ECOTEL COMMUNICATION AG (FRA:E4C) ecotel communication ag: Q1 2020: Renewed increase in gross profit and EBITDA

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07/05/2020 08:00

DGAP-News: ecotel communication ag / Key word(s): Quarterly / Interim Statement
ecotel communication ag: Q1 2020: Renewed increase in gross profit and EBITDA

07.05.2020 / 08:00
The issuer is solely responsible for the content of this announcement.

  • Gross profit increases by 5% to € 8.6 million
  • EBITDA increases by 4% to € 2.5 million
  • Forecast for 2020 confirmed despite Covid-19 pandemic
  • Free cash flow and net assets temporarily decline

Düsseldorf, 07 May 2020

ecotel Group: Growth of gross profit and EBITDA
In the first quarter 2020 the Group achieved total revenue of € 19.7 million (previous year: € 19.6 million), an increase in gross profit to € 8.6 million (previous year: € 8.2 million), and an increase in EBITDA to € 2.5 million (previous year: € 2.4 million).

The Covid-19 pandemic has been a serious issue also for ecotel thus far in 2020. The top priority in our daily activities is the safety of our employees, in addition to maintaining all services for our customers. As a telecommunications company ecotel plays an important role in maintaining the operations of our customers. We provide extensive services for hospitals, nursing homes and doctors, pharmaceutical wholesalers and chemist's chains, banks and insurance companies, as well as numerous other businesses. We work on a daily basis to ensure that the numerous employees who are currently working from home offices have sufficient and reliable bandwidth, in addition to a secure connection to the company headquarters, to allow them to contribute to the economic performance of the entire country.

ecotel Business Customers: Start as planned with revenue of € 11.5 million
In the first quarter 2020 the ecotel Business Customers segment achieved revenue of € 11.5 million. Compared with the first quarter 2019 that represents a decline of € 0.4 million. Migration of the Telekom-based ISDN services was successfully concluded as of 31 March 2020. Meanwhile more than 80 % of voice minutes are produced via the ecotel platform. The higher value added of the new All-IP product range made it possible to keep gross profit, totalling € 5.8 million, nearly at the previous year's level (€ 5.9 million). The gross profit margin increased by 1 % to 50.7 %.

easybell: Increase in revenue and gross profit
The easybell segment was able to continue the successful development of past periods at the start of 2020 and achieved an increase in revenue of 16% to € 5.0 million (previous year: € 4.3 million). At the same time, easybell increased gross profit by 20% to € 2.3 million (previous year: € 1.9 million).

Altogether, the group was able to increase EBITDA by € 0.1 million to € 2.5 million. This development was influenced both by higher margins and cost optimisations.

Consolidated profit and EPS
Depreciations totalled € 1.5 million (previous year: € 1.4 million). As a result, EBIT remained unchanged at € 0.6 million compared with the first quarter 2019. Due to the temporary impact on revenue, the at equity result decreased from the previous year's figure of € 0.1 million to € 0.0 million in the first quarter 2020. After deducting interest, taxes and the shares of other shareholders, ecotel achieved consolidated profit of € 0.1 million (previous year: € 0.1 million) in the first quarter 2020. This corresponds to earnings per share of € 0.02 (previous year: € 0.03 / share).

Free cash flow decreased temporarily in the first three months of the year 2020 to € -1.2 million (previous year: € 0.2 million) and net assets decreased in the first quarter by € 0.7 million to € -0.5 million. However, the repayment of loans and leasing liabilities by the Group totalling € 0.6 million in the first quarter 2020 must be taken into account in this regard.

So far the Covid-19 pandemic has had no significant influence on business developments at ecotel. It has therefore not been necessary thus far to apply for government aid. Planning for the medium- and long-term effects of the pandemic is not possible at present. But we believe the company is well prepared and well situated to cope with the developments of the year 2020.

In consideration of all currently known opportunities and risks the Management Board reconfirms the forecast for 2020 and expects revenue in a corridor of € 46 to 49 million in the core segment ecotel Business Customers, with a slight increase in the gross profit margin. Revenue of € 20 million to € 21 million is anticipated for the easybell segment, and revenue of € 1.5 to € 2.5 million is anticipated for the nacamar segment.

EBITDA is expected to be within a corridor of € 85 to 10.5 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«). Including its subsidiaries and holdings, the group has a total of about 300 employees. Currently the ecotel Group provides more than 50,000 customers nationwide with about 50,000 data connections and more than 100,000 voice channels.

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 (Assistent to the Managing Director)    
Phone: 0211-55 007-740                    
Fax: 0211-55 007 5 740                    
E-mail: presse@ecotel.de                    

Trade Media
Bernadette Loosen-Flanz (PR)
Tel.: 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

07.05.2020 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.

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Language: English
Company: ecotel communication ag
Prinzenallee 11
40549 Düsseldorf
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, Tradegate Exchange
EQS News ID: 1037543

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1037543  07.05.2020