslutningens indvirkning på de berørte medarbejdere, og vi vil gerne takke alle ansatte, som har arbejdet meget dedikeret på at opbygge Gaming-forretningen under svære omstændigheder,” siger Søren Nielsen, koncernchef og administrerende direktør i Demant.
Afviklingen af Gaming-forretningen vil ske gradvist, og EPOS vil fortsætte med at servicere og supportere kunderne, mens lageret af eksisterende produkter nedbringes. Demant forventer, at denne proces vil være gennemført i løbet af 2024.
I Enterprise Solutions vil EPOS nu arbejde på at cementere sin position i en række specifikke markeder ved yderligere at styrke sin produktportefølje af premium audio- og videoløsninger til virksomheder og ved at udvide distributionspartnerskaber. Vi vil nøje balancere behovet for på kort sigt at forbedre profitabiliteten op imod investeringer i fremtidig vækst. Generelt vurderer vi, at der fortsat er attraktive synergier med vores Hearing Healthcare-segment med hensyn til processering af lyd i støjende omgivelser. Og med skærpet fokus på enterprise-markedet, som stadig er underlagt høje adgangsbarrierer, er vi overbevist om, at vores Communications-segment vil levere attraktive vækstrater og afkast på mellemlang til lang sigt.
Den gradvise afvikling kan resultere i mindre engangsomkostninger i Communications i 2023, hvoraf de fleste ikke vil have likviditetseffekt, men der er ingen ændringer i koncernens finansielle forventninger for indeværende år eller på mellemlang til lang sigt. I H1 2023 tegnede Gaming-forretningen sig for omkring 15% af omsætningen i Communications.
Sammen med tidligere omkostningsbesparende initiativer forventes den gradvise afvikling at føre til en reduktion af de årlige driftsomkostninger i Communications til DKK 450-500 millioner i 2024 som følge af en reduktion i antal ansatte og af reducerede salgs-, marketing- og administrationsomkostninger i Gaming-forretningen. Indledningsvist forventes afviklingen at have en negativ effekt på bruttomarginen, men når den er gennemført, forventes en forbedret bruttomargin. Samlet set vil afviklingen af Gaming-aktiviteterne og det skærpede fokus på Enterprise Solutions bidrage til vores ambition om at levere et mindre negativt EBIT i Communications i 2024 end i 2023, og det vil bidrage til at gøre vejen til profitabilitet kortere.
Yderligere information:
Søren Nielsen, koncernchef og adm. direktør
Telefon +45 3917 7300
www.demant.com
Øvrige kontaktpersoner:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Peter Pudselykke, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communication & Sustainability
Om Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Vedhæftninger
Investor news – Gradvis afvikling af aktiviteter i Gaming.pdf
29.8.2023 14:31:24 CEST | Demant A/S |
Investor News
Investor news 29 August 2023
Demant to gradually wind down activities in Gaming and sharpen focus on core Enterprise Solutions within its Communications segment
Today, Demant announces the decision to gradually wind down its Gaming business and sharpen the focus of its Communications segment on the core business of Enterprise Solutions, which will continue to operate under the EPOS brand. The decision follows a review of the future growth potential and competitiveness of the Gaming business and follows a period of weaker-than-expected results due to weak market conditions and a lack of scale and critical mass. Going forward, Demant will sharpen its focus on its Enterprise Solutions business, which continues to show highly attractive long-term growth potential and synergies with the rest of the Group. Demant established its headset activities as a separate business segment with effect from 2020.
“Since the demerger of our joint venture with the Sennheiser group, our Gaming business has faced a volatile market environment. Following extraordinary demand sparked by the pandemic in 2020, the gaming market has slowed down significantly due to weak consumer sentiment, and we do not see a viable path to creating a profitable business without significant investments in products, brand and distribution. We of course regret the impact our decision will have on affected employees and would like to thank all employees who have worked very hard to build the Gaming business under difficult circumstances,” says Søren Nielsen, President & CEO of Demant.
The wind-down of the Gaming business will be carried out gradually, and EPOS will continue to service and support customers while the inventory of existing products is reduced. Demant expects this process to be completed during 2024.
In Enterprise Solutions, EPOS will focus on solidifying its position in a number of target markets by further strengthening its product portfolio of premium audio and video solutions for enterprises and by expanding distribution partnerships. We will carefully balance the need to improve short-term profitability against investments in future growth. Overall, we continue to see attractive synergies with our Hearing Healthcare segment in terms of processing sounds in noisy environments. And with a sharpened focus on the enterprise market, which continues to enjoy high entry barriers, we are confident that our Communications segment will deliver attractive growth and returns over the medium to long term.
The gradual wind-down may result in minor one-off costs in Communications in 2023, most of which will be non-cash, but there are no changes to the Group’s financial outlook for the year or in the medium to long term. In H1 2023, the Gaming business accounted for around 15% of the revenue generated in Communications.
In combination with previous cost-saving initiatives, we expect the gradual wind-down to lead to a reduction of OPEX in Communications to DKK 450-500 million annually in 2024 due to reductions in the number of employees as well as to reduced sales, marketing and administrative spend in Gaming. Initially, the wind-down is expected to have a negative gross margin impact, but once completed, it will support a gross margin improvement. Altogether, the wind-down of Gaming activities and sharpened focus on Enterprise Solutions will support our drive towards a less negative EBIT in Communications in 2024 compared to 2023, and it will help shorten the path back to profitability.
Further information:
Søren Nielsen, President & CEO
Phone +45 3917 7300
www.demant.com
Other contacts:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Peter Pudselykke, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communication & Sustainability
About Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Attachments
Investor news – Gradual winding down of activities in Gaming.pdf
