COPENHAGEN: Danish high-end stereo and TV maker Bang & Olufsen reported 12 percent growth in third-quarter revenues driven by its cheaper B&O Play unit, sending its shares up around 2 percent.
The group’s revenue rose to 786 million Danish crowns ($112.43 million) from 703 million in the same quarter last year. It was mainly driven by a 53 percent revenue growth in B&O Play compared to the third quarter of 2015/16. It also announced John Mollanger as new chief executive for the B&O Play division.
“We have a great team, but we have been too focused on Denmark. We’re an international business now and there’s a difference between running a business in Asia, the U.S. and Europe,” the group’s CEO Henrik Clausen told Reuters, adding that he hopes Mollanger will bring international experience to the team.
Third-quarter 2016/17 EBITDAC was 63 million crowns against 45 million last year
The group maintained its 2016/2017 outlook for revenues to grow 10-15 percent, driven by 25-30 percent growth in B&O Play and low single-digit growth in its main division.
Third-quarter gross margin increased to 42.6 percent from 38.0 percent last year.
