(Adds CFO, analyst, share price)
May 9 Pandora reported
forecast-beating first-quarter core profit, but growth in its
key U.S. and UK markets disappointed, prompting a 6 percent
share price fall.
* Q1 revenue 5,159 million Danish Krone ($757.06
million)compared with 5,086 million seen in Reuters poll (Q1
2016 4,740 million DKK).
* Q1 EBITDA 1,879 million DKK versus 1,779 million seen in
Reuters poll (Q1 2016 1,760 million DKK).
* Asia Pacific markets grew 40 percent in local currencies,
driven by 18 percent growth in Australia and more than doubled
growth in China, while newer markets such as France and Italy
grew 15 and 23 percent, respectively.
* However growth in the United States, Pandora's biggest
market, and the UK were muted due to challenging retail
environments, with a decline of 7 percent and growth of just 2
* "We saw a decline in the first quarter in the number of
people going to the shops in general of 9 percent, and it
impacts everyone doing retail business in the U.S.," CFO Peter
Vekslund told Reuters.
* "We have actually seen this through all of 2016 and there
is no reason to think that things will completely change when we
come to the second quarter," he said when asked whether he saw
the trend continuing.
* Shares in Pandora were down 6 percent at 0833 GMT, having
initially jumped 5 percent in early trade.
* "Nothing in the report confirms whether this is a
temporary decline in overall retail sales and for Pandora in the
U.S. or if it's a longer decline," said Sydbank analyst Soren
* "The focus on the U.S. and the UK is what makes the stock
fall," Lontoft added.
* The firm repeated its 2017 outlook for revenue of DKK
23-24 billion and EBITDA margin of approximately 38 percent
Source text for Eikon:
Further company coverage:
($1 = 6.8145 Danish crowns)
(Reporting by Stine Jacobsen and Julie Astrid Thomsen, editing
by Louise Heavens)