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B&O - First quarter 2019/2020 - Results

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Millemissen
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Millemissen Posted: Thu, Oct 3 2019 10:35 AM

Not the best read, but as expected.

Looking forward to the new products coming:

https://www.bang-olufsen.com/~/mediaV3/files/press-releases/bang-olufsen/quarter-reports/bang-olufsen-pressrelease-q1-3-10.pdf

MM

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Mikipidia
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Mikipidia replied on Thu, Oct 3 2019 10:45 AM
They need to get their act together

New: Beolab 50's, Beolab 18's, Beolab 17's, Beovision eclipse, Beosound 9000 mk3, Beosound 1 Bronze edition, Beoplay M3.

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kuyttendaele
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Very curious to see if the Harmony & Stage can improve the sales numbers within the next 6months..

Also hope that they reduce the numbers of headsets/headphones as this has been a major loss-maker the last year.

.. fingers crossed that B&O can survive the next years and become a “100y old” company.

Karel.
Duels
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Duels replied on Thu, Oct 3 2019 11:29 AM
This is poor after the constant disappointing numbers last year.

A 30% drop in revenue attributed to a shift to a more demand driven sales model. What ever that really means it doesn’t seem to be working.

Last February significant new products were promised which would impact sales in the fourth quarter. They didn’t materialise and revenue was down. Now they are promised for the second quarter of this financial year.

When the 2018/19 full year results were announced we were told to expect single digit revenue growth for the coming year. This will be exceptionally difficult after a 30% drop in Q1.

B&O are going to have to sell an awful lot of sound bars to overcome this.

Millemissen
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From the:

https://vod.eventcdn.net/bo/Webcast_presentation_Q1_2019.pdf

Wonder what that could be?


There is a tv - and there is a BV.

Mikipidia
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New things that are even more software dependant, which makes me nervousIndifferent

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Sandyb
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Sandyb replied on Thu, Oct 3 2019 3:03 PM

I think we all know where this is headed now.

Duels
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Duels replied on Thu, Oct 3 2019 5:48 PM
Sandyb:

I think we all know where this is headed now.

Oh yes.
Millemissen
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Sandyb:

I think we all know where this is headed now.

Yes - but not the way you think!

The results for that quarter were awaited and announced in the latest general meeting.......are you really surpriced?

MM

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SHEFFIELD
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Hi Duels, all I can say is now we are entering the busy period...the next 6 months will be crucial - pleased I’m out of it🙂

mm08642
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mm08642 replied on Thu, Oct 3 2019 8:44 PM

Mikipidia:
New things that are even more software dependant, which makes me nervous

Unfortunately, the financial development is no surprise. A company with such bad IT strategy, changing its software platform strategy three times within 10 years and never managed to finalise a full working product before discontinuing it, e.g.

  • Beosound 5 (MOTS - Microsoft Windows - Spotify support)
  • Beosound Moment (MoodWheel - Android based - Deezer support)
  • Beosound Core (no - Linux based? - only Deezer and limited Spotify support)
  • … what will be next …?
naturally ends up loosing trust, customers and in the end profit. Companies with such bad leadership team / management will be taken out of the market. That is capitalism (= „Creative destruction“ see Schumpeter). At the end the companies with the better ideas, strategy and products will survive.  Unfortunately I do not see, that it will be Bang & Olufsen.

 

seethroughyou
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Sandyb:

I think we all know where this is headed now.

For the less financially minded, where is this going? Are we close to B&O collapsing or someone buying it out or massive downsizing? What are the other options?
Sandyb
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Sandyb replied on Thu, Oct 3 2019 8:50 PM

That makes the results any the better?

The company needs saving, from themselves.

But as I've said before, its far from obvious why a sensible well matched partner will come in and buy them.

 

Sandyb
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Sandyb replied on Thu, Oct 3 2019 9:02 PM

Death by a thousand cuts, I think is the best description.

The financial metrics, when it comes to balance sheet strength, liquidity, leverage etc look actually ok.

But the trajectory with respect to sales and profits is poor, and the product offering looks less convincing, even to its more traditional core customer, than it used to be.

So no, not imminent collapse, and a good trade partner looks odds against. The market value of the company has been small change for very large players for quite a while now, so the sound of silence speaks volumes to me, Admittedly that could change, though I wouldn't bet on it. Its too niche a brand for Apple etc anyway.

Will they disappear in 10 years time? I suspect probably not, as there is always someone out there who might inject some money. But unless its someone who can add value beyond the $, that just prolongs the agony. And the sales outlook might bottom out in the next 12-18 months, but that just prompts more retrenchment by the company, as resources for investment are squeezed further.

Once you take the emotion out of it, the analysis is not that difficult.

Especially when the odds on a global economic slowdown in the next 12-24 months are higher than they have been for a good few years.

If the pipeline of new products accelerates, and they're exciting, then all good - but the evidence of the last few years is not encouraging on that front.

 

Sandyb
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Sandyb replied on Thu, Oct 3 2019 9:05 PM

Exactly right.

I prey that Apple buy them, and come to their rescue, but that's wishful thinking on my part! 

 

mm08642:

Mikipidia:
New things that are even more software dependant, which makes me nervous

Unfortunately, the financial development is no surprise. A company with such bad IT strategy, changing its software platform strategy three times within 10 years and never managed to finalise a full working product before discontinuing it, e.g.

  • Beosound 5 (MOTS - Microsoft Windows - Spotify support)
  • Beosound Moment (MoodWheel - Android based - Deezer support)
  • Beosound Core (no - Linux based? - only Deezer and limited Spotify support)
  • … what will be next …?

naturally ends up loosing trust, customers and in the end profit. Companies with such bad leadership team / management will be taken out of the market. That is capitalism (= „Creative destruction“ see Schumpeter). At the end the companies with the better ideas, strategy and products will survive.  Unfortunately I do not see, that it will be Bang & Olufsen.

 

 

 

BeoFrederic
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Acquisition by Apple will not happen.  It gives me no joy to say so. 

https://forum.beoworld.org/forums/thread/287982.aspx 

BeoFrederic
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Here’s something that is possible, though an admitted long-shot: B&O could hire Jonny Ives’ new design firm to provide a coherent, distinctive, future-focused design language and portfolio.

Sandyb
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Sandyb replied on Thu, Oct 3 2019 11:08 PM
BeoFrederic:

Acquisition by Apple will not happen. It gives me no joy to say so.

https://forum.beoworld.org/forums/thread/287982.aspx

I know - as I’ve said many times before.
Puncher
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Puncher replied on Thu, Oct 3 2019 11:15 PM

BeoFrederic:

Here’s something that is possible, though an admitted long-shot: B&O could hire Jonny Ives’ new design firm to provide a coherent, distinctive, future-focused design language and portfolio.

I think Johnny Ives' currency has been spent!

Ban boring signatures!

kuyttendaele
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BeoFrederic:

Here’s something that is possible, though an admitted long-shot: B&O could hire Jonny Ives’ new design firm to provide a coherent, distinctive, future-focused design language and portfolio.

B&O cannot afford Lord Ives.

Karel.

 

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IngvarW replied on Fri, Oct 4 2019 10:13 AM

The canceled support/integration of Spotify in BS5/BM5 was very disappointing. I hoped some other streaming service should have shown up but no. Today I have Music via Horizon instead. 

Current; BV Horizon 48,  2*BL3, BL11, Beolit 12, Beolit 15, Beoplay P6, Beoplay A9, Beoplay H9i

Earlier; BV 10-46, 2*BL3, BM5/BS5, BS9000, BL8000, BV7-32, MX7000, Beoport, Beocord 8000, MX4002, BL2000, Beocom1, Beotalk1200

Jaffrey2230
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Unfortunately, they might get to profitability, but it will be hard to get to revenue growth. There is certainly a lot of opportunities to streamline their offerings:

1. Headphones that compete directly with Bose in price and range. B&O = Bose with better design, build and sound quality

2. BeoPlay line that is directly aimed at a more premium level of Sonos (soundbar seems a good move). In the US they should have a section in Best Buy where the headphones and BeoPlay lines are displayed in a Store inside a store model - similar to what Bose and Sonos do...

3. Kill the BeoSound line just add them to BeoPlay and make BeoPlay the upscale-Sonos line.

4. Premium audio line - BeoLab (Subwoofer, Beolab 18, BeoLab 17 and Beolab 50). The BeoLab 18 needs to be $4,999 for a pair, BeoLab 17 for $2,999 a  pair the BeoLab 19 should be $1,999 and the Beolab 50 should be $19,999. Compete with B&W and Dynaudio.

5. Makes no sense for B&O  to be in the TV business

6. makes no sense to invest in B&O proprietary interfaces and connections.

Their prices are too high currently relative to what they offer compared to alternatives. My 2 cents worth....

 

 

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Jaffrey2230
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2 x Beolab 8002 + 1 x Beolab 2 [Office]

2 x Beolab 6002 [Bedroom]

1 x Beoplay A9 Mk2 [Living Room]

1 x Beoplay P6 [Anywhere]

 

vikinger
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vikinger replied on Sat, Oct 5 2019 11:47 PM

Most TV and Audio now  seems to be too software dependent. No one is going to spend big money on something that can be made redundant by the software or by a streaming method. Look at the BBC. They stopped mp3 streaming and made a lot of hardware redundant (for BBC broadcasts). Now they've just switched to BBC 'Sounds' and say they can't afford to support older Apple platforms or related systems. B&O have little chance in keeping pace with the changes unless they produce upgradeable plug in modules so that buyers can protect their purchases from becoming out of date prematurely. Exceptional quality universal speakers is their last hope.

Graham

HH1971
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HH1971 replied on Sun, Oct 6 2019 9:19 AM

mm08642:
At the end the companies with the better ideas, strategy and products will survive.

Bang & Olufsen still did not manage to get from the analog to the digital century.

Look at the B&O app, look at the outdated stores concept, look for a multichannel distribution concept, look at the internet presence without social community or technical content, look at the helpless / low educated online customer service, look at the not perfect working products, look at the very slow speed things are changing.

Additionally Bang & Olufsen lost its former technology leadership perception in multiroom integration (to Sonos, Apple AP2, Google CC), intuitive operating concepts for TV (not anymore controlled by B&O) music (to Apple, Sonos, Bose, Roon - the B&O app is bad copy of the Deezer app and all additional features follow the goal to be maximum complex and confusing) and active loudspeaker concept (to Sonos, Bose, Bluesound, Apple, etc.). 

So the only left unique selling point is the design of loudspeakers ?!?
In my eyes this is not enough to survive. Hopefully I am wrong!

Sandyb
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Sandyb replied on Sun, Oct 6 2019 10:30 AM
HH1971:

Bang & Olufsen still did not manage to get from the analog to the digital century.

Look at the B&O app, look at the outdated stores concept, look for a multichannel distribution concept, look at the internet presence without social community or technical content, look at the helpless / low educated online customer service, look at the not perfect working products, look at the very slow speed things are changing.

Additionally Bang & Olufsen lost its former technology leadership perception in multiroom integration (to Sonos, Apple AP2, Google CC), intuitive operating concepts for TV (not anymore controlled by B&O) music (to Apple, Sonos, Bose, Roon - the B&O app is bad copy of the Deezer app and all additional features follow the goal to be maximum complex and confusing) and active loudspeaker concept (to Sonos, Bose, Bluesound, Apple, etc.).

So the only left unique selling point is the design of loudspeakers ?!? In my eyes this is not enough to survive. Hopefully I am wrong!

Exactly correct.

Those were the obvious advantages. Now they are far less obvious, and largely confined to their speaker design.

So yes, it’s death by a thousand cuts from now on
Duels
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Duels replied on Mon, Oct 7 2019 6:57 PM
SHEFFIELD:

Hi Duels, all I can say is now we are entering the busy period...the next 6 months will be crucial - pleased I’m out of it🙂

Hi there @Sheffield. Hope the (semi) retirement is going well. I’m sure you are pleased to be out of it. But I do miss not having you and the chaps down there on Eccy Road.
Ferdinand
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B&O has fired CEO

Frederic
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https://www.bloomberg.com/news/articles/2019-10-08/bang-olufsen-names-new-ceo-after-reporting-yet-another-loss?srnd=premium-europe

 

 

Millemissen
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Here is the official document from B&O:

https://ml-eu.globenewswire.com/Resource/Download/0324b90f-54b4-4d18-98e5-cb9fcaa2d826

 

MM

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Millemissen
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Ferdinand:
B&O has fired CEO

The danish national tv wrote about it in the news.

However, they added:

Opdatering: Det har tidligere fremgået af indledningen i denne artikel, at Henrik Clausen blev fyret. Det er ændret til “udskiftet”, da en fyring ikke er bekræftet.

Which means the changed ‘sacked’ to ‘replaced’.

Whatwver happened, I see this more as a sign for the investors to calm down - if it will change anything is the question....

....in many things happened on the financial front the chairman Ole Andersen is the ‘architect’. 

As the head of th board he is the one, who sets the course!

But of course it will be interesting to hear, what the new CEO has in mind for (the future of) B&O

MM

There is a tv - and there is a BV.

Duels
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Duels replied on Tue, Oct 8 2019 8:46 AM
I’m not surprised after so many missed targets and disappointing results announcements in such a short time.

The new guy’s background seems appropriate (but they always do when they are appointed).

As with all new CEO’s he has one “free” chance to reset the company in the eyes of the investor community. I hope he does it quickly and effectively. I look forward to the new strategy being announced.

Despite what it says in the announcement I suspect the outlook for the year will be adjusted downwards at some point in the near future. The new guy would be very brave (or possibly foolish) to go forward with forecasts from the previous regime which they themselves never hit.

9 LEE
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9 LEE replied on Tue, Oct 8 2019 9:38 AM

Share prices hit a 52-week low yesterday...  

In my humble opinion the slide of the brand (and ensuing confusion) will take a huge amount of investment to drag itself out of. B&O as a company simply doesn't have the cash to do this, so it's either scale back drastically - or find a buyer with deep pockets and a belief in the brand.

Personally I don't think there's huge value in the name any more as it's gradually gone 'off radar' for most AV buyers - even long-standing customers, but the people (and the patents) do have value. Bang & Olufsen employs some gifted people who could be utilised well within other organisations - or within B&O as a 'Halo Brand' for a big manufacturer.

As for a new CEO, I feel the old one has been put to the sword to satisfy the market and shareholders. The new CEO, with limited cash as well as a dwindling market (globally, for many premium brands - not just B&O) will face the same challenges as the old one. Unless he has great ideas and lots of cash to back him up, they'll just stay great ideas and the company will keep sliding.

Nervous times for B&O. Will they pull through it? Big brands, old names, and companies with a long history no longer seem truly 'valued' in today's market place - so it's not a given.  As ever, though, I wish them well.

Lee

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moxxey replied on Tue, Oct 8 2019 10:06 AM

Millemissen:

But of course it will be interesting to hear, what the new CEO has in mind for (the future of) B&O

In my experience of a new CEO taking charge of a new company is that they do not have any plan or 'has in mind for the future' of the brand. They get a call, get an offer and it all happens within a short space of time.

I think it's mostly doomed now. Smacks a little of desperation to try and please outside investors. Certain people on here are way too patient and calm.

vikinger
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vikinger replied on Tue, Oct 8 2019 10:30 AM

New CEO on a downward spiral???

“he was Global Chief Operating Officer for BlackBerry with headquarters in Canada. Prior to that, he held management positions at Sony Ericsson, respectively, as Executive Vice President with global responsibility for sales and marketing and as regional President at Ericsson“

Graham

 

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Puncher replied on Tue, Oct 8 2019 10:58 AM

vikinger:

New CEO on a downward spiral???

“he was Global Chief Operating Officer for BlackBerry with headquarters in Canada. Prior to that, he held management positions at Sony Ericsson, respectively, as Executive Vice President with global responsibility for sales and marketing and as regional President at Ericsson“

Graham

 

Maybe he will be much better at f***ing it up!

Ban boring signatures!

vikinger
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vikinger replied on Tue, Oct 8 2019 11:23 AM

moxxey:
I think it's mostly doomed now. Smacks a little of desperation to try and please outside investors. Certain people on here are way too patient and calm.

Puncher:

Maybe he will be much better at f***ing it up!

I'm afraid that my personal experience of CEO's is that they bring along a personal advisor from a management consultancy, (who will provide the ***-up defence when the board finally get fed up with the poor decisions). Typically, stays for 2 years and then moves on with a generous pay off to another similar post.

Graham

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Peter Pan replied on Tue, Oct 8 2019 12:13 PM


Kristian Tear. Source: Bang & Olufsen

Bang & Olufsen A/S enlisted a former BlackBerry Ltd. manager to try to revive the
fading Danish electronics maker after consumers abandoned its sleek living room
hi-fi systems in favor of listening to music on the go.

Kristian Tear, 55, will take over as chief executive officer from Henrik Clausen, who
presided over three profit warnings in less than a year. The stock rose as much as
9.5% in Copenhagen on Tuesday but it dropped more than 70% over the previous
12 months, eroding the company’s market value to $225 million.

9 LEE
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I thought that was the UK actor John Barrowman for a moment Laughing


moxxey
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moxxey replied on Tue, Oct 8 2019 2:35 PM

9 LEE:

I thought that was the UK actor John Barrowman for a moment Laughing

Who lives in Palm Springs with his learned American accent.

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