ecotel presents Q2 figures: positive business development confirms realignment

Q2 consolidated revenue grows by € 5.4 million to € 29.2 million / Increase in Q2 B2B revenue (+ € 0.7 million) and gross profit (+ € 0.4 million) / Q2 EBITDA with special effects: € 1.6 million (previous year: € 1.8 million) / Net financial assets increa

Düsseldorf, (PresseBox) - In the second quarter 2016 ecotel was able to continue sustainable growth, especially in the profitable core segment of Business Customers (B2B). Consolidated revenue increased by € 5.4 million to € 29.2 million. In addition to increased revenue of € 5.0 million in the Wholesale Solutions segment, ecotel’s high-margin Business Customers (B2B) segment also improved significantly by € 0.7 million to € 11.2 million. In the New Business segment, revenue decreased slightly by € 0.2 million to € 4.2 million. In the first half year 2016 the consolidated revenue increased altogether by € 9.5 million to € 59.2 million.

Consolidated gross profit in the second quarter 2016 increased from € 6.8 million to € 7.1 million. This was achieved essentially by Business Solutions (B2B) with an increase of € 0.4 million or 8 % to € 5.4 million. Gross profit in the New Business segment remained constant at € 1.7 million (previous year: € 1.7 million) despite the lower revenue. Altogether, ecotel earned gross profit of € 14.2 million in the first half year 2016 (previous year: € 13.8 million). Of this amount, 76.8 % is attributed to the Business Customers segment.

Consolidated EBITDA in the second quarter 2016 was marked by planned one-time effects for ensuring the target growth course in the Business Customers (B2B) segment and consequently decreased to € 1.6 million (previous year: € 1.8 million). This included one-time marketing and sales costs, recruitment costs and additional investments for optimisation of processes and systems. In the first half year 2016 ecotel achieved EBITDA of € 3.5 million (previous year: € 4.5 million) and therefore remains on course. Overall, ecotel earned consolidated profit totalling € 0.4 million (previous year: € 1.1 million), which resulted in earnings per share of € 0.13 (previous year: € 0.31). The one-time revenue of € 1.3 million from the previous year must be taken into account in the comparison with the previous year.

Free cash flow in the second quarter 2016 totalled € 2.0 million (Q2 2015: € 1.2 million). In the first half year 2016 ecotel was therefore able to achieve a free cash flow of € 1.0 million, so that the net financial assets increased from € 2.6 million at the end of 2015 to € 3.0 million.

Equity increased by € 0.7 million to € 22.4 million (previous year: € 21.7 million). Despite the higher balance sheet total of € 45.0 million (previous year: € 42.6 million), ecotel was able to maintain a stable equity ratio of 49.8 %.

ecotel is very satisfied with the first half year 2016. Profitable and sustainable growth in the Business Customers segment shows that ecotel is still on the right path. Meanwhile ecotel has introduced a new NGN product portfolio for the impending change from ISDN to ALL IP technology. This makes ecotel one of the first companies in the industry to be able to provide B2B customers with IP-based voice services via all access types.

The slightly declining EBITDA in the second quarter 2016 corresponds to expectations. The company confirms the forecast published in the 2015 consolidated annual report and continues to expect revenue of € 95 – 105 million and EBITDA in the corridor of € 7.0 – 8.5 million for the current financial year 2016.

Note:

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Ecotel Communication AG

The ecotel Group (hereinafter »ecotel«) is a telecommunications company operating throughout Germany since 1998 that specialises in meeting the information and telecommunication (IT/telecom) requirements of customers. The parent company is ecotel communication ag. The shares are traded in the Prime Standard segment of the Frankfurt Stock Exchange. ecotel markets products and services in the following business segments: »Business Solutions (B2B)«, »Wholesale Solutions«, »Private Customer Solutions (B2C)« and »new media solutions«.

ecotel's core segment is represented by »Business Solutions (B2B)«. Here ecotel offers 18,000 small and medium-sized enterprises, as well as large-scale customers throughout Germany, an integrated product portfolio of voice and data services (IT/telecom solutions) from a single source.

In »Wholesale Solutions« ecotel integrates the services offered to other telecommunications companies. In addition, ecotel is active in cross-network trading of telephone minutes (Wholesale) for national and international carriers; for this purpose, ecotel maintains network interconnections with approximately 100 international carriers.

The »Private Customer Solutions (B2C)« of ecotel include the services of the easybell Group. The Berlin- based subsidiary markets high-quality yet low-priced Internet and telephone services. For this purpose easybell provides rate-adaptable ADSL2+ and VDSL services nationwide. easybell is also one of the market leaders in the provision of classic call-by-call and Internet-by-call access.

With its »new media solutions« nacamar GmbH offers streaming services for media enterprises on the basis of its own Content Delivery Network (CDN), which is hosted in the ecotel computer centre. The company also markets customised solutions for content management systems, online representation and technical developments (apps) for access by end devices (smartphones, tablet PC and smart TVs).

The corporate group, with its main office in Düsseldorf, currently has about 240 employees, including subsidiaries and holdings.

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