In April reported Ceconomy, a removal of hundreds of Bodies. This was a cost saving measure. Today is Tuesday, the ailing parent company of Media Markt and Saturn opened the quarter books. The group is struggling with declines in sales and earnings. Revenue shrank in the second quarter of the financial year 2018/19 by 2 per cent to 5 billion euros.
it was also in this year’s later Easter business, informed the Media-market-mother Ceconomy on Tuesday. Especially in Switzerland and in southern Europe, business declined. In this country, a Media market was closed branch.
The adjusted operating income (EBITDA) excluding Fnac Darty stagnated at 80 (previous year: 82) million euros. A savings program is to bring improvement. “Ceconomy is in a profound change that will affect the business development”, says the new chief Jörn Werner.
Back in black
the bottom line is Ceconomy wrote a tight profit of 14 million euros after a loss of 109 million euros a year ago. At that time, amortization of Ceconomy held Metro-share had a negative effect on the result.
their forecast for the year, the German group confirmed, and it expects a slight sales growth and a slight decline in operating income to EBITDA and EBIT.
Media Markt/Saturn is now heading towards tough cuts to. Since March, the President of the group’s new chief Werner delivers on the cost brake. Hundreds of Bodies – especially in the Ingolstadt head office of the electronics retail chain – will be eliminated.
as of fiscal year 2020/21 is to be 110 to 130 million euros saved. First of all, the program costs but In the current financial year will be expected to be around 150 to 170 million euros. “With the reorganization, we will operate much faster, more agile and more focused,” had announced the new MediaMarkt/Saturn-in-chief Ferran Reverter.
against the wind by means of Amazon & co.
Ceconomy was launched in the summer of 2017 in the independence, the then, Metro group has been split. “The Best is yet to come – for our customers and shareholders,” had promised then-chief Pieter Haas. But it is bad luck, misfortune and mishaps followed.
Haas took after several profit warnings from his hat. Media Markt and Saturn are in fierce competition with Online retailers like Amazon. Homemade problems negatively impacted the chains – Haas had always initiated new projects, the costs ran out of control.
Werner is now trying the legacy of his predecessor to clean up. “We need to answer (..) the question of how we want to operate in a digitized world and a radically changed environment in the future, our business,” said Werner now. He wanted to drive the “strategic positioning” Ceconomys with high pressure.
In the second quarter, gave it to the first rays of hope – in Germany there were operational improvements, in addition, the Online grew turnover by 13.4 per cent. (SDA)