You are here

B&O to pump up the volume on cheaper speakers to drive growth

fa-bno-20171004.jpg
Bang & Olufsen is targeting its more affordable B&O Play products and brand partnerships to drive growth as the Danish company moves away from its mainstay high-end stereo and TVs.

[COPENHAGEN] Bang & Olufsen is targeting its more affordable B&O Play products and brand partnerships to drive growth as the Danish company moves away from its mainstay high-end stereo and TVs.

Headphones and speakers from B&O Play along with partnerships such as those with luxury car producer Bentley and mobile maker LG, would drive growth in the future, Bang & Olufsen said on Wednesday.

"Brand partnership will become a bigger part of our business over time," Bang & Olufsen's chief executive Henrik Clausen told Reuters, adding that it was "looking at new options" to form partnerships in the car industry and other fields.

Bang & Olufsen lost 55 million Danish crowns (S$11.83 million) after tax in the first quarter due to difficulties at its more expensive division of high-end stereos and televisions and said it saw no change to that in the coming quarters.

For a TV from the classic Bang & Olufsen line, the top price is more than US$28,000 and speakers can cost nearly US$16,000, while products from B&O Play cost from US$190 to around US$2,700.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

The company maintained its expectations for the financial year of flat earning in the Bang & Olufsen division and a more-than 20 per cent growth in its more affordable B&O Play range.

"Although we note volatility is high in B&O on a quarterly basis, we see the gross margins... as the main positive in the report, indicating we should expect stronger gross margins in B&O Play in he coming years," Nordea analyst Jesper Ilsoe said.

Shares in Bang & Olufsen were up 3 per cent to 137 Danish crowns at 1059 GMT after reporting results which were in line with analyst expectations.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes