DGAP-News: Nine-months-report telegate AG: in line with the forecasted year end results
(firmenpresse) - telegate AG / Key word(s): Quarter Results/Forecast
09.11.2010 08:15
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- Company confirms achievement of the full-year profit guidance in the
forecasted range of EUR 23 m to EUR 27 m EUR EBITDA before non-recurring
items, though in its lower end
- Business sector Media with 26 percent growth of revenues
- Q3/2010 shows highest operational quarterly profit of the year.
Nine-months group EBITDA before non-recurring items declines.
Due to non-operating items nine-months-net income almost stable compared
to the previous year.
Planegg-Martinsried near Munich, November 09, 2010 - Business figures of
telegate AG for the first nine months 2010 develop in the trend of the
yearly target up to now. The business sector Media furthermore shows a
dynamic growth with a rate of growth of 26 percent. A decline in revenues
of 14 percent must be recorded in the classic DA business due to the
continuous market trend towards digital DA and search. As the business
sector DA solutions with a high margin generates approx. 75 percent of the
business volume and the new business sector Media is still established with
higher expenses, group earnings before depreciation and amortization,
interest and taxes (EBITDA) before non-recurring items of EUR 17.3 m after
nine months are significantly lower compared to EUR 26.4 m in the previous
year, though in line with the current year target. Besides, the nine-months
net income after taxes of the telegate group was almost at the previous
year's level due to non-operating items.
Nine-months revenues of the telegate group amounted to EUR 93.7 m compared
to EUR 101.0 m in the previous year. Here, it should be considered, that
the group's quarterly revenues increased steadily over the course of the
year and thus the decline in revenues could be increasingly limited. The
telegate group generated 91 percent or EUR 85.2 m (previous year: EUR 92.2
m) of group revenues in the core market Germany. Revenues of the segment
Spain in the amount of EUR 8.5 m were almost stable at previous year's
level (EUR 8.8 m), in spite of a very challenging market environment.
The revenues trend shows significant differences at business sector level.
Accordingly, significant investments in the establishment and expansion of
the Media business result in a growth of revenues of 26 percent to EUR 22.4
m compared to EUR 17.7 m in the previous year. However, the positive
proceeds trend in the Media sector was overall offset by the declining
development in the classic DA business - revenues of the business sector DA
solutions declined by approx. 14 percent from EUR 83.3 m to EUR 71.3 m. The
continuous shift of DA and search requests to the digital channels is still
the reason for this development. telegate benefits from the digital
channels in its new business sector Media.
Profit situation: highest quarterly profit of the annual year, total profit
trend still affected by different margins of the business-mix
The company generated EBITDA before non-recurring items in the amount of
EUR 6.2 m in the third quarter and thus the highest operational quarterly
profit of the year. Nine-months-EBITDA before non-recurring items of the
telegate group amount to EUR 17.3 m compared to 26.4 m in the previous
year. All in all, there were no non-recurring items accrued in the annual
year 2010 so far. In the previous year the non-recurring items amounted to
approx. EUR -0.2 m. Sustainable investments in the expansion of the Media
sales force and profit share shifts from the highly profitable DA business
to the Media business with a weaker margin are reasons for the drop in
profits of the telegate group. The company took countermeasures by cost
optimizations and reductions respectively across the structural costs. As a
result, the company saved costs in the amount of approx. EUR 2.5 m compared
to the previous year period and thus partly eased the profit pressure.
Group's nine-months net earnings after taxes of EUR 11.2 m and EUR 0.53 m
per share respectively were only slightly below the previous year's figure
of EUR 12.5 m and EUR 0.59 m per share respectively. This was due to the
different non-operating items concerning the discontinued operations in
Italy and France - negative items during the first nine months 2009 and
positive items during the first nine months 2010.
telegate group's net worth and financial situation is furthermore
excellent. The equity ratio increased from 50.4 percent as of September 30,
2009 to 64.3 percent now. In particular, this trend based on the decrease
of the balance sheet total from EUR 185.6 m to EUR 145.7 m with a slightly
higher equity at the same time. This development is primarily attributable
to the sale of the Italian and French subsidiary. Liquid assets of the
telegate group free from debt amounted to EUR 57.9 m by the end of the
reporting period and thus nearly reached again the previous year's level
(EUR 60.1 m), also after the dividend payment in the amount of EUR 14.9 m.
The company intends to distribute a part of the surplus liquidity to both
main and minority shareholders shortly by means of a share repurchase
program.
Outlook: focus on efficiency in the DA and Media business as well as cost
reductions
The management board expects the main business trend - decline in the DA
business with a high margin as well as dynamic growth in the Media business
with a lower margin - having an unchanged influence on the company's
business development and trend of profits. Against this background, the
company nevertheless expects to fulfil its profit guidance delivered in the
spring of this year. The guidance stated EBITDA before non-recurring items
of EUR 23 m to EUR 27 m. telegate expects to be in the lower end of the
guidance range - even lacking the contribution to earnings of the Italian
business, which was sold in the meantime.
telegate AG is progressing in the company's transformation process. Thus,
it will focus more on the topics 'sales efficiency' and 'customer
management and retention'. The company will continue to concentrate on
operating the DA business economically. Therefore, the company will adjust
its capacities according to the market development and plans in this
context to merge the German Call Center Wismar with the locations Rostock
and Guestrow. In addition, a program for the optimization of business
processes is already being implemented currently.
Business figures telegate AG,Note:
Januar-September of the
corresponding fiscal year 2010 2009 +/- in %
Group revenues 93.7 101.0 - 7.2
Revenues business sector DA solutions 71.3 83.3 -14.4
Revenues business sector Media 22.4 17.7 +26.4
EBITDA before possible non-recurring items 17.3 26.4 -34.5
Net income after taxes
(including discontinued operations) 11.2 12.5 -10.4
Free cash flow before M&A 7.7 21.4 -64.0
Liquid assets (as of September 30) 57.9 60.1 -3.7
Number of employees
(headcount as of September 30) 2,019 2,902 -30.4
All figures stated in EUR m; group figures refer to continued operations
telegate AG's interim report for the first nine months 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
09.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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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 Hamburg, München, Berlin, Düsseldorf, Hannover, Stuttgart
End of Announcement DGAP News-Service
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Datum: 09.11.2010 - 08:15 Uhr
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