ecotel makes strong start to 2024 financial year

EQS-News: ecotel communication ag / Key word(s): Quarterly / Interim
Statement/Quarter Results
ecotel makes strong start to 2024 financial year

08.05.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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* B2B segment records slight growth

* Total sales: EUR 28.1 million (previous year: EUR 28.6 million)

* Gross profit: EUR 8.1 million (previous year: EUR 8.1 million)

* Operating EBITDA: EUR 1.8 million (previous year: EUR 3.4 million)

* Roll-out of major new projects begins


Düsseldorf, 8 May 2024

The first quarter of 2024 went to plan. Sales in the ecotel Business
Customers segment increased slightly to EUR 11.5 million (previous year: EUR
11.4 million). The major new orders that were concluded recently are being
implemented as planned and are expected to lead to stronger sales growth in
the ecotel Business Customers segment from the second quarter onwards. As
expected, gross profit in this segment declined slightly to EUR 7.6 million
in the first quarter of 2024 (previous year: EUR 7.7 million) due to the
positive non-recurring effects of EUR 0.3 million in the same period of
2023. Adjusted for these effects, gross profit in the ecotel Business
Customers segment increased by EUR 0.2 million.

Sales in the ecotel Wholesale segment declined year-on-year to EUR 16.6
million as forecast (previous year: EUR 17.2 million). Despite the lower
level of sales, gross profit rose by EUR 0.1 million to EUR 0.5 million
(previous year: EUR 0.4 million). This was due to the increased share of
high-margin wholesale data services in the overall sales mix.

Operating EBITDA amounted to EUR 1.8 million in the first quarter (previous
year: EUR 3.4 million) due to the forecast impact of initial investments for
the implementation of major new projects. In addition to these initial
investments, it should be noted that operating EBITDA in the same period of
the previous year included income from the transfer of right-of-use assets
for internet resources in the amount of EUR 1.4 million and the
aforementioned gross profit effect of EUR 0.3 million. Adjusted for these
effects, operating EBITDA increased slightly (EUR 1.8 million; previous
year, adjusted: EUR 1.7 million). In light of the anticipated sales growth,
we expect operating EBITDA to continue to increase as the year continues.

The operating result (EBIT) amounted to EUR 0.4 million in the first
quarter. This represents a significant year-on-year decrease of EUR 5.6
million. After deducting all associated transaction costs, the sale of
right-of-use assets for online resources in the first quarter of the
previous year contributed around EUR 5.4 million to EBIT. Adjusted for these
non-recurring effects, EBIT in the first quarter of 2024 was in line with
the previous year.

After deducting depreciation and amortisation, which declined slightly as
forecast to EUR 1.1 million (previous year: EUR 1.3 million), and taking
account of net finance costs of EUR 0.0 million (previous year: EUR 0.4
million) and taxes of EUR 0.1 million (previous year: EUR -2.0 million),
ecotel generated a net profit of EUR 0.3 million in the first quarter
(previous year: EUR 4.5 million). This corresponds to earnings per share of
EUR 0.08 (previous year: EUR 1.29).

As the year continues, the recently communicated strategic change and
expansion of the Management Board will provide further support for the
company's growth path with its focus on cloud communication and smart
broadband solutions for corporate customers (cloud & fibre).

The Management Board is maintaining its forecast for the 2024 financial
year.
Specifically, the Management Board anticipates the following developments in
2024:

     (EUR million)                        Forecast for 2024
     Consolidated sales                   108 - 112
     thereof ecotel Business Customers    48 - 52
     thereof ecotel Wholesale             50 - 60
     Gross profit                         33 - 35
     thereof ecotel Business Customers    31 - 33
     thereof ecotel Wholesale             2 - 3
     Operating EBITDA                     9 - 10
     thereof ecotel Business Customers    8 - 9
     thereof ecotel Wholesale             - 1
     Consolidated net profit              > 2

About ecotel communication ag:

The ecotel Group (referred to hereinafter as 'ecotel') has been operating
throughout Germany since 1998 and is established as a leading quality
provider for business customers. With a focus on cloud & fibre, ecotel
serves the two most important growth areas in the German telecommunications
market.
Its parent company is ecotel communication ag, headquartered in Düsseldorf.
ecotel and its subsidiary have around 225 employees in total. At present,
ecotel provides more than 15,000 customers throughout Germany with a full
range of cloud and broadband services.

Note:
This publication is not an offer to sell nor an invitation to submit an
offer to buy or subscribe for securities. This publication is not a
securities prospectus. This publication and the information contained within
are not intended for direct or indirect distribution to or within the United
States of America, Canada, Australia or Japan.


Investor Relations

ecotel communication ag
Investor Relations
+49 (0) 211-55 007 740
E-mail: investorrelations@ecotel.de

For more information, go to www.ecotel.de


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08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        ecotel communication ag
                   Prinzenallee 11
                   40549 Düsseldorf
                   Germany
   Phone:          +49 (0)211 55 00 70
   Fax:            +49 (0)211 55 00 7 222
   E-mail:         info@ecotel.de
   Internet:       http://www.ecotel.de
   ISIN:           DE0005854343
   WKN:            585434
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1897845

End of News EQS News Service
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1897845 08.05.2024 CET/CEST