ecotel communication ag / Key word(s): Interim Report/Interim Report
15.08.2011 / 08:11

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- EBITDA was 67% higher than in previous year figures - Net debt was reduced to 2.0 mill. EUR
- Earnings per share for the first 6 months was 0.15 EUR

Düsseldorf, 15 August 2011 

ecotel maintains its profitability growth path also in the second quarter of 2011. While ecotel's revenues for the first six month were 40.6 mill. EUR and stayed below previous year figures (2010: 48.0 mill. EUR) gross profit improved from 10.7 mill. EUR to 12.2 mill. EUR. This corresponds to a gross margin of 30% (2010: 22%).

The decline in revenue is mainly due to the reduction of interconnection fees towards mobile networks since end of 2010. However, in the B2B segment ecotel was able to raise its profitability via lower procurement cost as well as via its nearly completed transformation process from preselection to full access products. While the migration process of ecotel's customer base towards full access lines is virtually finished ecotel was able to win attractive new customer projects. One example is the new contract with ING-DiBa for the connection of more than 1.200 ATM, which should be visible in the sales and profit figures in the course of this year.
EBITDA for the first six months of 2011 was 3.5 mill. EUR and was 67% above previous year figures (2010: 2.1 mill. EUR). The EBITDA margin was 9%. An extraordinary depreciation of 0.4 mill. EUR put some strain on EBIT of 1.5 mill. EUR, however, EBIT was still 1 mill. EUR above previous year results. Net income for the first six months was 0.6 mill. EUR, which corresponds to earnings per share of 0.15 EUR.

Free Cash Flow in the first six months was EUR 2.9 million (2010: 0.7 mill. EUR). Net debt was reduced in the second quarter of 2011 by another 1.3 mill. EUR to 2.0 mill. EUR. The company's liquid funds and its cash position increased to 6.9 mill. EUR. The equity ratio was raised to 47%.
For 2011 ecotel anticipates revenue of 80-90 mill. EUR. ecotel meanwhile expects to reach the upper range of its EBITDA guidance of 5.5-6.5 mill. EUR.

The 2011 quarterly report can be downloaded from the company's website at www.ecotel.de.


About ecotel communication ag:

Listed in the Prime Standard segment of the Frankfurt Stock Exchange, ecotel communication ag is a telecommunications company with activities in three business sectors throughout Germany.

In the core segment of Business Solutions ecotel provides about 30,000 business customers with an integrated product portfolio consisting of voice, data and mobile communications solutions. This segment combines ecotel's B2B activities and those of ADTG GmbH, which merged with ecotel in 2010.

In the second segment, Wholesale Solutions, the ecotel group markets preliminary products to other telecommunications companies and outside distributors. Modern enabling and switching platforms give them access to the entire ecotel product portfolio, for example unbundled local loop and broadband connections, or mobile communications solutions. At the same time, the company achieves high traffic volumes with this segment, enhancing added value for the core segment of Business Solutions. In addition to the wholesale activities of ecotel. i-cube GmbH and mvneco GmbH are also included in this segment.

The New Business segment covers new, fast-growing business segments and niches of independently operating subsidiaries and holdings. In addition to easybell GmbH, nacamar GmbH, which now focuses exclusively on new media, is part of this independent business unit.

The corporate group, with its main office in Düsseldorf, currently has about 210 employees, including subsidiaries and holdings. ecotel is one of the fastest-growing technological enterprises in Germany and has placed five times among Germany's 50 best companies in the Deloitte competition 'Technology Fast 50'.

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: presse@ecotel.de

Business media
Bernadette Loosen-Flanz (PR)
Phone: 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

End of Corporate News

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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: info@ecotel.de Internet: http://www.ecotel.de ISIN: DE0005854343 WKN: 585434 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart  
 
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