DGAP-News: ecotel communication ag / Key word(s): Half Year Results 2015-08-14 / 07:45 --------------------------------------------------------------------- - Revenue growth in the high-margin segments (B2B/New Business) - Free cashflow increased to EUR 1.2 million in Q2 and EUR 2.8 million in 1st half year - Net financial assets increased by EUR 2.3 million in 1st half year - Equity ratio grew to 50.8 % Düsseldorf, 14 August 2015 ecotel communication ag, a German telecommunications company with operations throughout the country and headquarters in Düsseldorf, was able to continue the positive developments at the start of financial year 2015 in the second quarter, as well. Revenue growth was achieved in the high-margin segments. In the Business Solutions segment (B2B) revenue increased to EUR 10.5 million (previous year: EUR 10.2 million). The New Business segment - which comprises Private Customer Solutions (B2C) and new media solutions - likewise continued the growth trend with an increase in revenue to EUR 4.4 million (previous year: EUR 4.0 million). In the low-margin segment of Wholesale Solutions, which is difficult to plan, revenue decreased by EUR 1.0 million to EUR 8.8 million. Consolidated turnover therefore decreased slightly in the second quarter 2015 by EUR 0.3 million to EUR 23.7 million. In the 1st half year 2015, consolidated revenue totalled EUR 49.7 million (previous year: EUR 50.2 million). The group's cash flow from investment activities in the second quarter 2015 increased to EUR 6.8 million (previous year: EUR 6.2 million). Especially in the Business Solutions (B2B) and New Business segments, increases by EUR 0.3 million and EUR 0.4 million were achieved respectively in comparison with the second quarter 2014. In the half year comparison the consolidated gross profit increased by EUR 1.0 million to EUR 13.8 million. EBITDA increased in the half year comparison by EUR 0.9 million to EUR 4.5 million. EBITDA in the second quarter of the previous year had been boosted primarily by one-time revenue. Nevertheless, EBITDA in the second quarter 2015 totalled EUR 1.8 million, which is only EUR 0.1 million below the previous year's level. In addition to the positive development with respect to the operational figures, the development of the balance sheet figures was also excellent. The equity ratio increased to 50.8 % (previous year: 45.0 %). Cash and cash equivalents increased to EUR 6.7 million (previous year: 4.7 million). The net debt totalling EUR 1.5 million at the end of the year 2014 was transformed into net financial assets of EUR 0.8 million (previous year: -2.3 million) by the end of the second quarter 2015. The free cash flow also increased substantially: in the second quarter 2015 to EUR 1.2 million (previous year: EUR 0.2 million) and in the 1st half year to EUR 2.8 million (previous year: EUR 0.1 million). "The recent business development shows that ecotel remains on a positive path. Our assumptions and the expected challenges for the year 2015 would appear to be confirmed," explains Peter Zils, CEO and founder of ecotel. "We are making good progress in our core business - the Business Solutions segment (B2B). That we are well positioned in this respect is confirmed by the current orders received and also by the VPN key contract from CURANUM Holding GmbH, Germany's biggest service company for senior residences and care centres. Currently we are implementing the Germany-wide networking of more than 130 corporate locations in the form of an IP-MPLS-based virtual private network (VPN)." In the future the telecommunications company intends to develop new markets for Cloud, Security and IP-Centrex services. ecotel was already able to complete the technical prerequisites and the related 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 autumn with the marketing of managed voice and data services on the basis of the new All-IP connections. In combination with the entry into the local exchange operations, the latter 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 --------------------------------------------------------------------- 2015-08-14 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 --------------------------------------------------------------------- 386745 2015-08-14