22.03.2018
ecotel communication ag DE0005854343
DGAP-News: ecotel communication ag: ecotel grows in all segments and continues to invest in growth
DGAP-News: ecotel communication ag / Key word(s): Final Results
ecotel communication ag: ecotel grows in all segments and continues to
invest in growth
22.03.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
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* Consolidated revenue grows by EUR 4.0 million to EUR 120.6 million
* B2B transactions increase further from EUR 45.3 million to EUR 47.6
million
* Gross profit increases by EUR 1.5 million to EUR 29.9 million
* EBITDA remains constant at EUR 7.0 million
* Recommended dividend: EUR 0.13 / share
Düsseldorf, 22 March 2018
In 2017 ecotel was again able to increase total revenue to EUR 120.6 million
(previous year: EUR 116.6 million). The high-margin core segment of Business
Customers continued the positive trend of recent years. Several key account
projects were successfully implemented in 2017 and new larger projects were
acquired. While the overall market declined by 1.5 % in 2017, ecotel was
able to increase revenue by 5 % to EUR 47.6 million in the B2B segment. This
growth is especially positive in view of the additional efforts necessary
for the ongoing transformation from traditional ISDN technology to
future-viable All-IP products.
The easybell segment was able to increase revenue slightly in 2017 to EUR
15.2 million. Transactions with NGN voice services for small business
customers (SIP trunk) also developed positively in this segment. With
respect to access products, easybell has nearly completed the upstream
supplier migration from Telefonica Deutschland to other suppliers in the
last two years. Transactions with call-by-call minutes continue to decline
as expected, but this has been cushioned by the introduction of new
products.
The new strategy of the »nacamar« segment caused revenue (EUR 2.0 million)
in this segment to increase in 2017 for the first time. For example, a
contract from public radio was acquired in financial year 2017. Since
mid-2017 nacamar is now the provider for radio streaming of ARD institutions
(including BR, NDR, SWR, WDR).
The development and revenue in the »ecotel Wholesale« segment remain
difficult to plan. With revenue of EUR 55.8 million (previous year: EUR 54.5
million) this segment also grew in 2017.
The group's gross profit once again increased, to EUR 29.9 million (previous
year: EUR 28.4 million). The gross profit margin, especially in the core
segment »Business Customers« remained nearly constant at 47.7 % (previous
year: 47.9 %). In the coming years ecotel is expecting significant positive
overall margin effects from the increasing share of NGN transactions and the
resulting increase in value creation.
With the new, promising IP-based product portfolio ecotel deliberately
continues to exploit additional sales opportunities and market potentials,
even if this has a temporary negative effect on profitability. The increased
order volumes and the new product spectrum require temporary higher expenses
for resources (technology and personnel), as well as system and process
adaptations, that burden EBITDA. As a result, ecotel was able to achieve
EBITDA of EUR 7.0 million (previous year: EUR 7.0 million). That figure
includes expenses totalling EUR 0.1 million from the share in regulation of
damages from manipulated contracts adversely affecting ecotel and other
carriers.
The necessary investments in individual, high-performance customer equipment
results in higher depreciations. In consideration of the financial result
and the taxes on earnings and profits, as well as the deduction of the
minority shares, the resulting consolidated surplus totals EUR 0.5 million
(previous year: EUR 0.8 million), which corresponds to earnings per share of
EUR 0.13 (previous year: EUR 0.24).
The excellent order situation, the positive business development and the
consistently solid balance sheet figures have allowed the Management Board
in coordination with the Supervisory Board to recommend a dividend of 100 %
of the consolidated surplus, or EUR 0.13/share, at the Annual General
Meeting.
In the coming years ecotel will continue to invest in high-performance
customer equipment on a target-oriented and success-related basis, which
will burden the free cash flow. However, these investments in growth will
allow the continued effective expansion of the high-margin local exchange
network and the resulting positive effects on revenue. The latest additions
to ecotel's product selection offer customers everything they need to master
the transition from ISDN to All-UP with the greatest possible success and
efficiency. As part of their multi-carrier strategy, ecotel selects and
manages this product portfolio in a way that is tailored to the customer's
individual needs. The success of this approach is reflected in the number of
new contracts acquired in ecotel's vital Business Solutions segment, where
the company managed to secure yet another significant gain in 2017.
Encouraged by these accomplishments, the Management Board is 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 core 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 ecotel 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 date 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 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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22.03.2018 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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667047 22.03.2018
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