DGAP-News: telegate AG / Key word(s): Quarter Results First quarter of 2016: telegate achieves significant cost reduction 11.05.2016 / 08:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- München / Planegg, 11 May 2016 - telegate AG today announced that it managed to reduce its selling and distribution costs by 27 percent to EUR 4.7 million in the first quarter of 2016 (Q1 2015: EUR 6.4 million) by restructuring its sales organisation. Cost of revenues were also trimmed by 8 percent to EUR 6.5 million (Q1 2015: EUR 7.1 million). In the period from January to March 2016, the company generated revenue of EUR 11.8 million (Q1 2015: EUR 14 million). The digital business accounted for EUR 7.6 million or 65% (Q1 2015: EUR 8.4 million) and the 11880 directory assistance service for EUR 4.1 million (2015: EUR 5.6 million) of total revenue. The product portfolio in the digital business was expanded considerably, thus creating the foundation for stronger revenue growth over the next years. Despite an increase in capital expenditures, EBITDA in the reporting period amounted to EUR -0.2 million (Q1 2015: EUR -1.8 million). "In the past nine months, we have created a new telegate AG in which the link between the Directory Assistance and Digital segments has become much stronger. Five of the 20 vertical portals planned for this year have gone online since February. With these specialist portals, we create an online marketplace that delivers clear benefits for both small businesses and consumers," says telegate CEO Christian Maar. "We are headed in the right direction but there is still plenty of work to do. Our goal is to deliver a unique package for businesses in Germany, which gets them in touch with customers easily and cost-efficiently." The transformation of the company is already showing initial successes: Introducing more flexible terms has resulted in a decline in the termination rate. At the same time, the number of new customers increased on account of the expanded product portfolio. Following a change in strategy in the directory assistance business, telegate managed to acquire its first major customer for telephone services; negotiations with other companies concerning collaboration are currently underway. The full report of telegate AG on the first quarter of 2016 is available at: http://www.telegate.com/investor-relations/english/reports.html Contact: Anja Meyer telegate AG Tel.: 089/ 8954-1188 Fax: 089/ 8954-1189 E-Mail: [email protected] --------------------------------------------------------------------------- 11.05.2016 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. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: telegate AG Fraunhofer Str. 12a 82152 Planegg-Martinsried Germany Phone: +49 089 - 89 54 0 Fax: +49 089 - 89 54 10 10 E-mail: [email protected] Internet: www.telegate.com ISIN: DE0005118806 WKN: 511880 Indices: Prime All Share Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 462311 11.05.2016