• Consolidated revenue grows by EUR 10.3 million to EUR 116.6 million
• B2B transactions increase from EUR 42.9 million to EUR 45.2 million
• Free cash flow: EUR 2.4 million - Net financial assets: EUR 3.5 million
• Dividends: EUR 0.23 / share (previous year: EUR 0.23 / share)

Düsseldorf, 23 March 2017
ecotel continues to grow. In financial year 2016 the group once again increased its revenue, from EUR 10.3 million to EUR 116.6 million. Particularly in the profitable core segment Business Customers (B2B), ecotel continues on a steady course of growth. After EUR 42.9 million in 2015 the company achieved revenue in the B2B segment of EUR 45.2 million, with an increasing shift in the revenue mix toward future-viable access variants (xDSL, Ethernet, optical fibre access and VPNs), and from ISDN to modern IP-based voice products.

Revenue in the New Business segment decreased slightly to EUR 16.9 million (previous year: EUR 17.6 million). While revenue in Private Customer Solutions (B2C) of the easybell group remained stable, revenue in new media solutions continued to decline. The change in strategy and management implemented at nacamar in 2016 has already proven successful in the form of attractive new orders. In Wholesale Solutions, unexpectedly high revenue was achieved in 2016, with an increase of EUR 8.7 million to EUR 54.5 million.

Consolidated gross profit increased in 2016 by EUR 0.6 million to EUR 28.4 million. With a gross profit margin of more than 48%, this was achieved essentially by an increase of EUR 0.9 million to EUR 21.8 million in the Business Customers (B2B) segment. Gross profit in the New Business segment decreased slightly to EUR 6.3 million (previous year: EUR 6.5 million).

While EBITDA increased in the previous year due to one-time revenue from a successfully concluded legal dispute with an upstream supplier totalling EUR 1.1 million, expenses for management organisations burdened EBITDA by EUR 0.4 million in the concluded financial year. The overall EBITDA decreased in financial year 2016 from EUR 7.9 million to EUR 7.0 million.

EBITDA in the core segment Business Customers (B2B) decreased by EUR 1.2 million to EUR 4.0 million. Taking into account the aforementioned one-time effect from the previous year, there remains a reduction in the EBITDA from business operations of EUR 0.1 million. The delta is primarily the result of additional investments in personnel, process adaptations and system developments, so that the currently increasing All-IP migration processes, in addition to the increase in order acquisitions, can be managed to the satisfaction of the customers. These measures will lead to effects that will impact revenue in financial year 2017 as well.

Despite the decrease in EBITDA in 2016, it was possible to achieve a free cash flow of EUR 2.4 million, and to increase the net financial assets to EUR 3.5 million. The equity ratio increased from 44 % to 54 %. In view of the continuously improving key figures and the excellent business development and order situation, the Management Board and Supervisory Board have decided to recommend a dividend of EUR 0.23 / share to the shareholders at the Annual General Meeting.

Due to the successful introduction of the new products and the continued increase in order acquisitions, ecotel is in a position to successfully respond to the fast-changing challenges of the telecommunications market today. As a result of the special developments and growth opportunities, the Management Board expects consolidated turnover in 2017 of EUR 95 million to EUR 115 million, with EBITDA of EUR 6.5 million to EUR 7.5 million and a continued stable gross profit margin and therefore increasing gross profit in the core segment Business Customers.


About ecotel communication ag:

The ecotel Group (hereinafter »ecotel«) is a telecommunications company operating throughout Germany since 1998 that 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 business 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 services offered to 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 representation 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 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: 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 further information please visit us on the web at www.ecotel.de