ecotel communication ag / Key word(s): Final Results
31.03.2011 / 07:55

- Revenue of EUR 98.3 million at previous year's level - EBITDA beats estimates at EUR 4.9 million
- Net debt down to EUR 4.6 million
- EBITDA margin now forecast to double by 2013


Fiscal year 2010 turned out well for ecotel communication ag, having been successful in initiating a turnaround. The successful marketing of complete connection products in the core Business Solutions segment has established a new business base, simultaneously laying the groundwork for a sustained increase in profitability.

Group revenue came in at EUR 98.3 million, up 7% year on year after adjustment of the previous year's figure for the deconsolidation of PPRO GmbH. Gross profit rose 3% as a result to EUR 22.9 million.
EBITDA came in at the previous year's level at EUR 4.9 million, substantially ahead of the estimate. The operating result (EBIT) amounted to EUR 1.5 million, after EUR -2.2 million in the previous year. Consolidated net income after minority interests of EUR 0.1 million was recorded for 2010, after EUR -2.2 million in the previous year. This corresponds to earnings per share of EUR 0.02, compared with EUR -0.57 in the previous year.

Net debt was further reduced as planned to only EUR 4.6 million as of December 31, 2010 (previous year: EUR 7.4 million), a decrease of EUR 2.8 million versus the previous year. Cash and cash equivalents declined from EUR 7.1 million at the start of the year to EUR 6.1 million. The equity ratio increased from 37% to 41%.

By the end of 2010, Business Solutions had booked incoming orders for approximately 10,000 complete connection contracts, roughly 6,000 of which were revenue-generating. The transformation process of migrating preselection customers over to complete connection products is thus progressing full steam ahead, contributing to a long-term rise in gross profit for the Business Solutions segment.

For 2011, the Company projects significantly greater profitability for the Business Solutions segment, with EBITDA increasing from EUR 5.5 to EUR 6.5 million on Group revenue of an estimated EUR 90 million. Based on the latest business results, management believes the EBITDA margin could double by 2013 from a current 5%. The 2010 Annual Report is available on the Company website for download at www.ecotel.de.

About ecotel communication ag:

ecotel communication ag, a telecommunications company listed in the Prime Standard segment of the Frankfurt Stock Exchange active throughout Germany,operates three specialized business units.
In its core unit, Business Solutions, ecotel supplies approximately 30,000 business customers with an integrated product portfolio of voice, data, and mobile communication solutions. This business unit combines the activities of ecotel's B2B business and the B2B business of nacamar GmbH, merged into ecotel in 2009.

In its second business unit, Wholesale Solutions, the ecotel Group markets upstream products to other telecommunications companies and outside marketers. Using modern enabling and communication platforms, these companies obtain access to the entire ecotel product portfolio, such as unbundled local loop and broadband connections or mobile communication solutions. At the same time, this business unit achieves high traffic volumes, thus creating added value for the core Business Solutions unit. In addition to ecotel's wholesale business, i-cube GmbH and mvneco GmbH are also part of this business unit.

The New Business unit focuses on new, rapidly growing business areas and niches of the subsidiaries and holdings, which remain operationally independent. nacamar GmbH, which is now exclusively focused on the new media business, is also part of this independent business unit alongside easybell GmbH.

Headquartered in Düsseldorf, Germany, the corporate group currently has 210 employees including subsidiaries and holdings. ecotel is among the fastest-growing technology companies in Germany and has placed among the top 50 German companies in the Deloitte competition 'Technology Fast 50' five years in a row.

Disclaimer:
This publication does not represent an offer to sell or a solicitation to place an order to buy securities or subscribe to securities offerings. This publication is not a securities prospectus. This publication and information contained herein are not intended for direct or indirect forwarding to or circulation in the United States of America, Canada, Australia, or Japan.


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Language: English Company: ecotel communication ag Prinzenallee 11 40549 Düsseldorf Deutschland 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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