MediaMarkt owner Ceconomy increases profits despite falling sales

Ceconomy, the parent company of electronics retailers MediaMarkt and Saturn, has improved profitability despite weak sales. Its main strength were its online sales, that rose sharply.

‘On the right track’

Ceconomy’s sales fell 1.6 % to 5.2 billion euros in the last quarter. Sales were especially under pressure in the German-speaking region (Austria, Germany, Switzerland). Moreover, January to March are traditionally weaker after the important Christmas period. On the other hand, online sales did rise by 7.4 % to almost 1.3 billion euros, now accounting for a quarter of the total. Profitability also improved strongly: adjusted earnings before interest and taxes (EBIT) doubled to ten million euros.

“For the ninth time in a row, we are growing sustainably and improving our profitability – proof that our strategy is successful and that we are on the right track”, interim CEO Kai-Ulrich Deissner said. He is temporarily leading the company, until it finds a successor for Karsten Wildberger, who recently left the company to become Digital Minister in the new German government.