14.08.2018
ecotel communication ag DE0005854343
DGAP-News: ecotel communication ag: ecotel presents half-year figures: B2B segment and easybell grow
DGAP-News: ecotel communication ag / Key word(s): Half Year Results
ecotel communication ag: ecotel presents half-year figures: B2B segment and
easybell grow
14.08.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
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* B2B transactions increase in 1st half-year to EUR 23.8 million (previous
year: EUR 23.3 million)
* easybell grows in 1st half-year to EUR 7.8 million (previous year: EUR
7.6 million)
* Gross profit increases in 1st half-year by 6 % or EUR 0.9 million to EUR
15.4 million
* EBITDA increases in 1st half-year to EUR 3.6 million (previous year: EUR
3.4 million)
* Investments in 1st half-year totalling EUR 3.1 million burden free cash
flow
Düsseldorf, 14 August 2018
ecotel is very satisfied with the business development in the second quarter
and remains on course in the process of transformation from a reseller to a
network operator. The »ecotel Business Solutions« segment continues to grow
and reached EUR 23.8 million in the first half-year 2018 (previous year: EUR
23.3 million). Revenue in the »easybell« (EUR +0.2 million) and »nacamar«
(EUR +0.1 million) segments is likewise developing as planned for 2018. In
the »ecotel Wholesale« segment, which has proven difficult to plan but does
not contribute substantially to the group's profit margin, revenue decreased
to EUR 9.6 million in the first half-year 2018 (previous year: EUR 30.6
million). The group's total revenue therefore declined in the first
half-year to EUR 42.2 million (previous year: EUR 62.3 million).
These tendencies and developments are virtually identical in the quarter
comparison: Revenue in the »ecotel Business Solutions« segment increased in
the second quarter by EUR 0.2 million to EUR 11.9 million. Revenue in the
»easybell« segment increased by EUR 0.2 million to EUR 3.9 million in the
same period. The »nacamar« segment was able to repeat the previous year's
revenue of EUR 0.5 million.
Continued essential driving factors that shape the revenue and gross profit
development in the »ecotel Business Solutions« segment are the successful
implementation of large-scale projects, the transformation from conventional
ISDN-based products to higher-margin All-IP voice products with a broadband
base line, as well as the acquisition of new customers in the area of All-IP
voice products. With its own local exchange network ecotel achieves higher
value creation and therefore higher gross profits. The gross profit margin
in the »ecotel Business Solutions« segment increased in the first half-year
2018 to 48.5 % (previous year: 47.9 %) and in the second quarter 2018 to
48.8 % (previous year: 47.4 %). Currently, about 25 % of all telephone
minutes are generated via the new All-IP voice products, and the tendency is
on the rise.
Gross profit also increased substantially in the »easybell« segment, both in
the half-year (+16 %) and quarter (+25%) comparison (2nd quarter 2018: EUR
1.7 million; 1st half-year 2018: EUR 3.2 million). This is evident in the
growth of the segment of small business customers, who essentially obtain
All-IP services (SIP telephony) via easybell. Due to the modified strategy
in the »nacamar« segment of focussing on the business field of radio
streaming (Internet radio), gross profit in this segment increased to EUR
0.5 million (previous year: EUR 0.4 million).
Consolidated gross profit increased by EUR 0.9 million to EUR 15.4 million
in the first half-year.
Consolidated EBITDA totalled EUR 3.6 million (previous year: EUR 3.4
million) and EUR 1.8 million (previous year: EUR 1.6 million). Personnel
expenses increased in the first half-year by EUR 0.3 million as a result of
the increased number of employees. At the same time, the higher order volume
and the temporary higher expenses for the transformation of ISDN-based
connections to the new ecotel product pallet necessitated higher expenses
since mid-2017 for service and service availability. In comparison with the
first half-year 2017 the expenses in this area therefore increased by EUR
0.2 million. In addition, expenses for maintenance and scheduled repairs in
the computer centre in the first half-year 2018 totalled EUR 0.1 million.
With a balance sheet total of EUR 43.0 million (previous year: EUR 53.1
million) and equity capital of EUR 22.5 million (previous year: EUR 22.7
million) ecotel reports an equity ratio of 52.4% (previous year: 42.9%). The
expected continued high investments in customer equipment, IT developments,
the computer centre and process optimizations totalling EUR 3.1 million in
the first half-year 2018 (previous year: EUR 2.7 million) result in a
negative free cash flow of EUR 0.9 million (previous year: EUR -0.8 million)
and a net financial debt of EUR 0.7 million. The high value creation and the
resulting possibility of achieving high gross profit margins with
future-viable All-IP products together with the opportunities on the market
for acquiring additional large-scale projects leave ecotel no other choice
but to continue planning these investments for the near future.
The Management Board is convinced that ecotel continues on the right path,
and therefore reconfirms the forecast for 2018. For 2018 the Management
Board is therefore predicting consolidated revenue ranging between EUR 90
and 120 million and EBITDA in the realm of EUR 7.0 to 8.0 million with a
slightly increased gross profit margin, resulting in enhanced gross profits
in the »ecotel Business Solutions« segment.
About ecotel communication ag:
The ecotel Group (hereinafter »ecotel«) is a group of companies operating
throughout Germany since 1998 that specialises in the marketing of
information and telecommunications solutions for different target groups.
The parent company is ecotel communication ag with headquarters in
Düsseldorf (hereinafter »ecotel ag«).
Currently the ecotel Group provides more than 50,000 customers nationwide
with about 10,000 data connections and more than 80,000 voice connections.
The company's core segment is represented by »ecotel Business Solutions«. In
this segment ecotel offers business customers nationwide an integrated
product portfolio consisting of voice and data services (IT/telecom
solutions). The focus is on enterprises with more than 50 employees.
The »ecotel Wholesale« segment comprises the services for other
telecommunications companies, including network interconnections with more
than 100 national and international carriers.
The »easybell« segment includes all transactions of the easybell group,
which consists of four companies. The easybell segment markets broadband
Internet access and VoIP telephony for private customers, as well as SIP
trunking services for smaller enterprises.
In the »nacamar« segment nacamar GmbH offers streaming services for media
enterprises on the basis of its own Content Delivery Network (CDN). With
AddRadio, nacamar is the market leader in Germany.
The corporate group, with its main office in Düsseldorf, has about 270
employees, including subsidiaries and holdings.
Note:
This publication is not an offer for the sale nor an invitation for the
purchase or subscription of securities. This publication is not a securities
brochure. This publication and the information contained therein are not
intended for direct or indirect dissemination to or within the United States
of America, Canada, Australia or Japan.
PR office:
Business and Financial Media
Annette Drescher (Assistant to the Managing Director)
Phone: 0211-55 007-740
Fax: 0211-55 007 5 740
E-mail: [email protected]
Business media
Bernadette Loosen-Flanz (PR)
Phone: 0211-55 007-316
Fax: 0211-55 007 5 316
E-mail: [email protected]
For further information please visit us on the web at www.ecotel.de
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14.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: ecotel communication ag
Prinzenallee 11
40549 Düsseldorf
Germany
Phone: +49 (0)211 55 00 70
Fax: +49 (0)211 55 00 7 222
E-mail: [email protected]
Internet: http://www.ecotel.de
ISIN: DE0005854343
WKN: 585434
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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