DGAP-News: ecotel communication ag: Q3/2015: B2B segment

DGAP-News: ecotel communication ag / Key word(s): 9-month figures/9-month figures ecotel communication ag: Q3/2015: B2B segment and easybell experience sustainable growth 13.11.2015 / 07:45 --------------------------------------------------------------------- - Q3/2015: Revenue in B2B core business increases by 4% to EUR 10.8 million - Q3/2015: Gross Profit increased by 7% to EUR 6.9 million - 9M/2015: Net Income EUR 1.3 million or EUR 0.36 / share (eps) - 9M/2015: Free Cash Flow EUR 4.3 million or EUR 1.23 / share Düsseldorf, 13 November 2015 ecotel communication ag, a German telecommunications company with operations throughout the country and headquarters in Düsseldorf, was able to grow revenue in the high-margin segments during the third quarter 2015. In the core segment Business Solutions (B2B) quarterly revenue increased by 4 % to EUR 10.8 million (previous year: EUR 10.3 million). The New Business segment - which comprises Private Customer Solutions under the easybell brand and new media solutions under the nacamar brand - also achieved a 4 % increase in revenue to EUR 4.4 million (previous year: EUR 4.2 million). Due to the decline of revenue to EUR 9.2 million (previous year: EUR 11.9 million) in the low-margin and difficult-to-plan Wholesale Solutions segment, the consolidated turnover decreased in the third quarter by EUR 2.0 million to EUR 24.4 million. Consolidated gross profit increased to EUR 6.9 million (previous year: EUR 6.5 million). This growth was due to positive developments in the Business Customers (B2B) segment with EUR 0.2 million and an unchanged gross profit margin of 48 %, and in the New Business segment with EUR 0.3 million and a gross profit margin of 39 % (previous year: 34 %). EBITDA in the third quarter remained stable at EUR 1.8 million (previous year: EUR 1.8 million). Consolidated turnover of EUR 74.0 million (previous year: EUR 76.5 million) was achieved within the first nine months of the financial year 2015. Gross profit increased by EUR 1.4 million to EUR 20.7 million and EBITDA increased by EUR 1.0 million to EUR 6.3 million. The group's free cash flow also improved by EUR 3.0 million to EUR 4.3 million compared to the same period of the previous year; this corresponds to a free cash flow per share of EUR 1.23. The consolidated net income increased to EUR 1.3 million with earnings per share of EUR 0.36. In addition, ecotel was able to transform the net debt of EUR 1.5 million as of 31 December 2014 into net assets of EUR 1.6 million by the end of the third quarter. This is an improvement of EUR 3.1 million. Despite the first-time payment of a cash dividend of EUR 0.6 million (EUR 0.16 per share) the equity increased as of 30 September 2015 to EUR 21.5 million (previous year: EUR 20.2 million). The equity ratio grew to 52.2 % (previous year: 45.2 %). "The third quarter again shows that we are on a positive path. Our efforts in the B2B segment are now also evident in terms of revenue," explains Peter Zils, CEO and founder of ecotel. "We were also able to continue the positive order acquisition development of the first half year 2015. Now it is a matter of implementing the orders in a timely fashion to the satisfaction of our customers. The results on revenue and profit - especially from the key account projects CURANUM and HOCHTIEF - should become apparent after successful implementation in the course of the year 2016. We are likewise pleased with the development in Private Customer Solutions (B2C), where we were able to continue the planned growth course with the easybell brand, whose importance for the group is growing steadily." As a result of the change in technology being pushed by the Deutsche Telekom and the impending migration from ISDN to All-IP access, ecotel has meanwhile started the marketing of managed voice and data services on the basis of the new technology. The completion of the new platform, and therefore the start-up of the local exchange operations, is planned for the first quarter 2016. Substantial investments in this respect were already carried out by ecotel in 2014. In the future, ecotel will additionally pursue the strategy of developing new markets for Cloud, Security and IP-Centrex services. The company confirms the forecast published in the 2014 Annual Report and continues to expect EBITDA of EUR 7.5 - 8.5 million for the current business year 2015, with revenue of EUR 90 - 100 million. The quarterly report and a presentation of key figures ("Time series") are available for download on the company's website at www.ir.ecotel.de. About ecotel communication ag: The ecotel Group (hereinafter »ecotel«) is a telecommunications company that has been active throughout Germany since 1998 and 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 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 offerings for 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 representations 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. 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) Tel.: 0211-55 007-740 Fax: 0211-55 007 5 740 E-mail: presse@ecotel.de Business media Bernadette Loosen-Flanz (PR) Tel.: 0211-55 007-316 Fax: 0211-55 007 5 316 E-mail: presse@ecotel.de For more information, please visit us on the web at www.ecotel.de --------------------------------------------------------------------- 13.11.2015 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: 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: info@ecotel.de Internet: http://www.ecotel.de ISIN: DE0005854343 WKN: 585434 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------- 412635 13.11.2015