B&O Shares Down 73% $30K TV On Show For 1 Day
Bang & Olufsen PR Company Ovato has taken exception to our story that claimed that the Danish Companies shares have fallen 50%, they said that this was “an unsubstantiated claim”.
According to Bloomberg the shares have actually fallen 73.5% as of Friday and that during the past 52 weeks the Company has seen their shares fall from a high of $155 to a low of $36.86
The Company also claimed that they have launched the $30K Beovision Harmony TV in Australia after we indicated that that the launch of B&O TVs have been put on hold in Australia.
At the Companies Westfield Bondi Store that services the affluent Sydney Eastern Suburbs management said that they only had the new Beovision Harmony TV in store for “one day for an event” and that they no “longer had the Beovision Harmony in store”.
The Companies Chadstone store in Victoria did not answer the phone and a search of the Beovision Harmony link that Ovato sent to ChannelNews sent me to a retailer in Canada when I entered the 2088 postcode for Mosman in NSW.
The TV is available for pre order sight unseen with the $30K TV shipped from the Companies Danish head office for delivery in December according to the Companies Bondi store.
The PR Company also claims that Ole Andersen the CEO of Bang & Olufsen is claiming that they do not have a “for sale” sign up”. This is despite the Company meeting with potential investors and Companies who expressed an interest in taking control of the struggling Company.
In July Denmark’s leading business newspaper indicated that B&O were struggling and that the future looked grim for the Danish Company.
A Danish executive of a leading premium sound Company told ChannelNews “B&O is in dire trouble. “They may well go the same way as Loewe, who now have gone bankrupt twice in 6 years” they said.
Earlier this year when B&O shares had only fallen 36% the financial services Company wrote “The 94-year-old maker of hi-fi systems prized by design aficionados has been tripped up by the pace of change in consumer electronics as TVs and CD players quickly become outmoded. The problem compounds issues Bang & Olufsen has faced in recent years as consumers increasingly listen to music on portable devices and headphones rather than big living-room speakers”
They said that Bang & Olufsen have overestimated how swiftly it would be able to change its distribution network and didn’t expect a drop in TV revenue, he said.
The Company has abandoned the three-year sales targets that was lowered four months ago. The company also halted its share-buyback program to conserve cash.
In 2018 the Company did launch the Beosound Edge, which was announced at IFA 2018 the speaker is being listed in Australia at $5,350.