•  B2B transactions increase to EUR 35.9 million (previous year: EUR 35.2 million)
•  easybell grows to EUR 11.9 million (previous year: EUR 11.4 million)
•  Gross profit increases by 7 % to EUR 23.4 million
•  EBITDA increases to EUR 5.6 million (previous year: EUR 5.2 million)
•  Investments totalling EUR 4.5 million burden free cash flow

Düsseldorf, 13 November 2018
ecotel is very satisfied with the business development in the first nine months of the year 2018 and especially in the third quarter, and remains on course in the process of transformation from a reseller to a network operator. The »ecotel Business Customers« segment increased in the third quarter 2018 by EUR 12.1 million (previous year: EUR 12.0 million) to EUR 35.9 million (previous year: EUR 35.2 million). In addition, revenue in the »easybell« segment increased both in the quarter comparison (+ EUR 0.3 million) and in comparison with the first nine months of the previous year (+ EUR 0.5 million) to EUR 11.9 million (previous year: EUR 11.4 million). As expected, revenue in the »nacamar« segment remained at the previous year's level, with EUR 0.4 million in the third quarter and EUR 1.4 million for the first nine months. In the »ecotel Wholesale« segment, which has proven difficult to plan but does not contribute substantially to the group's profit margin, revenue totalled EUR 27.3 million (previous year: EUR 47.7 million). The group's total revenue therefore decreased to EUR 76.4 million (previous year: EUR 95.6 million).

The »ecotel Business Customers« segment is increasingly benefiting from the positive effects of the transformation from conventional ISDN-based products to higher-margin all-IP voice products. The share of these products in the revenue is continuously rising and already constitutes about 10 % of the segment revenue as of the end of the third quarter 2018. Of all telephone minutes of ecotel customers, about 30 % are now generated via the new All-IP voice products. As a result of deeper value creation, it is possible to achieve higher gross profit here than with conventional ISDN-based products. The »ecotel Business Customers« segment therefore reports a gross profit margin of 48.8 % (previous year: 45.8 %) for the third quarter and 48.7 % (previous year: 47.2 %) for the first nine months of 2018.

Gross profit also increased substantially in the »easybell« segment, both in the quarter comparison (+ EUR 0.2 million) and in the reporting period (+ EUR 0.7 million) (3rd quarter 2018: EUR 1.7 million; 9 months 2018: EUR 5.0 million). This growth is due especially to the marketing of SIP trunking products for smaller business customers.

In the »nacamar« segment the focus on the business field of radio streaming (Internet radio) has increasingly resulted in a positive business development, which is already evident in an initial increase in gross profit to EUR 0.7 million (previous year: EUR 0.6 million).

Consolidated gross profit increased in the third quarter to EUR 8.0 million (previous year: EUR 7.3 million) and in the first nine months of 2018 by EUR 1.5 million to EUR 23.4 million. Consolidated EBITDA in the same period totalled EUR 5.6 million (previous year: EUR 5.2 million) and in the third quarter EUR 2.0 million (previous year: EUR 1.8 million). As a result, ecotel can report earnings per share of EUR 0.11 (previous year: EUR 0.10) for the first nine months of the year 2018.

The continued high investments totalling EUR 4.5 million (previous year: EUR 4.1 million) in high-performance customer-specific equipment, process optimisations and IT developments, as well as the expansion of the computer centre result in a negative free cash flow of minus EUR 0.8 million (previous year: minus EUR 0.4 million) for the first nine months of 2018. In the third quarter, on the other hand, the free cash flow totalled EUR 0.1 million (previous year: EUR 0.4 million). Based on a resolution of the Annual General Meeting, the payment of a cash dividend to the shareholders totalling EUR 0.5 million (previous year: EUR 0.8 million) also took place during this period. The net financial debt increased slightly to EUR 1.1 million.

The Management Board is convinced that ecotel is continuing on the right path, and adjusts the previous forecast. For financial year 2018, the group expects consolidated revenue of about EUR 100 million and EBITDA between EUR 7.0 and 8.0 million.


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 the ecotel Group 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 data 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 national and 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: 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