CECONOMY AG Financial Update: Profitability Gains Amidst Revenue Challenges

DÜSSELDORF — Ceconomy AG, the parent company of MediaMarkt and Saturn, has reported mixed financial results for the second quarter of 2025. Despite facing a challenging consumer environment, particularly in German-speaking regions, the company has managed to improve its profitability.

Revenue Decline

Ceconomy experienced a decline in revenue during the second quarter, with sales particularly affected in its core markets. This downturn is attributed to a difficult consumption climate, which has impacted consumer spending on electronics.

Profitability Improvements

Despite the revenue challenges, Ceconomy has successfully enhanced its operational profitability. The company’s adjusted EBIT (Earnings Before Interest and Taxes) doubled to 10 million euros in the second quarter, reflecting a significant improvement in its financial performance. This increase in profitability is a positive sign for the company, indicating effective cost management and operational efficiency.

Market Position and Online Growth

In a positive development, Ceconomy has increased its market share and boosted its online presence. The online segment now accounts for 27% of its total sales, highlighting the company’s successful shift towards digital channels. This growth in online sales is crucial as consumer preferences continue to evolve towards e-commerce.

Leadership Changes

In recent developments, Kai-Ulrich Deissner has been appointed as the interim CEO of Ceconomy. This leadership change comes at a critical time as the company navigates through its current financial challenges and strategic adjustments.

Financial Outlook

While Ceconomy reported a net loss of 38 million euros for the second quarter, compared to a profit of 84 million euros in the same period last year, the company has confirmed its full-year outlook. The adjusted EBIT increase suggests that Ceconomy is on track to meet its financial targets for the year.

Market Reaction

The company’s stock, traded on the Xetra exchange, closed at 3.27 EUR on May 13, 2025. The market capitalization stands at 1.52 billion EUR, with a price-to-earnings ratio of 20.95. Investors are closely monitoring Ceconomy’s ability to sustain its profitability improvements and adapt to the evolving retail landscape.

In summary, while Ceconomy faces revenue headwinds, its focus on enhancing profitability and expanding its online footprint positions it well to address current market challenges. The company’s strategic initiatives and leadership changes will be key factors in its ongoing performance.