ecotel communication ag: First Half of 2023 Sees Planned Increase in KPIs Compared to Previous Year

• Revenue: €51.6 million (previous year: €44.8 million)
• Gross profit: €16.2 million (previous year: €15.1 million)
• Operating EBITDA: €5.3 million (previous year: €4.6 million), EBITDA: €9.3 million
• Consolidated net income: €6.7 million (previous year: €13.8 million)
• Investments in Growth Sectors “cloud” and “fiber” yield results

Düsseldorf, August 15, 2023
The first half of 2023 proceeded positively as planned for ecotel. The integration of the nacamar segment into Uplink Digital GmbH, along with the dividend payment totaling €66.1 million approved at the Annual General Meeting on April 21, 2023, were successfully executed.

The groundwork for the “cloud” and “fiber” growth strategies was effectively laid, and investments were carried out as scheduled.

Especially noteworthy, expansion of sales activities and the establishment of sales resources were achieved in the first half of 2023. At the end of July 2023, a new digital order line was successfully added as a further distribution channel. These measures will contribute to further growth in the second half of the year. Additionally, during the first half of the year, further rights to internet resources totaling €5.4 million were transferred, including €4 million in unscheduled transfers.

The Group's revenue increased by €6.8 million to €51.6 million. The “ecotel Wholesale” segment contributed €28.9 million (previous year: €22.1 million) to this growth; revenue in the “ecotel Business Customers” segment was as planned at €22.7 million (previous year: €22.7 million) for the first half of 2023. The growth initiatives and gradual implementation of new major contracts acquired since the beginning of the year will lead to increased revenues in the “ecotel Business Customers” segment in the coming quarters. In the “fiber” segment, 250 high-revenue and high-margin leased lines, mainly fiber optic connections, were put into operation during the first half of the year. In the “cloud” segment, the so-called seats doubled, and 2,400 voice channels were activated.

In both segments, the gross margin was further increased, with an overall growth of over 7% (€1.1 million), amounting to €16.2 million (previous year: €15.1 million). Of this, the “ecotel Business Customers” segment generated €15.3 million (previous year: €14.5 million), and the “ecotel Wholesale” segment generated €0.9 million (previous year: €0.6 million). 

Despite the growth investments, which are reflected in increased personnel and other operational expenses, the operating EBITDA for the first half of 2023 increased significantly to €5.3 million (previous year: €4.6 million). Both segments contributed to this growth: “ecotel Business Customers” with €4.8 million (previous year: €4.3 million) and “ecotel Wholesale” with €0.5 million (previous year: €0.3 million). Meanwhile, the unadjusted EBITDA even reached €9.3 million.

Taking into consideration the further reduced depreciation and amortization (€2.5 million; previous year: €2.9 million), the financial result (€0.3 million; previous year: – €0.2 million), taxes (– €2.2 million; previous year: – €3.0 million), and the result from discontinued business segments due to the deconsolidation of the nacamar segment (€1.8 million), the first half of 2023 concluded with a consolidated net income of €6.7 million (previous year: €13.8 million). This corresponds to earnings per share of €1.91 (previous year: €3.94).

Even after the substantial dividend payout this year, ecotel remains debt-free and reports net financial assets of €7.0 million as of June 30, 2023 (previous year: €23.9 million). The equity ratio, after dividend distribution, slightly decreased to 46.1% (previous year: 53.9%).

Management continues to uphold the forecast for the 2023 financial year, as outlined in the Forecast Report included in the 2022 Annual Report.
 

(in mil. euros) *	2022 H1	2023 H1	Forecast for 2023
Consolidated sales	44.8	51.6	95 - 100
of which ecotel Business Customers segment	22.7	22.7	46 - 48
of which ecotel Wholesale segment	22.1	28.9	48 - 52
Gross margin	15.1	16.2	31 - 33
of which ecotel Business Customers segment	14.5	15.3
of which ecotel Wholesale segment	0.6	0.9
Operating EBITDA **	4.6	5.3	9 - 10
of which ecotel Business Customers segment	4.3	4.8	> 8.5
of which ecotel Wholesale segment	0.3	0.5	0.5 - 1.0
Consolidated net income	13.8	6.7	> 4
Earnings per share (in euros)	3.94	1.91

 

(in mil. euros) *	2022 Q2	2023 Q2
Consolidated sales	24.6	23.0
of which ecotel Business Customers segment	11.4	11.3
of which ecotel Wholesale segment	13.2	11.7
Gross margin	7.6	8.0
of which ecotel Business Customers segment	7.4	7.6
of which ecotel Wholesale segment	0.3	0.5
Operating EBITDA **	2.4	2.0
of which ecotel Business Customers segment	2.2	1.7
of which ecotel Wholesale segment	0.2	0.3
Consolidated net income	12.5	2.2
Earnings per share (in euros)	3.57	0.62

* Prior-year figures adjusted due to the deconsolidation of the nacamar segment; there may be differences in the totals due to commercial rounding.
** Definition, see the Consolidated Management Report in the 2022 Annual Report on page 52.

About ecotel communication ag
ecotel communication ag has been operating nationwide since 1998 and has established itself as one of the leading quality providers for business customers. With a focus on “cloud & fiber” in 2022, ecotel serves the two most significant growth areas in the German telecommunications market. The company is headquartered in Düsseldorf. Currently, ecotel serves more than 15,000 customers nationwide through a comprehensive full-service offering of cloud and broadband services, managed by a dedicated team of approximately 225 employees.

Notice:
This publication does not constitute an offer for sale or a solicitation of an offer to buy or subscribe for securities. This publication does not represent a securities prospectus. This publication and the information contained therein are not intended for direct or indirect distribution in or within the United States of America, Canada, Australia or Japan.


Investor Relations
ecotel communication ag
Investor Relations
+49 (0) 211-55 007 740
E-Mail: investorrelations@ecotel.de

For further information, please visit our website at www.ecotel.de