Let's GOWEX (LGWXY)

[mediscience]

GOWEX 2013 net profit: €28.9 million, an increase of 70%
29/04/2014

Solid year results on growth and profitability. Two big partnerships signed between We2 and two leader operators. Pipeline business for 2014: almost 2 times higher than in 2013

Madrid, 29 April 2014-. GOWEX (GOW-MAB, ALGOW-NYSE Alternext, LGWXY-OTC Market), a leading company in the creation of Wireless Smart Cities® announces today the publication of the consolidated results for 2013, with an generalized increase in each and every financial indicator and exceeding the income expectations, paying off the investments made in new technologies, business areas and services.

GOWEX CEO, Jenaro García, highlighted the positive result of these figures and pointed out that “during 2013 GOWEX strengthened its model and created a global need around its product. The growth of our recurring revenue, the projects we gain along the way and our solid leading position enables us to sustain more and more our goal of achieving 600 Wireless Smart Cities® before 2018?.

Let´s GOWEX S.A. (M€)


31.12.2013


31.12.2012


Variation

2013 /2012

Revenue Results


182,6


114,3


+60%

Gross Margin

% over the total Revenue


94,3

51,6%


55,6

48,6%


+70%

Employee costs


4,3


2,8


+56%

Other operating costs


40,9


26,9


+52%

EBITDA


53,0


30,8


+72%

% over the total Revenue


28,4%


26,9%


Depreciations


0,9


-2,3


(61%)

Depreciation Expenses


13,3


6,8


+96%

EBIT

% over the total Revenue


38,8

21,0%


21,8

19,1%


+78%

Financial results


0,6


0,4


ns

Result before tax


39,4


22,2


+78%

Taxes


10,6


5,2


+104%

Result after taxes

% over the total Revenue


28,9

15,8%


17,0

14,9%


+70%



Revenue’s expectations have been over passed, 69% is recurrent

After €182, 6 million of sales, GOWEX reaches higher revenue than expected. In 2013, the Company signed two agreements with ZTE (China), AT&T (USA), PCCW (Hong-Kong), Atlanteam (France), deploying the biggest network in New York and, finally, launching a revolutionary service: We2 Social WiFi.

The international sales have progressed due to GOWEX renown, reaching a sales’ total of 67% in 2013, versus 51% at the end of 2012. Almost all the Group’s growth was organic, except for the petty part regarding Ideup’s acquisition for the Mobile department.

The margin progress faster than the revenue

In 2013, the management indicators have progressed faster than activity under the gross margin growth (+70%), improving the equipment costs and the good management of the expenses.

In this way, the EBITDA reaches €53, 0 million, which corresponds to 29, 0% on the total revenue, compared to the 26, 9% in 2012. The application of results (Ebit) was established at €38, 8 million (21% of the total revenue), growing a 78%, even with the amortization expenses, following the network’s powerful growth during the 2S 2013.

The corporation taxes, €10, 6 million, have doubled over the financial period. At the end, the net profit was established at €28, 9 million, a 15, and 8% of the total revenue.

€ 30, 5 million of net liquid assets at the end of 2013, after important investments

Fixed assets increased from € 17.1 million to € 54.7 million during the year. Thus, GOWEX reached at the end of 2013, € 95.2 million in equity and cash position, and net cash of € 30.5 million.

For the next stockholders’ meeting, the Administration Board will propose the payment of a dividend equivalent to 2012’s. That is a minimum of 0,013 euro per stock.

Doubling goals for 2018: 600 Wireless Smart Cities®

In December 2013, We2 Social WiFi was launch, offering retailers, companies and final users a social experience to share their private network. We2 will accelerate GOWEX’s network growth with two partnerships with leader operators that have been signed and several negotiations are ongoing.

Meanwhile, GOWEX Wireless network growth will be concentrated in areas of Latin America, United States and emerging markets by strengthening its presence especially through its policy of co-investment.

Strong ambitions and an advanced business pipeline define GOWEX’s goals in achieving 600 Wireless Smart Cities® in the world for 2018.

- See more at: http://www.gowex.com/en/gowex-2013-net-profit-e28-9-million-an-increase-of-70-2/#sthash.ylCdXMH4.dpuf