telegate AG: quarterly figures: profit and revenues according to plan
(firmenpresse) - telegate AG / Key word(s): Finance/
telegate AG: quarterly figures: profit and revenues according to plan
DGAP-Media / 03.05.2012 / 08:00
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Quarterly figures telegate AG: profit and revenues according to plan
- Company transformation is progressing well: Media business generates 35
percent of group revenues with improved profit situation
- EBITDA before non-recurring items of EUR 2.7 m in line with the annual
guidance
Planegg-Martinsried, May 03, 2012 - In the first quarter of 2012 telegate
AG is right on track for the current fiscal year. Group earnings (EBITDA)
before non-recurring items of EUR 2.7 m are in line with the profit
guidance for the year 2012. The advertising sales business continues to
show a positive development: with an improved profit situation, the young
business sector generated revenues in the amount of EUR 8.9 m in the
reporting period and thus contributes to the share of revenues in group
revenues of 35 percent (same period of the previous year: 30 percent). In
total, revenues of the telegate group amount to EUR 25.2 m (same period of
the previous year: EUR 28.2 m). The expected decline in revenues is due to
the current company transformation. Overall, the segment Germany/Austria
contributes EUR 23.4 m (93 percent) to group revenues. Spain with EUR 1.7 m
has a share in this development of seven percent.
Revenues of the business sector Media continued to increase by five percent
in the first quarter 2012. Background is the company's strategic focus on
customer satisfaction and retention for the benefit of a long-term margin
improvement. The company - as announced - has initiated several fundamental
process changes and measures to increase customer loyalty in the first
quarter 2012. As a result, churn rates shall be reduced and contract
periods extended and thus a positive contribution margin shall be generated
in the long term. There already have been initial positive results.
The continuing negative demand trend in the classic DA market results in an
overall declining revenues trend of the group. Thus, the proceeds of the
business sector DA solutions amount to EUR 16.3 m in the reporting period
compared to EUR 19.7 m in the same period of the previous year.
Furthermore, the challenging overall economic development had an adverse
effect on the revenues trend in the segment Spain.
Profit situation: company transformation with improved profitability of the
Media business
The continuous growth of the Media business in Germany as well as measures
initiated to improve customer loyalty show initial positive signals: the
EBITDA before non-recurring items of the business sector Media was improved
by EUR 0.7 m to EUR -2.9 m in the reporting period compared to the same
period of the previous year (+ 18 percent). However as expected, this was
not sufficient yet to compensate the declining profit situation of the DA
business with a stronger margin. Therefore, group EBITDA before
non-recurring items in the amount of EUR 2.7 m is below the previous year's
value of EUR 3.7 m - but in line with the profit guidance 2012. As
expected, non-recurring items accrued in the amount of EUR 0.8 m in the
first quarter 2012 for capacity adjustments in particular in the
administration sector (previous year: EUR 0.3 m). On a segment level,
Germany/Austria contributed EUR 2.6 m to earnings (previousyear: EUR 3.6
m) and Spain EUR 0.12 m (previous year: EUR 0.07 m). In this segment there
are positive effects on the cost of revenues due to the closure of the own
Call Center and relocation of the operative sector to an Outsourcer.
Earnings after taxes amounted to EUR 0.2 m in the reporting period compared
to EUR 1.3 m in the previous year. Correspondingly, this results in
earnings per share of EUR 0.01 compared to EUR 0.07 in the previous year.
In spite of slightly declining earnings, the balance sheet quality of the
debt-free company remains very solid. Cash and cash equivalents amount to
EUR 37.6 m in the first quarter 2012 compared to EUR 47.4 m in the same
period of the previous year. The decline is primarily due to the dividend
payment in the amount of EUR 9.6 m in June 2011. In the first quarter,
where usually the lowest liquid assets are generated due to seasonal
effects, telegate recorded a slightly negative net cash flow* in the amount
of EUR -1.5 m. This ratio amounted to EUR -1.4 m in the previous year.
Outlook: operational focus on improvement of customer loyalty
Business development of telegate AG in 2012 will presumably be affected
again by a slight growth of the Media business and a declining trend of the
classic, strong margin DA business. The profit situation of the Media
business shall be improved significantly by the implementation of
additional cost reduction measures, improved sales efficiency and reduction
of the churn rates of existing customers. The company expects that the
initiated measures will result in visible changes of the margin situation
in the course of the year. Based on the financial figures of the first
quarter 2012, telegate AG still proceeds with a profit guidance - based on
EBITDA before non-recurring items - of EUR 10-12 m for the full year 2012.
Furthermore, the company expects to generate a positive net cash flow both
in the annual year 2012 and subsequent years.
Possible income from payments by Deutsche Telekom AG to telegate AG and its
subsidiaries datagate GmbH and telegate MEDIA AG resulting from the data
cost reclamation claims are not considered in this scenario. The Higher
Regional Court Duesseldorf (OLG) sentenced Deutsche Telekom AG in three
part actions to repay a total of approx. EUR 96 m. The former monopolist
has filed an appeal for non-admission of an appeal with the Federal High
Court of Justice. A judicial decision by the BGH (Federal High Court of
Justice) can be expected within the next months.
Business figures of telegate AG, January - March 2012 2011 +/- in
of the corrensponding annual year percent
Group revenues 25.2 28.2 -11
Revenues business sector DA solutions 16.3 19.7 -18
Revenues business sector Media 8.9 8.5 +5
EBITDA before non-recurring items 2.7 3.7 -26
Annual net income after taxes from continuing 0.2 1.3 -87
operations
Net cash flow* -1.5 -1.4 -8
Liquid asset + short-term deposit investments 37.6 47.4 -21
(by March 31)
Number of employees (headcount by March 31) 1,431 1,847 -23
All figures stated in m of EUR
*) Operating cash flow + cash flow from investing activities +/- interest
income/expenses
About telegate AG:
telegate AG has developed in Germany from a telephone DA specialist to an
information and Internet service specialist during the previous years. The
users of telegate media channels can find comprehensive information on
Local search via the brands 11 88 0 and klickTel. telegate provides
information with a total of approx. 300 m Local search requests p. a. for
trades and services of companies as well as individual contact data.
telegate media channels include the Internet portals 11880.com and
klicktel.de with already more than 1.2 m downloads of mobile Smartphone
Apps, Software products for the individual and businessúsers as well as
the telephone DA 11 88 0. According to GfK market research, 11 88 0 is the
most known telephone number in Germany with an unaided brand awareness of
approx. 54 percent. In addition, the users can also find information on
Local search
on the digital information platforms of partners like Vodafone and Nokia.
In order to be easier to find in the digital word, the company offers
Internet services and advertising services for small and medium-sized
enterprises (SMEs). telegate supports businesses to build a website with
permanent maintenance. In addition, telegate helps SMEs to increase their
presence and searchability in the digital media. The Internet service
specialist markets SMEs in search engines as well as via online yellow
pages on own search media with great reach. telegate, as 'Google AdWords
Premium-SME-Partner', develops trade-specific campaigns for the search
engine marketing of companies and implements those campaigns.
Contact:
Susanne Seign
Senior Communication Specialist
telegate AG
Germany
Fraunhofer Str. 12a
82152 Planegg-Martinsried
Phone: +49 (89) 8954-1181
Fax: +49 (89) 8954-1189
E-mail: presse(at)telegate.com
http://www.telegate.com
End of Media Release
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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
Indices: Prime All Share
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP-Media
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