DGAP-News: Quarterly figures telegate AG: Media business grows by 19 percent
(firmenpresse) - telegate AG / Quarter Results/Development of Sales
05.05.2010 08:28
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- Overall, financial figures Q1 in line with the management's
expectations
- Business sector Media already contributes 19 percent to group revenues
- EBITDA before non-recurring items of EUR 5.6 m in line with full year
profit guidance.
Planegg-Martinsried, May 5, 2010 - Financial figures of the telegate group
for the first quarter 2010 were in line with the management's expectations.
In particular, the advertising sales business showed a positive development
- revenues of the business sector Media increased by 19 percent. Group
earnings before depreciation and amortization, interest and taxes (EBITDA)
before non-recurring items amounted to EUR 5.6 m compared to EUR 9.7 m in
the previous year. Quarterly net income after taxes of EUR 1.7 m was
significantly lower than in the previous year. Considering the business
development of the first quarter, telegate's Management Board confirms its
guidance for the full year 2010, which provides EBITDA before non-recurring
items in the amount of EUR 23 m to EUR 27 m.
The business sector Media shows significant rates of growth and
increasingly develops into the driver of telegate AG's transformation of
the business model. The young business sector generated revenues of EUR 6.5
m in the first 3 months of 2010. This corresponds to an increase in
revenues of 19 percent compared to the first quarter of 2009. Thus, already
approx. 19 percent of telegate group's total revenues are attributable to
the Media business. Overall, the group generated total revenues of EUR 34.4
m (previous year: EUR 39.2 m) in the first quarter of 2010. EUR 27.6 m
thereof were attributable to the segment Germany/Austria and EUR 6.8 m to
the segment Italy/Spain. In Germany/Austria almost a quarter of segment
sales are attributable to the Media business.
The decline of the business volume in the classic business sector directory
assistance solutions was within expectations: revenues went down from EUR
33.7 m to EUR 27.8 m. On the one hand, the continuous shift of calls and
search requests to digital channels was a reason for this. On the other
hand, the company benefited significantly from this development with its
online offers and mobile services. In addition, the still challenging
overall economic environment in the segment Italy/Spain had a burdening
effect.
Profit situation: affected by the transformation of the company and
the related shift in margins in the business sectors
Non-recurring expenses in the amount of approx. EUR 0.2 m in connection
with the integration of telegate MEDIA AG were still included in the EBITDA
of the first quarter of 2009. However, there were no non-recurring items in
the current reporting period. Thus on a comparable basis, this results in
an EBITDA before non-recurring items of EUR 5.6 m for the first quarter of
2010 compared to EUR 9.7 m in the previous year. Group's net income after
taxes showed a significant decline from EUR 6.6 m to EUR 1.7 m. Earnings
per share changed accordingly from EUR 0.31 per share to EUR 0.08 per
share.
The expected drop in profits is primarily due to the declining trend in the
highly profitable directory assistance business. This trend was partly
compensated in the first quarter of the fiscal year by the Media business
with a strong growth, however, still with a weaker margin, and a stringent
cost management - e. g. lower advertising and personnel costs as well as
depreciations and amortizations and investments. In addition, there was a
special factor regarding tax expenditure of approx. plus EUR 1 m despite
declining operating profits in comparison with the previous year. The
higher tax burden is attributable to a subsequent utilization of tax losses
carried forward in the previous year.
telegate group, free from financial debt, increased its amount of liquid
assets by EUR 0.5 m to EUR 60.5 m over the 3 months of the reporting
period and thus is still able to finance its investment and growth targets
comfortably by own means. Subject to the approval of the Shareholders'
Meeting on June 09, 2010 and to the specific final implementation, the
company intends to distribute to both main and minority shareholders a part
of the excess liquidity by a share repurchase program. In addition, the
company's Management Board and Supervisory Board will propose to the
Shareholders' Meeting to distribute to the shareholders an unchanged
dividend of EUR 0.70 per share, equivalent to a total amount of EUR 14.9 m.
Outlook: unchanged profit guidance in the amount of EUR 23 m to EUR 27 m
With regard to the full fiscal year 2010, telegate AG's Management Board
still expects profit dynamics which will result in EBITDA before
non-recurring items within a range of EUR 23 m to EUR 27 m at the end of
the fiscal year 2010, considering the decline in the directory assistance
business with a strong margin. In addition to a stringent cost management,
a accelerated growth of the business sector Media compared to the first
quarter, in particular, shall contribute to this.
The establishment and expansion of the business sector Media is still the
strategic focus and it is the company's target is to continue to show
dynamic and clearly double-digit rates of growth in the SME advertising
business. New digital advertising products as well as a further expansion
of field sales and accordingly sales regions in Germany shall be the
strongest drivers of this target. In addition, the company expects positive
growth effects from the reach for SME customers growing continuously - due
to new strategic partnerships agreed with Nokia, Vodafone and freenet in
the first quarter of 2010, among others.
Business figures telegate AG, first quarter 2010* 2009** +/- in %* Figures in EUR m
Group revenues 34.4 39.2 -12.3
Revenues business area DA solutions 27.8 33.7 -17.4
Revenues business area Media 6.5 5.5 +19.0
EBITDA before non-recurring items 5.6 9.7 -42.3
Net income after taxes 1.7 6.6 -74.4
Free cash flow before M&A incl. interest 0.5 2.3 -77.0
Liquid assets (by March 31, 2010) 60.5 54.9 +10.1
Number of employees 2,831 3,091 -8.4
headcount by March 31, 2010)
** Figures in EUR m; group figures refer to continued operations
Note:
telegate AG's interim report for the first quarter of the fiscal year 2010
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
http://twitter.com/telegate
http://www.youtube.com/telegateAG
05.05.2010 08:28 Ad hoc announcement, Financial Newsand Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: telegate AG
Fraunhofer Str. 12a
82152 Planegg-Martinsried
Deutschland
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, Hannover, München, Hamburg, Stuttgart
End of News DGAP News-Service
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