DGAP-News: Half-year figures telegate AG: progress with the company transformation - profit guidance according to plan
(firmenpresse) - DGAP-News: telegate AG / Key word(s): Half Year Results/Interim Report
Half-year figures telegate AG: progress with the company
transformation - profit guidance according to plan
11.08.2011 / 08:15
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- Revenues of the business sector Media increased by 23 percent compared to
the previous year
- EBITDA before non-recurring items in the amount of EUR 7.2 m within the
range of the profit guidance for the full year 2011 and, as expected,
significantly below the previous year's level.
Planegg-Martinsried near Munich, August 11, 2011 - Business figures of
telegate AG for the first half-year 2011 met the management's expectations.
The objective to press ahead with the digital transformation of the
business model from a pure telephone DA provider to a Local Search and
marketing specialist for SMEs was still in the focus of the company's
strategy. Here, telegate AG showed progress: revenues of the business
sector Media increased by 23 percent from EUR 14.0 m to EUR 17.2 m compared
to the same period of the previous year. Thus, this business sector already
contributes to 31 percent of group revenues. This share only amounted to 23
percent in the same period of the previous year.
It should be noted that the company changed the revenue recognition of the
business sector Media as of June 30, 2011. Revenues were previously
realized in accordance with IAS 18.21 in connection with IAS 18.14 (c)
according to the stage of completion determined on a cost base. IAS 18.24
(b) is applied starting with these financial statements, whereas the stage
of completion by reference of performance is determined for revenue
recognition. This results in marginally lower revenues in both the
reporting and the previous year's period.
Group revenues in the amount of EUR 55.9 m in the first half-year 2011 were
approx. 9 percent below the previous year's figure of EUR 61.3 m. Revenues
of the segment Germany/Austria in the amount of EUR 51.2 m (approx. 92
percent of group revenues) and of the segment Spain in the amount of EUR
4.7 m (approx. 8 percent of group revenues) contributed to this revenue
trend. The decline in group revenues was within the trend of previous
periods and still caused by a decrease of revenues in the classic telephone
DA business. Thus, revenues of the business sector DA solutions amounted to
EUR 34.0 m in the first half-year 2011 compared to EUR 41.7 m in the same
period of the previous year.
Earnings situation: increase in efficiency in the business sector Media
Group earnings before interest, taxes, depreciation and amortization
(EBITDA) before non-recurring items in the amount of EUR 7.2 m were
significantly below the previous year's level of EUR 11.0 m. However,
earnings are according to plan with regard to the year-end projection.
Earnings trend at group level is still affected by a significant decline in
earnings of the highly profitable DA business. This decline could not yet
be compensated by the Media business in the first half of the fiscal year
by an improvement of the contribution margin and reduction of the
contribution to losses respectively.
Non-recurring items in the amount of EUR 1.1 m in the first half-year 2011
primarily related to capacity adjustments in Germany and Spain. Earnings
after taxes decreased significantly from EUR 7.9 m to EUR 2.2 m due todeclining operating earnings, in particular. In addition, the previous year
period did include an income from discontinued operations (sale of Italian
subsidiary) in an amount of EUR 2.4 m.
Net liquidity and financial position: still a solid balance sheet quality
and availability of liquid funds
The telegate group (free from debt) can still show a very solid balance
sheet quality and availability of liquid funds after the first six months
of the fiscal year 2011. The company's equity ratio amounts to 51.7 percent
as of June 30, 2011. The decline compared to the same period of the
previous year (59.1 percent) particularly results from a share repurchase
program performed at the end of 2010 and a dividend payment made in June.
Liquid assets including short-term investments amounted to EUR 37.4 m as of
June 30, 2011 and thus decreased compared to the previous year (EUR 49.2
m). This is primarily based on the share repurchase program with a volume
of EUR 14.9 m.
The company expects positive effects on the net liquidity position from the
current decisions on the data cost reclamation claims actions against
Deutsche Telekom AG by mid-2012 at the latest: subject to the decisions
becoming res judicata - and taking an advance payment made by Deutsche
Telekom AG and tax expenditure into account - telegate expects another
inflow of liquidity in the amount of approx. EUR 50 m net from reclamation
claims.
Outlook: focus on sales efficiency, customer retention and profitability in
the Media sector
As expected, the trend of the first six months of the fiscal year showed
that an improvement of earnings of the Media sector cannot compensate a
decline in the classic DA business yet. Accordingly, the company's
management communicated a full year profit guidance of an EBITDA before
non-recurring items of EUR 13 m to EUR 18 m in spring 2011 compared to
approx. EUR 23 m in the fiscal year 2010. The company expects to achieve
this target after the results of the first half of the fiscal year.
Measures and activities in the business sector Media are still a focus
during the remaining months of the fiscal year. Here, a main focus is still
on the expansion of a sustainable existing customer management, enlargement
of product range and improvement of sales efficiency. Thus, profitability
shall be improved at group level together with a reduction of structural
costs. The company expects a stabilization of earnings in 2012 for the
first time after four declining fiscal years due to the success of these
measures.
Business figures telegate AG, 1st half-year 2011 2010 +/- in %Note:
Group revenues 55.9 61.3 -8.9 %
Revenues business sector DA solutions 38.7 47.3 -18.4 %
Revenues business sector Media 17.2 14.0 +23.1 %
EBITDA before non-recurring items 7.2 11.0 -34.5 %
Annual net income after taxes of continuing
continuing operations 2.2 5.5 -59.6 %
Free cash flow before M&A and
short-term fixed deposit investments -2.6 -0.6 -312.0 %
Liquid assets + short-term fixed deposit
fixed deposit investments (as of June 30) 37.4 49.2 -24.0 %
Number of employees (headcount as of June 30) 1,837 1,980 -7.2 %
All figures stated in EUR m; group figures concern continuing operations.
The interim report of telegate AG on the first half-year of the fiscal year
2011 is available for download at: http://www.telegate.com>Investor
Relations. Furthermore, a five-minute video interview with Ralf
Gruesshaber, CFO of telegate AG, is also available.
Contact:
Jörg Kiveris
telegate AG
Head of Public Relations Department
Fraunhofer Str. 12a
82152 Planegg-Martinsried
Tel.: 089/ 8954-1188
Fax: 089/ 8954-1189
E-Mail: presse(at)telegate.com
End of Corporate News
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Language: English
Company: telegate AG
Fraunhofer Str. 12a
82152 Planegg-Martinsried
Germany
Phone: +49 089 - 89 54 0
Fax: +49 089 - 89 54 10 10
E-mail: info(at)telegate.de
Internet: www.telegate.com
ISIN: DE0005118806
WKN: 511880
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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135148 11.08.2011
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year-figures-telegate-ag-progress-with-the-company-transformation
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Datum: 11.08.2011 - 08:15 Uhr
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