April 7, 2017 / 11:23 AM / 4 months ago

UPDATE 1-Bang & Olufsen Q3 profit growth driven by cheaper B&O Play range

2 Min Read

(Adds CEO comments, detail)

April 7 (Reuters) - Danish high-end stereo and TV maker Bang & Olufsen reported 12 percent growth in third-quarter revenues driven by its cheaper B&O Play unit, sending its shares up around 2 percent.

* The group's revenue rose to 786 million Danish crowns ($112.43 million) from 703 million in the same quarter last year.

* It was mainly driven by a 53 percent revenue growth in B&O Play compared to the third quarter of 2015/16.

* It also announced John Mollanger as new chief executive for the B&O Play division.

* "We have a great team, but we have been too focused on Denmark. We're an international business now and there's a difference between running a business in Asia, the U.S. and Europe," the group's CEO Henrik Clausen told Reuters, adding that he hopes Mollanger will bring international experience to the team.

* Third-quarter 2016/17 EBITDAC was 63 million crowns against 45 million last year

* The group maintained its 2016/2017 outlook for revenues to grow 10-15 percent, driven by 25-30 percent growth in B&O Play and low single-digit growth in its main division.

* Third-quarter gross margin increased to 42.6 percent from 38.0 percent last year. Source text for Eikon: Further company coverage: ($1 = 6.9913 Danish crowns) (Reporting by Julie Astrid Thomsen and Gdynia Newsroom)

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