Ceconomy: launches transformation program, shares soar

(CercleFinance.com) - German retailer Ceconomy is launching a transformation program to reduce costs after the "challenging development" of the past year, the company said on Tuesday.


The plan aims to reduce annual indirect expenses and personnel costs by 110 million to 130 million euros by financial year 2020/21, the owner of the MediaMarktSaturn chain said.

In the current financial year 2018/19, approximately 150 million to 170 million euros will be incurred in costs to implement the program, the group said.

"In the future, we will act much faster, be more agile and more focused and concentrate our activities consistently on the most promising areas" such as digital and services, Ceconomy said.

The Ceconomy share jumped 8.7% to 5.8 euros in Frankfurt on the news.

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