ecotel communication ag / Quarter Results

14.05.2010 08:18

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

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- First successful sales of full access products
- Further reduction of net debt

Düsseldorf, May 14, 2010 
Revenues in the first quarter were EUR 23.1 million (LY: EUR 24.1 million) and stayed EUR 0.4 million above the previous year figures adjusted for the deconsolidation of PPRO GmbH. The revenue increase is mainly due to new revenues of the subsidiary easybell in the New Business segment. Revenues in the B2B segment were declining, which can be mainly attributed to the loss of traditional preselect revenues. Meanwhile, sales of the new full access products have started and have already led to a sizable order backlog for this new product line.

EBITDA in the first quarter was EUR 0.9 million and stayed EUR 0.3 million below previous year figures. EBIT in the first quarter was EUR 0.1 million and was EUR 0.2 million lower than in the previous year. Net income was EUR -0.1 million, which corresponds to earnings per share of EUR -0.03.
The liquid funds of the company decreased slightly from EUR 7.1 to EUR 7.0 million. ecotel generated a free cash flow of EUR 1.0 million and was thus able to reduce its net debt to EUR 6.6 million (LY: EUR 12.8 million).
The focus of ecotel in 2010 is on the migration of its customer base towards full access lines of alternative carriers (e.g. Vodafone, Versatel) and on the sale of full access lines to new customers. The combination of these new full access products with data and mobile products enables ecotel to offer its customers 'carefree' flatrate product bundles, which cover the essential communication needs of businesses. These product bundles are being sold as vertical solutions for various industries.
For 2010 ecotel expects revenues of EUR 80 - 90 million, which is on par with 2008 figures adjusted for the deconsolidated PPRO. EBITDA is expected to reach EUR 4 - 4.5 million and to stay below previous year level.
For 2011 ecotel anticipates a successful migration to full access products and rising revenues from convergence products. Therefore the board expects revenues of EUR 90 - 95 million and EBITDA of EUR 5.5 - 6.5 million.
The 2009 financial report can be downloaded from the company's website at www.ecotel.de.


About ecotel communication ag:

ecotel communication ag is a publicly listed telecommunications company which operates in Germany and focuses on three business divisions.
In its core division 'Business Customers' the company offers an integrated product portfolio of voice, data and mobile services to appr. 30.000 business customers within Germany. This business segment comprises the B2B activities of ecotel, all of ADTG GmbH as well the B2B activities of nacamar GmbH, which has been merged into ecotel in 2009.
In its second division 'Wholesale Customers' the company provides carrier and wholesale services to other telecoms operators and to non-industry distributors. ecotel deploys state of the art enabling and switching platforms in order to provide its product portfolio (unbundled local loops, broadband access lines, mobile services) to other resellers. At the same time the company achieves economics of scale and broadens its value chain for its own core business 'business customers'. This business segment comprises the wholesale activities of ecotel as well as all of i-cube GmbH and mvneco GmbH.

The division 'New Business' contains ecotel's fast growing subsidiaries and new ventures. Apart from easybell GmbH, this division also comprises the New Media business of nacamar GmbH.

ecotel is headquartered in Düsseldorf and has at present appr. 190 employees.

Please note:
 
This publication does not constitute an offer for the sale of shares in the company or a solicitation of an offer for the purchase of shares in the company. Furthermore this publication shall not constitute a securities prospectus. This document must not be distributed outside of Germany, in particular not in the United States of America, Canada, Australia or Japan.

Press contact:

ecotel communication ag

Wirtschafts- und Finanzmedien
Annette Drescher (Assistentin des Vorstandes)
Tel.: 0211-55 007-740
Fax: 0211-55 007 5 740
Email: presse@ecotel.de

Fachmedien
Bernadette Loosen-Flanz (PR)
Tel.: 0211-55 007-316
Fax: 0211-55 007 5 316
Email: presse@ecotel.de

Further information: www.ecotel.de.




14.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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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, München, Düsseldorf, Stuttgart  
End of News DGAP News-Service  

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