DGAP-News: ecotel communication ag / Key word(s): Quarter Results 2015-05-15 / 07:45 --------------------------------------------------------------------- - Q1 revenue of EUR 26.0 million and EBITDA of EUR 2.7 million - Q1 profit per share increased to EUR 0.22 due to positive one-time effect - New Business: Turnaround at nacamar - easybell on growth course - Net debt reduced by EUR 1.5 million to EUR 0.0 million Düsseldorf, 15 May 2015 ecotel communication ag, a German telecommunications company with operations throughout Germany and headquarters in Düsseldorf, was able to continue the positive business development of the past years in 2015. With consolidated turnover of EUR 26.0 million (previous year: EUR 26.2 million) especially the earnings performance was boosted. In addition to increasing the gross profit to EUR 6.9 million (previous year: EUR 6.6 million), the company was able, as a result of a positive one-time effect, to increase both EBITDA to EUR 2.7 million (previous year: EUR 1.7 million) and EBIT to EUR 1.5 million (previous year: EUR 0.7 million). This results in consolidated profit for the first quarter 2015 of EUR 0.8 million (previous year: EUR 0.3 million), which corresponds to earnings per share of EUR 0.22 (previous year: EUR 0.07). The focus remains on revenue in the Business Customers segment, in which ecotel bundles transactions with SMEs and key accounts. As a flexible mid-sized enterprise ecotel offers combined voice and data services in this segment. The continuously growing customer base, currently with around 18,000 customers in Business Solutions (B2B), includes companies such as Allianz, CTS EVENTIM and ING-DiBa. A positive development was also observed in the New Business segment. In this segment ecotel combines Private Customer Solutions (B2C) under the »easybell« brand and new media solutions under the »nacamar« brand. With a 15 percent increase in revenue and a share of 25 percent in the total gross profit, this segment is increasing in importance. In the Wholesale Solutions segment, which is targeted at other telecommunications providers and outside distributors, high revenue was attained in the first months of the year, although with regular fluctuations. However, the strategically important segment shows only a relatively low gross margin. Other positive developments were observed in the first quarter 2015 with respect to the liquidity, net debt, equity ratio and free cash flow. With liquidity of EUR 6.3 million as of 31/03/2015 (EUR 5.0 million as of 31/12/2014) ecotel was able to reduce the net debt by EUR 1.5 million to EUR 0.0 million. The equity ratio improved in the reporting period from 47.1 % as of 31/12/2014 to 48.9 % as of 31/03/2015. In the first quarter 2015 the company achieved a free cash flow totalling EUR 1.6 million, which corresponds to the amount of EUR 0.46 per share. "We are very satisfied with the business development in the first quarter 2015. The sustained positive trend continues and we expect this to remain so for the entire year 2015," explains Peter Zils, CEO and founder of ecotel. "Especially important for us is the development of the high-margin core business with B2B solutions for business customers, since this central controlling factor is essential for our profit and growth goals. At the same time we were able to continue the positive development of our fast-growing New Business segment. In addition to good growth rates at easybell we achieved the turnaround at our subsidiary nacamar and can again report positive EBITDA for the first time since 2013." In the future the telecommunications company intends to develop new markets for Cloud, Security and IP-Centrex services. ecotel was already able to essentially implement the technical prerequisites and the relating investments for this in 2014. As a result of the change in technology being pushed by the Deutsche Telekom and the impending migration from ISDN to All-IP access, ecotel will start this summer with the marketing of managed voice and data services on the basis of the new All-IP connections. In combination with operation of the local exchange, All-IP will in turn form the basis for the marketing of such services. With additional well-directed investments in technologies and personnel ecotel is well positioned here and can take advantage of the comfortable liquidity situation to develop these business units, for example. The company confirms the forecast published in the 2014 Annual Report and continues to expect EBITDA of EUR 7.5 - 8.5 million for the current business year 2015, with revenue of EUR 90 - 100 million. The quarterly report is available for download at the company's website www.ecotel.de. About ecotel communication ag: The ecotel Group (hereinafter »ecotel«) is a telecommunications company that has been active throughout Germany since 1998 and 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 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 offerings for 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 representations 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 240 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 more information, please visit us on the web at www.ecotel.de --------------------------------------------------------------------- 2015-05-15 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 357359 2015-05-15