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DÜSSELDORF (dpa-AFX) - The electronics retailer Ceconomy has specified its profit forecast thanks to good business in Western and Southern Europe. The operator of the Media Markt and Saturn consumer electronics stores is aiming for more operating profit (adjusted EBIT) for the current 2023/24 financial year than experts have on their notes. In the second quarter of the financial year, the Group posted a profit again after a loss in the same period of the previous year.

Following the surprising publication of the figures, Ceconomy shares gained almost nine percent at their peak. On Monday afternoon, the shares were still trading a good five percent higher. Since the turn of the year, however, Ceconomy shareholders are still left with a drop in value of over 5 percent. Investors with a holding period of three years have seen a development of around 45 percent less.

As the SDax-listed company announced on Monday in Düsseldorf, earnings before interest and taxes (EBIT) adjusted for special effects are expected to increase to between 290 and 310 million euros in the 2023/24 financial year (as of the end of September). The Western and Southern Europe region (Belgium, Italy, Luxembourg, the Netherlands and Spain) in particular is expected to contribute to this growth.

Previously, Ceconomy had only forecast a significant improvement compared to the previous year. In 2022/23, the operating result had risen by around 17 percent to 243 million euros. According to the company, analysts had on average forecast adjusted earnings before interest and taxes of 273 million euros. Adjusted for currency and portfolio effects, the company continues to expect a slight increase in turnover across all segments. In the previous financial year, revenue amounted to a good 22.2 billion euros.

According to Bryan Garnier analyst Clément Genelot, the significant boost in operating profit is likely to come primarily from Spain and Italy. Both markets have developed better than expected. This should also ease the pressure on the German-speaking region - until now, Ceconomy had mainly made money there in its day-to-day business. The development to date has been somewhat disappointing, wrote the expert.

In the second quarter of the financial year, revenue increased by 6.5 percent adjusted for currency and portfolio effects, according to preliminary calculations, as the electronics retailer also announced. As expected, the operating result amounted to five million euros. In the same period last year, Ceconomy had made a loss of 21 million euros. In the first six months, revenues grew by 4.8 percent and the operating profit improved by 43 million to 253 million euros.

The Düsseldorf-based company intends to publish its detailed half-year results as planned on May 15./mne/zb/ngu/niw/he