DGAP-News: Nine-months report telegate AG: Transformation of the business model continues
(firmenpresse) - DGAP-News: telegate AG / Key word(s): Quarter Results/Interim Report
Nine-months report telegate AG: Transformation of the business model
continues
08.11.2011 / 08:15
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- Business sector Media with an increase in revenues of approx. 22
percent compared to the previous year and slightly improved
contribution margins
- As expected, EBITDA before non-recurring items in the amount of EUR
11.2 m below the previous year's level, however, within the scope of
the profit guidance for the full year 2011.
Planegg-Martinsried near Munich, November 08, 2011 - The first nine months
of the annual year of telegate AG showed a trend within the expectations of
the corporate management. Focus of the business activities was still the
target to achieve measurable progress regarding the transformation of the
business model from a pure DA provider to a Local search and marketing
specialist for SMEs. In this respect, it is particularly pleasing that the
business sector Media continues to grow and thus revenues increased by
approx. 22 percent from EUR 21.5 m to EUR 26.1 m compared to the previous
year's period. Revenues dynamics weakened slightly compared to the
beginning of the year. The Media sector contributes 31 percent to group
revenues now. This share amounted to 23 percent after nine months of the
annual year 2010.
Revenues of the larger business sector DA solutions were declining, as
expected, by approx. 19 percent from EUR 71.3 m to EUR 57.5 in spite of
slightly increased revenues per caller and thus total group revenues
decreased by approx. 10 percent from EUR 92.8 m to EUR 83.6 m in the first
months 2011 compared to the previous year. Here, the segment
Germany/Austria was the main pillar of revenues with EUR 76.8 m and approx.
92 percent respectively of group revenues. The segment Spain contributed to
group revenues with EUR 6.9 m and approx. 8 percent respectively.
Earnings situation: losses are limited by the business sector Media
Profit trend at group level is still affected by a significant decline in
income in the highly-profitable DA business. It could not be compensated
yet during the first nine months of the annual year by an improved
contribution margin of the Media business with a development of EUR -13.4 m
in the previous year to EUR -11.2 m now. Thus, telegate generated group
earnings before interest, taxes, depreciation and amortization (EBITDA)
before non-recurring items in the total amount of EUR 11.2 m in the first 9
months of the annual year 2011. In fact, these earnings were within the
communicated profit guidance of EUR 13 m to EUR 18 m for the full year.
However, this result is be significantly below the earnings of EUR 16.8 m
of the previous year's period. Here, both segments made positive
contributions to earnings again: Germany/Austria with EUR 10.6 m and Spain
with EUR 0.6 m.
Non-recurring items amounted to approx. EUR 2.1 in the reporting period, in
the previous year there were none non-recurring items. Non-recurring items
of 2011 were primarily due to capacity adjustments of the DA business in
Germany and Spain. Thus, the own Call Center was closed in Spain and
handling of DA requests was fully outsourced to an external service
provider. This step will reduce the cost base significantly and makes it
more flexible as of October 2011. A decline in earnings after taxes from
EUR 10.9 m to EUR 3.1 m is particularly attributable to reduced operating
earnings. Lower amortization and depreciation and lower taxes compensated
the declining trend to a small extent in the reporting period. Furthermore,
it should be taken into consideration that a profit contribution in the
amount of EUR 2.4 m was still included in the previous year's period from
discontinued operations (sale of Italian subsidiary).
Balance sheet quality and availability of liquid funds remains solid
Net worth and financial position of telegate AG is still free from debt and
remains very solid. The company's equity ratio amounts to 52.1 percent as
of the balance sheet date. The decline compared to the same period of the
previous year (59.1 percent) is primarily attributable to a share
repurchase program performed by the end of 2010 and a dividend payment made
in June 2011. These factors also constitute the decline in liquid assets
from EUR 57.9 m in the previous year to EUR 41.8 m now. telegate AG
generated liquid assets in the amount of EUR 4.4 m in the third quarter of
the annual year. Excluding the dividend payment this amount was EUR 2.6 m
on a nine-months-basis.
Outlook: profit guidance 2011 is confirmed, focus is still on acquiring new
customers and measures regarding customer loyalty in the Media sector
Profitability trend is still affected by the transformation of the
company's business model. As a consequence, a positive revenues performance
and slightly improved contribution margins in the Media sector can still
not compensate a decline in the classic DA business with a strong margin.
However, the corporate management confirms the profit guidance of 2011 it
has set itself after the previous business trend. The management board
announced a profit guidance for the full year - based on EBITDA before
non-recurring items - of EUR 13 m to EUR 18 m in the spring of 2011
compared to approx. EUR 23,2 m in the annual year 2010.
The Media sector remains the focus of activities during the remaining
fiscal year. Here, the company continues to work intensely on optimizing
sales efficiency across all sales channels and to further improve the
contribution margins. In addition, the product portfolio is further aligned
to the requirements of the advertisers and the product area ''company
website'' will have an even greater focus of the sales strategy.
Furthermore, customer loyalty shall be improved gradually and the churn
rate reduced with information which makes the success of their advertising
investment transparent for the B2B customers. Thus, the company's
profitability shall be further noticeably improved by these efficiency
measures in the MEDIA sector together with a reduction of structural costs.
Business figures telegate AG, 2011 2010 +/-Note:
January-September in %
Group revenues 83.6 92.8 - 9.9
Revenues business sector DA solutions 57.5 71.3 -19.4
Revenues business sector Media 26.1 21.5 +21.5
EBITDA before non-recurring items 11.2 16.8 -33.3
Net income after taxes from
continuing operations 3.1 10.9 -71.6
Free cash flow before M&A 1.5 7.7 -80.5
Liquid assets (as of September 30) 41.8 57.9 -27.8
Number of employees
(headcount as of September 30) 1,779 2,019 -11.9
All figures stated in m of EUR; group figures refer to continuing
operations
telegate AG's interim report for the first 9 months of the annual year 2011
is available for download at http://www.telegate.com>Investor Relations.
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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145094 08.11.2011
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