Mobilezone (MOZN) H2 2023 earnings summary

Executive summary

• Net sales rose 1.1% to CHF 1,013.4m as reported, or 3.9% to CHF 1,042m currency-adjusted; organic growth was 2.6%.

• EBIT was CHF 65.7m versus CHF 70.6m; excluding special effects, EBIT was CHF 71.1m versus CHF 73.3m.

• MVNO postpaid subscriptions grew 40% to 295,300, with continued market-share gains in Switzerland and Germany.

Financial highlights

• Gross profit increased to CHF 205.4m from CHF 201.0m; gross margin rose to 20.3% from 20.0%.

• EBITDA was CHF 77.2m versus CHF 79.5m; net income was CHF 49.5m versus CHF 54.5m.

• Operating cash flow was CHF 76.9m versus CHF 79.7m; investments in property, plant and equipment and intangibles were CHF 11.6m versus CHF 12.9m.

• FTE headcount fell to 970 from 995; excluding acquisitions, year-end headcount was 914.

Outlook and guidance

• 2024 EBIT guidance is CHF 68–75m; EBIT margin target is 8.0% by 2025.

• Dividend payout ratio target increased to 60–80% from 60–75%; planned 2024 dividend per share is CHF 0.90.

• Net debt/EBITDA target is below 2 through 2027; capex excluding customer acquisition costs is projected below CHF 10m annually in 2025–2027.

• Customer acquisition costs are projected at CHF 7m in 2024, CHF 8m in 2025, CHF 9m in 2026 and CHF 10m in 2027.