October 8, 2018 / 10:57 PM / a year ago

Electronics retailer Ceconomy says fiscal year earnings below targets

FRANKFURT (Reuters) - Ceconomy, Europe’s biggest consumer electronics retailer, said operating profit for the 2017-18 fiscal year came in below its targets, citing weak business at its MediaMarkt and Saturn store chains.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) in the year to Sept. 30 totaled 630 million euros ($724.0 million), down from an adjusted figure of 714 million euros for the previous year, it said in an unscheduled release of preliminary figures.

That missed a target range of 680 million-710 million euros in EBITDA for the year, issued just last month.

Earnings before interest and tax (EBIT) for the 12 months through September declined to 400 million euros from 494 million a year earlier, missing a previous target range of 460 million-490 million euros.

“This deviation is attributable to significantly lower than expected operating earnings contributions at MediaMarktSaturn Retail Group at the end of the financial year 2017-18,” the group said late on Monday in a brief statement.

Ceconomy last month cut its profit goals for the 2017-18 financial year, citing poor trading as an unusually hot summer put people off buying TVs and other gadgets.

The retailer is due to publish full financial results on Dec. 19 and a trading statement on Oct. 25.

Reporting by Ludwig Burger; Editing by Cynthia Osterman

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